Nuveen Managed Accounts Portfolios Trust
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Mutual
Funds
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30
November
2021
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Fund
Name |
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Municipal
Total Return Managed Accounts Portfolio |
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NMTRX |
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The
Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any
representation to the contrary is a criminal offense. |
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As
permitted by regulations adopted by the Securities and Exchange
Commission, paper copies of the Portfolio’s annual and semi-annual
shareholder reports will not be sent to you by mail unless you
specifically request paper copies of the reports. Instead, the reports
will be made available on the Portfolio’s website (www.nuveen.com), and
you will be notified by mail each time a report is posted and provided
with a website link to access the report.
You
may elect to receive shareholder reports and other communications from the
Portfolio electronically at any time by contacting the financial
intermediary (such as a broker-dealer or bank) through which you hold your
Portfolio shares or, if you are a direct investor, by enrolling at
www.nuveen.com/e-reports.
You
may elect to receive all future shareholder reports in paper free of
charge at any time by contacting your financial intermediary or, if you
are a direct investor, by calling 800-257-8787 and selecting option #1.
Your election to receive reports in paper will apply to all funds held in
your account with your financial intermediary or, if you are a direct
investor, to all your directly held Nuveen Funds and any other directly
held funds within the same group of related investment
companies. |
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Prospectus |
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Table
of Contents |
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Section
1 Portfolio
Summary
Section
2 How
We Manage Your Money
Section
3 General
Information
Section
4 Financial
Highlights
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NOT
FDIC OR GOVERNMENT INSURED MAY
LOSE VALUE NO
BANK GUARANTEE |
Section
1
Portfolio Summary
Municipal
Total Return Managed Accounts
Portfolio
Investment
Objectives
The
primary investment objective of the Portfolio is to seek attractive total
return. The Portfolio also seeks to provide high current income exempt from
regular federal income taxes.
Fees
and Expenses of the Portfolio
The
following tables describe the fees and expenses that you may pay if you buy and
hold shares of the Portfolio. Portfolio shares may be purchased only by or on
behalf of separately managed account clients where Nuveen Asset Management, LLC
has an agreement to serve as investment adviser or sub-adviser to the account
with the separately managed account program sponsor or directly with the client.
The fees and expenses in the following tables do not reflect any charges that
are imposed by the separately managed accounts. If such charges were reflected,
the fees and expenses would be higher than what is shown
below.
Shareholder
Fees
(fees
paid directly from your investment)
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Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
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None |
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Maximum
Deferred Sales Charge (Load) (as a percentage of net asset value) |
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None |
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Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
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None |
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Exchange
Fee |
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None |
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Annual
Portfolio Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Management
Fees1 |
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0.00 |
% |
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Interest
and Related Expenses2 |
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0.05 |
% |
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Other
Expenses |
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0.05 |
% |
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Total
Annual Portfolio Operating Expenses |
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0.10 |
% |
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Fee
Waivers and/or Expense Reimbursements3 |
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(0.05 |
)% |
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Total
Annual Portfolio Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
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0.05 |
% |
1 The Portfolio itself pays no management fees.
You will, however, continue to incur the management fee for the amount invested
in the Portfolio through the separately managed account associated with such
investment.
2 Includes interest expense and fees paid on
Portfolio borrowings and/or interest and related expenses from inverse
floaters.
3 The investment adviser has agreed irrevocably
during the existence of the Portfolio to waive all fees and pay or reimburse all
expenses of the Portfolio, except for interest expense, taxes, fees incurred in
acquiring and disposing of portfolio securities and extraordinary
expenses.
Example
The
following example is intended to help you compare the cost of investing in the
Portfolio with the cost of investing in other mutual funds. The example assumes
that you invest $10,000 in the Portfolio for the time periods indicated and then
either redeem or do not redeem your shares at the end of a period. The example
also assumes that your investment has a 5% return each year, that the
Portfolio’s operating expenses remain the same and that the expense
reimbursements continue to remain in place. The example does not reflect any
charges that are imposed by the separately managed accounts. If such charges
were reflected, the costs would be higher. Although your actual costs may be
higher or lower, based on these assumptions your costs would
be:
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1
Year |
$ |
51,2 |
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3
Years |
$ |
161,2 |
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5
Years |
$ |
281,2 |
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10
Years |
$ |
641,2 |
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1 The
Portfolio itself pays no management fees. You will, however, continue to incur
the management fee for the amount invested in the Portfolio through the
separately managed account associated with such investment.
2 The
investment adviser has agreed irrevocably during the existence of the Portfolio
to waive all fees and pay or reimburse all expenses of the Portfolio, except for
interest expense, taxes, fees incurred in acquiring and disposing of portfolio
securities and extraordinary expenses.
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2 |
Section
1
Portfolio Summary |
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when shares are
held in a taxable account. These costs, which are not reflected in annual
portfolio operating expenses or in the example, affect the Portfolio’s
performance. During the most recent fiscal year, the Portfolio’s portfolio
turnover rate was 7% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 80% of the sum of its
net assets and the amount of any borrowings for investment purposes in municipal
bonds that pay interest that is exempt from regular federal personal income tax.
These municipal bonds include obligations issued by U.S. states and their
subdivisions, authorities, instrumentalities and corporations, as well as
obligations issued by U.S. territories (such as Puerto Rico, the U.S. Virgin
Islands and Guam) that pay interest that is exempt from regular federal personal
income tax. The Portfolio may invest without limit in securities that generate
income subject to the alternative minimum tax, therefore, the Portfolio may not
be suitable for investors subject to the federal alternative minimum
tax.
The
Portfolio invests in various types of municipal securities, including investment
grade (rated BBB/Baa or better), below investment grade (rated BB/Ba or lower),
and unrated municipal securities. The Portfolio may invest up to 50% of its net
assets in below investment grade municipal bonds, but will normally invest
10-30% of its net assets in such bonds. Such securities are commonly referred to
as “high yield” securities or “junk” bonds. The Portfolio may invest up to 5% of
its net assets in defaulted bonds.
The
Portfolio will focus on securities with intermediate to longer term maturities
and, as such, will generally maintain, under normal market conditions, an
investment portfolio with an overall weighted average maturity of approximately
12 to 25 years.
The
Portfolio may invest in all types of municipal bonds, including general
obligation bonds, revenue bonds and participation interests in municipal leases.
The Portfolio may invest in zero coupon bonds, which are issued at substantial
discounts from their value at maturity and pay no cash income to their holders
until they mature.
The
Portfolio may invest up to 50% of its net assets in municipal securities whose
interest payments vary inversely with changes in short-term tax-exempt interest
rates (“inverse
floaters”).
Inverse floaters are derivative securities that provide leveraged exposure to
underlying municipal bonds. The Portfolio’s investments in inverse floaters are
designed to increase the Portfolio’s income and returns through this leveraged
exposure. These investments are speculative, however, and also create the
possibility that income and returns will be diminished. The Portfolio will only
invest in inverse floating rate securities whose underlying bonds are rated A or
higher.
The
Portfolio may also make forward commitments in which the Portfolio agrees to buy
a security for settlement in the future at a price agreed upon
today.
The
Portfolio’s sub-adviser uses a value-oriented strategy and looks for
higher-yielding and undervalued municipal bonds that offer the potential for
above-average total return. The sub-adviser may choose to sell municipal bonds
with deteriorating credit or limited upside potential compared to other
available bonds.
Developed
exclusively for use within Nuveen-sponsored separately managed accounts, the
Portfolio is a specialized municipal bond portfolio to be used in combination
with selected individual securities to effectively model institutional-level
investment strategies. The Portfolio enables certain Nuveen municipal separately
managed account investors to achieve greater diversification and return
potential than smaller managed accounts might otherwise achieve by using lower
quality, higher yielding securities and to gain access to special investment
opportunities normally available only to institutional
investors.
Principal
Risks
The price and yield of this Portfolio will change
daily. You could lose money by investing in the Portfolio.
An
investment in the Portfolio is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Portfolio listed
below are presented alphabetically to facilitate your ability to find particular
risks and compare them with the risks of other funds. Each risk summarized below
is considered a "principal risk" of investing in the Portfolio, regardless of
the order in which it appears.
Active
Management Risk—The
Portfolio’s sub-adviser actively manages the Portfolio’s investments.
Consequently, the Portfolio is subject to the risk that the investment
techniques and risk analyses employed by the Portfolio’s sub-adviser
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Section
1
Portfolio Summary |
3 |
may
not produce the desired results. This could cause the Portfolio to lose value or
its investment results to lag relevant benchmarks or other funds with similar
objectives.
Alternative
Minimum Tax Risk—The
Portfolio has no limit as to the amount that can be invested in alternative
minimum tax bonds. Therefore, all or a portion of the Portfolio’s otherwise
exempt-interest dividends may be taxable to those shareholders subject to the
federal alternative minimum tax.
Call
Risk—If,
during periods of falling interest rates, an issuer calls higher-yielding
municipal bonds held by the Portfolio, the Portfolio may have to reinvest in
securities with lower yields or higher risk of default, which may adversely
impact the Portfolio’s
performance.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a municipal bond may
be unable or unwilling to make interest and principal payments when due and the
related risk that the value of a municipal bond may decline because of concerns
about the issuer’s ability or willingness to make such payments. The Portfolio's
investments in inverse floaters will increase the Portfolio's credit
risk.
Credit
Spread Risk—Credit
spread risk is the risk that credit spreads (i.e., the difference in yield
between securities that is due to differences in their credit quality) may
increase when the market believes that bonds generally have a greater risk of
default. Increasing credit spreads may reduce the market values of the
Portfolio’s municipal bonds. Credit spreads often increase more for lower rated
and unrated securities than for investment grade securities. In addition, when
credit spreads increase, reductions in market value will generally be greater
for longer-maturity
securities.
Cybersecurity
Risk—Cybersecurity
risk is the risk of an unauthorized breach and access to Portfolio assets,
customer data (including private shareholder information), or proprietary
information, or the risk of an incident occurring that causes the Portfolio, its
investment adviser or sub-adviser, custodian, transfer agent, distributor or
other service provider or a financial intermediary to suffer a data breach, data
corruption or lose operational functionality. Successful cyber-attacks or other
cyber-failures or events affecting the Portfolio or its service providers may
adversely impact the Portfolio or its shareholders. Additionally, a
cybersecurity breach could affect the issuers in which the Portfolio invests,
which may cause the Portfolio’s investments to lose
value.
Defaulted
Bond Risk—Defaulted
bonds are speculative and involve substantial risks in addition to the risks of
investing in high yield securities that have not defaulted. The Portfolio
generally will not receive interest payments on the defaulted bonds and there is
a substantial risk that principal will not be repaid. In any reorganization or
liquidation proceeding relating to a defaulted bond, the Portfolio may lose its
entire investment.
High
Yield Securities Risk—High
yield securities, which are rated below investment grade and commonly referred
to as “junk” bonds, are high risk investments that may cause income and
principal losses for the Portfolio. They generally are considered to be
speculative with respect to the ability to pay interest and repay principal,
have greater credit risk, are less liquid and have more volatile prices than
investment grade
securities.
Income
Risk—The
Portfolio's income could decline during periods of falling interest rates or
when the Portfolio experiences defaults on municipal bonds it holds. Also, if
the Portfolio invests in inverse floaters, the Portfolio's income may decrease
if short-term interest rates rise.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Portfolio’s municipal bonds will
decline because of rising interest rates. Very low or negative interest rates
may magnify interest rate risk. Changing interest rates, including rates that
fall below zero, may have unpredictable effects on markets, result in heightened
market volatility and detract from the Portfolio’s performance to the extent
that it is exposed to such interest rates. Municipal bonds may be subject to a
greater risk of rising interest rates than would normally be the case due to the
current period of historically low rates and the effect of potential government
fiscal policy initiatives and resulting market reaction to those initiatives.
When interest rates change, the values of longer-duration municipal bonds
usually change more than the values of shorter-duration municipal bonds.
Conversely, municipal bonds with shorter durations or maturities will be less
volatile but may provide lower returns than municipal bonds with longer
durations or maturities. Rising interest rates also may lengthen the duration of
municipal bonds with call features, since exercise of the call becomes less
likely as interest rates rise, which in turn will make the securities more
sensitive to changes in interest rates and result in even steeper price declines
in the event of further interest rate
increases.
Inverse
Floaters Risk—The
use of inverse floaters by the Portfolio creates effective leverage. Due to the
leveraged nature of these investments, they will typically be more volatile and
involve greater risk than the fixed rate municipal bonds underlying the inverse
floaters. An investment in certain inverse floaters will involve the risk that
the Portfolio could lose more than its original principal investment.
Distributions on inverse floaters bear an inverse relationship to short-term
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4 |
Section
1
Portfolio Summary |
municipal
bond interest rates. Thus, distributions paid to the Portfolio on its inverse
floaters will be reduced or even eliminated as short-term municipal bond
interest rates rise and will increase when short-term municipal bond interest
rates fall. Inverse floaters generally will underperform the market for fixed
rate municipal bonds in a rising interest rate
environment.
Market
Risk—The
market value of the Portfolio’s investments may go up or down, sometimes rapidly
or unpredictably and for short or extended periods of time, due to the
particular circumstances of individual issuers or due to general conditions
impacting issuers more broadly. Global economies and financial markets have
become highly interconnected, and thus economic, market or political conditions
or events in one country or region might adversely impact the value of the
Portfolio’s investments whether or not the Portfolio invests in such country or
region. Events such as war, terrorism, natural and environmental disasters and
the spread of infectious illnesses or other public health emergencies may have a
severe negative impact on the global economy, could cause financial markets to
experience extreme volatility and losses, and could result in the disruption of
trading and the reduction of liquidity in many
instruments.
Municipal
Bond Market Liquidity Risk—Inventories
of municipal bonds held by brokers and dealers have decreased in recent years,
lessening their ability to make a market in these securities. This reduction in
market making capacity has the potential to decrease the Portfolio’s ability to
buy or sell bonds, and increase bond price volatility and trading costs,
particularly during periods of economic or market stress. In addition, recent
federal banking regulations may cause certain dealers to reduce their
inventories of municipal bonds, which may further decrease the Portfolio’s
ability to buy or sell bonds. As a result, the Portfolio may be forced to accept
a lower price to sell a security, to sell other securities to raise cash, or to
give up an investment opportunity, any of which could have a negative effect on
performance. If the Portfolio needed to sell large blocks of bonds to raise cash
(such as to meet heavy shareholder redemptions), those sales could further
reduce the bonds’ prices and hurt performance.
Municipal
Lease Obligations Risk—Participation
interests in municipal leases pose special risks because many leases and
contracts contain “non-appropriation” clauses that provide that the governmental
issuer has no obligation to make future payments under the lease or contract
unless money is appropriated for this purpose by the appropriate legislative
body.
Municipal
Securities Risk—The
values of municipal securities held by the Portfolio may be adversely affected
by local political and economic conditions and developments. The Portfolio may
make significant investments in a particular segment of the municipal bond
market or in the debt of issuers located in the same state or territory. Adverse
conditions in such industry or location could have a correspondingly adverse
effect on the financial condition of issuers. These conditions may cause the
value of the Portfolio’s shares to fluctuate more than the values of shares of
funds that invest in a greater variety of investments. The amount of public
information available about municipal bonds is generally less than for certain
corporate equities or bonds, meaning that the investment performance of the
Portfolio may be more dependent on the analytical abilities of the Portfolio’s
sub-adviser than funds that invest in stock or other corporate
investments.
Tax
Risk—Income
from municipal bonds held by the Portfolio could be declared taxable because of,
among other things, unfavorable changes in tax laws, adverse interpretations by
the Internal Revenue Service or state tax authorities, or noncompliant conduct
of a bond issuer or other obligated party. Investments in taxable municipal
bonds may cause the Portfolio to have taxable investment
income.
Unrated
Bond Risk—Unrated
municipal bonds determined by the Portfolio’s sub-adviser to be of comparable
quality to rated municipal bonds which the Portfolio may purchase may pay a
higher interest rate than such rated municipal bonds and be subject to a greater
risk of illiquidity or price changes. Less public information is typically
available about unrated municipal bonds or issuers than rated bonds or
issuers.
U.S.
Territory Risk—The
Portfolio’s investments may include municipal bonds issued by U.S. territories
such as Puerto Rico, the U.S. Virgin Islands and Guam that pay interest exempt
from regular federal personal income tax. Accordingly, the Portfolio may be
adversely affected by local political and economic conditions and developments
within these U.S. territories.
Valuation
Risk—The
municipal bonds in which the Portfolio invests typically are valued by a pricing
service utilizing a range of market-based inputs and assumptions, including
readily available market quotations obtained from broker-dealers making markets
in such instruments, cash flows and transactions for comparable instruments.
There is no assurance that the Portfolio will be able to sell a portfolio
security at the price established by the pricing service, which could result in
a loss to the Portfolio. Pricing services generally price municipal bonds
assuming orderly transactions of an institutional “round lot” size, but some
trades may occur in smaller, “odd lot” sizes, often at lower prices than
institutional round lot trades. Different pricing services may incorporate
different assumptions and inputs into their valuation
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Section
1
Portfolio Summary |
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methodologies,
potentially resulting in different values for the same securities. As a result,
if the Portfolio were to change pricing services, or if the Portfolio’s pricing
service were to change its valuation methodology, there could be a material
impact, either positive or negative, on the Portfolio’s net asset
value.
When-Issued,
Delayed-Delivery and Forward Commitment Transactions Risk—These
transactions involve an element of risk because, although the Portfolio will not
have made any cash outlay prior to the settlement date, the value of the
security to be purchased may decline to a level below its purchase price before
that settlement date.
Zero
Coupon Bonds Risk—Because
interest on zero coupon bonds is not paid on a current basis, the values of zero
coupon bonds will be more volatile in response to interest rate changes than the
values of bonds that distribute income regularly. Although zero coupon bonds
generate income for accounting purposes, they do not produce cash flow, and thus
the Portfolio could be forced to liquidate securities at an inopportune time in
order to generate cash to distribute to shareholders as required by tax
laws.
Portfolio
Performance
The
following bar chart and table provide some indication of the potential risks of
investing in the Portfolio. The
Portfolio’s past performance (before and after taxes) is not necessarily an
indication of how the Portfolio will perform in the future.
The
returns do not reflect any charges that are imposed by the separately managed
accounts. If such charges were reflected, the returns would be
lower.
The bar chart below shows the variability of the
Portfolio’s performance from year to year.
* Year-to-date total
return as of September 30, 2021 was
1.39%.
During
the ten-year period ended December 31, 2020, the Portfolio’s highest and
lowest quarterly
returns were 5.07%
and
-4.74%, respectively, for the quarters
ended June 30, 2011 and June 30,
2013.
The
table below shows the variability of the Portfolio’s average annual returns and
how they compare over the time periods indicated with those of a broad measure
of market performance. All after-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your own actual
after-tax returns will depend on your specific tax situation and may differ from
what is shown here.
Performance
reflects fee waivers, if any, in effect during the periods presented. If any
such waivers had not been in place, returns would have been
reduced.
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6 |
Section
1
Portfolio Summary |
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Average
Annual Total Returns |
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for
the Periods Ended |
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December
31, 2020 |
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1
Year |
5
Years |
10
Years |
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Return
Before Taxes |
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5.24 |
% |
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4.74 |
% |
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6.11 |
% |
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Return
After Taxes on Distributions |
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5.24 |
% |
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4.73 |
% |
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6.05 |
% |
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Return
After Taxes on Distributions and Sale of Shares |
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4.33 |
% |
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4.42 |
% |
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5.71 |
% |
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Bloomberg
7-Year Municipal Bond Index1 |
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(reflects
no deduction for fees, expenses or taxes) |
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5.11 |
% |
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3.47 |
% |
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3.97 |
% |
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1 |
An unmanaged index composed of a broad
range of investment-grade municipal bonds with maturity dates of
approximately seven years. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Manager
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Name |
Title |
Portfolio
Manager of Portfolio Since |
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Martin
J. Doyle, CFA |
Senior
Managing Director and
Director,
SMA Portfolio Management |
May
2007 |
Purchase
and Sale of Shares
Portfolio
shares may be purchased only by or on behalf of separately managed account
clients where Nuveen Asset Management, LLC has an agreement to serve as
investment adviser or sub-adviser to the account with the separately managed
account program sponsor (typically a registered investment adviser or
broker-dealer) or directly with the client. The Portfolio intends to redeem
shares held by or on behalf of a shareholder who ceases to be an eligible
investor as described above, and each shareholder, by purchasing shares, agrees
to any such redemption. There are no minimum initial investment requirements.
The municipal separately managed accounts with which the Portfolio is associated
typically impose relatively large minimum investment requirements, which will
operate as an effective minimum for the Portfolio.
Shares
may be redeemed on any business day. Typically, the redemption request will be
initiated either by you through the separately managed account program advisor
reducing or totally liquidating your municipal separately managed account or by
the portfolio manager for your separately managed account redeeming shares on
your behalf in order to raise cash to fund the purchase of individual municipal
bonds or other investments within your separately managed account. You will
receive the share price next determined after the Portfolio has received your
properly completed redemption request. Your direct or indirect redemption
request must be received before the close of trading for you to receive that
day’s price.
Tax
Information
The
Portfolio intends to make interest income distributions that are exempt from
regular federal income tax. However, all or a portion of these distributions may
be subject to the federal alternative minimum tax. In addition, a portion of the
Portfolio's distributions may be subject to regular federal, state and local
income tax.
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Section
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Portfolio Summary |
7 |
Section
2
How We Manage Your Money
To
help you better understand the Portfolio, this section includes a detailed
discussion of the Portfolio's investment and risk management strategies. For a
more complete discussion of these matters, please see the statement of
additional information, which is available by calling (800) 257-8787.
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Who
Manages the Portfolio |
Nuveen
Fund Advisors, LLC (“Nuveen
Fund Advisors”),
the Portfolio’s investment adviser, offers advisory and investment management
services to a broad range of clients, including investment companies and other
pooled investment vehicles. Nuveen Fund Advisors has overall responsibility for
management of the Portfolio, oversees the management of the Portfolio’s
portfolio, manages the Portfolio’s business affairs and provides certain
clerical, bookkeeping and other administrative services. Nuveen Fund Advisors is
located at 333 West Wacker Drive, Chicago, Illinois 60606. Nuveen Fund Advisors
is a subsidiary of Nuveen, LLC, the investment management arm of Teachers
Insurance and Annuity Association of America (“TIAA”).
TIAA is a life insurance company founded in 1918 by the Carnegie Foundation for
the Advancement of Teaching and is the companion organization of College
Retirement Equities Fund. As of September 30, 2021, Nuveen, LLC managed
approximately $1.2 trillion in assets, of which approximately $183.8 billion was
managed by Nuveen Fund Advisors.
The
Portfolio does not pay any direct management or other fees. Nuveen Fund Advisors
and its affiliates are absorbing all expenses of operating the Portfolio (other
than interest expense, taxes, fees incurred in acquiring and disposing of
portfolio securities, and extraordinary expenses) and do not charge any fees
directly to the Portfolio. You should be aware, however, that the Portfolio is
an integral part of a municipal separately managed account product managed by
Nuveen Fund Advisors and available only through certain separately managed
account program sponsors. Participants in these programs pay a fee to the
sponsor of the program in connection with their separately managed account. You
should read carefully the program brochure provided to you by the sponsor or
your investment adviser. That brochure is required to include information about
the fees charged to you by the sponsor and the fees paid by the sponsor to
Nuveen Fund Advisors and its affiliates.
Nuveen
Fund Advisors has selected its affiliate, Nuveen Asset Management, LLC
(“Nuveen
Asset Management”),
located at 333 West Wacker Drive, Chicago, Illinois 60606, to serve as
sub-adviser to the Portfolio. Nuveen Asset Management manages the investment of
the Portfolio’s assets on a discretionary basis, subject to the supervision of
Nuveen Fund Advisors. Nuveen Asset Management is also the investment adviser or
sub-adviser to the separately managed accounts with which the Portfolio is
associated.
Martin
J. Doyle, CFA, Senior Managing Director at Nuveen Asset Management, is the
portfolio manager of the Portfolio. Mr. Doyle joined Nuveen Asset Management in
1987 and became a portfolio manager in 1998. Since 1999, he has been responsible
for overseeing the investment team that manages municipal institutional and
separately managed accounts.
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Additional
information about the portfolio manager's compensation, other accounts managed
by the portfolio manager and the portfolio manager's ownership of securities in
the Portfolio is provided in the statement of additional information.
Information
regarding the Board of Trustees’ approval of the investment management
agreements is available in the Portfolio’s annual report for the fiscal year
ended July 31, 2021.
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More
About Our Investment Strategies |
The
Portfolio’s investment objectives, which are described in the “Portfolio
Summary” section, may not be changed without shareholder approval.
The
Portfolio has adopted a fundamental investment policy (the "Name
Policy")
whereby the Portfolio, under normal market conditions, will invest at least 80%
of the sum of its net assets and the amount of any borrowings for investment
purposes in municipal bonds that pay interest that is exempt from regular
federal personal income tax. The Portfolio will consider both direct investments
and indirect investments (e.g., investments in other investment companies,
derivatives and synthetic instruments with economic characteristics similar to
the direct investments that meet the Name Policy) when determining compliance
with the Name Policy. For purposes of the Name Policy, the Portfolio will value
eligible derivatives at fair value or market value instead of notional value.
The Name Policy may not be changed without shareholder approval.
The
Portfolio's investment policies may be changed by the Board of Trustees without
shareholder approval unless otherwise noted in this prospectus or the statement
of additional information.
The
Portfolio's principal investment strategies are discussed in the “Portfolio
Summary” section. These are the strategies that the Portfolio's investment
adviser and sub-adviser believe are most likely to be important in trying to
achieve the Portfolio‘s investment objectives. This section provides more
information about these strategies, as well as information about some additional
strategies that the Portfolio's sub-adviser uses, or may use, to achieve the
Portfolio's objectives. You should be aware that the Portfolio may also use
strategies and invest in securities that are not described in this prospectus,
but that are described in the statement of additional information. For a copy of
the statement of additional information, call Nuveen Funds at (800) 257-8787 or
visit Nuveen’s website at www.nuveen.com.
Municipal
Bonds
States,
local governments and municipalities and other issuing authorities issue
municipal bonds to raise money for various public purposes such as building
public facilities, refinancing outstanding obligations and financing general
operating expenses. These bonds include general obligation bonds, which are
backed by the full faith and credit of the issuer and may be repaid from any
revenue source, and revenue bonds, which may be repaid only from the revenue of
a specific facility or source.
The
Portfolio may purchase municipal bonds that represent lease obligations. These
carry special risks because the issuer of the bonds may not be obligated to
appropriate money annually to make payments under the lease. In order to reduce
this risk, the Portfolio will, in making purchase decisions, take into
consideration the issuer’s incentive to continue making appropriations until
maturity.
The
municipal bonds in which the Portfolio invests may include refunded bonds and
zero coupon bonds. Refunded bonds may have originally been issued as general
obligation
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or
revenue bonds, but become “refunded” when they are secured by an escrow fund,
usually consisting entirely of direct U.S. government obligations and/or U.S.
government agency obligations. Zero coupon bonds are issued at substantial
discounts from their value at maturity and pay no cash income to their holders
until they mature. When held to maturity, their entire return comes from the
difference between their purchase price and their maturity value.
The
municipal bonds in which the Portfolio invests may have variable, floating, or
fixed interest rates.
In
evaluating municipal bonds of different credit qualities or maturities, Nuveen
Asset Management takes into account the size of yield spreads. Yield spread is
the additional return the Portfolio may earn by taking on additional credit risk
or interest rate risk. For example, yields on low quality bonds are higher than
yields on high quality bonds because investors must be compensated for incurring
the higher credit risk associated with low quality bonds. If yield spreads do
not provide adequate compensation for the additional risk associated with low
quality bonds, the Portfolio may buy bonds of relatively higher quality.
Similarly, in evaluating bonds of different maturities, Nuveen Asset Management
evaluates the comparative yield available on these bonds. If yield spreads on
long-term bonds do not compensate the Portfolio adequately for the additional
interest rate risk the Portfolio must assume, the Portfolio may buy bonds of
relatively shorter maturity. In addition, municipal bonds in a particular
industry may provide higher yields relative to their risk compared to bonds in
other industries. If that occurs, the Portfolio may buy more bonds from issuers
in that industry.
The
Portfolio may normally invest up to 20% of its net assets in municipal bonds
that are not exempt from regular federal personal income tax. Income received
from the Portfolio’s municipal bonds may be subject to the federal alternative
minimum tax and state and local taxes.
Credit
Quality.
The Portfolio has principal investment strategies concerning its investment in
municipal bonds that have received a particular rating from a rating service,
such as Moody’s or Standard & Poor’s. Any reference in this prospectus to a
specific rating encompasses all gradations of that rating. For example, if the
prospectus says that the Portfolio may invest in securities rated as low as B,
the Portfolio may invest in securities rated B-. The rating assigned to a
particular investment does not necessarily reflect the issuer’s current
financial condition and does not reflect an assessment of the investment’s
volatility or liquidity. Municipal bonds that are rated below investment grade
(BB/Ba or lower) are commonly referred to as “high yield” or “junk” bonds. High
yield bonds typically offer higher yields than investment grade bonds with
similar maturities but involve greater risks, including the possibility of
default or bankruptcy, and increased market price volatility.
Portfolio
Maturity and Effective Duration
Maturity
measures the time until a bond makes its final payment. The Portfolio buys
municipal bonds with different maturities in pursuit of its investment
objective, but will generally maintain, under normal market conditions, an
investment portfolio with an overall weighted average maturity of approximately
12 to 25 years.
Effective
duration measures a bond’s expected life on a present value basis, taking into
account the bond’s yield, interest payments, final maturity and, in the case of
a bond with an embedded option (e.g., the right of the issuer to call the bond
prior to maturity, or a sinking fund schedule), the probability that the option
will be exercised. Effective duration is a reasonably accurate measure of a
bond’s price sensitivity to changes in interest rates. The longer the effective
duration of a bond, the greater the bond’s price sensitivity
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is
to changes in interest rates, which typically corresponds to higher volatility
and risk. For example, if a bond has an effective duration of five years, its
value will decrease by approximately 5% if interest rates rise by 1%. Under
normal market conditions, the Portfolio will generally maintain an investment
portfolio with a weighted average effective duration of approximately 7 to 11
years. The Portfolio’s measurement of weighted average effective duration will
reflect the impact of portfolio leverage through any investments in inverse
floaters.
Inverse
Floaters
The
Portfolio may invest in inverse floaters issued in tender option bond
(“TOB”)
transactions. In a TOB transaction, one or more highly-rated municipal bonds are
deposited into a special purpose trust that issues floating rate securities
(“floaters”)
to outside parties and inverse floaters to long-term investors like the
Portfolio. The floaters pay interest at a rate that is reset periodically
(generally weekly) to reflect current short-term tax-exempt interest rates.
Holders of the floaters have the right to tender such securities back to the TOB
trust for par plus accrued interest (the “put
option”),
typically on seven days’ notice. Holders of the floaters are paid from the
proceeds of a successful remarketing of the floaters or by a liquidity provider
in the event of a failed remarketing. The inverse floaters pay interest at a
rate equal to (a) the interest accrued on the underlying bonds, minus (b) the
sum of the interest payable on the floaters and fees payable in connection with
the TOB. Thus, the interest payments on the inverse floaters will vary inversely
with the short-term rates paid on the floaters. Holders of the inverse floaters
typically have the right to simultaneously (a) cause the holders of the floaters
to tender those floaters to the TOB trust at par plus accrued interest and (b)
purchase the municipal bonds from the TOB trust.
Because
holders of the floaters have the right to tender their securities to the TOB
trust at par plus accrued interest, holders of the inverse floaters are exposed
to all of the gains or losses on the underlying municipal bonds, despite the
fact that their net cash investment is significantly less than the value of
those bonds. This multiplies the positive or negative impact of the underlying
bonds’ price movements on the value of the inverse floaters, thereby creating
effective leverage. The effective leverage created by any TOB transaction
depends on the value of the securities deposited in the TOB trust relative to
the value of the floaters it issues. The higher the percentage of the TOB
trust’s total value represented by the floaters, the greater the effective
leverage. For example, if municipal bonds worth $100 are deposited in a TOB
trust and the TOB trust issues floaters worth $75 and inverse floaters worth
$25, the TOB trust will have a leverage ratio of 3:1 and the inverse floaters
will exhibit price movements at a rate that is four times that of the underlying
bonds deposited into the trust. If that same TOB trust were to issue only $50 of
floaters, the leverage ratio would be 1:1 and the inverse floaters would exhibit
price movements at a rate that is only two times that of the underlying
bonds.
Short-Term
Investments and Cash Equivalents
Under
normal market conditions, the Portfolio may invest up to 20% of its net assets
in short-term investments, such as short-term, high quality municipal bonds or
tax-exempt money market funds. The Portfolio may invest in short-term, high
quality taxable securities or shares of taxable money market funds if suitable
short-term municipal bonds or shares of tax-exempt money market funds are not
available at reasonable prices and yields. If the Portfolio invests in taxable
securities, it may not be able to achieve its investment objectives.
As
a non-principal investment strategy, the Portfolio may invest up to 100% of its
assets in cash equivalents and short-term investments as a temporary defensive
measure in
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response
to adverse market conditions or to keep cash on hand fully invested. During
these periods, the weighted average maturity of the Portfolio’s investment
portfolio may fall below the defined range described above under “Portfolio
Maturity and Effective Duration” and the Portfolio may not achieve its
objectives. The Portfolio does not expect to invest substantial amounts in
short-term investments as a defensive measure except under extraordinary
circumstances.
For
more information on eligible short-term investments, see the statement of
additional information.
Disclosure
of Portfolio Holdings
A
description of the Portfolio’s policies and procedures with respect to the
disclosure of its portfolio holdings is available in the Portfolio’s statement
of additional information. A list of the Portfolio’s portfolio holdings is
available at www.nuveen.com/en-us/resources/resource-center
and clicking on the “Nuveen fund holdings” link. By following this link, you can
obtain a complete list of the Portfolio’s holdings as of the end of the most
recent month. This information will remain available on the website until the
Portfolio files with the Securities and Exchange Commission its annual,
semi-annual or quarterly holdings report for the fiscal period that includes the
date(s) as of which the website information is current.
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How
We Select Investments |
Investment
Philosophy
Nuveen
Asset Management believes that the tax treatment of municipal securities and the
structural characteristics in the municipal securities market create
opportunities to enhance the after-tax total return and diversification of the
investment portfolios of taxable investors.
Investment
Process
Nuveen
Asset Management believes that a value-oriented investment strategy that seeks
to identify underrated and undervalued securities and sectors is positioned to
capture the opportunities inherent in the municipal securities market and
potentially outperform the general municipal securities market over time. The
primary elements of Nuveen Asset Management’s investment process are:
· Credit
analysis and surveillance
· Sector
analysis
· Limited
industry concentration
· Trading
strategies
· Sell
discipline
· Yield
curve and structural analysis
Risk
is inherent in all investing. Investing in a mutual fund involves risk,
including the risk that you may receive little or no return on your investment
or even that you may lose part or all of your investment. Therefore, before
investing you should consider carefully the principal risks and certain other
risks that you assume when you invest in the Portfolio. These risks are listed
alphabetically below. Because of these risks, you should consider an investment
in the Portfolio to be a long-term investment.
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Active
management risk:
The Portfolio's sub-adviser actively manages the Portfolio’s investments.
Consequently, the Portfolio is subject to the risk that the investment
techniques and risk analyses employed by the Portfolio's sub-adviser may not
produce the desired results. This could cause the Portfolio to lose value or its
investment results to lag relevant benchmarks or other portfolios with similar
objectives. Additionally, legislative, regulatory or tax developments may affect
the investment techniques available to the Portfolio's sub-adviser in connection
with managing the Portfolio and such developments, as well as any deficiencies
in the operating systems or controls of the sub-adviser or a Portfolio service
provider, may also adversely affect the ability of the Portfolio to achieve its
investment goal.
Alternative
minimum tax risk:
The Portfolio has no limit as to the amount that can be invested in alternative
minimum tax bonds. Therefore, all or a portion of the Portfolio’s otherwise
exempt-interest dividends may be taxable to those shareholders subject to the
federal alternative minimum tax.
Call
risk: Municipal
bonds are subject to call risk. Many bonds may be redeemed at the option of the
issuer, or “called,” before their stated maturity date. In general, an issuer
will call its bonds if they can be refinanced by issuing new bonds which bear a
lower interest rate. The Portfolio is subject to the possibility that during
periods of falling interest rates, a bond issuer will call its high yielding
bonds. The Portfolio would then be forced to invest the unanticipated proceeds
at lower interest rates or in securities with a higher risk of default, which
may adversely impact the Portfolio’s performance. Such redemptions and
subsequent reinvestments would also increase the Portfolio's portfolio turnover.
If the called bond was purchased or is currently valued at a premium, the value
of the premium may be lost in the event of prepayment.
Credit
risk: Credit
risk is the risk that an issuer of a municipal bond held by the Portfolio may be
unable or unwilling to make interest and principal payments and the related risk
that the value of a municipal bond may decline because of concerns about the
issuer’s ability or willingness to make such payments. Municipal bonds are
subject to varying degrees of credit risk, which are often reflected in credit
ratings. The credit rating of a municipal bond may be lowered if the issuer
suffers adverse changes in its financial condition, which can lead to greater
volatility in the price of the bond and in shares of the Portfolio, and can also
affect the bond’s liquidity and make it more difficult for the Portfolio to
sell. When the Portfolio purchases unrated securities, it will depend on the
sub-adviser’s analysis of credit risk without the assessment of an independent
rating organization, such as Moody’s or Standard & Poor’s. Credit risk may
be increased by the Portfolio's investments in inverse floaters because of the
leveraged nature of these investments.
To
the extent that the Portfolio holds municipal bonds that are secured or
guaranteed by financial institutions, changes in the credit quality of such
financial institutions could cause the values of these municipal bonds to
decline.
Credit
spread risk:
Credit spread risk is the risk that credit spreads (i.e.,
the
difference in yield between securities that is due to differences in their
credit quality) may increase when the market believes that bonds generally have
a greater risk of default. Increasing credit spreads may reduce the market
values of the Portfolio’s securities. Credit spreads often increase more for
lower rated and unrated securities than for investment grade securities. In
addition, when credit spreads increase, reductions in market value will
generally be greater for longer-maturity securities.
Cybersecurity
risk:
Intentional cybersecurity breaches include: unauthorized access to systems,
networks or devices (such as through “hacking” activity); infection from
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computer
viruses or other malicious software code; and attacks that shut down, disable,
slow, or otherwise disrupt operations, business processes, or website access or
functionality. In addition, unintentional incidents can occur, such as the
inadvertent release of confidential information (possibly resulting in the
violation of applicable privacy laws).
A
cybersecurity breach could result in the loss or theft of customer data or
funds, the inability to access electronic systems (“denial of services”), loss
or theft of proprietary information or corporate data, physical damage to a
computer or network system, or costs associated with system repairs. Such
incidents could cause the Portfolio, the Portfolio’s adviser or sub-adviser, a
financial intermediary, or other service providers to incur regulatory
penalties, reputational damage, additional compliance costs or financial loss.
Negative impacts on the Portfolio could include the inability to calculate net
asset value, transact business, process transactions on behalf of shareholders
or safeguard data. In addition, such incidents could affect issuers in which the
Portfolio invests, and thereby cause the Portfolio’s investments to lose
value.
Defaulted
bond risk:
Defaulted bonds are speculative and involve substantial risks in addition to the
risks of investing in high yield securities that have not defaulted. The
Portfolio generally will not receive interest payments on the defaulted bonds
and there is a substantial risk that principal will not be repaid. Defaulted
bonds may be repaid only after lengthy workout or bankruptcy proceedings, during
which the issuer may not make any interest or other payments. The Portfolio may
incur additional expenses to the extent it is required to seek recovery upon a
default in the payment of principal of or interest on its portfolio holdings. In
any reorganization or liquidation proceeding relating to a defaulted bond, the
Portfolio may lose its entire investment or may be required to accept cash or
securities with a value less than its original investment. Defaulted bonds and
any securities received in exchange for defaulted bonds may be subject to
restrictions on resale.
High
yield securities risk: Securities
that are rated below-investment grade are commonly referred to as “high yield”
securities or “junk” bonds. High yield securities usually offer higher yields
than investment grade securities, but also involve more risk. Analysis of the
creditworthiness of issuers of high yield securities may be more complex than
for issuers of higher rated debt securities. High yield securities are
considered to be speculative with respect to the ability to pay interest and
repay principal. High yield securities may be more susceptible to real or
perceived adverse economic conditions than investment grade securities, and they
generally have more volatile prices and carry more risk to principal. In
addition, high yield securities generally are less liquid than investment grade
securities. Any investment in distressed or defaulted securities subjects the
Portfolio to even greater credit risk than investments in other below-investment
grade securities.
Income
risk:
The Portfolio’s income from its municipal bonds could decline during periods of
falling interest rates because the Portfolio generally may have to invest the
proceeds from sales of Portfolio shares, as well as the proceeds from maturing
portfolio municipal bonds (or portfolio securities that have been called, see
“Call risk” above), in lower-yielding securities. In addition, the Portfolio’s
income could decline when the Portfolio experiences defaults on municipal bonds
it holds. To the extent that the Portfolio invests in floating-rate securities,
the income generated from such securities will decrease during periods of
falling interest rates. Also, if the Portfolio invests in inverse floaters,
whose income payments vary inversely with changes in short-term market rates,
the Portfolio's income may decrease if short-term interest rates
rise.
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Interest
rate risk:
Municipal bonds held by the Portfolio will fluctuate in value with changes in
interest rates. In general, municipal bonds will increase in value when interest
rates fall and decrease in value when interest rates rise. Short-term and
long-term interest rates do not necessarily move in the same amount or in the
same direction. Very low or negative interest rates may magnify interest rate
risk. Changing interest rates, including rates that fall below zero, may have
unpredictable effects on markets, result in heightened market volatility and
detract from the Portfolio’s performance to the extent that it is exposed to
such interest rates. Under certain circumstances, very low or negative interest
rates may cause the Portfolio to have very low or negative yields on some of its
securities. The Portfolio may be subject to a greater risk of rising interest
rates than would normally be the case due to the current period of historically
low rates and the effect of potential government fiscal policy initiatives and
resulting market reaction to those initiatives. Longer-term municipal bonds are
generally more sensitive to interest rate changes. Therefore, a fund that has a
portfolio with a longer weighted average maturity or effective duration may be
impacted to a greater degree than a fund that has a portfolio with a shorter
weighted average maturity or effective duration. Conversely, municipal bonds
with shorter durations or maturities will be less volatile but may provide lower
returns than municipal bonds with longer durations or maturities. Rising
interest rates also may lengthen the duration of municipal bonds with call
features, since exercise of the call becomes less likely as interest rates rise,
which in turn will make the securities more sensitive to changes in interest
rates and result in even steeper price declines in the event of further interest
rate increases.
Inverse
floaters risk:
The use of inverse floaters by the Portfolio creates effective leverage. Due to
the leveraged nature of these investments, the value of an inverse floater will
increase and decrease to a significantly greater extent than the values of the
TOB trust’s underlying municipal bonds in response to changes in market interest
rates or credit quality. An investment in inverse floaters typically will
involve greater risk than an investment in a fixed rate municipal bond,
including, in the case of recourse inverse floaters (discussed below), the risk
that the Portfolio may lose more than its original principal
investment.
Distributions
on inverse floaters bear an inverse relationship to short-term municipal bond
interest rates. Thus, distributions paid to the Portfolio on its inverse
floaters will be reduced or even eliminated as short-term municipal bond
interest rates rise and will increase when short-term municipal bond interest
rates fall. The greater the amount of floaters sold by a TOB trust relative to
the inverse floaters (i.e., the greater the effective leverage of the inverse
floaters), the more volatile the distributions on the inverse floaters will be.
Inverse floaters generally will underperform the market for fixed rate municipal
bonds in a rising interest rate environment.
The
Portfolio may invest in recourse inverse floaters. With such an investment, the
Portfolio will be required to reimburse the liquidity provider of a TOB trust
for any shortfall between the outstanding amount of any floaters and the value
of the municipal bonds in the TOB trust in the event the floaters cannot be
successfully remarketed, which could cause the Portfolio to lose money in excess
of its investment.
A
TOB trust may be terminated without the Portfolio’s consent upon the occurrence
of certain events, such as the bankruptcy or default of the issuer of the
securities in the trust. If that happens, the floaters will be redeemed at par
(plus accrued interest) out of the proceeds from the sale of securities in the
TOB trust, and the Portfolio will be entitled to the remaining proceeds, if any.
Thus, if there is a decrease in the value of the securities held in the TOB
trust, the Portfolio may lose some or all of the principal
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amount
of its investment in the inverse floaters. As noted above, in the case of
recourse inverse floaters, the Portfolio could lose money in excess of its
investment.
TOB
trusts have historically been established by third party sponsors (e.g., banks,
broker-dealers and other financial institutions). Rules implementing section 619
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the
“Volcker
Rule”)
have generally precluded banking entities and their affiliates from sponsoring
TOB trusts. In response to these restrictions, market participants have
developed a new structure for TOB trusts designed to ensure that no banking
entity is sponsoring the TOB trust for purposes of the Volcker Rule. To the
extent that the Portfolio, rather than a third-party bank or financial
institution, sponsors a TOB trust, certain responsibilities that previously
belonged to the sponsor bank will be performed by, or under the general
oversight of, the Portfolio. The Portfolio’s additional duties and
responsibilities under the new TOB trust structure may give rise to certain
additional risks including compliance, securities law and operational
risks.
Market
risk:
The market value of the Portfolio’s investments may go up or down, sometimes
rapidly or unpredictably and for short or extended periods of time. Market
values may change due to the particular circumstances of individual issuers or
due to general conditions impacting issuers more broadly within a specific
country, region, industry, sector or asset class. Global economies and financial
markets have become highly interconnected, and thus economic, market or
political conditions or events in one country or region might adversely impact
issuers in a different country or region. As a result, the value of the
Portfolio’s investments may be negatively affected whether or not the Portfolio
invests in a country or region directly impacted by such conditions or
events.
Additionally,
unexpected events and their aftermaths, including broad financial dislocations
(such as the “great recession” of 2008-09), war, terrorism, natural and
environmental disasters and the spread of infectious illnesses or other public
health emergencies (such as the COVID-19 coronavirus pandemic first detected in
December of 2019), may adversely affect the global economy and the markets and
issuers in which the Portfolio invests. These events could reduce consumer
demand or economic output, result in market closures, travel restrictions or
quarantines, or widespread unemployment, and generally have a severe negative
impact on the global economy. Such events could also impair the information
technology and other operational systems upon which the Portfolio’s service
providers, including the investment adviser and sub-adviser, rely, and could
otherwise disrupt the ability of employees of the Portfolio’s service providers
to perform essential tasks on behalf of the Portfolio. Furthermore, such events
could cause financial markets to experience elevated or even extreme volatility
and losses, and could result in the disruption of trading and the reduction of
liquidity in many instruments. Governmental and quasi-governmental authorities
and regulators throughout the world have in the past responded to major economic
disruptions with a variety of significant fiscal and monetary policy changes,
including but not limited to, direct capital infusions into companies, new
monetary programs and dramatically lower interest rates. An unexpected or quick
reversal of these policies, or the ineffectiveness of these policies, could
increase volatility in securities markets, which could adversely affect the
value of the Portfolio’s investments.
Municipal
bond market liquidity risk:
Inventories of municipal bonds held by brokers and dealers have decreased in
recent years, lessening their ability to make a market in these securities. This
reduction in market making capacity has the potential to decrease the
Portfolio’s ability to buy or sell bonds, and increase bond price volatility and
trading costs, particularly during periods of economic or market stress. In
addition, recent
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federal
banking regulations may cause certain dealers to reduce their inventories of
municipal bonds, which may further decrease the Portfolio’s ability to buy or
sell bonds. As a result, the Portfolio may be forced to accept a lower price to
sell a security, to sell other securities to raise cash, or to give up an
investment opportunity, any of which could have a negative effect on
performance. If the Portfolio needed to sell large blocks of bonds to raise cash
(such as to meet heavy shareholder redemptions), those sales could further
reduce the bonds’ prices and hurt Portfolio performance.
Municipal
lease obligations risk:
Participation interests in municipal leases are undivided interests in a lease,
installment purchase contract, or conditional sale contract entered into by a
state or local government unit to acquire equipment or facilities. Participation
interests in municipal leases pose special risks because many leases and
contracts contain “non-appropriation” clauses that provide that the governmental
issuer has no obligation to make future payments under the lease or contract
unless money is appropriated for this purpose by the appropriate legislative
body. If an issuer stopped making payment on the municipal lease, the obligation
held by the Portfolio would likely lose some or all of its value. In addition,
some municipal lease obligations may be less liquid than other debt obligations,
making it difficult for the Portfolio to sell the obligation at an acceptable
price. Although these kinds of obligations are secured by the leased equipment
or facilities, it might be difficult and time consuming to dispose of the
equipment or facilities in the event of non-appropriation, and the Portfolio
might not recover the full principal amount of the obligation.
Municipal
securities risk:
The values of municipal securities may be adversely affected by local political
and economic conditions and developments and, therefore, the Portfolio’s
performance may be tied to the conditions in any of the states and U.S.
territories where it is invested. Adverse conditions in an industry significant
to a local economy could have a correspondingly adverse effect on the financial
condition of local issuers. Other factors that could affect municipal securities
include a change in the local, state, or national economy, a downgrade of a
state’s credit rating or the rating of authorities or political subdivisions of
the state, demographic factors, ecological or environmental concerns, inability
or perceived inability of a government authority to collect sufficient tax or
other revenues, statutory limitations on the issuer’s ability to increase taxes,
and other developments generally affecting the revenue of issuers (for example,
legislation or court decisions reducing state aid to local governments or
mandating additional services). This risk would be heightened to the extent that
the Portfolio invests a substantial portion of the below-investment grade
quality portion of its portfolio in the bonds of similar projects (such as those
relating to the education, health care, housing, transportation, or utilities
industries), in industrial development bonds, or in particular types of
municipal securities (such as general obligation bonds, municipal lease
obligations, private activity bonds or moral obligation bonds) that are
particularly exposed to specific types of adverse economic, business or
political events. The value of municipal securities may also be adversely
affected by rising health care costs, increasing unfunded pension liabilities,
and by the phasing out of federal programs providing financial support. In
recent periods, a number of municipal issuers have defaulted on obligations,
been downgraded or commenced insolvency proceedings. Financial difficulties of
municipal issuers may continue or get worse, particularly as the full economic
impact of the COVID-19 coronavirus pandemic and the reductions in revenues of
states and municipalities due to the pandemic are realized. In addition, the
amount of public information available about municipal bonds is generally less
than for certain corporate equities or bonds, meaning that the investment
performance of the Portfolio may be more dependent on the analytical abilities
of the Portfolio’s sub-adviser than portfolios that invest in stock or other
corporate investments.
| |
|
|
Section
2
How We Manage Your Money |
17 |
To
the extent that the Portfolio invests a significant portion of its assets in the
securities of issuers located in a given state or U.S. territory, it will be
disproportionally affected by political and economic conditions and developments
in that state or territory and may involve greater risk than funds that invest
in a larger universe of securities. In addition, economic, political or
regulatory changes in that state or territory could adversely affect municipal
securities issuers in that state or territory and therefore the value of the
Portfolio’s investment portfolio.
Tax
risk:
There is no guarantee that the Portfolio’s income will remain exempt from
federal income taxes. Proposals have been made to restrict or eliminate the
federal income tax exemption for interest on municipal securities, and similar
proposals may be introduced in the future. Proposed “flat tax” and “value added
tax” proposals would also have the effect of eliminating the tax preference for
municipal securities. Some of the proposals would apply to interest on municipal
securities issued before the date of enactment, which would adversely affect
their value to a material degree. If such a proposal were enacted, the
availability of municipal securities for investment by the Portfolio and the
value of the Portfolio’s portfolio would be adversely affected.
In
addition, recent tax law changes could have a material impact on the value of
municipal securities. Because advance refunding bonds issued after December 31,
2017 are no longer tax-exempt, the total supply of municipal bonds could
decrease going forward. In addition, the reduction of the U.S. corporate income
tax rate to 21% could make municipal obligations less attractive to certain
institutional investors, resulting in lower demand for municipal obligations.
Additional changes in tax rates or the treatment of income from certain types of
municipal securities, among other things, could negatively affect the municipal
securities markets.
The
Portfolio’s investments in municipal securities rely on the opinion of the
issuer’s bond counsel that the interest paid on those securities will not be
subject to federal income tax. Tax opinions are generally provided at the time
the municipal security is initially issued and neither the Portfolio or its
portfolio manager will independently review the bases for those tax opinions or
guarantee that the tax opinions are correct. However, after the Portfolio buys a
security, the Internal Revenue Service may determine that a bond issued as
tax-exempt should in fact be taxable and the Portfolio’s dividends with respect
to that bond might be subject to federal income tax. If this happens, the value
of the security would likely fall and a shareholder of the Portfolio may have to
file an amended tax return and pay additional taxes.
Investments
in taxable obligations may cause the Portfolio to have taxable investment
income. In addition, the Portfolio may recognize taxable ordinary income from
market discount. The Portfolio may also realize capital gains on the sale of its
securities. These capital gains will be taxable regardless of whether they are
derived from the sale of tax-exempt bonds or taxable securities.
Unrated
bond risk:
Unrated municipal bonds determined by the Portfolio‘s sub-adviser to be of
comparable quality to rated municipal bonds which the Portfolio may purchase may
pay a higher interest rate than such rated municipal bonds and be subject to a
greater risk of illiquidity or price changes. Less public information is
typically available about unrated municipal bonds or issuers than rated bonds or
issuers.
U.S.
territory risk:
The Portfolio’s investments may include municipal bonds issued by U.S.
territories such as Puerto Rico, the U.S. Virgin Islands and Guam that pay
interest exempt from regular federal personal income tax. Accordingly, the
Portfolio may be adversely affected by local political and economic conditions
and developments within these U.S. territories.
| |
|
|
18 |
Section
2
How We Manage Your Money |
Valuation
risk:
The municipal bonds in which the Portfolio may invest typically are valued by a
pricing service utilizing a range of market-based inputs and assumptions,
including readily available market quotations obtained from broker-dealers
making markets in such instruments, cash flows and transactions for comparable
instruments. There is no assurance that the Portfolio will be able to sell a
portfolio security at the price established by the pricing service, which could
result in a loss to the Portfolio. Pricing services generally price municipal
bonds assuming orderly transactions of an institutional “round lot” size, but
some trades may occur in smaller, “odd lot” sizes, often at lower prices than
institutional round lot trades. Different pricing services may incorporate
different assumptions and inputs into their valuation methodologies, potentially
resulting in different values for the same securities. As a result, if the
Portfolio were to change pricing services, or if the Portfolio’s pricing service
were to change its valuation methodology, there could be a material impact,
either positive or negative, on the Portfolio’s net asset value.
When-issued,
delayed-delivery and forward commitment transactions risk:
These transactions involve an element of risk because, although the Portfolio
will not have made any cash outlay prior to the settlement date, the value of
the security to be purchased may decline to a level below its purchase price
before that settlement date.
Zero
coupon bonds risk:
As interest on zero coupon bonds is not paid on a current basis, the values of
the bonds are subject to greater fluctuations than are the value of bonds that
distribute income regularly and may be more speculative than such bonds.
Accordingly, the values of zero coupon bonds may be highly volatile as interest
rates rise or fall. In addition, while zero coupon bonds generate income for
purposes of generally accepted accounting standards, they do not generate cash
flow and thus could cause the Portfolio to be forced to liquidate securities at
an inopportune time in order to distribute cash, as required by certain tax
laws.
Non-Principal
Risks
Large
transactions risk:
The Portfolio may experience adverse effects due to large purchases or
redemptions of Portfolio shares. A large redemption by an individual
shareholder, or an increase in redemptions generally by Portfolio shareholders,
may cause the Portfolio to sell portfolio securities at times when it would not
otherwise do so, which may negatively impact the Portfolio’s net asset value and
liquidity. If the Portfolio has difficulty selling portfolio securities in a
timely manner to meet redemption requests, the Portfolio may have to borrow
money to do so. In such an instance, the Portfolio’s remaining shareholders
would bear the costs of such borrowings, and such costs could reduce the
Portfolio’s returns. In addition, until the Portfolio is able to sell securities
to meet redemption requests, the Portfolio’s market exposure may be greater than
it ordinarily would be, which would magnify the impact of any market movements
on the Portfolio’s performance. Similarly, large Portfolio share purchases may
adversely affect the Portfolio’s performance to the extent that the Portfolio is
delayed in investing new cash and is required to maintain a larger cash position
than it ordinarily would, reducing the Portfolio’s market exposure. Increased
redemption activity may also result in unexpected taxable distributions to
shareholders if such sales of investments resulted in gains and thereby
accelerated the realization of taxable income. In addition, large redemptions
could result in the Portfolio’s current expenses being allocated over a smaller
asset base, leading to an increase in the Portfolio’s expense ratio.
| |
|
|
Section
2
How We Manage Your Money |
19 |
Section
3
General Information
| |
Purchases
and Redemptions |
Eligible
Investors
Portfolio
shares may be purchased only by or on behalf of separately managed account
clients where Nuveen Asset Management has an agreement to serve as investment
adviser or sub-adviser to the account with the separately managed account
program sponsor (typically a registered investment adviser or broker-dealer) or
directly with the client. The Portfolio intends to redeem shares held by or on
behalf of a shareholder who ceases to be an eligible investor as described
above, and each shareholder, by purchasing shares, agrees to any such
redemption.
Calculation
of Share Price
Shares
may be purchased on any business day, which is any day the New York Stock
Exchange (the “NYSE”)
is open for business. Generally, the NYSE is closed on weekends and national
holidays. The share price you pay depends on when the Portfolio receives your
order. Orders will generally be placed on your behalf by Nuveen Asset Management
as manager of your municipal separately managed account. Orders received by the
Portfolio, and verified as described below, before the close of trading on a
business day (normally, 4:00 p.m. New York time) will receive that day’s closing
share price; otherwise, you will receive the next business day’s
price.
The
timing of the investment in the Portfolio as part of your separately managed
account will depend on several factors, including, but not limited to,
verification with your financial advisor or firm that Nuveen Asset Management is
authorized to trade on behalf of the separately managed account, confirmation of
the separately managed account investment parameters, funding of the account,
liquidation of existing securities, and specific order placement procedures of
separately managed account sponsors.
Investment
Minimums
There
are no minimum initial investment requirements. The municipal separately managed
accounts with which the Portfolio is associated typically impose relatively
large minimum investment requirements, which will operate as an effective
minimum for the Portfolio. The Portfolio, however, reserves the right to reject
purchase orders and to implement portfolio-level minimum investment
requirements.
Redemption
Procedures
Shares
may be redeemed on any business day, which is any day the NYSE is open for
business. Typically, the redemption request will be initiated either by you
through the separately managed account program advisor reducing or totally
liquidating your municipal separately managed account or by the portfolio
manager for your separately managed account redeeming shares on your behalf in
order to raise cash to fund the purchase of individual municipal bonds or other
investments within your separately managed account. You will receive the share
price next determined after the Portfolio has received your properly completed
redemption request. Your direct or indirect redemption request must be received
before the close of trading (normally, 4:00 p.m. New York time) for you to
receive that day’s price.
In
most cases, purchase and redemption orders are made to the broker-dealer who
executes trades for the applicable separately managed account based on
instructions
| |
|
|
20 |
Section
3
General Information |
from
the separately managed account adviser in its capacity as investment adviser or
sub-adviser to the account.
Redemptions
may be suspended when trading on the NYSE is restricted or during an emergency
that makes it impracticable for the Portfolio to dispose of its securities or to
determine fairly the value of its net assets or during any other period as
permitted by the Securities and Exchange Commission for the protection of
investors. Under these and other unusual circumstances, the Portfolio may delay
redemption payments for more than seven days as permitted by law.
| |
Dividends,
Distributions and Taxes |
The
Portfolio declares tax-free dividends daily and pays such dividends monthly,
usually on the first business day of the month. Your account will begin to
accrue dividends on the business day after the day when the monies used to
purchase your shares are collected by the transfer agent. The Portfolio declares
and pays any taxable capital gains or other taxable distributions once a year at
year end. The Portfolio may declare and pay dividends, capital gains or other
taxable distributions more frequently, if necessary or appropriate in the
Board’s discretion.
Dividends
and capital gains and other distributions will be paid only in cash and will not
be reinvested in additional shares of the Portfolio. For further information,
contact your financial advisor or call Nuveen Funds at (800) 257-8787.
Taxes
and Tax Reporting
Because
the Portfolio invests primarily in municipal bonds, the regular monthly
dividends you receive will generally be exempt from regular federal income tax.
All or a portion of these dividends, however, may be subject to state and local
taxes or to the federal alternative minimum tax.
Although
the Portfolio does not seek to realize taxable income or capital gains, the
Portfolio may realize and distribute taxable income or capital gains from time
to time as a result of the Portfolio’s normal investment activities. The
Portfolio’s distributions of these amounts are taxed as ordinary income or
capital gains and are taxable whether received in cash or reinvested in
additional shares. These distributions may also be subject to state and local
tax. Distributions from the Portfolio’s long-term capital gains are taxable as
capital gains, while distributions from short-term capital gains and net
investment income are generally taxable as ordinary income. The Portfolio’s
taxable dividends are not expected to qualify for a dividends received deduction
if you are a corporate shareholder or for the lower tax rates on qualified
dividend income.
Single
individuals with adjusted gross income exceeding $200,000 ($250,000 if married
and filing jointly) are generally subject to a 3.8% Medicare tax on their “net
investment income,” generally including interest, dividends, and capital gains
(including capital gains realized on the sale or exchange of shares). “Net
investment income” does not include exempt-interest dividends.
Early
in each year, you will receive a statement detailing the amount and nature of
all distributions that you were paid during the prior year. You will receive the
statement from the sponsor of your separately managed account program.
If
you receive social security or railroad retirement benefits, you should consult
your tax advisor about how an investment in the Portfolio may affect the
taxation of your benefits.
Each
sale or exchange of Portfolio shares may be a taxable event. For tax purposes,
an exchange of shares between funds is generally treated the same as a
sale.
| |
|
|
Section
3
General Information |
21 |
Please
note that if you do not furnish your Portfolio with your correct Social Security
number or employer identification number, you fail to provide certain
certifications to your Portfolio, you fail to certify whether you are a U.S.
citizen or a U.S. resident alien, or the Internal Revenue Service notifies the
Portfolio to withhold, federal law requires your Portfolio to withhold federal
income tax from your distributions and redemption proceeds at the applicable
withholding rate.
Please
consult the statement of additional information and your tax advisor for more
information about taxes.
Buying
or Selling Shares Close to a Record Date
Buying
Portfolio shares shortly before the record date for a taxable income or capital
gain distribution is commonly known as “buying the dividend.” The entire
distribution may be taxable to you even though a portion of the distribution
effectively represents a return of your purchase price.
Cost
Basis Method
For
shares acquired on or after January 1, 2012, you may elect a cost basis method
to apply to all existing and future accounts you may establish. The cost basis
method you select will determine the order in which shares are redeemed and how
your cost basis information is calculated and subsequently reported to you and
to the Internal Revenue Service. Please consult your tax advisor to determine
which cost basis method best suits your specific situation. If you hold your
account directly with the Portfolio, please contact Nuveen Funds at (800)
257-8787 for instructions on how to make your election. If you hold your account
directly with the Portfolio and do not elect a cost basis method, your account
will default to the average cost basis method. The average cost basis method
generally calculates cost basis by determining the average price paid for
Portfolio shares that may have been purchased at different times for different
prices.
Taxable
Equivalent Yields
The
taxable equivalent yield is the current yield you would need to earn on a
taxable investment in order to equal a stated federal tax-free yield on a
municipal investment. To assist you in comparing municipal investments like the
Portfolio with fully taxable alternative investments, the table below presents
the taxable equivalent yields for a range of hypothetical federal tax-free
yields and tax rates:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
Equivalents of Tax-Free Yields |
To
Equal a Tax-Free Yield of: |
| |
|
2.00 |
% |
|
3.00 |
% |
|
4.00 |
% |
|
5.00 |
% |
|
Tax
Rate: |
A
Taxable Investment Would Need to Yield: |
|
10% |
|
2.22 |
% |
|
3.33 |
% |
|
4.44 |
% |
|
5.56 |
% |
|
12% |
|
2.27 |
% |
|
3.41 |
% |
|
4.55 |
% |
|
5.68 |
% |
|
22% |
|
2.56 |
% |
|
3.85 |
% |
|
5.13 |
% |
|
6.41 |
% |
|
24% |
|
2.63 |
% |
|
3.95 |
% |
|
5.26 |
% |
|
6.58 |
% |
|
32% |
|
2.94 |
% |
|
4.41 |
% |
|
5.88 |
% |
|
7.35 |
% |
|
35% |
|
3.08 |
% |
|
4.62 |
% |
|
6.15 |
% |
|
7.69 |
% |
|
37% |
|
3.17 |
% |
|
4.76 |
% |
|
6.35 |
% |
|
7.94 |
% |
|
40.8%* |
|
3.38 |
% |
|
5.07 |
% |
|
6.76 |
% |
|
8.45 |
% |
* This
is the maximum stated regular federal tax rate of 37.00% plus the 3.8% Medicare
tax imposed on the net investment income of certain taxpayers. The Medicare tax
could also apply to taxpayers in other tax brackets.
The
yields and tax rates shown above are hypothetical and do not predict your actual
returns or effective tax rate. For more detailed information, see the statement
of additional information or consult your tax advisor.
| |
|
|
22 |
Section
3
General Information |
The
price you pay for your shares or the amount you receive upon redemption of your
shares is based on the Portfolio’s net asset value per share, which is
determined as of the close of trading (normally 4:00 p.m. New York time) on each
day the NYSE is open for business. Net asset value is calculated for the
Portfolio by taking the value of the total assets, including interest or
dividends accrued but not yet collected, less all liabilities, and dividing by
the total number of shares outstanding. The result, rounded to the nearest cent,
is the net asset value per share.
In
determining net asset value, portfolio instruments generally are valued using
prices provided by independent pricing services or obtained from other sources,
such as broker-dealer quotations. Exchange-traded instruments generally are
valued at the last reported sales price or official closing price on an
exchange, if available. Independent pricing services typically value
non-exchange-traded instruments utilizing a range of market-based inputs and
assumptions. For example, when available, pricing services may utilize inputs
such as benchmark yields, reported trades, broker-dealer quotes, spreads, and
transactions for comparable instruments. In pricing certain instruments, the
pricing services may consider information about an instrument’s issuer or market
activity provided by the Portfolio’s investment adviser or sub-adviser. Pricing
service valuations of non-exchange-traded instruments represent the service’s
good faith opinion as to what the holder of an instrument would receive in an
orderly transaction for an institutional round lot position under current market
conditions. It is possible that these valuations could be materially different
from the value that the Portfolio realizes upon the sale of an instrument.
If
a price cannot be obtained from a pricing service or other pre-approved source,
or if, in the judgment of Nuveen Fund Advisors, a price is unreliable, a
portfolio instrument will be valued at its fair value as determined in good
faith by the Board of Trustees or its appointee. Nuveen Fund Advisors may
determine that a price is unreliable in various circumstances. For example, a
price may be deemed unreliable if it has not changed for an identified period of
time, or has changed from the previous day’s price by more than a threshold
amount, and recent transactions and/or broker dealer price quotations differ
materially from the price in question.
The
Board of Trustees has adopted valuation procedures for the Portfolio and has
appointed the Nuveen Fund Advisors’ Valuation Committee with the day-to-day
responsibility for fair value determinations. All fair value determinations made
by the Valuation Committee are subject to review and ratification by the Board
of Trustees. As a general principle, the fair value of a portfolio instrument is
the amount that an owner might reasonably expect to receive upon the
instrument’s current sale. A range of factors and analysis may be considered
when determining fair value, including relevant market data, interest rates,
credit considerations and/or issuer specific news. However, fair valuation
involves subjective judgments and it is possible that the fair value determined
for a portfolio instrument may be materially different from the value that could
be realized upon the sale of that instrument.
Because
the Portfolio is designed to be a component of a separately managed account that
also invests in individual securities and other investments, its shares may be
purchased or redeemed on a frequent basis for rebalancing purposes, to invest
new monies, or to accommodate reductions in account size. The Portfolio is
managed in a
| |
|
|
Section
3
General Information |
23 |
manner
that is consistent with its role in the separately managed account. Because all
purchase and redemption orders are initiated by Nuveen Asset Management,
separately managed account clients are not in a position to effect purchase or
redemption orders and are, therefore, unable to directly trade in shares of the
Portfolio.
| |
Portfolio
Service Providers |
The
custodian of the assets of the Portfolio is State Street Bank and Trust Company,
One Lincoln Street, Boston, Massachusetts 02111. The custodian also provides
certain accounting services to the Portfolio. The Portfolio’s transfer,
shareholder services and dividend paying agent, DST Asset Manager Solutions,
Inc., P.O. Box 219140, Kansas City, Missouri 64121- 9140, performs bookkeeping,
data processing and administrative services for the maintenance of shareholder
accounts.
| |
|
|
24 |
Section
3
General Information |
Section
4
Financial Highlights
The
financial highlights table is intended to help you understand the Portfolio’s
financial performance for the past five fiscal years. Certain information
reflects financial results for a single Portfolio share. The total returns in
the table represent the rate that an investor would have earned (or lost) on an
investment in the Portfolio. The returns do not reflect any charges that are
imposed by the separately managed accounts. If such charges were reflected, the
returns would be lower. The information has been derived from the Portfolio’s
financial statements, which have been audited by PricewaterhouseCoopers LLP,
whose report for the most recent fiscal year, along with the Portfolio's
financial statements, are included in the annual report, which is available upon
request.
Municipal
Total Return Managed Accounts Portfolio
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
|
Ratios/Supplemental
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
of |
Investment |
|
|
|
|
Net |
Net |
|
|
From |
From |
|
|
|
Ending |
Expenses |
Income
(Loss) |
|
|
|
|
Investment |
Realized/ |
|
|
Net |
Accumulated |
|
|
|
Net |
to
Average |
to
Average |
Portfolio |
|
Year Ended |
Beginning |
Income |
Unrealized |
|
|
Investment |
Net
Realized |
|
Ending |
Total |
Assets |
Net |
Net |
Turnover |
|
July
31: |
NAV |
(Loss)(a) |
Gain
(Loss) |
Total |
|
Income |
Gains |
Total |
NAV |
Return(b) |
(000) |
Assets(c)(d) |
Assets(c) |
Rate(e) |
|
2021 |
$ |
11.71 |
|
$ |
0.33 |
|
$ |
0.24 |
|
$ |
0.57 |
|
|
$ |
(0.33 |
) |
$ |
— |
|
$ |
(0.33 |
) |
$ |
11.95 |
|
4.96 |
% |
$ |
1,631,074 |
0.05 |
% |
2.80 |
% |
7 |
% |
|
2020 |
|
11.50 |
|
|
0.35 |
|
|
0.21 |
|
|
0.56 |
|
|
|
(0.35 |
) |
|
— |
|
|
(0.35 |
) |
|
11.71 |
|
5.00 |
|
|
1,358,883 |
0.12 |
|
3.07 |
|
19 |
|
|
2019 |
|
10.94 |
|
|
0.38 |
|
|
0.56 |
|
|
0.94 |
|
|
|
(0.38 |
) |
|
— |
|
|
(0.38 |
) |
|
11.50 |
|
8.75 |
|
|
1,220,749 |
0.12 |
|
3.41 |
|
20 |
|
|
2018 |
|
11.12 |
|
|
0.38 |
|
|
(0.18 |
) |
|
0.20 |
|
|
|
(0.38 |
) |
|
— |
|
|
(0.38 |
) |
|
10.94 |
|
1.81 |
|
|
958,897 |
0.09 |
|
3.45 |
|
30 |
|
|
2017 |
|
11.46 |
|
|
0.38 |
|
|
(0.35 |
) |
|
0.03 |
|
|
|
(0.37 |
) |
|
— |
|
|
(0.37 |
) |
|
11.12 |
|
0.34 |
|
|
786,210 |
0.05 |
|
3.49 |
|
11 |
|
| |
|
|
|
|
|
|
(a) |
Per
share Net Investment Income (Loss) is calculated using the average daily
shares method. |
|
(b) |
Total
return is the combination of changes in NAV without any sales charge,
reinvested dividend income at NAV and reinvested capital gains
distributions at NAV, if any. Total returns are not
annualized. |
|
(c) |
After
fee waiver and/or expense reimbursement from Nuveen Fund Advisors, where
applicable. |
|
(d) |
The
expense ratios reflect, among other things, the interest expense deemed to
have been paid by the Portfolio on the floating rate certificates issued
by the special purpose trusts for the self-deposited inverse floaters held
by the Portfolio and the interest expense and related fees paid on
borrowings, where applicable. Each Ratio of Expenses to Average Net Assets
includes interest and related expenses for each share class as
follows: |
|
|
|
|
Interest |
|
|
|
and
Related Expenses |
|
|
|
Year
Ended July 31: |
|
|
|
|
|
2021 |
|
0.05 |
% |
|
|
|
2020 |
|
0.12 |
|
|
|
|
2019 |
|
0.12 |
|
|
|
|
2018 |
|
0.09 |
|
|
|
|
2017 |
|
0.05 |
|
|
|
(e) |
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or
sales divided by the average long-term market value during the
period. |
| |
|
|
Section
4
Financial Highlights |
25 |
Nuveen
Managed Accounts Portfolios Trust
Other
Information for Portfolio Shareholders
Several
additional sources of information are available to you, including the codes of
ethics adopted by the Portfolio, Nuveen, LLC, Nuveen Fund Advisors and Nuveen
Asset Management. The
statement of additional
information, incorporated by reference into this prospectus, contains
detailed information on the policies and operation of the Portfolio included in
this prospectus. Additional information about the Portfolio’s investments is
available in the annual and semi-annual reports to shareholders. In the
Portfolio’s annual report, you will find a discussion of the market conditions
and investment strategies that significantly affected the Portfolio’s
performance during its last fiscal year.
The
Portfolio’s most recent statement of additional information, annual and
semi-annual reports and certain other information are available, free of charge,
by calling Nuveen Funds at (800) 257-8787 or through your financial advisor.
Shareholders may call the toll free number above with any inquiries.
You
may also obtain this and other Portfolio information directly from the
Securities and Exchange Commission (“SEC”).
Reports and other information about the Portfolio are available on the EDGAR
Database on the SEC’s website at http://www.sec.gov. You may also request
Portfolio information by sending an e-mail request to [email protected]. The
SEC may charge a copying fee for this information.
Household
Mailings
To
lower costs and eliminate duplicate documents sent to your home, the Portfolio
may mail only one copy of its prospectus supplements, annual and semi-annual
reports, or any other required documents to your household, even if more than
one shareholder lives there. If you would prefer to continue receiving your own
copy of any of these documents, you may call the Portfolio toll-free at (800)
257-8787.
The
Portfolio is a series of Nuveen Managed Accounts Portfolios Trust, whose
Investment Company Act file number is 811-22023.
Distributed
by
Nuveen
Securities, LLC
333
West Wacker Drive
Chicago,
Illinois 60606
(800)
257-8787
www.nuveen.com
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