Nuveen Investment Funds, Inc.
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Fund
Name |
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Class
A |
Class
C |
Class
R6 |
Class
I |
Nuveen
All-American Municipal Bond Fund |
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FLAAX |
FACCX |
FAAWX |
FAARX |
Nuveen
Intermediate Duration Municipal Bond Fund |
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NMBAX |
NNCCX |
— |
NUVBX |
Nuveen
Limited Term Municipal Bond Fund |
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FLTDX |
FAFJX |
— |
FLTRX |
Nuveen
Short Term Municipal Bond Fund |
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FSHAX |
NAAEX |
— |
FSHYX |
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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. |
Prospectus |
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Table
of Contents |
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Section
1 Fund
Summaries
Section
2 How
We Manage Your Money
Section
3 How You
Can Buy and Sell Shares
Section
4 General
Information
Section
5 Financial
Highlights
Appendix—Variations in Sales Charge
Reductions andWaivers
Available Through Certain Intermediaries A-1 |
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NOT
FDIC OR GOVERNMENT INSURED MAY
LOSE VALUE NO
BANK GUARANTEE |
Section
1
Fund Summaries
Nuveen
All-American Municipal Bond Fund
Investment
Objective
The
investment objective of the Fund is to provide you with as high a level of
current interest income exempt from regular federal income taxes as is
consistent with preservation of capital.
Fees
and Expenses of the Fund
The
following tables describe the fees and expenses that you may pay if you buy,
hold and sell shares of the Fund. You may qualify for sales charge discounts if
you and your family invest, or agree to invest in the future, at least $50,000
in the Fund or in other Nuveen mutual funds. More information about these and
other discounts, as well as eligibility requirements for each share class, is
available from your financial advisor and in “How You Can Buy and Sell Shares”
on page 47 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares”
on page S-81 of the Fund’s statement of additional information. In addition,
more information about sales charge discounts and waivers for purchases of
shares through specific financial intermediaries is set forth in the appendix to
the Fund’s prospectus entitled “Variations in Sales Charge Reductions and
Waivers Available Through Certain Intermediaries.”
The
tables and examples below do not reflect any commissions that shareholders may
be required to pay directly to their financial intermediaries when buying or
selling Class I shares.
Shareholder
Fees
(fees
paid directly from your investment)
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Class
A |
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Class
C |
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Class
R6 |
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Class
I |
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Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
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4.20% |
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None |
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None |
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None |
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Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
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None |
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1.00% |
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None |
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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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None |
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None |
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None |
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Exchange
Fee |
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None |
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None |
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None |
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None |
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Annual
Low Balance Account Fee (for accounts under $1,000) |
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$15 |
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$15 |
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None |
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None |
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Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
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Class
A |
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Class
C |
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Class
R6 |
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Class
I |
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Management
Fees |
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0.41 |
% |
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0.41 |
% |
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0.41 |
% |
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0.41 |
% |
Distribution
and/or Service (12b-1) Fees |
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0.20 |
% |
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1.00 |
% |
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0.00 |
% |
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0.00 |
% |
Other
Expenses |
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Interest
and Related Expenses2 |
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0.09 |
% |
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0.09 |
% |
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0.09 |
% |
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0.09 |
% |
Remainder
of Other Expenses |
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0.06 |
% |
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0.06 |
% |
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0.03 |
% |
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0.06 |
% |
Total
Annual Fund Operating Expenses |
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0.76 |
% |
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1.56 |
% |
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0.53 |
% |
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0.56 |
% |
1 The
contingent deferred sales charge on Class C shares applies only to redemptions
within 12 months of purchase.
2 Includes
interest expense and fees paid on Fund borrowings and/or interest and related
expenses from inverse floaters.
Example
The
following example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The example assumes that
you invest $10,000 in the Fund for the time periods indicated and then either
redeem or do not redeem your shares at the end of a period. The example also
assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
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Class
A |
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Class
C |
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Class
R6 |
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Class
I |
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1
Year |
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$ |
494 |
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$ |
159 |
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$ |
54 |
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$ |
57 |
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3
Years |
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$ |
653 |
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$ |
493 |
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$ |
170 |
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$ |
179 |
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5
Years |
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$ |
825 |
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$ |
850 |
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$ |
296 |
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$ |
313 |
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10
Years |
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$ |
1,323 |
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$ |
1,856 |
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$ |
665 |
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$ |
701 |
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2 |
Section
1
Fund Summaries |
Portfolio
Turnover
The
Fund 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 Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was 59%
of the average value of its portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Fund 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.
Regular federal personal income tax is different from, and does not include, the
federal alternative minimum 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 Fund may invest without limit in
securities that generate income subject to the alternative minimum tax on
individuals. For tax years beginning after December 31, 2022, income received
from the Fund’s municipal bonds may affect the federal corporate alternative
minimum tax for certain corporations. The Fund is a long-term bond fund and, as
such, will generally maintain, under normal market conditions, an investment
portfolio with an overall weighted average maturity of greater than 10
years.
Under
normal market conditions, the Fund invests at least 80% of its net assets in
investment grade municipal bonds rated BBB/Baa or higher at the time of purchase
by at least one independent rating agency, or, if unrated, judged by the Fund’s
sub-adviser to be of comparable quality. The Fund may invest up to 20% of its
net assets in below investment grade municipal bonds, commonly referred to as
“high yield” or “junk” bonds.
The
Fund may invest in all types of municipal bonds, including general obligation
bonds, revenue bonds and participation interests in municipal leases. The Fund
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
Fund may invest up to 15% 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 Fund’s investments in inverse floaters are
designed to increase the Fund’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
Fund may utilize the following derivatives: futures contracts; options on
futures contracts; swap agreements, including interest rate swaps, and options
on swap agreements. The Fund may use these derivatives in an attempt to manage
market risk, credit risk and yield curve risk, and to manage the effective
maturity or duration of securities in the Fund’s portfolio.
The
Fund’s sub-adviser uses a value-oriented strategy and looks for higher-yielding
and undervalued municipal bonds that offer 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.
Principal
Risks
The
price and yield of this Fund will change daily. You could lose money by
investing in the Fund. An investment in the Fund 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 Fund listed
below are presented alphabetically to facilitate your ability to find particular
risks and compare them with the risks of other funds. The significance of any
specific risk to an investment in the Fund will vary over time depending on the
composition of the Fund’s portfolio, market conditions and other factors. Each
risk summarized below is considered a "principal risk" of investing in the Fund,
regardless of the order in which it appears.
Active
Management Risk—The
Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the
Fund is subject to the risk that the investment techniques and risk analyses
employed by the Fund’s sub-adviser may not produce the desired results. This
could cause the Fund to lose value or its investment results to lag relevant
benchmarks or other funds with similar objectives.
Alternative
Minimum Tax Risk—The
Fund has no limit as to the amount that can be invested in alternative minimum
tax bonds. Therefore, all or a portion of the Fund’s otherwise exempt-interest
dividends may be taxable to those shareholders
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Section
1
Fund Summaries |
3 |
subject
to the federal alternative minimum tax on individuals. For tax years beginning
after December 31, 2022, exempt-interest dividends may affect the federal
corporate alternative minimum tax for certain corporations.
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding municipal bonds held by the Fund, the
Fund may have to reinvest in securities with lower yields or higher risk of
default, which may adversely impact the Fund’s performance.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a municipal bond may
be, or perceived (whether by market participants, rating agencies, pricing
services or otherwise) to 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 Fund's investments in inverse floaters will increase the
Fund'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 Fund’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 Fund assets, customer
data (including private shareholder information), or proprietary information, or
the risk of an incident occurring that causes the Fund, its investment adviser
or sub-adviser, custodian, transfer agent, distributor or other service
provider, a financial intermediary or the issuers of securities held by the Fund
to suffer a data breach, data corruption or lose operational functionality.
Successful cyber-attacks or other cyber-failures or events affecting the Fund,
its service providers or the issuers of securities held by the Fund may
adversely impact the Fund or its shareholders. Additionally, a cybersecurity
breach could affect the issuers in which the Fund invests, which may cause the
Fund’s investments to lose value.
Derivatives
Risk—The
use of derivatives involves additional risks and transaction costs which could
leave the Fund in a worse position than if it had not used these instruments.
Derivative instruments can be used to acquire or to transfer the risk and
returns of a security or other asset without buying or selling the security or
asset, and the risks associated with investing in such derivatives may be
different and greater than the risks associated with directly investing in the
underlying securities and other instruments, including leverage risk, market
risk, counterparty risk, liquidity risk, operational risk and legal risk. These
instruments may entail investment exposures that are greater than their cost
would suggest. As a result, a small investment in derivatives can result in
losses that greatly exceed the original investment. Derivatives can be highly
volatile, illiquid and difficult to value. An over-the-counter derivative
transaction between the Fund and a counterparty that is not cleared through a
central counterparty also involves the risk that a loss may be sustained as a
result of the failure of the counterparty to the contract to make required
payments. The payment obligation for a cleared derivative transaction is
guaranteed by a central counterparty, which exposes the Fund to the
creditworthiness of the central counterparty.
High
Yield Securities Risk—High
yield securities, which are rated below investment grade and commonly referred
to as “junk” bonds, and unrated securities of comparable quality are high risk
investments that may cause income and principal losses for the Fund. 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, are
more likely to experience a default and have more volatile prices than
investment grade securities.
Income
Risk—The
Fund's income could decline during periods of falling interest rates or when the
Fund experiences defaults on municipal bonds it holds. Also, if the Fund invests
in inverse floaters, the Fund's income may decrease if short-term interest rates
rise.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s municipal bonds will decline
because of rising interest rates. Changing interest rates may have unpredictable
effects on markets, result in heightened market volatility and detract from the
Fund’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 effect of potential government fiscal
policy initiatives and resulting market reaction to those initiatives. Higher
periods of inflation could lead to government fiscal policies which raise
interest rates. 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. The Fund
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4 |
Section
1
Fund Summaries |
is
also subject to the risk that the income generated by its investments may not
keep pace with inflation. There is a risk that interest rates across the
financial system may change, possibly significantly and/or rapidly. In general,
changing interest rates, including rates that fall below zero, or a lack of
market participants may lead to decreased liquidity and increased volatility in
the municipal bond market, making it more difficult for the Fund to sell
municipal bonds. Changes in interest rates may also lead to an increase in Fund
redemptions, which may result in higher portfolio turnover costs, thereby
adversely affecting the Fund’s performance.
Inverse
Floaters Risk—The
use of inverse floaters by the Fund 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 Fund could 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 Fund 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 Fund’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 Fund’s investments
whether or not the Fund 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. Additionally, as inflation
increases, the value of the Fund’s assets can decline.
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 Fund’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 Fund’s ability to
buy or sell bonds. Municipal bonds may also be thinly traded or have a limited
trading market, making it difficult for the Fund to value the bonds accurately.
As a result, the Fund 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 Fund 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. The increased presence of non-traditional participants (such as
proprietary trading desks of investment banks and hedge funds) or the reduced
presence of traditional participants (such as individuals, insurance companies,
banks and life insurance companies) in the municipal markets may lead to greater
volatility in the markets because non-traditional participants may trade more
frequently or in greater volume.
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 Fund may be adversely affected by
local political and economic conditions and developments. The Fund 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 Fund’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 Fund
may be more dependent on the analytical abilities of the Fund’s sub-adviser than
funds that invest in stock or other corporate investments.
Tax
Risk—Income
from municipal bonds held by the Fund 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 and certain derivatives utilized by the Fund may cause the Fund to have
taxable investment income.
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Section
1
Fund Summaries |
5 |
Unrated
Bond Risk—Unrated
municipal bonds determined by the Fund’s sub-adviser to be of comparable quality
to rated municipal bonds which the Fund 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.
Valuation
Risk—The
sales price the Fund could receive for any particular municipal bond may differ
from the Fund’s valuation of the investment, particularly for securities that
trade in thin or volatile markets or that are valued using a fair value
methodology. The municipal bonds in which the Fund invests typically are valued
by a pricing service utilizing a range of market-based inputs and assumptions,
including price quotations obtained from broker-dealers making markets in such
instruments, cash flows and transactions for comparable instruments. There is no
assurance that the Fund will be able to buy or sell a portfolio security at the
price established by the pricing service, which could result in a gain or loss
to the Fund. 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. Over certain time periods, such differences could materially impact the
performance of the Fund, which may not be sustainable. Alternative 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 Fund were to change pricing services, or if the
Fund’s pricing service were to change its valuation methodology, there could be
a material impact, either positive or negative, on the Fund’s net asset
value.
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 Fund could be forced to liquidate securities at an inopportune time in order
to generate cash to distribute to shareholders as required by tax
laws.
Fund
Performance
The
following bar chart and table provide some indication of the potential risks of
investing in the Fund. The Fund’s past performance (before and after taxes) is
not necessarily an indication of how the Fund will perform in the future.
Updated performance information is available at www.nuveen.com/performance or by
calling (800) 257-8787.
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6 |
Section
1
Fund Summaries |
The
bar chart below shows the variability of the Fund’s performance from year to
year for Class A shares. The bar chart and highest/lowest quarterly returns that
follow do not reflect sales charges, and if these charges were reflected, the
returns would be less than those shown.
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Class
A Annual Total Return* |
*Class
A year-to-date total return as of June 30, 2024 was 1.51%. The
performance of the other share classes will differ due to their different
expense structures.
During
the ten-year period ended December 31, 2023, the Fund’s highest and lowest
quarterly returns were 7.02%
and
-9.20%, respectively, for the quarters ended December 31, 2023 and March 31,
2022.
The
table below shows the variability of the Fund’s average annual returns and how
they compare over the time periods indicated with those of a broad measure of
market performance and an index of funds with similar investment objectives. 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. After-tax returns are shown for Class A shares only; after-tax returns
for other share classes will vary. Your own actual after-tax returns will depend
on your specific tax situation and may differ from what is shown here.
Both
the bar chart and the table assume that all distributions have been reinvested.
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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Average
Annual Total Returns |
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for
the Periods Ended |
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December
31, 2023 |
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Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
C) |
Since
Inception
(Class
R6) |
Class
A (return before taxes) |
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10/3/88 |
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1.99 |
% |
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0.34 |
% |
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2.68 |
% |
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N/A |
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N/A |
|
Class
A (return after taxes on distributions) |
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1.99 |
% |
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0.34 |
% |
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2.67 |
% |
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N/A |
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N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
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2.62 |
% |
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1.02 |
% |
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2.90 |
% |
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N/A |
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N/A |
|
Class
C (return before taxes) |
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2/10/14 |
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5.68 |
% |
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0.40 |
% |
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N/A |
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2.17 |
% |
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N/A |
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Class
R6 (return before taxes) |
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6/30/16 |
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6.72 |
% |
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1.43 |
% |
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N/A |
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N/A |
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1.43
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% |
Class
I (return before taxes) |
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2/6/97 |
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6.72 |
% |
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1.41 |
% |
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3.32 |
% |
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N/A |
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N/A |
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S&P
Municipal Bond Index1 |
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(reflects
no deduction for fees, expenses or taxes) |
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6.03 |
% |
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2.24 |
% |
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3.06 |
% |
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2.85 |
% |
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1.85 |
% |
Lipper
General & Insured Municipal Debt Funds Classification
Average2 |
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|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
6.51 |
% |
|
1.84 |
% |
|
2.83 |
% |
|
2.60 |
% |
|
1.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of the tax-exempt U.S. municipal
bond market. |
2 |
Represents
the average annualized total return for all reporting funds in the Lipper
General & Insured Municipal Debt Funds
Classification. |
|
|
Section
1
Fund Summaries |
7 |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
Timothy
T. Ryan, CFA |
Managing
Director |
November
2016 |
Paul
L. Brennan, CFA |
Managing
Director |
April
2023 |
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund directly from the Fund (for
certain share classes) or through a financial advisor or other financial
intermediary on any day that the New York Stock Exchange (“NYSE”)
or its affiliated exchanges, NYSE Arca Equities or NYSE American, are open for
trading. The Fund’s initial and subsequent investment minimums generally are as
follows, although certain financial intermediaries may impose their own
investment minimums and the Fund may reduce or waive the minimums in some
cases:
|
|
|
|
|
Class
A and Class C |
Class
R6 |
Class
I |
Eligibility
and Minimum Initial Investment |
Available
only through certain financial intermediaries or, for Class A, by
contacting the Fund directly as described in the prospectus.
$2,500
for all accounts |
Available
only to certain investors as described in the prospectus and through
fee-based programs.
$1
million for all accounts except:
• $1,000
for clients of financial intermediaries who charge such clients an ongoing
fee for advisory, investment, consulting or related services.
|
Available
only through fee-based programs and to other limited categories of
investors as described in the prospectus.
$100,000
for all accounts except:
• $250
for clients of financial intermediaries and family offices that have
accounts holding Class I shares with an aggregate value of at least
$100,000 (or that are expected to reach this level).
• No
minimum for certain other categories of eligible investors as described in
the prospectus. |
Minimum Additional Investment |
$100 |
No
minimum. |
No
minimum. |
Tax
Information
The
Fund 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 and state and local taxes on
individuals. For tax years beginning after December 31, 2022, exempt-interest
dividends may affect the federal corporate alternative minimum tax for certain
corporations. In addition, a portion of the Fund's distributions may be subject
to regular federal and state income taxes.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or financial advisor), the Fund, its distributor or
its investment adviser may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask your financial
advisor or visit your financial intermediary’s website for more
information.
|
|
8 |
Section
1
Fund Summaries |
Nuveen
Intermediate Duration Municipal Bond Fund
Investment
Objective
The
investment objective of the Fund is to provide you with as high a level of
current interest income exempt from regular federal income taxes as is
consistent with preservation of capital.
Fees
and Expenses of the Fund
The
following tables describe the fees and expenses that you may pay if you buy,
hold and sell shares of the Fund. You may qualify for sales charge discounts if
you and your family invest, or agree to invest in the future, at least $50,000
in the Fund or in other Nuveen mutual funds. More information about these and
other discounts, as well as eligibility requirements for each share class, is
available from your financial advisor and in “How You Can Buy and Sell Shares”
on page 47 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares”
on page S-81 of the Fund’s statement of additional information. In addition,
more information about sales charge discounts and waivers for purchases of
shares through specific financial intermediaries is set forth in the appendix to
the Fund’s prospectus entitled “Variations in Sales Charge Reductions and
Waivers Available Through Certain Intermediaries.”
The
tables and examples below do not reflect any commissions that shareholders may
be required to pay directly to their financial intermediaries when buying or
selling Class I shares.
Shareholder
Fees
(fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
|
|
3.00% |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
|
|
None |
|
1.00% |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
None |
|
None |
|
None |
|
Exchange
Fee |
|
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000) |
|
|
$15 |
|
$15 |
|
None |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
Management
Fees |
|
|
|
|
0.39 |
% |
|
0.39 |
% |
|
0.39 |
% |
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
0.20 |
% |
|
1.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
|
|
|
0.06 |
% |
|
0.06 |
% |
|
0.06 |
% |
Total
Annual Fund Operating Expenses |
|
|
|
|
0.65 |
% |
|
1.45 |
% |
|
0.45 |
% |
1 The
contingent deferred sales charge on Class C shares applies only to redemptions
within 12 months of purchase.
Example
The
following example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The example assumes that
you invest $10,000 in the Fund 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 and that the Fund’s
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
1
Year |
|
|
|
$ |
364 |
|
$ |
148 |
|
$ |
46 |
|
3
Years |
|
|
|
$ |
502 |
|
$ |
459 |
|
$ |
144 |
|
5
Years |
|
|
|
$ |
651 |
|
$ |
792 |
|
$ |
252 |
|
10
Years |
|
|
|
$ |
1,086 |
|
$ |
1,735 |
|
$ |
567 |
|
Portfolio
Turnover
The
Fund 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 Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example,
|
|
Section
1
Fund Summaries |
9 |
affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 24% of the average value of its portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Fund 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.
Regular federal personal income tax is different from, and does not include, the
federal alternative minimum 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 Fund may invest without limit in
securities that generate income subject to the alternative minimum tax on
individuals. For tax years beginning after December 31, 2022, income received
from the Fund’s municipal bonds may affect the federal corporate alternative
minimum tax for certain corporations. Under normal market conditions, the Fund
maintains a weighted average effective duration of between 3 and 10 years, and
expects to generally maintain a weighted average effective duration of between
4.5 and 7 years.
Under
normal market conditions, the Fund invests at least 80% of its net assets in
investment grade municipal bonds rated BBB/Baa or higher at the time of purchase
by at least one independent rating agency, or, if unrated, judged by the Fund’s
sub-adviser to be of comparable quality. The Fund may invest up to 20% of its
net assets in below investment grade municipal bonds, commonly referred to as
“high yield” or “junk” bonds.
The
Fund may invest in all types of municipal bonds, including general obligation
bonds, revenue bonds and participation interests in municipal leases. The Fund
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
Fund may invest up to 15% 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 Fund’s investments in inverse floaters are
designed to increase the Fund’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
Fund may utilize the following derivatives: futures contracts; options on
futures contracts; swap agreements, including interest rate swaps, and options
on swap agreements. The Fund may use these derivatives in an attempt to manage
market risk, credit risk and yield curve risk, and to manage the effective
maturity or duration of securities in the Fund’s portfolio.
The
Fund’s sub-adviser uses a value-oriented strategy and looks for higher-yielding
and undervalued municipal bonds that offer 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.
Principal
Risks
The
price and yield of this Fund will change daily. You could lose money by
investing in the Fund. An investment in the Fund 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 Fund listed
below are presented alphabetically to facilitate your ability to find particular
risks and compare them with the risks of other funds. The significance of any
specific risk to an investment in the Fund will vary over time depending on the
composition of the Fund’s portfolio, market conditions and other factors. Each
risk summarized below is considered a "principal risk" of investing in the Fund,
regardless of the order in which it appears.
Active
Management Risk—The
Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the
Fund is subject to the risk that the investment techniques and risk analyses
employed by the Fund’s sub-adviser may not produce the desired results. This
could cause the Fund to lose value or its investment results to lag relevant
benchmarks or other funds with similar objectives.
Alternative
Minimum Tax Risk—The
Fund has no limit as to the amount that can be invested in alternative minimum
tax bonds. Therefore, all or a portion of the Fund’s otherwise exempt-interest
dividends may be taxable to those shareholders subject to the federal
alternative minimum tax on individuals. For tax years beginning after December
31, 2022, exempt-interest dividends may affect the federal corporate alternative
minimum tax for certain corporations.
|
|
10 |
Section
1
Fund Summaries |
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding municipal bonds held by the Fund, the
Fund may have to reinvest in securities with lower yields or higher risk of
default, which may adversely impact the Fund’s performance.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a municipal bond may
be, or perceived (whether by market participants, rating agencies, pricing
services or otherwise) to 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 Fund's investments in inverse floaters will increase the
Fund'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 Fund’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 Fund assets, customer
data (including private shareholder information), or proprietary information, or
the risk of an incident occurring that causes the Fund, its investment adviser
or sub-adviser, custodian, transfer agent, distributor or other service
provider, a financial intermediary or the issuers of securities held by the Fund
to suffer a data breach, data corruption or lose operational functionality.
Successful cyber-attacks or other cyber-failures or events affecting the Fund,
its service providers or the issuers of securities held by the Fund may
adversely impact the Fund or its shareholders. Additionally, a cybersecurity
breach could affect the issuers in which the Fund invests, which may cause the
Fund’s investments to lose value.
Derivatives
Risk—The
use of derivatives involves additional risks and transaction costs which could
leave the Fund in a worse position than if it had not used these instruments.
Derivative instruments can be used to acquire or to transfer the risk and
returns of a security or other asset without buying or selling the security or
asset, and the risks associated with investing in such derivatives may be
different and greater than the risks associated with directly investing in the
underlying securities and other instruments, including leverage risk, market
risk, counterparty risk, liquidity risk, operational risk and legal risk. These
instruments may entail investment exposures that are greater than their cost
would suggest. As a result, a small investment in derivatives can result in
losses that greatly exceed the original investment. Derivatives can be highly
volatile, illiquid and difficult to value. An over-the-counter derivative
transaction between the Fund and a counterparty that is not cleared through a
central counterparty also involves the risk that a loss may be sustained as a
result of the failure of the counterparty to the contract to make required
payments. The payment obligation for a cleared derivative transaction is
guaranteed by a central counterparty, which exposes the Fund to the
creditworthiness of the central counterparty.
High
Yield Securities Risk—High
yield securities, which are rated below investment grade and commonly referred
to as “junk” bonds, and unrated securities of comparable quality are high risk
investments that may cause income and principal losses for the Fund. 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, are
more likely to experience a default and have more volatile prices than
investment grade securities.
Income
Risk—The
Fund's income could decline during periods of falling interest rates or when the
Fund experiences defaults on municipal bonds it holds. Income risk is generally
higher for limited-term bonds so investors may experience a fluctuation in the
monthly income from the Fund. Also, if the Fund invests in inverse floaters, the
Fund's income may decrease if short-term interest rates rise.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s municipal bonds will decline
because of rising interest rates. Changing interest rates may have unpredictable
effects on markets, result in heightened market volatility and detract from the
Fund’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 effect of potential government fiscal
policy initiatives and resulting market reaction to those initiatives. Higher
periods of inflation could lead to government fiscal policies which raise
interest rates. 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. The Fund
is also subject to the risk that the income generated by its investments may not
keep pace with inflation. There is a risk
|
|
Section
1
Fund Summaries |
11 |
that
interest rates across the financial system may change, possibly significantly
and/or rapidly. In general, changing interest rates, including rates that fall
below zero, or a lack of market participants may lead to decreased liquidity and
increased volatility in the municipal bond market, making it more difficult for
the Fund to sell municipal bonds. Changes in interest rates may also lead to an
increase in Fund redemptions, which may result in higher portfolio turnover
costs, thereby adversely affecting the Fund’s performance.
Inverse
Floaters Risk—The
use of inverse floaters by the Fund 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 Fund could 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 Fund 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 Fund’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 Fund’s investments
whether or not the Fund 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. Additionally, as inflation
increases, the value of the Fund’s assets can decline.
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 Fund’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 Fund’s ability to
buy or sell bonds. Municipal bonds may also be thinly traded or have a limited
trading market, making it difficult for the Fund to value the bonds accurately.
As a result, the Fund 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 Fund 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. The increased presence of non-traditional participants (such as
proprietary trading desks of investment banks and hedge funds) or the reduced
presence of traditional participants (such as individuals, insurance companies,
banks and life insurance companies) in the municipal markets may lead to greater
volatility in the markets because non-traditional participants may trade more
frequently or in greater volume.
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 Fund may be adversely affected by
local political and economic conditions and developments. The Fund 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 Fund’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 Fund
may be more dependent on the analytical abilities of the Fund’s sub-adviser than
funds that invest in stock or other corporate investments.
Tax
Risk—Income
from municipal bonds held by the Fund 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 and certain derivatives utilized by the Fund may cause the Fund to have
taxable investment income.
Unrated
Bond Risk—Unrated
municipal bonds determined by the Fund’s sub-adviser to be of comparable quality
to rated municipal bonds which the Fund may purchase may pay a higher interest
rate than such rated municipal bonds and
|
|
12 |
Section
1
Fund Summaries |
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.
Valuation
Risk—The
sales price the Fund could receive for any particular municipal bond may differ
from the Fund’s valuation of the investment, particularly for securities that
trade in thin or volatile markets or that are valued using a fair value
methodology. The municipal bonds in which the Fund invests typically are valued
by a pricing service utilizing a range of market-based inputs and assumptions,
including price quotations obtained from broker-dealers making markets in such
instruments, cash flows and transactions for comparable instruments. There is no
assurance that the Fund will be able to buy or sell a portfolio security at the
price established by the pricing service, which could result in a gain or loss
to the Fund. 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. Over certain time periods, such differences could materially impact the
performance of the Fund, which may not be sustainable. Alternative 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 Fund were to change pricing services, or if the
Fund’s pricing service were to change its valuation methodology, there could be
a material impact, either positive or negative, on the Fund’s net asset
value.
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 Fund could be forced to liquidate securities at an inopportune time in order
to generate cash to distribute to shareholders as required by tax
laws.
Fund
Performance
The
following bar chart and table provide some indication of the potential risks of
investing in the Fund. The Fund’s past performance (before and after taxes) is
not necessarily an indication of how the Fund will perform in the future.
Updated performance information is available at www.nuveen.com/performance or by
calling (800) 257-8787.
The
bar chart below shows the variability of the Fund’s performance from year to
year for Class A shares. The bar chart and highest/lowest quarterly returns that
follow do not reflect sales charges, and if these charges were reflected, the
returns would be less than those shown.
|
Class
A Annual Total Return* |
*Class
A year-to-date total return as of June 30, 2024 was 1.23%. The
performance of the other share classes will differ due to their different
expense structures.
During
the ten-year period ended December 31, 2023, the Fund’s highest and lowest
quarterly returns were 6.08%
and
-5.50%, respectively, for the quarters ended December 31, 2023 and March 31,
2022.
|
|
Section
1
Fund Summaries |
13 |
The
table below shows the variability of the Fund’s average annual returns and how
they compare over the time periods indicated with those of a broad measure of
market performance and an index of funds with similar investment objectives. In
accordance with new regulatory requirements, the Fund has selected the S&P
Municipal Bond Index, which represents a broad measure of market performance,
and is generally representative of the market sectors or types of investments in
which the Fund invests. 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. After-tax returns are shown for
Class A shares only; after-tax returns for other share classes will vary. Your
own actual after-tax returns will depend on your specific tax situation and may
differ from what is shown here.
Both
the bar chart and the table assume that all distributions have been reinvested.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
|
|
|
|
for
the Periods Ended |
|
|
|
|
|
December
31, 2023 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
C) |
Class
A (return before taxes) |
|
6/13/95 |
|
|
2.32 |
% |
|
1.25 |
% |
|
2.30 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
2.31 |
% |
|
1.25 |
% |
|
2.29 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
2.43 |
% |
|
1.50 |
% |
|
2.37 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
2/10/14 |
|
|
4.68 |
% |
|
1.05 |
% |
|
N/A |
|
|
1.76 |
% |
Class
I (return before taxes) |
|
11/29/76 |
|
|
5.83 |
% |
|
2.09 |
% |
|
2.81 |
% |
|
N/A |
|
S&P
Municipal Bond Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
6.03 |
% |
|
2.24 |
% |
|
3.06 |
% |
|
2.85 |
% |
S&P
Municipal Bond Intermediate Index2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
5.26 |
% |
|
2.25 |
% |
|
2.78 |
% |
|
2.61 |
% |
Lipper
Intermediate Municipal Debt Funds Classification Average3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
5.52 |
% |
|
1.93 |
% |
|
2.28 |
% |
|
2.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of the tax-exempt U.S. municipal
bond market. |
2 |
An
index containing bonds in the S&P Municipal Bond Index that mature
between 3 and 15 years. |
3 |
Represents
the average annualized total return for all reporting funds in the Lipper
Intermediate Municipal Debt Funds
Classification. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
Paul
L. Brennan, CFA |
Managing
Director |
December
2007 |
Stephen
J. Candido, CFA |
Managing
Director |
December
2020 |
|
|
14 |
Section
1
Fund Summaries |
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund directly from the Fund (for
certain share classes) or through a financial advisor or other financial
intermediary on any day that the New York Stock Exchange (“NYSE”)
or its affiliated exchanges, NYSE Arca Equities or NYSE American, are open for
trading. The Fund’s initial and subsequent investment minimums generally are as
follows, although certain financial intermediaries may impose their own
investment minimums and the Fund may reduce or waive the minimums in some
cases:
|
|
|
|
|
Class
A and Class C |
|
Class
I |
Eligibility
and Minimum Initial Investment |
Available
only through certain financial intermediaries or, for Class A, by
contacting the Fund directly as described in the prospectus.
$2,500
for all accounts |
|
Available
only through fee-based programs and to other limited categories of
investors as described in the prospectus.
$100,000
for all accounts except:
• $250
for clients of financial intermediaries and family offices that have
accounts holding Class I shares with an aggregate value of at least
$100,000 (or that are expected to reach this level).
• No
minimum for certain other categories of eligible investors as described in
the prospectus. |
Minimum
Additional Investment |
$100 |
|
No
minimum. |
Tax
Information
The
Fund 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 and state and local taxes on
individuals. For tax years beginning after December 31, 2022, exempt-interest
dividends may affect the federal corporate alternative minimum tax for certain
corporations. In addition, a portion of the Fund's distributions may be subject
to regular federal and state income taxes.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or financial advisor), the Fund, its distributor or
its investment adviser may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask your financial
advisor or visit your financial intermediary’s website for more
information.
|
|
Section
1
Fund Summaries |
15 |
Nuveen
Limited Term Municipal Bond Fund
Investment
Objective
The
investment objective of the Fund is to provide you with as high a level of
current interest income exempt from regular federal income taxes as is
consistent with preservation of capital.
Fees
and Expenses of the Fund
The
following tables describe the fees and expenses that you may pay if you buy,
hold and sell shares of the Fund. You may qualify for sales charge discounts if
you and your family invest, or agree to invest in the future, at least $50,000
in the Fund or in other Nuveen mutual funds. More information about these and
other discounts, as well as eligibility requirements for each share class, is
available from your financial advisor and in “How You Can Buy and Sell Shares”
on page 47 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares”
on page S-81 of the Fund’s statement of additional information. In addition,
more information about sales charge discounts and waivers for purchases of
shares through specific financial intermediaries is set forth in the appendix to
the Fund’s prospectus entitled “Variations in Sales Charge Reductions and
Waivers Available Through Certain Intermediaries.”
The
tables and examples below do not reflect any commissions that shareholders may
be required to pay directly to their financial intermediaries when buying or
selling Class I shares.
Shareholder
Fees
(fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
|
|
2.50% |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
|
|
None |
|
1.00% |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
None |
|
None |
|
None |
|
Exchange
Fee |
|
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000) |
|
|
$15 |
|
$15 |
|
None |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
Management
Fees |
|
|
|
|
0.34 |
% |
|
0.34 |
% |
|
0.34 |
% |
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
0.20 |
% |
|
1.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
|
|
|
0.09 |
% |
|
0.09 |
% |
|
0.09 |
% |
Total
Annual Fund Operating Expenses |
|
|
|
|
0.63 |
% |
|
1.43 |
% |
|
0.43 |
% |
1 The
contingent deferred sales charge on Class C shares applies only to redemptions
within 12 months of purchase.
Example
The
following example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The example assumes that
you invest $10,000 in the Fund 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 and that the Fund's
operating expenses remain the same. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
1
Year |
|
|
|
$ |
313 |
|
$ |
146 |
|
$ |
44 |
|
3
Years |
|
|
|
$ |
447 |
|
$ |
452 |
|
$ |
138 |
|
5
Years |
|
|
|
$ |
592 |
|
$ |
782 |
|
$ |
241 |
|
10
Years |
|
|
|
$ |
1,017 |
|
$ |
1,713 |
|
$ |
542 |
|
Portfolio
Turnover
The
Fund 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 Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example,
|
|
16 |
Section
1
Fund Summaries |
affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 22% of the average value of its portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Fund 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.
Regular federal personal income tax is different from, and does not include, the
federal alternative minimum 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 Fund may invest without limit in
securities that generate income subject to the alternative minimum tax on
individuals. For tax years beginning after December 31, 2022, income received
from the Fund’s municipal bonds may affect the federal corporate alternative
minimum tax for certain corporations. The Fund generally invests in bonds with
short-to intermediate-term maturities. The Fund will attempt to maintain the
weighted average maturity of its portfolio securities at three to seven years
under normal market conditions.
Under
normal market conditions, the Fund invests at least 80% of its net assets in
investment grade municipal bonds rated BBB/Baa or higher at the time of purchase
by at least one independent rating agency, or, if unrated, judged by the Fund’s
sub-adviser to be of comparable quality. The Fund may invest up to 20% of its
net assets in below investment grade municipal bonds, commonly referred to as
“high yield” or “junk” bonds.
The
Fund may invest in all types of municipal bonds, including general obligation
bonds, revenue bonds and participation interests in municipal leases. The Fund
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
Fund may invest up to 15% 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 Fund’s investments in inverse floaters are
designed to increase the Fund’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
Fund may utilize the following derivatives: futures contracts; options on
futures contracts; swap agreements, including interest rate swaps, and options
on swap agreements. The Fund may use these derivatives in an attempt to manage
market risk, credit risk and yield curve risk, and to manage the effective
maturity or duration of securities in the Fund’s portfolio.
The
Fund’s sub-adviser uses a value-oriented strategy and looks for higher-yielding
and undervalued municipal bonds that offer 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.
Principal
Risks
The
price and yield of this Fund will change daily. You could lose money by
investing in the Fund. An investment in the Fund 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 Fund listed
below are presented alphabetically to facilitate your ability to find particular
risks and compare them with the risks of other funds. The significance of any
specific risk to an investment in the Fund will vary over time depending on the
composition of the Fund’s portfolio, market conditions and other factors. Each
risk summarized below is considered a "principal risk" of investing in the Fund,
regardless of the order in which it appears.
Active
Management Risk—The
Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the
Fund is subject to the risk that the investment techniques and risk analyses
employed by the Fund’s sub-adviser may not produce the desired results. This
could cause the Fund to lose value or its investment results to lag relevant
benchmarks or other funds with similar objectives.
Alternative
Minimum Tax Risk—The
Fund has no limit as to the amount that can be invested in alternative minimum
tax bonds. Therefore, all or a portion of the Fund’s otherwise exempt-interest
dividends may be taxable to those shareholders subject to the federal
alternative minimum tax on individuals. For tax years beginning after December
31, 2022, exempt-interest dividends may affect the federal corporate alternative
minimum tax for certain corporations.
|
|
Section
1
Fund Summaries |
17 |
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding municipal bonds held by the Fund, the
Fund may have to reinvest in securities with lower yields or higher risk of
default, which may adversely impact the Fund’s performance.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a municipal bond may
be, or perceived (whether by market participants, rating agencies, pricing
services or otherwise) to 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 Fund's investments in inverse floaters will increase the
Fund'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 Fund’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 Fund assets, customer
data (including private shareholder information), or proprietary information, or
the risk of an incident occurring that causes the Fund, its investment adviser
or sub-adviser, custodian, transfer agent, distributor or other service
provider, a financial intermediary or the issuers of securities held by the Fund
to suffer a data breach, data corruption or lose operational functionality.
Successful cyber-attacks or other cyber-failures or events affecting the Fund,
its service providers or the issuers of securities held by the Fund may
adversely impact the Fund or its shareholders. Additionally, a cybersecurity
breach could affect the issuers in which the Fund invests, which may cause the
Fund’s investments to lose value.
Derivatives
Risk—The
use of derivatives involves additional risks and transaction costs which could
leave the Fund in a worse position than if it had not used these instruments.
Derivative instruments can be used to acquire or to transfer the risk and
returns of a security or other asset without buying or selling the security or
asset, and the risks associated with investing in such derivatives may be
different and greater than the risks associated with directly investing in the
underlying securities and other instruments, including leverage risk, market
risk, counterparty risk, liquidity risk, operational risk and legal risk. These
instruments may entail investment exposures that are greater than their cost
would suggest. As a result, a small investment in derivatives can result in
losses that greatly exceed the original investment. Derivatives can be highly
volatile, illiquid and difficult to value. An over-the-counter derivative
transaction between the Fund and a counterparty that is not cleared through a
central counterparty also involves the risk that a loss may be sustained as a
result of the failure of the counterparty to the contract to make required
payments. The payment obligation for a cleared derivative transaction is
guaranteed by a central counterparty, which exposes the Fund to the
creditworthiness of the central counterparty.
High
Yield Securities Risk—High
yield securities, which are rated below investment grade and commonly referred
to as “junk” bonds, and unrated securities of comparable quality are high risk
investments that may cause income and principal losses for the Fund. 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, are
more likely to experience a default and have more volatile prices than
investment grade securities.
Income
Risk—The
Fund's income could decline during periods of falling interest rates or when the
Fund experiences defaults on municipal bonds it holds. Income risk is generally
higher for limited-term bonds so investors may experience a fluctuation in the
monthly income from the Fund. Also, if the Fund invests in inverse floaters, the
Fund's income may decrease if short-term interest rates rise.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s municipal bonds will decline
because of rising interest rates. Changing interest rates may have unpredictable
effects on markets, result in heightened market volatility and detract from the
Fund’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 effect of potential government fiscal
policy initiatives and resulting market reaction to those initiatives. Higher
periods of inflation could lead to government fiscal policies which raise
interest rates. 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. The Fund
is also subject to the risk that the income generated by its investments may not
keep pace with inflation. There is a risk
|
|
18 |
Section
1
Fund Summaries |
that
interest rates across the financial system may change, possibly significantly
and/or rapidly. In general, changing interest rates, including rates that fall
below zero, or a lack of market participants may lead to decreased liquidity and
increased volatility in the municipal bond market, making it more difficult for
the Fund to sell municipal bonds. Changes in interest rates may also lead to an
increase in Fund redemptions, which may result in higher portfolio turnover
costs, thereby adversely affecting the Fund’s performance.
Inverse
Floaters Risk—The
use of inverse floaters by the Fund 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 Fund could 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 Fund 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 Fund’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 Fund’s investments
whether or not the Fund 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. Additionally, as inflation
increases, the value of the Fund’s assets can decline.
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 Fund’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 Fund’s ability to
buy or sell bonds. Municipal bonds may also be thinly traded or have a limited
trading market, making it difficult for the Fund to value the bonds accurately.
As a result, the Fund 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 Fund 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. The increased presence of non-traditional participants (such as
proprietary trading desks of investment banks and hedge funds) or the reduced
presence of traditional participants (such as individuals, insurance companies,
banks and life insurance companies) in the municipal markets may lead to greater
volatility in the markets because non-traditional participants may trade more
frequently or in greater volume.
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 Fund may be adversely affected by
local political and economic conditions and developments. The Fund 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 Fund’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 Fund
may be more dependent on the analytical abilities of the Fund’s sub-adviser than
funds that invest in stock or other corporate investments.
Tax
Risk—Income
from municipal bonds held by the Fund 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 and certain derivatives utilized by the Fund may cause the Fund to have
taxable investment income.
Unrated
Bond Risk—Unrated
municipal bonds determined by the Fund’s sub-adviser to be of comparable quality
to rated municipal bonds which the Fund may purchase may pay a higher interest
rate than such rated municipal bonds and
|
|
Section
1
Fund Summaries |
19 |
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.
Valuation
Risk—The
sales price the Fund could receive for any particular municipal bond may differ
from the Fund’s valuation of the investment, particularly for securities that
trade in thin or volatile markets or that are valued using a fair value
methodology. The municipal bonds in which the Fund invests typically are valued
by a pricing service utilizing a range of market-based inputs and assumptions,
including price quotations obtained from broker-dealers making markets in such
instruments, cash flows and transactions for comparable instruments. There is no
assurance that the Fund will be able to buy or sell a portfolio security at the
price established by the pricing service, which could result in a gain or loss
to the Fund. 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. Over certain time periods, such differences could materially impact the
performance of the Fund, which may not be sustainable. Alternative 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 Fund were to change pricing services, or if the
Fund’s pricing service were to change its valuation methodology, there could be
a material impact, either positive or negative, on the Fund’s net asset
value.
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 Fund could be forced to liquidate securities at an inopportune time in order
to generate cash to distribute to shareholders as required by tax
laws.
Fund
Performance
The
following bar chart and table provide some indication of the potential risks of
investing in the Fund. The Fund’s past performance (before and after taxes) is
not necessarily an indication of how the Fund will perform in the future.
Updated performance information is available at www.nuveen.com/performance or by
calling (800) 257-8787.
The
bar chart below shows the variability of the Fund’s performance from year to
year for Class A shares. The bar chart and highest/lowest quarterly returns that
follow do not reflect sales charges, and if these charges were reflected, the
returns would be less than those shown.
|
Class
A Annual Total Return* |
*Class
A year-to-date total return as of June 30, 2024 was 1.27%. The
performance of the other share classes will differ due to their different
expense structures.
During
the ten-year period ended December 31, 2023, the Fund’s highest and lowest
quarterly returns were 4.15%
and
-3.66%, respectively, for the quarters ended December 31, 2023 and March 31,
2022.
|
|
20 |
Section
1
Fund Summaries |
The
table below shows the variability of the Fund’s average annual returns and how
they compare over the time periods indicated with those of a broad measure of
market performance and an index of funds with similar investment objectives. In
accordance with new regulatory requirements, the Fund has selected the S&P
Municipal Bond Index, which represents a broad measure of market performance,
and is generally representative of the market sectors or types of investments in
which the Fund invests. 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. After-tax returns are shown for
Class A shares only; after-tax returns for other share classes will vary. Your
own actual after-tax returns will depend on your specific tax situation and may
differ from what is shown here.
Both
the bar chart and the table assume that all distributions have been reinvested.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
|
|
|
|
for
the Periods Ended |
|
|
|
|
|
December
31, 2023 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
C) |
Class
A (return before taxes) |
|
10/19/87 |
|
|
1.42 |
% |
|
1.21 |
% |
|
1.45 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
1.41 |
% |
|
1.21 |
% |
|
1.45 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
1.62 |
% |
|
1.30 |
% |
|
1.51 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
2/10/14 |
|
|
3.25 |
% |
|
0.92 |
% |
|
N/A |
|
|
1.00 |
% |
Class
I (return before taxes) |
|
2/6/97 |
|
|
4.30 |
% |
|
1.94 |
% |
|
1.92 |
% |
|
N/A |
|
S&P
Municipal Bond Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
6.03 |
% |
|
2.24 |
% |
|
3.06 |
% |
|
2.85 |
% |
S&P
Municipal Bond Short-Intermediate Index2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
3.92 |
% |
|
1.69 |
% |
|
1.77 |
% |
|
1.68 |
% |
Lipper
Short-Intermediate Municipal Debt Funds Classification Average3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
3.99 |
% |
|
1.36 |
% |
|
1.39 |
% |
|
1.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of the tax-exempt U.S. municipal
bond market. |
2 |
An
index containing bonds in the S&P Municipal Bond Index that mature
between 1 and 8 years. |
3 |
Represents
the average annualized total return for all reporting funds in the Lipper
Short-Intermediate Municipal Debt Funds
Classification. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
Paul
L. Brennan, CFA |
Managing
Director |
August
2006 |
|
Steven
M. Hlavin |
Managing
Director |
October
2023 |
|
|
|
Section
1
Fund Summaries |
21 |
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund directly from the Fund (for
certain share classes) or through a financial advisor or other financial
intermediary on any day that the New York Stock Exchange (“NYSE”)
or its affiliated exchanges, NYSE Arca Equities or NYSE American, are open for
trading. The Fund’s initial and subsequent investment minimums generally are as
follows, although certain financial intermediaries may impose their own
investment minimums and the Fund may reduce or waive the minimums in some
cases:
|
|
|
|
|
Class
A and Class C |
|
Class
I |
Eligibility
and Minimum Initial Investment |
Available
only through certain financial intermediaries or, for Class A, by
contacting the Fund directly as described in the prospectus.
$2,500
for all accounts |
|
Available
only through fee-based programs and to other limited categories of
investors as described in the prospectus.
$100,000
for all accounts except:
• $250
for clients of financial intermediaries and family offices that have
accounts holding Class I shares with an aggregate value of at least
$100,000 (or that are expected to reach this level).
• No
minimum for certain other categories of eligible investors as described in
the prospectus. |
Minimum
Additional Investment |
$100 |
|
No
minimum. |
Tax
Information
The
Fund 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 and state and local taxes on
individuals. For tax years beginning after December 31, 2022, exempt-interest
dividends may affect the federal corporate alternative minimum tax for certain
corporations. In addition, a portion of the Fund's distributions may be subject
to regular federal and state income taxes.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or financial advisor), the Fund, its distributor or
its investment adviser may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask your financial
advisor or visit your financial intermediary’s website for more
information.
|
|
22 |
Section
1
Fund Summaries |
Nuveen
Short Term Municipal Bond Fund
Investment
Objective
The
investment objective of the Fund is to provide current income that is exempt
from federal income tax to the extent consistent with preservation of
capital.
Fees
and Expenses of the Fund
The
following tables describe the fees and expenses that you may pay if you buy,
hold and sell shares of the Fund. You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in the Fund or in other Nuveen
mutual funds. More information about these and other discounts,
as well as eligibility requirements for each share class, is available from your
financial advisor and in “How You Can Buy and Sell Shares” on page 48 of the
Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-61 of
the Fund’s statement of additional information. In addition, more information
about sales charge discounts and waivers for purchases of shares through
specific financial intermediaries is set forth in the appendix to the Fund’s
prospectus entitled “Variations in Sales Charge Reductions and Waivers Available
Through Certain Intermediaries.”
The
tables and examples below do not reflect any commissions that shareholders may
be required to pay directly to their financial intermediaries when buying or
selling Class I shares.
Shareholder
Fees
(fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
|
|
2.50% |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
|
|
None |
|
1.00% |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
None |
|
None |
|
None |
|
Exchange
Fee |
|
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000) |
|
|
$15 |
|
$15 |
|
None |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
Management
Fees2 |
|
|
|
|
0.39 |
% |
|
0.39 |
% |
|
0.39 |
% |
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
0.20 |
% |
|
1.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and Related Expenses3 |
|
|
|
|
0.01 |
% |
|
0.01 |
% |
|
0.01 |
% |
Remainder
of Other Expenses |
|
|
|
|
0.10 |
% |
|
0.10 |
% |
|
0.10 |
% |
Total
Annual Fund Operating Expenses |
|
|
|
|
0.70 |
% |
|
1.50 |
% |
|
0.50 |
% |
Fee
Waivers and/or Expense Reimbursements4,5 |
|
|
|
|
(0.04 |
)% |
|
(0.04 |
)% |
|
(0.04 |
)% |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
|
|
|
0.66 |
% |
|
1.46 |
% |
|
0.46 |
% |
1 The contingent deferred
sales charge on Class C shares applies only to redemptions within 12 months of
purchase.
2 Management Fees have been restated to
reflect current contractual fees.
3 Includes interest expense and fees paid on
Fund borrowings and/or interest and related expenses from inverse
floaters.
4 Fee Waivers and/or Expense
Reimbursements have been restated to reflect current
fees.
5 The Fund’s investment adviser has agreed to
waive fees and/or reimburse expenses through July 31, 2026 so that the total
annual operating expenses of the Fund (excluding 12b-1 distribution and/or
service fees, interest expenses, taxes, acquired fund fees and expenses, fees
incurred in acquiring and disposing of portfolio securities and extraordinary
expenses) do not exceed 0.45% of the average daily net assets of any class of
Fund shares. This expense limitation may be terminated or modified prior to
July 31,
2026 only with the approval of the Board of Directors of the
Fund.
Example
The
following example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The example assumes that
you invest $10,000 in the Fund 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 Fund's
operating expenses remain the same and that the fee waivers currently in place
are not renewed beyond July 31, 2026. Although your actual costs may be higher
or lower, based on these assumptions your costs would
be:
|
|
Section
1
Fund Summaries |
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
I |
|
1
Year |
|
|
|
$ |
316 |
|
$ |
149 |
|
$ |
47 |
|
3
Years |
|
|
|
$ |
460 |
|
$ |
466 |
|
$ |
152 |
|
5
Years |
|
|
|
$ |
622 |
|
$ |
811 |
|
$ |
271 |
|
10
Years |
|
|
|
$ |
1,091 |
|
$ |
1,783 |
|
$ |
620 |
|
Portfolio
Turnover
The
Fund 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 Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
41% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Fund 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.
Regular federal personal income tax is different from, and does not include, the
federal alternative minimum 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 Fund may invest without limit in
securities that generate income subject to the alternative minimum tax on
individuals. For tax years beginning after December 31, 2022, income received
from the Fund’s municipal bonds may affect the federal corporate alternative
minimum tax for certain corporations. The Fund normally may invest up to 20% of
its net assets in taxable obligations. The Fund will attempt to maintain the
weighted average maturity of its portfolio securities at three years or less
under normal market conditions.
Under
normal market conditions, the Fund invests at least 80% of its net assets in
investment grade municipal bonds rated BBB/Baa or higher at the time of purchase
by at least one independent rating agency, or, if unrated, judged by the Fund’s
sub-adviser to be of comparable quality. The Fund may invest up to 20% of its
net assets in below investment grade municipal bonds, commonly referred to as
“high yield” or “junk” bonds.
The
Fund may invest in all types of municipal bonds, including general obligation
bonds, revenue bonds and participation interests in municipal leases. The Fund
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
Fund may invest up to 15% 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 Fund’s investments in inverse floaters are
designed to increase the Fund’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
Fund may utilize the following derivatives: futures contracts; options on
futures contracts; swap agreements, including interest rate swaps, and options
on swap agreements. The Fund may use these derivatives in an attempt to manage
market risk, credit risk and yield curve risk, and to manage the effective
maturity or duration of securities in the Fund’s portfolio. The Fund may not use
such instruments to gain exposure to a security or type of security that it
would be prohibited by its investment restrictions from purchasing
directly.
The
Fund’s sub-adviser uses a value-oriented strategy and looks for higher-yielding
and undervalued municipal bonds that offer 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.
Principal
Risks
The price and yield of this Fund will change daily. You could lose
money by investing in the Fund. An investment in the Fund 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 Fund listed below are presented alphabetically to facilitate
your ability to find particular risks and compare them with the risks of other
funds. The significance of any specific risk to an investment in the Fund will
vary over time depending on the composition of the Fund’s portfolio, market
conditions and other factors. Each risk summarized below is considered a
"principal risk" of investing in the Fund, regardless of the order in which it
appears.
|
|
24 |
Section
1
Fund Summaries |
Active
Management Risk—The
Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the
Fund is subject to the risk that the investment techniques and risk analyses
employed by the Fund’s sub-adviser may not produce the desired results. This
could cause the Fund to lose value or its investment results to lag relevant
benchmarks or other funds with similar
objectives.
Alternative
Minimum Tax Risk—The
Fund has no limit as to the amount that can be invested in alternative minimum
tax bonds. Therefore, all or a portion of the Fund’s otherwise exempt-interest
dividends may be taxable to those shareholders subject to the federal
alternative minimum tax on individuals. For tax years beginning after December
31, 2022, exempt-interest dividends may affect the federal corporate alternative
minimum tax for certain corporations.
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding municipal bonds held by the Fund, the
Fund may have to reinvest in securities with lower yields or higher risk of
default, which may adversely impact the Fund’s
performance.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a municipal bond may
be, or perceived (whether by market participants, rating agencies, pricing
services or otherwise) to 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 Fund's investments in inverse floaters will increase the
Fund'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 Fund’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 Fund assets, customer
data (including private shareholder information), or proprietary information, or
the risk of an incident occurring that causes the Fund, its investment adviser
or sub-adviser, custodian, transfer agent, distributor or other service
provider, a financial intermediary or the issuers of securities held by the Fund
to suffer a data breach, data corruption or lose operational functionality.
Successful cyber-attacks or other cyber-failures or events affecting the Fund,
its service providers or the issuers of securities held by the Fund may
adversely impact the Fund or its shareholders. Additionally, a cybersecurity
breach could affect the issuers in which the Fund invests, which may cause the
Fund’s investments to lose
value.
Derivatives
Risk—The
use of derivatives involves additional risks and transaction costs which could
leave the Fund in a worse position than if it had not used these instruments.
Derivative instruments can be used to acquire or to transfer the risk and
returns of a security or other asset without buying or selling the security or
asset, and the risks associated with investing in such derivatives may be
different and greater than the risks associated with directly investing in the
underlying securities and other instruments, including leverage risk, market
risk, counterparty risk, liquidity risk, operational risk and legal risk. These
instruments may entail investment exposures that are greater than their cost
would suggest. As a result, a small investment in derivatives can result in
losses that greatly exceed the original investment. Derivatives can be highly
volatile, illiquid and difficult to value. An over-the-counter derivative
transaction between the Fund and a counterparty that is not cleared through a
central counterparty also involves the risk that a loss may be sustained as a
result of the failure of the counterparty to the contract to make required
payments. The payment obligation for a cleared derivative transaction is
guaranteed by a central counterparty, which exposes the Fund to the
creditworthiness of the central
counterparty.
High
Yield Securities Risk—High
yield securities, which are rated below investment grade and commonly referred
to as “junk” bonds, and unrated securities of comparable quality are high risk
investments that may cause income and principal losses for the Fund. 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, are
more likely to experience a default and have more volatile prices than
investment grade securities.
Income
Risk—The
Fund's income could decline during periods of falling interest rates or when the
Fund experiences defaults on municipal bonds it holds. Income risk is generally
higher for limited-term bonds so investors may experience a fluctuation in the
monthly income from the Fund. Also, if the Fund invests in inverse floaters, the
Fund's income may decrease if short-term interest rates
rise.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s municipal bonds will decline
because of rising interest rates. Changing interest rates may have unpredictable
effects on markets, result in heightened market volatility and detract from the
Fund’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 effect of potential government
|
|
Section
1
Fund Summaries |
25 |
fiscal
policy initiatives and resulting market reaction to those initiatives. Higher
periods of inflation could lead to government fiscal policies which raise
interest rates. 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. The Fund
is also subject to the risk that the income generated by its investments may not
keep pace with inflation. There is a risk that interest rates across the
financial system may change, possibly significantly and/or rapidly. In general,
changing interest rates, including rates that fall below zero, or a lack of
market participants may lead to decreased liquidity and increased volatility in
the municipal bond market, making it more difficult for the Fund to sell
municipal bonds. Changes in interest rates may also lead to an increase in Fund
redemptions, which may result in higher portfolio turnover costs, thereby
adversely affecting the Fund’s
performance.
Inverse
Floaters Risk—The
use of inverse floaters by the Fund 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 Fund could 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 Fund 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 Fund’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 Fund’s investments
whether or not the Fund 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. Additionally, as inflation
increases, the value of the Fund’s assets can
decline.
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 Fund’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 Fund’s ability to
buy or sell bonds. Municipal bonds may also be thinly traded or have a limited
trading market, making it difficult for the Fund to value the bonds accurately.
As a result, the Fund 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 Fund 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. The increased presence of non-traditional participants (such as
proprietary trading desks of investment banks and hedge funds) or the reduced
presence of traditional participants (such as individuals, insurance companies,
banks and life insurance companies) in the municipal markets may lead to greater
volatility in the markets because non-traditional participants may trade more
frequently or in greater
volume.
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 Fund may be adversely affected by
local political and economic conditions and developments. The Fund 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 Fund’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
|
|
26 |
Section
1
Fund Summaries |
corporate
equities or bonds, meaning that the investment performance of the Fund may be
more dependent on the analytical abilities of the Fund’s sub-adviser than funds
that invest in stock or other corporate
investments.
Tax
Risk—Income
from municipal bonds held by the Fund 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 and certain derivatives utilized by the Fund may cause the Fund to have
taxable investment income.
Unrated
Bond Risk—Unrated
municipal bonds determined by the Fund’s sub-adviser to be of comparable quality
to rated municipal bonds which the Fund 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.
Valuation
Risk—The
sales price the Fund could receive for any particular municipal bond may differ
from the Fund’s valuation of the investment, particularly for securities that
trade in thin or volatile markets or that are valued using a fair value
methodology. The municipal bonds in which the Fund invests typically are valued
by a pricing service utilizing a range of market-based inputs and assumptions,
including price quotations obtained from broker-dealers making markets in such
instruments, cash flows and transactions for comparable instruments. There is no
assurance that the Fund will be able to buy or sell a portfolio security at the
price established by the pricing service, which could result in a gain or loss
to the Fund. 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. Over certain time periods, such differences could materially impact the
performance of the Fund, which may not be sustainable. Alternative 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 Fund were to change pricing services, or if the
Fund’s pricing service were to change its valuation methodology, there could be
a material impact, either positive or negative, on the Fund’s net asset
value.
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 Fund could be forced to liquidate securities at an inopportune time in order
to generate cash to distribute to shareholders as required by tax
laws.
Fund
Performance
The
following bar chart and table provide some indication of the potential risks of
investing in the Fund. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available at www.nuveen.com/performance
or by calling (800)
257-8787.
|
|
Section
1
Fund Summaries |
27 |
The bar chart
below shows the variability of the Fund’s performance from year to year for
Class A shares. The bar chart and highest/lowest
quarterly returns that follow do not reflect sales charges, and if these charges
were reflected, the returns would be less than those
shown.
|
Class
A Annual Total Return* |
*Class A year-to-date total return as
of June 30, 2024 was
0.80%. The performance of the other share
classes will differ due to their different expense
structures.
During
the ten-year period ended December 31, 2023, the Fund’s highest and lowest quarterly returns
were 2.69%
and
-2.91%, respectively, for the quarters ended
December 31, 2023
and March 31,
2022.
The
table below shows the variability of the Fund’s average annual returns and how
they compare over the time periods indicated with those of a broad measure of
market performance and an index of funds with similar investment objectives.
In
accordance with new regulatory requirements, the Fund has selected the S&P
Municipal Bond Index, which represents a broad measure of market performance,
and is generally representative of the market sectors or types of investments in
which the Fund invests. 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.
After-tax returns are shown
for Class A shares only; after-tax returns for other share classes will
vary. Your own actual after-tax returns will depend on your
specific tax situation and may differ from what is shown
here.
Both
the bar chart and the table assume that all distributions have been reinvested.
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.
|
|
28 |
Section
1
Fund Summaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
|
|
|
|
for the Periods
Ended |
|
|
|
|
|
December 31,
2023 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
C) |
Class
A (return before taxes) |
|
10/25/02 |
|
|
0.62 |
% |
|
0.50 |
% |
|
0.63 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
0.62 |
% |
|
0.50 |
% |
|
0.63 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
1.15 |
% |
|
0.70 |
% |
|
0.75 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
2/10/14 |
|
|
2.28 |
% |
|
0.22 |
% |
|
N/A |
|
|
0.28 |
% |
Class
I (return before taxes) |
|
10/25/02 |
|
|
3.40 |
% |
|
1.22 |
% |
|
1.08 |
% |
|
N/A |
|
S&P
Municipal Bond Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
6.03 |
% |
|
2.24 |
% |
|
3.06 |
% |
|
2.85 |
% |
S&P
Municipal Bond Short Index2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
3.34 |
% |
|
1.41 |
% |
|
1.23 |
% |
|
1.21 |
% |
Lipper
Short Municipal Debt Funds Classification Average3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
3.61 |
% |
|
1.17 |
% |
|
0.94 |
% |
|
0.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of the tax-exempt U.S. municipal
bond market. |
2 |
An
index containing bonds in the S&P Municipal Bond Index with maturities
between 6 months and 4 years. |
3 |
Represents
the average annualized total return for all reporting funds in the Lipper
Short Municipal Debt Funds
Classification. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
|
Paul
L. Brennan, CFA |
Managing
Director |
December
2020 |
|
Steven
M. Hlavin |
Managing
Director |
October
2023 |
|
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund directly from the Fund (for
certain share classes) or through a financial advisor or other financial
intermediary on any day that the New York Stock Exchange (“NYSE”)
or its affiliated exchanges, NYSE Arca Equities or NYSE American, are open for
trading. The Fund’s initial and subsequent investment minimums generally are as
follows, although certain financial intermediaries may impose their own
investment minimums and the Fund may reduce or waive the minimums in some
cases:
|
|
|
|
|
Class
A and Class C |
|
Class
I |
Eligibility
and Minimum Initial Investment |
Available
only through certain financial intermediaries or, for Class A, by
contacting the Fund directly as described in the prospectus.
$2,500
for all accounts |
|
Available
only through fee-based programs and to other limited categories of
investors as described in the prospectus.
$100,000
for all accounts except:
• $250
for clients of financial intermediaries and family offices that have
accounts holding Class I shares with an aggregate value of at least
$100,000 (or that are expected to reach this level).
• No
minimum for certain other categories of eligible investors as described in
the prospectus. |
Minimum
Additional Investment |
$100 |
|
No
minimum. |
Tax
Information
The
Fund 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 and state and local taxes on
individuals. For tax years beginning after December 31, 2022, exempt-interest
dividends may affect the federal corporate alternative minimum tax for certain
corporations. In addition, a portion of the Fund's distributions may be subject
to regular federal and state income taxes.
|
|
Section
1
Fund Summaries |
29 |
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or financial advisor), the Fund, its distributor or
its investment adviser may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask your financial
advisor or visit your financial intermediary’s website for more
information.
|
|
30 |
Section
1
Fund Summaries |
Section
2
How We Manage Your Money
To
help you better understand the Funds, this section includes a detailed
discussion of the Funds’ 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 or by visiting
Nuveen’s website at www.nuveen.com.
Nuveen
Fund Advisors, LLC (“Nuveen
Fund Advisors”),
the Funds’ 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 Funds, oversees the management of the Funds’ portfolios,
manages the Funds’ 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 June 30, 2024, Nuveen, LLC managed approximately
$1.2 trillion in assets, of which approximately $145.5 billion was managed by
Nuveen Fund Advisors.
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 each Fund. Nuveen Asset Management manages the investment of the
Funds' assets on a discretionary basis, subject to the supervision of Nuveen
Fund Advisors.
The
Funds are managed by multiple portfolio managers, who are responsible for the
day-to-day management of the Funds, with expertise in the area applicable to the
Funds’ investments. Each portfolio manager may be responsible for different
aspects of a Fund’s management. For example, one manager may be principally
responsible for selecting appropriate investments for a Fund, while another may
be principally responsible for asset allocation. The following is a list of the
portfolio managers primarily responsible for managing each Fund’s investments,
along with their relevant experience. The Funds’ portfolio managers may change
from time to time.
|
|
|
|
|
|
Total
Experience (since
dates specified
below) |
Name
& Title |
Experience
Over Past Five Years |
At
Nuveen Asset Management* |
Total |
|
|
|
|
NUVEEN
ALL-AMERICAN MUNICIPAL BOND FUND |
|
|
|
|
Timothy
T. Ryan, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
2010 |
1983 |
|
|
|
|
Paul
L. Brennan, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
1997 |
1991 |
|
|
|
|
|
|
|
|
|
|
Section
2
How We Manage Your Money |
31 |
|
|
|
|
|
|
Total
Experience (since
dates specified
below) |
Name
& Title |
Experience
Over Past Five Years |
At
Nuveen Asset Management* |
Total |
|
|
|
|
NUVEEN
INTERMEDIATE DURATION MUNICIPAL BOND FUND |
|
|
|
|
Paul
L. Brennan, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
1997 |
1991 |
|
|
|
|
Stephen
J. Candido, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
1996 |
1996 |
|
|
|
|
|
|
|
|
NUVEEN
LIMITED TERM MUNICIPAL BOND FUND |
|
|
|
|
Paul
L. Brennan, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
1997 |
1991 |
|
|
|
|
Steven
M. Hlavin Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
2003 |
2003 |
|
|
|
|
|
|
|
|
NUVEEN
SHORT TERM MUNICIPAL BOND FUND |
|
|
|
|
Paul
L. Brennan, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
1997 |
1991 |
|
|
|
|
Steven
M. Hlavin Managing
Director |
Nuveen
Asset Management and other advisory affiliates (municipal bond portfolio
management) |
2003 |
2003 |
|
|
|
|
|
|
|
|
*
Including tenure at affiliate or predecessor firms, as applicable
Additional
information about the portfolio managers’ compensation, other accounts managed
by the portfolio managers and the portfolio managers’ ownership of securities in
the Funds is provided in the statement of additional information.
Management
Fees
The
management fee schedule for each Fund consists of two components: a Fund-level
fee, based only on the amount of assets within a Fund, and a complex-level fee,
based on the aggregate amount of all eligible fund assets managed by Nuveen Fund
Advisors and, as of May 1, 2024, its affiliate Teachers Advisors,
LLC.
The
annual Fund-level fee, payable monthly, is based upon the average daily net
assets of each Fund as follows:
|
|
|
|
|
Average
Daily Net Assets |
Nuveen All-American Municipal Bond
Fund |
Nuveen Intermediate
Duration Municipal Bond
Fund |
Nuveen Limited
Term Municipal Bond
Fund |
Nuveen Short
Term Municipal Bond
Fund |
For
the first $125 million |
0.3000% |
0.3000% |
0.2500% |
0.2500% |
For
the next $125 million |
0.2875% |
0.2875% |
0.2375% |
0.2375% |
For
the next $250 million |
0.2750% |
0.2750% |
0.2250% |
0.2250% |
For
the next $500 million |
0.2625% |
0.2625% |
0.2125% |
0.2125% |
For
the next $1 billion |
0.2500% |
0.2500% |
0.2000% |
0.2000% |
For
the next $3 billion |
0.2250% |
0.2250% |
0.1750% |
0.1750% |
For
the next $5 billion |
0.2000% |
0.2000% |
0.1500% |
0.1500% |
For
net assets over $10 billion |
0.1875% |
0.1875% |
0.1375% |
0.1375% |
As
of June 30, 2024, the effective complex-level fee rate for each Fund was
0.1574%.
As
of May 1, 2024, the overall complex-level fee, payable monthly, begins at a
maximum rate of 0.1600% of each Fund’s average daily net assets, with
breakpoints for eligible complex-level assets above $124.3 billion. Therefore,
the maximum management fee
|
|
32 |
Section
2
How We Manage Your Money |
rate
for each Fund is the Fund-level fee plus 0.1600%. The current overall
complex-level fee schedule is as follows:
|
|
Complex-Level
Asset Breakpoint Level* |
Complex-Level Fee |
For
the first $124.3 billion |
0.1600% |
For
the next $75.7 billion |
0.1350% |
For
the next $200 billion |
0.1325% |
For
eligible assets over $400 billion |
0.1300% |
*
See
“Service Providers – Investment Adviser” in the statement of additional
information for more detailed information about the complex-level fee and
eligible complex-level assets.
For
the most recent fiscal year, each Fund paid Nuveen Fund Advisors the following
management fees (net of fee waivers and expense reimbursements, where
applicable) as a percentage of average daily net assets:
|
|
Nuveen
All-American Municipal Bond Fund |
0.41% |
Nuveen
Intermediate Duration Municipal Bond Fund |
0.39% |
Nuveen
Limited Term Municipal Bond Fund |
0.34% |
Nuveen
Short Term Municipal Bond Fund |
0.41% |
Nuveen
Fund Advisors has agreed to waive fees and/or reimburse expenses so that the
total annual operating expenses (excluding 12b-1 distribution and/or service
fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred
in acquiring and disposing of portfolio securities and extraordinary expenses)
for Nuveen Intermediate Duration Municipal Bond Fund and Nuveen Short Term
Municipal Bond Fund do not exceed the percentages of the average daily net
assets listed below of any class of Fund shares.
|
|
Nuveen
Intermediate Duration Municipal Bond Fund |
0.75%
|
Nuveen
Short Term Municipal Bond Fund |
0.45%
through July 31, 2026 |
The
expense limitation for Nuveen Intermediate Duration Municipal Bond Fund may be
terminated or modified only with the approval of shareholders of the Fund. The
expense limitation for Nuveen Short Term Municipal Bond Fund may be terminated
or modified prior to July 31, 2026 only with the approval of the Board of
Directors of the Fund.
Information
regarding the Board of Directors'/Trustees’ approval of the investment
management agreements is available in the Funds’ annual report for the fiscal
year ended March 31, 2024.
|
More
About Our Investment Strategies |
The
Funds' investment objectives, which are described in the "Fund Summaries"
section, may not be changed without shareholder approval.
Each
Fund has adopted a fundamental investment policy (a “Name
Policy”).
Each Fund, 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 Funds 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, a Fund will value eligible derivatives
at fair value or market value instead of notional value. A Name Policy may not
be changed without shareholder approval.
|
|
Section
2
How We Manage Your Money |
33 |
The
Funds’ investment policies may be changed by the Board of Directors/Trustees
without shareholder approval unless otherwise noted in this prospectus or the
statement of additional information.
The
Funds’ principal investment strategies are discussed in the “Fund Summaries”
section. These are the strategies that the Funds’ investment adviser and
sub-adviser believe are most likely to be important in trying to achieve the
Funds’ investment objectives. This section provides more information about these
strategies, as well as information about some additional strategies that the
Funds’ sub-adviser uses, or may use, to achieve the Funds’ objectives. You
should be aware that each Fund 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
Funds 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 Funds will, in making purchase decisions, take into consideration
the issuer’s incentive to continue making appropriations until maturity.
The
municipal bonds in which the Funds invest may include refunded bonds and zero
coupon bonds. Refunded bonds may have originally been issued as general
obligation 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 Funds invest 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 Funds 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 Funds 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 Funds adequately for the additional interest rate
risk the Funds must assume, the Funds 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 Funds may buy more bonds from issuers in that industry.
|
|
34 |
Section
2
How We Manage Your Money |
The
Funds may normally invest up to 20% of their net assets in municipal bonds that
are not exempt from regular federal or state personal income tax. Income
received from the Funds’ municipal bonds may be subject to the federal
alternative minimum tax on individuals and state and local taxes. For tax years
beginning after December 31, 2022, income received from the Funds’ municipal
bonds may affect the federal corporate alternative minimum tax for certain
corporations.
Credit
Quality.
The Funds have principal investment strategies requiring them to invest 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 a Fund may invest in securities rated as low as B, the Fund
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. Each Fund 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 within a defined range. Nuveen Short Term
Municipal Bond Fund will attempt to maintain the weighted average maturity of
its portfolio securities at three years or less under normal market conditions.
Nuveen Limited Term Municipal Bond Fund will attempt to maintain the weighted
average maturity of its portfolio securities at three to seven years under
normal market conditions. Nuveen All-American Municipal Bond Fund will maintain,
under normal market conditions, an investment portfolio with an overall weighted
average maturity in excess of 10 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 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, Nuveen Intermediate Duration Municipal Bond Fund maintains a
weighted average effective duration of between 3 and 10 years, and expects to
generally maintain a weighted average effective duration of between 4.5 and 7
years. A Fund’s measurement of weighted average effective duration will reflect
the impact of portfolio leverage through any investments in inverse
floaters.
Inverse
Floaters
Each
Fund may invest up to 15% of its net assets 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 Funds.
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
|
|
Section
2
How We Manage Your Money |
35 |
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, each Fund 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, except that Nuveen Short Term Municipal Bond Fund
is not subject to such limitation on short-term investments. The Funds 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
Funds invest in taxable securities, they may not be able to achieve their
investment objectives.
As
a non-principal investment strategy, each Fund may invest up to 100% of its
assets in cash equivalents and short-term investments as a temporary defensive
measure in response to adverse market conditions or to keep cash on hand fully
invested. During these periods, the weighted average maturity of a Fund’s
investment portfolio may fall below the defined range described in the
respective Fund Summary under “Principal Investment Strategies,” if applicable,
and a Fund may not achieve its objective. A Fund 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 Funds’ policies and procedures with respect to the disclosure
of the Funds’ portfolio holdings is available in the Funds’ statement of
additional information. A list of each Fund’s portfolio holdings is available on
the Funds’ website—
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www.nuveen.com/mutual-funds—by
navigating to your Fund’s web page and clicking on the “Characteristics” link.
By following this link, you can obtain a list of your Fund’s top ten holdings as
of the end of the most recent month. A complete list of portfolio holdings
information is generally made available on the Funds’ website approximately ten
business days following the end of each most recent month. This information will
remain available on the website until the Funds file with the Securities and
Exchange Commission their 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
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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. Nuveen Asset Management follows a
disciplined, research-driven investment approach to find securities that combine
exceptional relative value with above-average return potential.
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 Funds. See the “Fund Summaries”
section for a description of the principal risks of investing in a particular
Fund. Additional information about these risks is listed alphabetically below.
The significance of any specific risk to an investment in a Fund will vary over
time depending on the composition of the Fund’s portfolio, market conditions and
other factors. Because of these risks, you should consider an investment in the
Funds to be a long-term investment.
Principal
Risks
Active
management risk:
The Funds’ sub-adviser actively manages each Fund’s investments. Consequently,
the Funds are subject to the risk that the investment techniques and risk
analyses employed by the Funds’ sub-adviser may not produce the desired results.
This could cause a Fund to lose value or its investment results to lag
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relevant
benchmarks or other funds with similar objectives. Additionally, legislative,
regulatory or tax developments may affect the investment techniques available to
the Funds’ sub-adviser in connection with managing a Fund and such developments,
as well as any deficiencies in the operating systems or controls of the
sub-adviser or a Fund service provider, may also adversely affect the ability of
a Fund to achieve its investment goal.
Alternative
minimum tax risk:
Each Fund has no limit as to the amount that can be invested in alternative
minimum tax bonds. Therefore, all or a portion of a Fund’s otherwise
exempt-interest dividends may be taxable to those shareholders subject to the
federal alternative minimum tax on individuals. For tax years beginning after
December 31, 2022, exempt-interest dividends may affect the federal
corporate alternative minimum tax for certain corporations.
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. A Fund is subject to the possibility that during periods of
falling interest rates, a bond issuer will call its high yielding bonds. A Fund
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 Fund’s performance. Such redemptions and subsequent reinvestments would also
increase a Fund'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. Call risk is generally higher for long-term bond
funds.
Credit
risk: Credit
risk is the risk that an issuer of a municipal bond held by a Fund may be, or
perceived (whether by market participants, rating agencies, pricing services or
otherwise) to 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 or, in some cases, withdrawn 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 a Fund, can negatively impact the value of the bond
and the shares of a Fund, and can also affect the bond’s liquidity and make it
more difficult for a Fund to sell. When a Fund 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.
Issuers of unrated securities, municipal issuers with significant debt services
requirements in the near to mid-term and issuers with less capital and liquidity
to absorb additional expenses may have greater credit risk. Additionally, credit
risk is heightened in market environments where interest rates are rising,
particularly when rates are rising significantly, to the extent that an issuer
is less willing or able to make payments when due. Credit risk may also be
increased by a Fund's investments in inverse floaters because of the leveraged
nature of these investments.
To
the extent that a Fund holds municipal bonds that are secured or guaranteed by
financial institutions or insurance companies, changes in the credit quality of
such obligors could cause the values of these municipal bonds to decline.
Municipal bond insurance does not guarantee the value of either individual
municipal bonds or the shares of a Fund. Additionally, a Fund could be delayed
or hindered in the enforcement of its rights against an issuer or
guarantor.
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
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when
the market believes that bonds generally have a greater risk of default.
Increasing credit spreads may reduce the market values of a Fund’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
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 a Fund, a Fund’s adviser or sub-adviser, a financial
intermediary, other service providers, or the issuers of securities held by a
Fund to incur regulatory penalties, reputational damage, additional compliance
costs or financial loss. Negative impacts on a Fund 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 a Fund invests, and thereby cause the Fund’s investments to
lose value.
Derivatives
risk:
The use of derivatives presents risks different from, and possibly greater than,
the risks associated with investing directly in traditional securities,
including leverage risk, market risk, counterparty risk, liquidity risk,
operational risk and legal risk. Operational risk generally refers to risk
related to potential operational issues, including documentation issues,
settlement issues, systems failures, inadequate controls and human error, and
legal risk generally refers to insufficient documentation, insufficient capacity
or authority of counterparty, or legality or enforceability of a
contract.
Derivatives
can be highly volatile, illiquid and difficult to value, and there is the risk
that changes in the value of a derivative held by a Fund will not correlate with
the asset, index or rate underlying the derivative contract. Changes in the
value of a derivative may also create margin delivery or settlement obligations
for a Fund.
The
use of derivatives can lead to losses because of adverse movements in the price
or value of the underlying asset, index or rate, which may be magnified by
certain features of the contract. A derivative transaction also involves the
risk that a loss may be sustained as a result of the failure of the counterparty
to the contract to make required payments. These risks are heightened when the
management team uses derivatives to enhance a Fund’s return or as a substitute
for a position or security, rather than solely to hedge (or offset) the risk of
a position or security held by the Fund.
A
Fund may use derivatives to hedge risk. Hedges are sometimes subject to
imperfect matching between the derivative and the underlying security, and there
can be no assurance that the Fund’s hedging transactions will be effective. The
use of hedging may result in certain adverse tax consequences.
In
addition, when a Fund engages in certain derivative transactions, it is
effectively leveraging its investments, which could result in exaggerated
changes in the net asset value of the Fund’s shares and can result in losses
that exceed the amount originally invested. The success of a Fund’s derivatives
strategies will depend on the sub-adviser’s ability to assess and predict the
impact of market or economic developments
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on
the underlying asset, index or rate and the derivative itself, without the
benefit of observing the performance of the derivative under all possible market
conditions.
A
Fund may also enter into over-the-counter ("OTC")
transactions in derivatives. Transactions in the OTC markets generally are
conducted on a principal-to-principal basis. The terms and conditions of these
instruments generally are not standardized and tend to be more specialized or
complex, and the instruments may be harder to value. In general, there is less
governmental regulation and supervision of transactions in the OTC markets than
of transactions entered into on organized exchanges. In addition, certain
derivative instruments and markets may not be liquid, which means a Fund may not
be able to close out a derivatives transaction in a cost-efficient
manner.
Short
positions in derivatives may involve greater risks than long positions, as the
risk of loss on short positions is theoretically unlimited (unlike a long
position, in which the risk of loss may be limited to the notional amount of the
instrument).
Swap
agreements may involve fees, commissions or other costs that may reduce a Fund's
gains from a swap agreement or may cause the Fund to lose money.
Futures
contracts are subject to the risk that an exchange may impose price fluctuation
limits, which may make it difficult or impossible for a Fund to close out a
position when desired.
Options
contracts may expire unexercised, which may cause a Fund to realize a capital
loss equal to the premium paid on a purchased option or a capital gain equal to
the premium received on a written option.
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 (and similar quality unrated
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, carry
more risk to principal and are more likely to experience a default. In addition,
high yield securities generally are less liquid than investment grade
securities. Any investment in distressed or defaulted securities subjects a Fund
to even greater credit risk than investments in other below-investment grade
securities.
Income
risk:
A Fund’s income from its municipal bonds could decline during periods of falling
interest rates because the Fund generally may have to invest the proceeds from
sales of Fund 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, a Fund’s income could decline when the
Fund experiences defaults on municipal bonds it holds. To the extent that a Fund
invests in floating-rate securities, the income generated from such securities
will decrease during periods of falling interest rates. Also, if a Fund invests
in inverse floaters, whose income payments vary inversely with changes in
short-term market rates, the Fund's income may decrease if short-term interest
rates rise.
Interest
rate risk:
Municipal bonds held by a Fund 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. Changing interest
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rates
may have unpredictable effects on markets, result in heightened market
volatility and detract from a Fund’s performance to the extent that it is
exposed to such interest rates. A Fund may be subject to a greater risk of
rising interest rates than would normally be the case due to the effect of
potential government fiscal policy initiatives and resulting market reaction to
those initiatives. Higher periods of inflation could lead to government fiscal
policies which raise interest rates. 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. A wide
variety of factors can cause interest rates to rise (e.g., central bank monetary
policies, inflation rates, general economic conditions). Further, rising
interest rates may cause issuers to not make principal and interest payments
when due. A Fund is also subject to the risk that the income generated by its
investments may not keep pace with inflation. Changes in interest rates may also
lead to an increase in Fund redemptions, which may result in higher portfolio
turnover costs, thereby adversely affecting a Fund’s performance.
Inverse
floaters risk:
The use of inverse floaters by a Fund 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 a Fund 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 a Fund 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.
A
Fund may invest in recourse inverse floaters. With such an investment, the Fund
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 Fund to lose money in excess of
its investment.
A
TOB trust may be terminated without a Fund’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 Fund 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 Fund may lose some or all of the principal amount of its investment
in the
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inverse
floaters. As noted above, in the case of recourse inverse floaters, the Fund
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 a Fund, 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 Fund.
A Fund’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 a Fund’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 a Fund’s investments
may be negatively affected whether or not the Fund 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, armed conflict, terrorism, the
imposition of economic sanctions, bank failures (such as the March 2023 failures
of Silicon Valley Bank and Signature Bank, the second- and third-largest bank
failures in U.S. history), 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 a Fund 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
a Fund’s service providers, including the investment adviser and sub-adviser,
rely, and could otherwise disrupt the ability of employees of a Fund’s service
providers to perform essential tasks on behalf of a Fund. 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. In addition, sanctions and other
measures could limit or prevent a Fund from buying and selling securities (in
sanctioned country and other markets), significantly delay or prevent the
settlement of securities transactions, and significantly impact liquidity and
performance. 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 a Fund’s
investments. In addition,
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there
is a possibility that the rising prices of goods and services may have an effect
on the Fund. As inflation increases, the value of the Fund’s assets can
decline.
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 a Fund’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 a Fund’s ability to
buy or sell bonds. Municipal bonds may also be thinly traded or have a limited
trading market, making it difficult for a Fund to value the bonds accurately. As
a result, the Fund 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 a Fund 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 Fund
performance. The increased presence of non-traditional participants (such as
proprietary trading desks of investment banks and hedge funds) or the reduced
presence of traditional participants (such as individuals, insurance companies,
banks and life insurance companies) in the municipal markets may lead to greater
volatility in the markets because non-traditional participants may trade more
frequently or in greater volume.
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 a Fund 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 a Fund 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 a Fund 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, a Fund’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 or another
obligated party, 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 a Fund invests a substantial 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
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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 a Fund may be more dependent
on the analytical abilities of the Fund’s sub-adviser than funds that invest in
stock or other corporate investments.
To
the extent that a Fund 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 a
Fund’s investment portfolio.
Tax
risk:
There is no guarantee that a Fund’s income will remain exempt from federal
income taxes, regardless of the opinion of bond counsel for the issuer of the
securities in which the Fund invests. 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 a Fund and
the value of the Fund’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.
A
Fund’s investments in tax-exempt 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 a Fund or its sub-adviser
will independently review the bases for those tax opinions or guarantee that the
tax opinions are correct. However, after a Fund buys a security, the Internal
Revenue Service may determine that a bond issued as tax-exempt should in fact be
taxable and the Fund’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 a Fund may have to file an amended tax return and pay
additional taxes.
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Investments
in taxable obligations, as well as certain derivatives utilized by a Fund, may
cause a Fund to have taxable investment income. In addition, a Fund may
recognize taxable ordinary income from market discount. A Fund 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 Funds’ sub-adviser to be of comparable
quality to rated municipal bonds which a Fund 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.
Valuation
risk:
The sales price a Fund could receive for any particular municipal bond may
differ from the Fund’s valuation of the investment, particularly for securities
that trade in thin or volatile markets or that are valued using a fair value
methodology. The municipal bonds in which a Fund may invest typically are valued
by a pricing service utilizing a range of market-based inputs and assumptions,
including price quotations obtained from broker-dealers making markets in such
instruments, cash flows and transactions for comparable instruments. There is no
assurance that a Fund will be able to buy or sell a portfolio security at the
price established by the pricing service, which could result in a gain or loss
to the Fund. 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. Over certain time periods, such differences could materially impact the
performance of a Fund, which may not be sustainable. Alternative 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 a Fund were to change pricing services, or if a
Fund’s pricing service were to change its valuation methodology, there could be
a material impact, either positive or negative, on the Fund’s net asset
value.
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 a Fund 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:
A Fund may experience adverse effects due to large purchases or redemptions of
Fund shares. A large redemption by an individual shareholder, or an increase in
redemptions generally by Fund shareholders, may cause a Fund to sell portfolio
securities at times when it would not otherwise do so, which may negatively
impact the Fund’s net asset value and liquidity. If a Fund has difficulty
selling portfolio securities in a timely manner to meet redemption requests, the
Fund may have to borrow money to do so. In such an instance, a Fund’s remaining
shareholders would bear the costs of such borrowings, and such costs could
reduce the Fund’s returns. In addition, until a Fund is able to sell securities
to meet redemption requests, the Fund’s market exposure may be greater than it
ordinarily would be, which would magnify the impact of any market movements on
the Fund’s performance. Similarly, large Fund share purchases may adversely
affect a Fund’s performance to the extent that the Fund is delayed in investing
new cash and is required to maintain a larger cash position than it
|
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Section
2
How We Manage Your Money |
45 |
ordinarily
would, reducing the Fund’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 a Fund’s current expenses
being allocated over a smaller asset base, leading to an increase in the Fund’s
expense ratio.
|
|
46 |
Section
2
How We Manage Your Money |
Section
3
How You Can Buy and Sell Shares
The
Funds offer multiple classes of shares, each with a different combination of
sales charges, fees, eligibility requirements and other features. Your financial
advisor can help you determine which class is best for you. For further details,
please see the statement of additional information. Because the prospectus and
the statement of additional information are available free of charge on Nuveen’s
website at www.nuveen.com, we do not disclose the following share class
information separately on the website.
|
What
Share Classes We Offer |
The
different share classes offered by the Funds are described below. You will pay
up-front or contingent deferred sales charges on some of these share classes. In
addition, some share classes are subject to annual distribution and/or service
fees in the amounts described below, which are paid out of a Fund’s assets.
These fees are paid to Nuveen Securities, LLC (the “Distributor”),
a subsidiary of Nuveen, LLC and the distributor of the Funds, and are used
primarily for providing compensation to financial intermediaries in connection
with the distribution of Fund shares and for providing ongoing account services
to shareholders. The Funds have adopted a distribution and service plan under
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"1940
Act"),
that allows each Fund to pay these distribution and service fees. More
information on this plan can be found under “Distribution and Service
Payments—Distribution and Service Plan.” Because fees paid under the plan are
paid out of a Fund’s assets on an ongoing basis, over time these fees will
increase the cost of your investment and may cost you more than paying other
types of sales charges.
Each
share class of a Fund has certain eligibility requirements that apply when
purchasing Fund shares. Eligibility to purchase a certain class of shares is
generally based on the type of account being opened in a Fund as well as certain
account minimums. In order to better understand the eligibility requirements
outlined below, the following defined terms shall apply when used throughout
this prospectus.
Financial
Intermediary Accounts:
These include accounts held through platforms, programs, plans and other similar
entities, as well as omnibus accounts, on behalf of other investors.
Additionally, Financial Intermediary Accounts may include, but are not limited
to, the following:
· Certain
custody accounts sponsored or administered by TIAA, or by other entities not
affiliated with TIAA, that are established by individuals as IRAs pursuant to
section 408 of the Internal Revenue Code; and
· Wrap
accounts or other such arrangements as may be offered by a financial advisor or
other intermediary.
Direct
Purchasers:
These accounts are opened directly with the transfer agent for your Fund and
include the following: individual, financial advisor, domestic trust and joint
accounts; corporate and institutional accounts; and custodial accounts for a
minor child under the Uniform Gift to Minors Act (“UGMA”)
or Uniform Transfer to Minors Act (“UTMA”).
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47 |
Class
A Shares
You
can purchase Class A shares at the offering price, which is the net asset value
per share plus an up-front sales charge. You may qualify for a reduced sales
charge, or the sales charge may be waived, as described in “How to Reduce Your
Sales Charge.” Class A shares are also subject to an annual service fee of 0.20%
of your Fund’s average daily net assets, which compensates your financial
advisor or other financial intermediary for providing ongoing service to you.
The Distributor retains the service fee on accounts with no financial
intermediary of record. The up-front Class A sales charges for the Funds are as
follows:
Nuveen
All-American Municipal Bond Fund
|
|
|
|
|
|
|
|
|
Amount
of Purchase |
Sales
Charge as %
of Public Offering
Price |
|
Sales
Charge as %
of Net Amount
Invested |
|
Maximum
Financial Intermediary Commission as % of Public Offering
Price |
Less
than $50,000 |
4.20 |
% |
|
4.38 |
% |
|
3.70 |
% |
$50,000
but less than $100,000 |
4.00 |
|
|
4.18 |
|
|
3.50 |
|
$100,000
but less than $250,000 |
3.50 |
|
|
3.63 |
|
|
3.00 |
|
$250,000
and over* |
— |
|
|
— |
|
|
1.00 |
|
* You
can purchase $250,000 or more of Class A shares at net asset value without an
up-front sales charge. The Distributor pays financial intermediaries of record
at a rate of 1.00% of the first $2.5 million, plus 0.75% of the next $2.5
million, plus 0.50% of the amount over $5 million, which includes an advance of
the first year’s service fee. Unless you are eligible for a waiver, you may be
assessed a contingent deferred sales charge (“CDSC”)
of 1.00% if you redeem any of your shares within 18 months of purchase. See
“Contingent Deferred Sales Charges” below for information concerning the CDSC
and “How to Reduce Your Sales Charge—CDSC Waivers and Reductions” below for
information concerning CDSC waivers and reductions.
Nuveen
Intermediate Duration Municipal Bond Fund
|
|
|
|
|
|
|
|
|
Amount
of Purchase |
Sales
Charge as %
of Public Offering
Price |
|
Sales
Charge as %
of Net Amount
Invested |
|
Maximum
Financial Intermediary Commission as % of Public Offering
Price |
Less
than $50,000 |
3.00 |
% |
|
3.09 |
% |
|
2.50 |
% |
$50,000
but less than $100,000 |
2.50 |
|
|
2.56 |
|
|
2.00 |
|
$100,000
but less than $250,000 |
2.00 |
|
|
2.04 |
|
|
1.50 |
|
$250,000
and over* |
— |
|
|
— |
|
|
1.00 |
|
* You
can purchase $250,000 or more of Class A shares at net asset value without an
up-front sales charge. The Distributor pays financial intermediaries of record
at a rate of 1.00% of the first $2.5 million, plus 0.75% of the next $2.5
million, plus 0.50% of the amount over $5 million, which includes an advance of
the first year’s service fee. Unless you are eligible for a waiver, you may be
assessed a CDSC of 1.00% if you redeem any of your shares within 18 months of
purchase. See “Contingent Deferred Sales Charges” below for information
concerning the CDSC and “How to Reduce Your Sales Charge—CDSC Waivers and
Reductions” below for information concerning CDSC waivers and
reductions.
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|
48 |
Section
3
How You Can Buy and Sell Shares |
Nuveen
Limited Term Municipal Bond Fund
Nuveen
Short Term Municipal Bond Fund
|
|
|
|
|
|
|
|
|
Amount
of Purchase |
Sales
Charge as %
of Public Offering
Price |
|
Sales
Charge as %
of Net Amount
Invested |
|
Maximum
Financial Intermediary Commission as % of Public Offering
Price |
Less
than $50,000 |
2.50 |
% |
|
2.56 |
% |
|
2.00 |
% |
$50,000
but less than $100,000 |
2.00 |
|
|
2.04 |
|
|
1.60 |
|
$100,000
but less than $250,000 |
1.50 |
|
|
1.52 |
|
|
1.20 |
|
$250,000
and over* |
— |
|
|
— |
|
|
0.70 |
|
* You
can purchase $250,000 or more of Class A shares at net asset value without an
up-front sales charge. The Distributor pays financial intermediaries of record
at a rate of 0.70% of the first $2.5 million, plus 0.50% of the next $2.5
million, plus 0.25% of the amount over $5 million, which includes an advance of
the first year’s service fee. Unless you are eligible for a waiver, you may be
assessed a CDSC of 0.70% if you redeem any of your shares within 18 months of
purchase for Nuveen Limited Term Municipal Bond Fund and within 12 months of
purchase for Nuveen Short Term Municipal Bond Fund. See “Contingent Deferred
Sales Charges” below for information concerning the CDSC and “How to Reduce Your
Sales Charge—CDSC Waivers and Reductions” below for information concerning CDSC
waivers and reductions.
Class
A shares are available through certain financial intermediaries or by contacting
your Fund directly. Provided they meet the minimum investment and other
eligibility requirements, eligible investors include:
· Direct
Purchasers;
· Financial
Intermediary Accounts;
· Other
investment companies or pools;
· Insurance
company separate accounts advised by or affiliated with Nuveen Fund Advisors, or
other affiliates of TIAA; and
· Other
accounts, entities, programs, plans and categories of shareholders as may be
approved by the Funds from time to time.
Class
A shares may not be available through certain financial intermediaries. Please
consult with your financial intermediary to determine whether their policies
allow for an investment in Class A shares.
Class
C Shares
You
can purchase Class C shares at the offering price, which is the net asset value
per share without any up-front sales charge. Class C shares are subject to
annual distribution and service fees of 1.00% of your Fund’s average daily net
assets. The annual 0.25% service fee compensates your financial advisor or other
financial intermediary for providing ongoing service to you. The annual 0.75%
distribution fee compensates the Distributor for paying your financial advisor
or other financial intermediary an ongoing sales commission. The Distributor
compensates your financial advisor or other financial intermediary at the time
of sale at a rate of 1.00% of the amount of Class C shares purchased, which
includes an advance of the first year's service and distribution fees. The
Distributor retains the service and distribution fees on accounts with no
financial intermediary of record. If you redeem your shares within 12 months of
purchase, you will normally pay a 1.00% CDSC, which is calculated on the lower
of your purchase price or redemption proceeds. You do not pay a CDSC on any
Class C shares you purchase by reinvesting dividends. You may qualify for a
reduced CDSC, or the CDSC may be waived, as described in “How to Reduce Your
Sales Charge” below.
Investors
purchasing Class C shares should consider whether they would qualify for a
reduced or eliminated sales charge on Class A shares that would make purchasing
Class A shares a better choice. Class A share sales charges can be reduced or
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Section
3
How You Can Buy and Sell Shares |
49 |
eliminated
based on the size of the purchase, or pursuant to a letter of intent or rights
of accumulation. See “How to Reduce Your Sales Charge” below.
Class
C share purchase orders equaling or exceeding $250,000 will not be accepted. In
addition, the Funds limit the cumulative amount of Class C shares that may be
purchased by a single purchaser. Your financial intermediary may set lower
maximum purchase limits for Class C shares. See the statement of additional
information for more information.
Class
C shares automatically convert to Class A shares after 8 years, thus reducing
future annual expenses. Conversions occur during the month in which the 8-year
anniversary of the purchase occurs. The automatic conversion is based on the
relative net asset values of the two share classes without the imposition of a
sales charge or fee. The automatic conversion of Class C shares to Class A
shares may not apply to shares held through group retirement plan recordkeeping
platforms of certain financial intermediaries who hold such shares in an omnibus
account and do not track participant level share lot aging to facilitate such a
conversion. Furthermore, the availability of the automatic Class C share
conversion and the terms under which the conversion takes place may depend on
the policies and/or system limitations of the financial intermediary through
which you hold your shares. Information on intermediaries’ variations from the
Class C share conversion discussed above is disclosed in the appendix to this
prospectus, “Variations in Sales Charge Reductions and Waivers Through Certain
Intermediaries.” Also, see “How to Reduce Your Sales Charge” below.
Investors
may purchase Class C shares only for Fund accounts held with a financial advisor
or other financial intermediary, and not directly with a Fund. Provided they
meet the minimum investment and other eligibility requirements, eligible
investors include:
· Financial
Intermediary Accounts;
· Other
investment companies or pools;
· Insurance
company separate accounts advised by or affiliated with Nuveen Fund Advisors, or
other affiliates of TIAA; and
· Other
accounts, entities, programs, plans and categories of shareholders as may be
approved by the Funds from time to time.
Class
C shares may not be available through certain financial intermediaries. Please
consult with your financial intermediary to determine whether their policies
allow for an investment in Class C shares.
Class
R6 Shares
Eligible
investors can purchase Class R6 shares at the offering price, which is the net
asset value per share without any up-front sales charge. As Class R6 shares are
not subject to sales charges or ongoing service or distribution fees, they have
lower ongoing expenses than the other classes.
Class
R6 shares are available for purchase by clients of financial intermediaries who
charge such clients an ongoing fee for advisory, investment, consulting or
related services. Such clients may include individuals, corporations, endowments
and foundations. The minimum initial investment for such clients is $1,000. The
Distributor may waive the minimum for clients of financial intermediaries
anticipated to reach this Class R6 share holdings level. All other eligible
investors must meet a minimum initial investment of at least $1,000,000 in a
Fund. Such minimum investment requirement may be applied collectively to
affiliated accounts, in the discretion of the Distributor. Class R6 shares may
be purchased through financial intermediaries only if such intermediaries
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|
50 |
Section
3
How You Can Buy and Sell Shares |
have
entered into an agreement with the Distributor to offer Class R6 shares. Class
R6 shares are only available in cases where neither the investor nor the
intermediary will receive any commission payments, account servicing fees,
record keeping fees, 12b-1 fees, sub-transfer agent fees, so called “finder’s
fees,” administration fees or similar fees with respect to Class R6 shares.
Provided they meet the minimum investment and other eligibility requirements,
eligible investors include:
· Financial
Intermediary Accounts;
· Direct
Purchasers;
· Foundations
and endowment funds;
· Any
state, county, or city, or its instrumentality, department, authority or
agency;
· Omnibus
or other pooled accounts registered to insurance companies, trust companies,
bank trust departments, registered investment advisor firms and family
offices;
· Investment
companies;
· Corporations,
including corporate non-qualified deferred compensation plans of such
corporations;
· Collective
investment trusts;
· Insurance
company separate accounts advised by or affiliated with Nuveen Fund Advisors or
other affiliates of TIAA;
· Discretionary
accounts managed by Nuveen Fund Advisors or its affiliates; and
· Other
accounts, entities, programs, plans and categories of shareholders as may be
approved by the Funds from time to time.
Class
R6 shares are also available for purchase, with no minimum initial investment,
by the following categories of investors:
· Current
and former trustees/directors of any Nuveen Fund, and their immediate family
members (as defined in the statement of additional information).
· Officers
of Nuveen, LLC and its affiliates, and their immediate family
members.
· Full-time
and retired employees of Nuveen, LLC and its affiliates, and their immediate
family members.
Only
Nuveen All-American Municipal Bond Fund issues Class R6 shares.
Class
I Shares
You
can purchase Class I shares at the offering price, which is the net asset value
per share without any up-front sales charge. As Class I shares are not subject
to sales charges or ongoing service or distribution fees, they have lower
ongoing expenses than the other classes.
Class
I shares are available for purchase by clients of financial intermediaries who
charge such clients an ongoing fee for advisory, investment, consulting or
related services. Such clients may include individuals, corporations, endowments
and foundations. The minimum initial investment for such clients is $100,000,
but this minimum will be lowered to $250 for clients of financial intermediaries
that have accounts holding Class I shares with an aggregate value of at least
$100,000. The Distributor may also lower the minimum to $250 for clients of
financial intermediaries anticipated to reach this Class I share holdings
level.
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51 |
Class
I shares are also available for purchase by family offices and their clients. A
family office is a company that provides certain financial and other services to
a high net worth family or families. The minimum initial investment for family
offices and their clients is $100,000, but this minimum will be lowered to $250
for clients of family offices that have accounts holding Class I shares with an
aggregate value of at least $100,000. The Distributor may also lower the minimum
to $250 for clients of family offices anticipated to reach this Class I share
holdings level.
Class
I shares are also available for purchase, with no minimum initial investment, by
the following categories of investors:
· Certain
bank or broker-affiliated trust departments.
· Advisory
accounts of Nuveen Fund Advisors and its affiliates.
· Investors
purchasing through a brokerage platform of a financial intermediary that has an
agreement with the Distributor to offer such shares solely when acting as an
agent for such investors. Investors transacting through a financial
intermediary’s brokerage platform may be required to pay a commission directly
to the intermediary.
· Current
and former trustees/directors of any Nuveen Fund, and their immediate family
members (as defined in the statement of additional information).
· Officers
of Nuveen, LLC and its affiliates, and their immediate family
members.
· Full-time
and retired employees of Nuveen, LLC and its affiliates, and their immediate
family members.
· Certain
financial intermediary personnel, and their immediate family
members.
· Certain
other institutional investors described in the statement of additional
information.
A
financial intermediary through which you hold Class I shares may have the
authority under its account agreement to exchange your Class I shares for
another class of Fund shares having higher expenses than Class I shares if you
withdraw from or are no longer eligible for the intermediary's fee-based program
or under other circumstances. You may be subject to the sales charges and
service and/or distribution fees applicable to the share class that you receive
in such an exchange. You should contact your financial intermediary for more
information about your eligibility to purchase Class I shares and the class of
shares you would receive in an exchange if you no longer meet Class I
eligibility requirements.
Please
refer to the statement of additional information for more information about
Class A, Class C, Class R6 and Class I shares, including more detailed
program descriptions and eligibility requirements. Additional information is
also available from your financial advisor, who can also help you prepare any
necessary application forms.
Contingent
Deferred Sales Charges
If
you redeem Class A or Class C shares that are subject to a CDSC, you may be
assessed a CDSC upon redemption. When you redeem Class A or Class C shares
subject to a CDSC, your Fund will first redeem any shares that are not subject
to a CDSC, and then redeem the shares you have owned for the longest period of
time, unless you ask the Fund to redeem your shares in a different order. No
CDSC is imposed on shares you buy through the reinvestment of dividends and
capital gains. The CDSC holding period is calculated on a monthly basis and
begins on the first day of the month in which the purchase was made. When you
redeem shares subject to a CDSC, the CDSC is calculated on the lower of your
purchase price or redemption proceeds,
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|
52 |
Section
3
How You Can Buy and Sell Shares |
deducted
from your redemption proceeds, and paid to the Distributor. The CDSC may be
waived under certain special circumstances as described below under “How You Can
Buy and Sell Shares—How to Reduce Your Sales Charge—CDSC Waivers and
Reductions,” in the appendix to this prospectus titled “Variations in Sales
Charge Reductions and Waivers Available Through Certain Intermediaries,” and in
the statement of additional information.
|
How
to Reduce Your Sales Charge |
The
Funds offer a number of ways to reduce or eliminate the up-front sales charge on
Class A shares. In addition, under certain circumstances, the Funds will waive
or reduce the CDSC imposed on redemptions of Class C shares and certain Class A
shares purchased at net asset value. The
availability of the sales charge reductions and waivers discussed below will
depend on the policies of the financial intermediary through which you purchase
your shares. Information on intermediaries’ variations from the reductions and
waivers discussed below are disclosed in the appendix to this prospectus,
“Variations in Sales Charge Reductions and Waivers Available Through Certain
Intermediaries.” In
all instances, it is your responsibility to notify your financial intermediary
at the time of purchase of any relationship or other facts qualifying you for
sales charge waivers or discounts. In
order to obtain waivers and discounts that are not available through your
intermediary, you will have to purchase Fund shares through another
intermediary.
Class
A Sales Charge Reductions
· Rights
of Accumulation.
In calculating the appropriate sales charge on a purchase of Class A shares of a
Fund, you may be able to add the amount of your purchase to the value, based on
the current net asset value per share, of all of your prior purchases of any
Nuveen mutual fund.
· Letter
of Intent.
Subject to certain requirements, you may purchase Class A shares of a Fund at
the sales charge rate applicable to the total amount of the purchases you intend
to make over a 13-month period.
For
purposes of calculating the appropriate sales charge as described under
Rights
of Accumulation
and Letter
of Intent
above, you may include purchases by (i) you, (ii) your spouse or domestic
partner and children under the age of 21 years, and (iii) a corporation,
partnership or sole proprietorship that is 100% owned by any of the persons in
(i) or (ii). In addition, a trustee or other fiduciary can count all shares
purchased for a single trust, estate or other single fiduciary account that has
multiple accounts (including one or more employee benefit plans of the same
employer).
Class
A Sales Charge Waivers
Class
A shares of a Fund may be purchased at net asset value without a sales charge as
follows:
· Purchases
of $250,000 or more (although such purchases may be subject to a CDSC in certain
circumstances, see “What Share Classes We Offer—Contingent Deferred Sales
Charges” above).
· Shares
purchased through the reinvestment of Nuveen mutual fund dividends and capital
gain distributions.
· Shares
purchased for accounts held directly with a Fund that do not have a financial
intermediary of record.
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53 |
· Employees
of Nuveen, LLC and its affiliates.
Purchases by current and retired employees of Nuveen, LLC and its affiliates and
such employees’ immediate family members (as defined in the statement of
additional information).
· Current
and former trustees/directors of the Nuveen Funds.
· Financial
intermediary personnel.
Purchases by any person who, for at least the last 90 days, has been an officer,
director, or employee of any financial intermediary or any such person’s
immediate family member.
· Certain
trust departments.
Purchases by bank or broker-affiliated trust departments investing funds over
which they exercise exclusive discretionary investment authority and that are
held in a fiduciary, agency, advisory, custodial or similar
capacity.
· Additional
categories of investors.
Purchases made (i) by investors purchasing on a periodic fee, asset-based fee or
no transaction fee basis through a broker-dealer sponsored mutual fund purchase
program; (ii) by clients of investment advisers, financial planners or other
financial intermediaries that charge periodic or asset-based fees for their
services; and (iii) through a financial intermediary that has entered into an
agreement with the Distributor to offer the Funds’ shares to self-directed
investment brokerage accounts and that may or may not charge a transaction fee
to its customers. Intermediaries that have entered into such an agreement are
listed in the appendix to this prospectus, “Variations in Sales Charge
Reductions and Waivers Available Through Certain Intermediaries.”
In
order to obtain a sales charge reduction or waiver on Class A share purchases,
it may be necessary at the time of purchase for you to inform the Funds or your
financial advisor of the existence of other accounts in which there are holdings
eligible to be aggregated for such purposes. You may need to provide the Funds
or your financial advisor information or records, such as account statements, in
order to verify your eligibility for a sales charge reduction or waiver. This
may include account statements of family members and information regarding
Nuveen mutual fund shares held in accounts with other financial advisors. You or
your financial advisor must notify the Distributor at the time of each purchase
if you are eligible for any of these programs. The Funds may modify or
discontinue these programs at any time.
CDSC
Waivers and Reductions
The
CDSC payable upon the redemption of Class C shares, and on Class A shares that
were purchased at net asset value without a sales charge because the purchase
amount equaled or exceeded $250,000, may be waived or reduced under the
following circumstances:
· In
the event of total disability of the shareholder.
· In
the event of death of the shareholder.
· For
certain redemptions made pursuant to a systematic withdrawal plan.
· For
redemptions in connection with a payment of account or plan fees.
· For
redemptions of accounts not meeting required minimum balances.
· Upon
an optional conversion by a Fund of Class C shares held in an account which no
longer has a financial intermediary of record into Class A shares.
· For
redemptions of Class C shares where the Distributor did not advance the first
year’s service and distribution fees to the intermediary.
· For
redemptions of Class A shares where the Distributor did not pay a sales charge
to the intermediary when the shares were purchased.
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|
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Section
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More
information on these and other available CDSC waivers and reductions can be
found in the appendix to this prospectus, “Variations in Sales Charge Reductions
and Waivers Available Through Certain Intermediaries,” and in the statement of
additional information.
Fund
shares may be purchased on any business day, which is any day the New York Stock
Exchange (the “NYSE”)
or its affiliated exchanges, NYSE Arca Equities or NYSE American, are open for
trading. Generally, the NYSE and its affiliated exchanges are closed on weekends
and national holidays. The share price you pay depends on when the Distributor
receives your order and on the share class you are purchasing. Orders received
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.
You
may purchase Fund shares (1) through a financial advisor or other financial
intermediary or (2) directly from the Funds. Class C shares may not be purchased
directly from a Fund. In addition, the availability of Class A and Class C
shares through a financial intermediary will depend on the policies of the
intermediary.
Through
a Financial Advisor
You
may buy shares through your financial advisor, who can handle all the details
for you, including opening a new account. Financial advisors can also help you
review your financial needs and formulate long-term investment goals and
objectives. In addition, financial advisors generally can help you develop a
customized financial plan, select investments and monitor and review your
portfolio on an ongoing basis to help assure your investments continue to meet
your needs as circumstances change. Financial advisors (including brokers or
agents) are paid for providing ongoing investment advice and services, either
from Fund sales charges and fees or by charging you a separate fee in lieu of a
sales charge.
Financial
advisors or other dealer firms may charge their customers a processing or
service fee in connection with the purchase or redemption of Fund shares. The
amount and applicability of such a fee is determined and disclosed to customers
by each individual dealer. Processing or service fees typically are fixed,
nominal dollar amounts and are in addition to the sales and other charges
described in this prospectus and the statement of additional information. Your
dealer will provide you with specific information about any processing or
service fees you will be charged. Shares you purchase through your financial
advisor or other intermediary will normally be held with that firm. For more
information, please contact your financial advisor.
Directly
from the Funds
Eligible
investors may purchase shares directly from the Funds.
· By
wire.
You can purchase shares by making a wire transfer from your bank. Before making
an initial investment by wire, you must submit a new account form to a Fund.
After receiving your form, a service representative will contact you with your
account number and wiring instructions. Your order will be priced at the next
closing share price based on the share class of your Fund, calculated after your
Fund’s custodian receives your payment by wire. Wired funds must be received
prior to 4:00 p.m. New York time to be eligible for same day pricing. Neither
your Fund nor the transfer agent is responsible for the consequences of delays
resulting from the banking or Federal Reserve wire system, or from incomplete
wiring instructions. Before making
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any
additional purchases by wire, you should call Nuveen Funds at (800) 257-8787.
You cannot purchase shares by wire on days when federally chartered banks are
closed.
· By
mail.
You may open an account directly with the Funds and buy shares by completing an
application and mailing it along with your check to: Nuveen Funds, P.O. Box
219140, Kansas City, Missouri 64121-9140. Applications may be obtained at
www.nuveen.com or by calling (800) 257-8787. No third party checks will be
accepted.
Purchase
orders and redemption requests are not processed until received in proper form
by the transfer agent of a Fund.
· On-line.
Existing shareholders with direct accounts may process certain account
transactions on-line. You may purchase additional shares or exchange shares
between existing, identically registered direct accounts. You can also look up
your account balance, history and dividend information, as well as order
duplicate account statements and tax forms from the Funds’ website. To access
your account, click on the “Online Account Access” link under the “Individual
Investors—Mutual Fund Account Access” heading at www.nuveen.com/client-access.
The system will walk you through the log-in process. To purchase shares on-line,
you must have established Fund Direct privileges on your account prior to the
requested transaction. See “Special Services—Fund Direct” below.
· By
telephone.
Existing shareholders with direct accounts may also process account transactions
via the Funds’ automated information line. Simply call (800) 257-8787, press 1
for mutual funds and the voice menu will walk you through the process. To
purchase shares by telephone, you must have established Fund Direct privileges
on your account prior to the requested transaction. See “Special Services—Fund
Direct” below.
The
Distributor does not have a customer relationship with you solely by virtue of
acting as principal underwriter and distributor for your Fund. The
Distributor does not offer or provide investment monitoring, make investment
decisions for you, or hold customer accounts or assets. You make the ultimate
decision regarding whether to buy or sell any Nuveen Fund.
To
help make your investing with us easy and efficient, we offer you the following
services at no extra cost. Your financial advisor can help you complete the
forms for these services, or you can call Nuveen Funds at (800) 257-8787 for
copies of the necessary forms.
Systematic
Investing
Once
you have opened an account satisfying the applicable investment minimum,
systematic investing allows you to make regular additional investments through
automatic deductions from your bank account, directly from your paycheck or from
exchanging shares from another mutual fund account. The minimum automatic
deduction is $100 per month. There is no charge to participate in your Fund’s
systematic investment plan. You can stop the deductions at any time by notifying
your Fund in writing.
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· From
your bank account.
You can make systematic investments of $100 or more per month by authorizing
your Fund to draw pre-authorized checks on your bank account.
· From
your paycheck.
With your employer’s consent, you can make systematic investments each pay
period (collectively meeting the monthly minimum of $100) by authorizing your
employer to deduct monies from your paycheck.
· Systematic
exchanging.
You can make systematic investments by authorizing the Distributor to exchange
shares from one Nuveen mutual fund account into another identically registered
Nuveen mutual fund account of the same share class.
Your
Fund may cancel your participation in its systematic investment plan if it is
unable to deliver a current prospectus to you because of an incorrect or invalid
mailing address.
Systematic
Withdrawal
If
the value of your Fund account is at least $5,000, you may request to have $50
or more withdrawn automatically from your account. You may elect to receive
payments monthly, quarterly, semi-annually or annually, and may choose to
receive a check, have the monies transferred directly into your bank account
(see “Fund Direct” below), paid to a third party or sent payable to you at an
address other than your address of record. You must complete the appropriate
section of the account application or Account Update Form to participate in each
Fund’s systematic withdrawal plan.
You
should not establish systematic withdrawals if you intend to make concurrent
purchases of Class A or Class C shares because you may unnecessarily pay a sales
charge or CDSC on these purchases.
Exchanging
Shares
You
may exchange Fund shares into an identically registered account for the same
class of another Nuveen mutual fund available in your state. Your exchange must
meet the minimum purchase requirements of the fund into which you are
exchanging. You may also, under certain limited circumstances, exchange between
certain classes of shares of the same fund, subject to the payment of any
applicable CDSC. Please consult the statement of additional information for
details.
Each
Fund reserves the right to revise or suspend the exchange privilege, limit the
amount or number of exchanges, or reject any exchange. In the event that a Fund
rejects an exchange request, neither the redemption nor the purchase side of the
exchange will be processed. If you would like the redemption request to be
processed even if the purchase order is rejected, you may submit a separate
redemption request (see “How to Sell Shares” below). Shareholders will be
provided with at least 60 days’ notice of any material revision to or
termination of the exchange privilege.
Because
an exchange between funds is treated for tax purposes as a purchase and sale,
any gain may be subject to tax. An exchange between classes of shares of the
same fund may not be considered a taxable event. You should consult your tax
advisor about the tax consequences of exchanging your shares.
Fund
DirectSM
The
Fund Direct Program allows you to link your Fund account to your bank account,
transfer money electronically between these accounts and perform a variety of
account transactions, including purchasing shares by telephone and investing
through a systematic investment plan. You may also have dividends,
distributions, redemption payments or systematic withdrawal plan payments sent
directly to your bank account.
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Reinstatement
Privilege
If
you redeem Class A or Class C shares, you may reinvest all or part of your
redemption proceeds up to one year later without incurring any additional
charges. You may only reinvest into the same share class you redeemed. If you
paid a CDSC, any shares purchased pursuant to the reinstatement privilege will
not be subject to a CDSC. You may use this reinstatement privilege only once for
any redemption.
You
may sell (redeem) your shares on any business day, which is any day the NYSE or
its affiliated exchanges, NYSE Arca Equities or NYSE American, are open for
trading. You will receive the share price next determined after your Fund has
received your properly completed redemption request. Your 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. The Fund will normally mail your check the
next business day after a redemption request is received, but in no event more
than seven days after your request is received. If you are selling shares
purchased recently with a check, your redemption proceeds will not be mailed
until your check has cleared, which may take up to ten business days from your
purchase date.
You
may sell your shares (1) through a financial advisor or (2) directly to the
Funds.
Through
a Financial Advisor
You
may sell your shares through your financial advisor, who can prepare the
necessary documentation. Your financial advisor may charge for this
service.
Directly
to the Funds
· By
mail.
You can sell your shares at any time by sending a written request to the
appropriate Fund, c/o Nuveen Funds, P.O. Box 219140, Kansas City, Missouri
64121-9140. Your request must include the following information:
· The
Fund’s name;
· Your
name and account number;
· The
dollar or share amount you wish to redeem;
· The
signature of each owner exactly as it appears on the account;
· Any
certificates you have for the shares;
· The
name of the person to whom you want your redemption proceeds paid (if other than
to the shareholder of record);
· The
address where you want your redemption proceeds sent (if other than the address
of record); and
· Any
required signature guarantees.
After
you have established your account, signatures on a written request must be
guaranteed if:
· You
would like redemption proceeds payable or sent to any person, address or bank
account other than that on record;
· You
have changed the address on your Fund’s records within the last 30 days;
or
· You
are requesting a change in ownership on your account.
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Non-financial
transactions, including establishing or modifying certain services such as
changing bank information on an account, will require a signature guarantee or
signature verification from a Medallion Signature Guarantee Program member or
other acceptable form of authentication from a financial institution source. In
addition to the situations described above, the Funds reserve the right to
require a signature guarantee, or another acceptable form of signature
verification, in other instances based on the circumstances of a particular
situation.
A
signature guarantee assures that a signature is genuine and protects
shareholders from unauthorized account transfers. Banks, savings and loan
associations, trust companies, credit unions, broker-dealers and member firms of
a national securities exchange may guarantee signatures. Call your financial
intermediary to determine if it has this capability. A notary public is not an
acceptable signature guarantor. Proceeds from a written redemption request will
be sent to you by check unless another form of payment is requested.
· On-line.
You may redeem shares or exchange shares between existing, identically
registered accounts on-line. To access your account, click on the “Online
Account Access” link under the “Individual Investors—Mutual Fund Account Access”
heading at www.nuveen.com/client-access. The system will walk you through the
log-in process. On-line redemptions are not available for shares owned in
certificate form and, with respect to redemptions where the proceeds are payable
by check, may not exceed $100,000. Checks will only be issued to you as the
shareholder of record and mailed to your address of record. If you have
established Fund Direct privileges, you may have redemption proceeds transferred
electronically to your bank account. In this case, the redemption proceeds will
be transferred to your bank on the next business day after the redemption
request is received. You should contact your bank for further information
concerning the timing of the credit of the redemption proceeds in your bank
account.
· By
telephone.
If your account is held with your Fund and not in your brokerage account, and
you have authorized telephone redemption privileges, call (800) 257-8787 to
redeem your shares, press 1 for mutual funds and the voice menu will walk you
through the process. Telephone redemptions are not available for shares owned in
certificate form and, with respect to redemptions where the proceeds are payable
by check, may not exceed $100,000. Checks will only be issued to you as the
shareholder of record and mailed to your address of record, normally the next
business day after the redemption request is received. If you have established
Fund Direct privileges, you may have redemption proceeds transferred
electronically to your bank account. In this case, the redemption proceeds will
be transferred to your bank on the next business day after the redemption
request is received. You should contact your bank for further information
concerning the timing of the credit of the redemption proceeds in your bank
account.
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An
Important Note About Telephone Transactions
Although
Nuveen Funds has certain safeguards and procedures to confirm the identity
of callers, it will not be liable for losses resulting from following
telephone instructions it reasonably believes to be genuine.
Also,
you should verify your trade confirmations immediately upon
receipt. |
Accounts
with Low Balances
Your
Fund charges an Annual Low Balance Account Fee of $15.00 per account (other than
accounts holding Class R6 or Class I shares, but applicable to both retirement
and
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non-retirement
accounts) in order to allocate shareholder servicing costs equitably if your
Fund balance falls below $1,000 (for any reason, including a decrease in market
value) as of a particular date each year. Investors cannot pay this fee by any
other means besides an automatic deduction of the fee from their account.
The
Annual Low Balance Account Fee will not apply to the following types of
accounts: accounts held through retirement or employee benefit plans; accounts
held through intermediaries and their supermarkets and platforms (i.e., omnibus
accounts); accounts that are registered under a taxpayer identification number
(or Social Security number) that have aggregated non-retirement or non-employee
benefit plan assets held in accounts for the Fund or other Nuveen mutual funds
of $25,000 or more; accounts currently enrolled in a systematic investment plan;
and accounts held through tuition (529) plan programs. However, the Annual Low
Balance Account Fee will apply to IRAs and Coverdell education savings accounts.
The Funds reserve the right to waive or reduce the Annual Low Balance Account
Fee for any Fund account at any time. Additionally, the Funds may increase,
terminate or revise the terms of the Annual Low Balance Account Fee at any time
without advance notice to shareholders.
Meeting
Redemption Requests
Each
Fund typically will pay redemption proceeds using cash reserves maintained in
the Fund’s portfolio, or using the proceeds from sales of portfolio securities.
The Funds also may meet redemption requests through overdrafts at the Funds’
custodian, by borrowing under a credit agreement to which the Funds are parties,
or by borrowing from another Nuveen Fund under an inter-fund lending program
maintained by the Nuveen Funds pursuant to exemptive relief granted by the
Securities and Exchange Commission. See “Investment Policies and
Techniques—Borrowing” in the statement of additional information. These
additional methods are more likely to be used to meet large redemption requests
or in times of stressed market conditions.
Although
the Funds generally pay redemption proceeds in cash, if a Fund determines that
it would be detrimental to its remaining shareholders to make payment of a
redemption order wholly in cash, that Fund may pay a portion of your redemption
proceeds in securities or other Fund assets. In this situation, you would
generally receive a proportionate distribution of each security held by the Fund
to the extent practicable. Although it is unlikely that your shares would be
redeemed in-kind, you would probably have to pay brokerage costs to sell the
securities or other assets distributed to you, as well as taxes on any capital
gains from that sale. Until they are sold, any securities or other assets
distributed to you as part of a redemption in-kind may be subject to market
risk.
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Section
4 General
Information
To
help you understand the tax implications of investing in the Funds, this section
includes important details about how the Funds make distributions to
shareholders. We discuss some other Fund policies as well. Please consult the
statement of additional information and your tax advisor for more information
about taxes.
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Dividends, Distributions and Taxes |
The
Funds declare dividends daily and pay 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. Each Fund seeks to pay monthly tax-exempt
dividends at a level rate that reflects the past and projected net income of the
Fund. To help maintain more stable monthly distributions, the distribution paid
by a Fund for any particular monthly period may be more or less than the amount
of net income actually earned by the Fund during such period, and any such
under- (or over-) distribution of income is reflected in the Fund’s net asset
value. This policy is designed to result in the distribution of substantially
all of a Fund’s net income over time. The Funds declare and pay any taxable
capital gains or other taxable distributions once a year at year end. The Funds
may declare and pay dividends, capital gains or other taxable distributions more
frequently, if necessary or appropriate in the Board's discretion.
Payment
and Reinvestment Options
The
Funds automatically reinvest your dividends in additional Fund shares unless you
request otherwise. You may request to have your dividends paid to you by check,
sent via electronic funds transfer through Automated Clearing House network or
reinvested in shares of another Nuveen mutual fund. For further information,
contact your financial advisor or call Nuveen Funds at (800) 257-8787. If you
request that your distributions be paid by check but those distributions cannot
be delivered because of an incorrect mailing address, or if a distribution check
remains uncashed for six months, the undelivered or uncashed distributions and
all future distributions will be reinvested in Fund shares at the current net
asset value.
Taxes
and Tax Reporting
Because
the Funds invest 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 on individuals. For tax years beginning
after December 31, 2022, exempt-interest dividends may affect the federal
corporate alternative minimum tax for certain corporations.
Generally
the Funds do not seek to realize taxable income or capital gains. However, the
Funds may realize and distribute taxable income or capital gains from time to
time as a result of each Fund’s normal investment activities. The Funds’
distributions of these amounts are taxed as ordinary income or capital gains and
are taxable whether received in cash or reinvested in additional shares.
Distributions from the Funds’ 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 Funds’ taxable
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61 |
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.
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. If you hold your
investment at the firm where you purchased your Fund shares, you will receive
the statement from that firm. If you hold your shares directly with the Fund,
the Distributor will send you the statement. The tax status of your
distributions is the same whether you reinvest them or elect to receive them in
cash.
If
you receive social security or railroad retirement benefits, you should consult
your tax advisor about how an investment in the Funds may affect the taxation of
your benefits.
Each
sale or exchange of Fund shares may be a taxable event. When you exchange shares
of one Nuveen mutual fund for shares of a different Nuveen mutual fund, the
exchange is treated the same as a sale for tax purposes. A sale may result in
capital gain or loss to you. The gain or loss generally will be treated as
short-term if you held the shares for 12 months or less and long-term if you
held the shares for more than 12 months at the time of disposition.
Please
note that if you do not furnish your Fund with your correct Social Security
number or employer identification number, you fail to provide certain
certifications to your Fund, you fail to certify whether you are a U.S. citizen
or a U.S. resident alien, or the Internal Revenue Service notifies the Fund to
withhold, federal law requires your Fund to withhold federal income tax from
your distributions and redemption proceeds at the applicable withholding
rate.
Buying
or Selling Shares Close to a Record Date
Buying
Fund 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.
Non-U.S.
Investors
The
Funds are offered for sale in the United States and are not widely available
outside the United States. Non-U.S. investors should be aware that U.S.
withholding and estate taxes and certain U.S. tax reporting requirements may
apply to any investment in a Fund.
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 a Fund, please contact Nuveen Funds at (800) 257-8787 for
instructions on how to make your election. If you hold your account with a
financial intermediary, please contact that financial intermediary for
instructions on how to make your election. If you hold your account directly
with a Fund 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 Fund shares that
may have been purchased at different times for different prices. Financial
intermediaries choose their own default cost basis method.
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General Information |
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
Funds 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:
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Taxable
Equivalents of Tax-Free Yields |
To
Equal a Tax-Free Yield of: |
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