UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number  

811-22699

Nuveen Preferred and Income Term Fund

 

(Exact name of registrant as specified in charter)

Nuveen Investments

333 West Wacker Drive, Chicago, IL 60606

 

(Address of principal executive offices)  (Zip code)

Gifford R. Zimmerman

Nuveen Investments

333 West Wacker Drive, Chicago, IL 60606

 

(Name and address of agent for service)

Registrant’s telephone number, including area code:   (312) 917-7700                    

Date of fiscal year end:   July 31                       

Date of reporting period:   January 31, 2020                    

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

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


ITEM 1. REPORTS TO STOCKHOLDERS.


LOGO

 

Closed-End Funds

 

31 January 2020

 

Nuveen Closed-End Funds

 

JPC    Nuveen Preferred & Income Opportunities Fund
JPI    Nuveen Preferred and Income Term Fund
JPS    Nuveen Preferred & Income Securities Fund
JPT    Nuveen Preferred and Income 2022 Term Fund

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website (www.nuveen.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting the financial intermediary (such as a broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.

You may elect to receive all future shareholder reports in paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, (i) by calling 800-257-8787 and selecting option #2 or (ii) by logging into your Investor Center account at www.computershare.com/investor and clicking on “Communication Preferences.” Your election to receive reports in paper will apply to all funds held in your account with your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment companies.

 

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LOGO


Table of Contents

 

Chair’s Letter to Shareholders

     4  

Portfolio Managers’ Comments

     5  

Fund Leverage

     14  

Common Share Information

     16  

Risk Considerations and Investment Policy Updates

     18  

Performance Overview and Holding Summaries

     20  

Portfolios of Investments

     28  

Statement of Assets and Liabilities

     54  

Statement of Operations

     55  

Statement of Changes in Net Assets

     56  

Statement of Cash Flows

     58  

Financial Highlights

     60  

Notes to Financial Statements

     64  

Additional Fund Information

     78  

Glossary of Terms Used in this Report

     79  

Reinvest Automatically, Easily and Conveniently

     82  

 

3


Chair’s Letter to Shareholders

 

LOGO

Dear Shareholders,

The COVID-19 crisis is taking an unprecedented toll on our health, societies, economies and financial markets. The extreme social distancing efforts needed to contain the coronavirus are causing a severe contraction in economic activity and amplifying market volatility, as global supply chains and consumer and business demand remain significantly disrupted. However, the full economic impact remains to be seen. The number of confirmed cases is still accelerating in the U.S. and many parts of the world, and previous epidemics offer few parallels to today’s situation. The recent spike in market volatility reflects this uncertainty, and we expect that large swings in both directions are likely to continue until there is more clarity.

While we do not want to understate the dampening effect on the global economy, we also note that markets occasionally overreact. Differentiating short-term interruptions from the longer-lasting implications to the economy may provide opportunities. Some areas of the global economy were already on the mend prior to the coronavirus epidemic. Momentum could pick up again as factories come back online and consumer demand resumes once the virus is under control and temporary bans on movement and travel are lifted. Central banks and governments around the world have announced economic stimulus measures. In the U.S., the Federal Reserve has cut its benchmark interest rate to near zero and reintroduced programs that helped revive the U.S. economy after the 2008 financial crisis. The U.S. government has approved more than $100 billion in emergency spending and relief and is set to deliver a trillion-dollar package to further aid workers and businesses.

In the meantime, patience and a long-term perspective are key for investors. When market fluctuations are the leading headlines day after day, it’s tempting to do something. However, your long-term goals can’t be met with short-term thinking. We encourage you to talk to your financial advisor, who can review your time horizon, risk tolerance and investment goals. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.

Sincerely,

 

LOGO

Terence J. Toth

Chair of the Board

March 24, 2020

 

 

4


Portfolio Managers’ Comments

 

Nuveen Preferred & Income Opportunities Fund (JPC)

Nuveen Preferred and Income Term Fund (JPI)

Nuveen Preferred & Income Securities Fund (JPS)

Nuveen Preferred and Income 2022 Term Fund (JPT)

Nuveen Asset Management, LLC (NAM) and NWQ Investment Management Company, LLC (NWQ), both affiliates of Nuveen Fund Advisors, LLC, the Funds’ investment adviser, are sub-advisers for the Nuveen Preferred & Income Opportunities Fund (JPC). NAM and NWQ each manage approximately half of the Fund’s investment portfolio. Douglas Baker, CFA and Brenda Langenfeld, CFA, are the portfolio managers for the NAM team. The NWQ income-oriented investment team is led by Thomas J. Ray, CFA and Susi Budiman, CFA. The Nuveen Preferred and Income Term Fund (JPI) features management by NAM. Douglas Baker, CFA, and Brenda Langenfeld, CFA, have served as the Fund’s portfolio managers since its inception. The Nuveen Preferred & Income Securities Fund (JPS) is sub-advised by a team of specialists at Spectrum Asset Management, Inc. (Spectrum), a wholly owned subsidiary of Principal Global Investors Holding Company (U.S.), LLC. Mark Lieb and Phil Jacoby lead the team. The Nuveen Preferred and Income 2022 Term Fund (JPT) features management by NAM. Douglas Baker, CFA, and Brenda Langenfeld, CFA, have served as the Fund’s portfolio managers since its inception.

Here the team discusses their management strategies and the performance of the Funds for the six-month reporting period ended January 31, 2020.

What key strategies were used to manage the Funds during this six-month reporting period ended January 31, 2020 and how did these strategies influence performance?

Nuveen Preferred & Income Opportunities Fund (JPC)

The table in the Performance Overview and Holding Summaries section of this report provides total return performance for the Fund for the six-month, one-year, five-year and ten-year periods ended January 31, 2020. For the six-month reporting period ended January 31, 2020, the Fund’s common shares at net asset value (NAV) outperformed the ICE BofA U.S. All Capital Securities Index and the JPC Blended Benchmark.

JPC seeks to provide high current income and secondarily, total return, by investing at least 80% of its managed assets in preferred securities and contingent capital securities (sometimes referred to as “CoCos”), and permitting it to invest

 

 

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.

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

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings, while BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.

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

 

5


Portfolio Managers’ Comments (continued)

 

up to 20% opportunistically over the market cycle in other types of securities, primarily income oriented securities such as corporate and taxable municipal debt and common equity.

JPC is managed by two experienced portfolio teams with distinctive, complementary approaches to the preferred market, each managing its own “sleeve” of the portfolio. NAM employs a debt-oriented approach that combines top down relative value analysis of industry sectors with fundamental credit analysis. NWQ’s investment process identifies undervalued securities within a company’s capital structure that offer the most attractive risk/reward potential. This multi-team approach gives investors access to a broader investment universe with greater diversification potential.

Nuveen Asset Management (NAM)

For the portion of the Fund managed by NAM, the Fund seeks to achieve its investment objective of providing a high level of current income and total return by investing in preferred securities and other income producing securities, which include, but are not limited to, contingent capital securities (aka, CoCos). The Fund seeks to benefit from strong credit fundamentals across the largest sectors within the issuer base, as well as the category’s healthy yield level. In addition, NAM will actively manage its sleeve to allocate both interest rate and credit risk consistent with its outlook for the broader financial markets, as well as to capitalize on inefficiencies that often arise between the $25 par retail and the $1,000 par institutional sides of the market. The Fund’s strategy has a bias toward highly regulated sectors, such banks, insurance companies and utilities, with the intent to benefit from the added security of regulatory oversight.

NAM employs a credit-based investment approach, using a bottom-up approach that includes fundamental credit research, security structure selection, and option adjusted spread (OAS) analysis, while also incorporating a top-down process to position the portfolio in a manner that reflects the investment team’s overall macro-economic outlook. The process begins with identifying the primary investable universe of $1,000 par preferred, $25 par preferred, and CoCo securities. In an effort to capitalize on the inefficiencies between different investor bases within this universe, NAM tactically and strategically shifts capital between the various segments of the market. Periods of volatility may drive material differences in valuations between the $25 par preferred, $1,000 par preferred, and CoCo markets. This divergence is often related to differences in how retail and institutional investors measure and price risk, as well as differences in retail and institutional investors’ ability to source substitute investments. In addition, technical factors such as new issue supply or redemption activity may also influence the relative valuations between the $25 par preferred, $1,000 par preferred market and CoCo markets. During the reporting period, technical factors played a material role in both absolute and relative performance.

During the reporting period, the Blended Benchmark Index for the sleeve managed by NAM, which represents the combined preferred securities and CoCos markets, returned 6.30%. This figure fell between both comparable financial senior debt and financial equities. NAM typically expects the Blended Benchmark Index to perform between these two categories given the hybrid nature of its constituent securities. While investment performance was positive across broad categories within our market, performance varied. For example, CoCos outperformed all other components of the market. While $1,000 par preferreds underperformed CoCos, they outperformed $25 par preferreds, which lagged all other broad categories within the investable universe.

Looking more closely at asset class level performance, the positive absolute returns were broadly due to a combination of a rally in U.S. treasury rates and credit spread compression, as defined by OAS. The Federal Reserve (Fed) cut interest rates on three occasions in 2019 in response to the global economic downshift and trade-related uncertainties in a benign inflation environment. U.S. Treasury yields declined in response to the Fed cuts, illustrated by a yield decrease of 51 basis points on the U.S. 10-year Treasury, which drove prices higher. Within the Blended Benchmark Index, OAS compressed disproportionately more for the CoCo segment of our universe. The CoCo segment’s outperformance was primarily due to United Kingdom election results and subsequent Brexit passage in late January 2020, eliminating some uncertainty surrounding Brexit and its possible carryover issues to other European countries. Meanwhile, the domestic

 

6


 

$1,000 par market experienced modest spread compression as a favorable supply technical bolstered that side of the market. Even before the start of this reporting period, most U.S. banks already had issued enough preferreds to meet, or even slightly exceed, their Additional Tier 1 regulatory capital requirements. As a result, NAM had expected that net new issue supply out of the U.S. bank sector would be relatively flat for the foreseeable future. In the $25 par segment of the universe, NAM witnessed a moderate amount of new issuance, which did put some pressure on valuations, thus the reason for its relative underperformance during the reporting period.

Importantly, the fundamental credit story of NAM’s largest sector, the bank sector, continued to improve during the reporting period. During 2018, and for the first time ever, the six largest U.S. banks generated aggregate profits exceeding $100 billion for a calendar year. The trend continued in 2019 where those banks posted approximately $120 billion in net income, slightly higher than that of 2018. In addition to recent record profitability, bank balance sheet metrics continued to display incredible strength. 2019 U.S. bank stress tests again validated the resiliency of U.S. bank balance sheets as the sector was subject to conditions worse than the 2008 - 2009 Great Financial Crisis itself. Like last year, this year’s stress test results were so convincing that even the sector’s toughest critic and regulator, the Fed, allowed the banks once again to increase the amount of capital returned to common shareholders via both higher dividends and additional share buybacks.

NAM incorporated several active themes relative to the Blended Benchmark Index during the reporting period, including an underweight to CoCos and a corresponding overweight to domestic issuers, an overweight to the $1,000 par side of the market and an overweight to securities that have coupons with reset features (floating rate, fixed-to-floating rate, fixed-to-fixed rate).

During the reporting period, the underweight to CoCos detracted modestly from performance relative to the Blended Benchmark Index, as CoCos outperformed during the reporting period. As of January 31, 2020, the Fund had an allocation of approximately 32% to CoCos, well below the 40% allocation within the Blended Benchmark Index. The average OAS for the CoCos segment of the Blended Benchmark tightened approximately 80 basis points, significantly more than the preferred securities segment of NAM’s universe, which was essentially flat. In December 2019, Boris Johnson won the United Kingdom election which paved the way for the United Kingdom to officially leave the European Union on January 31, 2020. This provided the market with some much needed clarity on Brexit. United Kingdom CoCos rallied on the news as well as their European banking counterparts, which moved in sympathy with United Kingdom banks.

Within the investable universe, $25 par preferred securities on average underperformed $1,000 par preferred securities. Given the underperformance of the $25 par preferred retail side of the market during the reporting period, NAM’s underweight to those structures was accretive to the Fund’s relative performance. As has been the case for some time, NAM maintained an overweight to $1,000 par securities for two primary reasons, relative value and interest rate risk management. First, with respect to relative value, the $1,000 par side of the market continues to be significantly cheaper than the $25 par side of the market on an OAS basis. As previously mentioned, new issue supply within the $25 par side of the market pressured valuations, which resulted in its underperformance. Meanwhile, and also previously mentioned, the $1,000 par segment of our universe experienced minimal new issuance and this supply technical helped the segment to outperform.

With respect to managing interest rate risk, NAM’s underweight to the $25 par preferred securities was due to NAM’s desire for greater exposure to securities that have coupons with reset features, like floating rate coupons, fixed-to-floating rate coupons and fixed-to-fixed rate coupons. These structures are more common on the institutional $1,000 par preferred side of the market and help to mitigate duration and duration extension risk during a rising interest rate environment. Duration extension can be a significant risk for callable securities with fixed-rate coupons. As of January 31, 2020, the Fund had about 91% of its assets invested in securities that have coupons with reset features, compared to approximately 74% within the Blended Benchmark Index.

 

7


Portfolio Managers’ Comments (continued)

 

Fixed rate coupon structures meaningfully underperformed non-fixed rate coupon securities during the reporting period. In NAM’s opinion, underperformance of the fixed rate coupon structures was due to an ancillary effect from the underperformance of $25 par preferred securities, as a vast majority of that universe is indeed comprised of fixed rate coupon structures.

The Fund used short interest rate futures during the reporting period to manage its exposure to various points along the yield curve, with a net effect of decreasing the Fund’s overall interest rate sensitivity. During the reporting period, the interest rate futures had a negligible impact on overall Fund performance.

NWQ

For the portion of the Fund managed by NWQ, NWQ seeks to achieve high income and a measure of capital appreciation. While the Fund’s investments are primarily preferred securities, a portion of the Fund allows the flexibility to invest across the capital structure in any type of debt, preferred or equity securities offered by a particular company. The portfolio management team then evaluates all available investment choices within a selected company’s capital structure to determine the portfolio investment that may offer the most favorable risk-adjusted return potential. The Fund’s portfolio is constructed with an emphasis on seeking a sustainable level of income and an overall analysis for downside risk management.

During the reporting period, NWQ’s preferred, high yield bond, equity and investment grade bond holdings contributed to performance, while the Fund’s preferred holdings were the top performers for the reporting period on an absolute basis. Those industries that contributed to the Fund’s performance included NWQ’s holdings in utilities, insurance and industrials, while the Fund’s banking and financials’ holdings were the largest detractors on an absolute basis.

During the reporting period, several individual holdings contributed to performance, including the L Brands Inc. The bonds moved higher during the reporting period as the continued bifurcation of performance between Victoria Secret and Bath & Body Works prompted suggestions that the business be split, after rumors that the company held preliminary discussions on strategic alternatives for the brands. This could prompt management to address the debt load depending on how the transaction, if any, will be structured. In addition, The Southern Co. mandatory convertible preferred contributed to performance. The underlying Southern Co. common stock rallied on progress in the Vogtle nuclear project and a favorable rate hike for its biggest subsidiary, Georgia Power. Lastly, Sempra Energy convertible preferred stock outperformed as the underlying Sempra common stock moved higher on better than expected earnings. Furthermore, recent developments at Sempra including the recent Cameron refinancing, South America asset sales, favorable rate case and revised liquefied natural gas (LNG) financing expectations all point to improved outlook for Sempra’s already diversified portfolio of assets.

Several holdings detracted from absolute performance, including the preferred stock of CenterPoint Energy Inc. Their preferred stock shares fell sharply after the Public Utilities Commission of Texas (PUCT) discussion of CenterPoint Energy’s outstanding Houston electric rate case indicated a lower than expected return on equity. Investors expected that there would be potential significant equity needs if the final decision is in line with what the PUCT discussed. The Fund no longer holds the preferred stock of CenterPoint Energy. Also detracting from performance was Stifel Financial Corp preferred stock. Cost pressure at Stifel has been intense as advisor count has stayed almost flat. Net interest revenue is expected to dip due to Fed rate cuts. The Fund no longer holds Stifel. Lastly, the notes of Apollo Investment Corp detracted from performance. The Apollo notes short duration detracted from performance. In addition, the issuer redeemed the notes during the reporting period.

 

8


 

Nuveen Preferred and Income Term Fund (JPI)

The table in the Performance Overview and Holding Summaries section of this report provides total return performance for the Fund for the six-month, one-year, five-year and since inception periods ended January 31, 2020. For the six-month reporting period ended January 31, 2020, the Fund’s common shares at net asset value (NAV) outperformed the ICE BofA U.S. All Capital Securities Index and the JPI Blended Benchmark Index.

The Fund seeks to achieve its investment objective of providing a high level of current income and total return by investing in preferred securities and other income producing securities, which include, but are not limited to, contingent capital securities (CoCos). The Fund seeks to benefit from strong credit fundamentals across the asset class’ largest sectors, as well as the category’s healthy yield. In addition, the management team will actively allocate to both interest rate and credit risk consistent with its outlook for the broader financial markets, while seeking to capitalize on inefficiencies that often arise between the $25 par retail and the $1,000 par institutional sides of the market. The Fund’s strategy has a bias toward highly regulated sectors, such banks, insurance companies and utilities, with the intent to benefit from the added security of regulatory oversight.

NAM employs a credit-based investment approach, using a bottom-up approach that includes fundamental credit research, security structure selection, and option adjusted spread (OAS) analysis, while also incorporating a top-down process to position the portfolio in a manner that reflects the investment team’s overall macro-economic outlook. The process begins with identifying the primary investable universe of $1,000 par preferred, $25 par preferred, and CoCo securities. In an effort to capitalize on the inefficiencies between different investor bases within this universe, NAM tactically and strategically shifts capital between the various segments of the market. Periods of volatility may drive material differences in valuations between the $25 par preferred, $1,000 par preferred, and CoCo markets. This divergence is often related to differences in how retail and institutional investors measure and price risk, as well as differences in retail and institutional investors’ ability to source substitute investments. In addition, technical factors such as new issue supply or redemption activity may also influence the relative valuations between the $25 par preferred, $1,000 par preferred market and CoCo markets. During the reporting period, technical factors played a material role in both absolute and relative performance.

During the reporting period, the Blended Benchmark Index, which represents the combined preferred securities and CoCos markets, returned 6.30%. This figure fell between both comparable financial senior debt and financial equities. NAM typically expects the Blended Benchmark Index to perform between these two categories given the hybrid nature of its constituent securities. While investment performance was positive across broad categories within our market, performance varied. For example, CoCos outperformed all other components of the market. While $1,000 par preferreds underperformed CoCos, they outperformed $25 par preferreds, which lagged all other broad categories within the investable universe.

Looking more closely at asset class level performance, the positive absolute returns were broadly due to a combination of a rally in U.S. treasury rates and credit spread compression, as defined by OAS. The Federal Reserve (Fed) cut interest rates on three occasions in 2019 in response to the global economic downshift and trade-related uncertainties in a benign inflation environment. U.S. Treasury yields declined in response to the Fed cuts, illustrated by a yield decrease of 51 basis points on the U.S. 10-year Treasury, which drove prices higher. Within the Blended Benchmark Index, OAS compressed disproportionately more for the CoCo segment of our universe. The CoCo segment’s outperformance was primarily due to United Kingdom election results and subsequent Brexit passage in late January 2020, eliminating some uncertainty surrounding Brexit and its possible carryover issues to other European countries. Meanwhile, the domestic $1,000 par market experienced modest spread compression as a favorable supply technical bolstered that side of the market. Even before the start of this reporting period, most U.S. banks already had issued enough preferreds to meet, or even slightly exceed, their Additional Tier 1 regulatory capital requirements. As a result, NAM had expected that net new issue supply out of the U.S. bank sector would be relatively flat for the near future. In the $25 par segment of the

 

9


Portfolio Managers’ Comments (continued)

 

universe, NAM witnessed a moderate amount of new issuance, which did put some pressure on valuations, thus the reason for its relative underperformance during the reporting period.

Importantly, the fundamental credit story of NAM’s largest sector, the bank sector, continued to improve during the reporting period. During 2018, and for the first time ever, the six largest U.S. banks generated aggregate profits exceeding $100 billion for a calendar year. The trend continued in 2019 where those banks posted approximately $120 billion in net income, slightly higher than that of 2018. In addition to recent record profitability, bank balance sheet metrics continued to display incredible strength. 2019 U.S. bank stress tests again validated the resiliency of U.S. bank balance sheets as the sector was subject to conditions worse than the 2008 - 2009 Great Financial Crisis itself. Like last year, this year’s stress test results were so convincing that even the sector’s toughest critic and regulator, the Fed, allowed the banks once again to increase the amount of capital returned to common shareholders via both higher dividends and additional share buybacks.

NAM incorporated several active themes relative to the Blended Benchmark Index during the reporting period, including an underweight to CoCos and a corresponding overweight to domestic issuers, an overweight to the $1,000 par side of the market, and an overweight to securities that have coupons with reset features (floating rate, fixed-to-floating rate, fixed-to-fixed rate).

During the reporting period, the underweight to CoCos detracted modestly from performance relative to the Blended Benchmark Index, as CoCos outperformed during the reporting period. As of January 31, 2020, the Fund had an allocation of approximately 31% to CoCos, well below the 40% allocation within the Blended Benchmark Index. The average OAS for the CoCos segment of the Blended Benchmark tightened approximately 80 basis points, significantly more than the preferred securities segment of our universe which was essentially flat. In December 2019, Boris Johnson won the United Kingdom election, which paved the way for the United Kingdom to officially leave the European Union on January 31, 2020. This provided the market with some much needed clarity on Brexit. United Kingdom CoCos rallied on the news as well as their European banking counterparts, which moved in sympathy with United Kingdom banks.

Within the investable universe, $25 par preferred securities on average underperformed $1,000 par preferred securities. Given the underperformance of the $25 par preferred retail side of the market during the reporting period, NAM’s underweight to those structures was accretive to the Fund’s relative performance. As has been the case for some time, NAM maintained an overweight to $1,000 par securities for two primary reasons, relative value and interest rate risk management. First, with respect to relative value, the $1,000 par side of the market continues to be significantly cheaper than the $25 par side of the market on an OAS basis. As previously mentioned, new issue supply within the $25 par side of the market pressured valuations which resulted in its underperformance. Meanwhile and also previously mentioned, the $1000 par segment of NAM’s universe experienced minimal new issuance and this supply technical helped the segment to outperform.

With respect to managing interest rate risk, NAM’s underweight to the $25 par preferred securities was due to NAM’s desire for greater exposure to securities that have coupons with reset features, like floating rate coupons, fixed-to-floating rate coupons and fixed-to-fixed rate coupons. These structures are more common on the institutional $1,000 par preferred side of the market and help to mitigate duration and duration extension risk during a rising interest rate environment. Duration extension can be a significant risk for callable securities with fixed-rate coupons. As of January 31, 2020, the Fund had about 90% of its assets invested in securities that have coupons with reset features, compared to approximately 74% within the Blended Benchmark Index.

Fixed rate coupon structures meaningfully underperformed non-fixed rate coupon securities during the reporting period. In NAM’s opinion, underperformance of the fixed rate coupon structures was due to an ancillary effect from the underperformance of $25 par preferred securities, as a vast majority of that universe is indeed comprised of fixed rate coupon structures.

 

10


 

The Fund used short interest rate futures during the reporting period to manage its exposure to various points along the yield curve, with a net effect of decreasing the Fund’s overall interest rate sensitivity. During the reporting period, the interest rate futures had a negligible impact on overall Fund performance.

Nuveen Preferred & Income Securities Fund (JPS)

The table in the Performance Overview and Holding Summaries section of this report provides total return performance for the Fund for the six-month, one-year, five-year and ten-year periods ended January 31, 2020. For the six-month reporting period ended January 31, 2020, the Fund’s common shares at net asset value (NAV) outperformed the ICE BofA U.S. All Capital Securities Index and the JPS Blended Benchmark.

The investment objective of the Fund is to seek high current income consistent with capital preservation with a secondary objective to enhance portfolio value relative to the broad market for preferred securities. Under normal market conditions, the Fund seeks to invest at least 80% of its net assets in preferred and other income-producing securities, including hybrid securities such as contingent capital securities (CoCos). At least 50% is invested in securities that are rated investment grade

The basic strategy of the Fund calls for investing in junior subordinated, high income securities of companies with investment grade ratings. Spectrum has tactical exposure to both institutional sectors of the junior subordinated capital securities, which includes both preferred and CoCos.

The Federal Reserve (Fed) announced additional rate cuts in July, September and October 2019, but has been on hold since then. The big news for the market was in September 2019 when funding markets faced a spike in short-term rates which forced the Fed to intervene in the repurchase (repo) market after two years of automatic balance sheet run offs or reductions. This sent equities soaring and spreads tighter. The market systems had become dependent on the trillions of cash that had been injected over the course of the past ten years. More recently, the Fed had allowed its balance sheet to run-off and in the process, had taken back massive amounts of cash that served the purpose of bidding up risk assets and bidding down yields to perpetuate the economic expansion. This has been ongoing in Europe and by October 2019, the Fed announced its third cut of 2019, which was a jolt for the equity markets and impetus for the yield curve to steepen a bit helping to ease deflation concerns. Fed policy combined with already active qualitative easing QE in Europe was the primary driver and the most significant factor of positive performance during the reporting period. 

During the reporting period, the Fund was tactically 17% overweight the $1,000 par institutional sector of the preferred securities market and 17% underweight the retail $25 par sector and was equally weighted to the CoCo sector compared to the benchmark, the ICE BofA U.S. All Capital Securities Index. The institutional preferred securities sector traded in a range of 154 basis points and 334 basis points wider on spread compared to the retail $25 par sector, which explains the primary reason for being overweight the higher yielding institutional sector. In general, the CoCo sector was cheaper than the institutional sector, which allows the Fund to earn higher income in the sector compared to preferred securities and is the primary reason for the Fund’s equal weight.

Spreads tightened significantly during the reporting period, so the sectors with the highest duration outperformed. Overall, the Fund’s 63% allocation to the middle of the yield curve the 3-10 year sector contributed about 70% of the total return for the reporting period. The Fund’s 4.1 year modified duration was modestly longer compared to the Fund’s combined benchmark.

All of the Fund’s security sectors contributed positively during the reporting period. The top three performing sectors were the $25 par dividend received deduction (DRD), CoCos and utility hybrids. There were few (if any) constraining factors during the reporting period. The bottom performing sectors, though still positive, were cash, corporate hybrids and subordinated debt.

 

 

11


Portfolio Managers’ Comments (continued)

 

Nuveen Preferred and Income 2022 Term Fund (JPT)

The table in the Performance Overview and Holding Summaries section of this report provides total return performance for the Fund for the six-month, one-year and since inception periods ended January 31, 2020. For the six-month reporting period ended January 31, 2020, the Fund’s common shares at net asset value (NAV) outperformed the ICE BofA U.S. All Capital Securities Index.

The Fund seeks to achieve its investment objective of providing a high level of current income and total return by investing in preferred securities and other income producing securities. The Fund’s portfolio is actively managed, seeking to capitalize on strong credit fundamentals and intense regulatory oversight across our largest sectors, the category’s healthy yield level, and inefficiencies that often evolve between the $25 par retail and the $1,000 par institutional sides of the market. The Fund’s strategy has a bias toward highly regulated industries, like utilities, banks and insurance companies, with a current emphasis broadly on financial services companies. The Fund does not invest in contingent capital securities (otherwise known as CoCos).

NAM employs a credit-based investment approach, using a bottom-up approach that includes fundamental credit research, security structure selection and option adjusted spread (OAS) analysis, while also incorporating a top-down process to position the portfolio in a manner that reflects the investment team’s overall macro-economic outlook. The process begins with identifying the primary investable universe of $1,000 par preferred and $25 par preferred securities. In an effort to capitalize on the inefficiencies between different investor bases within this universe, NAM tactically and strategically shifts capital between the various segments of the market. Periods of volatility may drive material differences in valuations between the $1,000 par preferred and $25 par preferred markets. This divergence is often related to differences in how retail and institutional investors measure and price risk, as well as differences in retail and institutional investors’ ability to source substitute investments. In addition, technical factors such as new issue supply or redemption activity may also influence the relative valuations between the $1,000 par preferred and the $25 par preferred markets.

Within JPT, NAM incorporated several prominent active themes within the Fund relative to its benchmark during the reporting period, of particular note an overweight to the $1,000 par versus $25 par side of the market, and an overweight to securities that have coupons with reset features (floating rate, fixed-to-floating rate, fixed-to-fixed rate).

Given the underperformance of the $25 par preferred side of the market during the reporting period, NAM’s overweight to $1,000 par preferred structures was accretive to the Fund’s relative results. As has been the case for several quarters, NAM maintained an overweight to $1,000 par securities for two primary reasons, relative value and interest rate risk management.

First, from a relative value perspective, the $1,000 par side of the market continued to be significantly cheaper than the $25 par side of the market on an OAS basis. In general, OAS for $25 par preferred securities has been driven lower by retail investors’ disproportionate bias for income-generating investment solutions, exacerbated by a prolonged period of low interest rates. Within the preferred securities universe, the $25 par preferred side of the market is best positioned to meet this retail demand given the small denomination and the ease of sourcing these securities as most are exchange-traded. During the reporting period, new issue supply within the $25 par side of the market did pressure valuations which resulted in its underperformance relative to the other segments of NAM’s universe. Because of this, the relative underweight was accretive to performance during the six-month reporting period. Despite the underperformance, $25 par securities as of the end of the reporting period were still less attractive from a credit spread perspective.

Second, with respect to interest rate risk, NAM’s overweight to $1,000 par securities allows NAM to gain greater exposure to securities that have coupons with reset features, like floating rate coupons, fixed-to-floating rate coupons and fixed-to-fixed rate coupons. These structures are more common on the institutional $1,000 par side of the market

 

12


 

and help to mitigate duration and duration extension risk during a rising interest rate environment. Duration extension can be a significant risk for callable securities with fixed-rate coupons.

As of January 31, 2020, the Fund had about 83% of its assets invested in securities that have coupons with reset features, compared to approximately 60% within the ICE BofA U.S. All Capital Securities Index. Interest rates dropped considerably during the reporting period, as evidenced by the 10 year U.S. Treasury yield moving from 2.01% to 1.51%. All else equal, fixed rate coupon structures would typically outperform in this rate environment. Contrary to expectations, securities that have coupons with reset features outperformed their fixed rate counterparts. NAM believes this was due to a positive supply technical where issuance in $1,000 par space was muted during the reporting period that increased demand for those securities.

The Fund used short interest rate futures during the reporting period to manage its exposure to various points along the yield curve, with a net effect of decreasing the Fund’s overall interest rate sensitivity. During the reporting period, the interest rate futures had a negligible impact on overall Fund performance.

An Update on COVID-19 Coronavirus

The COVID-19 coronavirus pandemic has delivered an exogenous shock to the global economy. Containment efforts around the world have halted business and manufacturing operations and restricted people’s movement and travel. The disruptions to global supply chains, consumer demand, business investment and the global financial system are just beginning to be seen.

Although the virus was detected in China as early as December 2019, markets didn’t fully acknowledge the risks until February 2020, when large outbreaks were reported outside of China. Global stock markets sold off severely, reaching a bear market (a 20% drop from the previous high) within three weeks, the fastest bear market decline in history. Demand for safe-haven assets, along with mounting recession fears, drove the yield on the 10-year U.S. Treasury note below 1% in March, an all-time low. Additionally, oil prices collapsed to an 18-year low in March on supply glut concerns, as shutdowns across the global economy curb oil demand while Saudi Arabia and Russia are flooding the market with cheap oil in a price war.

Central banks and governments have responded with liquidity injections to ease the strain on financial systems and stimulus measures to buffer the shock to businesses and consumers. But markets will likely remain volatile until the health crisis itself is under control (via fewer new cases, slower spread and/or verified treatments). There are still many unknowns and new information is incoming daily, compounding the difficulty of modeling outcomes for epidemiologists and economists alike.

Nuveen is monitoring the situation carefully and continuously refining our views. Our portfolio management teams remain attuned to opportunities to seek risk-adjusted returns through all market environments.

 

13


Fund Leverage

 

IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE

One important factor impacting the returns of the Funds’ common shares relative to their comparative benchmarks was the Funds’ use of leverage through bank borrowings as well as the use of reverse repurchase agreements for JPC, JPI and JPS. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income. The opportunity arises when short-term rates that a Fund pays on its leveraging instruments are lower than the interest the Fund earns on its portfolio securities that it has bought with the proceeds of that leverage. This has been particularly true in the recent market environment where short-term rates have been low by historical standards.

However, use of leverage can expose Fund common shares to additional price volatility. When a Fund uses leverage, the Fund’s common shares will experience a greater increase in their net asset value if the securities acquired through the use of leverage increase in value, but will also experience a correspondingly larger decline in their net asset value if the securities acquired through leverage decline in value, which will make the shares’ net asset value more volatile, and total return performance more variable, over time.

In addition, common share income in levered funds will typically decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease. In recent quarters, fund leverage expenses have generally tracked the overall movement of short-term tax-exempt interest rates. While fund leverage expenses are somewhat higher than their all-time lows after the 2007-2009 financial crisis, which has contributed to a reduction in common share net income and long-term total return potential, leverage nevertheless continues to provide the opportunity for incremental common share income. Management believes that the potential benefits from leverage continue to outweigh the associated increase in risk and volatility previously described.

The Funds’ use of leverage had a positive impact on total return performance during this reporting period. Subsequent to the close of the reporting period, the outbreak of the COVID-19 pandemic led to a significant downturn in global economies and capital markets. As security prices fell, each Fund’s use of leverage impacted total returns negatively. In response, the Funds have been taking steps to reduce risk by paying down leverage levels pursuant to their leverage risk management protocols, as summarized in “The Funds’ Leverage” section below.

JPC, JPI and JPS continued to use forward starting interest rate swap contracts to partially hedge the interest cost of leverage, which as mentioned previously, is through the use of bank borrowings. During this reporting period, these swap contracts had a negative impact to overall Fund total return performance.

As of January 31, 2020, the Funds’ percentages of leverage are shown in the accompanying table.

 

     JPC        JPI        JPS        JPT  

Effective Leverage*

    36.02        33.31        36.79        19.82

Regulatory Leverage*

    30.50        28.46        30.26        19.82
*

Effective leverage is a Fund’s effective economic leverage, and includes both regulatory leverage and the leverage effects of reverse repurchase agreements, certain derivative and other investments in a Fund’s portfolio that increase the Fund’s investment exposure. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of the Fund’s capital structure. A Fund, however, may from time to time borrow on a typically transient basis in connection with its day-to-day operations, primarily in connection with the need to settle portfolio trades. Such incidental borrowings are excluded from the calculation of a Fund’s effective leverage ratio. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.

 

14


 

THE FUNDS’ LEVERAGE

Bank Borrowings

As noted above, the Funds employ regulatory leverage through the use of bank borrowings. The Funds’ bank borrowing activities are as shown in the accompanying table. Paydowns reflect on-going leverage management activity that seeks to maintain each Fund’s leverage ratio within a specified internal operating range.

 

    Current Reporting Period           Subsequent to the Close of
the Reporting Period
 
Fund   Outstanding
Balance as of
August 1, 2019
    Draws     Paydowns     Outstanding
Balance as of
January 31, 2020
    Average Balance
Outstanding
           Draws     Paydowns     Outstanding
Balance as of
March 27, 2020
 

JPC

  $ 455,000,000     $ 22,000,000     $     —     $ 477,000,000     $ 465,315,217             $     $ (170,690,000   $ 306,310,000  

JPI

  $ 210,000,000     $ 25,000,000     $     $ 235,000,000     $ 218,804,348             $     $ (79,300,000   $ 155,700,000  

JPS

  $ 853,300,000     $ 55,000,000     $     $ 908,300,000     $ 859,876,087             $     $ (333,000,000   $ 575,300,000  

JPT

  $ 42,500,000     $     $     $ 42,500,000     $ 42,500,000             $ 3,000,000     $ (18,200,000   $ 27,300,000  

Refer to Notes to Financial Statements, Note 8 – Fund Leverage, Borrowings and Note 10 – Subsequent Events, Borrowing for further details.

Reverse Repurchase Agreements

As noted above, JPC, JPI and JPS used reverse repurchase agreements, in which the Fund sells to a counterparty a security that it holds with a contemporaneous agreement to repurchase the same security at an agreed-upon price and date. The Funds’ transactions in reverse repurchase agreements are as shown in the accompanying table. Sales reflect on-going leverage management activity that seeks to maintain each Fund’s leverage ratio within a specified internal operating range.

 

    Current Reporting Period           Subsequent to the Close of the Reporting Period  
Fund   Outstanding
Balance as of
August 1, 2019
    Sales     Purchases     Outstanding
Balance as of
January 31, 2020
    Average Balance
Outstanding
           Sales     Purchases     Outstanding
Balance as of
March 27, 2020
 
JPC   $ 135,000,000     $     —     $     $ 135,000,000     $ 135,000,000             $ 108,500,000     $ 23,500,000     $ 50,000,000  
JPI   $ 60,000,000     $     $     $ 60,000,000     $ 60,000,000             $ 35,000,000     $ 5,000,000     $ 30,000,000  
JPS   $ 260,000,000     $     —     $ 50,000,000     $ 310,000,000     $ 265,978,261             $ 117,000,000     $     —     $ 193,000,000  

Refer to Notes to Financial Statements, Note 8 – Fund Leverage, Reverse Repurchase Agreements and Note 10 – Subsequent Events, Reverse Repurchase Agreements for further details.

 

15


Common Share Information

 

COMMON SHARE DISTRIBUTION INFORMATION

The following information regarding the Funds’ distributions is current as of January 31, 2020. Each Fund’s distribution levels may vary over time based on each Fund’s investment activity and portfolio investment value changes.

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

 

    Per Common Share Amounts  
Monthly Distributions (Ex-Dividend Date)   JPC        JPI        JPS        JPT  

August 2019

  $ 0.0610        $ 0.1355        $ 0.0560        $ 0.1185  

September

    0.0610          0.1355          0.0560          0.1185  

October

    0.0610          0.1355          0.0560          0.1185  

November

    0.0610          0.1355          0.0560          0.1185  

December

    0.0610          0.1355          0.0560          0.1185  

January 2020

    0.0610          0.1355          0.0560          0.1185  

Total Distributions from Net Investment Income

  $ 0.3660        $ 0.8130        $ 0.3360        $ 0.7110  
                                          

Current Distribution Rate*

    7.00        6.25        6.59        5.69
*

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

Each Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. Distributions to shareholders are determined on a tax basis, which may differ from amounts recorded in the accounting records. In instances where the monthly dividend exceeds the earned net investment income, the Fund would report a negative undistributed net ordinary income. Refer to Note 6 – Income Tax Information for additional information regarding the amounts of undistributed net ordinary income and undistributed net long-term capital gains and the character of the actual distributions paid by the Fund during the period.

All monthly dividends paid by the Funds during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions is sourced or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders will be notified of those sources. For financial reporting purposes, the per share amounts of each Fund’s distributions for the reporting period are presented in this report’s Financial Highlights. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.

CHANGE IN METHOD OF PUBLISHING NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS

During November 2019, the Nuveen Closed-End Funds discontinued the practice of announcing Fund distribution amounts and timing via press release. Instead, information about the Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders are posted and can be found on Nuveen’s enhanced closed-end fund resource page, which is at www.nuveen.com/closed-end-fund-distributions, along with other Nuveen closed-end fund product updates. Shareholders can expect regular distribution information to be posted on www.nuveen.com on the first business day of each month. To ensure that our shareholders have timely access to the latest information, a subscribe function can be activated at this link here, or at this web page (www.nuveen.com/en-us/people/about-nuveen/for-the-media).

 

16


 

COMMON SHARE REPURCHASES

During August 2019, the Funds’ Board of Trustees reauthorized an open-market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding shares.

As of January 31, 2020, and since the inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their outstanding common shares as shown in the accompanying table.

 

     JPC        JPI        JPS        JPT  

Common shares cumulatively repurchased and retired

    2,826,100          0          38,000          0  

Common shares authorized for repurchase

    10,335,000          2,275,000          20,380,000          685,000  

During the current reporting period, the Funds did not repurchase any of their outstanding common shares.

OTHER COMMON SHARE INFORMATION

As of January 31, 2020, and during the current reporting period, the Funds’ common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.

 

     JPC        JPI        JPS        JPT  

Common share NAV

  $ 10.52        $ 25.95        $ 10.27        $ 25.16  

Common share price

  $ 10.45        $ 26.02        $ 10.20        $ 25.01  

Premium/(Discount) to NAV

    (0.67 )%         0.27        (0.68 )%         (0.60 )% 

6-month average premium/(discount) to NAV

    (1.42 )%         (0.89 )%         (0.67 )%         (0.24 )% 

 

17


Risk Considerations and Investment Policy Updates

 

Risk Considerations

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation.

Nuveen Preferred & Income Opportunities Fund (JPC)

Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure, and therefore are subject to greater credit risk. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Lower credit debt securities may be more likely to fail to make timely interest or principal payments. Leverage increases return volatility and magnifies the Fund’s potential return and its risks; there is no guarantee a fund’s leverage strategy will be successful. Certain types of preferred or debt securities with special loss absorption provisions, such as contingent capital securities (CoCos), may be or become so subordinated that they present risks equivalent to, or in some cases even greater than, the same company’s common stock. These loss absorption features work to the benefit of the security issuer, not the investor. These and other risk considerations such as concentration and foreign securities risk are described in more detail on the Fund’s web page at www.nuveen.com/JPC.

Nuveen Preferred and Income Term Fund (JPI)

Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure, and therefore are subject to greater credit risk. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Lower credit debt securities may be more likely to fail to make timely interest or principal payments. Leverage increases return volatility and magnifies the Fund’s potential return and its risks; there is no guarantee a fund’s leverage strategy will be successful. Certain types of preferred or debt securities with special loss absorption provisions, such as contingent capital securities (CoCos), may be or become so subordinated that they present risks equivalent to, or in some cases even greater than, the same company’s common stock. These loss absorption features work to the benefit of the security issuer, not the investor. For these and other risks, including the Fund’s limited term and concentration risk, see the Fund’s web page at www.nuveen.com/JPI.

Nuveen Preferred & Income Securities Fund (JPS)

Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure, and therefore are subject to greater credit risk. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Leverage increases return volatility and magnifies the Fund’s potential return and its risks; there is no guarantee a fund’s leverage strategy will be successful. Certain types of preferred or debt securities with special loss absorption provisions, such as contingent capital securities (CoCos), may be or become so subordinated that they present risks equivalent to, or in some cases even greater than, the same company’s common stock. These loss absorption features work to the benefit of the security issuer, not the investor. These and other risks such as concentration and foreign securities risk are described in more detail on the Fund’s web page at www.nuveen.com/JPS.

 

18


 

Nuveen Preferred and Income 2022 Term Fund (JPT)

Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure, and therefore are subject to greater credit risk. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Lower credit debt securities may be more likely to fail to make timely interest or principal payments. Leverage increases return volatility and magnifies the Fund’s potential return and its risks; there is no guarantee a fund’s leverage strategy will be successful. For these and other risks, including the Fund’s limited term and concentration risk, see the Fund’s web page at www.nuveen.com/JPT.

Investment Policy Updates

Change in Investment Policy

The Funds have recently adopted the following policy regarding limits to investments in illiquid securities:

While there are no such limits imposed by applicable regulations, certain Nuveen Closed-End Funds formerly had investment policies that placed limits on a Fund’s ability to invest in illiquid securities. All exchange-listed Nuveen Closed-End Funds now have no formal limit on their ability to invest in such illiquid securities, but each Fund’s portfolio management team will monitor such investments in the regular, overall management of the Fund’s portfolio securities.

 

19


JPC     

Nuveen Preferred & Income Opportunities Fund

Performance Overview and Holding Summaries as of January 31, 2020

 

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

Average Annual Total Returns as of January 31, 2020

 

       Cumulative        Average Annual  
        6-Month        1-Year        5-Year        10-Year  
JPC at Common Share NAV        7.49%          17.16%          7.84%          10.19%  
JPC at Common Share Price        9.29%          22.26%          10.23%          12.35%  
ICE BofA U.S. All Capital Securities Index        5.18%          13.93%          6.40%          8.19%  
JPC Blended Benchmark(1)        5.28%          13.59%          6.86%          7.56%  

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

Common Share Price Performance — Weekly Closing Price

 

LOGO

 

1.

The Blended Index consists of: 1) 50% of the return of the ICE BofA Preferred Securities Fixed Rate Index, 2) 30% of the return the ICE BofA U.S. All Capital Securities Index and 3) 20% of the return of the ICE BofA Contingent Capital Securities USD Hedged Index.

 

20


 

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

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.

 

Fund Allocation

(% of net assets)

 

$1,000 Par (or similar) Institutional Preferred     76.3%  
$25 Par (or similar) Retail Preferred     44.2%  
Contingent Capital Securities     26.8%  
Corporate Bonds     4.7%  
Convertible Preferred Securities     3.2%  
Common Stocks     0.3%  
Repurchase Agreements     0.9%  
Other Assets Less Liabilities     (0.1)%  

Net Assets Plus Borrowings and Reverse Repurchase Agreements

    156.3%  
Borrowings     (43.9)%  
Reverse Repurchase Agreements     (12.4)%  

Net Assets

    100%  

Portfolio Composition

(% of total investments)

 

Banks

    30.1%  

Diversified Financial Services

    15.1%  

Insurance

    13.1%  

Capital Markets

    10.8%  

Food Products

    5.0%  

Consumer Finance

    4.2%  

Electric Utilities

    2.8%  

Other

    18.3%  

Repurchase Agreements

    0.6%  

Total

    100%  

Country Allocation1

(% of total investments)

 

United States

    73.0%  

United Kingdom

    7.5%  

France

    4.2%  

Switzerland

    4.1%  

Canada

    2.5%  

Spain

    2.1%  

Australia

    1.7%  

Netherlands

    1.5%  

Ireland

    1.0%  

Italy

    0.9%  

Other

    1.5%  

Total

    100%  
 

 

Top Five Issuers

(% of total long-term
investments)

 

Citigroup Inc.     3.9%  
JPMorgan Chase & Company     3.8%  
Bank of America Corporation     3.2%  
Morgan Stanley     2.7%  
Wells Fargo & Company     2.7%  

Portfolio Credit Quality

(% of total long-term fixed-income investments)

 

A     0.6%  
BBB     51.8%  
BB or Lower     41.0%  
N/R (not rated)     6.6%  

Total

    100%  
 

 

1

Includes 1.1% (as a percentage of total investments) in emerging market countries.

 

21


JPI     

Nuveen Preferred and Income Term Fund

Performance Overview and Holding Summaries as of January 31, 2020

 

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

Average Annual Total Returns as of January 31, 2020

 

    Cumulative        Average Annual  
     6-Month        1-Year        5-Year        Since
Inception
 
JPI at Common Share NAV     8.61%          18.98%          8.40%          9.24%  
JPI at Common Share Price     10.73%          25.89%          10.30%          9.04%  
ICE BofA U.S. All Capital Securities Index     5.18%          13.93%          6.40%          7.48%  
JPI Blended Benchmark(1)     6.30%          14.87%          7.46%          6.75%  

Since inception returns are from 7/26/12. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

 

LOGO

 

1.

The Blended Index consists of: 1) 60% of the return of the ICE BofA U.S. All Capital Securities Index and 2) 40% of the return the ICE BofA Contingent Capital Index.

 

22


 

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

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.

 

Fund Allocation

(% of net assets)

 

$1,000 Par (or similar) Institutional Preferred     69.6%  
Contingent Capital Securities     45.7%  
$25 Par (or similar) Retail Preferred     34.0%  
Other Assets Less Liabilities     0.7%  

Net Assets Plus Borrowings and Reverse Repurchase Agreements

    150.0%  
Borrowings     (39.8)%  
Reverse Repurchase Agreements     (10.2)%  

Net Assets

    100%  

 

Portfolio Composition

(% of total investments)

 

Banks

    35.3%  

Diversified Financial Services

    17.3%  

Insurance

    13.4%  

Capital Markets

    12.2%  

Food Products

    4.6%  

Other

    17.2%  

Total

    100%  

Country Allocation1

(% of total investments)

 

United States

    58.8%  

United Kingdom

    11.1%  

France

    7.4%  

Switzerland

    7.3%  

Spain

    3.9%  

Australia

    3.1%  

Netherlands

    2.1%  

Ireland

    1.8%  

Italy

    1.6%  

Canada

    1.4%  

Other

    1.5%  

Total

    100%  
 

 

Top Five Issuers

(% of total long-term
investments)

 

JPMorgan Chase & Company     4.0%  
Credit Suisse Group AG     3.8%  
Citigroup Inc.     3.8%  
UBS Group AG     3.2%  
Credit Agricole SA     3.1%  

Portfolio Credit Quality

(% of total long-term fixed-income
investments)

 

A     0.8%  
BBB     54.2%  
BB or Lower     42.6%  
N/R (not rated)     2.4%  

Total

    100%  
 

 

1

Includes 0.7% (as a percentage of total investments) in emerging market countries.

 

23


JPS     

Nuveen Preferred & Income Securities Fund

Performance Overview and Holding Summaries as of January 31, 2020

 

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

Average Annual Total Returns as of January 31, 2020

 

       Cumulative        Average Annual  
        6-Month        1-Year        5-Year        10-Year  
JPS at Common Share NAV        7.91%          18.09%          8.24%          10.47%  
JPS at Common Share Price        7.74%          19.62%          9.67%          11.51%  
ICE BofA U.S. All Capital Securities Index        5.18%          13.93%          6.40%          7.14%  
JPS Blended Benchmark(1)        6.30%          14.87%          7.46%          8.10%  

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

Common Share Price Performance — Weekly Closing Price

 

LOGO

 

1.

The Blended Index consists of: 1) 60% of the return of the ICE BofA U.S. All Capital Securities Index and 2) 40% of the return the ICE BofA Contingent Capital Securities USD Hedged Index.

 

24


 

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

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.

 

Fund Allocation

(% of net assets)

 

$1,000 Par (or similar) Institutional Preferred     71.5%  
Contingent Capital Securities     62.1%  
$25 Par (or similar) Retail Preferred     17.7%  
Investment Companies     1.3%  
Convertible Preferred Securities     0.9%  
Corporate Bonds     0.9%  
Repurchase Agreements     2.7%  
Other Assets Less Liabilities     1.1%  

Net Assets Plus Borrowings and Reverse Repurchase Agreements

    158.2%  
Borrowings     (43.4)%  
Reverse Repurchase Agreements     (14.8)%  

Net Assets

    100%  

Portfolio Composition

(% of total investments)

 

Banks

    43.9%  

Insurance

    18.0%  

Diversified Financial Services

    11.8%  

Capital Markets

    9.5%  

Electric Utilities

    3.6%  

Other

    10.7%  
Investment Companies     0.8%  
Repurchase Agreements     1.7%  

Total

    100%  

Country Allocation

(% of total investments)

 

United States

    46.7%  

United Kingdom

    20.2%  

France

    10.6%  

Switzerland

    7.2%  

Canada

    2.9%  

Finland

    2.7%  

Australia

    2.6%  

Netherlands

    1.6%  

Sweden

    1.2%  

Norway

    1.0%  

Other

    3.3%  

Total

    100%  
 

 

Top Five Issuers

(% of total long-term
investments)

 

Barclays PLC

    4.3%  

BNP Paribas SA

    3.9%  

Credit Suisse

    3.5%  

Royal Bank of Scotland Group PLC

    3.5%  

JPMorgan Chase & Co

    3.5%  

Portfolio Credit Quality

(% of total long-term fixed-income investments)

 

A     7.1%  
BBB     66.5%  
BB or Lower     26.4%  

Total

    100%  
 

 

25


JPT     

Nuveen Preferred and Income 2022 Term Fund

Performance Overview and Holding Summaries as of January 31, 2020

 

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

Average Annual Total Returns as of January 31, 2020

 

    Cumulative        Average Annual  
     6-Month        1-Year        Since
Inception
 
JPI at Common Share NAV     6.82%          16.34%          6.75%  
JPI at Common Share Price     7.70%          17.43%          6.09%  
ICE BofA U.S. All Capital Securities Index     5.18%          13.93%          7.48%  

Since inception returns are from 1/26/17. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

 

LOGO

 

26


 

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

For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.

 

Fund Allocation

(% of net assets)

 

$1,000 Par (or similar) Institutional Preferred     87.7%  
$25 Par (or similar) Retail Preferred     36.5%  
Other Assets Less Liabilities     0.5%  

Net Assets Plus Borrowings

    124.7%  
Borrowings     (24.7)%  

Net Assets

    100%  

Portfolio Composition

(% of total investments)

 

Insurance

    21.9%  

Banks

    21.0%  

Diversified Financial Services

    19.2%  

Capital Markets

    9.5%  

Food Production

    6.7%  

Electric Utilities

    3.6%  
Other     18.1%  

Total

    100%  

Country Allocation1

(% of total investments)

 

United States

    79.1%  

United Kingdom

    5.4%  

Australia

    4.2%  

Canada

    2.7%  

France

    2.4%  

Ireland

    2.2%  

Germany

    1.7%  

Japan

    1.2%  

Bermuda

    0.4%  

Netherlands

    0.4%  

Other

    0.3%  

Total

    100%  
 

 

Top Five Issuers

(% of total long-term investments)

 

JPMorgan Chase & Co

    4.7%  

Morgan Stanley

    4.1%  

Citigroup Inc.

    4.0%  
Assured Guaranty Municipal Holdings Inc.     3.8%  
Bank of America Corp     3.6%  

Portfolio Credit Quality

(% of total long-term
fixed-income investments)

 

A     2.9%  
BBB     60.4%  
BB or Lower     33.1%  
N/R (not rated)     3.6%  

Total

    100%  
 

 

1

Includes 0.4% (as a percentage of total investments) in emerging market countries.

 

27


JPC   

Nuveen Preferred & Income
Opportunities Fund

 

Portfolio of Investments    January 31, 2020

     (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 155.5% (99.4% of Total Investments)

 

 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 76.3% (48.8% of Total Investments)  

 

      Air Freight & Logistics – 0.5%                           
$ 5,153    

XPO Logistics Inc., 144A, (3)

    6.500%        6/15/22        BB–      $ 5,243,177  
      Automobiles – 2.1%                           
  11,465    

General Motors Financial Co Inc., (4)

    5.750%        3/30/68        BB+        11,539,522  
  10,100    

General Motors Financial Co Inc., (4)

    6.500%        N/A (5)        BB+        10,774,781  
 

Total Automobiles

                               22,314,303  
      Banks – 33.8%                           
  3,335    

Ally Financial Inc., (3)

    8.000%        3/15/20        BBB–        3,355,844  
  3,415    

Bank of America Corp

    6.250%        N/A (5)        BBB–        3,803,456  
  33,875    

Bank of America Corp, (3), (4)

    6.500%        N/A (5)        BBB–        38,278,750  
  8,300    

Bank of America Corp, (3)

    6.300%        N/A (5)        BBB–        9,664,271  
  2,070    

Bank of America Corp

    6.100%        N/A (5)        BBB–        2,320,491  
  3,075    

Barclays Bank PLC, 144A

    10.179%        6/12/21        A–        3,404,069  
  13,725    

CIT Group Inc.

    5.800%        N/A (5)        Ba3        14,068,125  
  23,645    

Citigroup Inc., (3)

    6.250%        N/A (5)        BB+        26,987,930  
  6,790    

Citigroup Inc.

    5.000%        N/A (5)        BB+        7,111,574  
  1,650    

Citigroup Inc.

    6.125%        N/A (5)        Ba1        1,700,408  
  10,551    

Citigroup Inc., (4)

    5.950%        N/A (5)        BB+        11,526,967  
  4,330    

Citigroup Inc.

    6.300%        N/A (5)        BB+        4,700,691  
  4,159    

Citizens Financial Group Inc., (3)

    5.500%        N/A (5)        BB+        4,174,596  
  3,455    

Citizens Financial Group Inc.

    6.375%        N/A (5)        BB+        3,696,850  
  3,150    

CoBank ACB, (3)

    6.250%        N/A (5)        BBB+        3,487,995  
  1,180    

Commerzbank AG, 144A

    8.125%        9/19/23        BBB        1,387,127  
  1,385    

First Union Capital II

    7.950%        11/15/29        Baa1        1,932,276  
  2,659    

HSBC Capital Funding Dollar 1 LP, 144A, (4)

    10.176%        N/A (5)        Baa2        4,388,334  
  3,675    

Huntington Bancshares Inc./OH, (3)

    5.700%        N/A (5)        Baa3        3,855,149  
  2,615    

JPMorgan Chase & Co

    6.100%        N/A (5)        Baa2        2,885,417  
  35,840    

JPMorgan Chase & Co, (3), (4)

    6.750%        N/A (5)        Baa2        40,404,582  
  5,694    

JPMorgan Chase & Co, (3-Month LIBOR reference rate + 3.470% spread), (3), (6)

    5.240%        N/A (5)        Baa2        5,728,221  
  3,030    

JPMorgan Chase & Co

    5.300%        N/A (5)        Baa2        3,051,422  
  8,535    

JPMorgan Chase & Co

    5.000%        N/A (5)        Baa2        8,927,610  
  2,850    

KeyCorp

    5.000%        N/A (5)        Baa3        3,045,425  
  19,110    

Lloyds Bank PLC, 144A, (3)

    12.000%        N/A (5)        Baa3        23,366,179  
  3,050    

M&T Bank Corp

    5.125%        N/A (5)        Baa2        3,332,125  
  6,970    

M&T Bank Corp, (3)

    6.450%        N/A (5)        Baa2        7,741,927  
  3,467    

PNC Financial Services Group Inc., (4)

    5.000%        N/A (5)        Baa2        3,742,176  
  23,637    

PNC Financial Services Group Inc., (3), (4)

    6.750%        N/A (5)        Baa2        25,182,387  
  3,528    

Royal Bank of Scotland Group PLC

    7.648%        N/A (5)        BBB–        5,101,312  
  13,335    

Truist Financial Corp

    4.800%        N/A (5)        Baa2        13,750,652  
  5,325    

Truist Financial Corp, (3-Month LIBOR reference rate + 3.860% spread), (6)

    5.754%        N/A (5)        Baa2        5,364,937  
  3,250    

Truist Financial Corp

    5.050%        N/A (5)        Baa2        3,347,500  
  1,600    

USB Realty Corp, (3-Month LIBOR reference rate + 1.147% spread), 144A, (6)

    2.978%        N/A (5)        A3        1,433,616  
  3,630    

Wachovia Capital Trust III

    5.570%        N/A (5)        Baa2        3,688,988  
  1,196    

Wells Fargo & Co, (3-Month LIBOR reference rate + 3.770% spread), (6)

    5.664%        N/A (5)        Baa2        1,203,535  
  36,455    

Wells Fargo & Co, (4)

    5.875%        N/A (5)        Baa2        41,179,933  
  2,530    

Wells Fargo & Co

    5.900%        N/A (5)        Baa2        2,749,882  

 

28


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks (continued)                           
  11,196    

Zions Bancorp NA

    7.200%        N/A (5)        BB+      $ 12,343,590  
 

Total Banks

                               367,416,319  
      Capital Markets – 2.4%                           
  6,344    

Goldman Sachs Group Inc.

    5.500%        N/A (5)        Ba1        6,826,842  
  5,721    

Goldman Sachs Group Inc.

    5.300%        N/A (5)        Ba1        6,221,587  
  8,620    

Goldman Sachs Group Inc., (4)

    5.375%        N/A (5)        Ba1        8,684,219  
  3,600    

Morgan Stanley, (3)

    5.550%        N/A (5)        BB+        3,651,300  
  625    

State Street Corp

    5.250%        N/A (5)        Baa1        636,719  
 

Total Capital Markets

                               26,020,667  
      Chemicals – 1.0%                           
  10,525    

Blue Cube Spinco LLC, (3)

    9.750%        10/15/23        BB+        11,222,492  
      Commercial Services & Supplies – 1.0%                           
  6,290    

AerCap Global Aviation Trust, 144A

    6.500%        6/15/45        BB+        6,997,625  
  3,980    

AerCap Holdings NV

    5.875%        10/10/79        BB+        4,258,600  
 

Total Commercial Services & Supplies

                               11,256,225  
      Consumer Finance – 1.7%                           
  2,526    

American Express Co, (3-Month LIBOR reference rate + 3.428% spread), (6)

    5.338%        N/A (5)        Baa2        2,541,788  
  7,560    

Capital One Financial Corp, (3)

    5.550%        N/A (5)        Baa3        7,616,700  
  8,165    

Discover Financial Services, (3)

    5.500%        N/A (5)        Ba2        8,665,106  
 

Total Consumer Finance

                               18,823,594  
      Diversified Financial Services – 3.5%                           
  2,040    

Citigroup Inc.

    4.700%        N/A (5)        BB+        2,077,638  
  14    

Compeer Financial ACA, 144A

    6.750%        N/A (5)        BB+        14,933,000  
  7,336    

ILFC E-Capital Trust II, 144A

    4.150%        12/21/65        BB+        6,052,714  
  3,290    

JPMorgan Chase & Co

    4.600%        N/A (5)        BBB        3,358,761  
  10,951    

Voya Financial Inc., (3)

    6.125%        N/A (5)        BBB–        11,868,146  
 

Total Diversified Financial Services

                               38,290,259  
      Electric Utilities – 3.8%                           
  2,775    

AES Gener SA, 144A

    6.350%        10/07/79        BB        2,898,487  
  2,620    

Electricite de France SA, 144A

    5.250%        N/A (5)        BBB        2,756,240  
  23,505    

Emera Inc., (3), (4)

    6.750%        6/15/76        BBB–        27,035,451  
  7,475    

NextEra Energy Capital Holdings Inc., (3)

    5.650%        5/01/79        BBB        8,371,654  
 

Total Electric Utilities

                               41,061,832  
      Entertainment – 1.2%                           
  12,850    

Liberty Interactive LLC, (3)

    8.500%        7/15/29        BB        12,978,500  
      Equity Real Estate Investment Trust – 1.1%                           
  12    

Sovereign Real Estate Investment Trust, 144A

    12.000%        N/A (5)        BB+        12,319,512  
      Food & Staples Retailing – 0.4%                           
  3,350    

Albertsons Cos Inc. / Safeway Inc. / New Albertsons LP / Albertsons LLC, 144A, (3)

    7.500%        3/15/26        BB–        3,710,125  
      Food Products – 3.9%                           
  2,245    

Dairy Farmers of America Inc., 144A

    7.125%        N/A (5)        BB+        2,072,135  
  4,305    

Land O’ Lakes Inc., 144A, (3)

    7.250%        N/A (5)        BB        4,078,987  
  29,840    

Land O’ Lakes Inc., 144A, (3)

    8.000%        N/A (5)        BB        29,989,200  
  7,035    

Land O’ Lakes Inc., 144A, (3)

    7.000%        N/A (5)        BB        6,472,200  
 

Total Food Products

                               42,612,522  

 

29


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Health Care Providers & Services – 0.8%                           
  7,475    

HCA Inc., (3)

    7.500%        2/15/22        Ba2      $ 8,205,233  
      Independent Power & Renewable Electricity Producers – 0.1%                           
  1,350    

AES Gener SA, 144A

    7.125%        3/26/79        BB        1,444,451  
      Industrial Conglomerates – 3.3%                           
  35,855    

General Electric Co, (4)

    5.000%        N/A (5)        BBB–        35,460,954  
      Insurance – 10.7%                           
  2,240    

Aegon NV

    5.500%        4/11/48        Baa1        2,478,583  
  4,275    

American International Group Inc., (4)

    5.750%        4/01/48        Baa2        4,831,178  
  9,384    

Assurant Inc., (4)

    7.000%        3/27/48        BB+        10,617,434  
  21,219    

Assured Guaranty Municipal Holdings Inc., 144A, (4)

    6.400%        12/15/66        BBB+        22,533,729  
  2,115    

AXIS Specialty Finance LLC

    4.900%        1/15/40        BBB        2,189,832  
  7,117    

Liberty Mutual Group Inc., 144A

    7.800%        3/15/37        Baa3        9,430,025  
  9,335    

MetLife Capital Trust IV, 144A, (3)

    7.875%        12/15/37        BBB        12,695,600  
  5,560    

MetLife Inc., 144A, (3)

    9.250%        4/08/38        BBB        8,367,800  
  1,780    

MetLife Inc.

    5.875%        N/A (5)        BBB        2,012,646  
  575    

Nationwide Financial Services Capital Trust, (3)

    7.899%        3/01/37        Baa2        649,750  
  9,550    

Nationwide Financial Services Inc., (3)

    6.750%        5/15/37        Baa2        11,238,440  
  7,360    

Provident Financing Trust I

    7.405%        3/15/38        Baa3        9,163,200  
  13,375    

QBE Insurance Group Ltd, 144A, (4)

    7.500%        11/24/43        Baa1        15,118,431  
  1,740    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        1,953,063  
  2,400    

Swiss Re Finance Luxembourg SA, 144A

    5.000%        4/02/49        A        2,727,000  
 

Total Insurance

                               116,006,711  
      Machinery – 0.3%                           
  3,500    

Dana Financing Luxembourg Sarl, 144A, (3)

    6.500%        6/01/26        BB+        3,710,000  
      Metals & Mining – 0.4%                           
  2,630    

BHP Billiton Finance USA Ltd, 144A

    6.250%        10/19/75        BBB+        2,694,961  
  1,600    

BHP Billiton Finance USA Ltd, 144A

    6.750%        10/19/75        BBB+        1,880,000  
 

Total Metals & Mining

                               4,574,961  
      Multi-Utilities – 0.9%                           
  6,090    

CenterPoint Energy Inc.

    6.125%        N/A (5)        BBB–        6,485,850  
  3,235    

NiSource Inc.

    5.650%        N/A (5)        BBB–        3,380,575  
 

Total Multi-Utilities

                               9,866,425  
      Oil, Gas & Consumable Fuels – 1.5%                           
  7,125    

Enviva Partners LP / Enviva Partners Finance Corp, 144A, (3)

    6.500%        1/15/26        BB–        7,600,736  
  1,225    

MPLX LP

    6.875%        N/A (5)        BB+        1,234,188  
  5,165    

Transcanada Trust, (3)

    5.875%        8/15/76        BBB        5,604,025  
  2,060    

Transcanada Trust

    5.500%        9/15/79        BBB        2,222,225  
 

Total Oil, Gas & Consumable Fuels

                               16,661,174  
      U.S. Agency – 1.5%                           
  5,835    

Farm Credit Bank of Texas, 144A, (3)

    6.200%        N/A (5)        BBB        6,229,301  
  9    

Farm Credit Bank of Texas

    10.000%        N/A (5)        Baa1        9,596,875  
 

Total U.S. Agency

                               15,826,176  
      Wireless Telecommunication Services – 0.4%                           
  3,845    

Vodafone Group PLC

    7.000%        4/04/79        BB+        4,534,119  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $774,090,131)

 

     829,559,731  

 

30


Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 44.2% (28.3% of Total Investments)  

 

      Banks – 9.9%                           
  425,616    

Citigroup Inc., (4)

    7.125%           BB+      $ 12,368,401  
  179,775    

CoBank ACB, 144A, (7)

    6.250%           BBB+        19,235,925  
  38,725    

CoBank ACB, (7)

    6.125%           BBB+        3,959,631  
  93,724    

CoBank ACB, (4), (7)

    6.200%           BBB+        10,215,916  
  253,881    

Fifth Third Bancorp, (4)

    6.625%           Baa3        7,423,480  
  178,757    

FNB Corp/PA, (3)

    7.250%           Ba2        5,341,259  
  434,200    

Huntington Bancshares Inc./OH, (4)

    6.250%           Baa3        11,393,408  
  170,075    

KeyCorp

    6.125%           Baa3        5,120,958  
  82,000    

People’s United Financial Inc.

    5.625%           BB+        2,342,740  
  41,605    

PNC Financial Services Group Inc.

    6.125%           Baa2        1,143,306  
  494,096    

Regions Financial Corp, (3)

    6.375%           BB+        14,145,969  
  87,500    

Regions Financial Corp

    5.700%           BB+        2,494,625  
  128,000    

Synovus Financial Corp

    5.875%           BB–        3,440,640  
  113,600    

US Bancorp

    6.500%           A3        3,126,272  
  236,722    

Western Alliance Bancorp, (3)

    6.250%                 N/R        6,251,828  
 

Total Banks

                               108,004,358  
      Capital Markets – 7.5%                           
  95,221    

B Riley Financial Inc.

    7.500%           N/R        2,400,521  
  52,673    

B Riley Financial Inc.

    7.250%           N/R        1,337,894  
  115,605    

Charles Schwab Corp

    6.000%           BBB        3,070,469  
  129,169    

Charles Schwab Corp, (3)

    5.950%           BBB        3,456,562  
  128,425    

Cowen Inc.

    7.350%           N/R        3,341,618  
  61,600    

Goldman Sachs Group Inc.

    5.500%           Ba1        1,658,888  
  370,280    

Ladenburg Thalmann Financial Services Inc.

    8.000%           N/R        9,297,731  
  864,097    

Morgan Stanley, (3), (4)

    7.125%           BB+        25,447,657  
  251,600    

Morgan Stanley, (4)

    6.875%           BB+        7,236,016  
  181,500    

Morgan Stanley, (4)

    5.850%           BB+        5,219,940  
  170,452    

Morgan Stanley, (4)

    6.375%           BB+        4,909,018  
  95,828    

Oaktree Specialty Lending Corp

    6.125%           N/R        2,490,570  
  61,445    

State Street Corp

    5.350%           Baa1        1,753,026  
  216,759    

Stifel Financial Corp

    6.250%           BB–        5,826,482  
  150,000    

Stifel Financial Corp

    6.250%                 BB–        4,180,500  
 

Total Capital Markets

                               81,626,892  
      Consumer Finance – 4.2%                           
  184,800    

Capital One Financial Corp, (3)

    5.000%           Baa3        4,721,640  
  1,173,445    

GMAC Capital Trust I, (3)

    7.695%           BB–        31,272,309  
  366,100    

Synchrony Financial

    5.625%                 BB–        9,536,905  
 

Total Consumer Finance

                               45,530,854  
      Diversified Financial Services – 2.0%                           
  96,000    

AgriBank FCB, (7)

    6.875%           BBB+        10,368,000  
  114,400    

Equitable Holdings Inc.

    5.250%           BBB–        3,003,000  
  284,100    

Voya Financial Inc.

    5.350%                 BBB–        7,940,595  
 

Total Diversified Financial Services

                               21,311,595  
      Diversified Telecommunication Services – 0.7%                           
  284,914    

Qwest Corp, (3)

    6.875%                 BBB–        7,419,161  
      Food Products – 3.8%                           
  312,011    

CHS Inc., (3)

    7.875%           N/R        8,689,506  
  517,298    

CHS Inc.

    7.100%           N/R        14,536,074  
  506,088    

CHS Inc.

    6.750%           N/R        13,952,846  
  23,000    

Dairy Farmers of America Inc., 144A, (7)

    7.875%           BB+        2,300,000  
  24,500    

Dairy Farmers of America Inc., 144A, (7)

    7.875%                 BB+        2,437,750  
 

Total Food Products

                               41,916,176  
      Insurance – 9.8%                           
  274,600    

American Equity Investment Life Holding Co

    5.950%           BB        7,210,996  
  302,283    

Argo Group US Inc., (3)

    6.500%           BBB–        7,904,700  

 

31


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Insurance (continued)                           
  359,828    

Aspen Insurance Holdings Ltd

    5.950%           BBB–      $ 10,215,517  
  73,500    

Aspen Insurance Holdings Ltd

    5.625%           BBB–        1,966,125  
  583,800    

Athene Holding Ltd, (3)

    6.350%           BBB–        16,696,680  
  117,200    

Axis Capital Holdings Ltd, (4)

    5.500%           BBB        3,057,748  
  68,900    

Delphi Financial Group Inc., (4), (7)

    5.100%           BBB–        1,584,700  
  415,500    

Enstar Group Ltd, (3), (4)

    7.000%           BB+        12,041,190  
  220,272    

Globe Life Inc., (3)

    6.125%           BBB+        5,903,290  
  305,780    

Hartford Financial Services Group Inc., (3)

    7.875%           Baa2        8,690,268  
  219,645    

Maiden Holdings North America Ltd, (4)

    7.750%           N/R        5,146,282  
  76,400    

National General Holdings Corp

    7.500%           N/R        1,965,390  
  153,954    

National General Holdings Corp, (4)

    7.500%           N/R        3,896,576  
  88,895    

National General Holdings Corp, (3)

    7.625%           N/R        2,324,604  
  182,233    

PartnerRe Ltd, (3)

    7.250%           BBB        4,951,271  
  121,496    

Reinsurance Group of America Inc., (3)

    6.200%           BBB+        3,361,794  
  347,400    

Reinsurance Group of America Inc., (3)

    5.750%                 BBB+        10,248,300  
 

Total Insurance

                               107,165,431  
      Mortgage Real Estate Investment Trust – 0.2%                           
  96,986    

MFA Financial Inc., (4)

    8.000%                 N/R        2,536,184  
      Multi-Utilities – 0.8%                           
  288,200    

Algonquin Power & Utilities Corp, (3)

    6.200%                 BB+        8,354,918  
      Oil, Gas & Consumable Fuels – 0.8%                           
  123,400    

NuStar Energy LP

    8.500%           B1        3,047,980  
  94,229    

NuStar Energy LP

    7.625%           B1        2,141,825  
  133,617    

NuStar Logistics LP

    8.565%                 B1        3,536,842  
 

Total Oil, Gas & Consumable Fuels

                               8,726,647  
      Thrifts & Mortgage Finance – 1.2%                           
  143,124    

Federal Agricultural Mortgage Corp, (4)

    6.000%           N/R        3,835,723  
  319,095    

New York Community Bancorp Inc.

    6.375%                 Ba2        9,119,735  
 

Total Thrifts & Mortgage Finance

                               12,955,458  
      Trading Companies & Distributors – 0.3%                           
  104,800    

Air Lease Corp

    6.150%                 BB+        2,920,776  
      U.S. Agency – 2.0%                           
  196,900    

Farm Credit Bank of Texas, 144A, (3), (7)

    6.750%                 Baa1        21,265,200  
      Wireless Telecommunication Services – 1.0%                           
  415,473    

United States Cellular Corp

    7.250%                 Ba1        10,985,106  
 

Total $25 Par (or similar) Retail Preferred (cost $448,380,966)

                               480,718,756  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 26.8% (17.1% of Total Investments) (8)

 

     
      Banks – 22.8%                           
$ 3,715    

Australia & New Zealand Banking Group Ltd/United Kingdom, 144A

    6.750%        N/A (5)        Baa2      $ 4,267,606  
  10,040    

Banco Bilbao Vizcaya Argentaria SA

    6.125%        N/A (5)        Ba2        10,564,088  
  6,400    

Banco Bilbao Vizcaya Argentaria SA

    6.500%        N/A (5)        Ba2        6,816,000  
  2,310    

Banco Mercantil del Norte SA/Grand Cayman, 144A

    7.625%        N/A (5)        BB        2,589,510  
  5,200    

Banco Santander SA, Reg S

    7.500%        N/A (5)        Ba1        5,786,123  
  2,500    

Barclays PLC

    8.000%        N/A (5)        BB+        2,821,525  
  7,825    

Barclays PLC

    7.750%        N/A (5)        BB+        8,568,375  
  8,190    

Barclays PLC, Reg S

    7.875%        N/A (5)        BB+        8,865,511  
  800    

BNP Paribas SA, 144A

    7.000%        N/A (5)        BBB–        946,000  
  12,935    

BNP Paribas SA, 144A

    7.375%        N/A (5)        BBB–        15,029,176  
  5,140    

BNP Paribas SA, 144A

    6.625%        N/A (5)        BBB–        5,602,600  
  7,810    

Credit Agricole SA, 144A, (4)

    7.875%        N/A (5)        BBB–        8,883,875  

 

32


Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks (continued)                           
$ 15,140    

Credit Agricole SA, 144A, (4)

    8.125%        N/A (5)        BBB–      $ 18,369,665  
  1,950    

Credit Agricole SA, 144A

    6.875%        N/A (5)        BBB–        2,152,313  
  13,534    

HSBC Holdings PLC

    6.375%        N/A (5)        Baa3        14,794,286  
  2,405    

HSBC Holdings PLC

    6.000%        N/A (5)        Baa3        2,579,363  
  2,600    

ING Groep NV, Reg S

    6.875%        N/A (5)        BBB–        2,782,000  
  5,595    

ING Groep NV

    6.500%        N/A (5)        BBB–        6,161,214  
  5,285    

ING Groep NV

    5.750%        N/A (5)        BBB–        5,657,593  
  6,575    

Intesa Sanpaolo SpA, 144A

    7.700%        N/A (5)        BB–        7,372,219  
  18,615    

Lloyds Banking Group PLC, (4)

    7.500%        N/A (5)        Baa3        20,860,900  
  3,350    

Macquarie Bank Ltd/London, 144A

    6.125%        N/A (5)        BB+        3,559,375  
  3,845    

Nordea Bank Abp, 144A

    6.625%        N/A (5)        BBB        4,337,583  
  6,100    

Royal Bank of Scotland Group PLC

    8.000%        N/A (5)        BB+        7,117,968  
  6,740    

Royal Bank of Scotland Group PLC

    8.625%        N/A (5)        BB+        7,279,200  
  2,655    

Societe Generale SA, 144A

    8.000%        N/A (5)        BB+        3,156,131  
  1,725    

Societe Generale SA, 144A

    7.375%        N/A (5)        BB+        1,903,382  
  6,886    

Societe Generale SA, 144A

    7.875%        N/A (5)        BB+        7,781,180  
  4,541    

Societe Generale SA, 144A

    6.750%        N/A (5)        BB+        5,102,949  
  5,970    

Standard Chartered PLC, 144A

    7.500%        N/A (5)        Ba1        6,380,437  
  6,245    

Standard Chartered PLC, 144A

    7.750%        N/A (5)        Ba1        6,900,725  
  19,080    

UBS Group AG, Reg S

    7.000%        N/A (5)        BBB–        21,736,279  
  3,010    

UBS Group AG, 144A

    7.000%        N/A (5)        BBB–        3,314,341  
  6,845    

UniCredit SpA, Reg S

    8.000%        N/A (5)        B+        7,589,394  
  221,556    

Total Banks

                               247,628,886  
      Capital Markets – 3.8%                           
  6,045    

Credit Suisse Group AG, 144A

    6.375%        N/A (5)        Ba2        6,702,394  
  9,814    

Credit Suisse Group AG, 144A

    7.250%        N/A (5)        BB        11,126,623  
  8,240    

Credit Suisse Group AG, 144A, (4)

    7.500%        N/A (5)        BB        9,341,243  
  8,180    

Credit Suisse Group AG, 144A, (4)

    7.500%        N/A (5)        BB        9,013,133  
  4,695    

UBS Group AG, Reg S

    6.875%        N/A (5)        BBB–        5,265,440  
  36,974    

Total Capital Markets

                               41,448,833  
      Diversified Financial Services – 0.2%                           
  2,505    

ING Groep NV, Reg S

    6.750%        N/A (5)        BBB–        2,752,494  
$ 261,035    

Total Contingent Capital Securities (cost $270,894,159)

                               291,830,213  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 4.7% (3.0% of Total Investments)

 

      Automobiles – 0.3%                           
$ 2,825    

Ford Motor Co, (3)

    7.450%        7/16/31        BBB      $ 3,405,889  
      Capital Markets – 0.4%                           
  3,960    

Donnelley Financial Solutions Inc., (3)

    8.250%        10/15/24        B        4,108,500  
      Chemicals – 0.4%                           
  4,675    

CVR Partners LP / CVR Nitrogen Finance Corp, 144A, (3)

    9.250%        6/15/23        B+        4,867,844  
      Consumer Finance – 0.4%                           
  4,468    

Navient Corp, (3)

    8.000%        3/25/20        BB        4,499,276  
      Health Care Equipment & Supplies – 0.9%                           
  8,619    

Avantor Inc., 144A, (3)

    9.000%        10/01/25        BB        9,525,719  
      Media – 1.3%                           
  3,375    

Altice Financing SA, 144A, (3)

    7.500%        5/15/26        B        3,606,862  
  3,650    

DISH DBS Corp, (3)

    7.750%        7/01/26        B1        3,832,500  
  4,725    

ViacomCBS Inc., (3)

    6.875%        4/30/36        BBB        6,540,261  
  11,750    

Total Media

                               13,979,623  

 

33


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Semiconductors & Semiconductor Equipment – 0.4%                           
$ 3,650    

Amkor Technology Inc., 144A, (3)

    6.625%        9/15/27        BB      $ 3,964,812  
      Specialty Retail – 0.6%                           
  6,450    

L Brands Inc., (3)

    6.875%        11/01/35        Ba2        6,466,125  
$ 46,397    

Total Corporate Bonds (cost $48,844,882)

                               50,817,788  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

CONVERTIBLE PREFERRED SECURITIES – 3.2% (2.0% of Total Investments)

 

      Electric Utilities – 0.6%                           
  106,400    

Southern Co

    6.750%                 BBB      $ 6,042,456  
      Multi-Utilities – 1.6%                           
  146,300    

CenterPoint Energy Inc.

    7.000%           N/R        7,031,178  
  79,300    

Sempra Energy

    6.750%                 N/R        9,915,672  
 

Total Multi-Utilities

                               16,946,850  
      Semiconductors & Semiconductor Equipment – 1.0%                           
  9,850    

Broadcom Inc.

    8.000%                 N/R        11,313,710  
 

Total Convertible Preferred Securities (cost $31,517,930)

                               34,303,016  
Shares     Description (1)                           Value  
 

COMMON STOCKS – 0.3% (0.2% of Total Investments)

 

  
      Capital Markets – 0.3%                           
  184,035    

Ares Capital Corp

                             $ 3,463,539  
 

Total Common Stocks (cost $3,036,662)

                               3,463,539  
 

Total Long-Term Investments (cost $1,576,764,730)

                               1,690,693,043  
Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
 

SHORT-TERM INVESTMENTS – 0.9% (0.6% of Total Investments)

          
      REPURCHASE AGREEMENTS – 0.9% (0.6% of Total Investments)                           
$ 9,945    

Repurchase Agreement with Fixed Income Clearing Corporation,
dated 1/31/20, repurchase price $9,945,890,
collateralized by $9,485,000 U.S. Treasury Notes,
2.625%, due 12/31/25, value $10,147,214

    0.650%        2/03/20               $ 9,945,351  
 

Total Short-Term Investments (cost $9,945,351)

 

              9,945,351  
 

Total Investments (cost $1,586,710,081) – 156.4%

 

              1,700,638,394  
 

Borrowings – (43.9)% (9), (10)

 

              (477,000,000
 

Reverse Repurchase Agreements – (12.4)% (11)

 

              (135,000,000
 

Other Assets Less Liabilities – (0.1)% (12)

 

              (1,461,000
 

Net Assets Applicable to Common Shares – 100%

 

            $ 1,087,177,394  

 

34


Investments in Derivatives

Futures Contracts

 

Description

   Contract
Position
     Number of
Contracts
     Expiration
Date
     Notional
Amount
     Value      Unrealized
Appreciation
(Depreciation)
     Variation
Margin
Receivable/
(Payable)
 

U.S. Treasury 10-Year Note

     Short        (272      3/20      $ (35,226,534    $ (35,810,500    $ (583,966    $ (93,500

Interest Rate Swaps – OTC Uncleared

 

Counterparty  

Notional

Amount

   

Fund

Pay/Receive

Floating Rate

    Floating Rate Index    

Fixed Rate

(Annualized)

   

Fixed Rate

Payment

Frequency

    Effective
Date (13)
    Optional
Termination
Date
    Maturity
Date
    Value     Unrealized
Appreciation
(Depreciation)
 

Morgan Stanley Capital Services, LLC

  $ 277,500,000       Receive       1-Month LIBOR       1.994     Monthly       6/01/18       7/01/25       7/01/27     $ (16,132,860   $ (16,132,860

Morgan Stanley Capital Services, LLC

    48,000,000       Receive       1-Month LIBOR       2.364     Monthly       7/01/19       7/01/26       7/01/28       (4,388,492     (4,388,492

Total

  $ 325,500,000                                                             $ (20,521,352   $ (20,521,352

Total unrealized depreciation on interest rate swaps

 

                                                  $ (20,521,352

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

(1)

All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

 

(2)

For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

 

(3)

Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in reverse repurchase agreements. As of the end of the reporting period, investments with a value of $363,081,650 have been pledged as collateral for reverse repurchase agreements.

 

(4)

Investment, or portion of investment, is hypothecated as described in Notes to Financial Statements, Note 8 – Fund Leverage, Rehypothecation. The total value of investments hypothecated as of the end of the reporting period was $401,486,021.

 

(5)

Perpetual security. Maturity date is not applicable.

 

(6)

Variable rate security. The rate shown is the coupon as of the end of the reporting period.

 

(7)

For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 3 – Investment Valuation and Fair Value Measurements for more information.

 

(8)

Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level.

 

(9)

Borrowings as a percentage of Total Investments is 28.0%.

 

(10)

The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for borrowings. As of the end of the reporting period, investments with a value of $1,065,150,750 have been pledged as collateral for borrowings.

 

(11)

Reverse Repurchase Agreements as a percentage of Total Investments is 7.9%.

 

(12)

Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable.

 

(13)

Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract.

 

144A

Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

 

Reg S

Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

 

LIBOR

London Inter-Bank Offered Rate

 

See accompanying notes to financial statements.

 

35


JPI   

Nuveen Preferred and
Income Term Fund

 

Portfolio of Investments    January 31, 2020

     (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 149.3% (100.0% of Total Investments)

 

 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 69.6% (46.6% of Total Investments)  

 

      Automobiles – 1.8%                           
$ 10,748    

General Motors Financial Co Inc., (3)

    5.750%        N/A (4)        BB+      $ 10,817,862  
      Banks – 26.6%                           
  3,190    

Bank of America Corp

    6.250%        N/A (4)        BBB–        3,552,862  
  7,165    

Bank of America Corp, (3)

    6.500%        N/A (4)        BBB–        8,096,450  
  5,320    

Bank of America Corp

    6.300%        N/A (4)        BBB–        6,194,448  
  1,915    

Bank of America Corp

    6.100%        N/A (4)        BBB–        2,146,734  
  2,805    

Barclays Bank PLC, 144A, (5)

    10.179%        N/A (4)        A–        3,105,175  
  2,845    

CIT Group Inc., (3)

    5.800%        N/A (4)        Ba3        2,916,125  
  6,140    

Citigroup Inc., (5)

    6.250%        N/A (4)        BB+        7,008,073  
  6,235    

Citigroup Inc.

    5.000%        N/A (4)        BB+        6,530,290  
  1,545    

Citigroup Inc.

    6.125%        N/A (4)        Ba1        1,592,200  
  9,859    

Citigroup Inc., (3), (5)

    5.950%        N/A (4)        BB+        10,770,957  
  4,015    

Citigroup Inc., (3)

    6.300%        N/A (4)        BB+        4,358,724  
  3,180    

Citizens Financial Group Inc.

    6.375%        N/A (4)        BB+        3,402,600  
  1,085    

Commerzbank AG, 144A

    8.125%        9/19/23        BBB        1,275,452  
  1,230    

First Union Capital II

    7.950%        11/15/29        Baa1        1,716,028  
  2,396    

HSBC Capital Funding Dollar 1 LP, 144A

    10.176%        N/A (4)        Baa2        3,954,287  
  2,280    

JPMorgan Chase & Co

    6.100%        N/A (4)        Baa2        2,515,775  
  15,752    

JPMorgan Chase & Co, (3)

    6.750%        N/A (4)        Baa2        17,758,175  
  456    

JPMorgan Chase & Co, (3-Month LIBOR reference rate + 3.470% spread), (6)

    5.240%        N/A (4)        Baa2        458,741  
  2,780    

JPMorgan Chase & Co, (3)

    5.300%        N/A (4)        Baa2        2,799,655  
  7,815    

JPMorgan Chase & Co, (5)

    5.000%        N/A (4)        Baa2        8,174,490  
  2,430    

KeyCorp

    5.000%        N/A (4)        Baa3        2,596,625  
  1,905    

Lloyds Bank PLC, 144A

    12.000%        N/A (4)        Baa3        2,329,282  
  2,800    

M&T Bank Corp, (3)

    5.125%        N/A (4)        Baa2        3,059,000  
  1,570    

M&T Bank Corp

    6.450%        N/A (4)        Baa2        1,743,878  
  3,168    

PNC Financial Services Group Inc., (3)

    5.000%        N/A (4)        Baa2        3,419,444  
  2,309    

PNC Financial Services Group Inc.

    6.750%        N/A (4)        Baa2        2,459,962  
  3,071    

Royal Bank of Scotland Group PLC, (3)

    7.648%        N/A (4)        BBB–        4,440,512  
  12,285    

Truist Financial Corp, (5)

    4.800%        N/A (4)        Baa2        12,667,923  
  2,980    

Truist Financial Corp

    5.050%        N/A (4)        Baa2        3,069,400  
  1,500    

USB Realty Corp, (3-Month LIBOR reference rate + 1.147% spread), 144A, (6)

    2.978%        N/A (4)        A3        1,344,015  
  3,345    

Wachovia Capital Trust III

    5.570%        N/A (4)        Baa2        3,399,356  
  1,100    

Wells Fargo & Co, (3-Month LIBOR reference rate + 3.770% spread), (5), (6)

    5.664%        N/A (4)        Baa2        1,106,930  
  11,748    

Wells Fargo & Co, (3)

    5.875%        N/A (4)        Baa2        13,270,658  
  2,256    

Wells Fargo & Co, (3)

    5.900%        N/A (4)        Baa2        2,452,069  
  1,415    

Zions Bancorp NA

    7.200%        N/A (4)        BB+        1,560,038  
 

Total Banks

                               157,246,333  
      Capital Markets – 3.5%                           
  5,918    

Goldman Sachs Group Inc.

    5.500%        N/A (4)        Ba1        6,368,419  
  5,267    

Goldman Sachs Group Inc.

    5.300%        N/A (4)        Ba1        5,727,863  
  7,890    

Goldman Sachs Group Inc., (3)

    5.375%        N/A (4)        Ba1        7,948,780  
  600    

State Street Corp

    5.250%        N/A (4)        Baa1        611,250  
 

Total Capital Markets

                               20,656,312  

 

36


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Commercial Services & Supplies – 1.8%                           
  5,795    

AerCap Global Aviation Trust, 144A, (5)

    6.500%        6/15/45        BB+      $ 6,446,938  
  3,670    

AerCap Holdings NV, (3)

    5.875%        10/10/79        BB+        3,926,900  
 

Total Commercial Services & Supplies

                               10,373,838  
      Consumer Finance – 1.8%                           
  2,320    

American Express Co, (3-Month LIBOR reference rate + 3.428% spread), (6)

    5.338%        N/A (4)        Baa2        2,334,500  
  3,640    

Capital One Financial Corp

    5.550%        N/A (4)        Baa3        3,667,300  
  4,135    

Discover Financial Services, (3)

    5.500%        N/A (4)        Ba2        4,388,269  
 

Total Consumer Finance

                               10,390,069  
      Diversified Financial Services – 4.8%                           
  1,910    

Citigroup Inc.

    4.700%        N/A (4)        BB+        1,945,240  
  13    

Compeer Financial ACA, 144A

    6.750%        N/A (4)        BB+        13,843,000  
  6,817    

ILFC E-Capital Trust II, 144A, (5)

    4.150%        12/21/65        BB+        5,624,502  
  3,075    

JPMorgan Chase & Co

    4.600%        N/A (4)        BBB        3,139,267  
  3,692    

Voya Financial Inc., (5)

    6.125%        N/A (4)        BBB–        4,001,205  
 

Total Diversified Financial Services

                               28,553,214  
      Electric Utilities – 2.7%                           
  2,550    

AES Gener SA, 144A, (5)

    6.350%        10/07/79        BB        2,663,475  
  2,370    

Electricite de France SA, 144A

    5.250%        N/A (4)        BBB        2,493,240  
  9,150    

Emera Inc., (5)

    6.750%        6/15/76        BBB–        10,524,330  
 

Total Electric Utilities

                               15,681,045  
      Equity Real Estate Investment Trust – 2.2%                           
  12    

Sovereign Real Estate Investment Trust, 144A

    12.000%        N/A (4)        BB+        12,943,645  
      Food Products – 4.0%                           
  2,360    

Dairy Farmers of America Inc., 144A, (3)

    7.125%        N/A (4)        BB+        2,178,280  
  2,665    

Land O’ Lakes Inc., 144A

    7.250%        N/A (4)        BB        2,525,087  
  12,520    

Land O’ Lakes Inc., 144A

    8.000%        N/A (4)        BB        12,582,600  
  6,993    

Land O’ Lakes Inc., 144A

    7.000%        N/A (4)        BB        6,433,560  
 

Total Food Products

                               23,719,527  
      Independent Power & Renewable Electricity Producers – 0.2%                
  1,240    

AES Gener SA, 144A, (5)

    7.125%        3/26/79        BB        1,326,755  
      Industrial Conglomerates – 3.5%                           
  20,982    

General Electric Co, (3)

    5.000%        N/A (4)        BBB–        20,751,408  
      Insurance – 12.8%                           
  1,920    

Aegon NV, (3)

    5.500%        4/11/48        Baa1        2,124,499  
  3,930    

American International Group Inc., (3), (5)

    5.750%        4/01/48        Baa2        4,441,293  
  8,750    

Assurant Inc., (5)

    7.000%        3/27/48        BB+        9,900,101  
  19,800    

Assured Guaranty Municipal Holdings Inc., 144A, (3), (5)

    6.400%        12/15/66        BBB+        21,026,808  
  1,965    

AXIS Specialty Finance LLC

    4.900%        1/15/40        BBB        2,034,525  
  5,030    

MetLife Inc., 144A, (5)

    9.250%        4/08/38        BBB        7,570,150  
  1,580    

MetLife Inc., (5)

    5.875%        N/A (4)        BBB        1,786,506  
  6,759    

Provident Financing Trust I, (5)

    7.405%        3/15/38        Baa3        8,414,955  
  11,560    

QBE Insurance Group Ltd, 144A, (3), (5)

    7.500%        11/24/43        Baa1        13,066,846  
  2,650    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        2,974,493  
  2,200    

Swiss Re Finance Luxembourg SA, 144A, (5)

    5.000%        4/02/49        A        2,499,750  
 

Total Insurance

                               75,839,926  
      Metals & Mining – 0.7%                           
  2,290    

BHP Billiton Finance USA Ltd, 144A, (5)

    6.250%        10/19/75        BBB+        2,346,563  
  1,395    

BHP Billiton Finance USA Ltd, 144A, (5)

    6.750%        10/19/75        BBB+        1,639,125  
 

Total Metals & Mining

                               3,985,688  

 

37


JPI    Nuveen Preferred and Income Term Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Multi-Utilities – 1.5%                           
  5,610    

CenterPoint Energy Inc.

    6.125%        N/A (4)        BBB–      $ 5,974,650  
  2,815    

NiSource Inc.

    5.650%        N/A (4)        BBB–        2,941,675  
 

Total Multi-Utilities

                               8,916,325  
      Oil, Gas & Consumable Fuels – 0.6%                           
  1,145    

MPLX LP

    6.875%        N/A (4)        BB+        1,153,588  
  1,935    

TransCanada Trust

    5.500%        9/15/79        BBB        2,087,381  
 

Total Oil, Gas & Consumable Fuels

                               3,240,969  
      U.S. Agency – 0.4%                           
  1,180    

Farm Credit Bank of Texas, 144A

    6.200%        N/A (4)        BBB        1,259,739  
  1    

Farm Credit Bank of Texas

    10.000%        N/A (4)        Baa1        780,200  
 

Total U.S. Agency

                               2,039,939  
      Wireless Telecommunication Services – 0.7%                           
  3,555    

Vodafone Group PLC, (3)

    7.000%        4/04/79        BB+        4,192,144  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $380,919,243)

 

     410,674,999  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 45.7% (30.6% of Total Investments) (7)

 

      Banks – 38.8%                           
$ 3,400    

Australia & New Zealand Banking Group Ltd/United Kingdom, 144A, (3)

    6.750%        N/A (4)        Baa2      $ 3,905,750  
  9,285    

Banco Bilbao Vizcaya Argentaria SA

    6.125%        N/A (4)        Ba2        9,769,677  
  6,200    

Banco Bilbao Vizcaya Argentaria SA

    6.500%        N/A (4)        Ba2        6,603,000  
  2,140    

Banco Mercantil del Norte SA/Grand Cayman, 144A

    7.625%        N/A (4)        BB        2,398,940  
  4,800    

Banco Santander SA, Reg S

    7.500%        N/A (4)        Ba1        5,341,037  
  2,300    

Barclays PLC

    8.000%        N/A (4)        BB+        2,595,803  
  7,300    

Barclays PLC

    7.750%        N/A (4)        BB+        7,993,500  
  7,505    

Barclays PLC, Reg S

    7.875%        N/A (4)        BB+        8,124,012  
  750    

BNP Paribas SA, 144A

    7.000%        N/A (4)        BBB–        886,875  
  11,945    

BNP Paribas SA, 144A

    7.375%        N/A (4)        BBB–        13,878,895  
  3,975    

BNP Paribas SA, 144A

    6.625%        N/A (4)        BBB–        4,332,750  
  7,035    

Credit Agricole SA, 144A, (3)

    7.875%        N/A (4)        BBB–        8,002,312  
  14,069    

Credit Agricole SA, 144A, (3)

    8.125%        N/A (4)        BBB–        17,070,199  
  1,800    

Credit Agricole SA, 144A

    6.875%        N/A (4)        BBB–        1,986,750  
  12,636    

HSBC Holdings PLC

    6.375%        N/A (4)        Baa3        13,812,664  
  2,210    

HSBC Holdings PLC

    6.000%        N/A (4)        Baa3        2,370,225  
  2,774    

ING Groep NV, Reg S

    6.875%        N/A (4)        BBB–        2,968,180  
  5,340    

ING Groep NV, (3)

    6.500%        N/A (4)        BBB–        5,880,408  
  4,780    

ING Groep NV

    5.750%        N/A (4)        BBB–        5,116,990  
  6,019    

Intesa Sanpaolo SpA, 144A, (5)

    7.700%        N/A (4)        BB–        6,748,804  
  17,565    

Lloyds Banking Group PLC, (3), (5)

    7.500%        N/A (4)        Baa3        19,684,217  
  3,050    

Macquarie Bank Ltd/London, 144A

    6.125%        N/A (4)        BB+        3,240,625  
  3,335    

Nordea Bank Abp, 144A, (3)

    6.625%        N/A (4)        BBB        3,762,247  
  5,660    

Royal Bank of Scotland Group PLC

    8.000%        N/A (4)        BB+        6,604,541  
  6,200    

Royal Bank of Scotland Group PLC

    8.625%        N/A (4)        BB+        6,696,000  
  2,605    

Societe Generale SA, 144A, (3)

    8.000%        N/A (4)        BB+        3,096,694  
  1,590    

Societe Generale SA, 144A

    7.375%        N/A (4)        BB+        1,754,422  
  6,163    

Societe Generale SA, 144A

    7.875%        N/A (4)        BB+        6,964,190  
  4,253    

Societe Generale SA, 144A, (3)

    6.750%        N/A (4)        BB+        4,779,309  
  5,470    

Standard Chartered PLC, 144A, (3)

    7.500%        N/A (4)        Ba1        5,846,063  
  5,830    

Standard Chartered PLC, 144A, (3)

    7.750%        N/A (4)        Ba1        6,442,150  
  16,927    

UBS Group AG, Reg S

    7.000%        N/A (4)        BBB–        19,283,543  
  3,735    

UBS Group AG, 144A, (5)

    7.000%        N/A (4)        BBB–        4,112,646  
  6,390    

UniCredit SpA, Reg S

    8.000%        N/A (4)        B+        7,084,912  
  205,036    

Total Banks

                               229,138,330  

 

38


Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Capital Markets – 6.5%                           
$ 5,570    

Credit Suisse Group AG, 144A, (5)

    6.375%        N/A (4)        Ba2      $ 6,175,738  
  9,321    

Credit Suisse Group AG, 144A

    7.250%        N/A (4)        BB        10,567,684  
  7,787    

Credit Suisse Group AG, 144A, (3)

    7.500%        N/A (4)        BB        8,827,701  
  7,525    

Credit Suisse Group AG, 144A, (5)

    7.500%        N/A (4)        BB        8,291,421  
  4,080    

UBS Group AG, Reg S

    6.875%        N/A (4)        BBB–        4,575,718  
  34,283    

Total Capital Markets

                               38,438,262  
      Diversified Financial Services – 0.4%                           
  2,290    

ING Groep NV, Reg S

    6.750%        N/A (4)        BBB–        2,516,252  
$ 241,609    

Total Contingent Capital Securities (cost $248,897,767)

                               270,092,844  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 34.0% (22.8% of Total Investments)  

 

      Banks – 7.7%                           
  32,689    

Citigroup Inc.

    7.125%           BB+      $ 949,942  
  162,500    

CoBank ACB, 144A, (8)

    6.250%           BBB+        17,387,500  
  62,728    

CoBank ACB, (8)

    6.200%           BBB+        6,837,352  
  119,833    

Fifth Third Bancorp

    6.625%           Baa3        3,503,917  
  154,612    

Huntington Bancshares Inc.

    6.250%           Baa3        4,057,019  
  54,100    

KeyCorp

    6.125%           Baa3        1,628,951  
  207,078    

Regions Financial Corp

    6.375%           BB+        5,928,643  
  80,200    

Regions Financial Corp

    5.700%           BB+        2,286,502  
  117,500    

Synovus Financial Corp

    5.875%                 BB–        3,158,400  
 

Total Banks

                               45,738,226  
      Capital Markets – 4.0%                           
  54,600    

Goldman Sachs Group Inc.

    5.500%           Ba1        1,470,378  
  160,656    

Morgan Stanley

    7.125%           BB+        4,731,319  
  227,700    

Morgan Stanley

    6.875%           BB+        6,548,652  
  166,900    

Morgan Stanley

    5.850%           BB+        4,800,044  
  164,900    

Morgan Stanley

    6.375%           BB+        4,749,120  
  46,250    

State Street Corp

    5.350%                 Baa1        1,319,513  
 

Total Capital Markets

                               23,619,026  
      Consumer Finance – 1.7%                           
  173,726    

GMAC Capital Trust I, (5)

    7.695%           BB–        4,629,798  
  208,600    

Synchrony Financial

    5.625%                 BB–        5,434,030  
 

Total Consumer Finance

                               10,063,828  
      Diversified Financial Services – 3.3%                           
  88,300    

AgriBank FCB, (8)

    6.875%           BBB+        9,536,400  
  105,500    

Equitable Holdings Inc.

    5.250%           BBB–        2,769,375  
  261,100    

Voya Financial Inc.

    5.350%                 BBB–        7,297,745  
 

Total Diversified Financial Services

                               19,603,520  
      Food Products – 2.9%                           
  100,400    

CHS Inc.

    7.875%           N/R        2,796,140  
  166,429    

CHS Inc.

    7.100%           N/R        4,676,655  
  180,399    

CHS Inc.

    6.750%           N/R        4,973,600  
  24,000    

Dairy Farmers of America Inc., 144A, (8)

    7.875%           BB+        2,400,000  
  20,500    

Dairy Farmers of America Inc., 144A, (8)

    7.875%                 BB+        2,039,750  
 

Total Food Products

                               16,886,145  
      Insurance – 7.2%                           
  256,300    

American Equity Investment Life Holding Co

    5.950%           BB        6,730,438  
  330,543    

Aspen Insurance Holdings Ltd

    5.950%           BBB–        9,384,116  
  62,000    

Aspen Insurance Holdings Ltd

    5.625%           BBB–        1,658,500  
  164,300    

Athene Holding Ltd

    6.350%           BBB–        4,698,980  
  108,900    

Axis Capital Holdings Ltd

    5.500%           BBB        2,841,201  

 

39


JPI    Nuveen Preferred and Income Term Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Insurance (continued)                           
  70,700    

Delphi Financial Group Inc., (5), (8)

    5.100%           BBB–      $ 1,626,100  
  119,500    

Enstar Group Ltd, (5)

    7.000%           BB+        3,463,110  
  65,400    

Globe Life Inc.

    6.125%           BBB+        1,752,720  
  200,629    

Maiden Holdings North America Ltd, (5)

    7.750%           N/R        4,700,737  
  200,600    

Reinsurance Group of America Inc., (5)

    5.750%                 BBB+        5,917,700  
 

Total Insurance

                               42,773,602  
      Oil, Gas & Consumable Fuels – 1.4%                           
  115,200    

NuStar Energy LP

    8.500%           B1        2,845,440  
  88,000    

NuStar Energy LP

    7.625%           B1        2,000,240  
  124,769    

NuStar Logistics LP, (5)

    8.565%                 B1        3,302,636  
 

Total Oil, Gas & Consumable Fuels

                               8,148,316  
      Thrifts & Mortgage Finance – 2.1%                           
  142,108    

Federal Agricultural Mortgage Corp

    6.000%           N/R        3,808,494  
  293,887    

New York Community Bancorp Inc.

    6.375%                 Ba2        8,399,291  
 

Total Thrifts & Mortgage Finance

                               12,207,785  
      Trading Companies & Distributors – 0.5%                           
  96,500    

Air Lease Corp, (5)

    6.150%                 BB+        2,689,455  
      U.S. Agency – 3.2%                           
  177,100    

Farm Credit Bank of Texas, 144A, (5), (8)

    6.750%                 Baa1        19,126,800  
 

Total $25 Par (or similar) Retail Preferred (cost $185,838,780)

                               200,856,703  
 

Total Long-Term Investments (cost $815,655,790)

                               881,624,546  
 

Borrowings – (39.8)% (9), (10)

                               (235,000,000
 

Reverse Repurchase Agreements – (10.2)% (11)

                               (60,000,000
 

Other Assets Less Liabilities – 0.7% (12)

                               4,028,803  
 

Net Assets Applicable to Common Shares – 100%

                             $ 590,653,349  

Investments in Derivatives

Futures Contracts

 

Description    Contract
Position
     Number of
Contracts
     Expiration
Date
     Notional
Amount
     Value      Unrealized
Appreciation
(Depreciation)
     Variation
Margin
Receivable/
(Payable)
 

U.S. Treasury 10-Year Note

     Short        (248      3/20      $ (32,118,311    $ (32,650,750    $ (532,439    $ (85,250

Interest Rate Swaps – OTC Uncleared

 

Counterparty   Notional
Amount
    Fund
Pay/Receive
Floating Rate
    Floating Rate Index     Fixed Rate
(Annualized)
    Fixed Rate
Payment
Frequency
    Effective
Date (13)
    Optional
Termination
Date
    Maturity
Date
    Value     Unrealized
Appreciation
(Depreciation)
 

Morgan Stanley Capital Services, LLC

  $ 112,000,000       Receive       1-Month LIBOR       1.928     Monthly       6/01/18       3/01/23       3/01/24     $ (3,376,252   $ (3,376,252

Morgan Stanley Capital Services, LLC

    45,000,000       Receive       1-Month LIBOR       2.333     Monthly       7/01/19       10/01/23       7/01/24       (2,219,357     (2,219,357

Total

  $ 157,000,000                                                             $ (5,595,609   $ (5,595,609

Total unrealized depreciation on interest rate swaps

 

                                                  $ (5,595,609

 

40


For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

(1)

All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

 

(2)

For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

 

(3)

Investment, or portion of investment, is hypothecated as described in Notes to Financial Statements, Note 8 – Fund Leverage, Rehypothecation. The total value of investments hypothecated as of the end of the reporting period was $216,188,387.

 

(4)

Perpetual security. Maturity date is not applicable.

 

(5)

Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in reverse repurchase agreements. As of the end of the reporting period, investments with a value of $153,041,566 have been pledged as collateral for reverse repurchase agreements.

 

(6)

Variable rate security. The rate shown is the coupon as of the end of the reporting period.

 

(7)

Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level.

 

(8)

For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 3 – Investment Valuation and Fair Value Measurements for more information.

 

(9)

Borrowings as a percentage of Total Investments is 26.7%.

 

(10)

The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for borrowings. As of the end of the reporting period, investments with a value of $529,758,190 have been pledged as collateral for borrowings.

 

(11)

Reverse Repurchase Agreements as a percentage of Total Investments is 6.8%.

 

(12)

Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable.

 

(13)

Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract.

 

144A

Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

 

Reg S

Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

 

LIBOR

London Inter-Bank Offered Rate

 

See accompanying notes to financial statements.

 

41


JPS   

Nuveen Preferred & Income
Securities Fund

 

Portfolio of Investments    January 31, 2020

     (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 154.4% (98.3% of Total Investments)

 

 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 71.5% (45.5% of Total Investments)  

 

      Automobiles – 0.0%                           
$ 1,000    

General Motors Financial Co Inc., (3)

    5.750%        N/A (4)        BB+      $ 1,006,500  
      Banks – 25.6%                           
  19,300    

Bank of America Corp

    6.500%        N/A (4)        BBB–        21,809,000  
  17,000    

Bank of America Corp

    6.300%        N/A (4)        BBB–        19,794,290  
  12,300    

Bank of America Corp

    6.100%        N/A (4)        BBB–        13,788,423  
  7,000    

Citigroup Inc.

    6.250%        N/A (4)        BB+        7,989,660  
  48,000    

Citigroup Inc., (3), (5)

    6.125%        N/A (4)        Ba1        49,466,400  
  8,500    

Citigroup Inc.

    5.950%        N/A (4)        BB+        9,286,250  
  24,389    

Citizens Financial Group Inc.

    5.500%        N/A (4)        BB+        24,480,459  
  10,000    

Citizens Financial Group Inc.

    6.000%        N/A (4)        BB+        10,550,000  
  1,000    

Citizens Financial Group Inc., (5)

    6.375%        N/A (4)        BB+        1,070,000  
  18,000    

CoBank ACB

    6.250%        N/A (4)        BBB+        19,931,400  
  1,250    

DNB Bank ASA

    2.188%        N/A (4)        Baa2        960,938  
  1,250    

DNB Bank ASA

    2.188%        N/A (4)        Baa2        960,938  
  25,580    

First Union Capital II, (3), (5)

    7.950%        11/15/29        Baa1        35,687,810  
  30,000    

HSBC Capital Funding Dollar 1 LP, 144A, (3)

    10.176%        N/A (4)        Baa2        49,511,100  
  3,600    

JPMorgan Chase & Co

    8.750%        9/01/30        Baa1        5,388,950  
  7,000    

JPMorgan Chase & Co, (5)

    6.100%        N/A (4)        Baa2        7,723,870  
  54,000    

JPMorgan Chase & Co

    6.750%        N/A (4)        Baa2        60,877,440  
  12,338    

JPMorgan Chase & Co, (3-Month LIBOR reference rate + 3.470% spread), (6)

    5.240%        N/A (4)        Baa2        12,412,151  
  4,900    

JPMorgan Chase & Co

    5.300%        N/A (4)        Baa2        4,934,643  
  8,000    

KeyCorp Capital III

    7.750%        7/15/29        Baa2        10,429,464  
  12,000    

Lloyds Bank PLC, 144A, (5)

    12.000%        N/A (4)        Baa3        14,672,640  
  20,900    

Lloyds Bank PLC, Reg S

    12.000%        N/A (4)        Baa3        25,557,356  
  2,450    

Lloyds Banking Group PLC, 144A

    6.657%        N/A (4)        Baa3        2,989,000  
  28,700    

PNC Financial Services Group Inc., (3)

    6.750%        N/A (4)        Baa2        30,576,406  
  25,000    

Standard Chartered PLC, 144A, (3)

    7.014%        N/A (4)        Ba1        30,712,250  
  42,000    

Truist Financial Corp

    4.800%        N/A (4)        Baa2        43,309,140  
  16,823    

Wells Fargo & Co, (3-Month LIBOR reference rate + 3.770% spread), (6)

    5.664%        N/A (4)        Baa2        16,928,985  
  3,000    

Wells Fargo & Co, (3)

    5.875%        N/A (4)        Baa2        3,388,830  
 

Total Banks

                               535,187,793  
      Capital Markets – 3.2%                           
  10,400    

Bank of New York Mellon Corp

    4.950%        N/A (4)        Baa1        10,510,136  
  18,700    

Charles Schwab Corp

    7.000%        N/A (4)        BBB        20,394,781  
  6,000    

Goldman Sachs Group Inc.

    5.500%        N/A (4)        Ba1        6,456,660  
  6,600    

Goldman Sachs Group Inc.

    4.950%        N/A (4)        Ba1        6,897,000  
  5,000    

Goldman Sachs Group Inc.

    5.375%        N/A (4)        Ba1        5,037,250  
  942    

Goldman Sachs Group Inc., (3-Month LIBOR reference rate + 3.884% spread), (6)

    5.785%        N/A (4)        Ba1        943,178  
  5,900    

Morgan Stanley

    5.550%        N/A (4)        BB+        5,984,075  
  10,000    

State Street Corp, (3-Month LIBOR reference rate + 1.000% spread), (6)

    2.894%        6/15/47        A3        8,875,000  
  2,600    

State Street Corp

    5.250%        N/A (4)        Baa1        2,648,750  
 

Total Capital Markets

                               67,746,830  

 

42


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Consumer Finance – 0.8%                           
  16,987    

Capital One Financial Corp

    5.550%        N/A (4)        Baa3      $ 17,114,403  
      Diversified Financial Services – 3.8%                           
  2,861    

Bank of America Corp, (5)

    8.050%        6/15/27        Baa2        3,772,458  
  10,000    

Citigroup Inc.

    4.700%        N/A (4)        BB+        10,184,500  
  9,250    

Citigroup Inc.

    5.950%        N/A (4)        BB+        9,874,375  
  6,000    

JP Morgan Chase & Company

    6.000%        N/A (4)        Baa2        6,468,000  
  14,900    

JPMorgan Chase & Co

    4.600%        N/A (4)        BBB        15,211,410  
  26,440    

Voya Financial Inc., (5)

    5.650%        5/15/53        BBB–        28,092,500  
  5,000    

Voya Financial Inc.

    6.125%        N/A (4)        BBB–        5,418,750  
 

Total Diversified Financial Services

                               79,021,993  
      Electric Utilities – 3.9%                           
  7,800    

Duke Energy Corp

    4.875%        N/A (4)        BBB        8,278,998  
  33,455    

Emera Inc., (5)

    6.750%        6/15/76        BBB–        38,479,941  
  1,000    

NextEra Energy Capital Holdings Inc., (3-Month LIBOR reference rate + 2.068% spread), (5), (6)

    3.977%        10/01/66        BBB        945,000  
  11,450    

NextEra Energy Capital Holdings Inc., (3-Month LIBOR reference rate + 2.125% spread), (5), (6)

    4.019%        6/15/67        BBB        10,777,083  
  1,600    

NextEra Energy Capital Holdings Inc.

    4.800%        12/01/77        BBB        1,680,802  
  21,482    

PPL Capital Funding Inc., (3-Month LIBOR reference rate + 2.665% spread), (5), (6)

    4.626%        3/30/67        BBB        21,015,841  
 

Total Electric Utilities

                               81,177,665  
      Food Products – 0.3%                           
  6,705    

Dairy Farmers of America Inc., 144A, (5)

    7.125%        N/A (4)        BB+        6,188,715  
      Insurance – 24.7%                           
  3,598    

ACE Capital Trust II

    9.700%        4/01/30        BBB+        5,504,940  
  9,800    

AIG Life Holdings Inc., (5)

    8.500%        7/01/30        Baa2        13,351,311  
  4,400    

Allstate Corp, (5)

    5.750%        8/15/53        Baa1        4,763,000  
  1,200    

Allstate Corp

    6.500%        5/15/57        Baa1        1,554,000  
  20,000    

American International Group Inc., (5)

    5.750%        4/01/48        Baa2        22,602,000  
  13,605    

American International Group Inc., (5)

    8.175%        5/15/58        Baa2        18,978,975  
  2,299    

Aon Corp, (5)

    8.205%        1/01/27        BBB        2,977,205  
  6,210    

Argentum Netherlands BV for Swiss Re Ltd, Reg S

    5.750%        8/15/50        BBB+        6,854,287  
  2,100    

Argentum Netherlands BV for Swiss Re Ltd, Reg S

    5.625%        8/15/52        BBB+        2,346,709  
  16,550    

AXA SA, (5)

    8.600%        12/15/30        A3        24,533,058  
  17,819    

AXA SA, 144A

    6.379%        N/A (4)        Baa1        23,610,175  
  900    

AXA SA, Reg S

    5.500%        N/A (4)        A3        918,054  
  2,200    

AXIS Specialty Finance LLC

    4.900%        1/15/40        BBB        2,277,840  
  14,550    

Cloverie PLC for Zurich Insurance Co Ltd, Reg S

    5.625%        6/24/46        A        16,442,664  
  1,200    

Everest Reinsurance Holdings Inc., (3-Month LIBOR reference rate + 2.385% spread), (5), (6)

    4.295%        5/15/37        BBB        1,160,724  
  5,521    

Hartford Financial Services Group Inc., (3-Month LIBOR reference rate + 2.125% spread), 144A, (5), (6)

    4.035%        2/12/47        BBB–        5,313,963  
  31,200    

Legal & General Group PLC, Reg S

    5.250%        3/21/47        A3        34,008,000  
  30,860    

Liberty Mutual Group Inc., 144A, (5)

    7.800%        3/15/37        Baa3        40,889,500  
  10,390    

Lincoln National Corp, (3-Month LIBOR reference rate + 2.040% spread), (5), (6)

    3.859%        4/20/67        BBB        8,935,400  
  19,800    

M&G PLC, Reg S

    6.500%        10/20/48        A3        23,091,750  
  6,800    

Meiji Yasuda Life Insurance Co, 144A, (5)

    5.100%        4/26/48        A–        7,729,968  
  29,600    

MetLife Capital Trust IV, 144A, (3), (5)

    7.875%        12/15/37        BBB        40,256,000  
  36,531    

MetLife Inc., 144A

    9.250%        4/08/38        BBB        54,979,155  
  3,000    

MetLife Inc., (5)

    10.750%        8/01/39        BBB        5,024,250  
  4,652    

MetLife Inc.

    5.250%        N/A (4)        BBB        4,687,123  
  15,000    

Mitsui Sumitomo Insurance Co Ltd, 144A

    4.950%        N/A (4)        A–        16,865,550  
  41,904    

Nationwide Financial Services Inc., (3), (5)

    6.750%        5/15/37        Baa2        49,312,627  
  3,890    

Progressive Corp

    5.375%        N/A (4)        BBB+        4,094,225  
  6,225    

Prudential Financial Inc., (5)

    5.875%        9/15/42        BBB+        6,691,875  
  27,180    

Prudential Financial Inc., (5)

    5.625%        6/15/43        BBB+        29,394,376  

 

43


JPS    Nuveen Preferred & Income Securities Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Insurance (continued)                           
  24,400    

Swiss Re Finance Luxembourg SA, 144A

    5.000%        4/02/49        A      $ 27,724,500  
  8,700    

Willow No 2 Ireland PLC for Zurich Insurance Co Ltd, Reg S

    4.250%        10/01/45        A        9,126,300  
 

Total Insurance

                               515,999,504  
      Metals & Mining – 1.2%                           
  21,315    

BHP Billiton Finance USA Ltd, 144A, (5)

    6.750%        10/19/75        BBB+        25,045,125  
      Multi-Utilities – 1.6%                           
  27,720    

Dominion Energy Inc.

    4.650%        N/A (4)        BBB–        28,755,896  
  2,000    

NiSource Inc.

    5.650%        N/A (4)        BBB–        2,090,000  
  3,000    

WEC Energy Group Inc., (3-Month LIBOR reference rate + 2.113% spread), (5), (6)

    4.022%        5/15/67        BBB        2,790,717  
 

Total Multi-Utilities

                               33,636,613  
      Oil, Gas & Consumable Fuels – 1.9%                           
  8,200    

Enbridge Inc., (5)

    6.250%        3/01/78        BBB–        8,950,382  
  3,000    

Enterprise Products Operating LLC, (5)

    5.250%        8/16/77        Baa2        3,099,000  
  24,530    

Transcanada Trust, (5)

    5.875%        8/15/76        BBB        26,615,050  
  1,500    

Transcanada Trust

    5.500%        9/15/79        BBB        1,618,125  
 

Total Oil, Gas & Consumable Fuels

                               40,282,557  
      Road & Rail – 1.4%                           
  25,485    

BNSF Funding Trust I

    6.613%        12/15/55        A–        28,543,200  
      U.S. Agency – 0.2%                           
  4,000    

Farm Credit Bank of Texas, 144A

    6.200%        N/A (4)        BBB        4,270,300  
      Wireless Telecommunication Services – 2.9%                           
  59    

Centaur Funding Corp, 144A, (5)

    9.080%        4/21/20        BBB–        60,441,402  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $1,335,338,635)

 

              1,495,662,600  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 62.1% (39.5% of Total Investments) (7)

 

     
      Banks – 53.1%                           
$ 46,739    

Australia & New Zealand Banking Group Ltd/United Kingdom, 144A, (3)

    6.750%        N/A (4)        Baa2      $ 53,691,426  
  12,800    

Banco Bilbao Vizcaya Argentaria SA

    6.500%        N/A (4)        Ba2        13,632,000  
  5,000    

Banco Santander SA, Reg S

    7.500%        N/A (4)        Ba1        5,563,580  
  7,000    

Barclays Bank PLC, (5)

    7.625%        11/21/22        BBB+        7,894,390  
  26,000    

Barclays PLC

    8.000%        N/A (4)        BB+        29,343,860  
  63,300    

Barclays PLC

    7.750%        N/A (4)        BB+        69,313,500  
  31,100    

Barclays PLC, Reg S

    7.875%        N/A (4)        BB+        33,665,128  
  5,500    

BNP Paribas SA, 144A

    7.000%        N/A (4)        BBB–        6,503,750  
  38,585    

BNP Paribas SA, 144A

    7.375%        N/A (4)        BBB–        44,831,911  
  10,000    

BNP Paribas SA, Reg S, (5)

    7.375%        N/A (4)        BBB–        11,619,000  
  58,750    

BNP Paribas SA, 144A, (3)

    7.625%        N/A (4)        BBB–        61,834,375  
  19,653    

Credit Agricole SA, 144A, (3)

    7.875%        N/A (4)        BBB–        22,355,287  
  31,550    

Credit Agricole SA, 144A, (3)

    8.125%        N/A (4)        BBB–        38,280,246  
  4,466    

Credit Agricole SA, Reg S

    8.125%        N/A (4)        BBB–        5,418,687  
  11,588    

Danske Bank A/S, Reg S

    6.125%        N/A (4)        BB+        12,326,735  
  600    

Danske Bank A/S, Reg S

    7.000%        N/A (4)        BB+        668,250  
  11,000    

DNB Bank ASA, Reg S

    5.750%        N/A (4)        BBB        11,033,000  
  17,200    

DNB Bank ASA, Reg S

    6.500%        N/A (4)        BBB        18,296,500  
  4,800    

HSBC Holdings PLC, (5)

    6.250%        N/A (4)        Baa3        5,082,000  
  10,000    

HSBC Holdings PLC, (5)

    6.500%        N/A (4)        Baa3        11,137,500  
  5,000    

HSBC Holdings PLC

    6.375%        N/A (4)        Baa3        5,465,600  
  1,600    

HSBC Holdings PLC, (5)

    6.000%        N/A (4)        Baa3        1,716,000  
  66,505    

HSBC Holdings PLC, (3)

    6.875%        N/A (4)        Baa3        69,719,187  

 

44


Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks (continued)                           
$ 9,700    

ING Groep NV, Reg S

    6.875%        N/A (4)        BBB–      $ 10,379,000  
  26,700    

ING Groep NV

    6.500%        N/A (4)        BBB–        29,402,040  
  3,134    

ING Groep NV

    6.000%        N/A (4)        BBB–        3,149,983  
  9,600    

Intesa Sanpaolo SpA, 144A

    7.700%        N/A (4)        BB–        10,764,000  
  73,428    

Lloyds Banking Group PLC, (3)

    7.500%        N/A (4)        Baa3        82,287,088  
  4,800    

Lloyds Banking Group PLC

    7.500%        N/A (4)        Baa3        5,490,000  
  5,075    

Macquarie Bank Ltd/London, 144A

    6.125%        N/A (4)        BB+        5,392,188  
  35,090    

Nordea Bank Abp, 144A, (3)

    6.125%        N/A (4)        BBB        37,897,200  
  18,988    

Nordea Bank Abp, Reg S, (3), (8)

    6.125%        N/A (4)        BBB        20,507,040  
  26,400    

Nordea Bank Abp, 144A

    6.625%        N/A (4)        BBB        29,782,104  
  72,886    

Royal Bank of Scotland Group PLC

    7.500%        N/A (4)        BB+        74,562,378  
  22,075    

Royal Bank of Scotland Group PLC, (3)

    8.000%        N/A (4)        BB+        25,758,876  
  12,000    

Royal Bank of Scotland Group PLC

    8.625%        N/A (4)        BB+        12,960,000  
  1,000    

Skandinaviska Enskilda Banken AB, Reg S

    5.625%        N/A (4)        BBB        1,041,250  
  5,400    

Societe Generale SA, 144A

    7.375%        N/A (4)        BB+        5,749,920  
  73,300    

Societe Generale SA, 144A, (3)

    8.000%        N/A (4)        BB+        87,135,375  
  9,000    

Societe Generale SA, Reg S

    7.875%        N/A (4)        BB+        10,170,000  
  4,550    

Societe Generale SA, 144A, (3)

    6.750%        N/A (4)        BB+        5,113,063  
  15,000    

Standard Chartered PLC, 144A

    7.500%        N/A (4)        Ba1        16,031,250  
  13,000    

Standard Chartered PLC, 144A

    7.750%        N/A (4)        Ba1        14,365,000  
  4,700    

Standard Chartered PLC, Reg S

    7.500%        N/A (4)        Ba1        5,023,125  
  2,000    

Standard Chartered PLC, Reg S, (3)

    6.500%        N/A (4)        Ba1        2,006,776  
  25,786    

Svenska Handelsbanken AB, Reg S

    5.250%        N/A (4)        BBB+        26,353,705  
  12,000    

Swedbank AB, Reg S

    6.000%        N/A (4)        BBB        12,570,000  
  16,609    

UBS Group AG, Reg S

    7.000%        N/A (4)        BBB–        18,921,272  
  3,000    

UBS Group AG, 144A

    7.000%        N/A (4)        BBB–        3,303,330  
  15,000    

UniCredit SpA, Reg S

    8.000%        N/A (4)        B+        16,631,250  
  1,008,957    

Total Banks

                               1,112,139,125  
      Capital Markets – 9.0%                           
  3,000    

Credit Suisse Group AG, 144A

    6.375%        N/A (4)        Ba2        3,326,250  
  12,000    

Credit Suisse Group AG, 144A

    7.250%        N/A (4)        BB        13,605,000  
  58,000    

Credit Suisse Group AG, 144A, (3), (5)

    7.500%        N/A (4)        BB        65,751,468  
  20,000    

Credit Suisse Group AG, Reg S

    7.500%        N/A (4)        BB        22,673,320  
  1,700    

Credit Suisse Group AG, Reg S

    7.125%        N/A (4)        BB        1,833,875  
  4,900    

Credit Suisse Group AG, 144A

    6.250%        N/A (4)        BB        5,401,976  
  11,000    

Credit Suisse Group AG, 144A

    7.500%        N/A (4)        BB        12,120,350  
  12,178    

UBS Group AG, Reg S

    7.125%        N/A (4)        BBB–        12,191,517  
  11,700    

UBS Group AG, Reg S

    6.875%        N/A (4)        BBB–        12,144,460  
  35,100    

UBS Group AG, Reg S

    6.875%        N/A (4)        BBB–        39,364,633  
  169,578    

Total Capital Markets

                               188,412,849  
$ 1,178,535    

Total Contingent Capital Securities (cost $1,190,985,315)

                               1,300,551,974  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 17.7% (11.3% of Total Investments)  

 

      Banks – 6.4%                           
  161,300    

Bank of America Corp

    5.375%           BBB–      $ 4,314,775  
  645,113    

Citigroup Inc.

    6.875%           BB+        18,746,984  
  47,500    

CoBank ACB, 144A, (9)

    6.250%           BBB+        5,082,500  
  53,000    

CoBank ACB, (9)

    6.200%           BBB+        5,777,000  
  84,563    

Fifth Third Bancorp

    6.625%           Baa3        2,472,622  
  724,000    

KeyCorp

    6.125%           Baa3        21,799,640  
  2,158,300    

PNC Financial Services Group Inc.

    6.125%           Baa2        59,310,084  
  189,200    

Regions Financial Corp

    5.700%           BB+        5,394,092  
  249,285    

Wells Fargo & Co

    5.850%           Baa2        6,775,566  
  182,000    

Wells Fargo & Co

    5.625%                 Baa2        4,823,000  
 

Total Banks

                               134,496,263  
      Capital Markets – 1.7%                           
  124,248    

Affiliated Managers Group Inc.

    5.875%           Baa1        3,403,153  
  369,239    

Goldman Sachs Group Inc.

    5.500%           Ba1        9,943,606  

 

45


JPS    Nuveen Preferred & Income Securities Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Capital Markets (continued)                           
  38,534    

Morgan Stanley

    7.125%           BB+      $ 1,134,826  
  640,000    

Morgan Stanley

    5.850%           BB+        18,406,400  
  74,642    

State Street Corp

    5.900%                 Baa1        2,100,426  
 

Total Capital Markets

                               34,988,411  
      Consumer Finance – 0.2%                           
  111,540    

Capital One Financial Corp

    5.000%                 Baa3        2,849,847  
      Diversified Financial Services – 1.5%                           
  105,300    

AgriBank FCB, (9)

    6.875%           BBB+        11,372,400  
  239,000    

Equitable Holdings Inc.

    5.250%           BBB–        6,273,750  
  471,970    

National Rural Utilities Cooperative Finance Corp

    5.500%           A3        13,134,925  
  39,705    

Voya Financial Inc.

    5.350%                 BBB–        1,109,755  
 

Total Diversified Financial Services

                               31,890,830  
      Electric Utilities – 1.8%                           
  160,000    

Alabama Power Co

    5.000%           A3        4,430,400  
  200,000    

Duke Energy Corp

    5.750%           BBB        5,650,000  
  16,000    

Entergy Texas Inc.

    5.375%           BBB–        426,400  
  299,756    

Integrys Holding Inc., (5), (9)

    6.000%           BBB        8,243,290  
  114,962    

Interstate Power & Light Co

    5.100%           BBB        2,926,933  
  202,000    

NextEra Energy Capital Holdings Inc.

    5.650%           BBB        5,589,340  
  86,891    

Southern Co

    5.250%           BBB        2,304,349  
  310,000    

Southern Co

    4.950%                 BBB        7,901,900  
 

Total Electric Utilities

                               37,472,612  
      Equity Real Estate Investment Trust – 1.0%                           
  2,100    

Kimco Realty Corp

    5.250%           Baa2        55,797  
  82,301    

Prologis Inc., (9)

    8.540%           BBB        6,007,973  
  245,000    

Public Storage

    5.600%           A3        6,864,900  
  4,343    

Public Storage

    4.875%           A3        114,091  
  213,400    

Public Storage

    4.750%           A3        5,576,142  
  69,865    

SITE Centers Corp, (5)

    6.250%                 Ba1        1,812,997  
 

Total Equity Real Estate Investment Trust

                               20,431,900  
      Food Products – 0.6%                           
  91,900    

Dairy Farmers of America Inc., 144A, (9)

    7.875%           BB+        9,190,000  
  32,500    

Dairy Farmers of America Inc., 144A, (9)

    7.875%                 BB+        3,233,750  
 

Total Food Products

                               12,423,750  
      Insurance – 2.5%                           
  608,741    

Allstate Corp, (5)

    5.100%           Baa1        16,716,028  
  73,339    

American Financial Group Inc./OH

    5.875%           Baa2        2,033,690  
  39,193    

Arch Capital Group Ltd

    5.250%           BBB        1,016,666  
  1,331    

Arch Capital Group Ltd

    5.450%           BBB        35,391  
  307,730    

Hartford Financial Services Group Inc., (5)

    7.875%           Baa2        8,745,687  
  30,000    

MetLife Inc.

    4.750%           BBB        767,400  
  416,864    

Prudential PLC

    6.750%           BBB+        11,467,929  
  416,100    

Reinsurance Group of America Inc., (5)

    6.200%           BBB+        11,513,487  
  10,000    

WR Berkley Corp, (5)

    5.625%                 Baa2        256,900  
 

Total Insurance

                               52,553,178  
      Multi-Utilities – 0.9%                           
  188,300    

Algonquin Power & Utilities Corp

    6.200%           BB+        5,458,817  
  2,000    

Algonquin Power & Utilities Corp

    6.875%           BB+        56,840  
  280,000    

DTE Energy Co

    5.250%           BBB–        7,445,200  
  244,972    

WR Berkley Corp

    5.100%                 BBB–        6,359,473  
 

Total Multi-Utilities

                               19,320,330  

 

46


Shares     Description (1)   Coupon              Ratings (2)      Value  
      U.S. Agency – 0.9%                           
  177,750    

Farm Credit Bank of Texas, 144A, (3), (5), (9)

    6.750%                 Baa1      $ 19,197,000  
      Wireless Telecommunication Services – 0.2%                           
  46,323    

Telephone & Data Systems Inc.

    7.000%           BB+        1,192,817  
  131,990    

Telephone & Data Systems Inc., (5)

    6.875%           BB+        3,421,181  
  11,826    

United States Cellular Corp, (5)

    7.250%                 Ba1        310,669  
 

Total Wireless Telecommunication Services

                               4,924,667  
 

Total $25 Par (or similar) Retail Preferred (cost $338,061,824)

 

              370,548,788  
Shares     Description (1), (10)                           Value  
 

INVESTMENT COMPANIES – 1.3% (0.8% of Total Investments)

 

     
  966,571    

BlackRock Credit Allocation Income Trust

           $ 13,899,291  
  646,421    

John Hancock Preferred Income Fund III

                               12,682,780  
 

Total Investment Companies (cost $34,063,200)

                               26,582,071  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

CONVERTIBLE PREFERRED SECURITIES – 0.9% (0.6% of Total Investments)

 

     
      Banks – 0.9%                           
  12,640    

Wells Fargo & Co

    7.500%                 Baa2      $ 19,535,878  
 

Total Convertible Preferred Securities (cost $15,131,410)

                               19,535,878  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 0.9% (0.6% of Total Investments)

 

     
      Insurance – 0.8%                           
$ 5,000    

AIG Life Holdings Inc., 144A, (5), (11)

    8.125%        3/15/46        Baa2      $ 7,062,500  
  6,150    

Liberty Mutual Insurance Co, 144A, (5)

    7.697%        10/15/97        BBB+        9,396,628  
  11,150    

Total Insurance

                               16,459,128  
      Wireless Telecommunication Services – 0.1%                           
  1,600    

Koninklijke KPN NV, 144A, (5)

    7.000%        3/28/73        BB+        1,764,000  
$ 12,750    

Total Corporate Bonds (cost $14,858,880)

                               18,223,128  
 

Total Long-Term Investments (cost $2,928,439,264)

                               3,231,104,439  
Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
 

SHORT-TERM INVESTMENTS – 2.7% (1.7% of Total Investments)

 

     
      REPURCHASE AGREEMENTS – 2.7% (1.7% of Total Investments)                
$ 57,092    

Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/20, repurchase price $57,095,470,
collateralized by $57,415,000 U.S. Treasury Notes,
1.625%, due 10/31/26, value $58,235,747

    0.650%        2/03/20               $ 57,092,377  
 

Total Short-Term Investments (cost $57,092,377)

 

              57,092,377  
 

Total Investments (cost $2,985,531,641) – 157.1%

 

              3,288,196,816  
 

Borrowings – (43.4)% (12), (13)

 

             
(908,300,000

 

Reverse Repurchase Agreements – (14.8)% (8)

 

              (310,000,000
 

Other Assets Less Liabilities – 1.1% (14)

 

              23,432,804  
 

Net Assets Applicable to Common Shares – 100%

 

            $ 2,093,329,620  

 

47


JPS    Nuveen Preferred & Income Securities Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Investments in Derivatives

Interest Rate Swaps – OTC Uncleared

 

Counterparty  

Notional

Amount

    Fund
Pay/Receive
Floating Rate
    Floating Rate Index     Fixed Rate
(Annualized)
    Fixed Rate
Payment
Frequency
    Effective
Date (15)
    Optional
Termination
Date
    Maturity
Date
    Value     Unrealized
Appreciation
(Depreciation)
 

Morgan Stanley Capital Services, LLC

  $ 521,000,000       Receive       1-Month LIBOR       1.994     Monthly       6/01/18       7/01/25       7/01/27     $ (30,289,081   $ (30,289,081

Morgan Stanley Capital Services, LLC

    90,000,000       Receive       1-Month LIBOR       2.364     Monthly       7/01/19       7/01/26       7/01/28       (8,228,422     (8,228,422

Total

  $ 611,000,000                                                             $ (38,517,503   $ (38,517,503

Total unrealized depreciation on interest rate swaps

 

                                                  $ (38,517,503

 

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

(1)

All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

 

(2)

For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

 

(3)

Investment, or portion of investment, is hypothecated as described in Notes to Financial Statements, Note 8 – Fund Leverage, Rehypothecation. The total value of investments hypothecated as of the end of the reporting period was $754,517,686.

 

(4)

Perpetual security. Maturity date is not applicable.

 

(5)

Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in reverse repurchase agreements. As of the end of the reporting period, investments with a value of $488,508,012 have been pledged as collateral for reverse repurchase agreements.

 

(6)

Variable rate security. The rate shown is the coupon as of the end of the reporting period.

 

(7)

Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level.

 

(8)

Reverse Repurchase Agreements as a percentage of Total Investments is 9.4%.

 

(9)

For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 3 – Investment Valuation and Fair Value Measurements for more information.

 

(10)

A copy of the most recent financial statements for these investment companies can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov.

 

(11)

Investment, or portion of investment, has been pledged to collateralized the net payment obligations for investments in derivatives.

 

(12)

Borrowings as a percentage of Total Investments is 27.6%.

 

(13)

The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for borrowings. As of the end of the reporting period, investments with a value of $1,899,709,084 have been pledged as collateral for borrowings.

 

(14)

Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable.

 

(15)

Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract.

 

144A

Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

 

Reg S

Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

 

LIBOR

London Inter-Bank Offered Rate

 

See accompanying notes to financial statements.

 

48


JPT   

Nuveen Preferred and
Income 2022 Term Fund

 

Portfolio of Investments    January 31, 2020

     (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 124.2% (100.0% of Total Investments)

 

 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 87.7% (70.6% of Total Investments)  

 

      Automobiles – 2.0%                           
$ 3,484    

General Motors Financial Co Inc.

    5.750%        N/A (3)        BB+      $ 3,506,646  
      Banks – 33.0%                           
  1,540    

Bank of America Corp

    6.250%        N/A (3)        BBB–        1,715,175  
  2,960    

Bank of America Corp

    6.500%        N/A (3)        BBB–        3,344,800  
  1,835    

Bank of America Corp

    6.300%        N/A (3)        BBB–        2,136,619  
  465    

Bank of America Corp

    6.100%        N/A (3)        BBB–        521,270  
  1,695    

Barclays Bank PLC, 144A

    10.179%        6/12/2021        A–        1,876,390  
  525    

BNP Paribas SA, 144A

    7.195%        N/A (3)        BBB        591,938  
  660    

CIT Group Inc.

    5.800%        N/A (3)        Ba3        676,500  
  1,530    

Citigroup Inc.

    6.250%        N/A (3)        BB+        1,746,311  
  1,970    

Citigroup Inc.

    5.000%        N/A (3)        BB+        2,063,299  
  2,712    

Citigroup Inc.

    5.950%        N/A (3)        BB+        2,962,860  
  910    

Citigroup Inc.

    6.300%        N/A (3)        BB+        987,905  
  890    

Citizens Financial Group Inc.

    6.375%        N/A (3)        BB+        952,300  
  933    

CoBank ACB

    6.250%        N/A (3)        BBB+        1,033,111  
  1,000    

Commerzbank AG, 144A

    8.125%        9/19/23        BBB        1,175,531  
  805    

First Union Capital II

    7.950%        11/15/29        Baa1        1,123,092  
  805    

JPMorgan Chase & Co

    6.100%        N/A (3)        Baa2        888,245  
  4,085    

JPMorgan Chase & Co

    6.750%        N/A (3)        Baa2        4,605,266  
  1,235    

JPMorgan Chase & Co

    5.300%        N/A (3)        Baa2        1,243,732  
  2,270    

JPMorgan Chase & Co

    5.000%        N/A (3)        Baa2        2,374,420  
  4,845    

Lloyds Bank PLC, 144A

    12.000%        N/A (3)        Baa3        5,924,078  
  1,200    

M&T Bank Corp

    5.125%        N/A (3)        Baa2        1,311,000  
  465    

M&T Bank Corp

    6.450%        N/A (3)        Baa2        516,499  
  1,266    

PNC Financial Services Group Inc.

    5.000%        N/A (3)        Baa2        1,366,482  
  480    

PNC Financial Services Group Inc.

    6.750%        N/A (3)        Baa2        511,382  
  1,835    

Royal Bank of Scotland Group PLC

    7.648%        N/A (3)        BBB–        2,653,318  
  3,925    

Truist Financial Corp

    4.800%        N/A (3)        Baa2        4,047,342  
  1,100    

Truist Financial Corp

    5.050%        N/A (3)        Baa2        1,133,000  
  400    

USB Realty Corp, (3-Month LIBOR reference rate + 1.147% spread), 144A, (4)

    2.978%        N/A (3)        A3        358,404  
  1,035    

Wachovia Capital Trust III

    5.570%        N/A (3)        Baa2        1,051,819  
  661    

Wells Fargo & Co, (3-Month LIBOR reference rate + 3.770% spread), (4)

    5.664%        N/A (3)        Baa2        665,164  
  3,425    

Wells Fargo & Co

    5.875%        N/A (3)        Baa2        3,868,914  
  910    

Wells Fargo & Co

    5.900%        N/A (3)        Baa2        989,088  
  355    

Zions Bancorp NA

    7.200%        N/A (3)        BB+        391,388  
 

Total Banks

                               56,806,642  
      Capital Markets – 5.6%                           
  1,750    

Dresdner Funding Trust I, 144A

    8.151%        6/30/31        Ba1        2,390,938  
  1,328    

Goldman Sachs Group Inc.

    5.500%        N/A (3)        Ba1        1,429,074  
  3,934    

Goldman Sachs Group Inc.

    5.300%        N/A (3)        Ba1        4,278,225  
  1,545    

Goldman Sachs Group Inc.

    5.375%        N/A (3)        Ba1        1,556,510  
 

Total Capital Markets

                               9,654,747  
      Commercial Services & Supplies – 2.0%                           
  2,085    

AerCap Global Aviation Trust, 144A

    6.500%        6/15/45        BB+        2,319,563  
  955    

AerCap Holdings NV

    5.875%        10/10/79        BB+        1,021,850  
 

Total Commercial Services & Supplies

                               3,341,413  

 

49


JPT    Nuveen Preferred and Income 2022 Term Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Consumer Finance – 1.7%                           
  720    

American Express Co, (3-Month LIBOR reference rate + 3.428% spread), (4)

    5.338%        N/A (3)        Baa2      $ 724,500  
  955    

Capital One Financial Corp

    5.550%        N/A (3)        Baa3        962,162  
  1,075    

Discover Financial Services

    5.500%        N/A (3)        Ba2        1,140,844  
 

Total Consumer Finance

                               2,827,506  
      Diversified Financial Services – 4.2%                           
  580    

Citigroup Inc.

    4.700%        N/A (3)        BB+        590,701  
  2    

Compeer Financial ACA, 144A

    6.750%        N/A (3)        BB+        2,180,000  
  1,620    

ILFC E-Capital Trust II, 144A

    4.150%        12/21/65        BB+        1,336,613  
  895    

JPMorgan Chase & Co

    4.600%        N/A (3)        BBB        913,706  
  2,070    

Voya Financial Inc.

    6.125%        N/A (3)        BBB–        2,243,362  
 

Total Diversified Financial Services

                               7,264,382  
      Electric Utilities – 4.2%                           
  725    

AES Gener SA, 144A

    6.350%        10/07/79        BB        757,262  
  1,270    

Electricite de France SA, 144A

    5.250%        N/A (3)        BBB        1,336,040  
  4,500    

Emera Inc.

    6.750%        6/15/76        BBB–        5,175,900  
 

Total Electric Utilities

                               7,269,202  
      Food Products – 4.9%                           
  2,100    

Dairy Farmers of America Inc., 144A

    7.125%        N/A (3)        BB+        1,938,300  
  2,800    

Land O’ Lakes Inc., 144A

    7.250%        N/A (3)        BB        2,653,000  
  1,550    

Land O’ Lakes Inc., 144A

    8.000%        N/A (3)        BB        1,557,750  
  2,525    

Land O’ Lakes Inc., 144A

    7.000%        N/A (3)        BB        2,323,000  
 

Total Food Products

                               8,472,050  
      Independent Power & Renewable Electricity Producers – 0.2%         
  355    

AES Gener SA, 144A

    7.125%        3/26/79        BB        379,837  
      Industrial Conglomerates – 3.2%                           
  5,567    

General Electric Co

    5.000%        N/A (3)        BBB–        5,505,819  
      Insurance – 18.2%                           
  780    

Aegon NV

    5.500%        4/11/48        Baa1        863,078  
  1,530    

American International Group Inc.

    5.750%        4/01/48        Baa2        1,729,053  
  3,230    

Assurant Inc.

    7.000%        3/27/48        BB+        3,654,551  
  7,560    

Assured Guaranty Municipal Holdings Inc., 144A

    6.400%        12/15/66        BBB+        8,028,418  
  2,205    

AXA SA

    8.600%        12/15/30        A3        3,268,604  
  1,045    

AXIS Specialty Finance LLC

    4.900%        1/15/40        BBB        1,081,974  
  1,000    

MetLife Inc., 144A

    9.250%        4/08/38        BBB        1,505,000  
  1,495    

MetLife Inc.

    5.875%        N/A (3)        BBB        1,690,396  
  1,800    

Provident Financing Trust I

    7.405%        3/15/38        Baa3        2,241,000  
  5,000    

QBE Insurance Group Ltd, 144A

    7.500%        11/24/43        Baa1        5,651,750  
  818    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        918,164  
  600    

Swiss Re Finance Luxembourg SA, 144A

    5.000%        4/02/49        A        681,750  
 

Total Insurance

                               31,313,738  
      Metals & Mining – 1.5%                           
  1,000    

BHP Billiton Finance USA Ltd, 144A

    6.250%        10/19/75        BBB+        1,024,700  
  1,250    

BHP Billiton Finance USA Ltd, 144A

    6.750%        10/19/75        BBB+        1,468,750  
 

Total Metals & Mining

                               2,493,450  
      Multi-Utilities – 1.9%                           
  1,495    

CenterPoint Energy Inc.

    6.125%        N/A (3)        BBB–        1,592,175  
  1,529    

NiSource Inc.

    5.650%        N/A (3)        BBB–        1,597,805  
 

Total Multi-Utilities

                               3,189,980  

 

50


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Oil, Gas & Consumable Fuels – 1.1%                           
  865    

Enterprise Products Operating LLC

    5.250%        8/16/77        Baa2      $ 893,545  
  380    

MPLX LP

    6.875%        N/A (3)        BB+        382,850  
  505    

Transcanada Trust

    5.500%        9/15/79        BBB        544,769  
 

Total Oil, Gas & Consumable Fuels

                               1,821,164  
      U.S. Agency – 3.4%                           
  615    

Farm Credit Bank of Texas, 144A

    6.200%        N/A (3)        BBB        656,559  
  5    

Farm Credit Bank of Texas

    10.000%        N/A (3)        Baa1        5,187,500  
 

Total U.S. Agency

                               5,844,059  
      Wireless Telecommunication Services – 0.6%                           
  905    

Vodafone Group PLC

    7.000%        4/04/79        BB+        1,067,198  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $143,590,589)

 

              150,757,833  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 36.5% (29.4% of Total Investments)  

 

      Banks – 8.0%                           
  8,122    

Citigroup Inc.

    7.125%           BB+      $ 236,026  
  16,050    

CoBank ACB, 144A, (5)

    6.250%           BBB+        1,717,350  
  34,640    

CoBank ACB, (5)

    6.200%           BBB+        3,775,760  
  50,000    

Fifth Third Bancorp

    6.625%           Baa3        1,462,000  
  75,000    

Huntington Bancshares Inc./OH

    6.250%           Baa3        1,968,000  
  14,200    

KeyCorp

    6.125%           Baa3        427,562  
  100,000    

Regions Financial Corp

    6.375%           BB+        2,863,000  
  20,000    

Regions Financial Corp

    5.700%           BB+        570,200  
  29,300    

Synovus Financial Corp

    5.875%                 BB–        787,584  
 

Total Banks

                               13,807,482  
      Capital Markets – 5.5%                           
  43,200    

Morgan Stanley

    7.125%           BB+        1,272,240  
  181,800    

Morgan Stanley

    6.875%           BB+        5,228,568  
  58,300    

Morgan Stanley

    5.850%           BB+        1,676,708  
  23,100    

Morgan Stanley

    6.375%           BB+        665,280  
  22,821    

State Street Corp

    5.350%                 Baa1        651,083  
 

Total Capital Markets

                               9,493,879  
      Consumer Finance – 0.8%                           
  52,800    

Synchrony Financial

    5.625%                 BB–        1,375,440  
      Diversified Financial Services – 4.5%                           
  32,620    

AgriBank FCB, (5)

    6.875%           BBB+        3,522,960  
  26,200    

Equitable Holdings Inc.

    5.250%           BBB–        687,750  
  123,600    

Voya Financial Inc.

    5.350%                 BBB–        3,454,620  
 

Total Diversified Financial Services

                               7,665,330  
      Food Products – 3.4%                           
  26,859    

CHS Inc.

    7.875%           N/R        748,023  
  68,707    

CHS Inc.

    7.100%           N/R        1,930,667  
  31,132    

CHS Inc.

    6.750%           N/R        858,309  
  81,867    

CHS Inc.

    7.500%                 N/R        2,310,287  
 

Total Food Products

                               5,847,286  
      Insurance – 9.0%                           
  63,100    

American Equity Investment Life Holding Co

    5.950%           BB        1,657,006  
  73,215    

Aspen Insurance Holdings Ltd

    5.950%           BBB–        2,078,574  
  74,900    

Aspen Insurance Holdings Ltd

    5.625%           BBB–        2,003,575  
  93,200    

Athene Holding Ltd

    6.350%           BBB–        2,665,520  
  109,736    

Delphi Financial Group Inc., (5)

    5.100%           BBB–        2,523,928  

 

51


JPT    Nuveen Preferred and Income 2022 Term Fund (continued)
   Portfolio of Investments    January 31, 2020
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Insurance (continued)                           
  31,900    

Enstar Group Ltd

    7.000%           BB+      $ 924,462  
  65,687    

Maiden Holdings North America Ltd

    7.750%           N/R        1,539,046  
  37,716    

Reinsurance Group of America Inc.

    6.200%           BBB+        1,043,602  
  35,002    

Reinsurance Group of America Inc.

    5.750%                 BBB+        1,032,559  
 

Total Insurance

                               15,468,272  
      Oil, Gas & Consumable Fuels – 2.0%                           
  83,400    

NuStar Energy LP

    8.500%           B1        2,059,980  
  46,600    

NuStar Energy LP

    7.625%           B1        1,059,218  
  9,796    

NuStar Logistics LP

    8.565%                 B1        259,300  
 

Total Oil, Gas & Consumable Fuels

                               3,378,498  
      Thrifts & Mortgage Finance – 2.0%                           
  15,135    

Federal Agricultural Mortgage Corp

    6.000%           N/R        405,618  
  103,800    

New York Community Bancorp Inc.

    6.375%                 Ba2        2,966,604  
 

Total Thrifts & Mortgage Finance

                               3,372,222  
      Trading Companies & Distributors – 0.4%                           
  28,000    

Air Lease Corp

    6.150%                 BB+        780,360  
      U.S. Agency – 0.9%                           
  15,000    

Farm Credit Bank of Texas, 144A, (5)

    6.750%                 Baa1        1,620,000  
 

Total $25 Par (or similar) Retail Preferred (cost $60,357,082)

                               62,808,769  
 

Total Long-Term Investments (cost $203,947,671)

                               213,566,602  
 

Borrowings – (24.7)% (6), (7)

                               (42,500,000
 

Other Assets Less Liabilities – 0.5% (8)

                               890,862  
 

Net Assets Applicable to Common Shares – 100%

                             $ 171,957,464  

Investments in Derivatives

Futures Contracts

 

Description    Contract
Position
     Number of
Contracts
     Expiration
Date
     Notional
Amount
     Value      Unrealized
Appreciation
(Depreciation)
     Variation
Margin
Receivable/
(Payable)
 

U.S. Treasury 10-Year Note

     Short        (62      3/20      $ (8,029,578    $ (8,162,688    $ (133,110    $ (21,313

 

52


For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

(1)

All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

 

(2)

For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

 

(3)

Perpetual security. Maturity date is not applicable.

 

(4)

Variable rate security. The rate shown is the coupon as of the end of the reporting period.

 

(5)

For fair value measurement disclosure purposes, investment classified as Level 2. See Notes to Financial Statements, Note 3 – Investment Valuation and Fair Value Measurements for more information.

 

(6)

Borrowings as a percentage of Total Investments is 19.9%.

 

(7)

The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for borrowings.

 

(8)

Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable.

 

144A

Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

 

LIBOR

London Inter-Bank Offered Rate

 

Reg S

Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

 

See accompanying notes to financial statements.

 

53


Statement of Assets and Liabilities

January 31, 2019

(Unaudited)

 

      JPC        JPI        JPS        JPT  

Assets

                 

Long-term investments, at value (cost $1,576,764,730, $815,655,790, $2,928,439,264 and $203,947,671, respectively)

   $ 1,690,693,043        $ 881,624,546        $ 3,231,104,439        $ 213,566,602  

Short-term investments, at value (cost approximates value)

     9,945,351                   57,092,377           

Cash

                       105,001          24,561  

Cash collateral at brokers for investments in futures(1)

     319,997          289,997                   75,027  

Cash collateral at brokers for investments in swaps(1)

     18,838,147          4,977,983          33,667,821           

Receivable for:

                 

Dividends

     256,243          47,340          1,182,793          7,125  

Interest

     18,038,646          10,305,402          43,384,456          2,010,159  

Investments sold

     2,586,745          2,345,543                   77,858  

Reclaims

     49,905                             

Other assets

     347,563          61,415          637,231          251  

Total assets

     1,741,075,640          899,652,226          3,367,174,118          215,761,583  

Liabilities

                 

Cash overdraft

     5,539,672          762,504                    

Borrowings

     477,000,000          235,000,000          908,300,000          42,500,000  

Reverse repurchase agreements

     135,000,000          60,000,000          310,000,000           

Unrealized depreciation on interest rate swaps

     20,521,352          5,595,609          38,517,503           

Payable for:

                 

Dividends

     6,196,925          3,039,667          11,300,552          784,825  

Investments purchased – regular settlement

     6,543,890          3,076,853                   285,153  

Variation margin on futures contracts

     93,500          85,250                   21,313  

Accrued expenses:

                 

Interest

     1,278,212          616,072          2,480,699          4,005  

Management fees

     1,159,951          633,557          2,199,689          155,119  

Trustees fees

     322,861          57,924          617,921          382  

Other

     241,883          131,441          428,134          53,322  

Total liabilities

     653,898,246          308,998,877          1,273,844,498          43,804,119  

Net assets applicable to common shares

   $ 1,087,177,394        $ 590,653,349        $ 2,093,329,620        $ 171,957,464  

Common shares outstanding

     103,332,549          22,757,308          203,779,868          6,835,876  

Net asset value (“NAV”) per common share outstanding

   $ 10.52        $ 25.95        $ 10.27        $ 25.16  

Net assets applicable to common shares consist of:

                                         

Common shares, $0.01 par value per share

   $ 1,033,325        $ 227,573        $ 2,037,799        $ 68,359  

Paid-in-surplus

     1,023,294,121          534,854,086          1,839,186,122          166,014,186  

Total distributable earnings

     62,849,948          55,571,690          252,105,699          5,874,919  

Net assets applicable to common shares

   $ 1,087,177,394        $ 590,653,349        $ 2,093,329,620        $ 171,957,464  

Authorized shares:

                 

Common

     Unlimited          Unlimited          Unlimited          Unlimited  

Preferred

     Unlimited          Unlimited          Unlimited          Unlimited  
(1)

Cash pledged to collateralize the net payment obligations for investments in derivatives.

 

See accompanying notes to financial statements.

 

54


Statement of Operations

Six Months Ended January 31, 2019

(Unaudited)

 

      JPC        JPI        JPS        JPT  

Investment Income

                 

Dividends

   $ 17,151,359        $ 6,982,396        $ 13,782,236        $ 2,104,376  

Interest

     32,053,443          18,321,589          80,852,701          4,022,589  

Other

     155,639          51,308          154,081           

Tax withheld

     (287        3,234                    

Total investment income

     49,360,154          25,358,527          94,789,018          6,126,965  

Expenses

                 

Management fees

     6,741,462          3,624,457          12,665,001          907,674  

Interest expense

     7,982,844          3,698,457          14,953,363          583,068  

Custodian fees

     95,428          57,246          169,595          21,568  

Trustees fees

     22,347          11,515          42,272          2,898  

Professional fees

     40,390          30,904          55,459          20,802  

Shareholder reporting expenses

     75,165          40,219          147,484          12,925  

Shareholder servicing agent fees

     970          72          2,632          73  

Stock exchange listing fees

     14,656          3,459          28,901          3,459  

Investor relations expenses

     47,681          23,991          91,467          6,324  

Other

     38,937          27,730          26,105          11,315  

Total expenses

     15,059,880          7,518,050          28,182,279          1,570,106  

Net investment income (loss)

     34,300,274          17,840,477          66,606,739          4,556,859  

Realized and Unrealized Gain (Loss)

                 

Net realized gain (loss) from:

                 

Investments and foreign currency

     6,624,498          3,703,136          11,751,558          316,420  

Futures contracts

     (81,131        (74,014                 (18,463

Swaps

     65,039          33,056          120,932           

Change in net unrealized appreciation (depreciation) of:

                 

Investments and foreign currency

     46,958,625          29,284,562          98,041,216          6,394,108  

Futures contracts

     (583,966        (532,439                 (133,110

Swaps

     (10,211,541        (2,622,713        (19,167,746         

Net realized and unrealized gain (loss)

     42,771,524          29,791,588          90,745,960          6,558,955  

Net increase (decrease) in net assets applicable to common shares from operations

   $ 77,071,798        $ 47,632,065        $ 157,352,699        $ 11,115,814  

 

See accompanying notes to financial statements.

 

55


Statement of Changes in Net Assets

(Unaudited)

 

     JPC        JPI  
     

Six Months
Ended
1/31/20

      

Year

Ended

7/31/19

      

Six Months
Ended
1/31/20

      

Year

Ended

7/31/19

 

Operations

                 

Net investment income (loss)

   $ 34,300,274        $ 72,203,943        $ 17,840,477        $ 37,284,869  

Net realized gain (loss) from:

                 

Investments and foreign currency

     6,624,498          (10,856,687        3,703,136          (4,553,349

Futures contracts

     (81,131        (150,472        (74,014        (131,654

Swaps

     65,039          1,058,625          33,056          499,227  

Change in net unrealized appreciation (depreciation) of:

                 

Investments and foreign currency

     46,958,625          35,636,098          29,284,562          17,542,434  

Futures contracts

     (583,966                 (532,439         

Swaps

     (10,211,541        (24,220,305        (2,622,713        (7,172,833

Net increase (decrease) in net assets applicable to common shares from operations

     77,071,798          73,671,202          47,632,065          43,468,694  

Distributions to Common Shareholders

                 

Dividends

     (37,819,713        (72,875,999        (18,501,691        (36,597,335

Return of capital

              (2,763,427                 (406,048

Decrease in net assets applicable to common shares from distributions to common shareholders

     (37,819,713        (75,639,426        (18,501,691        (37,003,383

Capital Share Transactions

                 

Common shares:

                 

Net proceeds from shares issued to shareholders due to reinvestment of distributions

                                 

Cost of shares repurchased and retired

                                 

Net increase (decrease) in net assets applicable to common shares from capital share transactions

                                 

Net increase (decrease) in net assets applicable to common shares

     39,252,085          (1,968,224        29,130,374          6,465,311  

Net assets applicable to common shares at the beginning of period

     1,047,925,309          1,049,893,533          561,522,975          555,057,664  

Net assets applicable to common shares at the end of period

   $ 1,087,177,394        $ 1,047,925,309        $ 590,653,349        $ 561,522,975  

 

See accompanying notes to financial statements.

 

56


     JPS        JPT  
     

Six Months
Ended
1/31/20

      

Year

Ended

7/31/19

       Six Months
Ended
1/31/20
      

Year
Ended

7/31/19

 

Operations

                 

Net investment income (loss)

   $ 66,606,739        $ 133,526,435        $ 4,556,859        $ 9,307,947  

Net realized gain (loss) from:

                 

Investments and foreign currency

     11,751,558          3,420,882          316,420          (2,053,791

Futures contracts

                       (18,463        (69,157

Swaps

     120,932          1,985,867                    

Change in net unrealized appreciation (depreciation) of:

                 

Investments and foreign currency

     98,041,216          65,302,095          6,394,108          4,900,089  

Futures contracts

                       (133,110        (15,501

Swaps

     (19,167,746        (45,466,395                  

Net increase (decrease) in net assets applicable to common shares from operations

     157,352,699          158,768,884          11,115,814          12,069,587  

Distributions to Common Shareholders

                 

Dividends

     (68,470,036        (134,125,759        (4,858,962        (9,714,536

Return of capital

              (2,824,952                  

Decrease in net assets applicable to common shares from distributions to common shareholders

     (68,470,036        (136,950,711        (4,858,962        (9,714,536

Capital Share Transactions

                 

Common Shares:

                 

Net proceeds from shares issued to shareholders due to reinvestment of distributions

                       77,918          29,313  

Cost of shares repurchased and retired

              (281,341                  

Net increase (decrease) in net assets applicable to common shares from capital share transactions

              (281,341        77,918          29,313  

Net increase (decrease) in net assets applicable to common shares

     88,882,663          21,536,832          6,334,770          2,384,364  

Net assets applicable to common shares at the beginning of period

     2,004,446,957          1,982,910,125          165,622,694          163,238,330  

Net assets applicable to common shares at the end of period

   $ 2,093,329,620        $ 2,004,446,957        $ 171,957,464        $ 165,622,694  

 

See accompanying notes to financial statements.

 

57


Statement of Cash Flows

Six Months Ended January 31, 2020

(Unaudited)

 

      JPC     JPI     JPS     JPT  

Cash Flows from Operating Activities:

        

Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations

   $ 77,071,798     $ 47,632,065     $ 157,352,699     $ 11,115,814  

Adjustments to reconcile the net increase (decrease) in net assets applicable to common shares from operations to net cash provided by (used in) operating activities:

        

Purchases of investments

     (203,520,049     (119,924,116     (219,993,792     (17,640,749

Proceeds from sales and maturities of investments

     178,767,918       98,329,192       170,061,496       17,483,104  

Proceeds from (Purchases of) short-term investments, net

     8,364,087             (34,048,333      

Taxes paid

                       (144

Amortization (Accretion) of premiums and discounts, net

     2,856,614       971,590       1,235,903       273,896  

(Increase) Decrease in:

        

Receivable for dividends

     (120,947     (28,571     96,303       (7,125

Receivable for interest

     (1,454,109     (1,361,502     (2,595,149     (164,767

Receivable for investments sold

     (2,291,263     (2,271,912     705       982,350  

Receivable for reclaims

     3,821       15,745       125,369        

Other assets

     31,938       (1,941     (53,031     3,740  

Increase (Decrease) in:

        

Payable for investments purchased – regular settlement

     3,060,487       3,076,853             285,153  

Payable for variation margin on futures contracts

     93,500       85,250             21,313  

Accrued interest

     (246,453     (81,682     (396,191     (96,862

Accrued management fees

     38,373       36,497       90,805       4,093  

Accrued Trustees fees

     36,574       5,107       69,845       (1,233

Accrued other expenses

     (626     800       35,549       (9,946

Net realized (gain) loss from investments and foreign currency

     (6,624,498     (3,703,136     (11,751,558     (316,420

Change in net unrealized (appreciation) depreciation of:

        

Investments and foreign currency

     (46,958,625     (29,284,562     (98,041,216     (6,394,108

Swaps

     10,211,541       2,622,713       19,167,746        

Net cash provided by (used in) operating activities

     19,320,081       (3,881,610     (18,642,850     5,538,109  

Cash Flows from Financing Activities

        

Increase (Decrease) in cash overdraft

     5,539,672       (377,713           (662,404

Proceeds from reverse repurchase agreements

                 50,000,000        

Proceeds from borrowings

     22,000,000       25,000,000       55,000,000        

Cash distributions paid to common shareholders

     (37,826,341     (18,509,212     (68,470,207     (4,776,144

Net cash provided by (used in) financing activities

     (10,286,669     6,113,075       36,529,793       (5,438,548

Net Increase (Decrease) in Cash and Cash Collateral at Brokers

     9,033,412       2,231,465       17,886,943       99,561  

Cash and cash collateral at brokers at the beginning of period

     10,124,732       3,036,515       15,885,879       27  

Cash and cash collateral at brokers at the end of period

   $ 19,158,144     $ 5,267,980     $ 33,772,822     $ 99,588  
Supplemental Disclosure of Cash Flow Information                             

Cash paid for interest (excluding borrowing costs)

   $ 8,199,297     $ 3,760,139     $ 15,309,554     $ 678,055  

Non-cash financing activities not included herein consists of reinvestments of common share distributions

                       77,918  

 

See accompanying notes to financial statements.

 

58


THIS PAGE INTENTIONALLY LEFT BLANK

 

59


Financial Highlights

(Unaudited)

 

Selected data for a share outstanding throughout each period:

 

              
    
    
Investment Operations
    Less Distributions to
Common Shareholders
    Common Share  
     Beginning
Common
Share
NAV
    Net
Investment
Income
(Loss)(a)
    Net
Realized/
Unrealized
Gain (Loss)
    Total     From
Net
Investment
Income
    From
Accumulated
Net
Realized
Gains
    Return
of
Capital
    Total     Discount
per
Share
Repurchased
and Retired
    Ending
NAV
    Ending
Share
Price
 

JPC

 

                                               

Year Ended 7/31:

 

                 

2020(e)

  $ 10.14     $ 0.33     $ 0.42     $ 0.75     $ (0.37   $     $     $ (0.37   $     $ 10.52     $ 10.45  

2019

    10.16       0.70       0.01       0.71       (0.70           (0.03     (0.73           10.14       9.91  

2018

    10.87       0.76       (0.70     0.06       (0.77               (0.77           10.16       9.44  

2017

    10.53       0.72       0.40       1.12       (0.77       —       (0.01     (0.78       —       10.87       10.59  

2016

    10.45       0.77       0.11       0.88       (0.80                 (0.80           10.53       10.43  

2015

    10.67       0.80       (0.25     0.55       (0.77                 (0.77         10.45       9.19  

JPI

 

Year Ended 7/31:

 

2020(e)

    24.67       0.78       1.31       2.09       (0.81                 (0.81           25.95       26.02  

2019

    24.39       1.64       0.27       1.91       (1.61           (0.02     (1.63           24.67       24.27  

2018

    25.97       1.66       (1.55     0.11       (1.62           (0.07     (1.69           24.39       23.13  

2017

    24.60       1.75       1.46       3.21       (1.77           (0.07     (1.84           25.97       25.15  

2016

    24.88       1.86       (0.01     1.85       (1.95     (0.18           (2.13           24.60       24.59  

2015

    25.51       1.96       (0.65     1.31       (1.94                 (1.94           24.88       22.28  

 

    Borrowings at the End of Period  
     Aggregate
Amount
Outstanding
(000)
       Asset
Coverage
Per $1,000
 

JPC

                  

Year Ended 7/31:

 

2020(e)

  $ 477,000        $ 3,279  

2019

    455,000          3,303  

2018

    437,000          3,403  

2017

    540,000          3,079  

2016

    404,100          3,526  

2015

    404,100          3,506  

JPI

                  

Year Ended 7/31:

 

2020(e)

    235,000          3,513  

2019

    210,000          3,674  

2018

    225,000          3,467  

2017

    225,000          3,627  

2016

    225,000          3,488  

2015

    225,000          3,516  

 

(a)

Per share Net Investment Income (Loss) is calculated using the average daily shares method.

(b)

Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

  

Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

 

60


            Common Share Supplemental Data/
Ratios Applicable to Common Shares
 
Common Share
Total Returns
          Ratios to Average Net Asset(c)        
Based
on
NAV(b)
        
Based
on
Share
Price(b)
    Ending
Net Assets
(000)
    Expenses     Net
Investment
Income (Loss)
    Portfolio
Turnover
Rate(d)
 
                                             
         
  7.49     9.29   $ 1,087,177       2.82 %**      6.43 %**      11
  7.48       13.52       1,047,925       3.04       7.10       23  
  0.57       (3.76     1,049,894       2.59       7.19       29  
  11.16       9.73       1,122,751       1.92       6.82       32  
  9.01       23.47       1,020,717       1.73       7.58       17  
  5.36       6.76       1,012,766       1.63       7.55       44  
                                             
         
  8.61       10.73       590,653       2.61 **      6.19 **      12  
  8.29       12.79       561,523       2.72       6.90       27  
  0.37       (1.40     555,058       2.22       6.56       26  
  13.62       10.29       591,018       1.93       7.04       19  
  7.96       20.97       559,722       1.77       7.73       23  
  5.30       4.83       566,137       1.66       7.80       26  

 

(c)     •

Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to borrowings and/or reverse repurchase agreements (as described in Note 8 – Fund Leverage), where applicable.

 

Each ratio includes the effect of all interest expense paid and other costs related to borrowings and/or reverse repurchase agreements, where applicable, as follows:

 

JPC   Ratios of Interest Expense
to Average Net Assets
Applicable to Common Shares
 

Year Ended 7/31:

 

2020(e)

    1.50 %** 

2019

    1.73  

2018

    1.29  

2017

    0.70  

2016

    0.50  

2015

    0.41  

JPI

       

Year Ended 7/31:

 

2020(e)

    1.28 ** 

2019

    1.43  

2018

    0.97  

2017

    0.67  

2016

    0.50  

2015

    0.41  

 

(d)

Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives, Investment Transactions) divided by the average long-term market value during the period.

(e)

For the six months ended January 31, 2020.

*

Rounds to less than $0.01 per share.

**

Annualized.

 

See accompanying notes to financial statements.

 

61


Financial Highlights (continued)

(Unaudited)

 

Selected data for a share outstanding throughout each period:

 

       Investment Operations     Less Distributions to
Common Shareholders
    Common Share  
     Beginning
Common
Share
NAV
     Net
Investment
Income
(Loss)(a)
     Net
Realized/
Unrealized
Gain (Loss)
     Total     From
Net
Investment
Income
     From
Accumulated
Net Realized
Gains
     Return
of
Capital
     Total    

Discount

per Share
Repurchased
and Retired

    Offering
Costs
     Ending
NAV
     Ending
Share
Price
 

JPS

 

Year Ended 7/31:

 

2020(h)

  $ 9.84      $ 0.33      $ 0.44      $ 0.77     $ (0.34    $      $      $ (0.34   $     $      $ 10.27      $ 10.20  

2019

    9.73        0.66        0.12        0.78       (0.66             (0.01      (0.67     **             9.84        9.79  

2018

    10.39        0.69        (0.62      0.07       (0.73                    (0.73                  9.73        8.94  

2017

    9.67        0.71        0.75        1.46       (0.74        —          —        (0.74       —              10.39        10.30  

2016

    9.75        0.69        (0.07      0.62       (0.70                    (0.70                  9.67        9.63  

2015

    9.95        0.68        (0.15      0.53       (0.73                    (0.73                  9.75        9.08  

JPT

                                                                                                       

Year Ended 7/31:

 

2020(h)

    24.24        0.67        0.96        1.63       (0.71                    (0.71                  25.16        25.01  

2019

    23.89        1.36        0.41        1.77       (1.42                    (1.42                  24.24        23.90  

2018

    25.62        1.44        (1.66      (0.22     (1.51                    (1.51                  23.89        23.17  

2017(e)

    24.63        0.74        0.94        1.68       (0.64                    (0.64           (0.05      25.62        25.24  

 

    Borrowings at End of Period  
     Aggregate
Amount
Outstanding
(000)
       Asset
Coverage
Per $1,000
 

JPS

                  

Year Ended 7/31:

      

2020(h)

  $ 908,300        $ 3,305  

2019

    853,300          3,349  

2018

    845,300          3,346  

2017

    845,300          3,506  

2016

    945,000          3,086  

2015

    465,800          3,521  

JPT

                  

Year Ended 7/31:

      

2020(h)

    42,500          5,046  

2019

    42,500          4,897  

2018

    42,500          4,841  

2017(e)

    42,500          5,113  

 

(a)

Per share Net Investment Income (Loss) is calculated using the average daily shares method.

(b)

Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

  

Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

 

62


            Common Share Supplemental Data/
Ratios Applicable to Common Shares
 
Common Share
Total Returns
          Ratios to Average Net Assets
Before Reimbursement(c)
    Ratios to Average Net Assets
After Reimbursement(c)(d)
       
Based
on
NAV(b)
    Based
on
Share
Price(b)
    Ending
Net Assets
(000)
    Expenses     Net
Investment
Income (Loss)
    Expenses     Net
Investment
Income (Loss)
    Portfolio
Turnover
Rate(f)
 
                                                             
             
  7.91     7.74   $ 2,093,330       2.75 %*      6.50 %*      N/A       N/A       5
  8.53       18.01       2,004,447       3.02       6.91       N/A       N/A       16  
  0.66       (6.43     1,982,910       2.48       6.77       N/A       N/A       13  
  15.83       15.50       2,118,545       2.03       7.18       N/A       N/A       13  
  6.77       14.48       1,970,819       1.84       7.31       N/A       N/A       36  
  5.47       10.35       1,174,259       1.64       6.92       1.64 (g)      6.92 (g)      8  
                                                             
             
  6.82       7.70       171,957       1.86     5.39     N/A       N/A       8  
  7.76       9.78       165,623       2.00       5.83       N/A       N/A       26  
  (0.84     (2.36     163,238       1.77       5.82       N/A       N/A       28  
  6.69       3.54       174,791       1.61     5.73     N/A       N/A       22  

 

(c)     •

Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to borrowings and/or reverse repurchase agreements (as described in Note 8 – Fund Leverage), where applicable.

 

Each ratio includes the effect of all interest expense paid and other costs related to borrowings and/or reverse repurchase agreements, where applicable, as follows:

 

JPS   Ratios of Interest Expense
to Average Net Assets
Applicable to Common Shares
 

Year Ended 7/31:

 

2020(h)

    1.46 %* 

2019

    1.73  

2018

    1.22  

2017

    0.77  

2016

    0.50  

2015

    0.40  

JPT

       

Year Ended 7/31:

 

2020(h)

    0.69

2019

    0.83  

2018

    0.60  

2017(e)

    0.42

 

(d)

After expense reimbursement from the Adviser, where applicable.

(e)

For the period January 26, 2017 (commencement of operations) through July 31, 2017.

(f)

Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives, Investment Transactions) divided by the average long-term market value during the period.

(g)

During the fiscal year ended July 31, 2015, the Adviser voluntarily reimbursed the Fund for certain expenses incurred in connection with a common share equity shelf program. As a result, the Expenses and Net Investment Income (Loss) Ratios to Average Net Assets Applicable to Common Shares reflect this voluntary expense reimbursement from Adviser.

(h)

For the six months ended January 31, 2020.

*

Annualized.

**

Rounds to less than $0.01 per share.

N/A

The Fund does not have or no longer has a contractual reimbursement agreement with the Adviser.

 

See accompanying notes to financial statements.

 

63


Notes to Financial Statements

(Unaudited)

 

1. General Information

Fund Information

The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) symbols are as follows (each a “Fund” and collectively, the “Funds”):

 

   

Nuveen Preferred & Income Opportunities Fund (JPC)

 

   

Nuveen Preferred and Income Term Fund (JPI)

 

   

Nuveen Preferred & Income Securities Fund (JPS)

 

   

Nuveen Preferred and Income 2022 Term Fund (JPT)

The Funds are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as diversified, closed-end management investment companies. JPC, JPI, JPS and JPT were each organized as Massachusetts business trusts on January 27, 2003, April 18, 2012, June 24, 2002 and July 6, 2016, respectively.

The end of the reporting period for the Funds is January 31, 2020, and the period covered by these Notes to Financial Statements is the six months ended January 31, 2020 (the “current fiscal period”).

Investment Adviser and Sub-Adviser

The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into sub-advisory agreements with NWQ Investment Management Company, LLC (“NWQ”), an affiliate of Nuveen, Spectrum Asset Management, Inc. (“Spectrum”), and/or Nuveen Asset Management LLC (“NAM”), a subsidiary of the Adviser, (each a “Sub-Adviser” and collectively, the “Sub-Advisers”). NWQ and NAM are each responsible for approximately half of JPC’s portfolio. NAM manages the investment portfolio of JPI and JPT, while Spectrum manages the investment portfolio of JPS. The Adviser is responsible for managing JPC’s, JPI’s and JPS’s investments in swap contracts.

2. Significant Accounting Policies

The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. The Fund is an investment company and follows the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services – Investment Companies. The net asset value (“NAV”) for financial reporting purposes may differ from the NAV for processing security and common share transactions. The NAV for financial reporting purposes includes security and common share transactions through the date of the report. Total return is computed based on the NAV used for processing security and common share transactions. The following is a summary of the significant accounting policies consistently followed by the Fund.

Compensation

The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Funds’ Board of Trustees (the ‘‘Board’’) has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.

Distributions to Common Shareholders

Distributions to common shareholders are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

 

64


 

Foreign Currency Transactions and Translation

To the extent that the Funds invests in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.

The books and records of the Funds are maintained in U.S. dollars. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollars at the end of each day. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions.

Net realized foreign currency gains and losses resulting from changes in exchange rates associated with (i) foreign currency, (ii) investments and (iii) derivatives include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received are recognized as a component of “Net realized gain (loss) from investments and foreign currency” on the Statement of Operations, when applicable.

The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments and (ii) other assets and liabilities are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.

As of the end of the reporting period, the Funds’ investments in non-U.S. securities were as follows:

 

JPC      Value      % of Total
Investments
 

Country:

       

United Kingdom

     $ 126,962,303        7.5

France

       71,683,511        4.2  

Switzerland

       69,226,453        4.1  

Canada

       43,216,619        2.5  

Spain

       35,485,724        2.1  

Australia

       29,473,437        1.7  

Netherlands

       24,783,154        1.5  

Ireland

       17,308,939        1.0  

Italy

       14,961,613        0.9  

Other

       25,546,972        1.5  

Total non-U.S. securities

     $ 458,648,725        27.0
JPI                  

Country:

       

United Kingdom

     $ 98,190,575        11.1

France

       65,245,636        7.4  

Switzerland

       64,334,201        7.3  

Spain

       34,657,359        3.9  

Australia

       27,173,402        3.1  

Netherlands

       18,606,329        2.1  

Ireland

       15,998,340        1.8  

Italy

       13,833,716        1.6  

Canada

       12,611,711        1.4  

Other

       12,525,848        1.5  

Total non-U.S. securities

     $ 363,177,117        41.2

 

65


Notes to Financial Statements (continued)

(Unaudited)

 

JPS      Value      % of Total
Investments
 

Country:

       

United Kingdom

     $ 663,831,682        20.2

France

       348,072,902        10.6  

Switzerland

       238,361,951        7.2  

Canada

       93,861,935        2.9  

Finland

       88,186,344        2.7  

Australia

       84,128,739        2.6  

Netherlands

       53,896,020        1.6  

Sweden

       39,964,955        1.2  

Norway

       31,251,375        1.0  

Other

       109,750,297        3.3  

Total non-U.S. securities

     $ 1,751,306,200        53.3
JPT                  

Country:

       

United Kingdom

     $ 11,520,984        5.4

Australia

       9,063,364        4.2  

Canada

       5,720,669        2.7  

France

       5,196,581        2.4  

Ireland

       4,678,026        2.2  

Germany

       3,566,469        1.7  

Japan

       2,523,928        1.2  

Bermuda

       924,462        0.4  

Netherlands

       863,078        0.4  

Other

       681,750        0.3  

Total non-U.S. securities

     $ 44,739,311        20.9

Indemnifications

Under the Funds’ organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

Investments and Investment Income

Securities transactions are accounted for as of the trade date for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Non-cash dividends received in the form of stock, if any, are recorded on the ex-dividend date and recorded at fair value. Interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects payment-in-kind (“PIK”) interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Other income is comprised of fees earned in connection with the rehypothecation of pledged collateral as further described in Note 8 – Fund Leverage, Rehypothecation.

Netting Agreements

In the ordinary course of business, the Funds may enter into transactions subject to enforceable master repurchase agreements, International Swaps and Derivatives Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.

The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 4 – Portfolio Securities and Investments in Derivatives.

New Accounting Pronouncements and Rule Issuances

FASB Accounting Standards Update (“ASU”) 2017-08 (“ASU 2017-08”) Premium Amortization on Purchased Callable Debt Securities

The FASB has issued ASU 2017-08, which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. During the current fiscal period, ASU 2017-08 became effective for the Funds. The Funds have adopted and applied ASU 2017-08 on a modified retrospective basis through a cumulative-effect adjustment as of the

 

66


 

beginning of the period of adoption. As a result of the adoption of ASU 2017-08, as of August 1, 2019, the amortized cost basis of investments was reduced and unrealized appreciation of investments was increased for JPC, JPI, JPS and JPT by $11,233,471, $3,608,742, $30,054,671 and $1,879,360, respectively. The adoption of ASU 2017-08 had no impact on beginning net assets, the current period results from operations, or any prior period information presented in the financial statements. Management has evaluated the impact of this ASU and has adopted the changes into these financial statements.

Fair Value Measurement: Disclosure Framework

During August 2018, the FASB issued ASU 2018-13 (“ASU 2018-13”), Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 modifies the disclosures required by Topic 820, Fair Value Measurements. The amendments ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has early implemented this guidance and it did not have a material impact on the Funds’ financial statements.

3. Investment Valuation and Fair Value Measurements

The fair valuation input levels as described below are for fair value measurement purposes.

The Fund’s investments in securities is recorded at their estimated fair value. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

 

Level 1 –   Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 –   Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3 –   Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the Nasdaq National Market (“Nasdaq”) are valued at the Nasdaq Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or Nasdaq for which there were no transactions on a given day or securities not listed on a securities exchange or Nasdaq are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in the United States are valued based on the last traded price, official closing price or the most recent bid price of the underlying non- U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the NYSE, which may represent a transfer from a Level 1 to a Level 2 security.

Prices of fixed-income securities are provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.

Prices of swap contracts are also provided by a pricing service approved by the Board using the same methods as described above, and are generally classified as Level 2.

Investments in investment companies are valued at their respective NAV’s on valuation date and are generally classified as Level 1.

Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.

Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price, and are generally classified as Level 1.

Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Funds’ shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and an investor is not able to purchase, redeem or exchange shares. If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Funds’ NAV is determined, or if under the Funds’ procedures, the closing price of a

 

67


Notes to Financial Statements (continued)

(Unaudited)

 

foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Board. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.

Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Board and/or its appointee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Board and/or its appointee.

The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:

 

JPC    Level 1      Level 2      Level 3      Total  

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 829,559,731      $         —      $ 829,559,731  

$25 Par (or similar) Retail Preferred

     409,351,634        71,367,122 **              480,718,756  

Contingent Capital Securities

            291,830,213               291,830,213  

Corporate Bonds

            50,817,788               50,817,788  

Convertible Preferred Securities

     34,303,016                      34,303,016  

Common Stocks

     3,463,539                      3,463,539  

Short-Term Investments:

           

Repurchase Agreements

            9,945,351               9,945,351  

Investments in Derivatives:

           

Interest Rate Swaps***

            (20,521,352             (20,521,352

Futures Contracts***

     (583,966                    (583,966

Total

   $ 446,534,223      $ 1,232,998,853      $      $ 1,679,533,076  
JPI                                

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 410,674,999      $      $ 410,674,999  

Contingent Capital Securities

            270,092,844               270,092,844  

$25 Par (or similar) Retail Preferred

     141,902,801        58,953,902 **              200,856,703  

Investments in Derivatives:

           

Interest Rate Swaps***

            (5,595,609             (5,595,609

Futures Contracts***

     (532,439                    (532,439

Total

   $ 141,370,362      $ 734,126,136      $      $ 875,496,498  
JPS                                

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 1,495,662,600      $      $ 1,495,662,600  

Contingent Capital Securities

            1,300,551,974               1,300,551,974  

$25 Par (or similar) Retail Preferred

     302,444,875        68,103,913 **              370,548,788  

Investment Companies

     26,582,071                      26,582,071  

Convertible Preferred Securities

     19,535,878                      19,535,878  

Corporate Bonds

            18,223,128               18,223,128  

Short-Term Investments:

           

Repurchase Agreements

            57,092,377               57,092,377  

Investments in Derivatives:

           

Interest Rate Swaps***

            (38,517,503             (38,517,503

Total

   $ 348,562,824      $ 2,901,116,489      $      $ 3,249,679,313  

 

68


 

JPT    Level 1      Level 2      Level 3      Total  

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 150,757,833      $         —      $ 150,757,833  

$25 Par (or similar) Retail Preferred

     49,648,771        13,159,998 **              62,808,769  

Investments in Derivatives:

           

Futures Contracts***

     (133,110                    (133,110

Total

   $ 49,515,661      $ 163,917,831      $      $ 213,433,492  
*

Refer to the Fund’s Portfolio of Investments for industry classifications, when applicable.

**

Refer to the Fund’s Portfolio of Investments for securities classified as Level 2.

***

Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments.

4. Portfolio Securities and Investments in Derivatives

Portfolio Securities

Repurchase Agreements

In connection with transactions in repurchase agreements, it is each Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.

The following table presents the repurchase agreements for the Funds that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.

 

Fund    Counterparty    Short-Term
Investments, at Value
       Collateral
Pledged (From)
Counterparty*
       Net
Exposure
 
JPC   

Fixed Income Clearing Corporation

   $ 9,945,351        $ (9,945,351      $  
JPS   

Fixed Income Clearing Corporation

     57,092,377          (57,092,377         
*

As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund’s Portfolio of Investments for details on the repurchase agreements.

Zero Coupon Securities

A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.

Investment Transactions

Long-term purchases and sales (including maturities but excluding derivative transactions, where applicable) during the current fiscal period, were as follows:

 

        JPC      JPI      JPS      JPT  

Purchases

     $ 203,520,049      $ 119,924,116      $ 219,993,792      $ 17,640,749  

Sales and maturities

       178,767,918        98,329,192        170,061,496        17,483,104  

The Funds may purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed-delivery purchase commitments. If a Fund has outstanding when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.

Investments in Derivatives

Each Fund is authorized to invest in certain derivative instruments such as futures, options and swap contracts. Each Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The Funds record derivative instruments at fair value, with changes in fair value

 

69


Notes to Financial Statements (continued)

(Unaudited)

 

recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.

Futures Contracts

Upon execution of a futures contract, a Fund is obligated to deposit cash or eligible securities, also known as ‘‘initial margin,’’ into an account at its clearing broker equal to a specified percentage of the contract amount. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized as ‘‘Cash collateral at broker for investments in futures contracts’’ on the Statement of Assets and Liabilities. Investments in futures contracts obligate a Fund and the clearing broker to settle monies on a daily basis representing changes in the prior days ‘‘mark-to-market’’ of the open contracts. If a Fund has unrealized appreciation the clearing broker would credit the Fund’s account with an amount equal to appreciation and conversely if a Fund has unrealized depreciation the clearing broker would debit the Fund’s account with an amount equal to depreciation. These daily cash settlements are also known as ‘‘variation margin.’’ Variation margin is recognized as a receivable and/or payable for ‘‘Variation margin on futures contracts’’ on the Statement of Assets and Liabilities.

During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by ‘‘marking-to-market’’ on a daily basis to reflect the changes in market value of the contract, which is recognized as a component of ‘‘Change in net unrealized appreciation (depreciation) of futures contracts’’ on the Statement of Operations. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into, which is recognized as a component of ‘‘Net realized gain (loss) from futures contracts’’ on the Statement of Operations.

Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.

During the current fiscal period, JPC, JPI and JPT invested in short interest rate futures to manage the Fund’s exposure to various points along the yield curve, with a net effect of decreasing the Fund’s overall interest rate sensitivity.

The average notional amount of futures contracts outstanding during the current fiscal period was as follows:

 

        JPC      JPI      JPT  

Average notional amount of futures contracts outstanding*

     $ 11,742,178      $ 10,706,104      $ 2,676,526  
*

The average notional amount is calculated based on the absolute aggregate notional of contracts outstanding at the beginning of the current fiscal period and at the end of each quarter within the current fiscal period.

 

        

Location on the Statement of Assets and Liabilities

 
Underlying
Risk Exposure
   Derivative
Instrument
 

Asset Derivatives

         

(Liability) Derivatives

 
  Location    Value            Location    Value  
JPC               
Interest rate    Futures contracts      $             Payable for variation margin on futures contracts*    ($ 583,966
JPI               
Interest rate    Futures contracts      $             Payable for variation margin on futures contracts*    ($ 532,439
JPT               
Interest rate    Futures contracts      $             Payable for variation margin on futures contracts*    ($ 133,110
*

Value represents unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments and not the asset and/or liability derivative location as described in the table above.

The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on futures contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.

 

Fund      Underlying Risk
Exposure
    

Derivative

Instrument

    

Net Realized

Gain (Loss)

from Futures

Contracts

       Change in Net
Unrealized Appreciation
(Depreciation)
of Futures
Contracts
 
JPC      Interest rate      Futures contracts      $ (81,131      $ (583,966
JPI      Interest rate      Futures contracts        (74,014        (532,439
JPT      Interest rate      Futures contracts        (18,463        (133,110

Interest Rate Swap Contracts

Interest rate swap contracts involve a Fund’s agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment. Forward interest rate swap contracts involve a Fund’s agreement with a counterparty to pay, in the future, a

 

70


 

fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which begin at a specified date in the future (the “effective date”).

The amount of the payment obligation for an interest rate swap is based on the notional amount and the termination date of the contract. Interest rate swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that the Fund is to receive.

Interest rate swap contracts are valued daily. Upon entering into an interest rate swap contract (and beginning on the effective date for a forward interest rate swap contract), the Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on the interest rate swap contracts on a daily basis, and recognizes the daily change in the fair value of the Fund’s contractual rights and obligations under the contracts. For an over-the-counter (“OTC”) swap, that is not cleared through a clearing house (“OTC Uncleared”), the amount recorded on these transactions is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on interest rate swaps.”

Upon the execution of an OTC swap cleared through a clearing house (“OTC Cleared”), the Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash deposited by the Fund to cover initial margin requirements on open swap contracts, if any, is recognized as a component of “Cash collateral at brokers for investments in swaps” on the Statement of Assets and Liabilities. Investments in OTC Cleared swaps obligate the Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day’s “mark-to-market” of the swap contract. If the Fund has unrealized appreciation, the clearing broker will credit the Fund’s account with an amount equal to the appreciation. Conversely, if the Fund has unrealized depreciation, the clearing broker will debit the Fund’s account with an amount equal to the depreciation. These daily cash settlements are also known as “variation margin.” Variation margin for OTC Cleared swaps is recognized as a receivable and/or payable for “Variation margin on swap contracts” on the Statement of Assets and Liabilities. Upon the execution of an OTC Uncleared swap, neither the Fund nor the counterparty is required to deposit initial margin as the trades are recorded bilaterally between both parties to the swap contract, and the terms of the variation margin are subject to a predetermined threshold negotiated by the Fund and the counterparty. Variation margin for OTC Uncleared swaps is recognized as a component of “Unrealized appreciation or depreciation on interest rate swaps” as described in the preceding paragraph.

The net amount of periodic payments settled in cash are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations, in addition to the net realized gain or loss recorded upon the termination of the swap contract. For tax purposes, payments expected to be received or paid on the swap contracts are treated as ordinary income or expense, respectively. Changes in the value of the swap contracts during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps” on the Statement of Operations. In certain instances, payments are made or received upon entering into the swap contract to compensate for differences between the stated terms of the swap agreements and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Payments received or made at the beginning of the measurement period, if any, are recognized as “Interest rate swaps premiums received and/or paid” on the Statement of Assets and Liabilities.

During the current fiscal period, JPC, JPI and JPS continued to use forward starting interest rate swap contracts to partially hedge the interest cost of leverage, which is through the use of bank borrowings.

The average notional amount of interest rate swap contracts outstanding during the current fiscal period was as follows:

 

        JPC      JPI      JPS  

Average notional amount of interest rate swap contracts outstanding*

     $ 325,500,000      $ 157,000,000      $ 611,000,000  
*

The average notional amount is calculated based on the outstanding notional at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period.

The following table presents the fair value of all swap contracts held by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.

 

        

Location on the Statement of Assets and Liabilities

 

Underlying

Risk Exposure

  

Derivative

Instrument

 

Asset Derivatives

         

(Liability) Derivatives

 
  Location    Value            Location   Value  
JPC

 

Interest rate    Swaps (OTC Uncleared)      $             Unrealized depreciation on interest rate swaps**   $ (20,521,352
JPI

 

Interest rate    Swaps (OTC Uncleared)      $             Unrealized depreciation on interest rate swaps**   $ (5,595,609
JPS

 

Interest rate    Swaps (OTC Uncleared)      $             Unrealized depreciation on interest rate swaps**   $ (38,517,503
**

Some swap contracts require a counterparty to pay or receive a premium, which is disclosed in the Statement of Assets and Liabilities, when applicable, and is not reflected in the cumulative unrealized appreciation (depreciation) presented above.

 

71


Notes to Financial Statements (continued)

(Unaudited)

 

The following table presents the swap contracts subject to netting agreements and the collateral delivered related to those swap contracts as of the end of the reporting period.

 

Fund    Counterparty    Gross
Unrealized
Appreciation on
Interest Rate
Swaps***
     Gross
Unrealized
(Depreciation) on
Interest Rate
Swaps***
     Net
Unrealized
Appreciation
(Depreciation) on
Interest Rate
Swaps
     Collateral
Pledged
to (from)
Counterparty
     Net
Exposure
 
JPC    Morgan Stanley Capital Services LLC    $      $ (20,521,352    $ (20,521,352    $ 18,838,147      $ 1,683,205  
JPI    Morgan Stanley Capital Services LLC             (5,595,609      (5,595,609      4,977,983        617,626  
JPS    Morgan Stanley Capital Services LLC             (38,517,503      (38,517,503      35,354,346        3,163,157  
***

Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments.

The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.

 

Fund      Underlying
Risk Exposure
     Derivative
Instrument
     Net Realized
Gain (Loss)
from Swaps
       Change in Net
Unrealized
Appreciation
(Depreciation)
of Swaps
 
JPC      Interest rate      Swaps      $ 65,039        $ (10,211,541
JPI      Interest rate      Swaps        33,056          (2,622,713
JPS      Interest rate      Swaps        120,932          (19,167,746

Market and Counterparty Credit Risk

In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.

Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.

5. Fund Shares

Common Share Transactions

Transactions in common shares during the Funds’ current and prior fiscal period were as follows:

 

    JPS           JPT  
     Six Months Ended
1/31/20
    Year Ended
7/31/19
           Six Months Ended
1/31/20
    Year Ended
7/31/19
 

Common shares:

         

Issued to shareholders due to reinvestment of distributions

                  3,156       1,221  

Repurchased and retired

          (38,000                    

Weighted average common share:

         

Price per share repurchased and retired

  $         —     $ 7.38       $     $  

Discount per share repurchased and retired

        17.59                

 

72


 

6. Income Tax Information

Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.

For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the NAVs of the Funds.

The table below presents the cost and unrealized appreciation (depreciation) of each Fund’s investment portfolio, as determined on a federal income tax basis, as of January 31, 2020.

For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for income statement reporting but realized in income and/or capital gains tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.

 

        JPC      JPI      JPS      JPT  

Tax cost of investments

     $ 1,598,557,008      $ 816,813,559      $ 3,005,780,947      $ 205,475,099  

Gross unrealized:

             

Appreciation

     $ 110,188,948      $ 66,021,837      $ 283,560,865      $ 10,840,611  

Depreciation

       (29,212,880      (7,338,898      (39,662,499      (2,882,218

Net unrealized appreciation (depreciation) of investments

     $ 80,976,068      $ 58,682,939      $ 243,898,366      $ 7,958,393  

Permanent differences, primarily due to bond premium amortization adjustments, treatment of notional principal contracts, complex securities character adjustments, federal taxes paid and expiration of capital loss carryforwards resulted in reclassifications among the Funds’ components of common share net assets as of July 31, 2019, the Funds’ last tax year end.

The tax components of undistributed net ordinary income and net long-term capital gains as of July 31, 2019, the Funds’ last tax year end, were as follows:

 

        JPC      JPI      JPS      JPT  

Undistributed net ordinary income1

     $               —      $               —      $                 —      $ 570,768  

Undistributed net long-term capital gains

                                        —  

1  Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared on July 1, 2019 and paid on August 1, 2019. Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.

   

The tax character of distributions paid during the Funds’ last tax year ended July 31, 2019 was designated for purposes of the dividends paid deduction as follows:

 

        JPC      JPI      JPS      JPT  

Distributions from net ordinary income2

     $ 72,875,999      $ 36,597,335      $ 134,127,887      $ 9,714,392  

Distributions from net long-term capital gains

                     —                      —                        —                    —  

Return of capital

       2,763,427        406,048        2,824,952         

2  Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.

   

As of July 31, 2019, the Funds’ last tax year end, the following Funds had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.

 

                JPC3      JPI      JPT  

Not subject to expiration:

             

Short-term

        $ 16,618,703      $     3,167,279      $ 1,087,615  

Long-term

                8,594,354        2,939,903        2,447,575  

Total

              $ 25,213,057      $ 6,107,182      $ 3,535,190  

 

3 

A portion of JPC’s capital loss carryforward is subject to an annual limitation under the Internal Revenue Code and related regulations.

 

73


Notes to Financial Statements (continued)

(Unaudited)

 

As of July 31, 2019, the Funds’ last tax year end, $10,012,042 of JPS’s capital loss carryforward expired.

During the Funds’ last tax year ended July 31, 2019, JPS utilized $684,331 of its capital loss carryforward.

7. Management Fees

Each Fund’s management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Advisers are compensated for their services to the Funds from the management fees paid to the Adviser. Spectrum also receives compensation on certain portfolio transactions for providing brokerage services to JPS. During the current fiscal period, JPS paid Spectrum commissions of $38,563.

Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.

The annual fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:

 

Average Daily Managed Assets*      JPC      JPI      JPS      JPT  

For the first $500 million

       0.6800      0.7000      0.7000      0.7000

For the next $500 million

       0.6550        0.6750        0.6750        0.6750  

For the next $500 million

       0.6300        0.6500        0.6500        0.6500  

For the next $500 million

       0.6050        0.6250        0.6250        0.6250  

For managed assets over $2 billion

       0.5800        0.6000        0.6000        0.6000  

The annual complex-level fee, payable monthly, for each Fund is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by the Funds’ daily managed assets:

 

Complex-Level Eligible Asset Breakpoint Level*      Effective Complex-Level Fee Rate at Breakpoint Level  

$55 billion

       0.2000

$56 billion

       0.1996  

$57 billion

       0.1989  

$60 billion

       0.1961  

$63 billion

       0.1931  

$66 billion

       0.1900  

$71 billion

       0.1851  

$76 billion

       0.1806  

$80 billion

       0.1773  

$91 billion

       0.1691  

$125 billion

       0.1599  

$200 billion

       0.1505  

$250 billion

       0.1469  

$300 billion

       0.1445  
*

For the complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen open-end and closed-end Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do not include certain assets of certain Nuveen funds that were reorganized into the funds advised by an affiliate of the Adviser during the 2019 calendar year. As of January 31, 2020, the complex-level fee rate for each Fund was 0.1556%.

8. Fund Leverage

Borrowings

JPC, JPI, JPS, and JPT have each entered into a borrowing arrangement (collectively, “Borrowings”) which permit the Funds to borrow on a secured basis as a means of leverage. As of the end of the reporting period, each Fund’s maximum commitment amount under these Borrowings is as follows:

 

        JPC      JPI      JPS      JPT  

Maximum commitment amount

     $ 485,000,000      $ 235,000,000      $ 910,000,000      $ 45,000,000  

 

74


 

As of the end of the reporting period, each Fund’s outstanding balance on its Borrowings was as follows:

 

        JPC      JPI      JPS      JPT  

Outstanding balance on Borrowings

     $ 477,000,000      $ 235,000,000      $ 908,300,000      $ 42,500,000  

For JPC, JPI and JPS interest is charged on these Borrowings at 1-Month LIBOR (London Inter-Bank Offered Rate) plus 0.75% (0.70% prior to December 31, 2019) per annum on the amounts borrowed and 0.50% per annum on the undrawn balance if the undrawn portion of the Borrowings on a particular day is more than 20% of the maximum commitment amount. During the current fiscal period, JPC and JPS incurred a 0.10% amendment fee on the increase in their respective maximum commitment amounts. JPT’s interest is charged on the Borrowings at a rate equal to the 1-month LIBOR plus 0.70% per annum on the amount borrowed. JPT is also charged a 0.125% commitment fee on the undrawn portion of the Borrowings.

During the current fiscal period, the average daily balance outstanding and average annual interest rate on each Fund’s Borrowings were as follows:

 

        JPC      JPI      JPS      JPT  

Average daily balance outstanding

     $ 465,315,217      $ 218,804,348      $ 859,876,087      $ 42,500,000  

Average annual interest rate

       2.58      2.58      2.58      2.65

In order to maintain these Borrowings, the Funds must meet certain collateral, asset coverage and other requirements. Borrowings outstanding are fully secured by eligible securities held in each Fund’s portfolio of investments.

Borrowings outstanding are recognized as “Borrowings” on the Statement of Assets and Liabilities. Interest expense incurred on the borrowed amount and undrawn balance and amendment fees are recognized as a component of “Interest expense” on the Statement of Operations.

Rehypothecation

JPC, JPI and JPS have each entered into a Rehypothecation Side Letter (“Side Letter”) with its prime brokerage lender, allowing it to re-register the Pledged Collateral in its own name or in a name other than the Funds’ to pledge, repledge, hypothecate, rehypothecate, sell, lend or otherwise transfer or use the Pledged Collateral (the “Hypothecated Securities”) with all rights of ownership as described in the Side Letter. Subject to certain conditions, the total value of the outstanding Hypothecated Securities shall not exceed the lesser of (i) 98% of the outstanding balance on the Borrowings to which the Pledged Collateral relates and (ii) 3313% of the Funds’ total assets. The Funds may designate any Pledged Collateral as ineligible for rehypothecation. The Funds may also recall Hypothecated Securities on demand.

The Funds also have the right to apply and set-off an amount equal to one-hundred percent (100%) of the then-current fair market value of such Pledged Collateral against the current Borrowings under the Side Letter in the event that the prime brokerage lender fails to timely return the Pledged Collateral and in certain other circumstances. In such circumstances, however, the Funds may not be able to obtain replacement financing required to purchase replacement securities and, consequently, the Funds’ income generating potential may decrease. Even if a Fund is able to obtain replacement financing, it might not be able to purchase replacement securities at favorable prices.

The Funds will receive a fee in connection with the Hypothecated Securities (“Rehypothecation Fees”) in addition to any principal, interest, dividends and other distributions paid on the Hypothecated Securities.

As of the end of the reporting period, JPC, JPI and JPS each had Hypothecated Securities as follows:

 

     JPC        JPI        JPS  

Hypothecated Securities

  $ 401,486,021        $ 216,188,387        $ 754,517,686  

JPC, JPI and JPS earn Rehypothecation Fees, which are recognized as “Other income” on the Statement of Operations. During the current fiscal period, the Rehypothecation Fees earned by each Fund were as follows:

 

     JPC        JPI        JPS  

Rehypothecation Fees

  $ 155,639        $ 51,308        $ 154,081  

Reverse Repurchase Agreements

During the current fiscal period, JPC, JPI and JPS used reverse repurchase agreements as a means of leverage.

In a reverse repurchase agreement, the Funds sell to the counterparty a security that it holds with a contemporaneous agreement to repurchase the same security at an agreed-upon price and date, with the Funds retaining the risk of loss that is associated with that security. The Funds will pledge assets determined to be liquid by the Adviser to cover its obligations under reverse repurchase agreements. Securities sold under reverse repurchase agreements are recorded as a liability and recognized as “Reverse repurchase agreements” on the Statement of Assets and Liabilities.

 

75


Notes to Financial Statements (continued)

(Unaudited)

 

Payments made on reverse repurchase agreements are recognized as a component of “Interest expense” on the Statement of Operations.

As of the end of the reporting period, the Funds’ outstanding balances on its reverse repurchase agreements were as follows:

 

Fund   Counterparty    Rate    Principal
Amount
       Maturity*        Value        Value and
Accrued Interest
 
JPC  

BNP Paribas

   1-Month LIBOR plus 0.70%    $ (135,000,000        N/A        $ (135,000,000      $ 135,282,997  
JPI  

BNP Paribas

   1-Month LIBOR plus 0.70%      (60,000,000        N/A          (60,000,000        60,125,776  
JPS  

BNP Paribas

   1-Month LIBOR plus 0.70%      (310,000,000        N/A          (310,000,000        310,619,414  
*

The Fund may repurchase the reverse repurchase agreement prior to the maturity date and/or counterparty may accelerate maturity upon pre-specified advance notice.

During the current fiscal period, the average daily balance outstanding and weighted average interest rate on the Funds’ reverse repurchase agreements were as follows:

 

        JPC      JPI      JPS  

Average daily balance outstanding

     $ 135,000,000      $ 60,000,000      $ 265,978,261  

Weighted average interest rate

       2.58      2.58      2.58

The following table presents the reverse repurchase agreements subject to netting agreements and the collateral delivered related to those reverse repurchase agreements.

 

Fund    Counterparty       

Reverse Repurchase

Agreements**

      

Collateral

Pledged to
counterparty***

      

Net

Exposure

 
JPC      BNP Paribas        $ (135,282,997      $ 135,282,997        $  
JPI      BNP Paribas          (60,125,776        60,125,776           
JPS      BNP Paribas          (310,619,414        310,619,414           
**

Represents gross value and accrued interest for the counterparty as reported in the preceding table.

***

As of the end of the reporting period, the value of the collateral pledged to the counterparty exceeded the value of the reverse repurchase agreements.

9. Inter-Fund Lending

Inter-Fund Borrowing and Lending

The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting registered open-end and closed-end Nuveen funds to participate in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting in an unanticipated cash shortfall) (the “Inter-Fund Program”). The closed-end Nuveen funds, including the Funds covered by this shareholder report, will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including, among other things, the requirements that (1) no fund may borrow or lend money through the Inter-Fund Program unless it receives a more favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no fund may borrow on an unsecured basis through the Inter-Fund Program unless the fund’s outstanding borrowings from all sources immediately after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing fund has a secured borrowing outstanding from any other lender, including but not limited to another fund, the inter-fund loan must be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after an inter-fund borrowing would be greater than 10% of its total assets, the fund may borrow through the inter-fund loan on a secured basis only; (4) no fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15% of its net assets at the time of the loan; (5) a fund’s inter-fund loans to any one fund shall not exceed 5% of the lending fund’s net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending fund and may be repaid on any day by a borrowing fund. In addition, a Nuveen fund may participate in the Inter-Fund Program only if and to the extent that such participation is consistent with the fund’s investment objective and investment policies. The Board is responsible for overseeing the Inter-Fund Program.

The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.

During the current reporting period, none of the Funds have entered into any inter-fund loan activity.

 

76


 

10. Subsequent Events

Borrowings

During March 2020, JPC decreased the outstanding balance on its Borrowings to $306,310,000.

During March 2020, JPI decreased the outstanding balance on its Borrowings to $155,700,000.

During March 2020, JPS decreased the outstanding balance on its Borrowings to $575,300,000.

During February and March 2020, JPT amended its borrowings and increased the maximum commitment amount and decreased the outstanding balance on its Borrowings to $47,000,000 and $27,300,000, respectively. All other terms of the Borrowings remained unchanged.

Reverse Repurchase Agreements

During March 2020, JPC decreased the outstanding balance on its reverse repurchase agreement to $50,000,000.

During March 2020, JPI decreased the outstanding balance on its reverse repurchase agreement to $30,000,000.

During March 2020, JPS decreased the outstanding balance on its reverse repurchase agreement to $193,000,000.

Other Matters

The COVID-19 coronavirus pandemic was first detected in China in December 2019 and subsequently spread internationally. Containment efforts around the world have halted business and manufacturing operations and restricted people’s movement and travel. The disruptions to global supply chains, consumer demand, business investment and the global financial system are just beginning to be seen. The impact of the coronavirus may last for an extended period of time and through the date these financial statements are issued, has resulted in substantial market volatility and may result in a significant economic downturn.

 

77


Additional Fund Information

 

Board of Trustees      
Jack B. Evans   William C. Hunter   Albin F. Moschner   John K. Nelson   Judith M. Stockdale  
Carole E. Stone   Terence J. Toth   Margaret L. Wolff   Robert L. Young    

 

         

Investment Adviser

Nuveen Fund Advisors, LLC

333 West Wacker Drive

Chicago, IL 60606

 

Custodian

State Street Bank
& Trust Company
One Lincoln Street

Boston, MA 02111

 

Legal Counsel

Chapman and Cutler LLP

Chicago, IL 60603

 

Independent Registered
Public Accounting Firm

KPMG LLP
200 East

Randolph Street

Chicago, IL 60601

 

Transfer Agent and
Shareholder Services

Computershare Trust

Company, N.A.

150 Royall Street

Canton, MA 02021

(800) 257-8787

 

 

 

Portfolio of Investments Information

Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. You may obtain this information on the SEC’s website at http://www.sec.gov.

 

 

Nuveen Funds’ Proxy Voting Information

You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.

 

 

CEO Certification Disclosure

Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

 

 

Common Share Repurchases

Each Fund intends to repurchase, through its open market share repurchase program, shares of their own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock, as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

 

     JPC        JPI        JPS        JPT  

Common shares repurchased

                                

FINRA BrokerCheck

The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org.

 

 

 

78


Glossary of Terms Used in this Report

 

 

Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.

 

 

ICE BofA Contingent Capital Index: An index that tracks the performance of all contingent capital debt publicly issued in the major domestic and Eurobond markets, including investment grade and sub-investment grade issues. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.

 

 

ICE BofA Preferred Securities Fixed Rate Index: An index that tracks the performance of fixed rate U.S. dollar denominated preferred securities issued in the U.S. domestic market. Qualifying securities must be rated investment grade (based on an average of Moody’s, S&P, and Fitch) and must have an investment grade rated country of risk (based on an average of Moody’s, S&P, and Fitch foreign currency long-term sovereign debt ratings). In addition, qualifying securities must be issued as public securities or through a 144A filing, must be issued in $25, $50 or $100 par/liquidation preference increments, must have a fixed coupon or dividend schedule, and must have a minimum amount outstanding of $100 million. The index returns assume reinvestment of dividends, but do not include the effects of any sales charges or management fees.

 

 

ICE BofA U.S. All Capital Securities Index: An index that is comprised of a subset of the ICE BofAML U.S. Corporate Index including all fixed-to-floating rate, perpetual callable and capital securities. The ICE BofAML U.S. Corporate Index is an unmanaged index comprised of U.S. dollar denominated investment grade corporate debt securities publicly issued in the U.S. domestic market with at least one year remaining term to final maturity. Index returns do not include the effects of any sales charges or management fees.

 

 

Contingent Capital Securities (CoCos): CoCos are debt or capital securities of primarily non-U.S. issuers with loss absorption contingency mechanisms built into the terms of the security, for example a mandatory conversion into common stock of the issuer, or a principal write-down, which if triggered would likely cause the CoCo investment to lose value. Loss absorption mechanisms would become effective upon the occurrence of a specified contingency event, or at the discretion of a regulatory body. Specified contingency events, as identified in the CoCo’s governing documents, usually reference a decline in the issuer’s capital below a specified threshold level, and/or certain regulatory events. A loss absorption contingency event for CoCos would likely be the result of, or related to, the deterioration of the issuer’s financial condition and/or its 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 contingency event, the market price of the issuer’s common stock received by the Acquiring Fund will have likely declined, perhaps substantially, and may continue to decline after conversion. CoCos rated below investment grade should be considered high yield securities, or “junk,” but often are issued by entities whose more senior securities are rated investment grade. CoCos are a relatively new type of security; and there is a risk that CoCo security issuers may suffer the sort of future financial distress that could materially increase the likelihood (or the market’s perception of the likelihood) that an automatic write-down or conversion event on those issuers’ CoCos will occur. 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 security may cause a decline in value of one or more CoCos held by the Fund. Accordingly, the trading behavior of CoCos may not follow the trading behavior of other types of debt and preferred securities. Despite these concerns, the prospective reward vs. risk characteristics of at least certain CoCos may be very attractive relative to other fixed-income alternatives.

 

 

Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond fund’s value to changes when market interest rates change. Generally, the longer a bond’s or fund’s duration, the more the price of the bond or fund will change as interest rates change.

 

79


Glossary of Terms Used in this Report (continued)

 

 

Effective Leverage: Effective leverage is a fund’s effective economic leverage, and includes both regulatory leverage (see below) and the leverage effects of certain derivative investments in the fund’s portfolio.

 

 

JPC Blended Benchmark: A blended return consisting of: 1) 50% ICE BofA Preferred Securities Fixed Rate Index, which tracks the performance of fixed rate U.S. dollar denominated preferred securities issued in the U.S. domestic market; 2) 30% ICE BofA U.S. All Capital Securities Index (IOCS), a subset of the ICE BofA U.S. Corporate Index including all fixed to- floating rate, perpetual callable and capital securities, which better represents the full breadth of the preferred and hybrid securities market, including investment grade and below investment grade exchange traded $25 par preferreds and investment grade and below investment grade rated $1,000 par capital securities; and 3) 20% ICE BofA Contingent Capital Securities USD Hedged Index (CoCo), which tracks the performance of all contingent capital debt publicly issued in the major domestic and Eurobond markets, including investment grade and sub-investment grade issues. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees.

 

 

JPI Blended Benchmark Index: The JPI Blended Benchmark is a blended return consisting of: 1) 60% ICE BofA U.S. All Capital Securities Index (IOCS), a subset of the ICE BofA U.S. Corporate Index including all fixed to- floating rate, perpetual callable and capital securities, which better represents the full breadth of the preferred and hybrid securities market, including investment grade and below investment grade exchange traded $25 par preferreds and investment grade and below investment grade rated $1,000 par capital securities; and 2) 40% ICE BofA Contingent Capital Index, which tracks the performance of all contingent capital debt publicly issued in the major domestic and Eurobond markets, including investment grade and sub-investment grade issues. Benchmark returns assume reinvestment of distributions, but do not include the effects of any sales charges or management fees.

 

 

JPS Blended Benchmark: A blended return consisting of: 1) 40% of the ICE BofA Contingent Capital Securities USD Hedged Index (CoCo), which tracks the performance of all contingent capital debt publicly issued in the major domestic and Eurobond markets, including investment grade and sub-investment-grade issues; and 2) 60% of the ICE BofA U.S. All Capital Securities Index (IOCS), a subset of the ICE BofA U.S. Corporate Index including all fixed-to-floating rate, perpetual callable and capital securities, which better represents the full breadth of the preferred and hybrid securities market, including investment grade and below investment grade exchange traded $25 par preferreds and investment grade and below investment grade rated $1,000 par capital securities. Index returns do not include the effects of any sales charges or management fees.

 

 

Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital.

 

 

Negative Convexity Risk: A characteristic of callable or pre-payable securities that causes investors to have their principal returned sooner than expected in a declining interest rate environment or later than expected in a rising interest rate environment. In the former scenario, investors may have to reinvest their funds at lower rates (“call risk”); in the latter, they may miss an opportunity to earn higher rates (“extension risk”). The word “convexity” refers to the convex shape of the curve that portrays the security’s price as a function of different yields.

 

 

Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares outstanding.

 

 

Option-adjusted spread (OAS): The option-adjusted spread (OAS) for a fixed-income security is the amount of yield that would need to be added to each of the discount rates used to value each of the security’s cash flows (typically based on the yields of U.S. Treasury securities) so that the sum of the discounted value of all of the security’s cash flows matches its market price, using a dynamic pricing model that takes into account any embedded options, such as call features, applicable to the security.

 

 

Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund’s capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.

 

80


 

 

Yield-to-Worst (YTW): Represents the lowest potential yield that an investor would receive on a bond if the issuer does not default. The yield to worst is calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer. The YTW is used to evaluate the worst-case scenario for yield to help investors manage their risk and exposures.

 

81


Reinvest Automatically, Easily and Conveniently

 

Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.

 

 

Nuveen Closed-End Funds Automatic Reinvestment Plan

Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.

By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.

It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.

Easy and convenient

To make recordkeeping easy and convenient, each quarter you’ll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.

How shares are purchased

The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.

Flexible

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.

You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.

The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.

Call today to start reinvesting distributions

For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.

 

 

82


Notes

 

 

83


LOGO

 

Nuveen:

Serving Investors for Generations

Since 1898, financial advisors and their clients have relied on Nuveen to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality solutions designed to be integral components of a well-diversified core portfolio.

Focused on meeting investor needs.

Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.

Find out how we can help you.

To learn more about how the products and services of Nuveen may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.

Learn more about Nuveen Funds at: www.nuveen.com/closed-end-funds

 

Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com        ESA-B-0120D
         1108023-INV-B-03/21


Item 2. Code of Ethics.

Not applicable to this filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this filing.

Item 6. Schedule of Investments.

(a) See Portfolio of Investments in Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to this filing.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to this filing.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this item.

Item 11. Controls and Procedures.

 

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

File the exhibits listed below as part of this Form.

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item  2 requirements through filing of an exhibit: Not applicable to this filing.

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

(a)(4) Change in registrant’s independent public accountant. Not applicable.

(b) If the report is filed under Section  13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2 (b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section  1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section  18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Nuveen Preferred and Income Term Fund

 

By (Signature and Title)   

/s/ Gifford R. Zimmerman

  
   Gifford R. Zimmerman   
   Vice President and Secretary   

Date: April 6, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)   

/s/ Cedric H. Antosiewicz

  
   Cedric H. Antosiewicz   
   Chief Administrative Officer   
   (principal executive officer)   

Date: April 6, 2020

 

By (Signature and Title)   

/s/ E. Scott Wickerham

  
  

E. Scott Wickerham

  
   Vice President and Controller   
   (principal financial officer)   

Date: April 6, 2020

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