Nuveen Investment Funds, Inc.
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Mutual
Funds |
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29
December 2023 |
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Fund
Name |
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Class
A |
Class
C |
Class
R6 |
Class
I |
Nuveen
Credit Income Fund |
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FJSIX |
FCSIX |
— |
FJSYX |
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Nuveen
Flexible Income Fund |
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NWQAX |
NWQCX |
NQWFX |
NWQIX |
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Nuveen
Floating Rate Income Fund |
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NFRAX |
NFFCX |
NFRFX |
NFRIX |
Nuveen
High Yield Income Fund |
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NCOAX |
NCFCX |
NCSRX |
NCOIX |
Nuveen
Preferred Securities and Income Fund |
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NPSAX |
NPSCX |
NPSFX |
NPSRX |
Nuveen
Strategic Income Fund |
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FCDDX |
FCBCX |
FSFRX |
FCBYX |
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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 and Waivers
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
Credit Income Fund
Investment
Objective
The
investment objective of the Fund is to provide total return, with an emphasis on
a high level of current income.
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 82 of the
Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-76 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
I |
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Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
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4.75% |
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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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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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Exchange
Fee |
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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)2 |
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$15 |
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$15 |
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$15 |
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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
I |
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Management
Fees |
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0.60 |
% |
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0.60 |
% |
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0.60 |
% |
Distribution
and/or Service (12b-1) Fees |
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0.25 |
% |
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1.00 |
% |
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0.00 |
% |
Other
Expenses |
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Interest
and Related Expenses3 |
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0.01 |
% |
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0.01 |
% |
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0.01 |
% |
Remainder
of Other Expenses |
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0.37 |
% |
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0.37 |
% |
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0.37 |
% |
Acquired
Fund Fees and Expenses |
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0.02 |
% |
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0.02 |
% |
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0.02 |
% |
Total
Annual Fund Operating Expenses |
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1.25 |
% |
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2.00 |
% |
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1.00 |
% |
Fee
Waivers and/or Expense Reimbursements4 |
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(0.22 |
)% |
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(0.22 |
)% |
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(0.22 |
)% |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
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1.03 |
% |
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1.78 |
% |
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0.78 |
% |
1 The contingent deferred
sales charge on Class C shares applies only to redemptions within 12 months of
purchase.
2 Fee applies to the following types of accounts
under $1,000 held directly with the Fund: individual retirement accounts (IRAs),
Coverdell Education Savings Accounts and accounts established pursuant to the
Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act
(UGMA).
3 Includes interest expense and fees paid on
Fund borrowings.
4 The Fund’s investment adviser has agreed to
waive fees and/or reimburse expenses through July 31,
2025 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 0.75% of the
average daily net assets of any class of Fund shares. This expense limitation
may be terminated or modified prior to July 31, 2025 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 $10,000 in the Fund for the time periods indicated and then either
redeem or do not redeem your shares at the end of a period. The example also
assumes that your investment has a 5%
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2 |
Section
1
Fund Summaries |
return
each year, that the Fund’s operating expenses remain the same and that the fee
waivers currently in place are not renewed beyond July 31, 2025. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
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Class
A |
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Class
C |
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Class
I |
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1
Year |
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$ |
575 |
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$ |
181 |
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$ |
80 |
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3
Years |
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$ |
819 |
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$ |
593 |
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$ |
283 |
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5
Years |
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$ |
1,096 |
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$ |
1,045 |
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$ |
518 |
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10
Years |
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$ |
1,885 |
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$ |
2,299 |
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$ |
1,192 |
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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
86% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of the sum of its net assets
and the amount of any borrowings for investment purposes in credit and
credit-related instruments. Credit and credit-related instruments include, but
are not limited to:
· domestic
and foreign corporate debt obligations, including bonds, notes, debentures,
commercial paper and other obligations of corporations to pay interest and repay
principal;
· fixed
and floating rate loans, including senior loans and secured and unsecured junior
loans, in an amount not to exceed 30% of the Fund’s net
assets;
· residential
and commercial mortgage-backed
securities;
· asset-backed
securities;
· preferred
securities and contingent capital securities (sometimes referred to as
“CoCos”)
in an aggregate amount not to exceed 20% of the Fund’s net
assets;
· interests
in senior, mezzanine, and subordinated/equity classes or “tranches” of
collateralized loan obligations (“CLOs”);
· U.S.
government securities (securities issued or guaranteed by the U.S. government or
its agencies or instrumentalities);
and
· debt
obligations of foreign
governments.
The
Fund will invest at least 65% of its assets in securities rated lower than
investment grade at the time of purchase or in unrated bonds of comparable
quality as determined by the Fund’s sub-adviser (securities commonly referred to
as “high yield” securities or “junk” bonds). There is no minimum rating
requirement and no limitation on the average maturity or average effective
duration of securities held by the Fund.
The
Fund may invest without limitation in debt obligations of foreign corporations
and governments. However, no more than 30% of the Fund’s total assets may be
invested in securities of governmental and corporate issuers that are located in
emerging market countries.
The
Fund may invest in securities that have not been registered under the Securities
Act of 1933, as amended (the “Securities
Act”)
(“restricted
securities”),
including securities sold in private placement transactions between issuers and
their purchasers and securities that meet the requirements of Rule 144A under
the Securities Act (“Rule
144A securities”).
Rule 144A securities may be resold under certain circumstances only to qualified
institutional buyers as defined by the
rule.
The
Fund may invest in exchange-traded funds (“ETFs”),
closed-end funds, and other investment companies (“investment
companies”).
The
Fund’s sub-adviser makes buy, sell, and hold decisions using a “top-down”
approach, which begins with the formulation of the sub-adviser’s general
economic outlook. Following this, various sectors and industries are analyzed
and selected for investment. Finally, the sub-adviser selects individual
securities within these sectors or industries. The sub-adviser also analyzes
expected changes to the yield curve under multiple market conditions to help
define maturity and duration selection.
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Section
1
Fund Summaries |
3 |
The
Fund may utilize the following derivatives: options; futures contracts; options
on futures contracts; foreign currency contracts; options on foreign currencies;
swap agreements, including interest rate swaps, currency swaps, total return
swaps and credit default swaps; and options on swap agreements. The Fund may use
these derivatives in an attempt to manage market risk, currency risk, credit
risk and yield curve risk, to manage the effective maturity or duration of
securities in the Fund’s portfolio or for speculative purposes in an effort to
increase the Fund’s yield or to enhance returns. The use of a derivative is
speculative if the Fund is primarily seeking to enhance returns, rather than
offset the risk of other positions.
Principal
Risks
The value of your investment in 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.
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding debt securities 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.
Collateralized
Loan Obligations Risk—A
CLO is an asset-backed security whose underlying collateral is a pool of loans,
which may include, among others, domestic and foreign floating rate and fixed
rate senior secured loans, senior unsecured loans, and subordinate corporate
loans, including loans that may be rated below investment grade. In addition to
the risks associated with loans and high yield securities, CLOs are subject to
the risk that distributions from the collateral may not be adequate to make
interest or other payments; the quality of the collateral may decline in value
or default; the Fund may invest in tranches of CLOs that are subordinate to
other tranches; and the CLO’s manager may perform poorly. CLOs may charge
management and other administrative fees, which are in addition to those of the
Fund.
Contingent
Capital Security Risk—CoCos
have loss absorption mechanisms benefitting the issuer built into their terms.
Upon the occurrence of a specified trigger or event, CoCos may be subject to
automatic conversion into the issuer’s common stock, which likely will have
declined in value and which will be subordinate to the issuer’s other classes of
securities, or to an automatic write-down of the principal amount of the
securities, potentially to zero, which could result in the Fund losing a portion
or all of its investment in such securities. CoCos are often rated below
investment grade and are subject to the risks of high yield
securities.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a security may be,
or perceived (whether by market participants, rating agencies, pricing services
or otherwise) to be, unable or unwilling to make dividend, interest and
principal payments when due and the related risk that the value of a security
may decline because of concerns about the issuer’s ability or willingness to
make such payments. Because the Fund invests at least 65% of the value of its
assets in high yield securities, the Fund's credit risks are greater than those
of funds that buy only investment grade
securities.
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
debt 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.
Currency
Risk—Changes
in currency exchange rates will affect the value of non-U.S. securities, the
value of dividends and interest earned from such securities, gains and losses
realized on the sale of such securities, and derivative transactions tied to
such securities. A strong U.S. dollar relative to these other currencies will
adversely affect the value of the Fund’s portfolio.
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
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4 |
Section
1
Fund Summaries |
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.
Emerging
Markets Risk—The
risk of foreign investment often increases in countries with emerging markets or
that are otherwise economically tied to emerging market countries. For example,
these countries may have more unstable governments than developed countries and
their economies may be based on only a few industries. Emerging market countries
may also have less stringent regulation of accounting, auditing, financial
reporting and recordkeeping requirements, which would affect the Fund’s ability
to evaluate potential portfolio companies. As a result, there could be less
information about issuers in emerging market countries, which could negatively
affect the ability of the Fund’s sub-adviser to evaluate local companies or
their potential impact on the Fund’s performance. Because their financial
markets may be very small, prices of financial instruments in emerging market
countries may be volatile and difficult to determine. Financial instruments of
issuers in these countries may have lower overall liquidity than those of
issuers in more developed countries. In addition, foreign investors such as the
Fund are subject to a variety of special restrictions in many emerging market
countries. Shareholder claims and regulatory actions that are available in the
U.S. may be difficult or impossible to pursue in emerging market
countries.
ETF
Risk—An
ETF is subject to the risks of the underlying securities that it holds. In
addition, for index-based ETFs, the performance of an ETF may diverge from the
performance of such index (commonly known as tracking error). ETFs are subject
to fees and expenses (like management fees and operating expenses) that do not
apply to an index, and the Fund will indirectly bear its proportionate share of
any such fees and expenses paid by the ETFs in which it invests. Moreover, ETF
shares may trade at a premium or discount to their net asset value. As ETFs
trade on an exchange, they are subject to the risks of any exchange-traded
instrument, including: (i) an active trading market for its shares may not
develop or be maintained, (ii) market makers or authorized participants may
decide to reduce their role or step away from these activities in times of
market stress, (iii) trading of its shares may be halted by the exchange, and
(iv) its shares may be delisted from the exchange.
Foreign
Investment Risk—Non-U.S.
issuers or U.S. issuers with significant non-U.S. operations may be subject to
risks in addition to those of issuers located in or that principally operate in
the United States as a result of, among other things, political, social and
economic developments abroad, as well as armed conflicts and different legal,
regulatory and tax environments. Foreign investments may also have lower
liquidity and be more difficult to value than investments in U.S. issuers. To
the extent the Fund invests a significant portion of its assets in the
securities of companies in a single country or region, it may be more
susceptible to adverse conditions affecting that country or region. Foreign
investments may also be subject to risk of loss because of more or less foreign
government regulation, less public information, less stringent investor
protections and less stringent accounting, corporate governance, financial
reporting and disclosure standards.
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.
Illiquid
Investments Risk—Certain
securities held by the Fund are illiquid investments, which may be difficult to
sell for the value at which they are carried, if at all, or at any price within
the desired time frame.
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Section
1
Fund Summaries |
5 |
Income
Risk—The
Fund's income could decline during periods of falling interest rates or when the
Fund experiences defaults on debt securities or defaults or deferrals on
preferred securities it holds.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s fixed-rate securities 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. Fixed-rate securities 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 fixed-rate securities usually change more than the values of
shorter-duration fixed-rate securities. Conversely, fixed-rate securities with
shorter durations or maturities will be less volatile but may provide lower
returns than fixed-rate securities with longer durations or maturities. Rising
interest rates also may lengthen the duration of securities 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.
Loan
Risk—The
lack of an active trading market for certain loans (including loan
participations and assignments) may impair the ability of the Fund to realize
full value in the event of the need to sell a loan and may make it difficult to
value such loans. Portfolio transactions in loans may settle in as short as
seven days but typically can take up to two or three weeks, and in some cases
much longer. As a result of these extended settlement periods, the Fund may
incur losses if it is required to sell other investments or temporarily borrow
to meet its cash needs, including satisfying redemption requests. The risks
associated with unsecured loans, which are not backed by a security interest in
any specific collateral, are higher than those for comparable loans that are
secured by specific collateral. For secured loans, there is a risk that the
value of any collateral securing a loan in which the Fund has an interest may
decline and that the collateral may not be sufficient to cover the amount owed
on the loan. Interests in loans made to finance highly leveraged companies or
transactions such as corporate acquisitions may be especially vulnerable to
adverse changes in economic or market conditions. Loans may have restrictive
covenants limiting the ability of a borrower to further encumber its assets.
However, in periods of high demand by lenders like the Fund for loan
investments, borrowers may limit these covenants and weaken a lender’s ability
to access collateral securing the loan; reprice the credit risk associated with
the borrower; and mitigate potential loss. The Fund may experience relatively
greater realized or unrealized losses or delays and expenses in enforcing its
rights with respect to loans with fewer restrictive covenants. Additionally,
loans may not be considered “securities” and, as a result, the Fund may not be
entitled to rely on the anti-fraud or other protections of the securities laws.
Because junior loans have a lower place in an issuer’s capital structure and may
be unsecured, junior loans involve a higher degree of overall risk than senior
loans of the issuer. The Fund's investments in floating rate loans that pay
interest based on the London Interbank Offered Rate (LIBOR) may experience
increased volatility and/or illiquidity during the transition away from LIBOR,
which was phased out.
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.
Market
Liquidity Risk—Reductions
in trading activity or dealer inventories of securities such as bonds and
preferred securities, which provide an indication of the ability of financial
intermediaries to “make markets” in those securities, have the potential to
decrease liquidity and increase price volatility in the markets in which the
Fund invests, particularly during periods of economic or market stress. In
addition, federal banking regulations may cause certain dealers to reduce their
inventories of securities, which may further decrease the Fund’s ability to buy
or sell securities. As a result of this decreased liquidity, the Fund may have
to accept a lower price to sell a security, sell other securities to raise cash,
or give up an investment opportunity, any of which could have a negative effect
on performance. If the Fund needed to sell large blocks of securities to meet
shareholder redemption requests or to raise cash, those sales could further
reduce the securities’ prices and hurt performance.
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6 |
Section
1
Fund Summaries |
Mortgage-
and Asset-Backed Securities Risk—These
securities generally can be prepaid at any time, and prepayments that occur
either more quickly or more slowly than expected can adversely impact the value
of such securities. They are also subject to extension risk, which is the risk
that rising interest rates could cause mortgages or other obligations underlying
the securities to be prepaid more slowly than expected, thereby lengthening the
duration of such securities, increasing their sensitivity to interest rate
changes and causing their prices to decline. Mortgage-backed securities are
particularly sensitive to prepayment risk, given that the term to maturity for
mortgage loans is generally substantially longer than the expected lives of
those securities. A mortgage-backed security may be negatively affected by the
quality of the mortgages underlying such security, the credit quality of its
issuer or guarantor, and the nature and structure of its credit support.
Mortgage- and asset-backed securities that are not backed by the full faith and
credit of the U.S. government are subject to the risk of default on the
underlying mortgage, loan or asset, particularly during periods of economic
downturn.
Other
Investment Companies Risk—When
the Fund invests in other investment companies, including ETFs, you bear both
your proportionate share of Fund expenses and, indirectly, the expenses of the
other investment companies. Furthermore, the Fund is exposed to the risks to
which the other investment companies may be subject.
Preferred
Security Risk—Preferred
securities generally are subordinated to bonds and other debt instruments in a
company’s capital structure and therefore will be subject to greater credit risk
than those debt instruments. In addition, preferred securities are subject to
other risks, such as having no or limited voting rights, being subject to
special redemption rights, having distributions deferred or skipped, having
floating interest rates or dividends, which may result in a decline in value in
a falling interest rate environment, having fixed interest rates or dividends,
which may result in a decline in value in a rising interest rate environment,
having limited liquidity, changing or unfavorable tax treatments and possibly
being issued by companies in heavily regulated
industries.
Restricted
Securities Risk—The
market for restricted securities, including Rule 144A securities, typically is
less active than the market for publicly traded securities. Rule 144A securities
and other securities exempt from registration under the Securities Act carry the
risk that their liquidity may become impaired and the Fund may be unable to
dispose of the securities promptly or at current market
value.
Sovereign
Debt Risk—Sovereign
debt instruments are subject to the risk that a governmental entity may delay or
refuse to pay interest or repay principal on its sovereign debt. This may be due
to, for example, cash flow problems, insufficient foreign currency reserves,
political considerations, the relative size of the governmental entity’s debt
position in relation to the economy or the failure to put in place economic
reforms required by the International Monetary Fund or other multilateral
agencies.
Unrated
Security Risk—Unrated
securities determined by the Fund’s sub-adviser to be of comparable quality to
rated securities which the Fund may purchase may pay a higher interest rate than
such rated securities and be subject to a greater risk of illiquidity or price
changes. Less public information is typically available about unrated securities
or issuers than rated securities or issuers.
U.S.
Government Securities Risk—U.S.
government securities are guaranteed only as to the timely payment of interest
and the payment of principal when held to maturity. Accordingly, the current
market values for these securities will fluctuate with changes in interest
rates. Securities issued or guaranteed by U.S. government agencies and
instrumentalities are supported by varying degrees of credit but generally are
not backed by the full faith and credit of the U.S. government or may be subject
to certain limitations. No assurance can be given that the U.S. government will
provide financial support to its agencies and instrumentalities if it is not
obligated by law to do so, which may increase the risk of loss to the
Fund.
Valuation
Risk—The
sales price the Fund could receive for any particular security 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 debt securities 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 debt securities 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
|
|
Section
1
Fund Summaries |
7 |
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.
Fund
Performance
The
following bar chart and table provide some indication of the potential risks of
investing in the Fund. The
Fund’s performance information prior to July 7, 2020 reflects the Fund’s
performance using an investment objective and investment strategies that
differed from those currently in place. In
view of these changes, the Fund’s performance record prior to this date might be
less pertinent for investors considering whether to purchase shares of 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 September
30, 2023 was 6.66%. The performance of the other share classes
will differ due to their different expense
structures.
During
the ten-year period ended December 31, 2022, the Fund’s highest and lowest quarterly returns
were 10.49%
and
-18.29%, respectively, for the quarters ended
June 30, 2020 and March 31,
2020.
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. After-tax returns are not
relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs
or employer-sponsored retirement
plans.
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.
|
|
8 |
Section
1
Fund Summaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual
Total Returns |
|
|
for the Periods
Ended |
|
|
December 31,
2022 |
|
|
1
Year |
5
Years |
10
Years |
Class
A (return before taxes) |
|
(14.91 |
)% |
|
(0.01 |
)% |
|
2.19 |
% |
Class
A (return after taxes on distributions) |
|
(16.63 |
)% |
|
(2.13 |
)% |
|
(0.47 |
)% |
Class
A (return after taxes on distributions and sale of Fund shares) |
|
(8.77 |
)% |
|
(0.83 |
)% |
|
0.52 |
% |
Class
C (return before taxes) |
|
(11.31 |
)% |
|
0.21 |
% |
|
2.07 |
% |
Class
I (return before taxes) |
|
(10.33 |
)% |
|
1.20 |
% |
|
2.94 |
% |
Bloomberg
U.S. Corporate High Yield 2% Issuer Capped Bond Index1 |
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
(11.18 |
)% |
|
2.30 |
% |
|
4.03 |
% |
Lipper
Global High Yield Funds Category Average2 |
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
(11.06 |
)% |
|
1.06 |
% |
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
issuer-constrained version of the U.S. Corporate High Yield Bond Index,
which is an index designed to measure the performance of USD-denominated,
fixed-rate corporate high yield bond market that limits each issuer to 2%
of the index. |
2 |
Represents
the average annualized total return for all reporting funds in the Lipper
Global High Yield Funds
Category. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
|
Jean
C. Lin, CFA |
Managing
Director |
January
2019 |
Karina
Bubeck, CFA |
Managing
Director |
July
2020 |
Aashh
Parekh, CFA |
Managing
Director |
July
2020 |
Brenda
A. Langenfeld, CFA |
Managing
Director |
August
2020 |
|
Mark
Zheng, CFA |
Senior
Director |
March
2023 |
|
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through
a financial advisor or other financial intermediary. 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 |
$3,000
for all accounts except:
• $2,500
for Traditional/ Roth
IRA accounts.
• $2,000
for Coverdell Education
Savings Accounts.
• $250
for accounts opened through fee-based programs.
• No
minimum for retirement plans. |
Available
only through fee-based programs and certain retirement plans, 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 eligible retirement plans and certain other categories of
eligible investors as described in the prospectus. |
Minimum Additional Investment |
$100 |
No
minimum. |
Tax
Information
The
Fund’s distributions are taxable and will generally be taxed as ordinary income
or capital gains, unless you are investing through a tax-deferred account, such
as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your
investment from such account).
|
|
Section
1
Fund Summaries |
9 |
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.
|
|
10 |
Section
1
Fund Summaries |
Nuveen
Flexible Income Fund
Investment
Objective
The
Fund seeks to provide current income and capital appreciation.
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 82 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares”
on page S-71 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
R6 |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
4.75% |
|
None |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
None |
|
1.00% |
|
None |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
None |
|
None |
|
None |
|
None |
|
Exchange
Fee |
None |
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000)2 |
$15 |
|
$15 |
|
None |
|
$15 |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
Management
Fees |
|
0.68 |
% |
|
0.68 |
% |
|
0.68 |
% |
|
0.68 |
% |
Distribution
and/or Service (12b-1) Fees |
|
0.25 |
% |
|
1.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
0.10 |
% |
|
0.10 |
% |
|
0.04 |
% |
|
0.10 |
% |
Total
Annual Fund Operating Expenses |
|
1.03 |
% |
|
1.78 |
% |
|
0.72 |
% |
|
0.78 |
% |
Fee
Waivers and/or Expense Reimbursements3 |
|
(0.07 |
)% |
|
(0.07 |
)% |
|
(0.07 |
)% |
|
(0.07 |
)% |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
0.96 |
% |
|
1.71 |
% |
|
0.65 |
% |
|
0.71 |
% |
1 The
contingent deferred sales charge on Class C shares applies only to redemptions
within 12 months of purchase.
2 Fee
applies to the following types of accounts under $1,000 held directly with the
Fund: individual retirement accounts (IRAs), Coverdell Education Savings
Accounts and accounts established pursuant to the Uniform Transfers to Minors
Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3 The
Fund’s investment adviser has agreed to waive fees and/or reimburse expenses 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 0.75% through July 31, 2025 or 1.25%
after July 31, 2025 of the average daily net assets of any class of Fund shares.
However, because Class R6 shares are not subject to sub-transfer agent and
similar fees, the total annual operating expenses for the Class R6 shares will
be less than the expense limitation. The expense limitation expiring July 31,
2025 may be terminated or modified prior to that date only with the approval of
the Board of Trustees of the Fund. The expense limitation in effect thereafter
may be terminated or modified only with the approval of shareholders 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 and that the Fund’s
operating expenses are at the lesser of Total Annual Fund Operating Expenses or
the applicable expense limitation. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
Section
1
Fund Summaries |
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
1
Year |
$ |
568 |
|
$ |
174 |
|
$ |
66 |
|
$ |
73 |
|
3
Years |
$ |
777 |
|
$ |
549 |
|
$ |
219 |
|
$ |
238 |
|
5
Years |
$ |
1,006 |
|
$ |
954 |
|
$ |
389 |
|
$ |
422 |
|
10
Years |
$ |
1,665 |
|
$ |
2,085 |
|
$ |
884 |
|
$ |
956 |
|
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 26%
of the average value of its portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Fund invests at least 80% of its net assets in
income producing debt, preferred and convertible securities. Debt securities in
which the Fund invests include corporate debt securities, mortgage-backed
securities, taxable municipal securities and U.S. government and agency debt
securities.
The
Fund may invest without limit in below-investment-grade securities, commonly
referred to as “high yield” securities or “junk” bonds.
The
Fund may invest up to 10% of its net assets in equity securities other than
preferred securities, including common stocks, real estate investment trusts
(“REITs”),
depositary receipts and other types of securities with equity characteristics.
The Fund may write covered call options on equity securities to generate
additional income. To manage market risk and credit risk in its portfolio, the
Fund may make short sales of equity securities and may utilize derivatives,
including credit default swap agreements. The Fund’s short sales may equal up to
10% of the value of the Fund’s net assets. The Fund may use all or a portion of
the proceeds of its short sales to purchase additional portfolio
securities.
The
Fund’s investments may include debt securities, preferred units and common units
issued by master limited partnerships (“MLPs”),
provided that the Fund may not invest more than 10% of its net assets in common
units of MLPs.
The
Fund may invest in securities that have not been registered under the Securities
Act of 1933, as amended (the “Securities
Act”)
(“restricted
securities”),
including securities sold in private placement transactions between issuers and
their purchasers and securities that meet the requirements of Rule 144A under
the Securities Act (“Rule
144A securities”).
Rule 144A securities may be resold under certain circumstances only to qualified
institutional buyers as defined by the rule.
The
Fund may invest up to 50% of its net assets in dollar-denominated securities
issued by non-U.S. companies.
The
Fund’s sub-adviser employs a rigorous, bottom-up research-focused investment
process that seeks to identify undervalued companies with positive risk/reward
characteristics and the potential for downside protection. The sub-adviser’s
investment process focuses on the attractiveness of a particular security within
a company’s capital structure. The sub-adviser may choose to sell securities or
reduce positions if it feels that a company no longer possesses favorable
risk/reward characteristics, attractive valuations or catalysts, if it
identifies better alternatives within a company’s capital structure, or if a
company suspends or is projected to suspend its dividend or interest
payments.
Principal
Risks
The
value of your investment in 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.
|
|
12 |
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 debt securities 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.
Convertible
Security Risk—Convertible
securities are subject to certain risks of both equity and debt securities. The
value of convertible securities may decline in response to such factors as
rising interest rates and fluctuations in the market price of the common stock
underlying the convertible securities.
Covered
Call Risk—Covered
call risk includes the risk that the Fund, as a writer of covered call options,
will forgo during an option’s life the opportunity to profit from increases in
the market value of the security covering the call option.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a security may be,
or perceived (whether by market participants, rating agencies, pricing services
or otherwise) to be, unable or unwilling to make dividend, interest and
principal payments when due and the related risk that the value of a security
may decline because of concerns about the issuer’s ability or willingness to
make such payments.
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
debt 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.
Currency
Risk—Even
though the non-U.S. securities held by the Fund are traded in U.S. dollars,
their prices are typically indirectly influenced by currency fluctuations.
Changes in currency exchange rates may affect the Fund’s net asset value, the
value of dividends and interest earned, gains or losses realized on the sale of
securities, and derivative transactions tied to such 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.
Equity
Security Risk—Equity
securities in the Fund’s portfolio may decline significantly in price over short
or extended periods of time, and such declines may occur because of declines in
the equity market as a whole, or because of declines in only a particular
country, company, industry, or sector of the market. From time to time, the Fund
may invest a significant portion of its assets in companies in one or more
related sectors or industries which would make the Fund more vulnerable to
adverse developments affecting such sectors or industries.
Foreign
Investment Risk—Non-U.S.
issuers or U.S. issuers with significant non-U.S. operations may be subject to
risks in addition to those of issuers located in or that principally operate in
the United States as a result of, among other things, political, social and
economic developments abroad, as well as armed conflicts and different legal,
regulatory and tax environments. Foreign investments may also have lower
liquidity and be more difficult to value than investments in U.S. issuers. To
the extent the Fund invests a significant portion of its assets in the
securities of companies in a single country or region, it may be more
susceptible to adverse conditions affecting that country or region. Foreign
investments may also be subject to risk of loss because of more or less foreign
government regulation, less public information, less stringent investor
protections and less stringent accounting, corporate governance, financial
reporting and disclosure standards.
|
|
Section
1
Fund Summaries |
13 |
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 debt securities or defaults or deferrals on
preferred securities it holds.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s fixed-rate securities 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. Fixed-rate securities 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 fixed-rate securities usually change more than the values of
shorter-duration fixed-rate securities. Conversely, fixed-rate securities with
shorter durations or maturities will be less volatile but may provide lower
returns than fixed-rate securities with longer durations or maturities. Rising
interest rates also may lengthen the duration of securities 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.
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.
Market
Liquidity Risk—Reductions
in trading activity or dealer inventories of securities such as bonds and
preferred securities, which provide an indication of the ability of financial
intermediaries to “make markets” in those securities, have the potential to
decrease liquidity and increase price volatility in the markets in which the
Fund invests, particularly during periods of economic or market stress. In
addition, federal banking regulations may cause certain dealers to reduce their
inventories of securities, which may further decrease the Fund’s ability to buy
or sell securities. As a result of this decreased liquidity, the Fund may have
to accept a lower price to sell a security, sell other securities to raise cash,
or give up an investment opportunity, any of which could have a negative effect
on performance. If the Fund needed to sell large blocks of securities to meet
shareholder redemption requests or to raise cash, those sales could further
reduce the securities’ prices and hurt performance.
Master
Limited Partnership Risk—Investments
in common units of MLPs involve risks that differ from investments in common
stock, including risks related to limited control and limited rights to vote. An
investment in an MLP also exposes the Fund to the legal and tax risks associated
with investing in partnerships. MLPs may have limited financial resources, their
securities may be relatively illiquid, and they may be subject to more erratic
price movements because of the underlying assets they hold.
Mortgage-Backed
Securities Risk—These
securities generally can be prepaid at any time, and prepayments that occur
either more quickly or more slowly than expected can adversely impact the value
of such securities. They are also subject to extension risk, which is the risk
that rising interest rates could cause mortgages underlying the securities to be
prepaid more slowly than expected, thereby lengthening the duration of such
securities, increasing their sensitivity to interest rate changes and causing
their prices to decline. Mortgage-backed securities are particularly sensitive
to prepayment risk, given that the term to maturity for mortgage loans is
generally substantially longer than the expected lives of those securities. A
mortgage-backed security may be negatively affected by the quality of the
mortgages underlying such security, the credit quality of its issuer or
guarantor, and the nature and structure of its credit support. Mortgage-backed
securities that are not backed by the full faith and credit of the U.S.
government are subject to the risk of default on the underlying mortgage,
particularly during periods of economic downturn.
|
|
14 |
Section
1
Fund Summaries |
Municipal
Securities Risk—The
values of municipal securities held by the Fund may be adversely affected by
local political and economic conditions and developments. Adverse conditions in
an industry significant to a local economy could have a correspondingly adverse
effect on the financial condition of local issuers. 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.
Preferred
Security Risk—Preferred
securities generally are subordinated to bonds and other debt instruments in a
company’s capital structure and therefore will be subject to greater credit risk
than those debt instruments. In addition, preferred securities are subject to
other risks, such as having no or limited voting rights, being subject to
special redemption rights, having distributions deferred or skipped, having
floating interest rates or dividends, which may result in a decline in value in
a falling interest rate environment, having fixed interest rates or dividends,
which may result in a decline in value in a rising interest rate environment,
having limited liquidity, changing or unfavorable tax treatments and possibly
being issued by companies in heavily regulated industries.
Restricted
Securities Risk—The
market for restricted securities, including Rule 144A securities, typically is
less active than the market for publicly traded securities. Rule 144A securities
and other securities exempt from registration under the Securities Act carry the
risk that their liquidity may become impaired and the Fund may be unable to
dispose of the securities promptly or at current market value.
Short
Sales Risk—Short
sales involve the sale of a security the Fund has borrowed, with the expectation
that the security will underperform the market. Short sales expose the Fund to
the risk that it will be required to buy the security sold short (also known as
“covering” the short position) at a time when the security has appreciated in
value, thus resulting in a loss to the Fund. Although the gain is limited by the
price at which the security was sold short, the loss is potentially unlimited.
To the extent the Fund invests the proceeds received from selling securities
short in additional portfolio securities, the Fund is engaging in a form of
leverage. The use of leverage may increase the Fund’s exposure to long positions
and make any change in the Fund’s net asset value greater than it would be
without the use of leverage. This could result in increased volatility of
returns. The use of short sales may also cause the Fund to have higher expenses
than other funds.
Unrated
Security Risk—Unrated
securities determined by the Fund’s sub-adviser to be of comparable quality to
rated securities which the Fund may purchase may pay a higher interest rate than
such rated securities and be subject to a greater risk of illiquidity or price
changes. Less public information is typically available about unrated securities
or issuers than rated securities or issuers.
U.S.
Government Securities Risk—U.S.
government securities are guaranteed only as to the timely payment of interest
and the payment of principal when held to maturity. Accordingly, the current
market values for these securities will fluctuate with changes in interest
rates. Securities issued or guaranteed by U.S. government agencies and
instrumentalities are supported by varying degrees of credit but generally are
not backed by the full faith and credit of the U.S. government or may be subject
to certain limitations. No assurance can be given that the U.S. government will
provide financial support to its agencies and instrumentalities if it is not
obligated by law to do so, which may increase the risk of loss to the
Fund.
Valuation
Risk—The
sales price the Fund could receive for any particular security 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 debt securities 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 debt securities 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.
|
|
Section
1
Fund Summaries |
15 |
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 September 30, 2023 was 1.65%. The
performance of the other share classes will differ due to their different
expense structures.
During
the ten-year period ended December 31, 2022, the Fund’s highest and lowest
quarterly returns were 9.56%
and
-12.66%, respectively, for the quarters ended June 30, 2020 and March 31,
2020.
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 broad measures 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. After-tax
returns are not relevant to investors who hold Fund shares in tax-deferred
accounts such as IRAs or employer-sponsored retirement plans.
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.
|
|
16 |
Section
1
Fund Summaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
|
|
|
|
for
the Periods Ended |
|
|
|
|
|
December
31, 2022 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
R6) |
Class
A (return before taxes) |
|
12/9/09 |
|
|
(18.19 |
)% |
|
0.42 |
% |
|
3.04 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
(19.93 |
)% |
|
(1.47 |
)% |
|
1.08 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
(10.48 |
)% |
|
(0.29 |
)% |
|
1.63 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
12/9/09 |
|
|
(14.74 |
)% |
|
0.65 |
% |
|
2.93 |
% |
|
N/A |
|
Class
R6 (return before taxes) |
|
6/30/16 |
|
|
(13.85 |
)% |
|
1.78 |
% |
|
N/A |
|
|
3.32
|
% |
Class
I (return before taxes) |
|
12/9/09 |
|
|
(13.91 |
)% |
|
1.65 |
% |
|
3.81 |
% |
|
N/A |
|
Bloomberg
U.S. Aggregate Bond Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
(13.01 |
)% |
|
0.02 |
% |
|
1.06 |
% |
|
0.16 |
% |
Flexible
Income Blended Benchmark2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
(13.29 |
)% |
|
1.37 |
% |
|
3.01 |
% |
|
2.56 |
% |
Lipper
Flexible Income Funds Category Average3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
(11.73 |
)% |
|
1.50 |
% |
|
3.18 |
% |
|
2.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of the USD-denominated,
fixed-rate, U.S. investment grade taxable bond market. The index includes
Treasuries, government-related and corporate securities, mortgage-backed
securities (MBS), asset-backed securities (ABS) and commercial
mortgage-backed securities (CMBS). |
2 |
An
index comprised of a 50% weighting in ICE BofA US Corporate Index and a
50% weighting in ICE BofA High Yield Index. |
3 |
Represents
the average annualized total return for all reporting funds in the Lipper
Flexible Income Funds Category. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
Thomas
J. Ray, CFA |
Managing
Director |
January
2015 |
Susi
Budiman, CFA |
Managing
Director |
January
2015 |
Stephen
T. Peña |
Managing
Director |
October
2022 |
|
|
Section
1
Fund Summaries |
17 |
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through
a financial advisor or other financial intermediary. 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 |
$3,000
for all accounts except:
• $2,500
for Traditional/ Roth
IRA accounts.
• $2,000
for Coverdell Education
Savings Accounts.
• $250
for accounts opened through fee-based programs.
• No
minimum for retirement plans. |
Available
only to certain qualified retirement plans and other investors as
described in the prospectus and through fee-based programs.
$1
million for all accounts except:
• $100,000
for clients of financial intermediaries who charge such clients an ongoing
fee for advisory, investment, consulting or related services.
• No
minimum for certain qualified retirement plans and certain other
categories of eligible investors as described in the
prospectus. |
Available
only through fee-based programs and certain retirement plans, 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 eligible retirement plans and certain other categories of
eligible investors as described in the prospectus. |
Minimum Additional Investment |
$100 |
No
minimum. |
No
minimum. |
Tax
Information
The
Fund’s distributions are taxable and will generally be taxed as ordinary income
or capital gains, unless you are investing through a tax-deferred account, such
as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your
investment from such account).
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.
|
|
18 |
Section
1
Fund Summaries |
Nuveen
Floating Rate Income Fund
Investment
Objective
The
principal investment objective of the Fund is to seek a high level of current
income and the secondary investment objective of the Fund is to seek capital
appreciation.
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 82 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares”
on page S-62 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
R6 |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
3.00% |
|
None |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
None |
|
1.00% |
|
None |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
None |
|
None |
|
None |
|
None |
|
Exchange
Fee |
None |
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000)2 |
$15 |
|
$15 |
|
None |
|
$15 |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
Management
Fees |
|
0.57 |
% |
|
0.57 |
% |
|
0.57 |
% |
|
0.57 |
% |
Distribution
and/or Service (12b-1) Fees |
|
0.25 |
% |
|
1.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and Related Expenses3 |
|
0.06 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.06 |
% |
Remainder
of Other Expenses |
|
0.14 |
% |
|
0.14 |
% |
|
0.07 |
% |
|
0.14 |
% |
Acquired
Fund Fees and Expenses |
|
0.01 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
0.01 |
% |
Total
Annual Fund Operating Expenses |
|
1.03 |
% |
|
1.78 |
% |
|
0.71 |
% |
|
0.78 |
% |
1 The
contingent deferred sales charge on Class C shares applies only to redemptions
within 12 months of purchase.
2 Fee
applies to the following types of accounts under $1,000 held directly with the
Fund: individual retirement accounts (IRAs), Coverdell Education Savings
Accounts and accounts established pursuant to the Uniform Transfers to Minors
Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3 Includes
interest expense and fees paid on Fund borrowings.
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
R6 |
|
Class
I |
|
1
Year |
$ |
402 |
|
$ |
181 |
|
$ |
73 |
|
$ |
80 |
|
3
Years |
$ |
618 |
|
$ |
560 |
|
$ |
227 |
|
$ |
249 |
|
5
Years |
$ |
852 |
|
$ |
964 |
|
$ |
395 |
|
$ |
433 |
|
10
Years |
$ |
1,522 |
|
$ |
2,095 |
|
$ |
883 |
|
$ |
966 |
|
|
|
Section
1
Fund Summaries |
19 |
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 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 floating rate
securities. Floating rate securities are defined to include floating rate loans,
other floating rate debt securities including corporate debt securities and U.S.
government securities, money market securities and shares of money market and
short-term bond funds. The Fund may invest up to 20% of its net assets in other
securities, which would primarily be fixed rate debt securities of any maturity,
convertible securities and equity securities received as a result of the
restructuring of an issuer’s debt. A substantial portion of the Fund’s assets
generally will be invested in securities rated below investment grade or, if
unrated, deemed by the Fund’s portfolio managers to be of comparable quality.
Below investment-grade securities are commonly referred to as “high yield”
securities or “junk” bonds. The Fund invests both in securities issued by U.S.
companies and in U.S. dollar-denominated securities issued by non-U.S. companies
that are traded over-the-counter or listed on an exchange. Under normal market
conditions, the average effective duration of the Fund’s portfolio will not be
longer than one year. Effective duration is an estimate of how much the value of
a debt security will change with a given change in interest rates.
The
Fund may invest in securities that have not been registered under the Securities
Act of 1933, as amended (the “Securities
Act”)
(“restricted
securities”),
including securities sold in private placement transactions between issuers and
their purchasers and securities that meet the requirements of Rule 144A under
the Securities Act (“Rule
144A securities”).
Rule 144A securities may be resold under certain circumstances only to qualified
institutional buyers as defined by the rule.
The
Fund may utilize the following derivatives: options; futures contracts; options
on futures contracts; swap agreements, including interest rate swaps, total
return swaps, and credit default 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, to manage the effective maturity or duration of securities in
the Fund’s portfolio, including the use of interest rate derivatives to convert
fixed-rate securities to floating rate securities, or for speculative purposes
in an effort to increase the Fund’s yield or to enhance returns. The use of a
derivative is speculative if the Fund is primarily seeking to enhance returns,
rather than offset the risk of other positions.
The
Fund’s sub-adviser bases its investment process on fundamental, bottom-up credit
analysis. Analysts assess sector dynamics, company business models and asset
quality. Inherent in the sub-adviser’s credit analysis process is the evaluation
of potential upside and downside to any credit. As such, the sub-adviser
concentrates its efforts on sectors where there is sufficient transparency to
assess the downside risk and where firms have assets to support meaningful
recovery in case of default. In its focus on downside protection, the
sub-adviser favors opportunities where valuations can be quantified and risks
assessed.
Principal
Risks
The
value of your investment in 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.
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding debt securities 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.
|
|
20 |
Section
1
Fund Summaries |
Convertible
Security Risk—Convertible
securities are subject to certain risks of both equity and debt securities. The
value of convertible securities may decline in response to such factors as
rising interest rates and fluctuations in the market price of the common stock
underlying the convertible securities.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a debt security 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 debt security may
decline because of concerns about the issuer’s ability or willingness to make
such payments.
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
debt 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.
Currency
Risk—Even
though the non-U.S. securities held by the Fund are traded in U.S. dollars,
their prices are typically indirectly influenced by currency fluctuations.
Changes in currency exchange rates may affect the Fund’s net asset value, the
value of dividends and interest earned, gains or losses realized on the sale of
securities, and derivative transactions tied to such 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.
Equity
Security Risk—Equity
securities in the Fund’s portfolio may decline significantly in price over short
or extended periods of time, and such declines may occur because of declines in
the equity market as a whole, or because of declines in only a particular
country, company, industry, or sector of the market. From time to time, the Fund
may invest a significant portion of its assets in companies in one or more
related sectors or industries which would make the Fund more vulnerable to
adverse developments affecting such sectors or industries.
Foreign
Investment Risk—Non-U.S.
issuers or U.S. issuers with significant non-U.S. operations may be subject to
risks in addition to those of issuers located in or that principally operate in
the United States as a result of, among other things, political, social and
economic developments abroad, as well as armed conflicts and different legal,
regulatory and tax environments. Foreign investments may also have lower
liquidity and be more difficult to value than investments in U.S. issuers. To
the extent the Fund invests a significant portion of its assets in the
securities of companies in a single country or region, it may be more
susceptible to adverse conditions affecting that country or region. Foreign
investments may also be subject to risk of loss because of more or less foreign
government regulation, less public information, less stringent investor
protections and less stringent accounting, corporate governance, financial
reporting and disclosure standards.
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.
|
|
Section
1
Fund Summaries |
21 |
Income
Risk—The
Fund's income could decline during periods of falling interest rates or when the
Fund experiences defaults on debt securities it holds. Income risk is generally
higher for limited-term bonds so investors may experience a fluctuation in the
monthly income from the Fund.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s fixed-rate securities 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. Fixed-rate securities 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 fixed-rate securities usually change more than the values of
shorter-duration fixed-rate securities. Conversely, fixed-rate securities with
shorter durations or maturities will be less volatile but may provide lower
returns than fixed-rate securities with longer durations or maturities. Rising
interest rates also may lengthen the duration of securities 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. Because the Fund primarily invests in floating rate loans, interest
rate risk may be reduced. However, floating rate loans are still subject to
interest rate risk, and their values may decrease, if their interest rates do
not reset as quickly as a general rise in interest rates. The Fund is also
subject to the risk that the income generated by its investments may not keep
pace with inflation.
Loan
Risk—The
lack of an active trading market for certain loans (including loan
participations and assignments) may impair the ability of the Fund to realize
full value in the event of the need to sell a loan and may make it difficult to
value such loans. Portfolio transactions in loans may settle in as short as
seven days but typically can take up to two or three weeks, and in some cases
much longer. As a result of these extended settlement periods, the Fund may
incur losses if it is required to sell other investments or temporarily borrow
to meet its cash needs, including satisfying redemption requests. The risks
associated with unsecured loans, which are not backed by a security interest in
any specific collateral, are higher than those for comparable loans that are
secured by specific collateral. For secured loans, there is a risk that the
value of any collateral securing a loan in which the Fund has an interest may
decline and that the collateral may not be sufficient to cover the amount owed
on the loan. Interests in loans made to finance highly leveraged companies or
transactions such as corporate acquisitions may be especially vulnerable to
adverse changes in economic or market conditions. Loans may have restrictive
covenants limiting the ability of a borrower to further encumber its assets.
However, in periods of high demand by lenders like the Fund for loan
investments, borrowers may limit these covenants and weaken a lender’s ability
to access collateral securing the loan; reprice the credit risk associated with
the borrower; and mitigate potential loss. The Fund may experience relatively
greater realized or unrealized losses or delays and expenses in enforcing its
rights with respect to loans with fewer restrictive covenants. Additionally,
loans may not be considered “securities” and, as a result, the Fund may not be
entitled to rely on the anti-fraud or other protections of the securities laws.
Because junior loans have a lower place in an issuer’s capital structure and may
be unsecured, junior loans involve a higher degree of overall risk than senior
loans of the issuer. The Fund’s investments in floating rate loans that pay
interest based on the London Interbank Offered Rate (LIBOR) may experience
increased volatility and/or illiquidity during the transition away from LIBOR,
which was phased out.
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.
Market
Liquidity Risk—Reductions
in trading activity or dealer inventories of securities such as bonds and
preferred securities, which provide an indication of the ability of financial
intermediaries to “make markets” in those securities, have the potential to
decrease liquidity and increase price volatility in the markets in which the
Fund invests, particularly during periods of economic or market stress. In
addition, federal banking regulations may cause certain dealers to reduce their
inventories of securities, which may further decrease the Fund’s ability to buy
or sell securities. As a result of this decreased liquidity, the Fund may have
to accept a lower price to sell a security, sell other securities to raise cash,
or give up an investment opportunity, any of which could have a negative effect
on performance. If the Fund needed to sell large
|
|
22 |
Section
1
Fund Summaries |
blocks
of securities to meet shareholder redemption requests or to raise cash, those
sales could further reduce the securities’ prices and hurt performance.
Money
Market Fund Risk—An
investment in a money market fund is not a bank deposit and is not insured or
guaranteed by any bank, the FDIC or any other government agency. It is possible
for the Fund to lose money by investing in money market funds. If the liquidity
of a money market fund’s portfolio deteriorates below certain levels, the money
market fund may suspend redemptions or impose a fee of up to 2% on amounts the
Fund redeems from the money market fund. These measures may result in an
investment loss or prohibit the Fund from redeeming shares. Additionally, the
Fund indirectly bears the fees and expenses of any money market funds in which
it invests.
Restricted
Securities Risk—The
market for restricted securities, including Rule 144A securities, typically is
less active than the market for publicly traded securities. Rule 144A securities
and other securities exempt from registration under the Securities Act carry the
risk that their liquidity may become impaired and the Fund may be unable to
dispose of the securities promptly or at current market value.
Unrated
Security Risk—Unrated
securities determined by the Fund’s sub-adviser to be of comparable quality to
rated securities which the Fund may purchase may pay a higher interest rate than
such rated securities and be subject to a greater risk of illiquidity or price
changes. Less public information is typically available about unrated securities
or issuers than rated securities or issuers.
U.S.
Government Securities Risk—U.S.
government securities are guaranteed only as to the timely payment of interest
and the payment of principal when held to maturity. Accordingly, the current
market values for these securities will fluctuate with changes in interest
rates. Securities issued or guaranteed by U.S. government agencies and
instrumentalities are supported by varying degrees of credit but generally are
not backed by the full faith and credit of the U.S. government or may be subject
to certain limitations. No assurance can be given that the U.S. government will
provide financial support to its agencies and instrumentalities if it is not
obligated by law to do so, which may increase the risk of loss to the
Fund.
Valuation
Risk—The
sales price the Fund could receive for any particular security 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 debt securities 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 debt securities 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.
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 |
23 |
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 September 30, 2023 was 7.68%. The
performance of the other share classes will differ due to their different
expense structures.
During
the ten-year period ended December 31, 2022, the Fund’s highest and lowest
quarterly returns were 6.79%
and
-12.30%, respectively, for the quarters ended June 30, 2020 and March 31,
2020.
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. After-tax
returns are not relevant to investors who hold Fund shares in tax-deferred
accounts such as IRAs or employer-sponsored retirement plans.
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, 2022 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
R6) |
Class
A (return before taxes) |
|
5/2/11 |
|
|
(4.78 |
)% |
|
2.10 |
% |
|
3.04 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
(6.64 |
)% |
|
0.19 |
% |
|
1.06 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
(2.84 |
)% |
|
0.79 |
% |
|
1.43 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
5/2/11 |
|
|
(2.58 |
)% |
|
1.97 |
% |
|
2.73 |
% |
|
N/A |
|
Class
R6 (return before taxes) |
|
1/28/15 |
|
|
(1.54 |
)% |
|
3.09 |
% |
|
N/A |
|
|
3.36
|
% |
Class
I (return before taxes) |
|
5/2/11 |
|
|
(1.63 |
)% |
|
2.99 |
% |
|
3.62 |
% |
|
N/A |
|
Credit
Suisse Leveraged Loan Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
(1.06 |
)% |
|
3.24 |
% |
|
3.78 |
% |
|
3.71 |
% |
Lipper
Loan Participation Funds Category Average2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
(2.51 |
)% |
|
1.95 |
% |
|
2.64 |
% |
|
2.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of the USD-denominated leveraged
loan market. The index includes issuers from developed countries; issuers
from developing countries are excluded. |
2 |
Represents
the average annualized total return for all reporting funds in the Lipper
Loan Participation Funds Category. |
|
|
24 |
Section
1
Fund Summaries |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
|
Scott
Caraher |
Senior
Managing Director |
May
2011 |
Kevin
R. Lorenz, CFA |
Senior
Managing Director |
August
2020 |
|
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through
a financial advisor or other financial intermediary. 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 |
$3,000
for all accounts except:
• $2,500
for Traditional/ Roth
IRA accounts.
• $2,000
for Coverdell Education
Savings Accounts.
• $250
for accounts opened through fee-based programs.
• No
minimum for retirement plans. |
Available
only to certain qualified retirement plans and other investors as
described in the prospectus and through fee-based programs.
$1
million for all accounts except:
• $100,000
for clients of financial intermediaries who charge such clients an ongoing
fee for advisory, investment, consulting or related services.
• No
minimum for certain qualified retirement plans and certain other
categories of eligible investors as described in the
prospectus. |
Available
only through fee-based programs and certain retirement plans, 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 eligible retirement plans and certain other categories of
eligible investors as described in the prospectus. |
Minimum Additional Investment |
$100 |
No
minimum. |
No
minimum. |
Tax
Information
The
Fund’s distributions are taxable and will generally be taxed as ordinary income
or capital gains, unless you are investing through a tax-deferred account, such
as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your
investment from such account).
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 |
25 |
Nuveen
High Yield Income Fund
Investment
Objective
The
investment objective of the Fund is to seek current income and capital
appreciation.
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 82 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares”
on page S-62 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
R6 |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
4.75% |
|
None |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
None |
|
1.00% |
|
None |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
None |
|
None |
|
None |
|
None |
|
Exchange
Fee |
None |
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000)2 |
$15 |
|
$15 |
|
None |
|
$15 |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
Management
Fees |
|
0.59 |
% |
|
0.59 |
% |
|
0.59 |
% |
|
0.59 |
% |
Distribution
and/or Service (12b-1) Fees |
|
0.25 |
% |
|
1.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and Related Expenses3 |
|
0.01 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
0.01 |
% |
Remainder
of Other Expenses |
|
0.22 |
% |
|
0.22 |
% |
|
0.08 |
% |
|
0.22 |
% |
Acquired
Fund Fees and Expenses |
|
0.02 |
% |
|
0.02 |
% |
|
0.02 |
% |
|
0.02 |
% |
Total
Annual Fund Operating Expenses |
|
1.09 |
% |
|
1.84 |
% |
|
0.70 |
% |
|
0.84 |
% |
Fee
Waivers and/or Expense Reimbursements4 |
|
(0.07 |
)% |
|
(0.07 |
)% |
|
(0.07 |
)% |
|
(0.07 |
)% |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
1.02 |
% |
|
1.77 |
% |
|
0.63 |
% |
|
0.77 |
% |
1 The
contingent deferred sales charge on Class C shares applies only to redemptions
within 12 months of purchase.
2 Fee
applies to the following types of accounts under $1,000 held directly with the
Fund: individual retirement accounts (IRAs), Coverdell Education Savings
Accounts and accounts established pursuant to the Uniform Transfers to Minors
Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3 Includes
interest expense and fees paid on Fund borrowings.
4 The
Fund’s investment adviser has agreed to waive fees and/or reimburse expenses 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 0.79% through July 31, 2025 or 1.35%
after July 31, 2025 of the average daily net assets of any class of Fund shares.
However, because Class R6 shares are not subject to sub-transfer agent and
similar fees, the total annual operating expenses for the Class R6 shares will
be less than the expense limitation. The expense limitation expiring July 31,
2025 may be terminated or modified prior to that date only with the approval of
the Board of Trustees of the Fund. The expense limitation in effect thereafter
may be terminated or modified only with the approval of shareholders 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 and that the Fund’s
operating expenses are at the lesser of Total Annual Fund Operating Expenses or
|
|
26 |
Section
1
Fund Summaries |
the
applicable expense limitation. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
1
Year |
$ |
574 |
|
$ |
180 |
|
$ |
64 |
|
$ |
79 |
|
3
Years |
$ |
795 |
|
$ |
568 |
|
$ |
213 |
|
$ |
257 |
|
5
Years |
$ |
1,037 |
|
$ |
985 |
|
$ |
379 |
|
$ |
455 |
|
10
Years |
$ |
1,731 |
|
$ |
2,149 |
|
$ |
860 |
|
$ |
1,027 |
|
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 135%
of the average value of its portfolio.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of the sum of its net assets
and the amount of any borrowings for investment purposes in debt instruments
(e.g., bonds and loans) rated below investment grade or, if unrated, deemed by
the Fund’s portfolio managers to be of comparable quality. Below
investment-grade securities are commonly referred to as “high yield” securities
or “junk” bonds. The Fund may invest up to 30% of its net assets in loans. The
Fund invests both in debt issued by U.S. companies and in U.S.
dollar-denominated debt issued by non-U.S. companies that is traded
over-the-counter or listed on an exchange.
The
Fund may invest in securities that have not been registered under the Securities
Act of 1933, as amended (the “Securities
Act”)
(“restricted
securities”),
including securities sold in private placement transactions between issuers and
their purchasers and securities that meet the requirements of Rule 144A under
the Securities Act (“Rule
144A securities”).
Rule 144A securities may be resold under certain circumstances only to qualified
institutional buyers as defined by the rule.
The
Fund may utilize the following derivatives: options; futures contracts; options
on futures contracts; swap agreements, including interest rate swaps, total
return swaps, and credit default 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, to manage the effective maturity or duration of securities in
the Fund’s portfolio or for speculative purposes in an effort to increase the
Fund’s yield or to enhance returns. The use of a derivative is speculative if
the Fund is primarily seeking to enhance returns, rather than offset the risk of
other positions.
The
Fund’s sub-adviser bases its investment process on fundamental, bottom-up credit
analysis. Analysts assess sector dynamics, company business models and asset
quality. Specific recommendations are based on an analysis of the relative value
of the various types of debt within a company’s capital structure. Inherent in
the sub-adviser’s credit analysis process is the evaluation of potential upside
and downside to any credit. As such, the sub-adviser concentrates its efforts on
sectors where there is sufficient transparency to assess the downside risk and
where firms have assets to support meaningful recovery in case of default. In
its focus on downside protection, the sub-adviser favors opportunities where
valuations can be quantified and risks assessed.
Principal
Risks
The
value of your investment in 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.
|
|
Section
1
Fund Summaries |
27 |
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding debt securities 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 debt security 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 debt security may
decline because of concerns about the issuer’s ability or willingness to make
such payments. Because the Fund invests at least 80% of the value of its assets
in high yield securities, the Fund’s credit risks are greater than those of
funds that buy only investment grade securities.
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
debt 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.
Currency
Risk—Even
though the non-U.S. securities held by the Fund are traded in U.S. dollars,
their prices are typically indirectly influenced by currency fluctuations.
Changes in currency exchange rates may affect the Fund’s net asset value,
interest earned, gains or losses realized on the sale of securities, and
derivative transactions tied to such 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.
Foreign
Investment Risk—Non-U.S.
issuers or U.S. issuers with significant non-U.S. operations may be subject to
risks in addition to those of issuers located in or that principally operate in
the United States as a result of, among other things, political, social and
economic developments abroad, as well as armed conflicts and different legal,
regulatory and tax environments. Foreign investments may also have lower
liquidity and be more difficult to value than investments in U.S. issuers. To
the extent the Fund invests a significant portion of its assets in the
securities of companies in a single country or region, it may be more
susceptible to adverse conditions affecting that country or region. Foreign
investments may also be subject to risk of loss because of more or less foreign
government regulation, less public information, less stringent investor
protections and less stringent accounting, corporate governance, financial
reporting and disclosure standards.
Frequent
Trading Risk—The
Fund's portfolio turnover rate may exceed 100%. Frequent trading of portfolio
securities may produce capital gains, which are taxable to shareholders when
distributed. Frequent trading may also increase the amount of commissions or
mark-ups to broker-dealers that the Fund pays when it buys and sells securities,
which may detract from the Fund’s performance.
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.
|
|
28 |
Section
1
Fund Summaries |
Income
Risk—The
Fund's income could decline during periods of falling interest rates or when the
Fund experiences defaults on debt securities it holds.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s fixed-rate securities 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. Fixed-rate securities 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 fixed-rate securities usually change more than the values of
shorter-duration fixed-rate securities. Conversely, fixed-rate securities with
shorter durations or maturities will be less volatile but may provide lower
returns than fixed-rate securities with longer durations or maturities. Rising
interest rates also may lengthen the duration of securities 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.
Loan
Risk—The
lack of an active trading market for certain loans (including loan
participations and assignments) may impair the ability of the Fund to realize
full value in the event of the need to sell a loan and may make it difficult to
value such loans. Portfolio transactions in loans may settle in as short as
seven days but typically can take up to two or three weeks, and in some cases
much longer. As a result of these extended settlement periods, the Fund may
incur losses if it is required to sell other investments or temporarily borrow
to meet its cash needs, including satisfying redemption requests. The risks
associated with unsecured loans, which are not backed by a security interest in
any specific collateral, are higher than those for comparable loans that are
secured by specific collateral. For secured loans, there is a risk that the
value of any collateral securing a loan in which the Fund has an interest may
decline and that the collateral may not be sufficient to cover the amount owed
on the loan. Interests in loans made to finance highly leveraged companies or
transactions such as corporate acquisitions may be especially vulnerable to
adverse changes in economic or market conditions. Loans may have restrictive
covenants limiting the ability of a borrower to further encumber its assets.
However, in periods of high demand by lenders like the Fund for loan
investments, borrowers may limit these covenants and weaken a lender’s ability
to access collateral securing the loan; reprice the credit risk associated with
the borrower; and mitigate potential loss. The Fund may experience relatively
greater realized or unrealized losses or delays and expenses in enforcing its
rights with respect to loans with fewer restrictive covenants. Additionally,
loans may not be considered “securities” and, as a result, the Fund may not be
entitled to rely on the anti-fraud or other protections of the securities laws.
Because junior loans have a lower place in an issuer’s capital structure and may
be unsecured, junior loans involve a higher degree of overall risk than senior
loans of the issuer. The Fund's investments in floating rate loans that pay
interest based on the London Interbank Offered Rate (LIBOR) may experience
increased volatility and/or illiquidity during the transition away from LIBOR,
which was phased out.
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.
Market
Liquidity Risk—Reductions
in trading activity or dealer inventories of securities such as bonds and
preferred securities, which provide an indication of the ability of financial
intermediaries to “make markets” in those securities, have the potential to
decrease liquidity and increase price volatility in the markets in which the
Fund invests, particularly during periods of economic or market stress. In
addition, federal banking regulations may cause certain dealers to reduce their
inventories of securities, which may further decrease the Fund’s ability to buy
or sell securities. As a result of this decreased liquidity, the Fund may have
to accept a lower price to sell a security, sell other securities to raise cash,
or give up an investment opportunity, any of which could have a negative effect
on performance. If the Fund needed to sell large blocks of securities to meet
shareholder redemption requests or to raise cash, those sales could further
reduce the securities’ prices and hurt performance.
|
|
Section
1
Fund Summaries |
29 |
Restricted
Securities Risk—The
market for restricted securities, including Rule 144A securities, typically is
less active than the market for publicly traded securities. Rule 144A securities
and other securities exempt from registration under the Securities Act carry the
risk that their liquidity may become impaired and the Fund may be unable to
dispose of the securities promptly or at current market value.
Unrated
Security Risk—Unrated
securities determined by the Fund’s sub-adviser to be of comparable quality to
rated securities which the Fund may purchase may pay a higher interest rate than
such rated securities and be subject to a greater risk of illiquidity or price
changes. Less public information is typically available about unrated securities
or issuers than rated securities or issuers.
Valuation
Risk—The
sales price the Fund could receive for any particular security 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 debt securities 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 debt securities 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.
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 September 30, 2023 was 5.67%. The
performance of the other share classes will differ due to their different
expense structures.
During
the ten-year period ended December 31, 2022, the Fund’s highest and lowest
quarterly returns were 7.93%
and
-15.01%, respectively, for the quarters ended June 30, 2020 and March 31,
2020.
|
|
30 |
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. 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. After-tax
returns are not relevant to investors who hold Fund shares in tax-deferred
accounts such as IRAs or employer-sponsored retirement plans.
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, 2022 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
R6) |
Class
A (return before taxes) |
|
4/28/10 |
|
|
(14.75 |
)% |
|
0.65 |
% |
|
2.78 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
(16.45 |
)% |
|
(1.51 |
)% |
|
0.24 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
(8.70 |
)% |
|
(0.38 |
)% |
|
0.99 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
4/28/10 |
|
|
(11.20 |
)% |
|
0.87 |
% |
|
2.67 |
% |
|
N/A |
|
Class
R6 (return before taxes) |
|
10/1/14 |
|
|
(10.11 |
)% |
|
2.01 |
% |
|
N/A |
|
|
2.93
|
% |
Class
I (return before taxes) |
|
4/28/10 |
|
|
(10.25 |
)% |
|
1.89 |
% |
|
3.54 |
% |
|
N/A |
|
ICE
BofA U.S. High Yield Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
(11.22 |
)% |
|
2.12 |
% |
|
3.94 |
% |
|
3.43 |
% |
Lipper
High Yield Funds Category Average2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
(10.66 |
)% |
|
1.73 |
% |
|
3.23 |
% |
|
2.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of USD-denominated below
investment grade corporate debt publicly issued in the U.S. domestic
market. |
2 |
Represents
the average annualized total return for all reporting funds in the Lipper
High Yield Funds Category. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
|
Scott
Caraher |
Senior
Managing Director |
May
2019 |
|
Jean
C. Lin, CFA |
Managing
Director |
August
2020 |
|
Kristal
Y. Seales, CFA |
Managing
Director |
December
2023 |
|
|
|
Section
1
Fund Summaries |
31 |
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through
a financial advisor or other financial intermediary. 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 |
$3,000
for all accounts except:
• $2,500
for Traditional/ Roth
IRA accounts.
• $2,000
for Coverdell Education
Savings Accounts.
• $250
for accounts opened through fee-based programs.
• No
minimum for retirement plans. |
Available
only to certain qualified retirement plans and other investors as
described in the prospectus and through fee-based programs.
$1
million for all accounts except:
• $100,000
for clients of financial intermediaries who charge such clients an ongoing
fee for advisory, investment, consulting or related services.
• No
minimum for certain qualified retirement plans and certain other
categories of eligible investors as described in the
prospectus. |
Available
only through fee-based programs and certain retirement plans, 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 eligible retirement plans and certain other categories of
eligible investors as described in the prospectus. |
Minimum Additional Investment |
$100 |
No
minimum. |
No
minimum. |
Tax
Information
The
Fund’s distributions are taxable and will generally be taxed as ordinary income
or capital gains, unless you are investing through a tax-deferred account, such
as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your
investment from such account).
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.
|
|
32 |
Section
1
Fund Summaries |
Nuveen
Preferred Securities and Income Fund
Investment
Objective
The
Fund seeks to provide a high level of current income and total return.
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 82 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares”
on page S-71 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
R6 |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
4.75% |
|
None |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
None |
|
1.00% |
|
None |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
None |
|
None |
|
None |
|
None |
|
Exchange
Fee |
None |
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000)2 |
$15 |
|
$15 |
|
None |
|
$15 |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
Management
Fees |
|
0.65 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
0.65 |
% |
Distribution
and/or Service (12b-1) Fees |
|
0.25 |
% |
|
1.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and Related Expenses3 |
|
0.01 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
0.01 |
% |
Remainder
of Other Expenses |
|
0.10 |
% |
|
0.10 |
% |
|
0.03 |
% |
|
0.10 |
% |
Total
Annual Fund Operating Expenses |
|
1.01 |
% |
|
1.76 |
% |
|
0.69 |
% |
|
0.76 |
% |
1 The
contingent deferred sales charge on Class C shares applies only to redemptions
within 12 months of purchase.
2 Fee
applies to the following types of accounts under $1,000 held directly with the
Fund: individual retirement accounts (IRAs), Coverdell Education Savings
Accounts and accounts established pursuant to the Uniform Transfers to Minors
Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3 Includes
interest expense and fees paid on Fund borrowings.
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
R6 |
|
Class
I |
|
1
Year |
$ |
573 |
|
$ |
179 |
|
$ |
70 |
|
$ |
78 |
|
3
Years |
$ |
781 |
|
$ |
554 |
|
$ |
221 |
|
$ |
243 |
|
5
Years |
$ |
1,006 |
|
$ |
954 |
|
$ |
384 |
|
$ |
422 |
|
10
Years |
$ |
1,653 |
|
$ |
2,073 |
|
$ |
859 |
|
$ |
942 |
|
|
|
Section
1
Fund Summaries |
33 |
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 22%
of the average value of its portfolio.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of the sum of its net assets
and the amount of any borrowings for investment purposes in preferred securities
and other income producing securities. The Fund may invest in all types of
preferred securities, including both perpetual preferred securities and hybrid
securities. Perpetual preferred securities are generally equity securities of
the issuer that have priority over the issuer’s common shares as to the payment
of dividends (i.e.,
the issuer cannot pay dividends on its common shares until the dividends on the
preferred shares are current) and as to the payout of proceeds of a bankruptcy
or other liquidation, but are subordinate to an issuer’s senior debt and junior
debt as to both types of payments. Additionally, in a bankruptcy or other
liquidation, perpetual preferred securities are generally subordinate to an
issuer’s trade creditors and other general obligations. Perpetual preferred
securities typically have a fixed liquidation (or “par”) value.
The
term “preferred securities” also includes hybrid securities and other types of
preferred securities that do not have the features described above. Preferred
securities that are hybrid securities often behave similarly to investments in
perpetual preferred securities and are regarded by market investors as being
part of the preferred securities market. Such hybrid securities possess varying
combinations of features of both debt and perpetual preferred securities and as
such they may constitute senior debt, junior debt or preferred shares in an
issuer’s capital structure.
The
term “preferred securities” also includes certain forms of debt that are
regarded by the investment marketplace to be part of the broader preferred
securities market. Among these preferred securities are certain exchange-listed
debt issues that historically have several attributes, including trading and
investment performance characteristics, in common with exchange-listed perpetual
preferred securities and hybrid securities. Generally, these types of preferred
securities are senior debt in the capital structure of an issuer.
The
Fund may also invest in income producing securities that are not preferred
securities. These include contingent capital securities (sometimes referred to
as “CoCos”),
which are hybrid securities, issued primarily by non-U.S. financial
institutions, that have loss absorption mechanisms benefitting the issuer built
into their terms. These loss absorption mechanisms may include automatic
conversion into the issuer’s common stock or an automatic write down of the
security’s principal amount upon the occurrence of a specified trigger or event.
In addition, although the Fund will invest primarily in preferred securities and
CoCos, it may invest up to 20% of its net assets, in the aggregate, in corporate
debt securities, U.S. government securities (including securities issued or
guaranteed by U.S. government agencies and instrumentalities) and taxable
municipal securities.
The
Fund may also invest in preferred securities or CoCos that are convertible into
common stock.
The
Fund normally invests at least 50% of its net assets in securities rated
investment grade (BBB/Baa or higher) at the time of purchase by at least one
independent rating agency and unrated securities judged to be of comparable
quality by the Fund’s portfolio managers. The Fund may invest up to 50% of its
net assets in securities rated below investment grade (BB/Ba or lower) or
unrated securities judged to be of comparable quality by the Fund’s portfolio
managers at the time of purchase, which are commonly referred to as “high yield”
securities or “junk” bonds. The Fund may also invest in U.S. dollar-denominated
securities issued by non-U.S. companies.
The
Fund may invest in securities that have not been registered under the Securities
Act of 1933, as amended (the “Securities
Act”)
(“restricted
securities”),
including securities sold in private placement transactions between issuers and
their purchasers and securities that meet the requirements of Rule 144A under
the Securities Act (“Rule
144A securities”).
Rule 144A securities may be resold under certain circumstances only to qualified
institutional buyers as defined by the rule.
The
Fund intends to invest at least 25% of its assets in the securities of companies
principally engaged in financial services.
The
Fund’s sub-adviser considers several factors in constructing the Fund’s
portfolio of preferred securities, including credit risk, diversification,
preferred sub-market analysis, call protection and yield curve analysis. From
this analysis, the
|
|
34 |
Section
1
Fund Summaries |
Fund’s
sub-adviser builds a portfolio of securities that it believes offers the most
attractive mix of value relative to securities with similar credit ratings,
current income and call protection.
Principal
Risks
The
value of your investment in 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.
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding debt securities 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.
Contingent
Capital Security Risk—CoCos
have loss absorption mechanisms benefitting the issuer built into their terms.
Upon the occurrence of a specified trigger or event, CoCos may be subject to
automatic conversion into the issuer’s common stock, which likely will have
declined in value and which will be subordinate to the issuer’s other classes of
securities, or to an automatic write-down of the principal amount of the
securities, potentially to zero, which could result in the Fund losing a portion
or all of its investment in such securities. CoCos are often rated below
investment grade and are subject to the risks of high yield
securities.
Convertible
Security Risk—Convertible
securities are subject to certain risks of both equity and debt securities. The
value of convertible securities may decline in response to such factors as
rising interest rates and fluctuations in the market price of the common stock
underlying the convertible securities.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a security may be,
or perceived (whether by market participants, rating agencies, pricing services
or otherwise) to be, unable or unwilling to make dividend, interest and
principal payments when due and the related risk that the value of a security
may decline because of concerns about the issuer’s ability or willingness to
make such payments.
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
debt 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.
Currency
Risk—Even
though the non-U.S. securities held by the Fund are traded in U.S. dollars,
their prices are typically indirectly influenced by currency fluctuations.
Changes in currency exchange rates may affect the Fund’s net asset value, the
value of dividends and interest earned, and gains or losses realized on the sale
of 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.
Financial
Services Sector Risk—The
Fund's policy to concentrate in financial services companies makes the Fund more
susceptible to adverse economic or regulatory occurrences affecting the
financial services sector. Financial services companies are particularly
sensitive to the adverse effects of economic recession; changes in government
regulation; the availability of capital; volatile interest rates; and the health
of the commercial and residential real estate markets.
|
|
Section
1
Fund Summaries |
35 |
Foreign
Investment Risk—Non-U.S.
issuers or U.S. issuers with significant non-U.S. operations may be subject to
risks in addition to those of issuers located in or that principally operate in
the United States as a result of, among other things, political, social and
economic developments abroad, as well as armed conflicts and different legal,
regulatory and tax environments. Foreign investments may also have lower
liquidity and be more difficult to value than investments in U.S. issuers. To
the extent the Fund invests a significant portion of its assets in the
securities of companies in a single country or region, it may be more
susceptible to adverse conditions affecting that country or region. Foreign
investments may also be subject to risk of loss because of more or less foreign
government regulation, less public information, less stringent investor
protections and less stringent accounting, corporate governance, financial
reporting and disclosure standards.
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 debt securities or defaults or deferrals on
preferred securities it holds.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s fixed-rate securities 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. Fixed-rate securities 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 fixed-rate securities usually change more than the values of
shorter-duration fixed-rate securities. Conversely, fixed-rate securities with
shorter durations or maturities will be less volatile but may provide lower
returns than fixed-rate securities with longer durations or maturities. Rising
interest rates also may lengthen the duration of securities 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.
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.
Market
Liquidity Risk—Reductions
in trading activity or dealer inventories of securities such as bonds and
preferred securities, which provide an indication of the ability of financial
intermediaries to “make markets” in those securities, have the potential to
decrease liquidity and increase price volatility in the markets in which the
Fund invests, particularly during periods of economic or market stress. In
addition, federal banking regulations may cause certain dealers to reduce their
inventories of securities, which may further decrease the Fund’s ability to buy
or sell securities. As a result of this decreased liquidity, the Fund may have
to accept a lower price to sell a security, sell other securities to raise cash,
or give up an investment opportunity, any of which could have a negative effect
on performance. If the Fund needed to sell large blocks of securities to meet
shareholder redemption requests or to raise cash, those sales could further
reduce the securities’ prices and hurt performance.
Municipal
Securities Risk—The
values of municipal securities held by the Fund may be adversely affected by
local political and economic conditions and developments. Adverse conditions in
an industry significant to a local economy could have a correspondingly adverse
effect on the financial condition of local issuers. 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.
|
|
36 |
Section
1
Fund Summaries |
Preferred
Security Risk—Preferred
securities generally are subordinated to bonds and other debt instruments in a
company’s capital structure and therefore will be subject to greater credit risk
than those debt instruments. In addition, preferred securities are subject to
other risks, such as having no or limited voting rights, being subject to
special redemption rights, having distributions deferred or skipped, having
floating interest rates or dividends, which may result in a decline in value in
a falling interest rate environment, having fixed interest rates or dividends,
which may result in a decline in value in a rising interest rate environment,
having limited liquidity, changing or unfavorable tax treatments and possibly
being issued by companies in heavily regulated industries.
Restricted
Securities Risk—The
market for restricted securities, including Rule 144A securities, typically is
less active than the market for publicly traded securities. Rule 144A securities
and other securities exempt from registration under the Securities Act carry the
risk that their liquidity may become impaired and the Fund may be unable to
dispose of the securities promptly or at current market value.
Unrated
Security Risk—Unrated
securities determined by the Fund’s sub-adviser to be of comparable quality to
rated securities which the Fund may purchase may pay a higher interest rate than
such rated securities and be subject to a greater risk of illiquidity or price
changes. Less public information is typically available about unrated securities
or issuers than rated securities or issuers.
U.S.
Government Securities Risk—U.S.
government securities are guaranteed only as to the timely payment of interest
and the payment of principal when held to maturity. Accordingly, the current
market values for these securities will fluctuate with changes in interest
rates. Securities issued or guaranteed by U.S. government agencies and
instrumentalities are supported by varying degrees of credit but generally are
not backed by the full faith and credit of the U.S. government or may be subject
to certain limitations. No assurance can be given that the U.S. government will
provide financial support to its agencies and instrumentalities if it is not
obligated by law to do so, which may increase the risk of loss to the
Fund.
Valuation
Risk—The
sales price the Fund could receive for any particular security 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 debt securities 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 debt securities 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.
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 |
37 |
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 September 30, 2023 was -0.48%. The
performance of the other share classes will differ due to their different
expense structures.
During
the ten-year period ended December 31, 2022, the Fund’s highest and lowest
quarterly returns were 11.07%
and
-15.43%, respectively, for the quarters ended June 30, 2020 and March 31,
2020.
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 broad measures 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. After-tax
returns are not relevant to investors who hold Fund shares in tax-deferred
accounts such as IRAs or employer-sponsored retirement plans.
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.
|
|
38 |
Section
1
Fund Summaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Annual Total Returns |
|
|
|
|
|
for
the Periods Ended |
|
|
|
|
|
December
31, 2022 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
R6) |
Class
A (return before taxes) |
|
12/19/06 |
|
|
(14.35 |
)% |
|
0.91 |
% |
|
3.76 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
(15.39 |
)% |
|
(0.37 |
)% |
|
2.14 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
(7.72 |
)% |
|
0.63 |
% |
|
2.58 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
12/19/06 |
|
|
(10.70 |
)% |
|
1.14 |
% |
|
3.64 |
% |
|
N/A |
|
Class
R6 (return before taxes) |
|
6/30/16 |
|
|
(9.76 |
)% |
|
2.23 |
% |
|
N/A |
|
|
3.87
|
% |
Class
I (return before taxes) |
|
12/19/06 |
|
|
(9.82 |
)% |
|
2.15 |
% |
|
4.52 |
% |
|
N/A |
|
ICE
BofA U.S. All Capital Securities Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
(14.85 |
)% |
|
1.41 |
% |
|
4.08 |
% |
|
2.60 |
% |
Preferred
Securities and Income Blended Benchmark2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
(13.40 |
)% |
|
1.90 |
% |
|
4.12 |
% |
|
3.61 |
% |
Lipper
Flexible Income Funds Category Average3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
(11.73 |
)% |
|
1.50 |
% |
|
3.18 |
% |
|
2.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of investment grade and below
investment grade fixed rate and fixed-to-floating rate, USD-denominated
hybrid corporate and preferred securities publicly issued in the U.S.
domestic market. |
2 |
The
index is comprised of a 60% weighting in the ICE BofA U.S. All Capital
Securities Index and a 40% weighting in the ICE BofA USD Contingent
Capital Index. Benchmark performance is linked. Performance prior to
12/31/13 reflects the Blended Benchmark’s previous composition: a 65%
weighting in the ICE BofA Fixed Rate Preferred Index and a 35% weighting
in the Bloomberg USD Capital Securities Index. |
3 |
Represents
the average annualized total return for all reporting funds in the Lipper
Flexible Income Funds Category. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
Douglas
M. Baker, CFA |
Managing
Director |
December
2006 |
Brenda
A. Langenfeld, CFA |
Managing
Director |
January
2012 |
|
|
Section
1
Fund Summaries |
39 |
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through
a financial advisor or other financial intermediary. 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 |
$3,000
for all accounts except:
• $2,500
for Traditional/ Roth
IRA accounts.
• $2,000
for Coverdell Education
Savings Accounts.
• $250
for accounts opened through fee-based programs.
• No
minimum for retirement plans. |
Available
only to certain qualified retirement plans and other investors as
described in the prospectus and through fee-based programs.
$1
million for all accounts except:
• $100,000
for clients of financial intermediaries who charge such clients an ongoing
fee for advisory, investment, consulting or related services.
• No
minimum for certain qualified retirement plans and certain other
categories of eligible investors as described in the
prospectus. |
Available
only through fee-based programs and certain retirement plans, 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 eligible retirement plans and certain other categories of
eligible investors as described in the prospectus. |
Minimum Additional Investment |
$100 |
No
minimum. |
No
minimum. |
Tax
Information
The
Fund’s distributions are taxable and will generally be taxed as ordinary income
or capital gains, unless you are investing through a tax-deferred account, such
as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your
investment from such account).
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.
|
|
40 |
Section
1
Fund Summaries |
Nuveen
Strategic Income Fund
Investment
Objective
The
investment objective of the Fund is to provide investors with total
return.
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 82 of the
Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-76 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
R6 |
|
Class
I |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as
a percentage of offering price) |
|
|
4.25% |
|
None |
|
None |
|
None |
|
Maximum
Deferred Sales Charge (Load) (as
a percentage of the lesser of purchase price or redemption
proceeds)1 |
|
|
None |
|
1.00% |
|
None |
|
None |
|
Maximum
Sales Charge (Load) Imposed on Reinvested Dividends |
|
|
None |
|
None |
|
None |
|
None |
|
Exchange
Fee |
|
|
None |
|
None |
|
None |
|
None |
|
Annual
Low Balance Account Fee (for accounts under $1,000)2 |
|
|
$15 |
|
$15 |
|
None |
|
$15 |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
Management
Fees |
|
|
|
|
0.54 |
% |
|
0.54 |
% |
|
0.54 |
% |
|
0.54 |
% |
Distribution
and/or Service (12b-1) Fees |
|
|
|
|
0.25 |
% |
|
1.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
Other
Expenses |
|
|
|
|
0.17 |
% |
|
0.17 |
% |
|
0.08 |
% |
|
0.17 |
% |
Total
Annual Fund Operating Expenses |
|
|
|
|
0.96 |
% |
|
1.71 |
% |
|
0.62 |
% |
|
0.71 |
% |
Fee
Waivers and/or Expense Reimbursements3 |
|
|
|
|
(0.13 |
)% |
|
(0.12 |
)% |
|
(0.12 |
)% |
|
(0.13 |
)% |
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
|
|
|
0.83 |
% |
|
1.59 |
% |
|
0.50 |
% |
|
0.58 |
% |
1 The contingent deferred
sales charge on Class C shares applies only to redemptions within 12 months of
purchase.
2 Fee applies to the following types of accounts
under $1,000 held directly with the Fund: individual retirement accounts (IRAs),
Coverdell Education Savings Accounts and accounts established pursuant to the
Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act
(UGMA).
3 The Fund’s investment adviser has agreed to
waive fees and/or reimburse expenses through July 31,
2025 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 0.59% of the
average daily net assets of any class of Fund shares. However, because Class R6
shares are not subject to sub-transfer agent and similar fees, the total annual
operating expenses for the Class R6 shares will be less than the expense
limitation. This expense limitation may be terminated or modified prior to July
31, 2025 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, 2025. Although your actual costs may be higher
or lower, based on these assumptions your costs would
be:
|
|
Section
1
Fund Summaries |
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A |
|
Class
C |
|
Class
R6 |
|
Class
I |
|
1
Year |
|
|
|
$ |
506 |
|
$ |
162 |
|
$ |
51 |
|
$ |
59 |
|
3
Years |
|
|
|
$ |
698 |
|
$ |
520 |
|
$ |
179 |
|
$ |
206 |
|
5
Years |
|
|
|
$ |
914 |
|
$ |
910 |
|
$ |
327 |
|
$ |
374 |
|
10
Years |
|
|
|
$ |
1,535 |
|
$ |
2,003 |
|
$ |
756 |
|
$ |
863 |
|
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
66% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Fund invests at least 80% of its net assets in
income producing securities, including:
· U.S.
government securities (securities issued or guaranteed by the U.S. government or
its agencies or
instrumentalities);
· residential
and commercial mortgage-backed
securities;
· asset-backed
securities;
· domestic
and foreign corporate debt obligations, including obligations issued by
special-purpose entities that are backed by corporate debt
obligations;
· preferred
securities and contingent capital securities (sometimes referred to as
“CoCos”)
in an aggregate amount not to exceed 20% of the Fund’s net
assets;
· fixed
and floating rate loans, including senior loans and secured and unsecured junior
loans, in an amount not to exceed 20% of the Fund’s net
assets;
· debt
obligations of foreign governments;
and
· municipal
securities in an amount not to exceed 20% of the Fund’s net
assets.
The
Fund may invest up to 30% of its total assets in non-U.S. dollar denominated
debt obligations of foreign corporations and governments, including debt
obligations issued by governmental and corporate issuers that are located in
emerging market countries. The Fund may invest without limitation in U.S. dollar
denominated securities of foreign
issuers.
The
Fund may invest up to 50% of its total assets in securities rated lower than
investment grade or unrated securities of comparable quality as determined by
the Fund’s sub-adviser (securities commonly referred to as “high yield”
securities or “junk” bonds). The Fund will not invest in securities rated lower
than CCC at the time of purchase or in unrated securities of comparable quality
as determined by the Fund’s sub-adviser. If the rating of a security is reduced
or the credit quality of an unrated security declines after purchase, the Fund
is not required to sell the security, but may consider doing so. Unrated
securities will not exceed 25% of the Fund’s total
assets.
The
Fund may invest in securities that have not been registered under the Securities
Act of 1933, as amended (the “Securities
Act”)
(“restricted
securities”),
including securities sold in private placement transactions between issuers and
their purchasers and securities that meet the requirements of Rule 144A under
the Securities Act (“Rule
144A securities”).
Rule 144A securities may be resold under certain circumstances only to qualified
institutional buyers as defined by the
rule.
Under
normal market conditions, the Fund attempts to maintain a weighted average
effective maturity for its portfolio securities of fifteen years or less and an
average effective duration of three to eight years. The Fund’s weighted average
effective maturity and average effective duration are measures of how the value
of the Fund’s shares may react to interest rate
changes.
The
Fund’s sub-adviser makes buy, sell, and hold decisions using a “top-down”
approach, which begins with the formulation of the sub-adviser’s general
economic outlook. Following this, various sectors and industries are analyzed
and selected for investment. Finally, the sub-adviser selects individual
securities within these sectors or industries. The sub-adviser also analyzes
expected changes to the yield curve under multiple market conditions to help
define maturity and duration selection.
To
generate additional income, the Fund may invest up to 25% of its total assets in
dollar roll transactions. In a dollar roll transaction, the Fund sells
mortgage-backed securities for delivery in the current month while contracting
with the same party to repurchase similar securities at a future
date.
|
|
42 |
Section
1
Fund Summaries |
The
Fund may utilize the following derivatives: options; futures contracts; options
on futures contracts; interest rate caps, collars, and floors; foreign currency
contracts; options on foreign currencies; swap agreements, including swap
agreements on interest rates, currency rates, security indexes and specific
securities, and credit default swap agreements; and options on the foregoing
types of swap agreements. The Fund may enter into standardized derivatives
contracts traded on domestic or foreign securities exchanges, boards of trade,
or similar entities, and non-standardized derivatives contracts traded in the
over-the-counter market. The Fund may use these derivatives in an attempt to
manage market risk, currency risk, credit risk and yield curve risk, to manage
the effective maturity or duration of securities in the Fund’s portfolio or for
speculative purposes in an effort to increase the Fund’s yield or to enhance
returns. The Fund may also use derivatives to gain exposure to non-dollar
denominated securities markets to the extent it does not do so through direct
investments. The use of a derivative is speculative if the Fund is primarily
seeking to enhance returns, rather than offset the risk of other positions. The
Fund may not use any derivative to gain exposure to a security or type of
security that it would be prohibited by its investment restrictions from
purchasing directly.
Principal
Risks
The value of your investment in 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.
Call
Risk—If,
during periods of falling interest rates, an issuer exercises its right to
prepay principal on its higher-yielding debt securities 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.
Contingent
Capital Security Risk—CoCos
have loss absorption mechanisms benefitting the issuer built into their terms.
Upon the occurrence of a specified trigger or event, CoCos may be subject to
automatic conversion into the issuer’s common stock, which likely will have
declined in value and which will be subordinate to the issuer’s other classes of
securities, or to an automatic write-down of the principal amount of the
securities, potentially to zero, which could result in the Fund losing a portion
or all of its investment in such securities. CoCos are often rated below
investment grade and are subject to the risks of high yield
securities.
Credit
Risk—Credit
risk is the risk that an issuer or other obligated party of a security may be,
or perceived (whether by market participants, rating agencies, pricing services
or otherwise) to be, unable or unwilling to make dividend, interest and
principal payments when due and the related risk that the value of a security
may decline because of concerns about the issuer’s ability or willingness to
make such payments.
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
debt 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.
Currency
Risk—Changes
in currency exchange rates will affect the value of non-U.S. securities, the
value of dividends and interest earned from such securities, gains and losses
realized on the sale of such securities, and derivative transactions tied to
such securities. A strong U.S. dollar relative to these other currencies will
adversely affect the value of the Fund’s portfolio.
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
|
|
Section
1
Fund Summaries |
43 |
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.
Dollar
Roll Transaction Risk—The
use of dollar rolls can increase the volatility of the Fund’s share price, and
it may have an adverse impact on performance unless the sub-adviser correctly
predicts mortgage prepayments and interest rates. These transactions are subject
to the risk that the counterparty to the transaction may not or be unable to
perform in accordance with the terms of the
instrument.
Emerging
Markets Risk—The
risk of foreign investment often increases in countries with emerging markets or
that are otherwise economically tied to emerging market countries. For example,
these countries may have more unstable governments than developed countries and
their economies may be based on only a few industries. Emerging market countries
may also have less stringent regulation of accounting, auditing, financial
reporting and recordkeeping requirements, which would affect the Fund’s ability
to evaluate potential portfolio companies. As a result, there could be less
information about issuers in emerging market countries, which could negatively
affect the ability of the Fund’s sub-adviser to evaluate local companies or
their potential impact on the Fund’s performance. Because their financial
markets may be very small, prices of financial instruments in emerging market
countries may be volatile and difficult to determine. Financial instruments of
issuers in these countries may have lower overall liquidity than those of
issuers in more developed countries. In addition, foreign investors such as the
Fund are subject to a variety of special restrictions in many emerging market
countries. Shareholder claims and regulatory actions that are available in the
U.S. may be difficult or impossible to pursue in emerging market
countries.
Foreign
Investment Risk—Non-U.S.
issuers or U.S. issuers with significant non-U.S. operations may be subject to
risks in addition to those of issuers located in or that principally operate in
the United States as a result of, among other things, political, social and
economic developments abroad, as well as armed conflicts and different legal,
regulatory and tax environments. Foreign investments may also have lower
liquidity and be more difficult to value than investments in U.S. issuers. To
the extent the Fund invests a significant portion of its assets in the
securities of companies in a single country or region, it may be more
susceptible to adverse conditions affecting that country or region. Foreign
investments may also be subject to risk of loss because of more or less foreign
government regulation, less public information, less stringent investor
protections and less stringent accounting, corporate governance, financial
reporting and disclosure standards.
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 debt securities or defaults or deferrals on
preferred securities it holds.
Interest
Rate Risk—Interest
rate risk is the risk that the value of the Fund’s fixed-rate securities 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. Fixed-rate securities 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 fixed-rate securities usually change more than the values of
shorter-duration fixed-rate securities. Conversely, fixed-rate securities with
shorter durations or maturities will be less volatile but may provide lower
returns than fixed-rate
|
|
44 |
Section
1
Fund Summaries |
securities
with longer durations or maturities. Rising interest rates also may lengthen the
duration of securities 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.
Loan
Risk—The
lack of an active trading market for certain loans (including loan
participations and assignments) may impair the ability of the Fund to realize
full value in the event of the need to sell a loan and may make it difficult to
value such loans. Portfolio transactions in loans may settle in as short as
seven days but typically can take up to two or three weeks, and in some cases
much longer. As a result of these extended settlement periods, the Fund may
incur losses if it is required to sell other investments or temporarily borrow
to meet its cash needs, including satisfying redemption requests. The risks
associated with unsecured loans, which are not backed by a security interest in
any specific collateral, are higher than those for comparable loans that are
secured by specific collateral. For secured loans, there is a risk that the
value of any collateral securing a loan in which the Fund has an interest may
decline and that the collateral may not be sufficient to cover the amount owed
on the loan. Interests in loans made to finance highly leveraged companies or
transactions such as corporate acquisitions may be especially vulnerable to
adverse changes in economic or market conditions. Loans may have restrictive
covenants limiting the ability of a borrower to further encumber its assets.
However, in periods of high demand by lenders like the Fund for loan
investments, borrowers may limit these covenants and weaken a lender’s ability
to access collateral securing the loan; reprice the credit risk associated with
the borrower; and mitigate potential loss. The Fund may experience relatively
greater realized or unrealized losses or delays and expenses in enforcing its
rights with respect to loans with fewer restrictive covenants. Additionally,
loans may not be considered “securities” and, as a result, the Fund may not be
entitled to rely on the anti-fraud or other protections of the securities laws.
Because junior loans have a lower place in an issuer’s capital structure and may
be unsecured, junior loans involve a higher degree of overall risk than senior
loans of the issuer. The Fund's investments in floating rate loans that pay
interest based on the London Interbank Offered Rate (LIBOR) may experience
increased volatility and/or illiquidity during the transition away from LIBOR,
which was phased out.
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.
Market
Liquidity Risk—Reductions
in trading activity or dealer inventories of securities such as bonds and
preferred securities, which provide an indication of the ability of financial
intermediaries to “make markets” in those securities, have the potential to
decrease liquidity and increase price volatility in the markets in which the
Fund invests, particularly during periods of economic or market stress. In
addition, federal banking regulations may cause certain dealers to reduce their
inventories of securities, which may further decrease the Fund’s ability to buy
or sell securities. As a result of this decreased liquidity, the Fund may have
to accept a lower price to sell a security, sell other securities to raise cash,
or give up an investment opportunity, any of which could have a negative effect
on performance. If the Fund needed to sell large blocks of securities to meet
shareholder redemption requests or to raise cash, those sales could further
reduce the securities’ prices and hurt
performance.
Mortgage-
and Asset-Backed Securities Risk—These
securities generally can be prepaid at any time, and prepayments that occur
either more quickly or more slowly than expected can adversely impact the value
of such securities. They are also subject to extension risk, which is the risk
that rising interest rates could cause mortgages or other obligations underlying
the securities to be prepaid more slowly than expected, thereby lengthening the
duration of such securities, increasing their sensitivity to interest rate
changes and causing their prices to decline. Mortgage-backed securities are
particularly sensitive to prepayment risk, given that the term to maturity for
mortgage loans is generally substantially longer than the expected lives of
those securities. A mortgage-backed security may be negatively affected by the
quality of the mortgages underlying such security, the credit quality of its
issuer or guarantor, and the nature and structure of its credit support.
Mortgage- and asset-backed securities that are not backed by the full faith and
credit of the U.S. government are subject to the risk of default on the
underlying mortgage, loan or asset, particularly during periods of economic
downturn.
|
|
Section
1
Fund Summaries |
45 |
Municipal
Securities Risk—The
values of municipal securities held by the Fund may be adversely affected by
local political and economic conditions and developments. Adverse conditions in
an industry significant to a local economy could have a correspondingly adverse
effect on the financial condition of local issuers. 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.
Preferred
Security Risk—Preferred
securities generally are subordinated to bonds and other debt instruments in a
company’s capital structure and therefore will be subject to greater credit risk
than those debt instruments. In addition, preferred securities are subject to
other risks, such as having no or limited voting rights, being subject to
special redemption rights, having distributions deferred or skipped, having
floating interest rates or dividends, which may result in a decline in value in
a falling interest rate environment, having fixed interest rates or dividends,
which may result in a decline in value in a rising interest rate environment,
having limited liquidity, changing or unfavorable tax treatments and possibly
being issued by companies in heavily regulated
industries.
Restricted
Securities Risk—The
market for restricted securities, including Rule 144A securities, typically is
less active than the market for publicly traded securities. Rule 144A securities
and other securities exempt from registration under the Securities Act carry the
risk that their liquidity may become impaired and the Fund may be unable to
dispose of the securities promptly or at current market
value.
Sovereign
Debt Risk—Sovereign
debt instruments are subject to the risk that a governmental entity may delay or
refuse to pay interest or repay principal on its sovereign debt. This may be due
to, for example, cash flow problems, insufficient foreign currency reserves,
political considerations, the relative size of the governmental entity’s debt
position in relation to the economy or the failure to put in place economic
reforms required by the International Monetary Fund or other multilateral
agencies.
Unrated
Security Risk—Unrated
securities determined by the Fund’s sub-adviser to be of comparable quality to
rated securities which the Fund may purchase may pay a higher interest rate than
such rated securities and be subject to a greater risk of illiquidity or price
changes. Less public information is typically available about unrated securities
or issuers than rated securities or issuers.
U.S.
Government Securities Risk—U.S.
government securities are guaranteed only as to the timely payment of interest
and the payment of principal when held to maturity. Accordingly, the current
market values for these securities will fluctuate with changes in interest
rates. Securities issued or guaranteed by U.S. government agencies and
instrumentalities are supported by varying degrees of credit but generally are
not backed by the full faith and credit of the U.S. government or may be subject
to certain limitations. No assurance can be given that the U.S. government will
provide financial support to its agencies and instrumentalities if it is not
obligated by law to do so, which may increase the risk of loss to the
Fund.
Valuation
Risk—The
sales price the Fund could receive for any particular security 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 debt securities 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 debt securities 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.
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.
|
|
46 |
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.
|
Class A Annual
Total Return* |
*Class A year-to-date total return as
of September
30, 2023 was 2.17%. The performance of the other share classes
will differ due to their different expense
structures.
During
the ten-year period ended December 31, 2022, the Fund’s highest and lowest quarterly returns
were 8.78%
and
-7.20%, respectively, for the quarters ended
June 30, 2020 and March 31,
2020.
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. After-tax returns are not
relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs
or employer-sponsored retirement
plans.
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.
|
|
Section
1
Fund Summaries |
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual
Total Returns |
|
|
|
|
|
for the Periods
Ended |
|
|
|
|
|
December 31,
2022 |
|
|
Inception
Date |
1
Year |
5
Years |
10
Years |
Since
Inception
(Class
R6) |
Class
A (return before taxes) |
|
2/1/00 |
|
|
(14.62 |
)% |
|
0.38 |
% |
|
1.83 |
% |
|
N/A |
|
Class
A (return after taxes on distributions) |
|
|
|
|
(15.88 |
)% |
|
(0.89 |
)% |
|
0.31 |
% |
|
N/A |
|
Class
A (return after taxes on distributions and sale of Fund shares) |
|
|
|
|
(8.52 |
)% |
|
(0.15 |
)% |
|
0.75 |
% |
|
N/A |
|
Class
C (return before taxes) |
|
2/1/00 |
|
|
(11.51 |
)% |
|
0.50 |
% |
|
1.66 |
% |
|
N/A |
|
Class
R6 (return before taxes) |
|
1/20/15 |
|
|
(10.56 |
)% |
|
1.60 |
% |
|
N/A |
|
|
2.24 |
% |
Class
I (return before taxes) |
|
2/1/00 |
|
|
(10.60 |
)% |
|
1.50 |
% |
|
2.53 |
% |
|
N/A |
|
Bloomberg
U.S. Aggregate Bond Index1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for fees, expenses or taxes) |
|
|
|
|
(13.01 |
)% |
|
0.02 |
% |
|
1.06 |
% |
|
0.67 |
% |
Lipper
Multi-Sector Income Funds Category Average2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(reflects
no deduction for taxes or sales loads) |
|
|
|
|
(10.43 |
)% |
|
0.75 |
% |
|
2.25 |
% |
|
2.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
An
index designed to measure the performance of the USD-denominated,
fixed-rate, U.S. investment grade taxable bond market. The index includes
Treasuries, government-related and corporate securities, mortgage-backed
securities (MBS), asset-backed securities (ABS) and commercial
mortgage-backed securities (CMBS). |
2 |
Represents
the average annualized total return for all reporting funds in the Lipper
Multi-Sector Income Funds
Category. |
Management
Investment
Adviser
Nuveen
Fund Advisors, LLC
Sub-Adviser
Nuveen
Asset Management, LLC
Portfolio
Managers
|
|
|
Name |
Title |
Portfolio
Manager of Fund Since |
Douglas
M. Baker, CFA |
Managing
Director |
March
2016 |
|
Kevin
R. Lorenz, CFA |
Senior
Managing Director |
March
2019 |
|
Katherine
Renfrew |
Managing
Director |
March
2019 |
Nicholas
W. Travaglino |
Managing
Director |
March
2019 |
Purchase
and Sale of Fund Shares
You
may purchase, redeem or exchange shares of the Fund on any business day through
a financial advisor or other financial intermediary. 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 |
$3,000
for all accounts except:
• $2,500
for Traditional/ Roth
IRA accounts.
• $2,000
for Coverdell Education
Savings Accounts.
• $250
for accounts opened through fee-based programs.
• No
minimum for retirement plans. |
Available
only to certain qualified retirement plans and other investors as
described in the prospectus and through fee-based programs.
$1
million for all accounts except:
• $100,000
for clients of financial intermediaries who charge such clients an ongoing
fee for advisory, investment, consulting or related services.
• No
minimum for certain qualified retirement plans and certain other
categories of eligible investors as described in the
prospectus. |
Available
only through fee-based programs and certain retirement plans, 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 eligible retirement plans and certain other categories of
eligible investors as described in the prospectus. |
Minimum Additional Investment |
$100 |
No
minimum. |
No
minimum. |
|
|
48 |
Section
1
Fund Summaries |
Tax
Information
The
Fund’s distributions are taxable and will generally be taxed as ordinary income
or capital gains, unless you are investing through a tax-deferred account, such
as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your
investment from such account).
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 |
49 |
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 September 30, 2023, Nuveen, LLC managed
approximately $1.1 trillion in assets, of which approximately $134.5 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.
|
|
50 |
Section
2
How We Manage Your Money |
|
|
|
|
|
|
Total
Experience (since
dates specified
below) |
Name
& Title |
Experience
Over Past Five Years |
At
Nuveen Asset Management* |
Total |
|
|
|
|
NUVEEN
CREDIT INCOME FUND |
|
|
|
|
Jean
C. Lin, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (high yield and real asset
income portfolio management and fixed income credit research) |
1994 |
1994 |
|
|
|
|
Karina
Bubeck, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2003 |
1998 |
|
|
|
|
Aashh
K. Parekh, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2005 |
2005 |
|
|
|
|
Brenda
A. Langenfeld, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (fixed income and real
asset income portfolio management) |
2004 |
2004 |
|
|
|
|
Mark
Zheng, CFA Senior
Director |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2010 |
2010 |
|
|
|
|
|
|
|
|
NUVEEN
FLEXIBLE INCOME FUND |
|
|
|
|
Thomas
J. Ray, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (portfolio management and
research) |
2015 |
1991 |
|
|
|
|
Susi
Budiman, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (portfolio management and
research) |
2006 |
2001 |
|
|
|
|
Stephen
T. Peña Managing
Director |
Nuveen
Asset Management and other advisory affiliates (portfolio
management) |
2015 |
2001 |
|
|
|
|
|
|
|
|
NUVEEN
FLOATING RATE INCOME FUND |
|
|
|
|
Scott
Caraher Senior
Managing Director Head
of Loans |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2002 |
1999 |
|
|
|
|
Kevin
R. Lorenz, CFA Senior
Managing Director |
Nuveen
Asset Management and other advisory affiliates (high yield portfolio
management) |
1987 |
1987 |
|
|
|
|
|
|
|
|
NUVEEN
HIGH YIELD INCOME FUND |
|
|
|
|
Scott
Caraher Senior
Managing Director Head
of Loans |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2002 |
1999 |
|
|
|
|
Jean
C. Lin, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (high yield and real asset
income portfolio management and fixed income credit research) |
1994 |
1994 |
|
|
|
|
Kristal
Y. Seales, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Section
2
How We Manage Your Money |
51 |
|
|
|
|
|
|
Total
Experience (since
dates specified
below) |
Name
& Title |
Experience
Over Past Five Years |
At
Nuveen Asset Management* |
Total |
|
|
|
|
NUVEEN
PREFERRED SECURITIES AND INCOME FUND |
|
|
|
|
Douglas
M. Baker, CFA Managing
Director Head
of Preferred Securities Sector Team |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2006 |
1996 |
|
|
|
|
Brenda
A. Langenfeld, CFA Managing
Director |
Nuveen
Asset Management and other advisory affiliates (fixed income and real
asset income portfolio management) |
2004 |
2004 |
|
|
|
|
|
|
|
|
NUVEEN
STRATEGIC INCOME FUND |
|
|
|
|
Douglas
M. Baker, CFA Managing
Director Head
of Preferred Securities Sector Team |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2006 |
1996 |
|
|
|
|
Kevin
R. Lorenz, CFA Senior
Managing Director |
Nuveen
Asset Management and other advisory affiliates (high yield portfolio
management) |
1987 |
1987 |
|
|
|
|
Katherine
Renfrew Managing
Director |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management, research and trading) |
1997 |
1994 |
|
|
|
|
Nicholas
W. Travaglino Managing
Director Head
of Securitized Sector Team |
Nuveen
Asset Management and other advisory affiliates (fixed income portfolio
management) |
2014 |
1999 |
|
|
|
|
|
|
|
|
*
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.
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 Credit Income
Fund |
Nuveen Flexible Income
Fund |
Nuveen Floating
Rate Income
Fund |
For
the first $125 million |
|
0.4000% |
0.5500% |
0.4500% |
For
the next $125 million |
|
0.3875% |
0.5375% |
0.4375% |
For
the next $250 million |
|
0.3750% |
0.5250% |
0.4250% |
For
the next $500 million |
|
0.3625% |
0.5125% |
0.4125% |
For
the next $1 billion |
|
0.3500% |
0.5000% |
0.4000% |
For
the next $3 billion |
|
0.3250% |
0.4750% |
0.3750% |
For
the next $5 billion |
|
0.3000% |
0.4500% |
0.3500% |
For
net assets over $10 billion |
|
0.2875% |
0.4375% |
0.3375% |
|
|
52 |
Section
2
How We Manage Your Money |
|
|
|
|
|
Average
Daily Net Assets |
|
Nuveen High
Yield Income Fund |
Nuveen Preferred Securities
and Income
Fund |
Nuveen Strategic Income
Fund
|
For
the first $125 million |
|
0.4500% |
0.5500% |
0.3600% |
For
the next $125 million |
|
0.4375% |
0.5375% |
0.3475% |
For
the next $250 million |
|
0.4250% |
0.5250% |
0.3350% |
For
the next $500 million |
|
0.4125% |
0.5125% |
0.3225% |
For
the next $1 billion |
|
0.4000% |
0.5000% |
0.3100% |
For
the next $3 billion |
|
0.3750% |
0.4750% |
0.2850% |
For
the next $5 billion |
|
0.3500% |
0.4500% |
0.2600% |
For
net assets over $10 billion |
|
0.3375% |
0.4375% |
0.2475% |
The
overall complex-level fee begins at a maximum rate of 0.2000% of each Fund’s
average daily net assets, based upon complex-level assets of $55 billion, with
breakpoints for eligible assets above that level. Therefore, the maximum
management fee rate for each Fund is the Fund-level fee plus 0.2000%. The
complex-level fee rate for Nuveen Credit Income Fund and Nuveen Strategic Income
Fund is determined by taking the current overall complex-level fee rate, which
is based on the aggregate amount of the “eligible assets” of all Nuveen funds,
and making, as appropriate, an upward adjustment to that rate based upon the
percentage of the particular Fund’s assets that are not “eligible assets.” The
complex-level fee for Nuveen Flexible Income Fund, Nuveen Floating Rate Income
Fund, Nuveen High Yield Income Fund and Nuveen Preferred Securities and Income
Fund is the overall complex-level fee rate. As of September 30, 2023, the
Funds’ effective complex-level fee rates were as follows:
|
|
|
Complex-Level Fee
Rate |
Nuveen
Credit Income Fund |
0.2000% |
Nuveen
Flexible Income Fund |
0.1611% |
Nuveen
Floating Rate Income Fund |
0.1611% |
Nuveen
High Yield Income Fund |
0.1611% |
Nuveen
Preferred Securities and Income Fund |
0.1611% |
Nuveen
Strategic Income Fund |
0.1949% |
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
Credit Income Fund |
0.38% |
Nuveen
Flexible Income Fund |
0.61% |
Nuveen
Floating Rate Income Fund |
0.57% |
Nuveen
High Yield Income Fund |
0.52% |
Nuveen
Preferred Securities and Income Fund |
0.65% |
Nuveen
Strategic Income 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 the Funds do not exceed the percentages of the average daily net assets
listed below of any class of Fund shares. However, because Class R6 shares are
not subject to sub-transfer agent and similar fees, the total annual operating
expenses for the Class R6 shares will be less than the expense limitation.
|
|
Section
2
How We Manage Your Money |
53 |
|
|
Nuveen
Credit Income Fund |
0.75%
through July 31, 2025 |
Nuveen
Flexible Income Fund |
0.75%
through July 31, 2025 and 1.25% thereafter |
Nuveen
Floating Rate Income Fund |
0.85%
through July 31, 2025 and 1.10% thereafter |
Nuveen
High Yield Income Fund |
0.79%
through July 31, 2025 and 1.35% thereafter |
Nuveen
Preferred Securities and Income Fund |
1.25% |
Nuveen
Strategic Income Fund |
0.59%
through July 31, 2025 |
The
expense limitations expiring July 31, 2025 may be terminated or modified prior
to that date only with the approval of the Board of Directors/Trustees of the
Funds. The expense limitations in effect thereafter may be terminated or
modified only with the approval of shareholders of the Funds.
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 August 31, 2023.
|
More
About Our Investment Strategies |
The
investment objectives of Nuveen Credit Income Fund and Nuveen Strategic Income
Fund, which are described in the "Fund Summaries" section, may be changed
without shareholder approval. If the investment objective of Nuveen Credit
Income Fund or Nuveen Strategic Income Fund changes, you will be notified at
least 60 days in advance. The investment objectives of Nuveen Flexible Income
Fund, Nuveen Floating Rate Income Fund, Nuveen High Yield Income Fund and Nuveen
Preferred Securities and Income Fund, which are described in the "Fund
Summaries" section, may not be changed without shareholder approval.
Certain
Funds have adopted a non-fundamental investment policy (a “Name
Policy”).
Nuveen Credit Income Fund, under normal circumstances, will invest at least 80%
of the sum of its net assets and the amount of any borrowings for investment
purposes in credit and credit-related instruments. Nuveen Floating Rate Income
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 floating
rate securities. Floating rate securities are defined to include floating rate
loans, other floating rate debt securities, money market securities and shares
of money market and short-term bond funds. Nuveen High Yield Income Fund, under
normal circumstances, will invest at least 80% of the sum of its net assets and
the amount of any borrowings for investment purposes in debt instruments (e.g.,
bonds and loans) rated below investment grade or, if unrated, deemed by the
Fund’s portfolio managers to be of comparable quality. 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. As a result of having a Name Policy, each Fund must
provide shareholders with a notice at least 60 days prior to any change of the
Fund's Name Policy.
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
|
|
54 |
Section
2
How We Manage Your Money |
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.
Corporate
Debt Securities
As
a principal investment strategy, the Funds may invest in corporate debt
securities issued by companies of all kinds, including those with small-, mid-
and large-capitalizations. Corporate debt securities are fixed income securities
issued by businesses to finance their operations. Notes, bonds, debentures and
commercial paper are the most common types of corporate debt securities, with
the primary difference being their maturities and secured or unsecured status.
Commercial paper has the shortest term and is usually unsecured. Corporate debt
securities may be rated investment-grade or below investment-grade and may carry
fixed or floating rates of interest.
Government
Securities
The
Funds may invest in government securities. U.S. government securities
include U.S. Treasury obligations and securities issued or guaranteed by various
agencies of the U.S. government, or by various instrumentalities which have been
established or sponsored by the U.S. government. U.S. Treasury obligations are
backed by the “full faith and credit” of the U.S. government. Securities issued
or guaranteed by federal agencies and U.S. government sponsored
instrumentalities may or may not be backed by the full faith and credit of the
U.S. government. As a principal investment strategy, Nuveen Credit Income Fund
and Nuveen Strategic Income Fund may invest in non-U.S. government securities.
Non-U.S. government securities include debt obligations issued or guaranteed by
governments (including states, provinces or municipalities) of countries other
than the United States, or by their agencies, authorities, or instrumentalities,
and debt obligations issued or guaranteed by supranational entities organized or
supported by several national governments.
Municipal
Securities
As
a principal investment strategy, Nuveen Flexible Income Fund, Nuveen Preferred
Securities and Income Fund and Nuveen Strategic Income Fund may invest in
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. Municipal bonds issued to finance
activities with a broad public purpose are generally exempt from federal income
tax. Taxable municipal bonds, however, are issued to finance activities with
less significant benefits to the public, such as the construction of sports
facilities, and as such the interest paid to holders of such bonds is taxable as
ordinary income. Many taxable municipal bonds offer yields comparable to those
of other taxable bonds, such as corporate and agency bonds. Taxable municipal
bonds may be rated investment-grade or below investment-grade and pay interest
based on fixed or floating rate coupons. Maturities may range from long-term to
short-term.
Loans
As
a principal investment strategy, Nuveen Credit Income Fund, Nuveen Floating Rate
Income Fund, Nuveen High Yield Income Fund and Nuveen Strategic Income Fund may
|
|
Section
2
How We Manage Your Money |
55 |
invest
in loans, including senior secured loans, unsecured and/or subordinated loans,
loan participations and unfunded contracts. These loans are typically made by or
issued to corporations primarily to finance acquisitions, refinance existing
debt, support organic growth, or pay out dividends, and are typically originated
by large banks and are then syndicated out to institutional investors as well as
to other banks. Loans typically bear interest at a floating rate, although some
loans pay a fixed rate. Floating rate loans have interest rates that reset
periodically, typically monthly or quarterly. The interest rates on floating
rate loans are generally based on a percentage above the London Interbank
Offered Rate (LIBOR) (which was phased out), a U.S. bank’s prime or base rate,
the overnight federal funds rate or another rate. See “What the Risks Are –
Principal Risks – Loan risk” below for information about the phase out of LIBOR
and its impact on certain floating rate loans and other instruments in which the
Funds may invest. Due to their lower place in the borrower’s capital structure,
unsecured and/or subordinated loans involve a higher degree of overall risk than
senior bank loans of the same borrower. Loan participations are loans that are
shared by a group of lenders. Unfunded commitments are contractual obligations
by lenders (such as a Fund) to loan an amount in the future or that is due to be
contractually funded in the future.
Loans
may have restrictive covenants limiting the ability of a borrower to further
encumber its assets. The types of covenants included in loan agreements
generally vary depending on market conditions, the creditworthiness of the
borrower, the nature of the collateral securing the loan and other factors. Such
restrictive covenants normally allow for early intervention and proactive
mitigation of credit risk by providing lenders with the ability to (1) intervene
and either prevent or restrict actions that may potentially compromise the
borrower’s ability to repay the loan and/or (2) obtain concessions from the
borrower in exchange for waiving or amending a particular covenant. Loans with
fewer or weaker restrictive covenants may limit a Fund’s ability to intervene or
obtain additional concessions from borrowers.
High
Yield Debt Securities
As
a principal investment strategy, the Funds may invest in debt securities rated
below investment grade or unrated securities deemed by the Funds’ sub-adviser to
be of comparable quality. Debt securities rated below investment grade are
commonly referred to as “high yield” securities or “junk” bonds. These types of
bonds are typically issued by companies without long track records of sales and
earnings, or by issuers that have questionable credit strength. High yield and
comparable unrated debt securities: (a) will likely have some quality and
protective characteristics that, in the judgment of the rating agency evaluating
the instrument, are outweighed by large uncertainties or major risk exposures to
adverse conditions; and (b) are predominantly speculative with respect to the
issuer’s capacity to pay interest and repay principal in accordance with the
terms of the obligation.
Asset-Backed
Securities
As
a principal investment strategy, Nuveen Credit Income Fund and Nuveen Strategic
Income Fund may invest in asset-backed securities. Asset-backed securities are
securities issued by trusts and special purpose entities that are backed by
pools of assets, such as automobile loans and credit-card receivables, and which
pass through the payments on the underlying obligations to the security holders
(less servicing fees paid to the originator or fees for any credit enhancement).
Typically, the originator of the loan or accounts receivable transfers it to a
specially created trust, which repackages it as securities with a minimum
denomination and a specific term. The securities are then privately placed or
publicly offered.
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Mortgage-Backed
Securities
As
a principal investment strategy, Nuveen Credit Income Fund, Nuveen Flexible
Income Fund and Nuveen Strategic Income Fund may invest in mortgage-backed
securities. A mortgage-backed security is a type of pass-through security backed
by an ownership interest in a pool of mortgage loans. Mortgage-backed securities
may be guaranteed by, or secured by collateral that is guaranteed by, the U.S.
government, its agencies, instrumentalities or sponsored corporations.
Mortgage-backed securities may also be privately issued; these include
commercial mortgage-backed securities.
Preferred
Securities
As
a principal investment strategy, Nuveen Credit Income Fund, Nuveen Flexible
Income Fund, Nuveen Preferred Securities and Income Fund and Nuveen Strategic
Income Fund may invest in all types of preferred securities, including both
perpetual preferred securities and hybrid securities. Perpetual preferred
securities are generally equity securities of the issuer that have priority over
the issuer’s common shares as to the payment of dividends (i.e.,
the issuer cannot pay dividends on its common shares until the dividends on the
preferred shares are current) and as to the payout of proceeds of a bankruptcy
or other liquidation, but are subordinate to an issuer’s senior debt and junior
debt as to both types of payments. Additionally, in a bankruptcy or other
liquidation, perpetual preferred securities are generally subordinate to an
issuer’s trade creditors and other general obligations. Perpetual preferred
securities typically have a fixed liquidation (or “par”) value.
The
term “preferred securities” also includes hybrid securities and other types of
preferred securities that do not have the features described above. Preferred
securities that are hybrid securities often behave similarly to investments in
perpetual preferred securities and are regarded by market investors as being
part of the preferred securities market. Such hybrid securities possess varying
combinations of features of both debt and perpetual preferred securities and as
such they may constitute senior debt, junior debt or preferred shares in an
issuer’s capital structure.
The
term “preferred securities” also includes certain forms of debt that are
regarded by the investment marketplace to be part of the broader preferred
securities market. Among these preferred securities are certain exchange-listed
debt issues that historically have several attributes, including trading and
investment performance characteristics, in common with exchange-listed perpetual
preferred securities and hybrid securities. Generally, these types of preferred
securities are senior debt in the capital structure of an issuer.
As
a general matter, dividend or interest payments on preferred securities may be
cumulative or non-cumulative and may be deferred (in the case of
cumulative payments) or skipped (in the case
of non-cumulative payments) at the option of the issuer.
Generally,
preferred security holders have no voting rights with respect to the issuing
company, except in some cases voting rights may arise if the issuer fails to pay
the preferred share dividends or if a declaration of default occurs and is
continuing.
Preferred
securities may either trade over-the-counter (“OTC”)
or trade on an exchange. Preferred securities can be structured differently for
retail and institutional investors, and a Fund may invest in preferred
securities of either structure. The retail segment is typified by $25 par value
exchange-traded securities, which trade on exchanges such as the New York Stock
Exchange (“NYSE”)
and the institutional segment is typified by $1,000 par value OTC securities.
Typically, most $25 par value exchange-traded securities have fixed-rate coupon
structures, while the institutional segment of $1,000 par securities are
variable-rate securities. Both $25 and $1,000 par value securities are
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often
callable at par value, typically at least five years after their original
issuance date (i.e., the issuer has the right to call in or redeem the
preferred security at a pre-set price after a specified date).
Convertible
Securities
As
a principal investment strategy, Nuveen Flexible Income Fund, Nuveen Floating
Rate Income Fund and Nuveen Preferred Securities and Income Fund may invest in
convertible securities, which are hybrid securities that combine the investment
characteristics of bonds and common stocks. Convertible securities typically
consist of debt securities or preferred securities that may be converted within
a specified period of time (typically for the entire life of the security) into
a certain amount of common stock or other equity security of the same or a
different issuer at a predetermined price. They also include debt securities
with warrants or common stock attached and derivatives combining the features of
debt securities and equity securities. Convertible securities entitle the holder
to receive interest paid or accrued on debt securities, or dividends paid or
accrued on preferred securities, until the securities mature or are redeemed,
converted or exchanged.
Contingent
Capital Securities
As
a principal investment strategy, Nuveen Credit Income Fund, Nuveen Preferred
Securities and Income Fund and Nuveen Strategic Income Fund may invest in
contingent capital securities (sometimes referred to as "CoCos").
CoCos are hybrid securities, issued primarily by non-U.S. financial
institutions, which have loss absorption mechanisms benefitting the issuer built
into their terms. CoCos are not preferred securities. CoCos provide for
mandatory conversion into the common stock of the issuer or a permanent or
temporary full or partial write-down of the principal amount of the security
upon the occurrence of certain triggers linked to minimum regulatory capital
thresholds. In addition, they may explicitly provide for mandatory conversion or
a principal write-down upon the occurrence of certain events such as regulatory
bodies calling into question the issuing institution’s continued viability as a
going-concern. Equity conversion or principal write-down features are tailored
to the issuer and its regulatory requirements and, unlike traditional
convertible securities, conversions are not voluntary and are not intended to
benefit the investor.
Master
Limited Partnerships
As
a principal investment strategy, Nuveen Flexible Income Fund may invest in
master limited partnerships (MLPs). An MLP is an entity, most commonly a limited
partnership, that is taxed as a partnership, publicly traded and listed on a
national securities exchange. Holders of common units of MLPs typically have
limited control and limited voting rights as compared to holders of a
corporation’s common shares. Preferred units issued by MLPs are not typically
listed or traded on an exchange. Holders of preferred units can be entitled to a
wide range of voting and other rights. Debt securities of MLPs are similar to
debt securities of other companies. Such securities may be rated or unrated, may
be above or below investment-grade quality, and may carry fixed or floating
interest rates. MLPs are limited by the Internal Revenue Code to only apply to
enterprises that engage in certain businesses, mostly pertaining to the use of
natural resources, such as petroleum and natural gas extraction and
transportation. Some real estate enterprises may also qualify as MLPs.
Covered
Calls
Nuveen
Flexible Income Fund may sell covered call options in an attempt to generate
increased total return from a security in which the Fund holds a long position.
A call option enables the purchaser to elect to receive a security at a
predetermined price and time. A call option written by the Fund on a security is
“covered” if the Fund owns the
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security
underlying the call or has an absolute and immediate right to acquire that
security without additional cash consideration upon conversion or exchange of
other securities held by the Fund. A call option is also covered if the Fund
holds a call on the same security as the call written where the exercise price
of the call held is (i) equal to or less than the exercise price of the call
written or (ii) greater than the exercise price of the call written, provided
the difference is maintained by the Fund in segregated assets.
Short
Sales
Nuveen
Flexible Income Fund may take short positions in equity securities, which are
often referred to as “short sales.” A short sale is a sale of a security the
Fund has borrowed, with the expectation that the security will underperform the
market. To settle the short sale transaction, the Fund buys the same security at
a later date and returns it to the lender of the security. The Fund makes money
on a short position if the market price of the security goes down after the
short sale or if the market price of the securities it buys with the proceeds of
the short sale increases more than that of the security sold short. Conversely,
if the price of the security sold short goes up after the short sale, the Fund
loses money because it has to pay more to replace the borrowed security than it
received when it sold the security short. The Fund may use all or a portion of
the proceeds of its short sales to purchase additional portfolio securities.
This practice is considered “leverage” and may involve substantial risk.
Collateralized
Loan Obligations
As
a principal investment strategy, Nuveen Credit Income Fund may invest in
collateralized loan obligations (“CLOs”).
A CLO is an asset-backed security whose underlying collateral is a pool of
loans, which may include, among others, domestic and foreign floating rate and
fixed rate senior secured loans, senior unsecured loans, and subordinate
corporate loans, including loans that may be rated below investment grade. The
Fund and other investors in CLOs ultimately bear the credit risk of the
underlying collateral. CLOs issue classes or “tranches” that offer various
maturity, risk and yield characteristics. Tranches are categorized as senior,
mezzanine and subordinated/equity, according to their degree of risk. If there
are defaults or the relevant collateral otherwise underperforms, scheduled
payments to senior tranches of the CLOs take precedence over those of mezzanine
tranches and scheduled payments to mezzanine tranches take precedence over those
to subordinated/equity tranches. Because it is partially protected from
defaults, a senior tranche of a CLO typically has higher credit ratings and
lower yields than its underlying collateral and may be rated investment grade.
If a CLO triggers an event of default as a result of failing to make payments
when due or for other reasons, the CLO would be subject to the possibility of
liquidation, which could result in full loss of value to the CLO equity or
junior debt investors.
Financial
Services Company Securities
Nuveen
Preferred Securities and Income Fund intends to invest at least 25% of its
assets in securities of companies principally engaged in financial services.
Nuveen Strategic Income Fund currently invests a significant portion of its
assets in the financial services sector, although this may change over time,
Financial services companies include, but are not limited to, companies involved
in activities such as banking, mortgage finance, consumer finance, specialized
finance, investment banking and brokerage, asset management and custody,
corporate lending, insurance, and financial investment, and real estate,
including but not limited to real estate investment trusts.
Non-U.S.
Investments
As
a principal investment strategy, the Funds may invest in securities of non-U.S.
issuers. The Funds will classify an issuer of a security as being a U.S. or
non-U.S. issuer based on the determination of an unaffiliated, recognized
financial data provider. Such
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determinations
are based on a number of criteria, such as the issuer’s country of domicile, the
primary exchange on which the security trades, the location from which the
majority of the issuer’s revenue comes, and the issuer’s reporting currency.
Nuveen
Credit Income Fund and Nuveen Strategic Income Fund may invest in issuers
located in emerging markets. Emerging market countries include any country other
than Canada, the United States and the countries comprising the MSCI
EAFE®
Index (currently, Australia, Austria, Belgium, Denmark, Finland, France,
Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand,
Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom).
Other
Investment Companies
As
a principal investment strategy, Nuveen Credit Income Fund may invest in
securities of other open-end or closed-end investment companies, including ETFs.
The remaining Funds may invest in securities of other investment companies as a
non-principal investment strategy. An ETF is an investment company that holds a
portfolio of securities generally designed to track the performance of a
securities index, including industry, sector, country and region indexes. ETFs
trade on a securities exchange and their shares may, at times, trade at a
premium or discount to their net asset value.
As
a shareholder in an investment company, the Funds will bear their ratable share
of that vehicle’s expenses, and would remain subject to payment of the Funds’
advisory and administrative fees with respect to assets so invested.
Shareholders would therefore be subject to duplicative expenses to the extent
the Funds invest in an investment company. In addition, the Funds will incur
brokerage costs when purchasing and selling shares of ETFs. Securities of
investment companies may be leveraged, in which case the value and/or yield of
such securities will tend to be more volatile than securities of unleveraged
vehicles.
Generally,
investments in other investment companies (including ETFs) are subject to
statutory limitations prescribed by the Investment Company Act of 1940, as
amended (the “1940
Act”).
These limitations include a prohibition on a Fund acquiring more than 3% of the
voting shares of any other investment company, and a prohibition on investing
more than 5% of the Fund’s total assets in the securities of any one investment
company or more than 10% of its total assets, in the aggregate, in investment
company securities. Subject to certain conditions, the Funds may invest in money
market funds beyond the statutory limits described above.
Cash
Equivalents and Short-Term Investments
As
a non-principal investment strategy, the Funds may invest in cash and in U.S.
dollar-denominated high-quality money market instruments and other short-term
securities, including money market funds, in such proportions as warranted by
prevailing market conditions and the Funds’ principal investment strategies.
Under normal market conditions, Nuveen High Yield Income Fund may hold up to 10%
of its net assets in these holdings. The Funds may temporarily invest without
limit in such holdings for liquidity purposes, or in an attempt to respond to
adverse market, economic, political or other conditions. Being invested in these
securities may keep a Fund from participating in a market upswing and prevent a
Fund from achieving its investment objective(s).
Effective
Maturity and Effective Duration
Nuveen
Strategic Income Fund attempts to maintain a specified weighted average
effective maturity and/or weighted average effective duration of its portfolio.
Generally, the longer the effective maturity or effective duration of the Fund’s
portfolio, the more sensitive the Fund’s net asset value will be to changes in
interest rates, which typically corresponds to higher volatility and risk.
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A
bond’s maturity is the length of time until the principal is paid back. The
effective maturity of a bond may be substantially shorter than its stated or
final maturity. In calculating the effective maturity of bonds in the Fund’s
portfolio, the sub-adviser estimates the shortening effect of expected principal
prepayments and call provisions on the bonds’ maturities. Effective maturity
provides a better estimate of interest rate risk under normal market conditions
than stated maturity, but may underestimate interest rate risk in an environment
of rising market interest rates.
Effective
duration incorporates a bond’s yield, coupon, final maturity and call features
into one number that is designed to estimate how much the value of a bond will
change with a given change in interest rates. As a general rule, for every 1%
increase or decrease in market interest rates, a bond’s price will change
approximately 1% in the opposite direction for every year of the bond’s
effective duration. For example, if a bond has an effective duration of 5 years
and interest rates increase by 1%, the bond’s price would be expected to decline
by approximately 5%. Effective duration is subject to a number of limitations.
It is most useful when interest rate changes are small, rapid, and occur equally
in short-term and long-term securities. In addition, it is difficult to
calculate precisely for bonds with prepayment options, such as mortgage- and
asset-backed securities, because the calculation requires assumptions about
prepayment rates. Also, an increase in market interest rates will generally
increase a bond’s effective duration, which in turn will make the value of the
bond more sensitive to changes in interest rates and result in even steeper
price declines in the event of further market interest rate increases. For these
reasons, effective duration should not solely be relied upon to indicate the
Fund’s potential price volatility in relation to changes in market interest
rates.
Credit
Quality
Nuveen
Strategic Income Fund may not invest in securities that are rated lower than CCC
or its equivalent at the time of purchase by a rating service, such as Moody’s
or Standard & Poor’s, or in unrated securities of comparable quality as
determined by the Fund’s sub-adviser. There is no minimum rating requirement for
securities held by the other Funds. Any reference in this prospectus to a
specific credit 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.
Debt securities that are rated below investment grade (BB/Ba or lower) are
commonly referred to as “high yield” securities 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.
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—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 ten business days after the end of the 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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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 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.
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.
Collateralized
loan obligations risk:
Nuveen Credit Income Fund may invest in CLOs. A CLO is an asset-backed security
whose underlying collateral is a pool of loans, which may include, among others,
domestic and foreign floating rate and fixed rate senior secured loans, senior
unsecured loans, and subordinate corporate loans, including loans that may be
rated below investment grade or equivalent unrated loans. In addition to the
risks associated with loans, illiquid investments and high-yield securities
described below, investments in CLOs carry additional risks including, but not
limited to, the risk that: (1) distributions from the collateral may not be
adequate to make interest or other payments; (2) the quality of the collateral
may decline in value or default; (3) the Fund may invest in tranches of CLOs
that are subordinate to other tranches; (4) the complex structure of the CLO may
not be fully understood at the time of investment and may produce disputes with
the issuer or unexpected investment results; and (5) the CLO’s manager may
perform poorly. CLOs may charge management and other administrative fees, which
are in addition to those of the Fund.
Contingent
capital security risk:
As a principal investment strategy, Nuveen Credit Income Fund, Nuveen Preferred
Securities and Income Fund and Nuveen Strategic
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Income
Fund may invest in CoCos. A loss absorption mechanism trigger event for CoCos
would likely be the result of, or related to, the deterioration of the issuer’s
financial condition (e.g., a decrease in the issuer’s capital ratio) and status
as a going concern. In such a case, with respect to CoCos that provide for
conversion into common stock upon the occurrence of the trigger event, the
market price of the issuer’s common stock received by a Fund will have likely
declined, perhaps substantially, and may continue to decline, which may
adversely affect the Fund’s net asset value. Further, the issuer’s common stock
would be subordinate to the issuer’s other classes of securities and therefore
would worsen a Fund’s standing in a bankruptcy proceeding. In addition, because
the common stock of the issuer may not pay a dividend, investors in these
instruments could experience a reduced income rate, potentially to zero. In view
of the foregoing, CoCos are often rated below investment grade and are subject
to the risks of high yield securities.
CoCos
may be subject to an automatic write-down (i.e., the automatic write-down of the
principal amount or value of the securities, potentially to zero, and the
cancellation of the securities) under certain circumstances, which could result
in a Fund losing a portion or all of its investment in such securities. In
addition, the Fund may not have any rights with respect to repayment of the
principal amount of the securities that has not become due or the payment of
interest or dividends on such securities for any period from (and including) the
interest or dividend payment date falling immediately prior to the occurrence of
such automatic write-down. An automatic write-down could also result in a
reduced income rate if the dividend or interest payment is based on the
security’s par value. Coupon payments on CoCos may be discretionary and may be
cancelled by the issuer for any reason or may be subject to approval by the
issuer’s regulator and may be suspended in the event there are insufficient
distributable reserves.
In
certain scenarios, investors in CoCos may suffer a loss of capital ahead of
equity holders or when equity holders do not. There is no guarantee that a Fund
will receive a return of principal on CoCos. Any indication that an automatic
write-down or conversion event may occur can be expected to have a material
adverse effect on the market price of CoCos.
The
prices of CoCos may be volatile. Additionally, the trading behavior of a given
issuer’s CoCo may be strongly impacted by the trading behavior of other issuers’
CoCos, such that negative information from an unrelated CoCo may cause a decline
in value of one or more CoCos held by a Fund. Accordingly, the trading behavior
of CoCos may not follow the trading behavior of other similarly structured
securities.
CoCos
are issued primarily by financial institutions. Therefore, CoCos present
substantially increased risks at times of financial turmoil, which could affect
financial institutions more than companies in other sectors and
industries.
Convertible
security risk:
As a principal investment strategy, Nuveen Flexible Income Fund, Nuveen Floating
Rate Income Fund and Nuveen Preferred Securities and Income Fund may invest in
convertible securities. Convertible securities are subject to certain risks of
both equity and debt securities. Convertible securities generally offer lower
interest or dividend yields than non-convertible securities of similar quality.
The market values of convertible securities tend to decline as interest rates
increase and, conversely, to increase as interest rates decline. However, a
convertible security’s market value also tends to reflect the market price of
the common stock of the issuing company. Convertible securities are also exposed
to the risk that an issuer is unable to meet its obligation to make dividend or
interest and principal payments when due as a result of changing financial or
market conditions.
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Mandatory
convertible securities are distinguished as a subset of convertible securities
because the conversion is not optional and the conversion price at maturity is
based solely upon the market price of the underlying common stock, which may be
significantly less than par or the price (above or below par) paid. Mandatory
convertible securities generally do not limit the potential for loss to the same
extent as securities convertible at the option of the holder.
Covered
call risk:
Covered call risk is the risk that Nuveen Flexible Income Fund will forgo,
during the option’s life, the opportunity to profit from increases in the market
value of the security covering the call option above the sum of the premium and
the strike price of the call, but has retained the risk of loss should the price
of the underlying security decline. In addition, as the Fund writes covered
calls over more of its portfolio, its ability to benefit from capital
appreciation becomes more limited. The writer of an option has no control over
the time when it may be required to fulfill its obligation as a writer of the
option. Once an option writer has received an exercise notice, it cannot effect
a closing purchase transaction in order to terminate its obligation under the
option and must deliver the underlying security at the exercise price.
Additionally, the hours of trading for options may not conform to the hours
during which the underlying securities are traded. To the extent that the
options markets close before the markets for the underlying securities,
significant price and rate movements can take place in the underlying markets
that cannot be reflected in the options market. If certain events affecting the
underlying equity security occur, the exercise price of an option may be
adjusted downward before the option’s expiration, which may reduce the Fund’s
capital appreciation potential on the underlying security.
Credit
risk: Credit
risk is the risk that an issuer of a security 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 dividend, interest and principal
payments and the related risk that the value of a security may decline because
of concerns about the issuer’s ability or willingness to make such payments.
Securities are subject to varying degrees of credit risk, which are often
reflected in credit ratings. The credit rating of a security 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 security 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 security’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, 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.
To
the extent that a Fund holds securities 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 securities to decline. Security
insurance does not guarantee the value of either individual securities 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 when the market believes that bonds generally have
a greater risk of default. Increasing
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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.
Currency
risk:
Changes in currency exchange rates will affect the value of non-U.S. securities,
the value of dividends and interest earned from such securities, gains and
losses realized on the sale of such securities, and derivative transactions tied
to such securities, and hence will affect the net asset value of a Fund that
invests in such securities. A strong U.S. dollar relative to these other
currencies will adversely affect the value of a Fund to the extent it invests in
such non-U.S. securities. Even though the non-U.S. securities held by Nuveen
Flexible Income Fund, Nuveen Floating Rate Income Fund and Nuveen High Yield
Income Fund are traded in U.S. dollars, their prices are typically indirectly
influenced by currency fluctuations.
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:
As a principal investment strategy, Nuveen Credit Income Fund, Nuveen Flexible
Income Fund, Nuveen Floating Rate Income Fund, Nuveen High Yield Income Fund and
Nuveen Strategic Income Fund may utilize derivatives. 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
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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 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 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.
Nuveen
Credit Income Fund and Nuveen Strategic Income Fund may invest in currency
forwards. Currency forwards may be individually negotiated and privately traded,
exposing them to credit and counterparty risks. The precise matching of the
currency forward amounts and the value of the instruments denominated in the
corresponding currencies will not generally be possible because the future value
of such securities in foreign currencies will change as a consequence of market
movements in the value of those securities between the date on which the
contract is entered into and the date it matures.
Dollar
roll transaction risk:
Nuveen Strategic Income Fund may invest in dollar roll transactions. In a dollar
roll transaction, the Fund sells mortgage-backed securities for delivery in the
current month while contracting with the same party to repurchase similar
securities at a future date. Because the Fund gives up the right to receive
principal and interest paid on the securities sold, a mortgage dollar roll
transaction will diminish the investment performance of the Fund unless the
difference between the price received for the securities sold and the price to
be paid for the securities to be purchased in the future, plus any fee income
received, exceeds any income, principal payments, and
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appreciation
on the securities sold as part of the mortgage dollar roll. Whether mortgage
dollar rolls will benefit the Fund may depend upon the sub-adviser’s ability to
predict mortgage prepayments and interest rates. In addition, the use of
mortgage dollar rolls by the Fund increases the amount of the Fund’s assets that
are subject to market risk, which could increase the volatility of the price of
the Fund’s shares. These transactions are also subject to the risk that the
counterparty to the transaction may not or be unable to perform in accordance
with the terms of the instrument.
Emerging
markets risk: As
a principal investment strategy, Nuveen Credit Income Fund and Nuveen Strategic
Income Fund may invest in securities of issuers located in emerging market
countries. The risk of foreign investment often increases in countries with
emerging markets or that are otherwise economically tied to emerging market
countries. Emerging markets generally do not have the level of market efficiency
and strict standards in accounting, auditing, financial reporting, recordkeeping
and securities regulation to be on par with advanced economies. Additionally,
certain emerging markets do not provide information to or cooperate with the
Public Company Accounting Oversight Board or other U.S. regulators. Certain
emerging market countries may also face other significant internal or external
risks, such as the risk of war, macroeconomic, geopolitical, global health
conditions, and ethnic, religious and racial conflicts. Obtaining disclosures
comparable to frequency, availability and quality of disclosures required by
securities in the U.S. may be difficult. As a result, there could be less
information about issuers in emerging market countries, which could negatively
affect the ability of the Fund’s sub-adviser to evaluate local companies or
their potential impact on the Fund’s performance. Investments in emerging
markets come with much greater risk due to political instability, domestic
infrastructure problems and currency volatility. Because their financial markets
may be very small, prices of financial instruments in emerging market countries
may be volatile and difficult to determine. In addition, foreign investors such
as a Fund are subject to a variety of special restrictions in many emerging
market countries. Shareholder claims that are available in the U.S. (including
derivative litigation), as well as regulatory oversight, authority and
enforcement actions that are common in the U.S. by regulators, may be difficult
or impossible for shareholders of securities in emerging market countries or for
U.S. authorities to pursue. National policies (including sanctions programs) may
limit a Fund’s investment opportunities including restrictions on investment in
issuers or industries deemed sensitive to national interests.
Equity
security risk:
As a principal investment strategy, Nuveen Flexible Income Fund and Nuveen
Floating Rate Income Fund may invest in equity securities. Equity securities in
a Fund’s portfolio may decline significantly in price over short or extended
periods of time. Even a long-term investment approach cannot guarantee a profit.
Price changes may occur in the market as a whole, or they may occur in only a
particular country, company, industry, or sector of the market. Conversely, the
value of Nuveen Flexible Income Fund’s short positions, if any, may decline
because of an increase in the equity market as a whole or because of increases
in a particular company, industry, or sector of the market. From time to time, a
Fund may invest a significant portion of its assets in companies in one or more
related sectors or industries which would make the Fund more vulnerable to
adverse developments affecting such sectors or industries. Adverse events in any
part of the U.S. and global financial markets may have unexpected negative
effects on equity markets. These events may at times result in unusually high
market volatility, including short-term volatility, which could negatively
affect Fund performance.
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A
variety of factors can negatively affect the price of a particular company's
equity securities. These factors may include, but are not limited to: poor
earnings, a loss of customers, a cut in dividends, certain management decisions,
litigation against the company, general unfavorable performance of the company's
sector or industry, or changes in government regulations affecting the company
or its industry.
ETF
risk: As
a principal investment strategy, Nuveen Credit Income Fund may invest in ETFs.
Like any fund, an ETF is subject to the risks of the underlying securities that
it holds. In addition, investments in ETFs present certain risks that do not
apply to investments in traditional mutual funds. For index-based ETFs, while
such ETFs seek to achieve the same returns as a particular market index, the
performance of an ETF may diverge from the performance of such index (commonly
known as tracking error). ETFs are subject to fees and expenses (like management
fees and operating expenses) and the Fund will indirectly bear its proportionate
share of any such fees and expenses paid by the ETFs in which it invests.
Moreover, ETF shares may trade at a premium or discount to their net asset
value. As ETFs trade on an exchange, they are subject to the risks of any
exchange-traded instrument, including: (i) an active trading market for its
shares may not develop or be maintained, (ii) market makers or authorized
participants may decide to reduce their role or step away from these activities
in times of market stress, (iii) trading of its shares may be halted by the
exchange, (iv) the difference between the bid and ask spread of a given ETF may
negatively affect the value the Fund may receive upon sale of that ETF, and (v)
its shares may be delisted from the exchange.
Financial
services sector risk:
Nuveen Preferred Securities and Income Fund intends to invest at least 25% of
its assets in securities of companies principally engaged in financial services.
This makes the Fund more susceptible to adverse economic or regulatory
occurrences affecting the financial services sector. The Fund is also subject to
the risks of investing in the individual industries and securities that comprise
the financial services sector, such as the bank, diversified financials, real
estate (including REITs) and insurance industries. Investments in the financial
services sector poses risks, including the following:
· Financial
services companies may suffer a setback if regulators change the rules under
which they operate.
· Unstable
interest rates can have a disproportionate effect on the financial services
sector.
· The
profitability of companies in the financial sector is largely dependent upon the
availability and cost of capital which may fluctuate significantly in response
to changes in interest rates and general economic developments.
· Financial
services companies whose securities the Fund may purchase may themselves have
concentrated portfolios, such as a high level of loans to real estate
developers, which makes them vulnerable to economic conditions that affect that
sector.
· Financial
services companies have been affected by increased competition, which could
adversely affect the profitability or viability of such companies.
· Financial
services companies have been significantly and negatively affected by the
downturn in the subprime mortgage lending market and the resulting impact on the
world’s economies.
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· Financial
services companies are subject to extensive government regulation that may limit
the amounts and types of loans and other financial commitments that such
companies can make.
Foreign
investment risk: Non-U.S.
issuers or U.S. issuers with significant non-U.S. operations may be subject to
risks in addition to or different than those of issuers that are located in or
principally operated in the United States due to political, social and economic
developments abroad, as well as armed conflicts and different regulatory
environments and laws, potential seizure by the government of company assets,
higher taxation, withholding taxes on dividends and interest and limitations on
the use or transfer of portfolio assets. If any of these events were to occur,
the affected security may experience drastic declines. In the event of a seizure
of assets by a non-U.S. government, a Fund could lose its entire investment in
that particular country.
To
the extent a Fund invests in depositary receipts, the Fund will be subject to
many of the same risks as when investing directly in non-U.S. securities. The
holder of an unsponsored depositary receipt may have limited voting rights and
may not receive as much information about the issuer of the underlying
securities as would the holder of a sponsored depositary receipt.
Other
non-U.S. investment risks include the following:
· Enforcing
legal rights may be difficult, costly and slow in non-U.S. countries, and there
may be special problems enforcing claims against non-U.S.
governments.
· Non-U.S.
companies may not be subject to accounting, auditing, financial reporting or
recordkeeping standards or governmental supervision comparable to U.S.
companies, and there may be less public information about their
operations.
· Non-U.S.
markets may be less liquid and more volatile and may be more difficult to value
than U.S. markets.
· The
U.S. and non-U.S. markets often rise and fall at different times or by different
amounts due to economic or other developments, including armed conflict or
political, social or diplomatic events, particular to a given country or region.
This phenomenon would tend to lower the overall price volatility of a portfolio
that included both U.S. and non-U.S. securities. Sometimes, however, global
trends will cause the U.S. and non-U.S. markets to move in the same direction,
reducing or eliminating the risk reduction benefit of international
investing.
· Non-U.S.
securities traded on foreign exchanges may be subject to further risks due to
the inexperience of local investment professionals and financial institutions,
the possibility of permanent or temporary termination of trading, and greater
spreads between bid and asked prices for securities. In addition, non-U.S.
exchanges and investment professionals are subject to less governmental
regulation, and commissions may be higher than in the United States. Also, there
may be delays in the settlement of non-U.S. exchange transactions. To the extent
that the underlying securities held by a Fund trade on foreign exchanges or in
foreign markets that may be closed when the U.S. markets are open, there are
likely to be deviations between the current price of an underlying security and
the last quoted price for the underlying security.
· A
Fund’s income from non-U.S. issuers may be subject to non-U.S. withholding
taxes. In some countries, the Fund also may be subject to taxes on trading
profits and, on certain securities transactions, transfer or stamp duties tax.
To the extent non-U.S. income taxes are paid by the Fund, U.S. shareholders may
be entitled to a credit or deduction for U.S. tax purposes.
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Some
countries restrict to varying degrees foreign investment in their securities
markets. In some circumstances, these restrictions may limit or preclude
investment in certain countries or may increase the cost of investing in
securities of particular companies. Non-U.S. countries may be subject to
economic sanctions or other measures by the United States or other governments.
The type and severity of sanctions and other similar measures, including counter
sanctions and other retaliatory actions, that may be imposed could vary broadly
in scope, and their impact is impossible to predict. The imposition of sanctions
could, among other things, cause a decline in the value and/or liquidity of
securities issued by the sanctioned country or companies located in or
economically tied to the sanctioned country and increase market volatility and
disruption in the sanctioned country and throughout the world. Sanctions and
other similar measures could limit or prevent a Fund from buying and selling
securities (in the sanctioned country and other markets), significantly delay or
prevent the settlement of securities transactions, and significantly impact the
Fund’s liquidity and performance.
Frequent
trading risk:
A Fund's portfolio turnover rate may exceed 100%. Frequent trading of portfolio
securities may produce capital gains, which are taxable to shareholders when
distributed. Frequent trading may also increase the amount of commissions or
mark-ups to broker-dealers that a Fund pays when it buys and sells securities,
which may detract from the Fund’s performance.
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.
Illiquid
investments risk:
Certain securities held by Nuveen Credit Income Fund are illiquid investments,
which may be difficult to sell for the value at which they are carried, if at
all, or at any price within the desired time frame. Illiquid investments are
those that are not reasonably expected to be sold or disposed of in current
market conditions in seven calendar days or less without the sale or disposition
significantly changing the market value of the investment. Pursuant to
applicable SEC regulations, the Fund may not invest more than 15% of its net
assets in illiquid investments. The Fund has implemented a liquidity risk
management program and related procedures to identify illiquid investments
pursuant to this regulation. The Fund may be limited in its ability to invest in
illiquid and “less liquid” investments, which may adversely affect the Fund’s
performance and ability to achieve its investment objective. The Fund’s
investments in illiquid investments may reduce the returns of the Fund because
it may be unable to sell the illiquid investment at an advantageous time or
price, which could prevent the Fund from taking advantage of other investment
opportunities. There is also a risk that unusually high redemption requests,
including redemption requests from certain large shareholders (such as
institutional investors) or asset allocation changes, may make it difficult for
the Fund to sell investments in sufficient time to allow it to meet redemptions
or require the Fund to sell illiquid investments at reduced prices or under
unfavorable
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conditions.
Illiquid investments may trade less frequently, in lower quantities and/or at a
discount as compared to more liquid investments, which may cause the Fund to
receive distressed prices and incur higher transaction costs when selling such
investments. Securities that are liquid at the time of purchase may subsequently
become illiquid due to events such as adverse developments for an issuer,
industry-specific developments, market events, rising interest rates, changing
economic conditions or investor perceptions and geopolitical risk.
Income
risk:
A Fund’s income 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 securities (or portfolio securities
that have been called, see “Call risk” above, or prepaid, see "Mortgage- and
asset-backed securities risk" below), in lower-yielding securities. In addition,
a Fund’s income could decline when the Fund experiences defaults on debt
securities or defaults or deferrals on preferred securities it holds.
Furthermore, a Fund's income from dividends may decline, which may decrease the
distributions by the Fund. 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.
Interest
rate risk:
Fixed-rate securities held by a Fund will fluctuate in value with changes in
interest rates. In general, fixed-rate securities 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 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
fixed-rate securities 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, fixed-rate securities with shorter durations or maturities will be
less volatile but may provide lower returns than fixed-rate securities with
longer durations or maturities. Rising interest rates also may lengthen the
duration of securities 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. Risks associated with rising
interest rates are heightened given that the U.S. Federal Reserve (the
“Fed”)
has, as of the date of this Prospectus, begun to sharply raise interest rates
from historically low levels and has signaled an intention to continue doing so
until current inflation levels align with the Fed’s long-term inflation target.
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. Because Nuveen Floating
Rate Income Fund primarily invests in floating rate loans, interest rate risk
may be reduced. However, floating rate loans are still subject to interest rate
risk, and their values may decrease, if their interest rates do not reset as
quickly as a general rise in interest rates.
Loan
risk:
As a principal investment strategy, Nuveen Credit Income Fund, Nuveen Floating
Rate Income Fund, Nuveen High Yield Income Fund and Nuveen Strategic
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Income
Fund invest in loans (including loan participations and assignments). In
addition to risks generally associated with debt securities, loans in which a
Fund may invest, including secured loans, unsecured and/or subordinated loans
and loan participations, are subject to other risks. Loans generally are subject
to legal or contractual restrictions on resale and may trade infrequently on the
secondary market. It is sometimes necessary to obtain the consent of the
borrower and/or agent before selling or assigning a floating rate loan. The lack
of an active trading market for certain loans may impair the ability of a Fund
to realize full value in the event of the need to sell a loan and may make it
difficult to value such loans. Portfolio transactions in loans may settle in as
short as seven days but typically can take up to two or three weeks, and in some
cases much longer. As a result of these extended settlement periods, a Fund may
incur losses if it is required to sell other investments or temporarily borrow
to meet its cash needs, including satisfying redemption requests.
The
amount of public information available with respect to loans may be less
extensive than that available for registered or exchange listed securities.
Furthermore, because a Fund’s sub-adviser may wish to invest in the
publicly-traded securities of an obligor, the Fund may not have access to
material non-public information regarding the obligor to which other investors
have access. Loans may not be considered “securities” under the federal
securities laws and, as a result, a Fund may not be entitled to rely on the
anti-fraud or other protections afforded by such laws.
Interests
in secured loans have the benefit of collateral and, typically, of restrictive
covenants limiting the ability of the borrower to further encumber its assets.
However, in periods of high demand by lenders for loan investments, borrowers
may limit these restrictive covenants and weaken the ability of lenders like a
Fund from accessing the collateral securing the loan. Additionally, loans with
fewer restrictive covenants may provide the borrower with more flexibility to
take actions that may be detrimental to the lender or limit the lender’s ability
to declare a default, which may hinder a Fund’s ability to reprice credit risk
associated with the borrower and mitigate potential loss. A Fund may experience
relatively greater realized or unrealized losses or delays and expenses in
enforcing its rights with respect to loans with fewer restrictive covenants.
There is also a risk that the value of any collateral securing a loan in which a
Fund has an interest may decline and that the collateral may not be sufficient
to cover the amount owed on the loan. In the event the borrower defaults, a
Fund’s access to the collateral may be limited or delayed because of difficulty
liquidating the collateral or by bankruptcy or other insolvency laws. The risks
associated with unsecured loans, which are not backed by a security interest in
any specific collateral, are higher than those for comparable loans that are
secured by specific collateral. Interests in loans made to finance highly
leveraged companies or transactions such as corporate acquisitions may be
especially vulnerable to adverse changes in economic or market conditions.
Additionally, because junior loans have a lower place in an issuer’s capital
structure and may be unsecured, junior loans involve a higher degree of overall
risk than senior loans of the issuer.
With
respect to loan participations, a Fund may not always have direct recourse
against a borrower if the borrower fails to pay scheduled principal and/or
interest; may be subject to greater delays, expenses and risks than if the Fund
had purchased a direct obligation of the borrower; and may be regarded as the
creditor of the agent lender (rather than the borrower), subjecting the Fund to
the creditworthiness of that lender as well and the ability of the lender to
enforce appropriate credit remedies against the borrower.
Certain
instruments in which a Fund may invest are subject to rates that are or
previously were tied to LIBOR. LIBOR was a leading floating rate benchmark used
in
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loans,
notes, derivatives and other instruments or investments. As a result of
benchmark reforms, publication of most LIBOR settings has ceased. Some LIBOR
settings continue to be published, but only on a temporary, synthetic and
non-representative basis. Regulated entities have generally ceased entering into
new LIBOR contracts in connection with regulatory guidance or prohibitions.
Replacement rates that have been identified include the Secured Overnight
Financing Rate (“SOFR”),
which is intended to replace U.S. dollar LIBOR and measures the cost of
overnight borrowings through repurchase agreement transactions collateralized
with U.S. Treasury securities, and the Sterling Overnight Index Average Rate
(“SONIA”),
which is intended to replace GBP LIBOR and measures the overnight interest rate
paid by banks for unsecured transactions in the sterling market, although other
replacement rates could be adopted by market participants. Although the
transition process away from LIBOR has become increasingly well-defined in
advance of the anticipated discontinuation date, there remains uncertainty
regarding the future utilization of LIBOR and the nature of any replacement
rate. Any potential effects of the transition away from LIBOR on a Fund or on
certain instruments in which a Fund invests can be difficult to ascertain, and
they may vary depending on factors that include, but are not limited to:
(i) existing fallback or termination provisions in individual contracts and
(ii) whether, how, and when industry participants develop and adopt new
reference rates and fallbacks for both legacy and new products and instruments.
A Fund may continue to invest in instruments that reference LIBOR or otherwise
use LIBOR reference rates due to favorable liquidity or pricing; however, new
LIBOR assets may no longer be available. In addition, interest rate provisions
included in such contracts may need to be renegotiated in contemplation of the
transition away from LIBOR. The transition may also result in a reduction in the
value of certain instruments held by a Fund or a reduction in the effectiveness
of related Fund transactions such as hedges. In addition, an instrument’s
transition to a replacement rate could result in variations in the reported
yields of a Fund that holds such instrument. At this time, it is not possible to
predict the effect of the establishment of SOFR, SONIA or any other replacement
rates.
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
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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, 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.
Market
liquidity risk:
Primary dealer inventories of bonds and preferred securities are a core
indication of dealers’ capacity to “make a market” in those securities. A
reduction in market making capacity has the potential to decrease liquidity and
increase price volatility in the markets in which a Fund invests, particularly
during periods of economic or market stress. As a result of this decreased
liquidity, a Fund may have to accept a lower price to sell a security, sell
other securities to raise cash, or give up an investment opportunity, any of
which could have a negative effect on performance. If a Fund needed to sell
large blocks of securities to meet shareholder redemption requests or to raise
cash, those sales could further reduce the securities’ prices and hurt
performance.
MLP
risk:
As a principal investment strategy, Nuveen Flexible Income Fund may invest in
MLPs. An investment in units of an MLP involves certain risks which differ from
an investment in the securities of a corporation. Investors in an MLP normally
would not be liable for the debts of the MLP beyond the amount that the investor
has contributed but investors may not be shielded to the same extent that a
shareholder of a corporation would be. Holders of MLP common units have the
rights typically afforded to limited partners in limited partnerships.
Accordingly, holders of common units will have limited control and limited
voting rights on matters affecting the partnership. Holders of common units may
also be subject to potential conflicts of interest with the MLP’s general
partner, including those arising from incentive distribution
payments.
Investments
held by MLPs may be relatively illiquid, limiting the MLPs’ ability to vary
their portfolios promptly in response to changes in economic or other
conditions, and MLPs may have limited financial resources. Common units of MLPs
may trade infrequently and in limited volume, and they may be subject to more
abrupt or erratic price movements than common shares of larger or more
broadly-based companies. The Fund’s investment in MLPs also subjects it to the
risks associated with the specific industry or industries in which the MLPs
invest. MLPs are generally considered interest-rate sensitive investments, and
during periods of interest rate volatility, may not provide attractive
returns.
In
addition, there are certain tax risks associated with investments in MLPs. The
benefit derived from an investment in an MLP is largely dependent on the MLP
being treated as a partnership for federal income tax purposes. A change to
current tax law, or a change in the underlying business mix of a given MLP,
could result in an MLP being treated as a corporation for federal income tax
purposes. If an MLP were treated as a corporation, the MLP would be required to
pay federal income tax on its taxable income. This would reduce the amount of
cash available for distribution by the MLP, which could result in a
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reduction
of the value of the Fund’s investment in the MLP and lower income to the Fund.
Additionally, since MLPs generally conduct business in multiple states, the Fund
may be subject to income or franchise tax in each of the states in which the
partnership does business. The additional cost of preparing and filing the tax
returns and paying the related taxes may adversely impact the Fund’s return on
its investment in MLPs.
Money
market fund risk:
As a principal investment strategy, Nuveen Floating Rate Income Fund may invest
in money market funds. An investment in a money market fund is not a bank
deposit and is not insured or guaranteed by any bank, the FDIC or any other
government agency. An investment in a money market fund, even an investment in a
fund seeking to maintain a stable net asset value per share, is not guaranteed
and it is possible for a Fund to lose money by investing in money market funds.
If the liquidity of a money market fund’s portfolio deteriorates below certain
levels, the money market fund may suspend redemptions (i.e., impose a redemption
gate) and thereby prevent a Fund from selling its investment in the money market
fund or impose a fee of up to 2% on amounts the Fund redeems from the money
market fund (i.e.,
impose a liquidity fee). These measures may result in an investment loss or
prohibit a Fund from redeeming shares. In addition to the fees and expenses that
a Fund directly bears, the Fund indirectly bears the fees and expenses of any
money market funds in which it invests. By investing in a money market fund, a
Fund will be exposed to the investment risks of the money market fund in direct
proportion to such investment. Money market funds and the securities they invest
in are subject to comprehensive regulations. The enactment of new legislation or
regulations, as well as changes in interpretation and enforcement of current
laws, may affect the manner of operation, performance and/or yield of money
market funds.
Mortgage-
and asset-backed securities risk: As
a principal investment strategy, Nuveen Credit Income Fund, Nuveen Flexible
Income Fund and Nuveen Strategic Income Fund may invest in mortgage- and/or
asset-backed securities. The value of mortgage- and asset-backed securities can
fall if the owners of the underlying mortgages or other obligations pay off
their mortgages or other obligations sooner than expected, which could happen
when interest rates fall or for other reasons.
Mortgage-
and asset-backed securities are also subject to extension risk, which is the
risk that rising interest rates could cause mortgages or other obligations
underlying the securities to be prepaid more slowly than expected, which would,
in effect, convert a short- or medium-duration mortgage- or asset-backed
security into a longer-duration security, increasing its sensitivity to interest
rate changes and causing its price to decline.
A
mortgage-backed security may be negatively affected by the quality of the
mortgages underlying such security and the structure of its issuer. For example,
if a mortgage underlying a certain mortgage-backed security defaults, the value
of that security may decrease.
A
Fund may invest in mortgage-backed securities that are not explicitly backed by
the full faith and credit of the U.S. government, and there can be no assurance
that the U.S. government would provide financial support in situations in which
it was not obligated to do so. Mortgage-backed securities issued by a private
issuer, such as commercial mortgage-backed securities, generally entail greater
risk than obligations directly or indirectly guaranteed by the U.S. government
or a government-sponsored entity. There may be a limited market for such
securities, especially when there is a perceived weakness in the mortgage and
real estate market sectors. Without an active trading market, non-agency
mortgage-backed securities held by a Fund may be particularly
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difficult
to value because of the complexities involved in assessing the value of the
underlying loans.
Municipal
securities risk:
As a principal investment strategy, Nuveen Flexible Income Fund, Nuveen
Preferred Securities and Income Fund and Nuveen Strategic Income Fund may invest
in municipal securities. 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 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.
Other
investment companies risk:
When a Fund invests in other investment companies, such as ETFs, shareholders
bear both their proportionate share of Fund expenses and, indirectly, the
expenses of the other investment companies. Furthermore, a Fund is exposed to
the risks to which the other investment companies may be subject.
Preferred
security risk:
As a principal investment strategy, Nuveen Credit Income Fund, Nuveen Flexible
Income Fund, Nuveen Preferred Securities and Income Fund and Nuveen Strategic
Income Fund invest in preferred securities. There are special risks associated
with investing in preferred securities:
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Limited
voting rights.
Generally, preferred security holders have no voting rights with respect to the
issuing company unless preferred dividends have been in arrears for a specified
number of periods, at which time the preferred security holders may elect a
number of directors to the issuer’s board. Generally, once all the arrearages
have been paid, the preferred security holders no longer have voting
rights.
In
the case of certain preferred securities issued by trusts or special purpose
entities, holders generally have no voting rights except if a declaration of
default occurs and is continuing. In such an event, preferred security holders
generally would have the right to appoint and authorize a trustee to enforce the
trust’s or special purpose entity’s rights as a creditor under the agreement
with its operating company.
Special
redemption rights.
In certain circumstances, an issuer of preferred securities may redeem the
securities prior to their stated maturity date. For instance, for certain types
of preferred securities, a redemption may be triggered by a change in federal
income tax or securities laws or by regulatory or major corporate action. As
with call provisions, a redemption by the issuer may negatively impact the
return of the security held by a Fund.
Payment
deferral.
Generally, preferred securities may be subject to provisions that allow an
issuer, under certain conditions, to skip (“non-cumulative” preferred
securities) or defer (“cumulative” preferred securities) distributions without
any adverse consequences to the issuer. Non-cumulative preferred securities can
skip distributions indefinitely. Cumulative preferred securities typically
contain provisions that allow an issuer, at its discretion, to defer
distributions payments for up to 10 years. If a Fund owns a preferred security
that is deferring its distribution, the Fund may be required to report income
for tax purposes although it has not yet received such income. In addition,
recent changes in bank regulations may increase the likelihood of issuers
deferring or skipping distributions.
Subordination.
Preferred
securities generally are subordinated to bonds and other debt instruments in a
company’s capital structure and therefore are subject to greater credit risk
than those debt instruments.
Floating
Rate Payments. The
dividend or interest rates on preferred securities may be floating, or convert
from fixed to floating at a specified future time. The market value of floating
rate securities may fall in a declining interest rate environment and may also
fall in a rising interest rate environment if there is a lag between the rise in
interest rates and the reset. This risk may also be present with respect to
fixed rate securities that will convert to a floating rate at a future time. A
secondary risk associated with declining interest rates is the risk that income
earned by a Fund on floating rate securities may decline due to lower coupon
payments on the floating-rate securities. Finally, many financial instruments
use or may use a floating rate based upon LIBOR, which was phased out. Any
potential effects of the transition away from LIBOR on a Fund or on certain
instruments in which a Fund invests can be difficult to ascertain. In addition,
an instrument’s transition to a replacement rate could result in variations in
the reported yields of a Fund that holds such instrument. At this time, it is
not possible to predict the effect of the establishment of replacement rates or
any other reforms to LIBOR. Any such effects of the transition away from LIBOR,
as well as other unforeseen effects, could result in losses to a
Fund.
Fixed
Rate Payments.
The market value of preferred securities with fixed dividends or interest rates
may decline in a rising interest rate environment.
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Liquidity.
Preferred
securities may be substantially less liquid than many other securities, such as
U.S. government securities or common stock. Less liquid securities involve the
risk that the securities will not be able to be sold at the time desired by a
Fund or at prices approximating the values at which the Fund is carrying the
securities on its books.
Financial
services industry. The
preferred securities market is comprised predominately of securities issued by
companies in the financial services industry. Therefore, preferred securities
present substantially increased risks at times of financial turmoil, which could
affect financial services companies more than companies in other sectors and
industries.
Tax
risk.
A Fund may invest in preferred securities or other securities the federal income
tax treatment of which may not be clear or may be subject to recharacterization
by the Internal Revenue Service. It could be more difficult for a Fund to comply
with the tax requirements applicable to regulated investment companies if the
tax characterization of the Fund’s investments or the tax treatment of the
income from such investments were successfully challenged by the Internal
Revenue Service.
Regulatory
risk. Issuers
of preferred securities may be in industries that are heavily regulated and that
may receive government funding. The value of preferred securities issued by
these companies may be affected by changes in government policy, such as
increased regulation, ownership restrictions, deregulation or reduced government
funding.
Restricted
securities risk:
The market for restricted securities, including Rule 144A securities, typically
is less active than the market for publicly traded securities. Rule 144A
securities and other securities exempt from registration under the Securities
Act carry the risk that their liquidity may become impaired and a Fund may be
unable to dispose of the securities promptly or at current market value. In the
U.S., restricted securities are typically sold only to qualified institutional
buyers. An insufficient number of buyers interested in purchasing restricted
securities at a particular time could adversely affect the marketability of such
investments and a Fund might be unable to dispose of them promptly or at a
reasonable price. In many cases, privately placed securities may not be freely
transferable under the laws of the applicable jurisdiction or due to contractual
restrictions on resale. As a result of the absence of a public trading market,
privately placed securities may be deemed to be illiquid investments or less
liquid investments and may be more difficult to value than publicly traded
securities. To the extent that privately placed securities may be resold in
privately negotiated transactions, the prices realized from the sales, due to
lack of liquidity, could be less than those originally paid by a Fund or less
than their fair market value. In addition, issuers whose securities are not
registered and publicly traded may not be subject to the disclosure and other
investor protection requirements that may be applicable if their securities were
publicly traded. In making investments in such securities, a Fund may obtain
access to material nonpublic information, which may restrict the Fund’s ability
to conduct portfolio transactions in such securities.
Short
sales risk:
Nuveen Flexible Income Fund may take short positions in equity securities, which
are often referred to as "short sales." Short sales involve the sale of a
security the Fund has borrowed, with the expectation that the security will
underperform the market. Short sales expose the Fund to the risk that it will be
required to buy the security sold short (also known as “covering” the short
position) at a time when the security has appreciated in value, thus resulting
in a loss to the Fund. For instance, the lender of the borrowed security may
recall the security, in which case the Fund would
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have
to either borrow the security from another lender or buy the security and
deliver it to the lender. The Fund may not always be able to locate another
lender, and thus the Fund may be required to cover the short position at a
disadvantageous price. In certain cases, purchasing a security to cover a short
position can itself cause the price of the security to rise further, thereby
exacerbating the loss. Although the gain is limited by the price at which the
security was sold short, the potential loss on a short sale is theoretically
unlimited because there is no upper limit on the price a borrowed security can
attain. By contrast, a loss on a long position arises from decreases in the
value of the security and is limited by the fact that a security’s value cannot
go below zero. In a rising stock market, the Fund’s short positions may
significantly impact the Fund’s overall performance and cause the Fund to
underperform traditional long-only equity funds or to sustain losses,
particularly in a sharply rising market. Short positions are more volatile than
long positions due to risks inherent to short selling, including incorrect
determinations of equity security valuations and/or the directional movement of
stock market averages. The Fund may also pay transaction costs and borrowing
fees in connection with short sales and, until the borrowed security is
replaced, the Fund is required to pay to the lender amounts equal to any
dividends paid during the period of the loan. When the Fund is selling a
security short, it must maintain a segregated account of cash or high-grade
securities equal to the margin requirement. As a result, the Fund may maintain
high levels of cash or other liquid assets, which may limit the Fund’s ability
to pursue other opportunities. In addition, short positions typically involve
increased liquidity risk and the risk that the third party to the short sale may
fail to honor its contract terms. To the extent the Fund invests the proceeds
received from selling securities short in additional long positions, the Fund is
engaging in a form of leverage. The use of leverage may increase the Fund’s
exposure to long positions and make any change in the Fund’s net asset value
greater than it would be without the use of leverage. This could result in
increased volatility of returns.
In
the past, in response to market events, regulatory authorities in various
countries, including the United States, enacted temporary rules prohibiting the
short-selling of certain stocks. If regulatory authorities were to reinstitute
such rules or otherwise restrict short-selling, the Fund might not be able to
fully implement its short-selling strategy.
Sovereign
debt risk:
As a principal investment strategy, Nuveen Credit Income Fund and Nuveen
Strategic Income Fund may invest in sovereign debt instruments. Sovereign debt
instruments are subject to the risk that a governmental entity may delay or
refuse to pay interest or repay principal on its sovereign debt. This may be due
to, for example, cash flow problems, insufficient foreign currency reserves,
political considerations, the relative size of the governmental entity’s debt
position in relation to the economy or the failure to put in place economic
reforms required by the International Monetary Fund or other multilateral
agencies. If a governmental entity defaults, it may ask for more time in which
to pay or for further loans. Additionally, the defaulting governmental entity
may restructure their debt payments, possibly without the approval of some or
all debt holders. In addition, the issuer of sovereign debt may be unable or
unwilling to repay due to the imposition of international sanctions and other
similar measures. As a result, there is an increased budgetary and financial
pressure on municipalities and heightened risk of default or other adverse
credit or similar events for issuers of municipal securities, which would
adversely impact a Fund’s investments. There may be limited recourse against a
defaulting governmental entity as there is no legal process for collecting
sovereign debt that a government does not pay nor are there bankruptcy
proceedings through which all or part of the sovereign debt that a governmental
entity has not repaid may be collected.
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Unrated
security risk:
Unrated securities determined by the Funds’ sub-adviser to be of comparable
quality to rated securities which a Fund may purchase may pay a higher interest
rate than such rated securities and be subject to a greater risk of illiquidity
or price changes. Less public information is typically available about unrated
securities or issuers than rated securities or issuers.
U.S.
government securities risk:
U.S. government securities are guaranteed only as to the timely payment of
interest and the payment of principal when held to maturity. Accordingly, the
current market values for these securities will fluctuate with changes in
interest rates. Securities issued or guaranteed by U.S. government agencies and
instrumentalities are supported by varying degrees of credit but generally are
not backed by the full faith and credit of the U.S. government or may be subject
to certain limitations. No assurance can be given that the U.S. government will
provide financial support to its agencies and instrumentalities if it is not
obligated by law to do so. Therefore, securities issued by U.S. government
agencies or instrumentalities that are not backed by the full faith and credit
of the U.S. government may involve increased risk of loss of principal and
interest. In addition, the value of U.S. government securities may be affected
by changes in the credit rating of the U.S. government.
Valuation
risk:
The sales price a Fund could receive for any particular security 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 debt securities 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 debt securities 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.
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 ordinarily
would, reducing the Fund’s market exposure. Increased redemption activity may
also result in unexpected taxable distributions to shareholders if such sales of
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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.
An
affiliate of Nuveen Fund Advisors offers other open-end investment companies
structured as “funds of funds” that may invest their assets in shares of the
Funds and other investment companies and pooled investment vehicles
(“Funds-of-Funds”).
At certain times, the Funds-of-Funds may be significant shareholders of a Fund
and investment decisions made with respect to the Funds-of-Funds could, under
certain circumstances, negatively impact a Fund, with respect to its expenses,
investment performance and liquidity profile. For instance, large purchases or
redemptions of shares of a Fund by the Funds-of-Funds, whether as part of a
reallocation or rebalancing strategy or otherwise, may result in the Fund having
to sell securities or invest cash when it otherwise would not do so. Such
transactions could increase the Fund’s transaction costs, accelerate the
realization of taxable income, and, in extreme cases, could threaten the
continued viability of the Fund to operate as intended.
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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 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.
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 0.25%
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
Credit Income Fund
Nuveen
Flexible Income Fund
Nuveen
High Yield Income Fund
Nuveen
Preferred Securities and Income 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 |
4.75 |
% |
|
4.99 |
% |
|
4.25 |
% |
$50,000
but less than $100,000 |
4.50 |
|
|
4.71 |
|
|
4.00 |
|
$100,000
but less than $250,000 |
3.50 |
|
|
3.63 |
|
|
3.00 |
|
$250,000
but less than $500,000 |
2.50 |
|
|
2.56 |
|
|
2.25 |
|
$500,000
but less than $1,000,000 |
2.00 |
|
|
2.04 |
|
|
1.75 |
|
$1,000,000
and over* |
— |
|
|
— |
|
|
1.00 |
|
|
|
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Section
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* You
can purchase $1 million 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
Floating Rate Income 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
but less than $500,000 |
1.50 |
|
|
1.52 |
|
|
1.25 |
|
$500,000
and over* |
— |
|
|
— |
|
|
1.00 |
|
* You
can purchase $500,000 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.
Nuveen
Strategic Income 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 |
4.25 |
% |
|
4.44 |
% |
|
3.75 |
% |
$50,000
but less than $100,000 |
4.00 |
|
|
4.17 |
|
|
3.50 |
|
$100,000
but less than $250,000 |
3.50 |
|
|
3.63 |
|
|
3.00 |
|
$250,000
but less than $500,000 |
2.50 |
|
|
2.56 |
|
|
2.25 |
|
$500,000
but less than $1,000,000 |
2.00 |
|
|
2.04 |
|
|
1.75 |
|
$1,000,000
and over* |
— |
|
|
— |
|
|
1.00 |
|
* You
can purchase $1 million 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.
Investors
may purchase Class A shares only for Fund accounts held with a financial advisor
or other financial intermediary, and not directly with a Fund. In addition,
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 as well as 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
|
|
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83 |
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
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 $1,000,000 ($500,000 for Nuveen
Floating Rate Income Fund) 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. In addition,
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 to certain qualified retirement plans and other
investors. There is no minimum initial investment for qualified retirement
plans, health savings accounts and 529 savings plans; however, the shares must
be held through plan-level or omnibus accounts held on the books of a Fund.
Class R6 shares are also 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 waived for clients of
financial intermediaries that have accounts holding Class R6 shares with an
aggregate value of at least $100,000. The Distributor may also 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
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|
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3
How You Can Buy and Sell Shares |
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 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:
· Qualified
retirement plans held in plan-level or omnibus accounts;
· Foundations
and endowment funds;
· Any
state, county, or city, or its instrumentality, department, authority or
agency;
· 457
plans, including 457(b) governmental entity plans and tax exempt
plans;
· 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;
· 529
savings plans held in plan-level or omnibus accounts;
· Health
savings accounts held in plan-level or omnibus accounts; and
· Discretionary
accounts managed by Nuveen Fund Advisors or its affiliates.
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.
Class
R6 shares are not available directly to traditional or Roth IRAs, Coverdell
Savings Accounts, Keoghs, SEPs, SARSEPs, or SIMPLE IRAs.
Nuveen
Credit Income Fund does not issue 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
|
|
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3
How You Can Buy and Sell Shares |
85 |
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.
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
employer-sponsored retirement plans.
· 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
|
|
86 |
Section
3
How You Can Buy and Sell Shares |
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, 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 $1,000,000 or more ($500,000 or more in the case of Nuveen Floating Rate
Income Fund) (although such purchases may be subject to a CDSC in certain
circumstances, see “What Share Classes We Offer—Contingent Deferred Sales
Charges” above).
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|
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3
How You Can Buy and Sell Shares |
87 |
· 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.
· Certain
employer-sponsored retirement plans.
Purchases by employer-sponsored retirement plans (“ESRPs”)
as defined below, except that, in the case of ESRPs held through a brokerage
account, Class A shares will be available at net asset value without a sales
charge only if the broker-dealer has entered into an agreement with the
Distributor that allows for such purchases. 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.”
For
this purpose, ESRPs include, but are not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, profit sharing and money purchase pension
plans, health savings accounts, defined benefit plans, non-qualified deferred
compensation plans, Roth 401(k) plans and Roth 403(b) plans, and do not include
SEPs, SAR-SEPs, SIMPLE IRAs (other than SIMPLE IRAs opened before January 1,
2011 where the Distributor is the broker of record), SIMPLE 401(k) plans, Solo
401(k) plans, KEOGH plans, non-qualified deferred compensation plans and single
defined benefit plans.
· 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
|
|
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Section
3
How You Can Buy and Sell Shares |
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 exceeded $1,000,000 ($500,000 for Nuveen Floating Rate Income Fund), 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.
· For
certain redemptions of shares held by an employer-sponsored qualified defined
contribution plan.
· For
certain redemptions of shares held in an IRA account, including redemptions to
satisfy required minimum distributions from the account due to the shareholder
reaching the qualified age based on applicable laws and
regulations.
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”)
is open for business. Generally, the NYSE is 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 A and 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,
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3
How You Can Buy and Sell Shares |
89 |
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 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,
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|
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Section
3
How You Can Buy and Sell Shares |
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.
· 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 $10,000, 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.
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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.
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 is
open for business. 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.
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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;
· 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;
· Your
redemption request is in excess of $50,000; or
· You
are requesting a change in ownership on your account.
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. Redemptions where the proceeds are payable by check may not
exceed $50,000. 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
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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. Redemptions where the proceeds are payable by check may not
exceed $50,000. 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
A
Fund reserves the right to liquidate or assess a low balance fee on any account
(other than accounts holding Class R6 shares) held directly with the Fund that
has a balance that has fallen below the account balance minimum of $1,000 for
any reason, including market fluctuations.
If
a Fund elects to exercise the right to assess a low balance fee, then annually
the Fund will assess a $15 low balance account fee on certain accounts with
balances under the account balance minimum that are IRAs, Coverdell Education
Savings Accounts or accounts established pursuant to the UTMA or UGMA. At the
same time, other accounts with balances under the account balance minimum will
be liquidated, with proceeds being mailed to the address of record. Prior to the
assessment of any low balance fee or liquidation of low balance accounts,
affected shareholders will receive a communication notifying them of the pending
action, thereby providing time for shareholders to bring their accounts up to
the account balance minimum prior to any fee assessment or account liquidation.
You will not be assessed a CDSC if your account is liquidated.
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
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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. 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 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 the Funds’ net income over time. The Funds
declare and pay any taxable capital gains 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.
Non-U.S.
Income Tax Considerations
Investment
income that a Fund receives from its non-U.S. investments may be subject to
non-U.S. income taxes, which generally will reduce Fund distributions. However,
the United States has entered into tax treaties with many non-U.S. countries
that may entitle you to certain tax benefits.
If
a Fund has more than 50% of the value of its assets in stock or other securities
of non-U.S. corporations at the close of a taxable year, the Fund may, for such
taxable year, elect to pass its non-U.S. tax credits through to
shareholders.
Taxes
and Tax Reporting
The
Funds will make distributions that may be taxed as ordinary income (which may be
taxable at different rates, depending on the sources of the distributions) or
capital gains (which may be taxable at different rates, depending on the length
of time a Fund holds its assets). Distributions from a Fund’s long-term capital
gains are generally taxable as capital gains, while distributions from
short-term capital gains and net investment income are generally taxable as
ordinary income. However, certain ordinary income distributions
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received
from a Fund that are determined to be qualified dividend income may be taxed at
tax rates equal to those applicable to long-term capital gains. The tax you pay
on a given capital gain distribution depends generally on how long the Fund has
held the portfolio securities it sold and not on how long you have owned your
Fund shares. Distributions generally do not qualify for a dividends received
deduction if you are a corporate shareholder.
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. The sale of shares in your account may produce a gain or loss, and is a
taxable event. For tax purposes, an exchange of shares between funds is
generally treated the same as a sale.
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 dividend 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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Distribution
and Service Payments |
Distribution
and Service Plan
The
Distributor serves as the selling agent and distributor of the Funds’ shares. In
this capacity, the Distributor manages the offering of the Funds’ shares and is
responsible for all sales and promotional activities. In order to reimburse the
Distributor for its costs in connection with these activities, including
compensation paid to financial intermediaries, each Fund has adopted a
distribution and service plan under Rule 12b-1 under the 1940 Act (the
“Plan”).
See “How You Can Buy and Sell Shares—What Share Classes We Offer” for a
description of the distribution and service fees paid under the
Plan.
Under
the Plan, the Distributor receives a distribution fee for Class C shares
primarily for providing compensation to financial intermediaries, including the
Distributor, in connection with the distribution of shares. The Distributor
receives a service fee for Class A and Class C shares to compensate financial
intermediaries, including the Distributor, for providing ongoing account
services to shareholders. These services may include establishing and
maintaining shareholder accounts, answering shareholder inquiries and providing
other personal services to shareholders. Fees paid under the Plan also
compensate the Distributor for other expenses, including printing and
distributing prospectuses to persons other than shareholders, and preparing,
printing, and distributing advertising materials, sales literature and reports
to shareholders used in connection with the sale of shares. 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. Long-term holders of Class C shares may pay
more in distribution and service fees and CDSCs than the economic equivalent of
the maximum front-end sales charge permitted under the Financial Industry
Regulatory Authority Conduct Rules.
Other
Payments by the Funds
In
addition to the distribution and service fees the Funds pay under the Plan and
fees the Funds pay to their transfer agent, the Distributor or Nuveen Fund
Advisors, on behalf of the Funds, may enter into non-Plan agreements with
financial intermediaries pursuant to which the Funds will pay financial
intermediaries for administrative, networking, recordkeeping, sub-transfer
agency and shareholder services. These non-Plan payments are generally based on
either (1) a percentage of the average daily net assets of Fund shareholders
serviced by a financial intermediary or (2) a fixed dollar amount for each
account serviced by a financial intermediary. The aggregate amount of these
payments may be substantial and may vary significantly among
intermediaries.
Other
Payments by the Distributor and Nuveen Fund Advisors
In
addition to the sales commissions and payments from distribution and service
fees made to financial intermediaries as previously described, the Distributor
and Nuveen Fund Advisors may from time to time make additional payments, out of
their own resources, to certain financial intermediaries that sell shares of
Nuveen Mutual Funds in order to promote the sales and retention of Fund shares
by those firms and their customers. The amounts of these payments vary by
financial intermediary and, with respect to a given firm, are typically
calculated by reference to the amount of the firm’s recent gross sales of Nuveen
Mutual Fund shares and/or total assets of Nuveen Mutual Funds held by the firm’s
customers. The level of payments that the Distributor and/or Nuveen Fund
Advisors is willing to provide to a particular financial intermediary may be
affected by, among other factors, the firm’s total assets held in and recent net
investments into Nuveen Mutual Funds, the firm’s level of participation in
Nuveen Mutual
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Fund
sales and marketing programs, the firm’s compensation program for its registered
representatives who sell Nuveen Mutual Fund shares and provide services to
Nuveen Mutual Fund shareholders, and the asset class of the Nuveen Mutual Funds
for which these payments are provided. The statement of additional information
contains additional information about these payments, including the names of the
firms to which payments are made. The Distributor may also make payments to
financial intermediaries in connection with sales meetings, due diligence
meetings, prospecting seminars and other meetings at which the Distributor
promotes its products and services.
In
connection with the availability of Nuveen Mutual Funds within selected mutual
fund no-transaction fee institutional platforms and fee-based wrap programs at
certain financial intermediaries, the Distributor and Nuveen Fund Advisors also
make payments out of their own assets to those firms as compensation for certain
recordkeeping, shareholder communications and other account administration
services provided to Nuveen Mutual Fund shareholders who own their Fund shares
through these platforms or programs. These payments are in addition to the
service fee and any applicable sub-transfer agency or similar fees paid to these
firms with respect to these services by the Nuveen Mutual Funds out of Fund
assets.
The
amounts of payments to a financial intermediary could be significant, and may
create an incentive for the intermediary or its representatives to recommend or
offer shares of the Funds to you. The intermediary may elevate the prominence or
profile of the Funds within the intermediary’s organization by, for example,
placing the Funds on a list of preferred or recommended funds and/or granting
the Distributor and/or its affiliates preferential or enhanced opportunities to
promote the Funds in various ways within the intermediary’s organization.
There
is some uncertainty concerning whether the types of payments described above may
be made to or received by a financial intermediary with respect to Class I
shares offered through the intermediary’s brokerage platform where the
intermediary imposes commissions on purchases and redemptions of such shares.
Such payments may be terminated in light of future regulatory
developments.
The
price you pay for your shares or the amount you receive upon redemption of your
shares is based on your Fund’s net asset value per share, which is determined as
of the close of trading (normally 4:00 p.m. New York time) on each day the NYSE
is open for business. Each Fund’s latest net asset value per share is available
on the Funds’ website at www.nuveen.com. Net asset value is calculated for each
class of each Fund by taking the value of the class’s total assets, including
interest or dividends accrued but not yet collected, less all liabilities, and
dividing by the total number of shares outstanding. The result, rounded to the
nearest cent, is the net asset value per share.
In
determining net asset value, portfolio instruments traded on an exchange
generally are valued at the last reported sales price or official closing price
on the exchange, if available. If such market quotations are not readily
available or are not considered reliable, a portfolio instrument will be valued
at its fair value as determined in good faith using procedures approved by
Nuveen Fund Advisors, subject to the oversight of the Board of
Directors/Trustees. For example, the fair value of a portfolio instrument may be
determined using prices provided by independent pricing services or obtained
from other sources, such as broker-dealer quotations. Independent pricing
services typically value non-exchange-traded instruments utilizing a range of
market-based inputs and assumptions. For example, when available, pricing
services may utilize inputs such as
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benchmark
yields, reported trades, broker-dealer quotes, spreads, and transactions for
comparable instruments. In pricing certain instruments, the pricing services may
consider information about an instrument’s issuer or market activity provided by
the Funds’ investment adviser or sub-adviser. Pricing service valuations of
non-exchange-traded instruments represent the service’s good faith opinion as to
what the holder of an instrument would receive in an orderly transaction for an
institutional round lot position under current market conditions. It is possible
that these valuations could be materially different from the value that a Fund
realizes upon the sale of an instrument. Non-U.S. securities and currency are
valued in U.S. dollars based on non-U.S. currency exchange rate quotations
supplied by an independent quotation service.
For
non-U.S. traded securities whose principal local markets close before the close
of the NYSE, a Fund may adjust the local closing price based upon such factors
as developments in non-U.S. markets, the performance of U.S. securities markets
and the performance of instruments trading in U.S. markets that represent
non-U.S. securities. A Fund may rely on an independent fair valuation service in
making any such fair value determinations. If a Fund holds portfolio instruments
that are primarily listed on non-U.S. exchanges, the value of such instruments
may change on days when shareholders will not be able to purchase or redeem the
Fund’s shares.
The
price of a portfolio instrument may be determined unreliable in various
circumstances. For example, a price may be deemed unreliable if it has not
changed for an identified period of time, or has changed from the previous day’s
price by more than a threshold amount, and recent transactions and/or broker
dealer price quotations differ materially from the price in question.
The
Board of Directors/Trustees has designated Nuveen Fund Advisors as the Funds’
valuation designee pursuant to Rule 2a-5 under the 1940 Act and delegated to
Nuveen Fund Advisors the day-to-day responsibility of making fair value
determinations. All fair value determinations are made in accordance with
procedures adopted by Nuveen Fund Advisors, subject to the oversight of the
Board of Directors/Trustees. As a general principle, the fair value of a
portfolio instrument is the amount that an owner might reasonably expect to
receive upon the instrument’s current sale. A range of factors and analysis may
be considered when determining fair value, including relevant market data,
interest rates, credit considerations and/or issuer specific news. However, fair
valuation involves subjective judgments and it is possible that the fair value
determined for a portfolio instrument may be materially different from the value
that could be realized upon the sale of that instrument.
The
Funds are intended for long-term investment and should not be used for excessive
trading. Excessive trading in the Funds’ shares can disrupt portfolio
management, lead to higher operating costs, and cause other operating
inefficiencies for the Funds. However, the Funds are also mindful that
shareholders may have valid reasons for periodically purchasing and redeeming
Fund shares.
Accordingly,
the Funds have adopted a Frequent Trading Policy that seeks to balance the
Funds’ need to prevent excessive trading in Fund shares while offering investors
the flexibility in managing their financial affairs to make periodic purchases
and redemptions of Fund shares.
The
Funds’ Frequent Trading Policy generally limits an investor to two “round trip”
trades in a 60-day period. A “round trip” is the purchase and subsequent
redemption of Fund
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shares,
including by exchange. Each side of a round trip may be comprised of either a
single transaction or a series of closely-spaced transactions.
The
Funds primarily receive share purchase and redemption orders through third-party
financial intermediaries, some of whom rely on the use of omnibus accounts. An
omnibus account typically includes multiple investors and provides the Funds
only with a net purchase or redemption amount on any given day where multiple
purchases, redemptions and exchanges of shares occur in the account. The
identity of individual purchasers, redeemers and exchangers whose orders are
aggregated in omnibus accounts, and the size of their orders, will generally not
be known by the Funds. Despite the Funds’ efforts to detect and prevent frequent
trading, the Funds may be unable to identify frequent trading because the
netting effect in omnibus accounts often makes it more difficult to identify
frequent traders. The Distributor has entered into agreements with financial
intermediaries that maintain omnibus accounts with the Funds’ transfer agent.
Under the terms of these agreements, the financial intermediaries undertake to
cooperate with the Distributor in monitoring purchase, exchange and redemption
orders by their customers in order to detect and prevent frequent trading in the
Funds through such accounts. Pursuant to these agreements, financial
intermediaries may disclose to a Fund an investor’s taxpayer identification
number and a record of the investor’s transactions at the request of the Fund.
Technical limitations in operational systems at such intermediaries or at the
Distributor may also limit the Funds’ ability to detect and prevent frequent
trading. In addition, the Funds may permit certain financial intermediaries,
including broker-dealer and retirement plan administrators, among others, to
enforce their own internal policies and procedures concerning frequent trading.
Such policies may differ from the Funds’ Frequent Trading Policy and may be
approved for use in instances where the Funds reasonably believe that the
intermediary’s policies and procedures effectively discourage inappropriate
trading activity. Shareholders holding their accounts with such intermediaries
may wish to contact the intermediary for information regarding its frequent
trading policy. Although the Funds do not knowingly permit frequent trading,
they cannot guarantee that they will be able to identify and restrict all
frequent trading activity.
The
Funds reserve the right in their sole discretion to waive unintentional or minor
violations (including transactions below certain dollar thresholds) if they
determine that doing so would not harm the interests of Fund shareholders. In
addition, certain categories of redemptions may be excluded from the application
of the Frequent Trading Policy, as described in more detail in the statement of
additional information. These include, among others, redemptions pursuant to
systematic withdrawal plans, redemptions in connection with the total disability
or death of the investor, involuntary redemptions by operation of law,
redemptions in payment of account or plan fees, and certain redemptions by
retirement plans, including redemptions in connection with qualifying loans or
hardship withdrawals, termination of plan participation, return of excess
contributions, and required minimum distributions. The Funds may also modify or
suspend the Frequent Trading Policy without notice during periods of market
stress or other unusual circumstances.
The
Funds reserve the right to impose restrictions on purchases or exchanges that
are more restrictive than those stated above if they determine, in their sole
discretion, that a transaction or a series of transactions involves market
timing or excessive trading that may be detrimental to Fund shareholders. The
Funds also reserve the right to reject any purchase order, including exchange
purchases, for any reason. For example, a Fund may refuse purchase orders if the
Fund would be unable to invest the proceeds from the purchase order in
accordance with the Fund’s investment policies and/or objective, or if
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the
Fund would be adversely affected by the size of the transaction, the frequency
of trading in the account or various other factors. For more information about
the Funds’ Frequent Trading Policy and its enforcement, see “Purchase and
Redemption of Fund Shares—Frequent Trading Policy” in the statement of
additional information.
The
custodian of the assets of the Funds is State Street Bank and Trust Company,
One Congress Street, Suite 1, Boston, Massachusetts 02114-2016. The
custodian also provides certain accounting services to the Funds. The Funds'
transfer, shareholder services and dividend paying agent, SS&C Global
Investor & Distribution Solutions, Inc., P.O. Box 219140, Kansas
City, Missouri 64121-9140, performs bookkeeping, data processing and
administrative services for the maintenance of shareholder accounts.
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Section
5 Financial
Highlights
The
financial highlights table is intended to help you understand a Fund’s financial
performance for the periods presented herein. Certain information reflects
financial results for a single Fund share. The total returns in the table
represent the rate that an investor would have earned (or lost) on an investment
in a Fund (assuming reinvestment of all dividends and distributions). The
information has been derived from the Funds' financial statements, which have
been audited by KPMG LLP, whose report for the most recent fiscal year, along
with the Funds’ financial statements, are included in the annual report, which
is available upon request. The financial statements of Nuveen Credit Income Fund
and Nuveen Strategic Income Fund for the fiscal years ended June 30, 2022
and prior were audited by other independent auditors.
Nuveen
Credit Income Fund
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Investment
Operations |
|
Less
Distributions |
|
|
Ratios/Supplemental
Data |
Year Ended August 31: |
Net
Asset Value, Beginning of Period |
Net Investment Income (NII) (Loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total |
|
From NII |
From Net Realized Gains |
Return of Capital |
Total |
Net Asset Value, End of Period |
Total Return(b) |
Net Assets, End of Period (000) |
Ratios of Expenses to Average Net Assets(c) |
Ratios of Net Investment Income (Loss) to
Average Net Assets(c) |
Portfolio Turnover Rate |
Class
A |
2023 |
$ |
6.36 |
|
$ |
0.47 |
|
$ |
(0.05 |
) |
$ |
0.42 |
|
|
$ |
(0.42 |
) |
$ |
— |
|
$ |
— |
|
$ |
(0.42 |
) |
$ |
6.36 |
|
6.87 |
% |
$ |
47,566 |
1.01 |
% |
7.49 |
% |
86 |
% |
2022(d) |
|
6.22 |
|
|
0.06 |
|
|
0.14 |
|
|
0.20 |
|
|
|
(0.05 |
) |
|
— |
|
|
(0.01 |
) |
|
(0.06 |
) |
|
6.36 |
|
3.16 |
|
|
51,908 |
1.03 |
(e) |
5.53 |
(e) |
6 |
|
June
30: |
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|
|
|
2022 |
|
7.42 |
|
|
0.32 |
|
|
(1.20 |
) |
|
(0.88 |
) |
|
|
(0.32 |
) |
|
— |
|
|
— |
|
|
(0.32 |
) |
|
6.22 |
|
(12.23 |
) |
|
51,332 |
1.00 |
|
4.51 |
|
120 |
|
2021 |
|
6.69 |
|
|
0.34 |
|
|
0.71 |
|
|
1.05 |
|
|
|
(0.32 |
) |
|
— |
|
|
— |
|
|
(0.32 |
) |
|
7.42 |
|
16.01 |
|
|
77,953 |
1.00 |
|
4.75 |
|
196 |
|
2020 |
|
7.44 |
|
|
0.38 |
|
|
(0.75 |
) |
|
(0.37 |
) |
|
|
(0.35 |
) |
|
— |
|
|
(0.03 |
) |
|
(0.38 |
) |
|
6.69 |
|
(5.15 |
) |
|
82,545 |
1.00 |
|
5.31 |
|
80 |
|
2019 |
|
7.51 |
|
|
0.46 |
|
|
(0.04 |
) |
|
0.42 |
|
|
|
(0.49 |
) |
|
— |
|
|
— |
|
|
(0.49 |
) |
|
7.44 |
|
5.86 |
|
|
151,673 |
1.00 |
|
6.19 |
|
113 |
|
Class
C |
2023 |
|
6.35 |
|
|
0.42 |
|
|
(0.05 |
) |
|
0.37 |
|
|
|
(0.37 |
) |
|
— |
|
|
— |
|
|
(0.37 |
) |
|
6.35 |
|
6.09 |
|
|
6,265 |
1.76 |
|
6.72 |
|
86 |
|
2022(d) |
|
6.21 |
|
|
0.05 |
|
|
0.14 |
|
|
0.19 |
|
|
|
(0.04 |
) |
|
— |
|
|
(0.01 |
) |
|
(0.05 |
) |
|
6.35 |
|
3.02 |
|
|
8,926 |
1.78 |
(e) |
4.77 |
(e) |
6 |
|
June
30: |
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|
2022 |
|
7.41 |
|
|
0.26 |
|
|
(1.19 |
) |
|
(0.93 |
) |
|
|
(0.27 |
) |
|
— |
|
|
— |
|
|
(0.27 |
) |
|
6.21 |
|
(12.92 |
) |
|
8,887 |
1.75 |
|
3.70 |
|
120 |
|
2021 |
|
6.69 |
|
|
0.29 |
|
|
0.70 |
|
|
0.99 |
|
|
|
(0.27 |
) |
|
— |
|
|
— |
|
|
(0.27 |
) |
|
7.41 |
|
15.03 |
|
|
15,101 |
1.75 |
|
4.02 |
|
196 |
|
2020 |
|
7.43 |
|
|
0.33 |
|
|
(0.74 |
) |
|
(0.41 |
) |
|
|
(0.30 |
) |
|
— |
|
|
(0.03 |
) |
|
(0.33 |
) |
|
6.69 |
|
(5.75 |
) |
|
22,612 |
1.75 |
|
4.58 |
|
80 |
|
2019 |
|
7.50 |
|
|
0.40 |
|
|
(0.04 |
) |
|
0.36 |
|
|
|
(0.43 |
) |
|
— |
|
|
— |
|
|
(0.43 |
) |
|
7.43 |
|
5.04 |
|
|
35,655 |
1.75 |
|
5.46 |
|
113 |
|
Class
I |
2023 |
|
6.37 |
|
|
0.48 |
|
|
(0.04 |
) |
|
0.44 |
|
|
|
(0.44 |
) |
|
— |
|
|
— |
|
|
(0.44 |
) |
|
6.37 |
|
7.16 |
|
|
26,519 |
0.76 |
|
7.61 |
|
86 |
|
2022(d) |
|
6.23 |
|
|
0.06 |
|
|
0.14 |
|
|
0.20 |
|
|
|
(0.05 |
) |
|
— |
|
|
(0.01 |
) |
|
(0.06 |
) |
|
6.37 |
|
3.20 |
|
|
60,706 |
0.78 |
(e) |
5.55 |
(e) |
6 |
|
June
30: |
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|
2022 |
|
7.45 |
|
|
0.34 |
|
|
(1.22 |
) |
|
(0.88 |
) |
|
|
(0.34 |
) |
|
— |
|
|
— |
|
|
(0.34 |
) |
|
6.23 |
|
(12.23 |
) |
|
25,439 |
0.75 |
|
4.63 |
|
120 |
|
2021 |
|
6.71 |
|
|
0.36 |
|
|
0.72 |
|
|
1.08 |
|
|
|
(0.34 |
) |
|
— |
|
|
— |
|
|
(0.34 |
) |
|
7.45 |
|
16.40 |
|
|
94,051 |
0.75 |
|
4.99 |
|
196 |
|
2020 |
|
7.47 |
|
|
0.40 |
|
|
(0.76 |
) |
|
(0.36 |
) |
|
|
(0.37 |
) |
|
— |
|
|
(0.03 |
) |
|
(0.40 |
) |
|
6.71 |
|
(5.03 |
) |
|
80,728 |
0.75 |
|
5.47 |
|
80 |
|
2019 |
|
7.54 |
|
|
0.48 |
|
|
(0.04 |
) |
|
0.44 |
|
|
|
(0.51 |
) |
|
— |
|
|
— |
|
|
(0.51 |
) |
|
7.47 |
|
6.10 |
|
|
101,560 |
0.75 |
|
6.45 |
|
113 |
|
|
|
(a) |
Based
on average shares outstanding. |
(b) |
Percentage
is not annualized. |
|
|
(c) |
After
fee waiver and/or expense reimbursement from Nuveen Fund Advisors, where
applicable. |
|
|
(d) |
For
the two months ended August 31, 2022. Prior to July 1, 2022, the Fund's
fiscal year end was June 30th. |
(e) |
Annualized. |
|
|
Section
5
Financial Highlights |
103 |
Nuveen
Flexible Income Fund
|
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|
|
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|
Investment
Operations |
|
Less
Distributions |
|
|
Ratios/Supplemental
Data |
|
Year Ended August 31: |
Net
Asset Value, Beginning of Period |
Net Investment Income (NII) (Loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total |
|
From NII |
From Net Realized Gains |
Total |
Net Asset Value, End of Period |
Total Return(b) |
Net Assets, End of Period (000) |
Ratios of Expenses to Average Net Assets(c) |
Ratios of Net Investment Income (Loss) to
Average Net Assets(c)(d) |
Portfolio Turnover Rate |
Class
A |
2023 |
$ |
18.93 |
|
$ |
0.81 |
|
$ |
(0.43 |
) |
$ |
0.38 |
|
|
$ |
(1.20 |
) |
$ |
— |
|
$ |
(1.20 |
) |
$ |
18.11 |
|
2.13 |
% |
$ |
190,438 |
0.96 |
% |
4.45 |
% |
26 |
% |
2022(e) |
|
22.27 |
|
|
0.72 |
|
|
(3.16 |
) |
|
(2.44 |
) |
|
|
(0.90 |
) |
|
— |
|
|
(0.90 |
) |
|
18.93 |
|
(11.18 |
) |
|
230,505 |
0.95 |
(f) |
3.78 |
(f) |
31 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
21.36 |
|
|
0.81 |
|
|
1.04 |
|
|
1.85 |
|
|
|
(0.94 |
) |
|
— |
|
|
(0.94 |
) |
|
22.27 |
|
8.71 |
|
|
298,734 |
0.95 |
|
3.66 |
|
30 |
|
2020 |
|
22.06 |
|
|
0.88 |
|
|
(0.39 |
) |
|
0.49 |
|
|
|
(1.19 |
) |
|
— |
|
|
(1.19 |
) |
|
21.36 |
|
2.35 |
|
|
264,865 |
0.96 |
|
4.13 |
|
38 |
|
2019 |
|
21.44 |
|
|
1.02 |
|
|
0.76 |
|
|
1.78 |
|
|
|
(1.16 |
) |
|
— |
|
|
(1.16 |
) |
|
22.06 |
|
8.69 |
|
|
221,484 |
0.96 |
|
4.85 |
|
24 |
|
2018 |
|
22.13 |
|
|
1.01 |
|
|
(0.52 |
) |
|
0.49 |
|
|
|
(1.18 |
) |
|
— |
|
|
(1.18 |
) |
|
21.44 |
|
2.27 |
|
|
176,014 |
0.96 |
|
4.66 |
|
29 |
|
Class
C |
2023 |
|
18.90 |
|
|
0.67 |
|
|
(0.43 |
) |
|
0.24 |
|
|
|
(1.06 |
) |
|
— |
|
|
(1.06 |
) |
|
18.08 |
|
1.37 |
|
|
150,633 |
1.71 |
|
3.70 |
|
26 |
|
2022(e) |
|
22.22 |
|
|
0.58 |
|
|
(3.15 |
) |
|
(2.57 |
) |
|
|
(0.75 |
) |
|
— |
|
|
(0.75 |
) |
|
18.90 |
|
(11.81 |
) |
|
208,775 |
1.70 |
(f) |
3.03 |
(f) |
31 |
|
September
30: |
|
|
|
|
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|
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
21.31 |
|
|
0.64 |
|
|
1.04 |
|
|
1.68 |
|
|
|
(0.77 |
) |
|
— |
|
|
(0.77 |
) |
|
22.22 |
|
7.97 |
|
|
276,035 |
1.70 |
|
2.91 |
|
30 |
|
2020 |
|
22.01 |
|
|
0.72 |
|
|
(0.39 |
) |
|
0.33 |
|
|
|
(1.03 |
) |
|
— |
|
|
(1.03 |
) |
|
21.31 |
|
1.59 |
|
|
262,068 |
1.71 |
|
3.38 |
|
38 |
|
2019 |
|
21.40 |
|
|
0.86 |
|
|
0.75 |
|
|
1.61 |
|
|
|
(1.00 |
) |
|
— |
|
|
(1.00 |
) |
|
22.01 |
|
7.85 |
|
|
223,364 |
1.71 |
|
4.10 |
|
24 |
|
2018 |
|
22.08 |
|
|
0.85 |
|
|
(0.52 |
) |
|
0.33 |
|
|
|
(1.01 |
) |
|
— |
|
|
(1.01 |
) |
|
21.40 |
|
1.49 |
|
|
182,049 |
1.71 |
|
3.91 |
|
29 |
|
Class
R6 |
2023 |
|
19.06 |
|
|
0.87 |
|
|
(0.43 |
) |
|
0.44 |
|
|
|
(1.26 |
) |
|
— |
|
|
(1.26 |
) |
|
18.24 |
|
2.48 |
|
|
15,278 |
0.65 |
|
4.75 |
|
26 |
|
2022(e) |
|
22.42 |
|
|
0.79 |
|
|
(3.19 |
) |
|
(2.40 |
) |
|
|
(0.96 |
) |
|
— |
|
|
(0.96 |
) |
|
19.06 |
|
(10.96 |
) |
|
15,113 |
0.64 |
(f) |
4.12 |
(f) |
31 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
21.50 |
|
|
0.89 |
|
|
1.04 |
|
|
1.93 |
|
|
|
(1.01 |
) |
|
— |
|
|
(1.01 |
) |
|
22.42 |
|
9.09 |
|
|
14,881 |
0.64 |
|
3.97 |
|
30 |
|
2020 |
|
22.20 |
|
|
0.96 |
|
|
(0.40 |
) |
|
0.56 |
|
|
|
(1.26 |
) |
|
— |
|
|
(1.26 |
) |
|
21.50 |
|
2.69 |
|
|
6,682 |
0.64 |
|
4.46 |
|
38 |
|
2019 |
|
21.57 |
|
|
1.11 |
|
|
0.74 |
|
|
1.85 |
|
|
|
(1.22 |
) |
|
— |
|
|
(1.22 |
) |
|
22.20 |
|
9.03 |
|
|
649 |
0.64 |
|
5.22 |
|
24 |
|
2018 |
|
22.19 |
|
|
1.13 |
|
|
(0.51 |
) |
|
0.62 |
|
|
|
(1.24 |
) |
|
— |
|
|
(1.24 |
) |
|
21.57 |
|
2.86 |
|
|
272 |
0.64 |
|
5.12 |
|
29 |
|
Class
I |
2023 |
|
18.95 |
|
|
0.86 |
|
|
(0.44 |
) |
|
0.42 |
|
|
|
(1.24 |
) |
|
— |
|
|
(1.24 |
) |
|
18.13 |
|
2.40 |
|
|
833,193 |
0.71 |
|
4.69 |
|
26 |
|
2022(e) |
|
22.29 |
|
|
0.77 |
|
|
(3.16 |
) |
|
(2.39 |
) |
|
|
(0.95 |
) |
|
— |
|
|
(0.95 |
) |
|
18.95 |
|
(11.00 |
) |
|
1,040,308 |
0.70 |
(f) |
4.03 |
(f) |
31 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
21.38 |
|
|
0.87 |
|
|
1.03 |
|
|
1.90 |
|
|
|
(0.99 |
) |
|
— |
|
|
(0.99 |
) |
|
22.29 |
|
9.02 |
|
|
1,283,908 |
0.70 |
|
3.90 |
|
30 |
|
2020 |
|
22.08 |
|
|
0.93 |
|
|
(0.39 |
) |
|
0.54 |
|
|
|
(1.24 |
) |
|
— |
|
|
(1.24 |
) |
|
21.38 |
|
2.60 |
|
|
1,060,386 |
0.71 |
|
4.38 |
|
38 |
|
2019 |
|
21.47 |
|
|
1.08 |
|
|
0.74 |
|
|
1.82 |
|
|
|
(1.21 |
) |
|
— |
|
|
(1.21 |
) |
|
22.08 |
|
8.91 |
|
|
961,413 |
0.71 |
|
5.09 |
|
24 |
|
2018 |
|
22.16 |
|
|
1.07 |
|
|
(0.53 |
) |
|
0.54 |
|
|
|
(1.23 |
) |
|
— |
|
|
(1.23 |
) |
|
21.47 |
|
2.53 |
|
|
632,596 |
0.71 |
|
4.92 |
|
29 |
|
|
|
(a) |
Based
on average shares outstanding. |
(b) |
Percentage
is not annualized. |
(c) |
After
fee waiver and/or expense reimbursement from Nuveen Fund Advisors, where
applicable. |
(d) |
Includes
voluntary compensation from Nuveen Fund Advisors. |
(e) |
For
the eleven months ended August 31, 2022. Prior to July 1, 2022, the Fund's
fiscal year end was September 30th. |
(f) |
Annualized. |
|
|
104 |
Section
5
Financial Highlights |
Nuveen
Floating Rate Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
|
Ratios/Supplemental
Data |
|
Year Ended August 31: |
Net
Asset Value, Beginning of Period |
Net Investment Income (NII) (Loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total |
|
From NII |
From Net Realized Gains |
Total |
Net Asset Value, End of Period |
Total Return(b) |
Net Assets, End of Period (000) |
Ratios of Expenses to Average Net Assets(c) |
Ratios of Net Investment Income (Loss) to
Average Net Assets(c) |
Portfolio Turnover Rate |
Class
A |
2023 |
$ |
18.11 |
|
$ |
1.36 |
|
$ |
(0.11 |
) |
$ |
1.25 |
|
|
$ |
(1.37 |
) |
$ |
— |
|
$ |
(1.37 |
) |
$ |
17.99 |
|
7.24 |
% |
$ |
204,409 |
1.02 |
% |
7.61 |
% |
24 |
% |
2022(d) |
|
19.06 |
|
|
0.63 |
|
|
(0.93 |
) |
|
(0.30 |
) |
|
|
(0.65 |
) |
|
— |
|
|
(0.65 |
) |
|
18.11 |
|
(1.61 |
) |
|
246,410 |
0.94 |
(e) |
3.70 |
(e) |
37 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
17.80 |
|
|
0.72 |
|
|
1.32 |
|
|
2.04 |
|
|
|
(0.78 |
) |
|
— |
|
|
(0.78 |
) |
|
19.06 |
|
11.67 |
|
|
121,925 |
1.03 |
|
3.88 |
|
52 |
|
2020 |
|
19.08 |
|
|
0.80 |
|
|
(1.14 |
) |
|
(0.34 |
) |
|
|
(0.94 |
) |
|
— |
|
|
(0.94 |
) |
|
17.80 |
|
(1.81 |
) |
|
90,684 |
1.01 |
|
4.43 |
|
63 |
|
2019 |
|
19.65 |
|
|
0.93 |
|
|
(0.56 |
) |
|
0.37 |
|
|
|
(0.94 |
) |
|
— |
|
|
(0.94 |
) |
|
19.08 |
|
1.93 |
|
|
112,723 |
1.00 |
|
4.81 |
|
32 |
|
2018 |
|
19.64 |
|
|
0.79 |
|
|
0.05 |
|
|
0.84 |
|
|
|
(0.83 |
) |
|
— |
|
|
(0.83 |
) |
|
19.65 |
|
4.40 |
|
|
220,648 |
1.04 |
|
4.02 |
|
33 |
|
Class
C |
2023 |
|
18.11 |
|
|
1.23 |
|
|
(0.11 |
) |
|
1.12 |
|
|
|
(1.24 |
) |
|
— |
|
|
(1.24 |
) |
|
17.99 |
|
6.45 |
|
|
48,289 |
1.77 |
|
6.89 |
|
24 |
|
2022(d) |
|
19.06 |
|
|
0.50 |
|
|
(0.93 |
) |
|
(0.43 |
) |
|
|
(0.52 |
) |
|
— |
|
|
(0.52 |
) |
|
18.11 |
|
(2.30 |
) |
|
55,285 |
1.69 |
(e) |
2.93 |
(e) |
37 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
17.80 |
|
|
0.59 |
|
|
1.31 |
|
|
1.90 |
|
|
|
(0.64 |
) |
|
— |
|
|
(0.64 |
) |
|
19.06 |
|
10.79 |
|
|
34,192 |
1.78 |
|
3.14 |
|
52 |
|
2020 |
|
19.08 |
|
|
0.66 |
|
|
(1.14 |
) |
|
(0.48 |
) |
|
|
(0.80 |
) |
|
— |
|
|
(0.80 |
) |
|
17.80 |
|
(2.50 |
) |
|
33,375 |
1.76 |
|
3.66 |
|
63 |
|
2019 |
|
19.65 |
|
|
0.79 |
|
|
(0.56 |
) |
|
0.23 |
|
|
|
(0.80 |
) |
|
— |
|
|
(0.80 |
) |
|
19.08 |
|
1.21 |
|
|
53,639 |
1.75 |
|
4.10 |
|
32 |
|
2018 |
|
19.63 |
|
|
0.64 |
|
|
0.06 |
|
|
0.70 |
|
|
|
(0.68 |
) |
|
— |
|
|
(0.68 |
) |
|
19.65 |
|
3.61 |
|
|
87,289 |
1.79 |
|
3.28 |
|
33 |
|
Class
R6 |
2023 |
|
18.21 |
|
|
1.45 |
|
|
(0.13 |
) |
|
1.32 |
|
|
|
(1.44 |
) |
|
— |
|
|
(1.44 |
) |
|
18.09 |
|
7.59 |
|
|
271,373 |
0.70 |
|
8.08 |
|
24 |
|
2022(d) |
|
19.16 |
|
|
0.69 |
|
|
(0.93 |
) |
|
(0.24 |
) |
|
|
(0.71 |
) |
|
— |
|
|
(0.71 |
) |
|
18.21 |
|
(1.29 |
) |
|
227,215 |
0.61 |
(e) |
4.03 |
(e) |
37 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
17.88 |
|
|
0.79 |
|
|
1.33 |
|
|
2.12 |
|
|
|
(0.84 |
) |
|
— |
|
|
(0.84 |
) |
|
19.16 |
|
12.03 |
|
|
83,970 |
0.70 |
|
4.20 |
|
52 |
|
2020 |
|
19.17 |
|
|
0.86 |
|
|
(1.15 |
) |
|
(0.29 |
) |
|
|
(1.00 |
) |
|
— |
|
|
(1.00 |
) |
|
17.88 |
|
(1.46 |
) |
|
55,634 |
0.67 |
|
4.75 |
|
63 |
|
2019 |
|
19.73 |
|
|
1.06 |
|
|
(0.62 |
) |
|
0.44 |
|
|
|
(1.00 |
) |
|
— |
|
|
(1.00 |
) |
|
19.17 |
|
2.34 |
|
|
54,122 |
0.66 |
|
5.53 |
|
32 |
|
2018 |
|
19.68 |
|
|
0.90 |
|
|
0.02 |
|
|
0.92 |
|
|
|
(0.87 |
) |
|
— |
|
|
(0.87 |
) |
|
19.73 |
|
4.80 |
|
|
2,298 |
0.65 |
|
4.58 |
|
33 |
|
Class
I |
2023 |
|
18.14 |
|
|
1.38 |
|
|
(0.09 |
) |
|
1.29 |
|
|
|
(1.42 |
) |
|
— |
|
|
(1.42 |
) |
|
18.01 |
|
7.46 |
|
|
1,016,373 |
0.77 |
|
7.73 |
|
24 |
|
2022(d) |
|
19.08 |
|
|
0.67 |
|
|
(0.92 |
) |
|
(0.25 |
) |
|
|
(0.69 |
) |
|
— |
|
|
(0.69 |
) |
|
18.14 |
|
(1.32 |
) |
|
1,795,387 |
0.69 |
(e) |
3.97 |
(e) |
37 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
17.81 |
|
|
0.77 |
|
|
1.32 |
|
|
2.09 |
|
|
|
(0.82 |
) |
|
— |
|
|
(0.82 |
) |
|
19.08 |
|
11.93 |
|
|
828,572 |
0.78 |
|
4.10 |
|
52 |
|
2020 |
|
19.10 |
|
|
0.84 |
|
|
(1.15 |
) |
|
(0.31 |
) |
|
|
(0.98 |
) |
|
— |
|
|
(0.98 |
) |
|
17.81 |
|
(1.56 |
) |
|
535,410 |
0.76 |
|
4.65 |
|
63 |
|
2019 |
|
19.67 |
|
|
0.97 |
|
|
(0.55 |
) |
|
0.42 |
|
|
|
(0.99 |
) |
|
— |
|
|
(0.99 |
) |
|
19.10 |
|
2.24 |
|
|
895,304 |
0.76 |
|
5.04 |
|
32 |
|
2018 |
|
19.65 |
|
|
0.84 |
|
|
0.05 |
|
|
0.89 |
|
|
|
(0.87 |
) |
|
— |
|
|
(0.87 |
) |
|
19.67 |
|
4.65 |
|
|
2,126,985 |
0.79 |
|
4.29 |
|
33 |
|
|
|
(a) |
Based
on average shares outstanding. |
(b) |
Percentage
is not annualized. |
|
|
(c) |
The
Fund has a contractual fee waiver/expense reimbursement agreement with
Nuveen Fund Advisors, but did not receive a fee waiver/expense
reimbursement during the periods presented herein.
|
|
|
(d) |
For
the eleven months ended August 31, 2022. Prior to July 1, 2022, the Fund's
fiscal year end was September 30th. |
(e) |
Annualized. |
|
|
Section
5
Financial Highlights |
105 |
Nuveen
High Yield Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
|
Ratios/Supplemental
Data |
|
Year Ended August 31: |
Net
Asset Value, Beginning of Period |
Net Investment Income (NII) (Loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total |
|
From NII |
From Net Realized Gains |
Total |
Net Asset Value, End of Period |
Total Return(b) |
Net Assets, End of Period (000) |
Ratios of Expenses to Average Net Assets(c) |
Ratios of Net Investment Income (Loss) to
Average Net Assets(c) |
Portfolio Turnover Rate |
Class
A |
2023 |
$ |
17.09 |
|
$ |
1.10 |
|
$ |
(0.05 |
) |
$ |
1.05 |
|
|
$ |
(1.07 |
) |
$ |
— |
|
$ |
(1.07 |
) |
$ |
17.07 |
|
6.37 |
% |
$ |
49,840 |
1.00 |
% |
6.51 |
% |
135 |
% |
2022(d) |
|
19.77 |
|
|
0.77 |
|
|
(2.68 |
) |
|
(1.91 |
) |
|
|
(0.77 |
) |
|
— |
|
|
(0.77 |
) |
|
17.09 |
|
(9.85 |
) |
|
50,895 |
1.00 |
(e) |
4.54 |
(e) |
116 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
18.51 |
|
|
0.86 |
|
|
1.40 |
|
|
2.26 |
|
|
|
(1.00 |
) |
|
— |
|
|
(1.00 |
) |
|
19.77 |
|
12.44 |
|
|
53,994 |
0.99 |
|
4.40 |
|
134 |
|
2020 |
|
20.16 |
|
|
1.04 |
|
|
(1.57 |
) |
|
(0.53 |
) |
|
|
(1.12 |
) |
|
— |
|
|
(1.12 |
) |
|
18.51 |
|
(2.58 |
) |
|
39,747 |
1.00 |
|
5.43 |
|
128 |
|
2019 |
|
20.14 |
|
|
1.03 |
|
|
0.07 |
|
|
1.10 |
|
|
|
(1.08 |
) |
|
— |
|
|
(1.08 |
) |
|
20.16 |
|
5.73 |
|
|
47,647 |
1.00 |
|
5.22 |
|
70 |
|
2018 |
|
20.36 |
|
|
1.04 |
|
|
(0.12 |
) |
|
0.92 |
|
|
|
(1.14 |
) |
|
— |
|
|
(1.14 |
) |
|
20.14 |
|
4.68 |
|
|
52,494 |
1.00 |
|
5.19 |
|
43 |
|
Class
C |
2023 |
|
17.08 |
|
|
0.97 |
|
|
(0.05 |
) |
|
0.92 |
|
|
|
(0.94 |
) |
|
— |
|
|
(0.94 |
) |
|
17.06 |
|
5.57 |
|
|
13,359 |
1.75 |
|
5.72 |
|
135 |
|
2022(d) |
|
19.75 |
|
|
0.64 |
|
|
(2.67 |
) |
|
(2.03 |
) |
|
|
(0.64 |
) |
|
— |
|
|
(0.64 |
) |
|
17.08 |
|
(10.46 |
) |
|
18,123 |
1.75 |
(e) |
3.76 |
(e) |
116 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
18.49 |
|
|
0.72 |
|
|
1.40 |
|
|
2.12 |
|
|
|
(0.86 |
) |
|
— |
|
|
(0.86 |
) |
|
19.75 |
|
11.61 |
|
|
30,391 |
1.75 |
|
3.69 |
|
134 |
|
2020 |
|
20.14 |
|
|
0.89 |
|
|
(1.56 |
) |
|
(0.67 |
) |
|
|
(0.98 |
) |
|
— |
|
|
(0.98 |
) |
|
18.49 |
|
(3.33 |
) |
|
36,222 |
1.75 |
|
4.70 |
|
128 |
|
2019 |
|
20.11 |
|
|
0.88 |
|
|
0.08 |
|
|
0.96 |
|
|
|
(0.93 |
) |
|
— |
|
|
(0.93 |
) |
|
20.14 |
|
4.94 |
|
|
54,408 |
1.75 |
|
4.47 |
|
70 |
|
2018 |
|
20.33 |
|
|
0.89 |
|
|
(0.13 |
) |
|
0.76 |
|
|
|
(0.98 |
) |
|
— |
|
|
(0.98 |
) |
|
20.11 |
|
3.93 |
|
|
63,854 |
1.75 |
|
4.43 |
|
43 |
|
Class
R6 |
2023 |
|
17.19 |
|
|
1.19 |
|
|
(0.07 |
) |
|
1.12 |
|
|
|
(1.14 |
) |
|
— |
|
|
(1.14 |
) |
|
17.17 |
|
6.70 |
|
|
17,731 |
0.61 |
|
6.99 |
|
135 |
|
2022(d) |
|
19.88 |
|
|
0.84 |
|
|
(2.70 |
) |
|
(1.86 |
) |
|
|
(0.83 |
) |
|
— |
|
|
(0.83 |
) |
|
17.19 |
|
(9.50 |
) |
|
7,779 |
0.62 |
(e) |
4.94 |
(e) |
116 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
18.60 |
|
|
0.93 |
|
|
1.42 |
|
|
2.35 |
|
|
|
(1.07 |
) |
|
— |
|
|
(1.07 |
) |
|
19.88 |
|
12.87 |
|
|
7,568 |
0.63 |
|
4.78 |
|
134 |
|
2020 |
|
20.25 |
|
|
1.11 |
|
|
(1.57 |
) |
|
(0.46 |
) |
|
|
(1.19 |
) |
|
— |
|
|
(1.19 |
) |
|
18.60 |
|
(2.19 |
) |
|
6,567 |
0.63 |
|
5.82 |
|
128 |
|
2019 |
|
20.22 |
|
|
1.11 |
|
|
0.07 |
|
|
1.18 |
|
|
|
(1.15 |
) |
|
— |
|
|
(1.15 |
) |
|
20.25 |
|
6.09 |
|
|
6,651 |
0.64 |
|
5.58 |
|
70 |
|
2018 |
|
20.42 |
|
|
1.12 |
|
|
(0.13 |
) |
|
0.99 |
|
|
|
(1.19 |
) |
|
— |
|
|
(1.19 |
) |
|
20.22 |
|
5.09 |
|
|
7,064 |
0.64 |
|
5.54 |
|
43 |
|
Class
I |
2023 |
|
17.11 |
|
|
1.15 |
|
|
(0.06 |
) |
|
1.09 |
|
|
|
(1.11 |
) |
|
— |
|
|
(1.11 |
) |
|
17.09 |
|
6.62 |
|
|
427,359 |
0.75 |
|
6.76 |
|
135 |
|
2022(d) |
|
19.79 |
|
|
0.81 |
|
|
(2.67 |
) |
|
(1.86 |
) |
|
|
(0.82 |
) |
|
— |
|
|
(0.82 |
) |
|
17.11 |
|
(9.63 |
) |
|
458,620 |
0.75 |
(e) |
4.77 |
(e) |
116 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
18.53 |
|
|
0.91 |
|
|
1.40 |
|
|
2.31 |
|
|
|
(1.05 |
) |
|
— |
|
|
(1.05 |
) |
|
19.79 |
|
12.69 |
|
|
579,139 |
0.74 |
|
4.66 |
|
134 |
|
2020 |
|
20.17 |
|
|
1.08 |
|
|
(1.55 |
) |
|
(0.47 |
) |
|
|
(1.17 |
) |
|
— |
|
|
(1.17 |
) |
|
18.53 |
|
(2.29 |
) |
|
427,818 |
0.75 |
|
5.67 |
|
128 |
|
2019 |
|
20.15 |
|
|
1.08 |
|
|
0.07 |
|
|
1.15 |
|
|
|
(1.13 |
) |
|
— |
|
|
(1.13 |
) |
|
20.17 |
|
5.98 |
|
|
492,539 |
0.75 |
|
5.45 |
|
70 |
|
2018 |
|
20.37 |
|
|
1.10 |
|
|
(0.13 |
) |
|
0.97 |
|
|
|
(1.19 |
) |
|
— |
|
|
(1.19 |
) |
|
20.15 |
|
4.93 |
|
|
586,060 |
0.75 |
|
5.45 |
|
43 |
|
|
|
(a) |
Based
on average shares outstanding. |
(b) |
Percentage
is not annualized. |
|
|
(c) |
After
fee waiver and/or expense reimbursement from Nuveen Fund Advisors, where
applicable. |
|
|
(d) |
For
the eleven months ended August 31, 2022. Prior to July 1, 2022, the Fund's
fiscal year end was September 30th. |
(e) |
Annualized. |
|
|
106 |
Section
5
Financial Highlights |
Nuveen
Preferred Securities and Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
|
Ratios/Supplemental
Data |
|
Year Ended August 31: |
Net
Asset Value, Beginning of Period |
Net Investment Income (NII) (Loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total |
|
From NII |
From Net Realized Gains |
Return of Capital |
Total |
Net Asset Value, End of Period |
Total Return(b) |
Net Assets, End of Period (000) |
Ratios of Expenses to Average Net Assets(c) |
Ratios of Net Investment Income (Loss) to
Average Net Assets(c) |
Portfolio Turnover Rate |
Class
A |
2023 |
$ |
15.49 |
|
$ |
0.79 |
|
$ |
(0.98 |
) |
$ |
(0.19 |
) |
|
$ |
(0.84 |
) |
$ |
— |
$ |
— |
|
$ |
(0.84 |
) |
$ |
14.46 |
|
(1.21 |
)% |
$ |
459,831 |
1.01 |
% |
5.36 |
% |
22 |
% |
2022(d) |
|
17.84 |
|
|
0.66 |
|
|
(2.25 |
) |
|
(1.59 |
) |
|
|
(0.73 |
) |
|
— |
|
(0.03 |
) |
|
(0.76 |
) |
|
15.49 |
|
(9.07 |
) |
|
551,741 |
0.99 |
(e) |
4.34 |
(e) |
12 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
16.73 |
|
|
0.76 |
|
|
1.18 |
|
|
1.94 |
|
|
|
(0.83 |
) |
|
— |
|
— |
|
|
(0.83 |
) |
|
17.84 |
|
11.79 |
|
|
597,657 |
0.99 |
|
4.32 |
|
14 |
|
2020 |
|
17.21 |
|
|
0.83 |
|
|
(0.45 |
) |
|
0.38 |
|
|
|
(0.86 |
) |
|
— |
|
— |
|
|
(0.86 |
) |
|
16.73 |
|
2.33 |
|
|
458,391 |
1.03 |
|
4.97 |
|
37 |
|
2019 |
|
16.75 |
|
|
0.90 |
|
|
0.46 |
|
|
1.36 |
|
|
|
(0.90 |
) |
|
— |
|
— |
|
|
(0.90 |
) |
|
17.21 |
|
8.45 |
|
|
416,289 |
1.03 |
|
5.44 |
|
34 |
|
2018 |
|
17.72 |
|
|
0.90 |
|
|
(0.97 |
) |
|
(0.07 |
) |
|
|
(0.90 |
) |
|
— |
|
— |
|
|
(0.90 |
) |
|
16.75 |
|
(0.39 |
) |
|
383,353 |
1.03 |
|
5.20 |
|
30 |
|
Class
C |
2023 |
|
15.50 |
|
|
0.68 |
|
|
(0.98 |
) |
|
(0.30 |
) |
|
|
(0.73 |
) |
|
— |
|
— |
|
|
(0.73 |
) |
|
14.47 |
|
(1.93 |
) |
|
146,126 |
1.76 |
|
4.62 |
|
22 |
|
2022(d) |
|
17.85 |
|
|
0.55 |
|
|
(2.26 |
) |
|
(1.71 |
) |
|
|
(0.61 |
) |
|
— |
|
(0.03 |
) |
|
(0.64 |
) |
|
15.50 |
|
(9.72 |
) |
|
184,904 |
1.74 |
(e) |
3.57 |
(e) |
12 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
16.74 |
|
|
0.63 |
|
|
1.18 |
|
|
1.81 |
|
|
|
(0.70 |
) |
|
— |
|
— |
|
|
(0.70 |
) |
|
17.85 |
|
10.96 |
|
|
232,618 |
1.74 |
|
3.57 |
|
14 |
|
2020 |
|
17.21 |
|
|
0.70 |
|
|
(0.44 |
) |
|
0.26 |
|
|
|
(0.73 |
) |
|
— |
|
— |
|
|
(0.73 |
) |
|
16.74 |
|
1.63 |
|
|
235,790 |
1.78 |
|
4.21 |
|
37 |
|
2019 |
|
16.77 |
|
|
0.78 |
|
|
0.44 |
|
|
1.22 |
|
|
|
(0.78 |
) |
|
— |
|
— |
|
|
(0.78 |
) |
|
17.21 |
|
7.54 |
|
|
260,290 |
1.79 |
|
4.69 |
|
34 |
|
2018 |
|
17.73 |
|
|
0.77 |
|
|
(0.96 |
) |
|
(0.19 |
) |
|
|
(0.77 |
) |
|
— |
|
— |
|
|
(0.77 |
) |
|
16.77 |
|
(1.07 |
) |
|
276,059 |
1.78 |
|
4.47 |
|
30 |
|
Class
R6 |
2023 |
|
15.53 |
|
|
0.84 |
|
|
(0.97 |
) |
|
(0.13 |
) |
|
|
(0.89 |
) |
|
— |
|
— |
|
|
(0.89 |
) |
|
14.51 |
|
(0.81 |
) |
|
559,817 |
0.69 |
|
5.66 |
|
22 |
|
2022(d) |
|
17.89 |
|
|
0.71 |
|
|
(2.26 |
) |
|
(1.55 |
) |
|
|
(0.78 |
) |
|
— |
|
(0.03 |
) |
|
(0.81 |
) |
|
15.53 |
|
(8.84 |
) |
|
1,051,040 |
0.67 |
(e) |
4.65 |
(e) |
12 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
16.77 |
|
|
0.83 |
|
|
1.18 |
|
|
2.01 |
|
|
|
(0.89 |
) |
|
— |
|
— |
|
|
(0.89 |
) |
|
17.89 |
|
12.16 |
|
|
944,235 |
0.68 |
|
4.65 |
|
14 |
|
2020 |
|
17.25 |
|
|
0.89 |
|
|
(0.46 |
) |
|
0.43 |
|
|
|
(0.91 |
) |
|
— |
|
— |
|
|
(0.91 |
) |
|
16.77 |
|
2.66 |
|
|
453,348 |
0.69 |
|
5.32 |
|
37 |
|
2019 |
|
16.79 |
|
|
0.95 |
|
|
0.46 |
|
|
1.41 |
|
|
|
(0.95 |
) |
|
— |
|
— |
|
|
(0.95 |
) |
|
17.25 |
|
8.77 |
|
|
382,299 |
0.70 |
|
5.73 |
|
34 |
|
2018 |
|
17.74 |
|
|
0.97 |
|
|
(0.97 |
) |
|
— |
|
|
|
(0.95 |
) |
|
— |
|
— |
|
|
(0.95 |
) |
|
16.79 |
|
(0.01 |
) |
|
673,119 |
0.71 |
|
5.63 |
|
30 |
|
Class
I |
2023 |
|
15.50 |
|
|
0.83 |
|
|
(0.98 |
) |
|
(0.15 |
) |
|
|
(0.88 |
) |
|
— |
|
— |
|
|
(0.88 |
) |
|
14.47 |
|
(0.94 |
) |
|
3,222,096 |
0.76 |
|
5.62 |
|
22 |
|
2022(d) |
|
17.86 |
|
|
0.70 |
|
|
(2.26 |
) |
|
(1.56 |
) |
|
|
(0.77 |
) |
|
— |
|
(0.03 |
) |
|
(0.80 |
) |
|
15.50 |
|
(8.91 |
) |
|
3,338,638 |
0.74 |
(e) |
4.57 |
(e) |
12 |
|
September
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
16.74 |
|
|
0.81 |
|
|
1.19 |
|
|
2.00 |
|
|
|
(0.88 |
) |
|
— |
|
— |
|
|
(0.88 |
) |
|
17.86 |
|
12.11 |
|
|
3,842,118 |
0.74 |
|
4.57 |
|
14 |
|
2020 |
|
17.22 |
|
|
0.87 |
|
|
(0.45 |
) |
|
0.42 |
|
|
|
(0.90 |
) |
|
— |
|
— |
|
|
(0.90 |
) |
|
16.74 |
|
2.57 |
|
|
2,792,500 |
0.78 |
|
5.20 |
|
37 |
|
2019 |
|
16.77 |
|
|
0.95 |
|
|
0.44 |
|
|
1.39 |
|
|
|
(0.94 |
) |
|
— |
|
— |
|
|
(0.94 |
) |
|
17.22 |
|
8.66 |
|
|
2,800,599 |
0.78 |
|
5.69 |
|
34 |
|
2018 |
|
17.73 |
|
|
0.94 |
|
|
(0.95 |
) |
|
(0.01 |
) |
|
|
(0.95 |
) |
|
— |
|
— |
|
|
(0.95 |
) |
|
16.77 |
|
(0.09 |
) |
|
2,650,158 |
0.78 |
|
5.47 |
|
30 |
|
|
|
(a) |
Based
on average shares outstanding. |
(b) |
Percentage
is not annualized. |
|
|
(c) |
The
Fund has a contractual fee waiver/expense reimbursement agreement with
Nuveen Fund Advisors, but did not receive a fee waiver/expense
reimbursement during the periods presented herein.
|
|
|
(d) |
For
the eleven months ended August 31, 2022. Prior to July 1, 2022, the Fund's
fiscal year end was September 30th. |
(e) |
Annualized. |
|
|
Section
5
Financial Highlights |
107 |
Nuveen
Strategic Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
|
Ratios/Supplemental
Data |
Year Ended August 31: |
Net
Asset Value, Beginning of Period |
Net Investment Income (NII) (Loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total |
|
From NII |
From Net Realized Gains |
Total |
Net Asset Value, End of Period |
Total Return(b) |
Net Assets, End of Period (000) |
Ratios of Expenses to Average Net Assets(c) |
Ratios of Net Investment Income (Loss) to
Average Net Assets(c) |
Portfolio Turnover Rate |
Class
A |
2023 |
$ |
9.78 |
|
$ |
0.49 |
|
$ |
(0.23 |
) |
$ |
0.26 |
|
|
$ |
(0.49 |
) |
$ |
— |
|
$ |
(0.49 |
) |
$ |
9.55 |
|
2.72 |
% |
$ |
117,023 |
0.83 |
% |
5.12 |
% |
66 |
% |
2022(d) |
|
9.66 |
|
|
0.07 |
|
|
0.12 |
|
|
0.19 |
|
|
|
(0.07 |
) |
|
— |
|
|
(0.07 |
) |
|
9.78 |
|
1.94 |
|
|
105,182 |
0.84 |
(e) |
3.99 |
(e) |
10 |
|
June
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
11.23 |
|
|
0.35 |
|
|
(1.59 |
) |
|
(1.24 |
) |
|
|
(0.33 |
) |
|
— |
|
|
(0.33 |
) |
|
9.66 |
|
(11.26 |
) |
|
102,000 |
0.83 |
|
3.19 |
|
75 |
|
2021 |
|
10.69 |
|
|
0.34 |
|
|
0.53 |
|
|
0.87 |
|
|
|
(0.33 |
) |
|
— |
|
|
(0.33 |
) |
|
11.23 |
|
8.25 |
|
|
139,845 |
0.84 |
|
3.07 |
|
128 |
|
2020 |
|
10.60 |
|
|
0.36 |
|
|
0.12 |
|
|
0.48 |
|
|
|
(0.39 |
) |
|
— |
|
|
(0.39 |
) |
|
10.69 |
|
4.63 |
|
|
101,886 |
0.84 |
|
3.42 |
|
62 |
|
2019 |
|
10.17 |
|
|
0.40 |
|
|
0.38 |
|
|
0.78 |
|
|
|
(0.35 |
) |
|
— |
|
|
(0.35 |
) |
|
10.60 |
|
7.89 |
|
|
87,084 |
0.84 |
|
3.90 |
|
54 |
|
Class
C |
2023 |
|
9.73 |
|
|
0.41 |
|
|
(0.22 |
) |
|
0.19 |
|
|
|
(0.41 |
) |
|
— |
|
|
(0.41 |
) |
|
9.51 |
|
2.04 |
|
|
12,794 |
1.59 |
|
4.33 |
|
66 |
|
2022(d) |
|
9.61 |
|
|
0.05 |
|
|
0.13 |
|
|
0.18 |
|
|
|
(0.06 |
) |
|
— |
|
|
(0.06 |
) |
|
9.73 |
|
1.82 |
|
|
18,212 |
1.59 |
(e) |
3.23 |
(e) |
10 |
|
June
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
11.17 |
|
|
0.26 |
|
|
(1.57 |
) |
|
(1.31 |
) |
|
|
(0.25 |
) |
|
— |
|
|
(0.25 |
) |
|
9.61 |
|
(11.91 |
) |
|
19,754 |
1.58 |
|
2.43 |
|
75 |
|
2021 |
|
10.64 |
|
|
0.26 |
|
|
0.52 |
|
|
0.78 |
|
|
|
(0.25 |
) |
|
— |
|
|
(0.25 |
) |
|
11.17 |
|
7.39 |
|
|
30,993 |
1.59 |
|
2.33 |
|
128 |
|
2020 |
|
10.55 |
|
|
0.28 |
|
|
0.12 |
|
|
0.40 |
|
|
|
(0.31 |
) |
|
— |
|
|
(0.31 |
) |
|
10.64 |
|
3.84 |
|
|
37,285 |
1.59 |
|
2.71 |
|
62 |
|
2019 |
|
10.12 |
|
|
0.32 |
|
|
0.39 |
|
|
0.71 |
|
|
|
(0.28 |
) |
|
— |
|
|
(0.28 |
) |
|
10.55 |
|
7.11 |
|
|
42,024 |
1.59 |
|
3.15 |
|
54 |
|
Class
R6 |
2023 |
|
9.82 |
|
|
0.52 |
|
|
(0.23 |
) |
|
0.29 |
|
|
|
(0.52 |
) |
|
— |
|
|
(0.52 |
) |
|
9.59 |
|
3.09 |
|
|
243,866 |
0.50 |
|
5.45 |
|
66 |
|
2022(d) |
|
9.69 |
|
|
0.07 |
|
|
0.13 |
|
|
0.20 |
|
|
|
(0.07 |
) |
|
— |
|
|
(0.07 |
) |
|
9.82 |
|
2.10 |
|
|
240,575 |
0.51 |
(e) |
4.31 |
(e) |
10 |
|
June
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
11.27 |
|
|
0.39 |
|
|
(1.60 |
) |
|
(1.21 |
) |
|
|
(0.37 |
) |
|
— |
|
|
(0.37 |
) |
|
9.69 |
|
(10.97 |
) |
|
236,581 |
0.49 |
|
3.59 |
|
75 |
|
2021 |
|
10.73 |
|
|
0.38 |
|
|
0.53 |
|
|
0.91 |
|
|
|
(0.37 |
) |
|
— |
|
|
(0.37 |
) |
|
11.27 |
|
8.59 |
|
|
67,689 |
0.51 |
|
3.40 |
|
128 |
|
2020 |
|
10.64 |
|
|
0.40 |
|
|
0.12 |
|
|
0.52 |
|
|
|
(0.43 |
) |
|
— |
|
|
(0.43 |
) |
|
10.73 |
|
4.96 |
|
|
59,099 |
0.50 |
|
3.77 |
|
62 |
|
2019 |
|
10.20 |
|
|
0.44 |
|
|
0.38 |
|
|
0.82 |
|
|
|
(0.38 |
) |
|
— |
|
|
(0.38 |
) |
|
10.64 |
|
8.24 |
|
|
50,127 |
0.50 |
|
4.26 |
|
54 |
|
Class
I |
2023 |
|
9.78 |
|
|
0.51 |
|
|
(0.23 |
) |
|
0.28 |
|
|
|
(0.51 |
) |
|
— |
|
|
(0.51 |
) |
|
9.55 |
|
2.97 |
|
|
327,839 |
0.58 |
|
5.35 |
|
66 |
|
2022(d) |
|
9.66 |
|
|
0.07 |
|
|
0.12 |
|
|
0.19 |
|
|
|
(0.07 |
) |
|
— |
|
|
(0.07 |
) |
|
9.78 |
|
1.99 |
|
|
329,623 |
0.59 |
(e) |
4.23 |
(e) |
10 |
|
June
30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
11.23 |
|
|
0.37 |
|
|
(1.58 |
) |
|
(1.21 |
) |
|
|
(0.36 |
) |
|
— |
|
|
(0.36 |
) |
|
9.66 |
|
(11.01 |
) |
|
333,270 |
0.58 |
|
3.46 |
|
75 |
|
2021 |
|
10.69 |
|
|
0.37 |
|
|
0.53 |
|
|
0.90 |
|
|
|
(0.36 |
) |
|
— |
|
|
(0.36 |
) |
|
11.23 |
|
8.51 |
|
|
424,677 |
0.59 |
|
3.32 |
|
128 |
|
2020 |
|
10.60 |
|
|
0.39 |
|
|
0.12 |
|
|
0.51 |
|
|
|
(0.42 |
) |
|
— |
|
|
(0.42 |
) |
|
10.69 |
|
4.86 |
|
|
395,502 |
0.59 |
|
3.71 |
|
62 |
|
2019 |
|
10.17 |
|
|
0.42 |
|
|
0.39 |
|
|
0.81 |
|
|
|
(0.38 |
) |
|
— |
|
|
(0.38 |
) |
|
10.60 |
|
8.15 |
|
|
400,059 |
0.59 |
|
4.15 |
|
54 |
|
|
|
(a) |
Based
on average shares outstanding. |
(b) |
Percentage
is not annualized. |
(c) |
After
fee waiver and/or expense reimbursement from Nuveen Fund Advisors, where
applicable. |
(d) |
For
the two months ended August 31, 2022. Prior to July 1, 2022, the Fund's
fiscal year end was June 30th. |
(e) |
Annualized. |
|
|
108 |
Section
5
Financial Highlights |
Appendix
to the Prospectus
VARIATIONS
IN SALES CHARGE REDUCTIONS AND WAIVERS
AVAILABLE
THROUGH CERTAIN INTERMEDIARIES
The
availability of certain sales charge variations, waivers and discounts will
depend on whether you purchase your shares directly from a Fund or through a
financial intermediary. Financial intermediaries may impose different sales
charges and have unique policies and procedures regarding the availability of
sales charge waivers and/or discounts (including based on account type), which
differ from those described in the prospectus and are disclosed below. All sales
charges and sales charge variations, waivers and discounts available to
investors, other than those set forth below, are described in the prospectus. To
the extent a financial intermediary notifies Nuveen Fund Advisors, LLC
(“Nuveen
Fund Advisors”
or the “Adviser”)
or Nuveen Securities, LLC (the “Distributor”)
of its intention to impose sales charges or have sales charge waivers and/or
discounts that differ from those described in the prospectus, such information
provided by that intermediary will be disclosed in this
Appendix.
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. Please contact your financial intermediary
with questions regarding your eligibility for applicable sales charge
variations, waivers and discounts or for additional information regarding your
intermediary’s policies for implementing particular sales charge variations,
waivers and discounts. For waivers and discounts not available through a
particular financial intermediary, shareholders will have to purchase shares
directly from a Fund or through another intermediary to receive these waivers or
discounts.
The
information provided below for a particular financial intermediary is reproduced
based on information provided by that intermediary. A financial intermediary’s
administration and implementation of its particular policies with respect to any
variations, waivers and/or discounts is neither supervised nor verified by the
Funds, the Adviser or the Distributor.
As
used below, the phrase “Nuveen-sponsored mutual fund(s)” means any mutual fund
for which Nuveen Fund Advisors serves as the investment adviser.
CLASS
A SHARE FRONT-END SALES CHARGE WAIVERS AVAILABLE AT AMERIPRISE FINANCIAL
The
following information applies to Class A share purchases if you have an account
with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise Financial platform or account will
be eligible only for the following front-end sales charge waivers with respect
to Class A shares, which may differ from those disclosed elsewhere in this
Fund’s prospectus or SAI.
· Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
· Shares
purchased through reinvestment of capital gain distributions and dividend
reinvestment when purchasing shares of the same Fund (but not any other
Nuveen-sponsored mutual fund).
· Shares
exchanged from Class C shares of the same fund in the month of or following the
seven-year anniversary of the purchase date. To the extent that this prospectus
otherwise provides for a waiver with respect to such shares following a shorter
holding period, that waiver will apply to exchanges following such shorter
period. To the extent that this prospectus otherwise provides for a waiver with
respect to exchanges of Class C shares for load waived shares, that waiver will
also apply to such exchanges.
· Employees
and registered representatives of Ameriprise Financial or its affiliates and
their immediate family members.
· Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education
Savings Accounts, 401(k)s, 403(b) tax sheltered custodial accounts subject to
ERISA, and defined benefit
A-2
plans)
that are held by a covered family member, defined as an Ameriprise financial
advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father,
grandmother, grandfather, great grandmother, great grandfather), advisor’s
lineal descendant (son, daughter, step son, step daughter, grandson,
granddaughter, great grandson, great granddaughter) or any spouse of a covered
family member who is a lineal descendant.
· Shares
purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund,
provided (1) the repurchase occurs within 90 days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (i.e., Rights of
Reinstatement).
SALES
WAIVERS AND REDUCTIONS IN SALES CHARGES AVAILABLE AT ROBERT
W. BAIRD & CO. (“BAIRD”)
Shareholders
purchasing fund shares through a Baird platform or account will only be eligible
for the following sales charge waivers (front-end sales charge waivers and CDSC
waivers) and discounts, which may differ from those disclosed elsewhere in this
prospectus or the SAI.
Front-End
Sales Charge Waivers on Class A Shares Available at Baird
· Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing share of the same fund
· Share
purchase by employees and registers representatives of Baird or its affiliate
and their family members as designated by Baird
· Shares
purchase from the proceeds of redemptions from another Nuveen-sponsored mutual
fund, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same accounts, and (3)
redeemed shares were subject to a front-end or deferred sales charge (known as
rights of reinstatement)
· A
shareholder in Class C Shares will have their share converted at net asset value
to Class A shares of the fund if the shares are no longer subject to CDSC and
the conversion is in line with the policies and procedures of Baird
· Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs
CDSC
Waivers on Class A and C Shares Available at Baird
· Shares
sold due to death or disability of the shareholder
· Shares
sold as part of a systematic withdrawal plan as described in this
prospectus
· Shares
bought due to returns of excess contributions from an IRA account
· Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations.
· Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird
· Shares
acquired through a right of reinstatement
Front-End
Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulation
· Breakpoints
as described in this prospectus
· Rights
of accumulation, which entitles shareholders to breakpoint discounts, will be
automatically calculated based on the aggregated holding of all Nuveen-sponsored
mutual fund assets held by accounts within the purchaser’s household at Baird.
Eligible Nuveen-sponsored mutual fund
assets
not held at Baird may be included in the rights of accumulation calculation only
if the shareholder notifies his or her financial advisor about such assets
· Letters
of intent, which allow for breakpoint discounts based on anticipated purchases
of Nuveen-sponsored mutual funds through Baird over a 13-month period of
time
EDWARD
D. JONES & CO., L.P. (“EDWARD
JONES”)
Policies
Regarding Transactions Through Edward Jones
The
following information has been provided by Edward Jones:
Effective
on or after January 1st,
2024, the following information supersedes prior information with respect to
transactions and positions held in fund shares through an Edward Jones system.
Clients of Edward Jones (also referred to as "shareholders") purchasing fund
shares on the Edward Jones commission and fee-based platforms are eligible only
for the following sales charge discounts (also referred to as "breakpoints") and
waivers, which can differ from discounts and waivers described elsewhere in the
mutual fund prospectus or statement of additional information (“SAI”)
or through another broker-dealer. In all instances, it is the shareholder's
responsibility to inform Edward Jones at the time of purchase of any
relationship, holdings of Nuveen-sponsored mutual funds, or other facts
qualifying the purchaser for discounts or waivers. Edward Jones can ask for
documentation of such circumstance. Shareholders should contact Edward Jones if
they have questions regarding their eligibility for these discounts and
waivers.
Breakpoints
· Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in
the prospectus.
Rights
of Accumulation (“ROA”)
· The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except certain money market funds and any assets
held in group retirement plans) of Nuveen-sponsored mutual fund assets held by
the shareholder or in an account grouped by Edward Jones with other accounts for
the purpose of providing certain pricing considerations ("pricing groups"). If
grouping assets as a shareholder, this includes all share classes held on the
Edward Jones platform and/or held on another platform. The inclusion of eligible
Nuveen-sponsored mutual fund assets in the ROA calculation is dependent on the
shareholder notifying Edward Jones of such assets at the time of calculation.
Money market funds are included only if such shares were sold with a sales
charge at the time of purchase or acquired in exchange for shares purchased with
a sales charge.
· The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping as opposed to including all share classes at a shareholder
or pricing group level.
· ROA
is determined by calculating the higher of cost minus redemptions or market
value (current shares x NAV).
Letter
of Intent (“LOI”)
· Through
an LOI, shareholders can receive the sales charge and breakpoint discounts for
purchases shareholders intend to make over a 13-month period from the date
Edward Jones receives the LOI. The LOI is determined by calculating the higher
of cost or market value of qualifying holdings at LOI initiation in combination
with the value that the shareholder intends to buy over a 13-month period to
calculate the front-end sales charge and any breakpoint discounts. Each purchase
the shareholder makes during that 13-month period will receive the sales charge
and breakpoint discount that applies to the total amount. The inclusion of
A-4
eligible
Nuveen-sponsored mutual fund assets in the LOI calculation is dependent on the
shareholder notifying Edward Jones of such assets at the time of calculation.
Purchases made before the LOI is received by Edward Jones are not adjusted under
the LOI and will not reduce the sales charge previously paid. Sales charges will
be adjusted if the LOI is not met.
· If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
· Associates
of Edward Jones and its affiliates and other accounts in the same pricing group
(as determined by Edward Jones under its policies and procedures) as the
associate. This waiver will continue for the remainder of the associate's life
if the associate retires from Edward Jones in good-standing and remains in good
standing pursuant to Edward Jones’ policies and procedures.
· Shares
purchased in an Edward Jones fee-based program.
· Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment.
· Shares
purchased from the proceeds of redeemed shares of a Nuveen-sponsored mutual fund
so long as the following conditions are met: the proceeds are from the sale of
shares within 60 days of the purchase, the sale and purchase are made from a
share class that charges a front load, and one of the following:
o The
redemption and repurchase occur in the same account.
o The
redemption proceeds are used to process an: IRA contribution, excess
contributions, conversion, recharacterizing of contributions, or distribution,
and the repurchase is done in an account within the same Edward Jones grouping
for ROA.
· Shares
exchanged into Class A shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of Edward Jones.
Edward Jones is responsible for any remaining CDSC due to the fund company, if
applicable. Any future purchases are subject to the applicable sales charge as
disclosed in the prospectus.
· Exchanges
from Class C shares to Class A shares of the same fund, generally, in the
84th
month following the anniversary of the purchase date or earlier at the
discretion of Edward Jones.
Contingent
Deferred Sales Charge (“CDSC”)
Waivers
If
the shareholder purchases shares that are subject to a CDSC and those shares are
redeemed before the CDSC is expired, the shareholder is responsible to pay the
CDSC except in the following conditions:
· The
death or disability of the shareholder.
· Systematic
withdrawals with up to 10% per year of the account value.
· Return
of excess contributions from an Individual Retirement Account
(IRA).
· Shares
redeemed as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder reaches
qualified
age based on applicable IRS regulations.
· Shares
redeemed to pay Edward Jones fees or costs in such cases where the transaction
is initiated by Edward Jones.
· Shares
exchanged in an Edward Jones fee-based program.
· Shares
acquired through NAV reinstatement.
· Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward Jones
Minimum
Purchase Amounts
· Initial
purchase minimum: $250
· Subsequent
purchase minimum: none
Minimum
Balances
· Edward
Jones has the right to redeem at its discretion fund holdings with a balance of
$250 or less. The following are examples of accounts that are not included in
this policy:
o A
fee-based account held on an Edward Jones platform
o A
529 account held on an Edward Jones platform
o An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
· At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a
shareholder's holdings of a Nuveen-sponsored mutual fund to Class A shares of
the same fund.
CLASS
A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH JANNEY
MONTGOMERY SCOTT LLC
Shareholders
purchasing fund shares through a Janney Montgomery Scott LLC (“Janney”)
brokerage account will be eligible only for the following load waivers
(front-end sales charge waivers and contingent deferred sales charge
(“CDSC”)
waivers) and discounts, which may differ from those disclosed elsewhere in this
fund’s Prospectus or SAI.
Front-end
sales charge waivers on Class A shares available at Janney
· Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
Nuveen-sponsored mutual fund).
· Shares
purchased by employees and registered representatives of Janney or its
affiliates and their family members as designated by Janney.
· Shares
purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund,
provided (1) the repurchase occurs within ninety (90) days following the
redemption, (2) the redemption and purchase occur in the same account, and (3)
redeemed shares were subject to a front-end or deferred sales load (i.e., right
of reinstatement).
· Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
· Class
C shares that are no longer subject to a contingent deferred sales charge and
are converted to Class A shares of the same fund pursuant to Janney’s policies
and procedures.
CDSC
waivers on Class A and C shares available at Janney
· Shares
sold upon the death or disability of the shareholder.
· Shares
sold as part of a systematic withdrawal plan as described in the fund’s
Prospectus.
· Shares
purchased in connection with a return of excess contributions from an IRA
account.
A-6
· Shares
sold as part of a required minimum distribution for IRA and retirement accounts
if the redemption is taken in or after the year the shareholder reaches the
qualified age based on applicable IRS regulations.
· Shares
sold to pay Janney fees but only if the transaction is initiated by
Janney.
· Shares
acquired through a right of reinstatement.
Front-end
sales charge discounts available at Janney: breakpoints, rights of accumulation,
and/or letters of intent
· Breakpoints
as described in the fund’s Prospectus.
· Rights
of accumulation (“ROA”),
which entitle shareholders to breakpoint discounts, will be automatically
calculated based on the aggregated holding of all Nuveen-sponsored mutual fund
assets held by accounts within the purchaser’s household at Janney. Eligible
Nuveen-sponsored mutual fund assets not held at Janney may be included in the
ROA calculation only if the shareholder notifies his or her financial advisor
about such assets.
· Letters
of intent which allow for breakpoint discounts based on anticipated purchases of
Nuveen-sponsored mutual funds, over a 13-month time period. Eligible
Nuveen-sponsored mutual fund assets not held at Janney Montgomery Scott may be
included in the calculation of letters of intent only if the shareholder
notifies his or her financial advisor about such assets.
J.P.
MORGAN SECURITIES LLC
Effective
September 29, 2023, if you purchase or hold fund shares through an applicable
J.P. Morgan Securities LLC brokerage account, you will be eligible for the
following sales charge waivers (front-end sales charge waivers and contingent
deferred sales charge (“CDSC”),
or back-end sales charge, waivers), share class conversion policy and discounts,
which may differ from those disclosed elsewhere in this fund’s prospectus or
Statement of Additional Information (“SAI”).
Front-end
sales charge waivers on Class A shares available at J.P. Morgan Securities LLC
· Shares
exchanged from Class C (i.e., level-load) shares that are no longer subject to a
CDSC and are exchanged into Class A shares of the same fund pursuant to J.P.
Morgan Securities LLC’s share
class exchange policy.
· Qualified
employer-sponsored defined contribution and defined benefit retirement plans,
nonqualified deferred compensation plans, other employee benefit plans and
trusts used to fund those plans. For purposes of this provision, such
plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs
or
501(c)(3) accounts.
· Shares
of funds purchased through J.P. Morgan Securities LLC Self-Directed Investing
accounts.
· Shares
purchased through rights of reinstatement.
· Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
Nuveen-sponsored mutual fund).
· Shares
purchased by employees and registered representatives of J.P. Morgan Securities
LLC or its affiliates and their spouse or financial dependent as defined by J.P.
Morgan Securities LLC.
Class
C to Class A share conversion
· A
shareholder in the fund’s Class C shares will have their shares converted to
Class A shares (or the appropriate share class) of the same fund if the shares
are no longer subject to a CDSC and the conversion is consistent with J.P.
Morgan Securities LLC’s policies and procedures.
CDSC
waivers on Class A and C Shares available at J.P. Morgan Securities LLC
· Shares
sold upon the death or disability of the shareholder.
· Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
· Shares
purchased in connection with a return of excess contributions from an IRA
account.
· Shares
sold as part of a required minimum distribution for IRA and retirement accounts
pursuant to the Internal Revenue Code.
· Shares
acquired through a right of reinstatement.
Front-end
load discounts available at J.P. Morgan Securities LLC: breakpoints, rights of
accumulation & letters of intent
· Breakpoints
as described in the prospectus.
· Rights
of Accumulation (“ROA”)
which entitle shareholders to breakpoint discounts as described in the fund’s
prospectus will be automatically calculated based on the aggregated holding of
all Nuveen-sponsored mutual fund assets held by accounts within the purchaser’s
household at J.P. Morgan Securities LLC. Eligible Nuveen-sponsored mutual fund
assets not held at J.P. Morgan Securities LLC (including 529 program holdings,
where applicable) may be included in the ROA calculation only if the shareholder
notifies his or her financial advisor about such assets.
· Letters
of Intent (“LOI”)
which allow for breakpoint discounts based on anticipated purchases of any
Nuveen-sponsored mutual fund, through J.P. Morgan Securities LLC, over a
13-month period of time (if applicable).
CLASS
A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH
MERRILL LYNCH
Shareholders
purchasing Fund shares through a Merrill Lynch platform or account will be
eligible only for the following load waivers (front-end sales charge waivers and
contingent deferred sales charge waivers) and discounts, which may differ from
those disclosed in the Funds’ prospectus or SAI. Shareholders should contact
Merrill Lynch to determine their eligibility for these waivers and
discounts.
Front-End
Sales Load Waivers on Class A Shares Available at Merrill Lynch
· Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
· Shares
purchased by a 529 Plan (does not include 529 Plan units or 529-specific share
classes or equivalents)
· Shares
purchased through a Merrill Lynch affiliated investment advisory
program
· Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment
advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to
Merrill Lynch’s policies relating to sales load discounts and
waivers
· Shares
purchased by third party investment advisors on behalf of their advisory clients
through Merrill Lynch’s platform
· Shares
of funds purchased through the Merrill Edge Self-Directed platform
· Shares
purchased through reinvestment of capital gain distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
Nuveen-sponsored mutual fund)
· Shares
exchanged from Class C shares of the same fund pursuant to Merrill Lynch’s
policies relating to sales load discounts and waivers
· Employees
and registered representatives of Merrill Lynch or its affiliates and their
family members
A-8
· Directors
or Trustees of the Funds, and employees of the Funds’ investment adviser or any
of its affiliates, as described in the prospectus
· Eligible
shares purchased from the proceeds of redemptions of a Nuveen-sponsored mutual
fund, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and (3)
redeemed shares were subject to a front-end or deferred sales load (known as
Rights of Reinstatement). Automated transactions (i.e. systematic purchases and
withdrawals) and purchases made after shares are automatically sold to pay
Merrill Lynch’s account maintenance fees are not eligible for
reinstatement
CDSC
Waivers on A and C Shares Available at Merrill Lynch
· Death
or disability of the shareholder
· Shares
sold as part of a systematic withdrawal plan as described in the
prospectus
· Return
of excess contributions from an IRA Account
· Shares
sold as part of a required minimum distribution for IRA and retirement accounts
pursuant to the Internal Revenue Code
· Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by
Merrill Lynch
· Shares
acquired through a Right of Reinstatement
· Shares
held in retirement brokerage accounts, that are exchanged for a lower cost share
class due to transfer to a fee based account or platform
· Shares
received through an exchange due to the holdings moving from a Merrill Lynch
affiliated investment advisory program to a Merrill Lynch brokerage
(non-advisory) account pursuant to Merrill Lynch’s policies relating to sales
load discounts and waivers
Front-End
Load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation
& Letters of Intent
· Breakpoints
as described in the prospectus
· Rights
of Accumulation (“ROA”)
which entitle shareholders to breakpoint discounts as described in the Fund’s
prospectus will be automatically calculated based on the aggregated holding of
all Nuveen-sponsored mutual fund assets held by accounts (including 529 program
holdings, where applicable) within the purchaser’s household at Merrill Lynch.
Eligible Nuveen-sponsored mutual fund assets not held at Merrill Lynch may be
included in the ROA calculation only if the shareholder notifies his or her
financial advisor about such assets
· Letters
of Intent (“LOI”)
which allow for breakpoint discounts based on anticipated purchases of any
Nuveen-sponsored mutual fund, through Merrill Lynch, over a 13-month period of
time (if applicable)
CLASS
A SHARE FRONT-END SALES CHARGE WAIVERS AVAILABLE AT MORGAN STANLEY WEALTH
MANAGEMENT
Shareholders
purchasing Fund shares through a Morgan Stanley Wealth Management transactional
brokerage account will be eligible only for the following front-end sales charge
waivers with respect to Class A shares, which may differ from and may be more
limited than those disclosed elsewhere in this Fund’s prospectus or SAI.
Shareholders should contact Morgan Stanley Wealth Management to determine their
eligibility for these waivers and discounts.
· Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
· Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s
account linking rules
· Shares
purchased through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund
· Shares
purchased through a Morgan Stanley self-directed brokerage account
· Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred
sales charge and are converted to Class A shares of the same fund pursuant to
Morgan Stanley Wealth Management’s share class conversion program
· Shares
purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund,
provided (i) the repurchase occurs within 90 days following the redemption, (ii)
the redemption and purchase occur in the same account, and (iii) redeemed shares
were subject to a front-end or deferred sales charge.
CLASS
A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH
OPPENHEIMER & CO. INC.
Shareholders
purchasing fund shares through an Oppenheimer & Co. Inc. (“OPCO”)
platform or account are eligible only for the following load waivers (front-end
sales charge waivers and contingent deferred, or back-end, sales charge waivers)
and discounts, which may differ from those disclosed elsewhere in this
prospectus or SAI.
Front-End
Sales Load Waivers on Class A Shares available at OPCO
· Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
· Shares
purchased by or through a 529 Plan
· Shares
purchased through a OPCO affiliated investment advisory program
· Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
Nuveen-sponsored mutual fund)
· Shares
purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund,
provided (1) the repurchase occurs within 90 days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (known as Rights of
Restatement)
· A
shareholder in Class C shares will have their shares converted at net asset
value to Class A shares (or the appropriate share class) of the Fund if the
shares are no longer subject to a CDSC and the conversion is in line with the
policies and procedures of OPCO
· Employees
and registered representatives of OPCO or its affiliates and their family
members
· Directors
or Trustees of the Funds, and employees of the Funds’ investment adviser or any
of its affiliates, as described in this prospectus
CDSC
Waivers on A and C Shares available at OPCO
· Death
or disability of the shareholder
· Shares
sold as part of a systematic withdrawal plan as described in the
prospectus
· Return
of excess contributions from an IRA Account
· Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the prospectus
A-10
· Shares
sold to pay OPCO fees but only if the transaction is initiated by
OPCO
· Shares
acquired through a Right of Reinstatement
Front-End
Load Discounts Available at OPCO: Breakpoints, Rights of Accumulation &
Letters of Intent
· Breakpoints
as described in the prospectus.
· Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of all Nuveen-sponsored
mutual fund assets held by accounts within the purchaser’s household at OPCO.
Eligible Nuveen-sponsored mutual fund assets not held at OPCO may be included in
the ROA calculation only if the shareholder notifies his or her financial
advisor about such assets.
PFS
INVESTMENTS INC. (“PFSI”)
Policies
Regarding Fund Purchases Through PFSI
The
following information supersedes all prior information with respect to
transactions and positions held in fund shares purchased through PFSI and held
on the mutual fund platform of its affiliate, Primerica Shareholder Services
(“PSS”).
Clients of PFSI (also referred to as “shareholders”) purchasing fund shares on
the PSS platform are eligible only for the following share classes, sales charge
discounts (also referred to as “breakpoints”) and waivers, which can differ from
share classes, discounts and waivers described elsewhere in this prospectus or
the related statement of additional information (“SAI”)
or through another broker-dealer. In all instances, it is the shareholder’s
responsibility to inform PFSI at the time of a purchase of all holdings of
Nuveen Funds on the PSS platform, or other facts qualifying the purchaser for
discounts or waivers. PFSI may request reasonable documentation of such facts
and condition the granting of any discount or waiver on the timely receipt of
such documents. Shareholders should contact PSS if they have questions regarding
their eligibility for these discounts and waivers.
Share
Classes
· Class
A shares are available only to non-retirement accounts, individual retirement
accounts (IRA), SEP IRAs, SIMPLE IRAs, Keogh Plans, and all other account
types.
· Class
C shares are available only to accounts with existing Class C share holdings.
Breakpoints
· Breakpoint
pricing at dollar thresholds as described in the prospectus of the fund you are
purchasing.
Rights
of Accumulation (“ROA”)
· The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except any assets held in group retirement
plans) of Nuveen Funds held by the shareholder on the PSS Platform. The
inclusion of eligible Nuveen Fund assets in the ROA calculation is dependent on
the shareholder notifying PFSI of such assets at the time of calculation. Shares
of money
market funds are included only if such shares were acquired in exchange for
shares of another Nuveen Fund purchased with a sales charge. No
shares of Nuveen Funds held by the shareholder away from the PSS platform will
be granted ROA with shares of any Nuveen Fund purchased on the PSS
platform.
· Any
SEP IRA plan, any SIMPLE IRA plan or any Payroll Deduction plan (“PDP”)
on the PSS platform will be defaulted to plan-level grouping for purposes of
ROA, which allows each participating employee ROA with all other eligible shares
held in plan accounts on the PSS platform. At any time, a participating employee
may elect to exercise a one-time option to change grouping for purposes of ROA
to shareholder- level grouping, which allows the plan account of the electing
employee ROA with her other eligible holdings on the PSS platform, but not with
all
other
eligible participant holdings in the plan. Eligible shares held in plan accounts
electing shareholder-level grouping will not be available for purposes of ROA to
plan accounts electing plan-level grouping.
· ROA
is determined by calculating the higher of cost minus redemptions or current
market value (current shares multiplied by Fund NAV).
Letter
of Intent (“LOI”)
· By
executing a LOI, shareholders can receive the sales charge and breakpoint
discounts for purchases shareholders intend to make over a 13-month period
through PFSI, from the date PSS receives the LOI. The purchase price of the LOI
is determined by calculating the higher of cost or market value of qualifying
holdings at LOI initiation in combination with the dollar amount the shareholder
intends to invest over a 13-month period to arrive at total investment for
purposes of determining any breakpoint discount and the applicable front-end
sales charge. Each purchase the shareholder makes during that 13-month period
will receive the sales charge and breakpoint discount that applies to the
projected total investment.
· Only
holdings of Nuveen Funds on the PSS platform are eligible for inclusion in the
LOI calculation and the shareholder must notify PFSI of all eligible assets at
the time of calculation.
· Purchases
made before the LOI is received by PSS are not adjusted under the LOI, and the
LOI will not reduce any sales charge previously paid. Sales charges will be
automatically adjusted if the total purchases required by the LOI are not
met.
· If
an employer maintaining a SEP IRA plan, SIMPLE IRA plan or non-IRA PDP on the
PSS platform has elected to establish or change ROA for the accounts associated
with the plan to a plan-level grouping, LOIs will also be at the plan-level and
may only be established by the employer. LOIs are not available to PDP IRA plans
on the PSS platform with plan-level grouping for purposes of ROA but are
available to any participating employee that elects shareholder-level grouping
for purposes of ROA.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
· Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment.
· Shares
purchased with the proceeds of redeemed shares of a Nuveen-sponsored mutual fund
so long as the following conditions are met: 1) the proceeds are from the sale
of shares within 90 days of the purchase, 2) the sale and purchase are made in
the same share class and the same account or the purchase is made in an
individual retirement account with proceeds from liquidations in a
non-retirement account, and 3) the redeemed shares were subject to a front-end
or deferred sales load. Automated transactions (i.e. systematic purchases and
withdrawals), full or partial transfers or rollovers of retirement accounts, and
purchases made after shares are automatically sold to pay account maintenance
fees are not eligible for this sales charge waiver.
· Shares
exchanged into Class A shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of PFSI. PFSI is
responsible for any remaining CDSC due to the fund company, if applicable. Any
future purchases are subject to the applicable sales charge as disclosed in the
prospectus.
Exchanges
between Nuveen Funds and the Nuveen Money Market Fund, a Private Label of the
TIAA-CREF Money Market Fund
· Shareholders
may exchange all or a portion of their Nuveen Fund shares held on the PSS
Platform for Retail Class shares of the Nuveen Money Market Fund, a private
label of the TIAA-CREF Money Market Fund (the “Money
Market Fund”).
A-12
· Shareholders
may also exchange Money Market Fund shares to purchase shares of Nuveen Funds
offered on the PSS Platform.
· The
Money Market Fund is managed by Teachers Advisors, LLC, an affiliate of Nuveen
Fund Advisors, LLC and invests in a portfolio of money market instruments.
Shares of the Money Market Fund are not offered by this prospectus and the Money
Market Fund is not overseen by the Board of Trustees of the Nuveen
Funds.
CLASS
A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH
RAYMOND JAMES & ASSOCIATES, INC., RAYMOND JAMES FINANCIAL SERVICES, INC. AND
EACH ENTITY’S AFFILIATES (“RAYMOND
JAMES”)
Shareholders
purchasing Fund shares through a Raymond James platform or account, or through
an introducing broker-dealer or independent registered investment adviser for
which Raymond James provides trade execution, clearance, and/or custody
services, will be eligible only for the following load waivers (front-end sales
charge waivers and contingent deferred sales charge waivers) and discounts,
which may differ from those disclosed elsewhere in your Fund’s prospectus or
SAI.
Front-End
Sales Load Waivers on Class A Shares Available at Raymond James
· Shares
purchased through a Raymond James investment advisory program.
· Shares
purchased of a Nuveen-sponsored mutual fund through a systematic reinvestment of
capital gains and dividend distributions.
· Employees
and registered representatives of Raymond James or its affiliates and their
family members as designated by Raymond James.
· Shares
purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund,
provided (1) the repurchase occurs within 90 days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (known as Rights of
Reinstatement).
· A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond James.
CDSC
Waivers on Class A and C Shares Available at Raymond James
· Death
or disability of the shareholder.
· Shares
sold as part of a systematic withdrawal plan as described in the
prospectus.
· Return
of excess contributions from an IRA Account.
· Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the prospectus.
· Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James.
· Shares
acquired through a Right of Reinstatement.
Front-End
Load Discounts Available at Raymond James: Breakpoints, Rights of Accumulation,
and/or Letters of Intent
· Breakpoints
as described in the prospectus.
· Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of all Nuveen-sponsored
mutual fund assets held by accounts within the purchaser’s household at Raymond
James. Eligible Nuveen-sponsored
mutual
fund assets not held at Raymond James may be included in the calculation of
rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
· Letters
of intent which allow for breakpoint discounts based on anticipated purchases of
Nuveen-sponsored mutual funds, over a 13-month time period. Eligible
Nuveen-sponsored mutual fund assets not held at Raymond James may be included in
the calculation of letters of intent only if the shareholder notifies his or her
financial advisor about such assets.
CLASS
C TO CLASS A CONVERSIONS AVAILABLE AT U.S. BANCORP INVESTMENTS, INC.
Shareholders
who hold a Fund’s Class C shares through a U.S. Bancorp Investments, Inc.
(“USBI”)
platform or account or who own shares for which USBI or an affiliate is the
broker-dealer of record and the shares are held in an omnibus account, will have
their shares automatically converted at net asset value to Class A shares of the
same Fund in the month of the six-year anniversary of the purchase date, if the
shares are no longer subject to a CDSC and the conversion is in line with the
policies and procedures of USBI.
CLASS
A SALES CHARGE WAIVERS AVAILABLE ONLY THROUGH SPECIFIED INTERMEDIARIES
As
described in the prospectus, Class A shares may be purchased at net asset
without a sales charge by employer-sponsored retirement plans (“ESRPs”)
as defined in the prospectus, except that, in the case of ESRPs held through a
brokerage account, Class A shares will be available at net asset value without a
sales charge only if the broker-dealer has entered into an agreement with the
Distributor that allows for such purchases.
The
following intermediaries have entered into such an agreement:
Baker
& Co., Inc.
Cetera
Advisor Networks LLC
Cetera
Advisors LLC
Cetera
Financial Specialists LLC
Cetera
Investment Services LLC
Country
Club Financial Services, Inc.
Cutter
& Co. Brokerage Inc.
Davenport
& Co. LLC
Devenir
Investment Advisors, LLC
Fintrust
Brokerage Services
First
Kentucky Securities Corp.
First
Western Securities
Gold
Coast Securities, Inc.
Hewitt
Financial Services LLC
Hilltop
Securities Inc.
Infinex
Investments, Inc.
J.P.
Morgan Securities LLC
KMS
Financial Services, Inc.
Mid-Atlantic
Capital Corp.
OFG
Financial Services, Inc.
Principal
Securities Inc.
RDM
Investment Services, Inc.
Register
Financial Associates, Inc.
Shareholders
Service Group Inc.
Southeast
Investments, NC, Inc.
A-14
Stifel,
Nicolaus & Co., Inc.
Waddell
& Reed Inc.
As
described in the prospectus, Class A shares may be purchased at net asset value
without a sales charge 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.
The
following intermediaries have entered into such an agreement:
Citigroup
Global Markets Inc.
J.P.
Morgan Securities LLC
Merrill
Lynch, Pierce, Fenner & Smith Inc.
TD
Ameritrade, Inc.
TD
Ameritrade Clearing, Inc.
[THIS
PAGE INTENTIONALLY LEFT BLANK]
Nuveen
Mutual Funds
Nuveen
offers a variety of mutual funds designed to help you reach your financial
goals. The funds below are grouped by category.
All-American
Municipal Bond
High
Yield Municipal Bond
Intermediate
Duration Municipal Bond
Limited
Term Municipal Bond
Short
Duration High Yield Municipal Bond
Short
Term Municipal Bond
Strategic
Municipal Opportunities
Arizona
Municipal Bond
California
High Yield Municipal Bond
California
Municipal Bond
Colorado
Municipal Bond
Connecticut
Municipal Bond
Georgia
Municipal Bond
Kansas
Municipal Bond
Kentucky
Municipal Bond
Louisiana
Municipal Bond
Maryland
Municipal Bond
Massachusetts
Municipal Bond
Municipal-State
(continued)
Michigan
Municipal Bond
Minnesota
Intermediate Municipal Bond
Minnesota
Municipal Bond
Missouri
Municipal Bond
Nebraska
Municipal Bond
New
Jersey Municipal Bond
New
Mexico Municipal Bond
New
York Municipal Bond
North
Carolina Municipal Bond
Ohio
Municipal Bond
Oregon
Intermediate Municipal Bond
Pennsylvania
Municipal Bond
Virginia
Municipal Bond
Wisconsin
Municipal Bond
Credit
Income
Flexible
Income
Floating
Rate Income
High
Yield Income
Preferred
Securities and Income
Strategic
Income
Global
Dividend Growth
Global
Equity Income
International
Dividend Growth
International
Small Cap
International
Value
Dividend
Value
Large
Cap Value
Mid
Cap Value
Multi
Cap Value
Small
Cap Value
Small
Cap Value Opportunities
Small/Mid
Cap Value
Mid
Cap Growth Opportunities
Small
Cap Growth Opportunities
Winslow
Large-Cap Growth ESG
Dividend
Growth
Large
Cap Select
Small
Cap Select
Global
Infrastructure
Global
Real Estate Securities
Real
Asset Income
Real
Estate Securities
Equity
Long/Short
Other
Information for Fund Shareholders
Several
additional sources of information are available to you, including the codes of
ethics adopted by the Funds, Nuveen, LLC, Nuveen Fund Advisors and Nuveen Asset
Management. The appendix to this prospectus, “Variations in Sales Charge
Reductions and Waivers Available Through Certain Intermediaries,” contains
information on sales charge reductions and waivers available through certain
financial intermediaries that differ from the sales charge reductions and
waivers disclosed in this prospectus and the related statement of additional
information. The
statement of additional information for
Nuveen Credit Income Fund and Nuveen Strategic Income Fund, the
statement of additional information for Nuveen Flexible
Income Fund and Nuveen Preferred Securities and Income Fund and the
statement of additional information for Nuveen Floating Rate
Income Fund and Nuveen High Yield Income Fund, each incorporated by reference
into this prospectus, contain detailed information on the policies and operation
of the Funds included in this prospectus. Additional information about the
Funds' investments is available in the annual and semi-annual reports to
shareholders. In the Funds' annual report, you will find a discussion of the
market conditions and investment strategies that significantly affected the
Funds' performance during their last fiscal year.
The
Funds' most recent statement of additional information, annual and semi-annual
reports and certain other information are available, free of charge, by calling
Nuveen Funds at (800) 257-8787, on the Funds' website at www.nuveen.com, or
through your financial advisor. Shareholders may call the toll free number above
with any inquiries.
You
may also obtain this and other Fund information directly from the Securities and
Exchange Commission (“SEC”).
Reports and other information about the Funds are available on the EDGAR
Database on the SEC’s website at http://www.sec.gov. You may also request Fund
information by sending an e-mail request to [email protected]. The SEC may
charge a copying fee for this information.
Household
Mailings
To
lower costs and eliminate duplicate documents sent to your home, your Fund may
mail only one copy of its summary prospectus, prospectus supplements, annual and
semi-annual reports, or any other required documents to your household,
even if more than one shareholder lives there. If you would prefer to continue
receiving your own copy of any of these documents, you may call your Fund
toll-free at (800) 257-8787.
Nuveen
Credit Income Fund and Nuveen Strategic Income Fund are series of Nuveen
Investment Funds, Inc., whose Investment Company Act file number is 811-05309.
Nuveen Floating Rate Income Fund and Nuveen High Yield Income Fund are series of
Nuveen Investment Trust III, whose Investment Company Act file number is
811-09037. Nuveen Flexible Income Fund and Nuveen Preferred Securities and
Income Fund are series of Nuveen Investment Trust V, whose Investment Company
Act file number is 811-21979.
Distributed
by
Nuveen
Securities, LLC
333
West Wacker Drive
Chicago,
Illinois 60606
(800)
257-8787
www.nuveen.com