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  

811-21293

Nuveen Preferred & Income Opportunities 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)

Mark L. Winget

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, 2022                    

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 2022

 

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 Fund (formerly Nuveen Preferred and Income 2022 Term Fund)
NPFD    Nuveen Variable Rate Preferred & Income Fund

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will not be sent to you by mail unless you specifically request paper copies of the reports. Instead, the reports will be made available on the 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.

You may elect to receive shareholder reports and other communications from the Funds electronically at any time 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, 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.

 

Semiannual Report


Life is Complex

 

Nuveen makes things e-simple.

It only takes a minute to sign up for e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Fund information is ready—no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish.

 

Free e-Reports right to your email!

www.investordelivery.com

If you receive your Nuveen Fund dividends and statements from your financial professional or brokerage account.

or

www.nuveen.com/client-access

If you receive your Nuveen Fund dividends and statements directly from Nuveen.

NOT FDIC INSURED  MAY LOSE VALUE  NO BANK GUARANTEE

 

LOGO


Table of Contents

 

Chair’s Letter to Shareholders

     4  

Important Notices

     5  

Fund Leverage

     7  

Common Share Information

     9  

Performance Overview and Holding Summaries

     12  

Shareholder Meeting Report

     22  

Portfolios of Investments

     23  

Statement of Assets and Liabilities

     57  

Statement of Operations

     58  

Statement of Changes in Net Assets

     59  

Statement of Cash Flows

     62  

Financial Highlights

     64  

Notes to Financial Statements

     70  

Risk Considerations

     85  

Additional Fund Information

     87  

Glossary of Terms Used in this Report

     88  

Annual Investment Management Agreement Approval Process

     91  

 

3


Chair’s Letter to Shareholders

 

LOGO

Dear Shareholders,

In February, the world witnessed Russia invade Ukraine. The scale of the humanitarian crisis and economic shock caused by these events cannot yet be quantified, and our thoughts remain with all those affected.

Given the fluidity of the situation, market uncertainty is currently high. Conditions were already challenging prior to the invasion, with inflation lingering at multi-decade highs, interest rates expected to continue rising, economic growth moderating from the post-pandemic recovery, and weakening performance across equity markets and some bond market segments. The Russia-Ukraine conflict has accelerated these trends in the short term. The spike in geopolitical risks led to surging prices for oil and other hard and soft commodities, driving both inflation and recession risks higher. The U.S. Federal Reserve (Fed) and other central banks now face an even more difficult task of slowing inflation without stifling economic growth. At their March 2022 meeting, Fed officials announced a quarter percentage point increase to the short-term interest rate, raising it from near zero for the first time since the pandemic was declared two years ago.

In the meantime, while markets will likely continue fluctuating with the daily headlines, we encourage investors to keep a long-term perspective. To learn more about how well your portfolio is aligned to your time horizon, risk tolerance and investment goals, consider reviewing it with your financial professional.

On behalf of the other members of the Nuveen Fund Board, I look forward to continuing to earn your trust in the months and years ahead.

Sincerely,

 

LOGO

Terence J. Toth

Chair of the Board

March 23, 2022

 

 

4


Important Notices

 

For Shareholders of

Nuveen Preferred & Income Opportunities Fund (JPC)

Nuveen Preferred and Income Term Fund (JPI)

Nuveen Preferred & Income Securities Fund (JPS)

Nuveen Preferred and Income Fund (JPT)

Nuveen Variable Rate Preferred & Income Fund (NPFD)

Portfolio Manager Commentaries in Semiannual Reports

Beginning with this semiannual shareholder report, the Funds will include portfolio manager commentary only in their annual shareholder reports. For the Funds’ most recent annual portfolio manager discussion, please refer to the Portfolio Managers’ Comments section of the Funds’ July 31, 2021 annual shareholder report.

For current information on your Fund’s investment objectives, portfolio management team and average annual total returns please refer to the Fund’s website at www.nuveen.com.

For changes that occurred to your Fund both during and subsequent to this reporting period, please refer to the Notes to Financial Statements section of this report.

For average annual total returns as of the end of this reporting period, please refer to the Performance Overview and Holding Summaries section within this report.

Fund Restructuring for Nuveen Preferred and Income Fund (JPT)

Events that occurred during the current reporting period

On January 19, 2022, shareholders of Nuveen Preferred and Income Fund (JPT) approved a proposal to restructure the fund (the “restructuring”). The restructuring allowed shareholders the opportunity to maintain their investment in JPT and its exposure to a leveraged strategy focused on preferred and other income producing securities in lieu of the scheduled termination of the fund. The effectiveness of the restructuring was contingent on the success of the fund’s tender offer.

On January 20, 2022, JPT conducted a tender offer, which allowed shareholders to offer up to 100% of their shares for repurchase for cash at a price per share equal to 100% of the net asset value (“NAV”) per share determined on the date the tender offer expired.

Events that occurred subsequent to the current reporting period

JPT’s tender offer expired on February 17, 2022. In the tender offer 2,454,617 shares were tendered, representing approximately 36% of JPT’s common shares outstanding. Properly tendered shares were repurchased $23.2613 per share, which was the NAV of the fund as of the close of ordinary trading on the New York Stock Exchange on February 17, 2022.

As a result of the successful completion of the tender offer, the restructuring of the JPT was completed and on February 28, 2022 the following changes became effective.

 

   

JPT’s declaration of trust was amended to eliminate the term structure of the fund.

 

   

JPT’s investment policies were amended to permit investment in contingent capital securities (CoCos).

 

   

JPT’s use of leverage is expected to increase from current levels.

 

5


Important Notices (continued)

 

   

JPT’s name changed to Nuveen Preferred and Income Fund.

 

   

Nuveen Fund Advisors, LLC, the investment adviser to the fund, will waive 50% of the fund’s net management fees beginning February 8, 2022 and continuing over the first year following the elimination of the term structure.

More details about JPT’s restructuring is available on www.nuveen.com/cef.

Additional Market Disruption Risk

In late February 2022, Russia launched a large scale military attack on Ukraine. The invasion significantly amplified already existing geopolitical tensions among Russia, Ukraine, Europe, NATO and the West, including the U.S. In response to the military action by Russia, various countries, including the U.S., the United Kingdom, and European Union issued broad-ranging economic sanctions against Russia. Such sanctions included, among other things, a prohibition on doing business with certain Russian companies, large financial institutions, officials and oligarchs; a commitment by certain countries and the European Union to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications (“SWIFT”), the electronic banking network that connects banks globally; and restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions.

Additional sanctions may be imposed in the future. Such sanctions (and any future sanctions) and other actions against Russia may adversely impact, among other things, the Russian economy and various sectors of the economy, including but not limited to, financials, energy, metals and mining, engineering and defense and defense-related materials sectors; resulting in a decline in the value and liquidity of Russian securities; resulting in boycotts, tariffs, and purchasing and financing restrictions on Russia’s government, companies and certain individuals; weaken the value of the ruble; downgrade the country’s credit rating; freeze Russian securities and/or funds invested in prohibited assets and impair the ability to trade in Russian securities and/or other assets; and have other adverse consequences on the Russian government, economy, companies and region. Further, several large corporations and U.S. states have announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses.

The ramifications of the hostilities and sanctions, however, may not be limited to Russia and Russian companies but may spill over to and negatively impact other regional and global economic markets (including Europe and the United States), companies in other countries (particularly those that have done business with Russia) and on various sectors, industries and markets for securities and commodities globally, such as oil and natural gas. Accordingly, the actions discussed above and the potential for a wider conflict could increase financial market volatility, cause severe negative effects on regional and global economic markets, industries, and companies and have a negative effect on your Fund’s investments and performance beyond any direct exposure to Russian issuers or those of adjoining geographic regions. In addition, Russia may take retaliatory actions and other countermeasures, including cyberattacks and espionage against other countries and companies around the world, which may negatively impact such countries and the companies in which your Fund invests.

The extent and duration of the military action or future escalation of such hostilities, the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted. These and any related events could have a significant impact on Fund performance and the value of an investment in the Fund, particularly with respect to Russian exposure.

 

6


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 JPS and NPFD. 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 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. All this will make the shares’ 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, leverage nevertheless continues to provide the opportunity for incremental common share income, particularly over longer-term periods.

The Funds’ use of leverage had a negative impact on total return performance during this reporting period.

JPC, JPI and JPS continued to use interest rate swap contracts to partially hedge the interest cost of leverage. During the period, these interest rate swaps had a positive impact on the overall fund performance of JPC, JPI and JPS.

As of January 31, 2022, the Funds’ percentages of leverage are as shown in the accompanying table.

 

     JPC        JPI        JPS        JPT        NPFD  

Effective Leverage*

    37.42        35.31        37.20        22.27        34.50

Regulatory Leverage*

    32.13        29.97        31.05        22.27        24.71
*

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.

 

7


Fund Leverage (continued)

 

THE FUNDS’ LEVERAGE

Bank Borrowings

As noted previously, the Funds employ leverage through the use of bank borrowings. The Funds’ bank borrowing activities are as shown in the accompanying table.

 

    Current Reporting Period           Subsequent to the Close of the Reporting Period  

Fund

 

Outstanding
Balance as of
August 1, 2021

   

Draws

   

Paydowns

   

Outstanding
Balance as of
January 31, 2022

    Average Balance
Outstanding
           Draws     Paydowns     Outstanding
Balance as of
March 23, 2022
 

JPC

  $ 462,700,000     $ 10,700,000     $     $ 473,400,000     $ 470,192,120             $     —     $ (40,000,000   $ 433,400,000  

JPI

  $ 234,800,000     $ 1,200,000     $     $ 236,000,000     $ 235,060,870             $     —     $ (5,000,000   $ 231,000.000  

JPS

  $ 873,300,000     $     —     $     $ 873,300,000     $ 873,300,000             $     —     $ (59,000,000   $ 814,300,000  

JPT

  $ 47,000,000     $     —     $     —     $ 47,000,000     $ 47,000,000             $     —     $     —     $ 47,000,000  

NPFD

  $     —     $ 193,200,000     $     —     $ 193,200,000     $ 166,533,333           $ 12,000,000     $ (1,600,000   $ 203,600,000  
*

For the period January 11, 2022 (initial draw) through January 31, 2022.

Refer to Notes to Financial Statements, Note 8 – Fund Leverage for further details.

Reverse Repurchase Agreements

As noted previously, JPC, JPI, JPS and NPFD used reverse repurchase agreements, in which the Funds sell 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.

 

    Current Reporting Period           Subsequent to the Close of the Reporting Period  

Fund

 

Outstanding
Balance as of
August 1, 2021

   

Sales

   

Purchases

   

Outstanding
Balance as of
January 31, 2022

    Average Balance
Outstanding
           Sales     Purchases     Outstanding
Balance as of
March 23, 2022
 

JPC

  $ 121,000,000     $ 7,000,000     $ (3,500,000   $ 124,500,000     $ 124,274,457             $     —     $ (22,400,000   $ 102,100,000  

JPI

  $ 56,500,000     $ 9,100,000     $ (600,000   $ 65,000,000     $ 63,853,804             $     —     $     —     $ 65,000,000  

JPS

  $ 275,000,000     $     —     $     $ 275,000,000     $ 275,000,000             $     —     $     —     $ 275,000,000  

NPFD

  $     —     $ 120,000,000     $ (3,200,000   $ 116,800,000     $ 102,577,778 **            $     —     $ (8,398,000   $ 108,402,000  
**

For the period January 5, 2022 (initial purchase of reverse repurchase agreements) through January 31, 2022.

Refer to Notes to Financial Statements, Note 8 – Fund Leverage for further details.

 

8


Common Share Information

 

COMMON SHARE DISTRIBUTION INFORMATION

The following information regarding the Funds’ distributions is current as of January 31, 2022. 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 2021

  $ 0.0530        $ 0.1305        $ 0.0505        $ 0.1185  

September

    0.0530          0.1305          0.0505          0.1185  

October

    0.0530          0.1305          0.0505          0.1185  

November

    0.0530          0.1305          0.0505          0.1185  

December

    0.0530          0.1305          0.0505          0.1185  

January 2022

    0.0530          0.1305          0.0505          0.1185  

Total Distributions

  $ 0.3180        $ 0.7830        $ 0.3030        $ 0.7110  

Current Distribution Rate*

    6.92        6.46        6.47        5.96
*

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.

NPFD declared its first distribution of $0.1380 during January 2022, for shareholders of record on February 15, 2022 and payable on March 1, 2022 (subsequent to the end of the reporting period). 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 common 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 each Fund 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.

NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS

The Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders are posted on www.nuveen.com and can be found on Nuveen’s enhanced closed-end fund resource page, which is at https://www.nuveen.com/resource-center-closed-end-funds, along with other Nuveen closed-end fund product updates. To ensure timely access to the latest information, shareholders may use a subscribe function, which can be activated at this web page (https://www.nuveen.com/subscriptions).

 

9


Common Share Information (continued)

 

COMMON SHARE EQUITY SHELF PROGRAMS

During the current reporting period, JPC and JPS were authorized by the Securities and Exchange Commission to issue additional common shares through an equity shelf program (Shelf Offering). Under these programs, JPC and JPS, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above each Fund’s NAV per common share. The maximum aggregate offering under these Shelf Offerings, are as shown in the accompanying table.

 

     JPC        JPS  

Maximum aggregate offering

    Unlimited          Unlimited  

During the current reporting period, JPS and JPC sold common shares through their Shelf Offerings at a weighted average premium to its NAV per common share as shown in the accompanying table.

 

     JPC        JPS  

Common shares sold through shelf offering

    1,185,860          921,252  

Weighted average premium to NAV per common share sold

    1.18        1.16

Refer to Notes to Financial Statements, Note 5 – Fund Shares for further details of Shelf Offerings and each Fund’s transactions.

COMMON SHARE REPURCHASES

During August 2021, the Funds’ Board of Trustees reauthorized an open-market share repurchase program, allowing JPC, JPI, JPS and JPT to repurchase an aggregate of up to approximately 10% of its outstanding common shares. NPFD is currently not authorized to repurchase its common shares.

During the current reporting period, the Funds did not repurchase any of their outstanding common shares. As of January 31, 2022 (and since the inception of the Funds’ repurchase programs), each Fund has cumulatively repurchased and retired its 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

    10,380,000          2,275,000          20,475,000          680,000  

OTHER COMMON SHARE INFORMATION

As of January 31, 2022, the Funds’ common share prices were trading at a premium/(discount) to their common share NAV and trading at an average premium/(discount) to NAV during the current reporting period, as follows.

 

     JPC        JPI        JPS        JPT        NPFD  

Common share NAV

  $ 9.52        $ 24.21        $ 9.43        $ 23.96        $ 24.36  

Common share price

  $ 9.19        $ 24.25        $ 9.28        $ 23.87        $ 24.78  

Premium/(Discount) to NAV

    (3.47 )%         0.17        (1.59 )%         (0.38 )%         1.72

Average premium/(discount) to NAV

    (0.53 )%         1.19        (0.46 )%         0.26        2.40

 

10


THIS PAGE INTENTIONALLY LEFT BLANK

 

11


JPC     

Nuveen Preferred & Income Opportunities Fund

Performance Overview and Holding Summaries as of January 31, 2022

 

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, 2022*

 

    Cumulative        Average Annual  
     6-Month        1-Year        5-Year        10-Year  
JPC at Common Share NAV     (0.76)%          5.48%          5.64%          8.14%  
JPC at Common Share Price     (5.03)%          7.02%          6.03%          9.08%  
ICE BofA U.S. All Capital Securities Index     (2.31)%          1.63%          5.86%          6.81%  
JPC Blended Benchmark     (2.48)%          1.21%          5.79%          6.14%  

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.

Daily Common Share NAV and Share Price

 

LOGO

 

*

For purposes of Fund performance, relative results are measured against the JPC Blended Benchmark. The JPC Blended Benchmark consists of: 1) 50% ICE BofA Fixed Rate Preferred Securities Index, 2) 30% ICE BofA U.S. All Capital Securities Index and 3) 20% ICE USD Contingent Capital Index (CDLR). Prior to December 31, 2013: 1) 82.5% ICE BofA Fixed Rate Preferred Securities Index and 2) 17.5% Bloomberg Capital Securities Index. Refer to the Glossary of Terms Used in this Report for further details on the Fund’s Blended Benchmark compositions.

 

12


 

 

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     80.5%  
$25 Par (or similar) Retail Preferred     34.2%  
Contingent Capital Securities     30.7%  
Corporate Bonds     8.3%  
Convertible Preferred Securities     4.1%  
Common Stocks     0.4%  
Repurchase Agreements     1.5%  
Other Assets Less Liabilities     0.1%  

Net Assets Plus Borrowings and Reverse Repurchase Agreements

    159.8%  
Borrowings     (47.3)%  
Reverse Repurchase Agreements     (12.5)%  

Net Assets

    100%  

Portfolio Composition

(% of total investments)

 

Banks     41.0%  
Insurance     14.3%  
Capital Markets     9.6%  
Food Products     5.2%  
Diversified Financial Services     3.8%  
Electric Utilities     3.6%  
Multi-Utilities     2.7%  
Other2     18.8%  
Repurchase Agreements     1.0%  

Total

    100%  

Country Allocation1

(% of total investments)

 

United States     73.3%  
United Kingdom     8.0%  
Switzerland     4.1%  
France     3.4%  
Canada     3.1%  
Spain     1.3%  
Australia     1.3%  
Netherlands     1.1%  
Germany     1.0%  
Italy     0.9%  
Ireland     0.7%  
Other     1.8%  

Total

    100%  
 

 

Top Five Issuers

(% of total long-term
investments)

 

Citigroup Inc     3.4%  
JPMorgan Chase & Co     3.2%  
Bank of America Corp     2.9%  
Wells Fargo & Co     2.9%  
Land O’ Lakes Inc     2.8%  

Portfolio Credit Quality

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

 

A     0.1%  
BBB     57.8%  
BB or Lower     36.8%  
N/R (not rated)     5.3%  

Total

    100%  
 

 

 

1

Includes 1.3% (as a percentage of total investments) in emerging market countries.

2

See the Portfolio of Investments for the remaining industries comprising “Other” and not listed in the Portfolio Composition above.

 

13


JPI     

Nuveen Preferred and Income Term Fund

Performance Overview and Holding Summaries as of January 31, 2022

 

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, 2022*

 

    Cumulative        Average Annual  
     6-Month        1-Year        5-Year        Since
Inception
 
JPI at Common Share NAV     (1.57)%          5.19%          6.74%          7.94%  
JPI at Common Share Price     (4.71)%          6.60%          7.54%          7.79%  
ICE BofA U.S. All Capital Securities Index     (2.31)%          1.63%          5.86%          6.65%  
JPI Blended Benchmark     (2.01)%          1.86%          6.38%          5.98%  

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.

Daily Common Share NAV and Share Price

 

LOGO

 

 

*

For purposes of Fund performance, relative results are measured against the JPI Blended Benchmark. The JPI Blended Benchmark consists of: 1) 60% ICE BofA U.S. All Capital Securities Index and 2) 40% ICE USD Contingent Capital Index (CDLR). Prior to December 31, 2013: 1) 65% ICE BofA Fixed Rate Preferred Securities Index and 2) 35% Bloomberg Capital Securities Index. Refer to the Glossary of Terms Used in this Report for further details on the Fund’s Blended Benchmark compositions.

 

14


 

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

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     72.7%  
Contingent Capital Securities     51.9%  
$25 Par (or similar) Retail Preferred     28.2%  
Corporate Bonds     0.7%  
Repurchase Agreements     0.2%  
Other Assets Less Liabilities     0.9%  

Net Assets Plus Borrowings and Reverse Repurchase Agreements

    154.6%  
Borrowings     (42.8)%  
Reverse Repurchase Agreements     (11.8)%  

Net Assets

    100%  

Portfolio Composition

(% of total investments)

 

Banks     48.0%  
Insurance     14.6%  
Capital Markets     12.1%  
Diversified Financial Services     4.8%  
Food Products     4.7%  
Other2     15.7%  
Repurchase Agreements     0.1%  

Total

    100%  

Country Allocation1

(% of total investments)

 

United States     58.0%  
United Kingdom     12.8%  
Switzerland     7.2%  
France     6.0%  
Spain     2.3%  
Australia     2.2%  
Canada     2.0%  
Netherlands     1.9%  
Germany     1.7%  
Italy     1.5%  
Ireland     1.2%  
Other     3.2%  

Total

    100%  
 

 

Top Five Issuers

(% of total long-term
investments)

 

UBS Group AG     3.7%  
HSBC Holdings PLC     3.6%  
Credit Suisse Group AG     3.5%  
Citigroup Inc     3.2%  
Barclays PLC     3.1%  

Portfolio Credit Quality

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

 

A     0.2%  
BBB     61.2%  
BB or Lower     36.2%  
N/R (not rated)     2.4%  

Total

    100%  
 

 

 

1

Includes 2.1% (as a percentage of total investments) in emerging market countries.

2

See the Portfolio of Investments for the remaining industries comprising “Other” and not listed in the Portfolio Composition above.

 

15


JPS     

Nuveen Preferred & Income Securities Fund

Performance Overview and Holding Summaries as of January 31, 2022

 

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, 2022*

 

    Cumulative        Average Annual  
     6-Month        1-Year        5-Year        10-Year  
JPS at Common Share NAV     (1.84)%          3.42%          6.51%          8.41%  
JPS at Common Share Price     (4.43)%          5.75%          6.54%          8.64%  
ICE BofA U.S. All Capital Securities Index     (2.31)%          1.63%          5.86%          6.48%  
JPS Blended Benchmark     (2.01)%          1.86%          6.38%          6.78%  

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.

Daily Common Share NAV and Share Price

 

LOGO

 

 

*

For purposes of Fund performance, relative results are measured against the JPS Blended Benchmark. The JPS Blended Benchmark consists of: 1) 60% ICE BofA U.S. All Capital Securities Index and 2) 40% ICE USD Contingent Capital Index (CDLR). Prior to December 31, 2013: 1) 55% ICE BofA Fixed Rate Preferred Securities Index and 2) 45% Bloomberg Capital Securities Tier-1 Index. Refer to the Glossary of Terms Used in this Report for further details on the Fund’s Blended Benchmark compositions.

 

16


 

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

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      79.1%  
Contingent Capital Securities      54.8%  
$25 Par (or similar) Retail Preferred      16.7%  
Corporate Bonds      4.5%  
Convertible Preferred Securities      1.8%  
Investment Companies      1.1%  
Repurchase Agreements      1.1%  
Other Assets Less Liabilities      0.1%  

Net Assets Plus Borrowings and Reverse Repurchase Agreements

     159.2%  
Borrowings      (45.0)%  
Reverse Repurchase Agreements      (14.2)%  

Net Assets

     100%  

Portfolio Composition

(% of total investments)

 

Banks      52.0%  
Insurance      15.5%  
Capital Markets      14.0%  
Electric Utilities      3.9%  
Other2      13.2%  
Repurchase Agreements      0.7%  
Investment Companies      0.7%  

Total

     100%  

Country Allocation1

(% of total investments)

 

United States      52.8%  
United Kingdom      13.4%  
France      10.0%  
Switzerland      8.1%  
Finland      2.8%  
Canada      2.2%  
Spain      2.0%  
Norway      1.8%  
Netherlands      1.2%  
Australia      1.2%  
Japan      1.2%  
Other      3.3%  

Total

     100%  
 

 

Top Five Issuers

(% of total long-term
investments)

 

Barclays PLC      4.1%  
UBS Group AG      3.4%  
Wells Fargo & Co      3.3%  
BNP Paribas SA      3.2%  
Societe Generale SA      3.2%  

Portfolio Credit Quality

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

 

A     7.1%  
BBB     79.2%  
BB or Lower     13.7%  

Total

    100%  
 

 

 

1

Includes 0.0% (as a percentage of total investments) in emerging market countries.

2

See the Portfolio of Investments for the remaining industries comprising “Other” and not listed in the Portfolio Composition above.

 

17


JPT     

Nuveen Preferred and Income Fund

Performance Overview and Holding Summaries as of January 31, 2022

 

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, 2022*

 

    Cumulative        Average Annual  
     6-Month        1-Year        5-Year        Since
Inception
 
JPT at Common Share NAV     (1.51)%          4.06%          5.55%          5.49%  
JPT at Common Share Price     (3.46)%          2.79%          5.25%          5.15%  
ICE BofA U.S. All Capital Securities Index     (2.31)%          1.63%          5.86%          5.90%  

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.

Daily Common Share NAV and Share Price

 

LOGO

 

 

*

For purposes of Fund performance, relative results are measured against the ICE BofA U.S. All Capital Securities Index.

 

18


 

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

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

    93.6%  

$25 Par (or similar) Retail Preferred

    32.6%  

Corporate Bonds

    1.3%  

Repurchase Agreements

    0.4%  

Other Assets Less Liabilities

    0.8%  

Net Assets Plus Borrowings

    128.7%  

Borrowings

    (28.7)%  

Net Assets

    100%  

Portfolio Composition

(% of total investments)

 

Banks

    32.0%  

Insurance

    23.7%  

Capital Markets

    7.1%  

Food Products

    7.0%  

Diversified Financial Services

    6.9%  

Oil, Gas & Consumable Fuels

    4.4%  

Other2

    18.5%  

Repurchase Agreements

    0.4%  

Total

    100%  

Country Allocation1

(% of total investments)

 

United States

    83.1%  

Canada

    3.7%  

United Kingdom

    2.8%  

Ireland

    2.8%  

Bermuda

    2.3%  

Australia

    2.3%  

France

    1.6%  

Other

    1.4%  

Total

    100%  
 

 

Top Five Issuers

(% of total long- term investments)

 

Citigroup Inc

    4.2%  

JPMorgan Chase & Co

    3.8%  

Wells Fargo & Co

    3.4%  

Land O’ Lakes Inc

    3.3%  

Bank of America Corp

    3.1%  

Portfolio Credit Quality

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

 

A     1.1%  
BBB     60.7%  
BB or Lower     35.1%  
N/R (not rated)     3.1%  

Total

    100%  
 

 

1

Includes 2.8% (as a percentage of total investments) in emerging market countries.

2

See the Portfolio of Investments for the remaining industries comprising “Other” and not listed in the Portfolio Composition above.

 

19


NPFD     

Nuveen Variable Rate Preferred & Income Fund

Performance Overview and Holding Summaries as of January 31, 2022

 

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

Cumulative Total Returns as of January 31, 2022*

 

        Since
Inception
 
NPFD at Common Share NAV        (2.56)%  
NPFD at Common Share Price        (0.88)%  
ICE Variable Rate Preferred & Hybrid Securities Index        (0.73)%  
NPFD Blended Benchmark        (0.83)%  

Since inception returns are from 12/15/2021. 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.

Daily Common Share NAV and Share Price

 

LOGO

 

 

*

For purposes of Fund performance, relative results are measured against the NPFD Blended Benchmark. The NPFD Blended Benchmark consists of: 1) 80% ICE Variable Rate Preferred & Hybrid Securities Index and 2) 20% ICE USD Contingent Capital Index (CDLR).

 

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

    94.1%  

Contingent Capital Securities

    30.6%  

$25 Par (or similar) Retail Preferred

    24.2%  

Repurchase Agreements

    0.5%  

Other Assets Less Liabilities

    3.3%  

Net Assets Plus Borrowings and Reverse Repurchase Agreements

    152.7%  

Borrowings

    (32.8)%  

Reverse Repurchase Agreements

    (19.9)%  

Net Assets

    100%  

Portfolio Composition

(% of total investments)

 

Banks

    45.3%  

Insurance

    13.6%  

Capital Markets

    12.6%  

Oil, Gas & Consumable Fuels

    5.1%  

Trading Companies & Distributors

    3.6%  

Electric Utilities

    3.3%  

Other2

    16.2%  
Repurchase Agreements     0.3%  

Total

    100%  

Country Allocation1

(% of total investments)

 

United States

    66.5%  

United Kingdom

    9.0%  

Canada

    4.7%  

Switzerland

    4.5%  

France

    3.8%  

Ireland

    2.2%  

Australia

    2.1%  

Spain

    1.4%  

Netherlands

    1.2%  

Italy

    1.2%  

Other

    3.4%  

Total

    100%  
 

 

Top Five Issuers

(% of total long- term investments)

 

Citigroup Inc

    4.8%  

JPMorgan Chase & Co

    4.4%  

Wells Fargo & Co

    3.8%  

Bank of America Corp

    3.3%  

Goldman Sachs Group Inc

    3.0%  

Portfolio Credit Quality

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

 

A     0.2%  
BBB     63.8%  
BB or Lower     33.5%  
N/R (not rated)     2.5%  

Total

    100%  
 

 

1

Includes 1.8% (as a percentage of total investments) in emerging market countries.

2

See the Portfolio of Investments for the remaining industries comprising “Other” and not listed in the Portfolio Composition above.

 

21


Shareholder Meeting Report

 

A special meeting of shareholders was held on December 17, 2021 for JPT. The meeting was held virtually due to public health concerns regarding the ongoing COVID-19 pandemic; at this meeting shareholders were asked to approve an amendment to the Fund’s Declaration of Trust. The meeting was subsequently adjourned to January 19, 2022 in order to seek additional shareholder participation.

 

     JPT  
     Common
Shares
 

To approve an amendment to the Fund’s Declaration of Trust

 

For

    3,462,697  

Against

    299,684  

Abstain

    186,995  

Total

    3,949,376  

 

22


JPC   

Nuveen Preferred & Income
Opportunities Fund

 

Portfolio of Investments    January 31, 2022

     (Unaudited)

 

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

LONG-TERM INVESTMENTS – 158.2% (99.0% of Total Investments)

 

  
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 80.5% (50.4% of Total Investments)

 

     
 

Auto Components – 1.1%

 

$ 3,625    

Adient US LLC, 144A

    9.000%        4/15/25        BB-      $ 3,841,412  
  6,600    

American Axle & Manufacturing Inc, (3)

    6.500%        4/01/27        B+        6,798,000  
 

Total Auto Components

                               10,639,412  
      Automobiles – 3.1%  
  7,485    

General Motors Financial Co Inc

    5.700%        N/A (4)        BB+        8,411,643  
  9,140    

General Motors Financial Co Inc, (3)

    5.750%        N/A (4)        BB+        9,645,442  
  11,750    

General Motors Financial Co Inc, (3), (5)

    6.500%        N/A (4)        BB+        12,807,500  
 

Total Automobiles

                               30,864,585  
      Banks – 32.1%  
  3,685    

Bank of America Corp

    4.375%        N/A (4)        BBB+        3,639,306  
  3,540    

Bank of America Corp

    6.250%        N/A (4)        BBB+        3,752,400  
  27,985    

Bank of America Corp, (3), (5), (6)

    6.500%        N/A (4)        BBB+        30,117,457  
  5,560    

Bank of America Corp, (3)

    6.300%        N/A (4)        BBB+        6,088,200  
  1,415    

Bank of America Corp

    6.100%        N/A (4)        BBB+        1,525,243  
  1,820    

Citigroup Inc

    4.150%        N/A (4)        BBB-        1,775,810  
  16,055    

Citigroup Inc, (3)

    6.250%        N/A (4)        BBB-        17,740,775  
  6,290    

Citigroup Inc, (3)

    5.000%        N/A (4)        BBB-        6,360,071  
  9,981    

Citigroup Inc

    5.950%        N/A (4)        BBB-        10,529,955  
  7,145    

Citigroup Inc

    6.300%        N/A (4)        BBB-        7,347,204  
  2,215    

Citizens Financial Group Inc, (3)

    4.000%        N/A (4)        BB+        2,173,469  
  1,685    

Citizens Financial Group Inc

    6.375%        N/A (4)        BB+        1,727,125  
  3,150    

CoBank ACB, (3)

    6.250%        N/A (4)        BBB+        3,449,250  
  2,420    

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

    5.700%        N/A (4)        Baa1        2,571,250  
  1,900    

Fifth Third Bancorp, (3)

    4.500%        N/A (4)        Baa3        1,957,000  
  14,985    

First Citizens BancShares Inc/NC

    5.800%        N/A (4)        N/R        15,546,937  
  910    

Goldman Sachs Group Inc/The

    4.400%        N/A (4)        BB+        889,525  
  925    

Goldman Sachs Group Inc/The

    3.800%        N/A (4)        BBB-        889,656  
  2,314    

HSBC Capital Funding Dollar 1 LP, 144A

    10.176%        N/A (4)        BBB        3,748,680  
  3,025    

Huntington Bancshares Inc/OH, (3)

    5.700%        N/A (4)        Baa3        3,040,125  
  5,525    

Huntington Bancshares Inc/OH

    5.625%        N/A (4)        Baa3        6,203,028  
  2,660    

JPMorgan Chase & Co, (3)

    6.100%        N/A (4)        BBB+        2,822,925  
  33,555    

JPMorgan Chase & Co, (3)

    6.750%        N/A (4)        BBB+        35,927,338  
  4,665    

JPMorgan Chase & Co

    3.650%        N/A (4)        BBB+        4,484,791  
  7,275    

JPMorgan Chase & Co

    5.000%        N/A (4)        BBB+        7,402,313  
  2,485    

KeyCorp

    5.000%        N/A (4)        Baa3        2,615,463  
  12,655    

Lloyds Bank PLC, 144A

    12.000%        N/A (4)        Baa3        12,655,000  
  1,440    

M&T Bank Corp, (3)

    3.500%        N/A (4)        Baa2        1,353,758  
  1,880    

M&T Bank Corp

    5.125%        N/A (4)        Baa2        1,997,848  
  6,970    

M&T Bank Corp, (3)

    6.450%        N/A (4)        Baa2        7,325,121  
  2,222    

PNC Financial Services Group Inc/The

    5.000%        N/A (4)        Baa2        2,310,880  
  1,710    

PNC Financial Services Group Inc/The

    3.400%        N/A (4)        Baa2        1,611,658  
  21,977    

PNC Financial Services Group Inc/The, (3-Month LIBOR reference rate + 3.678% spread), (3), (7)

    3.804%        N/A (4)        Baa2        22,130,950  
  8,290    

Regions Financial Corp

    5.750%        N/A (4)        BB+        8,912,496  
  785    

SVB Financial Group

    4.700%        N/A (4)        Baa2        779,270  
  875    

SVB Financial Group

    4.100%        N/A (4)        Baa2        826,193  
  3,690    

SVB Financial Group

    4.000%        N/A (4)        Baa2        3,586,570  
  10,155    

Truist Financial Corp, (5)

    4.800%        N/A (4)        Baa2        10,358,100  
  2,690    

Truist Financial Corp

    5.100%        N/A (4)        Baa2        2,918,650  
  1,930    

Truist Financial Corp

    5.050%        N/A (4)        Baa2        1,910,700  

 

23


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks (continued)  
$ 9,458    

Truist Financial Corp, (5)

    4.950%        N/A (4)        Baa2      $ 10,010,536  
  1,385    

Wells Fargo & Co, (3)

    7.950%        11/15/29        Baa1        1,848,155  
  7,780    

Wells Fargo & Co, (3)

    3.900%        N/A (4)        Baa2        7,705,701  
  20,134    

Wells Fargo & Co, (3), (5)

    5.875%        N/A (4)        Baa2        21,524,252  
  3,490    

Wells Fargo & Co

    5.900%        N/A (4)        Baa2        3,577,250  
  11,196    

Zions Bancorp NA, (5)

    7.200%        N/A (4)        BB+        11,847,160  
  1,105    

Zions Bancorp NA

    5.800%        N/A (4)        BB+        1,126,609  
 

Total Banks

                               320,642,153  
      Capital Markets – 3.3%  
  2,040    

Bank of New York Mellon Corp/The

    4.700%        N/A (4)        Baa1        2,149,650  
  2,250    

Charles Schwab Corp/The, (3)

    4.000%        N/A (4)        BBB        2,222,843  
  4,325    

Charles Schwab Corp/The

    7.000%        N/A (4)        BBB        4,352,031  
  11,935    

Charles Schwab Corp/The

    5.375%        N/A (4)        BBB        12,818,190  
  5,069    

Goldman Sachs Group Inc/The

    5.500%        N/A (4)        BBB-        5,316,621  
  1,555    

Goldman Sachs Group Inc/The

    4.125%        N/A (4)        BBB-        1,518,069  
  4,411    

Goldman Sachs Group Inc/The

    5.300%        N/A (4)        BBB-        4,730,797  
 

Total Capital Markets

                               33,108,201  
      Communications Equipment – 0.2%  
  2,315    

Vodafone Group PLC, (3)

    4.125%        6/04/81        BB+        2,205,084  
      Consumer Finance – 3.5%  
  14,134    

Ally Financial Inc, (3)

    4.700%        N/A (4)        Ba2        13,973,579  
  6,365    

Ally Financial Inc

    4.700%        N/A (4)        Ba2        6,301,350  
  3,335    

American Express Co

    3.550%        N/A (4)        Baa2        3,193,262  
  3,215    

Capital One Financial Corp

    3.950%        N/A (4)        Baa3        3,142,663  
  8,120    

Discover Financial Services, (3)

    6.125%        N/A (4)        Ba2        8,761,967  
 

Total Consumer Finance

                               35,372,821  
      Diversified Financial Services – 4.4%  
  9,325    

American AgCredit Corp, 144A, (3)

    5.250%        N/A (4)        BB+        9,511,500  
  2,590    

Capital Farm Credit ACA, 144A, (3)

    5.000%        N/A (4)        BB        2,654,750  
  13,000    

Compeer Financial ACA, 144A, (3), (9)

    6.750%        N/A (4)        BB+        13,104,000  
  1,100    

Compeer Financial ACA, 144A

    4.875%        N/A (4)        BB+        1,116,500  
  3,670    

Equitable Holdings Inc

    4.950%        N/A (4)        BBB-        3,770,925  
  13,001    

Voya Financial Inc, (3)

    6.125%        N/A (4)        BBB-        13,456,035  
 

Total Diversified Financial Services

                               43,613,710  
      Electric Utilities – 4.6%                           
  2,070    

American Electric Power Co Inc

    3.875%        2/15/62        BBB-        2,030,551  
  5,880    

Edison International, (3)

    5.000%        N/A (4)        BB+        5,857,538  
  1,200    

Edison International, (3)

    5.375%        N/A (4)        BB+        1,217,250  
  1,565    

Electricite de France SA, 144A, (3)

    5.250%        N/A (4)        Baa3        1,590,431  
  21,680    

Emera Inc, (3)

    6.750%        6/15/76        BB+        24,444,200  
  7,475    

NextEra Energy Capital Holdings Inc, (3)

    5.650%        5/01/79        BBB        8,307,373  
  2,165    

Southern Co/The, (6)

    4.000%        1/15/51        BBB-        2,181,259  
 

Total Electric Utilities

                               45,628,602  
      Food Products – 4.6%                           
  2,145    

Dairy Farmers of America Inc, 144A

    7.125%        N/A (4)        BB+        2,236,162  
  3,860    

Land O’ Lakes Inc, 144A, (3)

    7.250%        N/A (4)        BB        4,159,150  
  29,460    

Land O’ Lakes Inc, 144A, (3)

    8.000%        N/A (4)        BB        31,632,675  
  7,435    

Land O’ Lakes Inc, 144A, (3)

    7.000%        N/A (4)        BB        7,881,100  
 

Total Food Products

                               45,909,087  
      Health Care Providers & Services – 0.5%                           
  4,900    

Tenet Healthcare Corp, 144A, (3)

    7.500%        4/01/25        B+        5,104,683  
      Independent Power & Renewable Electricity Producers – 1.6%                           
  1,350    

AES Andes SA, 144A, (3)

    7.125%        3/26/79        BB        1,380,443  

 

24


  
  
  

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Independent Power & Renewable Electricity Producers (continued)                           
$ 2,775    

AES Andes SA, 144A

    6.350%        10/07/79        BB      $ 2,822,716  
  8,525    

Vistra Corp, 144A

    8.000%        N/A (4)        Ba3        8,844,687  
  2,815    

Vistra Corp, 144A

    7.000%        N/A (4)        Ba3        2,800,925  
 

Total Independent Power & Renewable Electricity Producers

                               15,848,771  
      Industrial Conglomerates – 0.9%                           
  9,026    

General Electric Co, (3-Month LIBOR reference rate + 3.330% spread), (3), (7)

    3.533%        N/A (4)        BBB-        8,822,915  
      Insurance – 13.1%                           
  1,615    

Aegon NV

    5.500%        4/11/48        BBB        1,816,270  
  1,550    

American International Group Inc, (6)

    5.750%        4/01/48        BBB-        1,690,384  
  9,409    

Assurant Inc

    7.000%        3/27/48        BB+        10,655,692  
  11,519    

Assured Guaranty Municipal Holdings Inc, 144A, (6)

    6.400%        12/15/66        BBB+        12,651,080  
  2,465    

AXIS Specialty Finance LLC

    4.900%        1/15/40        BBB        2,568,062  
  2,395    

Enstar Finance LLC

    5.750%        9/01/40        BB+        2,478,754  
  5,720    

Enstar Finance LLC

    5.500%        1/15/42        BB+        5,640,608  
  1,485    

Legal & General Group PLC, Reg S

    5.250%        3/21/47        A3        1,579,298  
  5,075    

Markel Corp

    6.000%        N/A (4)        BBB-        5,417,563  
  11,660    

MetLife Capital Trust IV, 144A, (3)

    7.875%        12/15/37        BBB        15,536,950  
  8,088    

MetLife Inc, 144A, (6)

    9.250%        4/08/38        BBB        11,952,431  
  2,275    

MetLife Inc

    3.850%        N/A (4)        BBB        2,292,063  
  1,430    

MetLife Inc

    5.875%        N/A (4)        BBB        1,577,639  
  575    

Nationwide Financial Services Capital Trust

    7.899%        3/01/37        Baa2        718,797  
  9,550    

Nationwide Financial Services Inc, (3), (6)

    6.750%        5/15/37        Baa2        11,245,125  
  2,485    

PartnerRe Finance B LLC, (6)

    4.500%        10/01/50        Baa1        2,546,280  
  5,065    

Provident Financing Trust I

    7.405%        3/15/38        BB+        6,191,962  
  745    

Prudential Financial Inc, (6)

    3.700%        10/01/50        BBB+        729,301  
  9,055    

QBE Insurance Group Ltd, 144A

    7.500%        11/24/43        Baa1        9,802,037  
  1,215    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        1,319,842  
  2,960    

QBE Insurance Group Ltd, 144A, (3)

    5.875%        N/A (4)        Baa2        3,130,200  
  9,700    

SBL Holdings Inc, 144A

    6.500%        N/A (4)        BB        9,215,000  
  10,685    

SBL Holdings Inc, 144A

    7.000%        N/A (4)        BB        10,524,725  
 

Total Insurance

                               131,280,063  
      Multi-Utilities – 2.5%                           
  2,125    

Algonquin Power & Utilities Corp

    4.750%        1/18/82        BB+        2,099,556  
  6,420    

CenterPoint Energy Inc

    6.125%        N/A (4)        BBB-        6,565,156  
  850    

CMS Energy Corp, (6)

    4.750%        6/01/50        BBB-        898,620  
  3,400    

Dominion Energy Inc

    4.350%        N/A (4)        BBB-        3,425,500  
  1,320    

NiSource Inc

    5.650%        N/A (4)        BBB-        1,343,100  
  3,005    

Sempra Energy

    4.125%        4/01/52        BBB-        2,925,679  
  7,280    

Sempra Energy

    4.875%        N/A (4)        BBB-        7,614,516  
 

Total Multi-Utilities

                               24,872,127  
      Oil, Gas & Consumable Fuels – 1.8%                           
  1,540    

Enbridge Inc, (3)

    6.000%        1/15/77        BBB-        1,634,147  
  800    

Enbridge Inc

    5.500%        7/15/77        BBB-        816,138  
  3,765    

Enbridge Inc

    5.750%        7/15/80        BBB-        4,122,675  
  1,705    

Energy Transfer LP

    6.500%        N/A (4)        BB        1,743,891  
  1,735    

MPLX LP

    6.875%        N/A (4)        BB+        1,726,325  
  6,450    

Transcanada Trust, (3)

    5.875%        8/15/76        BBB        6,888,600  
  1,400    

Transcanada Trust

    5.500%        9/15/79        BBB        1,470,000  
 

Total Oil, Gas & Consumable Fuels

                               18,401,776  
      Trading Companies & Distributors – 2.2%                           
  7,560    

AerCap Global Aviation Trust, 144A

    6.500%        6/15/45        BB+        8,092,753  
  3,205    

AerCap Holdings NV

    5.875%        10/10/79        BB+        3,251,472  
  2,180    

Air Lease Corp, (3)

    4.650%        N/A (4)        BB+        2,196,830  
  1,960    

ILFC E-Capital Trust I, 144A

    3.370%        12/21/65        B+        1,631,700  

 

25


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Trading Companies & Distributors (continued)                           
$ 8,474    

ILFC E-Capital Trust I, 144A

    3.620%        12/21/65        BB+      $ 7,351,195  
 

Total Trading Companies & Distributors

                               22,523,950  
      U.S. Agency – 0.6%                           
  5,835    

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

    6.200%        N/A (4)        BBB+        6,258,038  
      Wireless Telecommunication Services – 0.4%  
  3,285    

Vodafone Group PLC

    7.000%        4/04/79        BB+        3,775,638  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $766,961,950)

 

              804,871,616  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 34.2% (21.4% of Total Investments)

 

     
      Banks – 9.1%                           
  63,000    

Bank of America Corp

    4.375%           BBB+      $ 1,489,320  
  389,931    

Citigroup Inc, (5)

    7.125%           BBB-        10,457,949  
  127,675    

CoBank ACB, (8)

    6.250%           BBB+        13,252,665  
  93,724    

CoBank ACB, (8)

    6.200%           BBB+        10,098,761  
  165,500    

Farm Credit Bank of Texas, 144A, (3), (8)

    6.750%           Baa1        17,046,500  
  236,981    

Fifth Third Bancorp, (3)

    6.625%           Baa3        6,495,650  
  178,757    

FNB Corp/PA, (3)

    7.250%           Ba1        4,853,253  
  138,275    

KeyCorp

    6.125%           Baa3        3,975,406  
  72,962    

People’s United Financial Inc

    5.625%           BB+        2,000,618  
  247,561    

Regions Financial Corp, (3)

    6.375%           BB+        6,941,610  
  61,900    

Regions Financial Corp

    5.700%           BB+        1,648,397  
  91,115    

Synovus Financial Corp

    5.875%           BB-        2,434,593  
  66,100    

Truist Financial Corp

    4.750%           Baa2        1,680,262  
  68,200    

Wells Fargo & Co

    4.750%           Baa2        1,694,088  
  187,400    

Western Alliance Bancorp, (3)

    4.250%           Ba1        4,726,228  
  91,847    

Wintrust Financial Corp

    6.875%                 BB        2,546,917  
 

Total Banks

                               91,342,217  
      Capital Markets – 4.5%  
  79,169    

Charles Schwab Corp/The

    5.950%           BBB        2,036,227  
  33,793    

Goldman Sachs Group Inc/The

    5.500%           BB+        884,363  
  741,766    

Morgan Stanley, (3), (5)

    7.125%           Baa3        20,087,023  
  110,293    

Morgan Stanley

    6.875%           Baa3        2,991,146  
  209,211    

Morgan Stanley

    5.850%           Baa3        5,774,224  
  100,352    

Morgan Stanley

    6.375%           Baa3        2,735,595  
  276,907    

Stifel Financial Corp, (3)

    6.250%           BB-        7,205,120  
  130,906    

Stifel Financial Corp, (3)

    6.125%                 BB-        3,385,229  
 

Total Capital Markets

                               45,098,927  
      Consumer Finance – 0.7%  
  84,573    

Capital One Financial Corp, (3)

    5.000%           Baa3        2,120,245  
  204,314    

Synchrony Financial, (3)

    5.625%                 BB-        5,310,121  
 

Total Consumer Finance

                               7,430,366  
      Diversified Financial Services – 1.7%  
  74,600    

AgriBank FCB, (8)

    6.875%           BBB+        7,944,900  
  114,400    

Equitable Holdings Inc

    5.250%           BBB-        2,932,072  
  204,839    

Voya Financial Inc

    5.350%                 BBB-        5,868,637  
 

Total Diversified Financial Services

                               16,745,609  
      Diversified Telecommunication Services – 0.8%  
  52,800    

AT&T Inc, (3)

    4.750%           BBB-        1,297,296  
  259,100    

Qwest Corp

    6.750%                 BBB-        6,573,367  
 

Total Diversified Telecommunication Services

                               7,870,663  

 

26


  
  
  

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Electric Utilities – 0.3%  
  100,000    

Duke Energy Corp, (3)

    5.750%                 BBB-      $ 2,673,000  
      Equity Real Estate Investment Trust – 1.2%  
  142,800    

Pebblebrook Hotel Trust

    6.375%           N/R        3,571,428  
  132,500    

Pebblebrook Hotel Trust

    5.700%           N/R        3,113,750  
  66,300    

Summit Hotel Properties Inc

    5.875%           N/R        1,630,980  
  138,800    

Sunstone Hotel Investors Inc

    6.125%                 N/R        3,472,776  
 

Total Equity Real Estate Investment Trust

                               11,788,934  
      Food Products – 3.7%  
  295,811    

CHS Inc, (3)

    7.875%           N/R        8,134,803  
  487,106    

CHS Inc

    7.100%           N/R        13,322,349  
  468,864    

CHS Inc

    6.750%           N/R        12,771,855  
  23,900    

Dairy Farmers of America Inc, 144A, (5), (8), (9)

    7.875%                 BB+        2,413,900  
 

Total Food Products

                               36,642,907  
      Insurance – 8.4%  
  274,600    

American Equity Investment Life Holding Co

    5.950%           BB        7,359,280  
  137,600    

American Equity Investment Life Holding Co

    6.625%           BB        3,784,000  
  302,283    

Argo Group US Inc, (3)

    6.500%           BBB-        7,756,582  
  249,028    

Aspen Insurance Holdings Ltd

    5.950%           BB+        6,721,266  
  66,100    

Aspen Insurance Holdings Ltd

    5.625%           BB+        1,693,482  
  48,200    

Assurant Inc

    5.250%           BB+        1,226,208  
  411,533    

Athene Holding Ltd, (3)

    6.350%           BBB        11,444,733  
  370,852    

Athene Holding Ltd

    6.375%           BBB        10,061,215  
  63,400    

Delphi Financial Group Inc, (8), (9)

    3.346%           BBB        1,378,950  
  459,098    

Enstar Group Ltd, (3)

    7.000%           BB+        12,840,971  
  255,780    

Hartford Financial Services Group Inc/The, (3)

    7.875%           Baa2        6,514,716  
  219,645    

Maiden Holdings North America Ltd

    7.750%           N/R        4,821,010  
  113,445    

Reinsurance Group of America Inc, (3)

    6.200%           BBB+        2,932,553  
  157,800    

Reinsurance Group of America Inc

    5.750%           BBB+        4,541,484  
  46,100    

Selective Insurance Group Inc

    4.600%                 BBB-        1,101,790  
 

Total Insurance

                               84,178,240  
      Multi-Utilities – 0.7%  
  271,210    

Algonquin Power & Utilities Corp

    6.200%                 BB+        7,252,156  
      Oil, Gas & Consumable Fuels – 1.2%  
  35,700    

Energy Transfer LP

    7.600%           BB        888,930  
  167,226    

NuStar Energy LP

    6.969%           B2        4,115,432  
  148,751    

NuStar Energy LP

    7.625%           B2        3,269,547  
  127,137    

NuStar Logistics LP

    6.975%                 B        3,205,124  
 

Total Oil, Gas & Consumable Fuels

                               11,479,033  
      Thrifts & Mortgage Finance – 1.1%  
  75,580    

Federal Agricultural Mortgage Corp

    6.000%           N/R        2,023,276  
  337,570    

New York Community Bancorp Inc, (3)

    6.375%                 Ba2        9,354,065  
 

Total Thrifts & Mortgage Finance

                               11,377,341  
      Trading Companies & Distributors – 0.3%  
  124,215    

Air Lease Corp

    6.150%                 BB+        3,259,402  
      Wireless Telecommunication Services – 0.5%                           
  177,000    

United States Cellular Corp

    6.250%                 BB+        4,543,590  
 

Total $25 Par (or similar) Retail Preferred (cost $330,762,660)

                               341,682,385  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 30.7% (19.3% of Total Investments) (10)

 

     
      Banks – 23.3%  
$ 2,025    

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

    6.750%        N/A (4)        Baa2      $ 2,257,875  

 

27


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks – 23.3% (continued)  
$ 3,805    

Banco Bilbao Vizcaya Argentaria SA, (3)

    6.125%        N/A (4)        Ba2      $ 3,904,881  
  5,975    

Banco Bilbao Vizcaya Argentaria SA

    6.500%        N/A (4)        Ba2        6,206,531  
  1,400    

Banco Mercantil del Norte SA/Grand Cayman, 144A

    7.500%        N/A (4)        Ba2        1,424,500  
  3,120    

Banco Mercantil del Norte SA/Grand Cayman, 144A, (3)

    7.625%        N/A (4)        Ba2        3,186,830  
  5,600    

Banco Santander SA, Reg S, (3)

    7.500%        N/A (4)        Ba1        5,949,104  
  4,905    

Banco Santander SA

    4.750%        N/A (4)        Ba1        4,713,705  
  9,910    

Barclays PLC

    8.000%        N/A (4)        BBB-        10,799,125  
  8,865    

Barclays PLC

    7.750%        N/A (4)        BBB-        9,419,063  
  6,440    

Barclays PLC

    6.125%        N/A (4)        BBB-        6,848,618  
  1,600    

Barclays PLC

    4.375%        N/A (4)        BBB-        1,510,560  
  1,000    

BNP Paribas SA, 144A

    7.000%        N/A (4)        BBB        1,132,500  
  10,495    

BNP Paribas SA, 144A, (5)

    7.375%        N/A (4)        BBB        11,736,558  
  8,145    

BNP Paribas SA, 144A

    6.625%        N/A (4)        BBB        8,590,532  
  2,165    

Credit Agricole SA, 144A

    4.750%        N/A (4)        BBB        2,124,406  
  5,985    

Credit Agricole SA, 144A

    7.875%        N/A (4)        BBB        6,486,244  
  7,445    

Credit Agricole SA, 144A

    8.125%        N/A (4)        BBB        8,612,004  
  5,100    

Credit Suisse Group AG, 144A

    5.250%        N/A (4)        BB+        5,085,720  
  1,815    

Danske Bank A/S, Reg S

    6.125%        N/A (4)        BBB-        1,878,561  
  1,840    

Danske Bank A/S, Reg S

    4.375%        N/A (4)        BBB-        1,775,600  
  1,600    

Danske Bank A/S, Reg S, (3)

    7.000%        N/A (4)        BBB-        1,716,992  
  4,010    

HSBC Holdings PLC, (3)

    6.375%        N/A (4)        BBB        4,210,500  
  15,344    

HSBC Holdings PLC, (5)

    6.375%        N/A (4)        BBB        16,221,984  
  11,850    

HSBC Holdings PLC, (3)

    6.000%        N/A (4)        BBB        12,509,215  
  6,130    

ING Groep NV, Reg S

    6.750%        N/A (4)        BBB        6,520,788  
  3,210    

ING Groep NV

    6.500%        N/A (4)        BBB        3,434,700  
  5,280    

ING Groep NV

    5.750%        N/A (4)        BBB        5,550,600  
  7,590    

Intesa Sanpaolo SpA, 144A, (3)

    7.700%        N/A (4)        BB-        8,330,025  
  11,565    

Lloyds Banking Group PLC, (3)

    7.500%        N/A (4)        Baa3        12,550,107  
  6,995    

Lloyds Banking Group PLC

    7.500%        N/A (4)        Baa3        7,759,728  
  3,350    

Macquarie Bank Ltd/London, 144A

    6.125%        N/A (4)        BB+        3,504,938  
  6,385    

NatWest Group PLC

    8.000%        N/A (4)        BBB-        7,191,106  
  5,405    

NatWest Group PLC, (3)

    6.000%        N/A (4)        BBB-        5,692,006  
  3,985    

Nordea Bank Abp, 144A

    6.625%        N/A (4)        BBB+        4,420,879  
  1,975    

Societe Generale SA, 144A

    8.000%        N/A (4)        BB        2,230,387  
  6,536    

Societe Generale SA, 144A

    7.875%        N/A (4)        BB+        7,000,710  
  2,066    

Societe Generale SA, 144A, (3)

    6.750%        N/A (4)        BB        2,200,290  
  2,820    

Societe Generale SA, 144A

    4.750%        N/A (4)        BB+        2,785,906  
  4,845    

Standard Chartered PLC, 144A

    4.300%        N/A (4)        BBB-        4,530,075  
  2,010    

Standard Chartered PLC, 144A

    7.750%        N/A (4)        BBB-        2,115,364  
  3,120    

Standard Chartered PLC, 144A

    6.000%        N/A (4)        BBB-        3,260,400  
  5,060    

UniCredit SpA, Reg S

    8.000%        N/A (4)        BB-        5,477,450  
  218,766    

Total Banks

                               232,857,067  
      Capital Markets – 7.4%  
  2,090    

Credit Suisse Group AG, 144A

    6.375%        N/A (4)        BB+        2,181,438  
  10,229    

Credit Suisse Group AG, 144A, (3)

    7.250%        N/A (4)        BB+        10,932,244  
  3,925    

Credit Suisse Group AG, 144A

    7.500%        N/A (4)        BB+        4,183,030  
  8,750    

Credit Suisse Group AG, 144A

    7.500%        N/A (4)        BB+        9,105,600  
  14,020    

Deutsche Bank AG, (3)

    6.000%        N/A (4)        BB-        14,125,150  
  10,095    

UBS Group AG, Reg S, (3)

    7.000%        N/A (4)        BBB        10,970,741  
  1,640    

UBS Group AG, Reg S

    5.125%        N/A (4)        BBB        1,693,457  
  7,950    

UBS Group AG, 144A, (3)

    7.000%        N/A (4)        BBB        8,402,196  
  6,455    

UBS Group AG, Reg S, (3)

    6.875%        N/A (4)        BBB        7,011,382  
  1,715    

UBS Group AG, 144A

    4.875%        N/A (4)        BBB        1,712,599  
  4,590    

UBS Group AG, 144A

    3.875%        N/A (4)        BBB        4,407,547  
  71,459    

Total Capital Markets

                               74,725,384  
$ 290,225    

Total Contingent Capital Securities (cost $296,032,532)

                               307,582,451  

 

28


  
  
  

 

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

CORPORATE BONDS – 8.3% (5.2% of Total Investments)

 

      Banks – 0.1%  
$ 1,180    

Commerzbank AG, 144A

    8.125%        9/19/23        Baa3      $ 1,281,752  
      Containers & Packaging – 0.4%  
  3,444    

Sealed Air Corp, 144A, (3)

    6.875%        7/15/33        BB+        4,115,580  
      Entertainment – 1.2%  
  11,350    

Liberty Interactive LLC, (3)

    8.500%        7/15/29        BB        11,787,883  
      Food & Staples Retailing – 0.8%  
  7,675    

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

    7.500%        3/15/26        BB        8,147,012  
      Health Care Providers & Services – 0.3%  
  3,350    

MEDNAX Inc, 144A

    6.250%        1/15/27        B+        3,500,181  
      Insurance – 1.2%  
  2,575    

Fidelis Insurance Holdings Ltd, 144A

    6.625%        4/01/41        BB+        2,697,312  
  7,117    

Liberty Mutual Group Inc, 144A, (3)

    7.800%        3/15/37        Baa3        9,679,120  
  9,692    

Total Insurance

                               12,376,432  
      Interactive Media & Services – 0.7%  
  6,605    

TripAdvisor Inc, 144A, (3)

    7.000%        7/15/25        BB-        6,918,738  
      Media – 1.3%  
  6,275    

DISH DBS Corp, (3)

    7.375%        7/01/28        B-        6,063,846  
  4,725    

ViacomCBS Inc, (3), (6)

    6.875%        4/30/36        BBB        6,486,373  
  11,000    

Total Media

                               12,550,219  
      Oil, Gas & Consumable Fuels – 0.7%  
  6,510    

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

    6.500%        1/15/26        BB-        6,725,676  
      Semiconductors & Semiconductor Equipment – 0.7%  
  6,358    

Amkor Technology Inc, 144A, (3)

    6.625%        9/15/27        BB        6,683,848  
      Specialty Retail – 0.6%  
  5,600    

Bath & Body Works Inc

    6.875%        11/01/35        BB        6,440,000  
      Technology Hardware, Storage & Peripherals – 0.3%  
  2,500    

Dell International LLC / EMC Corp

    6.200%        7/15/30        BBB        3,036,200  
$ 75,264    

Total Corporate Bonds (cost $79,400,600)

                               83,563,521  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

CONVERTIBLE PREFERRED SECURITIES – 4.1% (2.5% of Total Investments)

 

      Banks – 0.9%  
  6,400    

Wells Fargo & Co, (3)

    7.500%                 Baa2      $ 9,114,304  
      Electric Utilities – 1.0%  
  159,500    

NextEra Energy Inc

    6.219%           BBB        8,196,705  
  24,600    

Southern Co/The

    6.750%                 BBB-        1,311,180  
 

Total Electric Utilities

                               9,507,885  
      Multi-Utilities – 0.7%  
  72,900    

Dominion Energy Inc

    7.250%                 BBB-        7,437,258  
      Semiconductors & Semiconductor Equipment – 1.5%  
  8,050    

Broadcom Inc

    8.000%                 N/R        14,744,541  
 

Total Convertible Preferred Securities (cost $34,059,116)

                               40,803,988  

 

29


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Shares     Description (1)                           Value  
 

COMMON STOCKS – 0.4% (0.2% of Total Investments)

          
      Multi-Utilities – 0.4% (0.2% of Total Investments)  
  26,568    

Sempra Energy

                             $ 3,670,635  
 

Total Common Stocks (cost $3,534,924)

                               3,670,635  
 

Total Long-Term Investments (cost $1,510,751,782)

                               1,582,174,596  
Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
 

SHORT-TERM INVESTMENTS – 1.5% (1.0% of Total Investments)

          
      REPURCHASE AGREEMENTS – 1.5% (1.0% of Total Investments)                           
$ 15,251    

Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/22, repurchase price $15,251,018, collateralized by $16,117,400, U.S. Treasury Bond, 1.875%, due 2/15/41, value $15,556,083

    0.000%        2/01/22               $ 15,251,018  
 

Total Short-Term Investments (cost $15,251,018)

                               15,251,018  
 

Total Investments (cost $1,526,002,800) – 159.7%

 

              1,597,425,614  
 

Borrowings – (47.3)% (11), (12)

 

              (473,400,000
 

Reverse Repurchase Agreements, including accrued interest – (12.5)% (13)

 

              (124,670,820
 

Other Assets Less Liabilities – 0.1% (14)

 

              979,602  
 

Net Assets Applicable to Common Shares – 100%

 

            $ 1,000,334,396  

 

 

30


  
  
  

 

Investments in Derivatives

Futures Contracts – Short

 

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

U.S. Treasury 10-Year Note

     (310      3/22      $ (40,142,026    $ (39,670,313    $ 471,713      $ (4,844

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

  $ 277,500,000       Receive       1-Month LIBOR       1.994     Monthly       6/01/18       7/01/25       7/01/27     $ (9,109,368   $ (9,109,368

Morgan Stanley Capital Services, LLC

    48,000,000       Receive       1-Month LIBOR       2.364       Monthly       7/01/19       7/01/26       7/01/28       (2,670,428     (2,670,428

Total

  $ 325,500,000                                                             $ (11,779,796   $ (11,779,796

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 $130,133,031 have been pledged as collateral for reverse repurchase agreements.

 

(4)

Perpetual security. Maturity date is not applicable.

 

(5)

Investment, or portion of investment, is hypothecated. The total value of investments hypothecated as of the end of the reporting period was $129,386,542.

 

(6)

Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives.

 

(7)

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

 

(8)

For fair value measurement disclosure purposes, investment classified as Level 2.

 

(9)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

 

(10)

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.

 

(11)

Borrowings as a percentage of Total Investments is 29.6%.

 

(12)

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 $940,232,132 have been pledged as collateral for borrowings.

 

(13)

Reverse Repurchase Agreements, including accrued interest as a percentage of Total Investments is 7.8%.

 

(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.

 

LIBOR

London Inter-Bank Offered Rate

 

N/A

Not Applicable

 

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.

 

31


JPI   

Nuveen Preferred and Income
Term Fund

 

Portfolio of Investments    January 31, 2022

     (Unaudited)

 

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

LONG-TERM INVESTMENTS – 153.5% (99.9% of Total Investments)

 

     
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 72.7% (47.3% of Total Investments)

 

      Automobiles – 2.4%                           
$ 3,610    

General Motors Financial Co Inc.

    5.700%        N/A (3)        BB+      $ 4,056,918  
  8,463    

General Motors Financial Co Inc, (4)

    5.750%        N/A (3)        BB+        8,931,004  
 

Total Automobiles

                               12,987,922  
      Banks – 25.7%  
  3,430    

Bank of America Corp

    4.375%        N/A (3)        BBB+        3,387,468  
  3,290    

Bank of America Corp

    6.250%        N/A (3)        BBB+        3,487,400  
  3,620    

Bank of America Corp

    6.500%        N/A (3)        BBB+        3,895,844  
  3,815    

Bank of America Corp

    6.300%        N/A (3)        BBB+        4,177,425  
  1,330    

Bank of America Corp

    6.100%        N/A (3)        BBB+        1,433,620  
  1,695    

Citigroup Inc

    4.150%        N/A (3)        BBB-        1,653,845  
  2,870    

Citigroup Inc, (5)

    6.250%        N/A (3)        BBB-        3,171,350  
  5,850    

Citigroup Inc, (4)

    5.000%        N/A (3)        BBB-        5,915,169  
  9,343    

Citigroup Inc, (4)

    5.950%        N/A (3)        BBB-        9,856,865  
  6,565    

Citigroup Inc, (4)

    6.300%        N/A (3)        BBB-        6,750,790  
  2,075    

Citizens Financial Group Inc

    4.000%        N/A (3)        BB+        2,036,094  
  1,580    

Citizens Financial Group Inc

    6.375%        N/A (3)        BB+        1,619,500  
  2,270    

Farm Credit Bank of Texas, 144A

    5.700%        N/A (3)        Baa1        2,411,875  
  1,815    

Fifth Third Bancorp

    4.500%        N/A (3)        Baa3        1,869,450  
  2,670    

First Citizens BancShares Inc/NC

    5.800%        N/A (3)        N/R        2,770,125  
  850    

Goldman Sachs Group Inc/The

    4.400%        N/A (3)        BB+        830,875  
  860    

Goldman Sachs Group Inc/The

    3.800%        N/A (3)        BBB-        827,139  
  2,121    

HSBC Capital Funding Dollar 1 LP, 144A

    10.176%        N/A (3)        BBB        3,436,020  
  5,140    

Huntington Bancshares Inc/OH

    5.625%        N/A (3)        Baa3        5,770,781  
  2,370    

JPMorgan Chase & Co

    6.100%        N/A (3)        BBB+        2,515,163  
  10,092    

JPMorgan Chase & Co

    6.750%        N/A (3)        BBB+        10,805,504  
  4,340    

JPMorgan Chase & Co

    3.650%        N/A (3)        BBB+        4,172,346  
  6,800    

JPMorgan Chase & Co, (5)

    5.000%        N/A (3)        BBB+        6,919,000  
  2,430    

KeyCorp

    5.000%        N/A (3)        Baa3        2,557,575  
  705    

Lloyds Bank PLC, 144A

    12.000%        N/A (3)        Baa3        705,000  
  1,340    

M&T Bank Corp

    3.500%        N/A (3)        Baa2        1,259,747  
  1,765    

M&T Bank Corp

    5.125%        N/A (3)        Baa2        1,875,639  
  1,570    

M&T Bank Corp

    6.450%        N/A (3)        Baa2        1,649,992  
  1,907    

PNC Financial Services Group Inc/The

    5.000%        N/A (3)        Baa2        1,983,280  
  1,595    

PNC Financial Services Group Inc/The

    3.400%        N/A (3)        Baa2        1,503,272  
  799    

PNC Financial Services Group Inc/The, (3-Month LIBOR reference rate + 3.678% spread), (6)

    3.804%        N/A (3)        Baa2        804,597  
  1,745    

Regions Financial Corp, (4)

    5.750%        N/A (3)        BB+        1,876,032  
  730    

SVB Financial Group

    4.700%        N/A (3)        Baa2        724,671  
  830    

SVB Financial Group

    4.100%        N/A (3)        Baa2        783,703  
  1,320    

SVB Financial Group

    4.000%        N/A (3)        Baa2        1,283,000  
  9,280    

Truist Financial Corp, (5)

    4.800%        N/A (3)        Baa2        9,465,600  
  2,520    

Truist Financial Corp

    5.100%        N/A (3)        Baa2        2,734,200  
  1,805    

Truist Financial Corp, (5)

    5.050%        N/A (3)        Baa2        1,786,950  
  1,230    

Wells Fargo & Co, (5)

    7.950%        11/15/29        Baa1        1,641,322  
  7,240    

Wells Fargo & Co, (4)

    3.900%        N/A (3)        Baa2        7,170,858  
  5,803    

Wells Fargo & Co

    5.875%        N/A (3)        Baa2        6,203,697  
  3,256    

Wells Fargo & Co

    5.900%        N/A (3)        Baa2        3,337,400  
  1,415    

Zions Bancorp NA, (5)

    7.200%        N/A (3)        BB+        1,497,296  
  1,050    

Zions Bancorp NA

    5.800%        N/A (3)        BB+        1,070,534  
 

Total Banks

                               141,628,013  

 

32


  
  
  

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Capital Markets – 3.5%  
$ 1,895    

Bank of New York Mellon Corp/The

    4.700%        N/A (3)        Baa1      $ 1,996,856  
  1,950    

Charles Schwab Corp/The

    4.000%        N/A (3)        BBB        1,926,463  
  4,215    

Charles Schwab Corp/The

    5.375%        N/A (3)        BBB        4,526,910  
  4,595    

Goldman Sachs Group Inc/The

    5.500%        N/A (3)        BBB-        4,819,466  
  1,450    

Goldman Sachs Group Inc/The

    4.125%        N/A (3)        BBB-        1,415,563  
  4,127    

Goldman Sachs Group Inc/The, (5)

    5.300%        N/A (3)        BBB-        4,426,207  
 

Total Capital Markets

                               19,111,465  
      Communications Equipment – 0.3%  
  1,920    

Vodafone Group PLC

    4.125%        6/04/81        BB+        1,828,838  
      Consumer Finance – 2.5%  
  3,690    

Ally Financial Inc

    4.700%        N/A (3)        Ba2        3,648,118  
  2,570    

Ally Financial Inc

    4.700%        N/A (3)        Ba2        2,544,300  
  3,110    

American Express Co

    3.550%        N/A (3)        Baa2        2,977,825  
  3,005    

Capital One Financial Corp

    3.950%        N/A (3)        Baa3        2,937,388  
  1,820    

Discover Financial Services

    6.125%        N/A (3)        Ba2        1,963,889  
 

Total Consumer Finance

                               14,071,520  
      Diversified Financial Services – 4.5%  
  2,010    

American AgCredit Corp, 144A

    5.250%        N/A (3)        BB+        2,050,200  
  2,425    

Capital Farm Credit ACA, 144A

    5.000%        N/A (3)        BB        2,485,625  
  12,000    

Compeer Financial ACA, 144A, (8)

    6.750%        N/A (3)        BB+        12,272,000  
  1,050    

Compeer Financial ACA, 144A

    4.875%        N/A (3)        BB+        1,065,750  
  3,430    

Equitable Holdings Inc

    4.950%        N/A (3)        BBB-        3,524,325  
  3,171    

Voya Financial Inc, (5)

    6.125%        N/A (3)        BBB-        3,281,985  
 

Total Diversified Financial Services

                               24,679,885  
      Electric Utilities – 2.8%  
  1,920    

American Electric Power Co Inc

    3.875%        2/15/62        BBB-        1,883,410  
  1,935    

Edison International

    5.000%        N/A (3)        BB+        1,927,608  
  1,120    

Edison International

    5.375%        N/A (3)        BB+        1,136,100  
  1,460    

Electricite de France SA, 144A

    5.250%        N/A (3)        Baa3        1,483,725  
  6,300    

Emera Inc, (5)

    6.750%        6/15/76        BB+        7,103,250  
  2,025    

Southern Co/The

    4.000%        1/15/51        BBB-        2,040,208  
 

Total Electric Utilities

                               15,574,301  
      Food Products – 4.7%  
  2,250    

Dairy Farmers of America Inc, 144A

    7.125%        N/A (3)        BB+        2,345,625  
  2,240    

Land O’ Lakes Inc, 144A

    7.250%        N/A (3)        BB        2,413,600  
  12,550    

Land O’ Lakes Inc, 144A, (4)

    8.000%        N/A (3)        BB        13,475,563  
  7,223    

Land O’ Lakes Inc, 144A, (4)

    7.000%        N/A (3)        BB        7,656,380  
 

Total Food Products

                               25,891,168  
      Independent Power & Renewable Electricity Producers – 0.9%  
  1,240    

AES Andes SA, 144A

    7.125%        3/26/79        BB        1,267,962  
  2,550    

AES Andes SA, 144A, (5)

    6.350%        10/07/79        BB        2,593,847  
  1,180    

Vistra Corp, 144A

    7.000%        N/A (3)        Ba3        1,174,100  
 

Total Independent Power & Renewable Electricity Producers

                               5,035,909  
      Industrial Conglomerates – 1.5%  
  8,392    

General Electric Co, (3-Month LIBOR reference rate + 3.330%
spread), (4), (6)

    3.533%        N/A (3)        BBB-        8,203,180  
      Insurance – 14.5%  
  1,505    

Aegon NV

    5.500%        4/11/48        BBB        1,692,561  
  1,447    

American International Group Inc, (9)

    5.750%        4/01/48        BBB-        1,578,055  
  8,815    

Assurant Inc, (5)

    7.000%        3/27/48        BB+        9,982,987  
  10,595    

Assured Guaranty Municipal Holdings Inc, 144A, (4), (9)

    6.400%        12/15/66        BBB+        11,636,270  
  2,320    

AXIS Specialty Finance LLC, (5)

    4.900%        1/15/40        BBB        2,417,000  
  1,540    

Enstar Finance LLC, (5)

    5.750%        9/01/40        BB+        1,593,854  

 

33


JPI    Nuveen Preferred and Income Term Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Insurance (continued)  
$ 1,505    

Enstar Finance LLC

    5.500%        1/15/42        BB+      $ 1,484,111  
  1,375    

Legal & General Group PLC, Reg S

    5.250%        3/21/47        A3        1,462,313  
  4,755    

Markel Corp

    6.000%        N/A (3)        BBB-        5,075,962  
  3,440    

MetLife Inc, 144A, (9)

    9.250%        4/08/38        BBB        5,083,625  
  2,115    

MetLife Inc

    3.850%        N/A (3)        BBB        2,130,863  
  1,270    

MetLife Inc, (5)

    5.875%        N/A (3)        BBB        1,401,120  
  2,335    

PartnerRe Finance B LLC, (5), (9)

    4.500%        10/01/50        Baa1        2,392,581  
  4,734    

Provident Financing Trust I, (5)

    7.405%        3/15/38        BB+        5,787,315  
  700    

Prudential Financial Inc

    3.700%        10/01/50        BBB+        685,250  
  8,495    

QBE Insurance Group Ltd, 144A, (4)

    7.500%        11/24/43        Baa1        9,195,837  
  1,135    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        1,232,939  
  2,770    

QBE Insurance Group Ltd, 144A

    5.875%        N/A (3)        Baa2        2,929,275  
  2,600    

SBL Holdings Inc, 144A

    6.500%        N/A (3)        BB        2,470,000  
  10,005    

SBL Holdings Inc, 144A, (4)

    7.000%        N/A (3)        BB        9,854,925  
 

Total Insurance

                               80,086,843  
      Multi-Utilities – 2.8%  
  1,975    

Algonquin Power & Utilities Corp

    4.750%        1/18/82        BB+        1,951,352  
  6,005    

CenterPoint Energy Inc

    6.125%        N/A (3)        BBB-        6,140,773  
  795    

CMS Energy Corp, (9)

    4.750%        6/01/50        BBB-        840,474  
  1,215    

NiSource Inc

    5.650%        N/A (3)        BBB-        1,236,262  
  2,785    

Sempra Energy

    4.125%        4/01/52        BBB-        2,711,486  
  2,365    

Sempra Energy

    4.875%        N/A (3)        BBB-        2,473,672  
 

Total Multi-Utilities

                               15,354,019  
      Oil, Gas & Consumable Fuels – 1.9%  
  1,440    

Enbridge Inc

    6.000%        1/15/77        BBB-        1,528,034  
  745    

Enbridge Inc

    5.500%        7/15/77        BBB-        760,028  
  3,520    

Enbridge Inc, (5)

    5.750%        7/15/80        BBB-        3,854,400  
  1,590    

Energy Transfer LP

    6.500%        N/A (3)        BB        1,626,268  
  1,620    

MPLX LP, (5)

    6.875%        N/A (3)        BB+        1,611,900  
  1,320    

Transcanada Trust

    5.500%        9/15/79        BBB        1,386,000  
 

Total Oil, Gas & Consumable Fuels

                               10,766,630  
      Trading Companies & Distributors – 3.8%  
  7,045    

AerCap Global Aviation Trust, 144A, (5)

    6.500%        6/15/45        BB+        7,541,461  
  2,915    

AerCap Holdings NV

    5.875%        10/10/79        BB+        2,957,268  
  2,045    

Air Lease Corp

    4.650%        N/A (3)        BB+        2,060,787  
  1,855    

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

    3.370%        12/21/65        B+        1,544,288  
  7,902    

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

    3.620%        12/21/65        BB+        6,854,985  
 

Total Trading Companies & Distributors

                               20,958,789  
      U.S. Agency – 0.2%  
  1,180    

Farm Credit Bank of Texas, 144A

    6.200%        N/A (3)        BBB+        1,265,550  
      Wireless Telecommunication Services – 0.7%                           
  3,180    

Vodafone Group PLC

    7.000%        4/04/79        BB+        3,654,956  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $378,284,310)

                               401,098,988  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 51.9% (33.8% of Total Investments) (10)

 

     
      Banks – 39.3%  
$ 1,970    

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

    6.750%        N/A (3)        Baa2      $ 2,196,550  
  3,570    

Banco Bilbao Vizcaya Argentaria SA, (5)

    6.125%        N/A (3)        Ba2        3,663,713  
  5,600    

Banco Bilbao Vizcaya Argentaria SA

    6.500%        N/A (3)        Ba2        5,817,000  
  1,300    

Banco Mercantil del Norte SA/Grand Cayman, 144A

    7.500%        N/A (3)        Ba2        1,322,750  
  2,930    

Banco Mercantil del Norte SA/Grand Cayman, 144A, (5)

    7.625%        N/A (3)        Ba2        2,992,761  
  5,200    

Banco Santander SA, Reg S

    7.500%        N/A (3)        Ba1        5,524,168  
  4,660    

Banco Santander SA

    4.750%        N/A (3)        Ba1        4,478,260  

 

34


  
  
  

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks – 39.3% (continued)  
$ 9,270    

Barclays PLC, (5)

    8.000%        N/A (3)        BBB-      $ 10,101,704  
  8,050    

Barclays PLC, (5)

    7.750%        N/A (3)        BBB-        8,553,125  
  6,095    

Barclays PLC

    6.125%        N/A (3)        BBB-        6,481,728  
  1,500    

Barclays PLC

    4.375%        N/A (3)        BBB-        1,416,150  
  950    

BNP Paribas SA, 144A

    7.000%        N/A (3)        BBB        1,075,875  
  9,790    

BNP Paribas SA, 144A, (4)

    7.375%        N/A (3)        BBB        10,948,157  
  7,610    

BNP Paribas SA, 144A

    6.625%        N/A (3)        BBB        8,026,267  
  2,015    

Credit Agricole SA, 144A

    4.750%        N/A (3)        BBB        1,977,219  
  5,415    

Credit Agricole SA, 144A, (4)

    7.875%        N/A (3)        BBB        5,868,506  
  6,979    

Credit Agricole SA, 144A, (4)

    8.125%        N/A (3)        BBB        8,072,958  
  4,765    

Credit Suisse Group AG, 144A

    5.250%        N/A (3)        BB+        4,751,658  
  1,700    

Danske Bank A/S, Reg S

    6.125%        N/A (3)        BBB-        1,759,534  
  1,725    

Danske Bank A/S, Reg S

    4.375%        N/A (3)        BBB-        1,664,625  
  1,500    

Danske Bank A/S, Reg S

    7.000%        N/A (3)        BBB-        1,609,680  
  3,655    

HSBC Holdings PLC

    6.375%        N/A (3)        BBB        3,837,750  
  14,356    

HSBC Holdings PLC, (4)

    6.375%        N/A (3)        BBB        15,177,450  
  11,100    

HSBC Holdings PLC, (4)

    6.000%        N/A (3)        BBB        11,717,493  
  5,735    

ING Groep NV, Reg S

    6.750%        N/A (3)        BBB        6,100,606  
  3,045    

ING Groep NV

    6.500%        N/A (3)        BBB        3,258,150  
  4,850    

ING Groep NV

    5.750%        N/A (3)        BBB        5,098,563  
  7,214    

Intesa Sanpaolo SpA, 144A, (5)

    7.700%        N/A (3)        BB-        7,917,365  
  10,645    

Lloyds Banking Group PLC, (4)

    7.500%        N/A (3)        Baa3        11,551,741  
  6,550    

Lloyds Banking Group PLC, (4)

    7.500%        N/A (3)        Baa3        7,266,078  
  3,050    

Macquarie Bank Ltd/London, 144A

    6.125%        N/A (3)        BB+        3,191,063  
  5,970    

NatWest Group PLC, (5)

    8.000%        N/A (3)        BBB-        6,723,712  
  5,050    

NatWest Group PLC

    6.000%        N/A (3)        BBB-        5,318,155  
  3,735    

Nordea Bank Abp, 144A

    6.625%        N/A (3)        BBB+        4,143,534  
  1,820    

Societe Generale SA, 144A, (4)

    8.000%        N/A (3)        BB        2,055,344  
  6,163    

Societe Generale SA, 144A, (4)

    7.875%        N/A (3)        BB+        6,601,189  
  1,928    

Societe Generale SA, 144A, (5)

    6.750%        N/A (3)        BB        2,053,320  
  2,635    

Societe Generale SA, 144A, (5)

    4.750%        N/A (3)        BB+        2,603,143  
  4,520    

Standard Chartered PLC, 144A

    4.300%        N/A (3)        BBB-        4,226,200  
  1,875    

Standard Chartered PLC, 144A

    7.750%        N/A (3)        BBB-        1,973,288  
  2,880    

Standard Chartered PLC, 144A, (5)

    6.000%        N/A (3)        BBB-        3,009,600  
  4,260    

UniCredit SpA, Reg S

    8.000%        N/A (3)        BB-        4,611,450  
  203,630    

Total Banks

                               216,737,582  
      Capital Markets – 12.6%  
  1,955    

Credit Suisse Group AG, 144A, (5)

    6.375%        N/A (3)        BB+        2,040,531  
  9,496    

Credit Suisse Group AG, 144A, (4), (5)

    7.250%        N/A (3)        BB+        10,148,850  
  3,632    

Credit Suisse Group AG, 144A

    7.500%        N/A (3)        BB+        3,870,768  
  8,175    

Credit Suisse Group AG, 144A, (5)

    7.500%        N/A (3)        BB+        8,507,232  
  12,995    

Deutsche Bank AG, (4), (5)

    6.000%        N/A (3)        BB-        13,092,462  
  9,437    

UBS Group AG, Reg S

    7.000%        N/A (3)        BBB        10,255,660  
  1,525    

UBS Group AG, Reg S

    5.125%        N/A (3)        BBB        1,574,709  
  7,395    

UBS Group AG, 144A, (5)

    7.000%        N/A (3)        BBB        7,815,628  
  6,005    

UBS Group AG, Reg S, (5)

    6.875%        N/A (3)        BBB        6,522,595  
  1,595    

UBS Group AG, 144A

    4.875%        N/A (3)        BBB        1,592,767  
  4,085    

UBS Group AG, 144A

    3.875%        N/A (3)        BBB        3,922,621  
  66,295    

Total Capital Markets

                               69,343,823  
  269,925    

Total Contingent Capital Securities (cost $274,271,944)

                               286,081,405  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 28.2% (18.4% of Total Investments)

 

      Banks – 8.6%  
  59,100    

Bank of America Corp, (5)

    4.375%           BBB+      $ 1,397,124  
  99,200    

CoBank ACB, (4), (7)

    6.250%           BBB+        10,296,960  
  62,728    

CoBank ACB, (4), (7)

    6.200%           BBB+        6,758,942  
  111,200    

Farm Credit Bank of Texas, 144A, (5), (7)

    6.750%           Baa1        11,453,600  
  98,863    

Fifth Third Bancorp

    6.625%           Baa3        2,709,835  
  25,900    

KeyCorp

    6.125%           Baa3        744,625  

 

35


JPI    Nuveen Preferred and Income Term Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Banks – 8.6% (continued)  
  120,200    

Regions Financial Corp

    6.375%           BB+      $ 3,370,408  
  57,838    

Regions Financial Corp

    5.700%           BB+        1,540,226  
  82,853    

Synovus Financial Corp

    5.875%           BB-        2,213,832  
  61,900    

Truist Financial Corp, (5)

    4.750%           Baa2        1,573,498  
  64,600    

Wells Fargo & Co

    4.750%           Baa2        1,604,664  
  43,000    

Western Alliance Bancorp

    4.250%           Ba1        1,084,460  
  86,389    

Wintrust Financial Corp

    6.875%                 BB        2,395,567  
 

Total Banks

                               47,143,741  
      Capital Markets – 2.6%  
  31,549    

Goldman Sachs Group Inc/The

    5.500%           BB+        825,637  
  101,372    

Morgan Stanley

    7.125%           Baa3        2,745,154  
  103,476    

Morgan Stanley

    6.875%           Baa3        2,806,269  
  196,300    

Morgan Stanley, (4)

    5.850%           Baa3        5,417,880  
  93,300    

Morgan Stanley

    6.375%                 Baa3        2,543,358  
 

Total Capital Markets

                               14,338,298  
      Consumer Finance – 0.3%                           
  66,500    

Synchrony Financial

    5.625%                 BB-        1,728,335  
      Diversified Financial Services – 2.8%                           
  69,700    

AgriBank FCB, (7)

    6.875%           BBB+        7,423,050  
  105,500    

Equitable Holdings Inc, (5)

    5.250%           BBB-        2,703,965  
  190,535    

Voya Financial Inc, (4)

    5.350%                 BBB-        5,458,828  
 

Total Diversified Financial Services

                               15,585,843  
      Diversified Telecommunication Services – 0.2%                           
  49,500    

AT&T Inc, (5)

    4.750%                 BBB-        1,216,215  
      Food Products – 2.5%                           
  61,800    

CHS Inc

    7.875%           N/R        1,699,500  
  180,029    

CHS Inc

    7.100%           N/R        4,923,793  
  177,210    

CHS Inc, (4)

    6.750%           N/R        4,827,200  
  20,500    

Dairy Farmers of America Inc, 144A, (7), (8)

    7.875%                 BB+        2,070,500  
 

Total Food Products

                               13,520,993  
      Insurance – 7.5%                           
  256,300    

American Equity Investment Life Holding Co

    5.950%           BB        6,868,840  
  122,300    

American Equity Investment Life Holding Co

    6.625%           BB        3,363,250  
  231,598    

Aspen Insurance Holdings Ltd, (4)

    5.950%           BB+        6,250,830  
  62,000    

Aspen Insurance Holdings Ltd

    5.625%           BB+        1,588,440  
  45,000    

Assurant Inc

    5.250%           BB+        1,144,800  
  159,300    

Athene Holding Ltd, (5)

    6.350%           BBB        4,430,133  
  127,800    

Athene Holding Ltd

    6.375%           BBB        3,467,214  
  59,400    

Delphi Financial Group Inc, (5), (7), (8)

    3.346%           BBB        1,291,950  
  123,400    

Enstar Group Ltd, (5)

    7.000%           BB+        3,451,498  
  200,629    

Maiden Holdings North America Ltd, (5)

    7.750%           N/R        4,403,626  
  146,800    

Reinsurance Group of America Inc, (5)

    5.750%           BBB+        4,224,904  
  43,200    

Selective Insurance Group Inc

    4.600%                 BBB-        1,032,480  
 

Total Insurance

                               41,517,965  
      Oil, Gas & Consumable Fuels – 2.0%                           
  33,200    

Energy Transfer LP

    7.600%           BB        826,680  
  157,103    

NuStar Energy LP

    6.969%           B2        3,866,305  
  139,235    

NuStar Energy LP, (5)

    7.625%           B2        3,060,385  
  121,018    

NuStar Logistics LP, (5)

    6.975%                 B        3,050,864  
 

Total Oil, Gas & Consumable Fuels

                               10,804,234  
      Thrifts & Mortgage Finance – 1.2%                           
  70,669    

Federal Agricultural Mortgage Corp

    6.000%           N/R        1,891,809  
  179,115    

New York Community Bancorp Inc, (5)

    6.375%                 Ba2        4,963,277  
 

Total Thrifts & Mortgage Finance

                               6,855,086  

 

36


  
  
  

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Trading Companies & Distributors – 0.5%  
$ 114,543    

Air Lease Corp, (5)

    6.150%                 BB+      $ 3,005,608  
 

Total $25 Par (or similar) Retail Preferred (cost $147,862,765)

                               155,716,318  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 0.7% (0.4% of Total Investments)

 

  
      Banks – 0.2% (0.1% of Total Investments)  
$ 1,085    

Commerzbank AG, 144A, (5)

    8.125%        9/19/23        Baa3      $ 1,178,560  
      Insurance – 0.5% (0.3% of Total Investments)  
  2,400    

Fidelis Insurance Holdings Ltd, 144A, (5)

    6.625%        4/01/41        BB+        2,514,000  
$ 3,485    

Total Corporate Bonds (cost $3,485,000)

                               3,692,560  
       

Total Long-Term Investments (cost $803,904,019)

                               846,589,271  
Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
 

SHORT-TERM INVESTMENTS – 0.2% (0.1% of Total Investments)

          
      REPURCHASE AGREEMENTS – 0.2% (0.1% of Total Investments)                           
$ 973    

Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/22, repurchase price $972,728,
collateralized by $1,028,000, U.S. Treasury Bond,
1.875%, due 2/15/41, value $992,198

    0.000%        2/01/22               $ 972,728  
 

Total Short-Term Investments (cost $972,728)

                               972,728  
 

Total Investments (cost $804,876,747) – 153.7%

 

              847,561,999  
 

Borrowings – (42.8)% (11), (12)

 

              (236,000,000
 

Reverse Repurchase Agreements, including accrued interest – (11.8)% (13)

 

              (65,110,466
 

Other Assets Less Liabilities – 0.9% (14)

 

              4,964,041  
 

Net Assets Applicable to Common Shares – 100%

 

            $ 551,415,574  

 

37


JPI    Nuveen Preferred and Income Term Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Investments in Derivatives

Futures Contracts – Short

 

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

U.S. Treasury 10-Year Note

     (292      3/22      $ (37,811,198    $ (37,366,875    $ 444,323      $ (4,563

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

  $ 112,000,000       Receive       1-Month LIBOR       1.928     Monthly       6/01/18       3/01/23       3/01/24     $ (1,980,455   $ (1,980,455

Morgan Stanley Capital Services, LLC

    45,000,000       Receive       1-Month LIBOR       2.333       Monthly       7/01/19       10/01/23       7/01/24       (1,239,738     (1,239,738

Total

  $ 157,000,000                                                             $ (3,220,193   $ (3,220,193

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)

Investment, or portion of investment, is hypothecated. The total value of investments hypothecated as of the end of the reporting period was $217,393,137.

 

(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 $72,055,304 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)

For fair value measurement disclosure purposes, investment classified as Level 2.

 

(8)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

 

(9)

Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives.

 

(10)

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.

 

(11)

Borrowings as a percentage of Total Investments is 27.8%.

 

(12)

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 $533,614,005 have been pledged as collateral for borrowings.

 

(13)

Reverse Repurchase Agreements, including accrued interest as a percentage of Total Investments is 7.7%.

 

(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.

 

LIBOR

London Inter-Bank Offered Rate

 

N/A

Not Applicable

 

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.

 

38


JPS   

Nuveen Preferred & Income
Securities Fund

 

Portfolio of Investments    January 31, 2022

     (Unaudited)

 

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

LONG-TERM INVESTMENTS – 158.0% (99.3% of Total Investments)

 

     
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 79.1% (49.7% of Total Investments)

 

      Banks – 29.1%                           
$ 2,861    

Bank of America Corp, (3)

    8.050%        6/15/27        Baa2      $ 3,552,312  
  2,800    

Bank of America Corp

    4.375%        N/A (4)        BBB+        2,765,280  
  19,300    

Bank of America Corp

    6.500%        N/A (4)        BBB+        20,770,660  
  12,300    

Bank of America Corp

    6.100%        N/A (4)        BBB+        13,258,293  
  3,000    

Bank of Nova Scotia

    4.900%        N/A (4)        BBB-        3,127,500  
  8,500    

Citigroup Inc

    4.150%        N/A (4)        BBB-        8,293,620  
  14,799    

Citigroup Inc

    4.000%        N/A (4)        BBB-        14,614,012  
  20,700    

Citigroup Inc

    3.875%        N/A (4)        BBB-        20,151,450  
  5,500    

Citigroup Inc

    5.950%        N/A (4)        BBB-        5,802,500  
  7,500    

Citizens Financial Group Inc

    4.000%        N/A (4)        BB+        7,359,375  
  3,976    

Citizens Financial Group Inc

    5.650%        N/A (4)        BB+        4,264,260  
  3,400    

Citizens Financial Group Inc, (3)

    6.375%        N/A (4)        BB+        3,485,000  
  14,000    

CoBank ACB, (3)

    6.250%        N/A (4)        BBB+        15,330,000  
  12,130    

Comerica Inc, (3)

    5.625%        N/A (4)        Baa2        13,054,306  
  6,100    

Corestates Capital III, (3-Month LIBOR reference rate + 0.570% spread), 144A, (3), (5)

    0.726%        2/15/27        A1        5,928,758  
  1,250    

DNB Bank ASA, (3-Month LIBOR reference rate + 0.250% spread), (5)

    0.430%        N/A (4)        Baa2        1,182,188  
  1,250    

DNB Bank ASA, (6-Month LIBOR reference rate + 0.150% spread), (5)

    0.308%        N/A (4)        Baa2        1,181,250  
  1,000    

Fifth Third Bancorp

    4.500%        N/A (4)        Baa3        1,030,000  
  2,500    

Goldman Sachs Group Inc/The

    3.800%        N/A (4)        BBB-        2,404,475  
  30,000    

HSBC Capital Funding Dollar 1 LP, 144A, (6)

    10.176%        N/A (4)        BBB        48,600,000  
  8,000    

HSBC Capital Funding Dollar 1 LP, Reg S

    10.176%        12/31/70        BBB        12,960,000  
  11,000    

Huntington Bancshares Inc/OH, (3)

    5.625%        N/A (4)        Baa3        12,349,920  
  21,000    

Huntington Bancshares Inc/OH, (3)

    4.450%        N/A (4)        Baa3        21,682,500  
  7,000    

JPMorgan Chase & Co, (3)

    6.100%        N/A (4)        BBB+        7,428,750  
  55,800    

JPMorgan Chase & Co

    6.750%        N/A (4)        BBB+        59,745,060  
  2,000    

JPMorgan Chase & Co

    3.650%        N/A (4)        BBB+        1,922,740  
  10,300    

JPMorgan Chase & Co, (3-Month LIBOR reference rate + 3.800% spread), (5)

    3.926%        N/A (4)        BBB+        10,300,000  
  8,000    

KeyCorp Capital III, (3)

    7.750%        7/15/29        Baa2        9,990,726  
  11,300    

Lloyds Bank PLC, Reg S

    12.000%        N/A (4)        Baa3        11,301,808  
  6,200    

PNC Financial Services Group Inc

    3.400%        N/A (4)        Baa2        5,843,438  
  4,100    

PNC Financial Services Group Inc, (3-Month LIBOR reference rate + 3.678% spread), (5)

    3.804%        N/A (4)        Baa2        4,128,721  
  2,000    

Regions Financial Corp

    5.750%        N/A (4)        BB+        2,150,180  
  24,100    

Standard Chartered PLC, 144A

    7.014%        N/A (4)        BBB-        32,535,000  
  16,200    

SVB Financial Group

    4.250%        N/A (4)        Baa2        15,946,875  
  1,000    

SVB Financial Group

    4.100%        N/A (4)        Baa2        944,220  
  36,386    

Truist Financial Corp, (6)

    4.800%        N/A (4)        Baa2        37,113,720  
  46,867    

Truist Financial Corp, (6)

    4.950%        N/A (4)        Baa2        49,604,970  
  25,580    

Wells Fargo & Co, (3)

    7.950%        11/15/29        Baa1        34,134,159  
  38,150    

Wells Fargo & Co, (3), (6)

    3.900%        N/A (4)        Baa2        37,785,667  
 

Total Banks

                               564,023,693  
      Capital Markets – 9.9%  
  10,000    

Bank of New York Mellon Corp

    3.700%        N/A (4)        Baa1        10,066,300  
  21,300    

Bank of New York Mellon Corp

    3.750%        N/A (4)        Baa1        20,661,000  
  35,150    

Bank of New York Mellon Corp, (6)

    4.700%        N/A (4)        Baa1        37,039,313  
  15,500    

Charles Schwab Corp

    4.000%        N/A (4)        BBB        15,312,915  
  18,700    

Charles Schwab Corp

    7.000%        N/A (4)        BBB        18,816,875  
  39,505    

Charles Schwab Corp, (6)

    5.375%        N/A (4)        BBB        42,428,370  
  7,500    

Depository Trust & Clearing Corp, 144A

    3.375%        N/A (4)        A        7,200,000  
  18,000    

Goldman Sachs Group Inc

    3.650%        N/A (4)        BBB-        17,122,500  
  6,000    

Goldman Sachs Group Inc

    5.500%        N/A (4)        BBB-        6,293,100  
  7,600    

Goldman Sachs Group Inc

    4.950%        N/A (4)        BBB-        7,818,120  

 

39


JPS    Nuveen Preferred & Income Securities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Capital Markets (continued)  
$ 10,000    

State Street Corp, (3-Month LIBOR reference rate + 1.000% spread), (5)

    1.203%        6/15/47        A3      $ 8,862,018  
  867    

State Street Corp, (3-Month LIBOR reference rate + 3.597% spread), (5)

    3.800%        N/A (4)        Baa1        870,830  
 

Total Capital Markets

                               192,491,341  
      Consumer Finance – 2.3%  
  8,500    

Ally Financial Inc

    4.700%        N/A (4)        Ba2        8,403,525  
  7,400    

Ally Financial Inc

    4.700%        N/A (4)        Ba2        7,326,000  
  14,500    

American Express Co

    3.550%        N/A (4)        Baa2        13,883,750  
  5,000    

Capital One Financial Corp

    3.950%        N/A (4)        Baa3        4,887,500  
  10,000    

Discover Financial Services, (3)

    6.125%        N/A (4)        Ba2        10,790,600  
 

Total Consumer Finance

                               45,291,375  
      Diversified Financial Services – 3.5%  
  7,500    

Citigroup Inc

    5.950%        N/A (4)        BBB-        7,668,750  
  4,000    

JP Morgan Chase & Company

    6.000%        N/A (4)        BBB+        4,154,500  
  12,800    

Scentre Group Trust 2, 144A

    4.750%        9/24/80        BBB+        13,136,000  
  28,484    

Voya Financial Inc, (3)

    5.650%        5/15/53        BBB-        29,028,044  
  12,700    

Voya Financial Inc

    6.125%        N/A (4)        BBB-        13,144,500  
 

Total Diversified Financial Services

                               67,131,794  
      Electric Utilities – 5.0%  
  8,500    

American Electric Power Co Inc

    3.875%        2/15/62        BBB-        8,338,011  
  24,075    

Duke Energy Corp

    4.875%        N/A (4)        BBB-        24,797,250  
  19,091    

Emera Inc, (3)

    6.750%        6/15/76        BB+        21,525,102  
  10,000    

NextEra Energy Capital Holdings Inc

    2.328%        6/15/67        BBB        9,235,781  
  1,600    

NextEra Energy Capital Holdings Inc

    4.800%        12/01/77        BBB        1,656,105  
  21,400    

PPL Capital Funding Inc, (3)

    2.885%        3/30/67        BBB        19,688,000  
  5,600    

Southern Co, (3)

    4.000%        1/15/51        BBB-        5,642,056  
  6,000    

Southern Co

    5.500%        3/15/57        BBB-        5,984,115  
 

Total Electric Utilities

                               96,866,420  
      Food Products – 0.4%  
  6,705    

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

    7.125%        N/A (4)        BB+        6,989,963  
      Insurance – 20.0%  
  3,598    

ACE Capital Trust II

    9.700%        4/01/30        BBB+        5,180,791  
  10,500    

Allianz SE, 144A

    3.500%        N/A (4)        A        10,303,125  
  4,400    

Allianz SE, Reg S

    3.500%        N/A (4)        A        4,317,500  
  4,400    

Allstate Corp, (3)

    5.750%        8/15/53        BBB        4,564,032  
  1,100    

Allstate Corp

    6.500%        5/15/57        Baa1        1,410,750  
  13,300    

American International Group Inc, (3)

    5.750%        4/01/48        BBB-        14,504,581  
  2,299    

Aon Corp, (3)

    8.205%        1/01/27        BBB        2,825,508  
  6,210    

Argentum Netherlands BV for Swiss Re Ltd, Reg S, (3)

    5.750%        8/15/50        BBB+        6,714,563  
  2,100    

Argentum Netherlands BV for Swiss Re Ltd, Reg S

    5.625%        8/15/52        BBB+        2,310,000  
  16,550    

AXA SA, (3)

    8.600%        12/15/30        BBB+        23,178,308  
  17,819    

AXA SA, 144A, (3)

    6.379%        N/A (4)        Baa1        24,144,745  
  14,550    

Cloverie PLC for Zurich Insurance Co Ltd, Reg S

    5.625%        6/24/46        A+        15,932,250  
  17,300    

Legal & General Group PLC, Reg S

    5.250%        3/21/47        A3        18,398,550  
  29,600    

MetLife Capital Trust IV, 144A, (3), (6)

    7.875%        12/15/37        BBB        39,442,000  
  36,531    

MetLife Inc, 144A, (3), (6)

    9.250%        4/08/38        BBB        53,985,443  
  3,000    

MetLife Inc

    10.750%        8/01/39        BBB        4,898,928  
  11,300    

MetLife Inc

    3.850%        N/A (4)        BBB        11,384,750  
  41,904    

Nationwide Financial Services Inc, (3)

    6.750%        5/15/37        Baa2        49,341,960  
  20,600    

Nippon Life Insurance Co, 144A, (3)

    2.750%        1/21/51        A-        19,606,050  
  27,180    

Prudential Financial Inc, (3)

    5.625%        6/15/43        BBB+        28,133,208  
  3,750    

Prudential Financial Inc

    5.700%        9/15/48        BBB+        4,090,264  
  6,500    

Prudential Financial Inc, (6)

    3.700%        10/01/50        BBB+        6,363,031  
  14,900    

Sumitomo Life Insurance Co, 144A, (3)

    3.375%        4/15/81        A-        15,107,557  
  8,700    

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

    4.250%        10/01/45        A+        9,036,098  
  14,394    

Zurich Finance Ireland Designated Activity Co, Reg S

    3.000%        4/19/51        A+        13,495,814  
 

Total Insurance

                               388,669,806  

 

40


  
  
  

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Machinery – 0.3%  
$ 5,700    

Stanley Black & Decker Inc

    4.000%        3/15/60        BBB+      $ 5,786,697  
      Multi-Utilities – 3.4%  
  500    

Algonquin Power & Utilities Corp

    4.750%        1/18/82        BB+        494,013  
  2,000    

Dominion Energy Inc

    4.350%        N/A (4)        BBB-        2,015,000  
  38,020    

Dominion Energy Inc, (6)

    4.650%        N/A (4)        BBB-        39,065,550  
  20,900    

NiSource Inc, (6)

    5.650%        N/A (4)        BBB-        21,265,750  
  3,000    

WEC Energy Group Inc

    2.269%        5/15/67        BBB        2,737,500  
 

Total Multi-Utilities

                               65,577,813  
      Oil, Gas & Consumable Fuels – 2.8%  
  5,900    

BP Capital Markets PLC

    4.375%        N/A (4)        BBB+        6,047,500  
  16,000    

Enbridge Inc, (3)

    5.750%        7/15/80        BBB-        17,520,000  
  10,934    

Enterprise Products Operating LLC, (3)

    5.250%        8/16/77        Baa2        10,949,670  
  3,400    

Enterprise Products Operating LLC

    5.375%        2/15/78        Baa2        3,328,197  
  14,885    

Transcanada Trust

    5.500%        9/15/79        BBB        15,629,250  
 

Total Oil, Gas & Consumable Fuels

                               53,474,617  
      Road & Rail – 1.4%  
  25,485    

BNSF Funding Trust I, (6)

    6.613%        12/15/55        A        27,842,363  
      Wireless Telecommunication Services – 1.0%  
  16,516    

Vodafone Group PLC

    7.000%        4/04/79        BB+        18,982,783  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $1,427,026,273)

 

              1,533,128,665  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 54.8% (34.5% of Total Investments) (7)

 

     
      Banks – 44.4%                           
$ 2,800    

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

    6.750%        N/A (4)        Baa2      $ 3,122,000  
  11,800    

Banco Bilbao Vizcaya Argentaria SA, (3)

    6.125%        N/A (4)        Ba2        12,109,750  
  17,800    

Banco Bilbao Vizcaya Argentaria SA

    6.500%        N/A (4)        Ba2        18,489,750  
  24,200    

Banco Santander SA, Reg S, (3)

    7.500%        N/A (4)        Ba1        25,708,628  
  6,200    

Banco Santander SA

    4.750%        N/A (4)        Ba1        5,958,200  
  1,708    

Barclays Bank PLC, (3)

    7.625%        11/21/22        BBB+        1,788,833  
  26,000    

Barclays PLC, (6)

    8.000%        N/A (4)        BBB-        28,332,720  
  63,300    

Barclays PLC, (6)

    7.750%        N/A (4)        BBB-        67,256,250  
  31,100    

Barclays PLC, Reg S

    7.875%        N/A (4)        BBB-        31,274,222  
  5,500    

BNP Paribas SA, 144A

    7.000%        N/A (4)        BBB        6,228,750  
  38,585    

BNP Paribas SA, 144A, (3), (6)

    7.375%        N/A (4)        BBB        43,149,605  
  10,000    

BNP Paribas SA, Reg S

    7.375%        N/A (4)        BBB        11,183,000  
  39,000    

BNP Paribas SA, 144A

    4.625%        N/A (4)        BBB        38,337,000  
  2,000    

Credit Agricole SA, 144A

    4.750%        N/A (4)        BBB        1,962,500  
  19,653    

Credit Agricole SA, 144A

    7.875%        N/A (4)        BBB        21,298,939  
  31,550    

Credit Agricole SA, 144A, (6)

    8.125%        N/A (4)        BBB        36,495,462  
  4,466    

Credit Agricole SA, Reg S, (3)

    8.125%        N/A (4)        BBB        5,166,046  
  11,588    

Danske Bank A/S, Reg S, (3)

    6.125%        N/A (4)        BBB-        11,993,812  
  5,000    

Danske Bank A/S, Reg S

    4.375%        N/A (4)        BBB-        4,825,000  
  10,500    

Danske Bank A/S, Reg S

    7.000%        N/A (4)        BBB-        11,267,760  
  13,300    

DNB Bank ASA, Reg S

    6.500%        N/A (4)        BBB        13,388,897  
  38,192    

DNB Bank ASA, Reg S

    4.875%        N/A (4)        BBB        39,003,580  
  8,504    

HSBC Holdings PLC, (3)

    6.250%        N/A (4)        BBB        8,759,120  
  1,600    

HSBC Holdings PLC, (3)

    6.000%        N/A (4)        BBB        1,689,008  
  9,700    

ING Groep NV, Reg S, (3)

    6.875%        N/A (4)        BBB        9,796,457  
  26,700    

ING Groep NV

    6.500%        N/A (4)        BBB        28,569,000  
  9,600    

Intesa Sanpaolo SpA, 144A

    7.700%        N/A (4)        BB-        10,536,000  
  48,428    

Lloyds Banking Group PLC, (6)

    7.500%        N/A (4)        Baa3        52,553,097  
  4,500    

Lloyds Banking Group PLC, (3)

    6.750%        N/A (4)        Baa3        4,944,375  
  5,075    

Macquarie Bank Ltd/London, 144A, (3)

    6.125%        N/A (4)        BB+        5,309,719  
  14,250    

NatWest Group PLC

    8.000%        N/A (4)        BBB-        16,049,062  

 

41


JPS    Nuveen Preferred & Income Securities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks (continued)                           
$ 17,000    

NatWest Group PLC

    6.000%        N/A (4)        BBB-      $ 17,902,700  
  35,090    

Nordea Bank Abp, 144A, (6)

    6.125%        N/A (4)        BBB+        37,063,812  
  18,988    

Nordea Bank Abp, Reg S

    6.125%        N/A (4)        BBB+        20,056,075  
  26,400    

Nordea Bank Abp, 144A, (6)

    6.625%        N/A (4)        BBB+        29,287,632  
  1,000    

Skandinaviska Enskilda Banken AB, Reg S

    5.625%        N/A (4)        BBB+        1,007,500  
  10,000    

Skandinaviska Enskilda Banken AB, Reg S

    5.125%        N/A (4)        BBB+        10,262,500  
  73,300    

Societe Generale SA, 144A, (6)

    8.000%        N/A (4)        BB        82,778,423  
  4,550    

Societe Generale SA, 144A

    5.375%        N/A (4)        BB+        4,579,575  
  9,000    

Societe Generale SA, Reg S

    7.875%        N/A (4)        BB+        9,639,900  
  1,700    

Societe Generale SA, 144A

    4.750%        N/A (4)        BB+        1,679,447  
  16,622    

Standard Chartered PLC, 144A

    7.500%        N/A (4)        BBB-        16,746,665  
  13,000    

Standard Chartered PLC, 144A

    7.750%        N/A (4)        BBB-        13,681,460  
  4,700    

Standard Chartered PLC, Reg S

    7.500%        N/A (4)        BBB-        4,735,250  
  7,200    

Svenska Handelsbanken AB, Reg S

    4.375%        N/A (4)        A-        7,307,482  
  12,000    

Swedbank AB, Reg S, (3)

    6.000%        N/A (4)        BBB        12,030,000  
  15,000    

UniCredit SpA, Reg S

    8.000%        N/A (4)        BB-        16,237,500  
  808,149    

Total Banks

                               861,542,463  
      Capital Markets – 10.4%  
  58,000    

Credit Suisse Group AG, 144A, (3), (6)

    7.500%        N/A (4)        BB+        61,812,920  
  17,400    

Credit Suisse Group AG, Reg S

    7.500%        N/A (4)        BB+        18,540,222  
  6,700    

Credit Suisse Group AG, Reg S

    7.125%        N/A (4)        BB+        6,800,500  
  11,000    

Credit Suisse Group AG, 144A

    7.500%        N/A (4)        BB+        11,447,040  
  4,300    

UBS Group AG, Reg S

    5.125%        N/A (4)        BBB        4,440,163  
  3,000    

UBS Group AG, 144A, (3)

    7.000%        N/A (4)        BBB        3,170,640  
  35,300    

UBS Group AG, Reg S, (3)

    6.875%        N/A (4)        BBB        38,342,648  
  24,000    

UBS Group AG, 144A

    4.875%        N/A (4)        BBB        23,966,400  
  25,000    

UBS Group AG, 144A, (3)

    3.875%        N/A (4)        BBB        24,006,250  
  10,000    

UBS Group AG, Reg S

    3.875%        N/A (4)        BBB        9,602,500  
  194,700    

Total Capital Markets

                               202,129,283  
  1,002,849    

Total Contingent Capital Securities (cost $1,013,917,041)

                               1,063,671,746  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 16.7% (10.5% of Total Investments)

 

      Banks – 6.9%  
  233,680    

Associated Banc-Corp

    5.625%           Baa3      $ 6,038,291  
  315,542    

Bank of America Corp

    5.375%           BBB+        8,260,889  
  346,088    

Citigroup Inc

    6.875%           BBB-        9,313,228  
  47,500    

CoBank ACB, (8)

    6.250%           BBB+        4,930,500  
  53,000    

CoBank ACB, (8)

    6.200%           BBB+        5,710,750  
  177,750    

Farm Credit Bank of Texas, 144A, (3), (8)

    6.750%           Baa1        18,308,250  
  84,563    

Fifth Third Bancorp

    6.625%           Baa3        2,317,872  
  50,000    

Fifth Third Bancorp

    4.950%           Baa3        1,270,000  
  40,000    

First Republic Bank/CA

    4.000%           BBB-        882,000  
  150,000    

Fulton Financial Corp

    5.125%           Baa3        3,784,500  
  11,474    

JPMorgan Chase & Co

    5.750%           BBB+        301,307  
  600    

JPMorgan Chase & Co

    6.000%           BBB+        15,966  
  722,103    

KeyCorp

    6.125%           Baa3        20,760,461  
  1,420,590    

PNC Financial Services Group Inc, (3)

    6.125%           Baa2        35,969,339  
  189,200    

Regions Financial Corp, (3)

    5.700%           BB+        5,038,396  
  21,637    

Synovus Financial Corp

    5.875%           BB-        578,141  
  212,731    

Wells Fargo & Co

    5.850%           Baa2        5,562,916  
  1,400    

Wells Fargo & Co

    4.750%           Baa2        34,776  
  152,000    

Western Alliance Bancorp

    4.250%                 Ba1        3,833,440  
 

Total Banks

                               132,911,022  
      Capital Markets – 2.0%  
  135,585    

Affiliated Managers Group Inc

    5.875%           Baa1        3,606,561  
  160,000    

Affiliated Managers Group Inc

    4.750%           Baa1        3,980,800  
  100,000    

Affiliated Managers Group Inc

    4.200%           Baa1        2,211,000  
  356,501    

Goldman Sachs Group Inc

    5.500%           BB+        9,329,631  

 

42


  
  
  

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Capital Markets (continued)  
  622,802    

Morgan Stanley

    5.850%           Baa3      $ 17,189,335  
  12,000    

Northern Trust Corp

    4.700%           BBB+        303,600  
  74,642    

State Street Corp

    5.900%                 Baa1        1,978,013  
 

Total Capital Markets

                               38,598,940  
      Consumer Finance – 0.2%  
  50,338    

Capital One Financial Corp, (3)

    5.000%           Baa3        1,261,974  
  130,000    

Capital One Financial Corp, (3)

    4.800%                 Baa3        3,186,300  
 

Total Consumer Finance

                               4,448,274  
      Diversified Financial Services – 1.1%  
  105,300    

AgriBank FCB, (8)

    6.875%           BBB+        11,214,450  
  239,758    

Equitable Holdings Inc, (3)

    5.250%           BBB-        6,144,998  
  100,000    

Equitable Holdings Inc

    4.300%           BBB-        2,333,000  
  10,181    

National Rural Utilities Cooperative Finance Corp

    5.500%           A3        270,102  
  39,705    

Voya Financial Inc, (3)

    5.350%                 BBB-        1,137,548  
 

Total Diversified Financial Services

                               21,100,098  
      Diversified Telecommunication Services – 0.8%  
  578,314    

AT&T Inc

    4.750%           BBB-        14,209,175  
  20,680    

AT&T Inc, (3)

    5.000%           BBB-        521,136  
  25,000    

AT&T Inc

    5.625%                 BBB+        658,250  
 

Total Diversified Telecommunication Services

                               15,388,561  
      Electric Utilities – 1.2%  
  154,334    

Alabama Power Co

    5.000%           A3        3,983,361  
  5,786    

CMS Energy Corp

    5.875%           BBB-        154,428  
  82,916    

DTE Energy Co

    4.375%           BBB-        2,021,492  
  152,276    

Duke Energy Corp, (3)

    5.750%           BBB-        4,070,338  
  16,000    

Entergy Texas Inc, (3)

    5.375%           BBB-        409,064  
  197,288    

NextEra Energy Capital Holdings Inc

    5.650%           BBB        5,253,779  
  86,891    

Southern Co

    5.250%           BBB-        2,240,919  
  188,947    

Southern Co

    4.950%           BBB-        4,821,927  
  53,372    

Southern Co

    4.200%                 BBB-        1,264,383  
 

Total Electric Utilities

                               24,219,691  
      Equity Real Estate Investment Trust – 1.8%  
  135,000    

Hudson Pacific Properties Inc, (9)

    4.750%           Baa3        3,410,100  
  200    

Kimco Realty Corp

    5.125%           Baa2        5,100  
  80,301    

Prologis Inc, (8)

    8.540%           BBB        5,144,082  
  105,700    

PS Business Parks Inc

    5.250%           BBB        2,668,925  
  5,583    

PS Business Parks Inc

    4.875%           BBB        143,316  
  193,083    

Public Storage

    5.600%           A3        5,182,348  
  8,331    

Public Storage, (3)

    4.875%           A3        215,939  
  111,690    

Public Storage, (3)

    4.750%           A3        2,845,861  
  4,000    

Public Storage

    4.700%           A3        101,880  
  131,589    

Public Storage

    4.625%           A3        3,373,942  
  83,200    

Public Storage

    4.125%           A3        1,970,176  
  300,000    

Public Storage

    4.000%           A3        6,987,000  
  121,528    

Public Storage, (9)

    4.000%                 A3        2,849,832  
 

Total Equity Real Estate Investment Trust

                               34,898,501  
      Food Products – 0.2%  
  32,500    

Dairy Farmers of America Inc, 144A, (8), (9)

    7.875%                 BB+        3,282,500  
      Insurance – 1.6%  
  601,623    

Allstate Corp

    5.100%           Baa1        15,148,867  
  93,406    

American Financial Group Inc

    5.875%           Baa2        2,474,325  
  60,000    

American Financial Group Inc

    5.625%           Baa2        1,616,400  
  19,825    

American International Group Inc

    5.850%           BBB-        523,776  
  24,814    

Arch Capital Group Ltd

    5.450%           BBB        633,998  
  278,341    

Hartford Financial Services Group Inc, (3)

    7.875%           Baa2        7,089,345  

 

43


JPS    Nuveen Preferred & Income Securities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Insurance (continued)  
  3,839    

Hartford Financial Services Group Inc

    6.000%           BBB-      $ 102,233  
  28,129    

MetLife Inc

    4.750%           BBB        708,288  
  50,813    

Prudential Financial Inc

    4.125%           BBB+        1,233,232  
  40,000    

RenaissanceRe Holdings Ltd

    4.200%           BBB        929,200  
  5,646    

W R Berkley Corp

    5.700%           Baa2        148,377  
  38,000    

W R Berkley Corp

    4.250%                 BBB-        934,800  
 

Total Insurance

                               31,542,841  
      Multi-Utilities – 0.7%  
  179,646    

Algonquin Power & Utilities Corp

    6.200%           BB+        4,803,734  
  280,000    

DTE Energy Co

    5.250%           BBB-        7,235,200  
  95,000    

DTE Energy Co

    4.375%                 BBB-        2,390,200  
 

Total Multi-Utilities

                               14,429,134  
      Oil, Gas & Consumable Fuels – 0.2%  
  125,563    

Enbridge Inc

    6.375%                 BBB-        3,334,953  
 

Total $25 Par (or similar) Retail Preferred (cost $314,704,113)

                               324,154,515  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 4.5% (2.8% of Total Investments)

 

  
      Banks – 0.6%  
$ 7,000    

Citizens Financial Group Inc

    6.000%        1/06/71        BB+      $ 7,087,500  
  3,600    

JPMorgan Chase & Co

    8.750%        9/01/30        Baa1        5,255,590  
  10,600    

Total Banks

                               12,343,090  
      Equity Real Estate Investment Trust – 0.9%  
  16,100    

Scentre Group Trust 2, 144A

    5.125%        9/24/80        BBB+        16,602,642  
      Insurance – 3.0% (1.9% of Total Investments)  
  30,860    

Liberty Mutual Group Inc, 144A, (3)

    7.800%        3/15/37        Baa3        41,969,600  
  6,150    

Liberty Mutual Insurance Co, 144A, (3)

    7.697%        10/15/97        BBB+        9,366,767  
  7,700    

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

    2.294%        4/20/67        BBB        6,448,750  
  1,000    

Nippon Life Insurance Co, 144A

    2.900%        9/16/51        A-        954,580  
  45,710    

Total Insurance

                               58,739,697  
$ 72,410    

Total Corporate Bonds (cost $73,560,862)

                               87,685,429  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

CONVERTIBLE PREFERRED SECURITIES – 1.8% (1.1% of Total Investments)

 

      Banks – 1.8%  
  7,543    

Bank of America Corp

    7.250%           BBB+      $ 10,620,544  
  16,641    

Wells Fargo & Co

    7.500%                 Baa2        23,698,615  
 

Total Banks

                               34,319,159  
 

Total Convertible Preferred Securities (cost $33,848,454)

                               34,319,159  
Shares     Description (1)                           Value  
 

INVESTMENT COMPANIES – 1.1% (0.7% of Total Investments)

          
  723,135    

BlackRock Credit Allocation Income Trust

           $ 9,878,024  
  646,421    

John Hancock Preferred Income Fund III

                               11,370,545  
 

Total Investment Companies (cost $28,159,180)

                               21,248,569  
 

Total Long-Term Investments (cost $2,891,215,923)

                               3,064,208,083  

 

44


  
  
  

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
 

SHORT-TERM INVESTMENTS – 1.1% (0.7% of Total Investments)

          
      REPURCHASE AGREEMENTS – 1.1% (0.7% of Total Investments)                           
$ 21,513    

Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/22, repurchase price $21,512,581, collateralized by $22,734,700, U.S. Treasury Bond, 1.875%, due 2/15/41, value $21,942,924

    0.000%        2/01/22               $ 21,512,581  
 

Total Short-Term Investments (cost $21,512,581)

                               21,512,581  
 

Total Investments (cost $2,912,728,504) – 159.1%

 

              3,085,720,664  
 

Borrowings – (45.0)% (10), (11)

 

              (873,300,000
 

Reverse Repurchase Agreements, including accrued interest – (14.2)% (12)

 

              (275,377,653
 

Other Assets Less Liabilities – 0.1% (13)

 

              1,954,438  
 

Net Assets Applicable to Common Shares – 100%

 

            $ 1,938,997,449  

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 (14)
    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     $ (17,102,634   $ (17,102,634

Morgan Stanley Capital Services, LLC

    90,000,000       Receive       1-Month LIBOR       2.364       Monthly       7/01/19       7/01/26       7/01/28       (5,007,052     (5,007,052

Total

  $ 611,000,000                                                             $ (22,109,686   $ (22,109,686

 

45


JPS    Nuveen Preferred & Income Securities Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

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 $295,855,931 have been pledged as collateral for reverse repurchase agreements.

 

(4)

Perpetual security. Maturity date is not applicable.

 

(5)

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

 

(6)

Investment, or portion of investment, is hypothecated. The total value of investments hypothecated as of the end of the reporting period was $805,155,010.

 

(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.

 

(9)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

 

(10)

Borrowings as a percentage of Total Investments is 28.3%.

 

(11)

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 $1,885,690,358 have been pledged as collateral for borrowings.

 

(12)

Reverse Repurchase Agreements, including accrued interest as a percentage of Total Investments is 8.9%.

 

(13)

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.

 

(14)

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.

 

LIBOR

London Inter-Bank Offered Rate

 

N/A

Not Applicable

 

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.

 

46


JPT   

Nuveen Preferred and Income Fund

 

Portfolio of Investments    January 31, 2022

     (Unaudited)

 

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

LONG-TERM INVESTMENTS – 127.5% (99.6% of Total Investments)

 

     
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 93.6% (73.2% of Total Investments)

 

      Automobiles – 2.9%                           
$ 1,175    

General Motors Financial Co Inc

    5.700%        N/A (3)        BB+      $ 1,320,465  
  3,329    

General Motors Financial Co Inc

    5.750%        N/A (3)        BB+        3,513,094  
 

Total Automobiles

                               4,833,559  
      Banks – 31.7%  
  1,060    

Bank of America Corp

    4.375%        N/A (3)        BBB+        1,046,856  
  855    

Bank of America Corp

    6.250%        N/A (3)        BBB+        906,300  
  1,435    

Bank of America Corp

    6.500%        N/A (3)        BBB+        1,544,347  
  2,280    

Bank of America Corp

    6.300%        N/A (3)        BBB+        2,496,600  
  480    

Bank of America Corp

    6.100%        N/A (3)        BBB+        517,397  
  420    

Citigroup Inc

    4.150%        N/A (3)        BBB-        409,802  
  1,430    

Citigroup Inc

    6.250%        N/A (3)        BBB-        1,580,150  
  3,467    

Citigroup Inc

    5.950%        N/A (3)        BBB-        3,657,685  
  3,050    

Citigroup Inc

    6.300%        N/A (3)        BBB-        3,136,315  
  1,504    

Citizens Financial Group Inc

    6.375%        N/A (3)        BB+        1,541,600  
  833    

CoBank ACB

    6.250%        N/A (3)        BBB+        912,135  
  1,640    

Farm Credit Bank of Texas, 144A

    5.700%        N/A (3)        Baa1        1,742,500  
  200    

Fifth Third Bancorp

    4.500%        N/A (3)        Baa3        206,000  
  625    

First Citizens BancShares Inc/NC

    5.800%        N/A (3)        N/R        648,438  
  1,765    

Huntington Bancshares Inc/OH

    5.625%        N/A (3)        Baa3        1,981,601  
  1,125    

JPMorgan Chase & Co

    6.100%        N/A (3)        BBB+        1,193,906  
  4,610    

JPMorgan Chase & Co

    6.750%        N/A (3)        BBB+        4,935,927  
  1,770    

JPMorgan Chase & Co

    5.000%        N/A (3)        BBB+        1,800,975  
  3,745    

Lloyds Bank PLC, 144A

    12.000%        N/A (3)        Baa3        3,745,000  
  220    

M&T Bank Corp

    3.500%        N/A (3)        Baa2        206,824  
  1,220    

M&T Bank Corp

    5.125%        N/A (3)        Baa2        1,296,476  
  465    

M&T Bank Corp

    6.450%        N/A (3)        Baa2        488,692  
  1,266    

PNC Financial Services Group Inc/The

    5.000%        N/A (3)        Baa2        1,316,640  
  485    

PNC Financial Services Group Inc/The

    3.400%        N/A (3)        Baa2        457,108  
  750    

Regions Financial Corp

    5.750%        N/A (3)        BB+        806,318  
  180    

SVB Financial Group

    4.700%        N/A (3)        Baa2        178,686  
  240    

SVB Financial Group

    4.100%        N/A (3)        Baa2        226,613  
  500    

SVB Financial Group

    4.000%        N/A (3)        Baa2        485,985  
  2,960    

Truist Financial Corp

    4.800%        N/A (3)        Baa2        3,019,200  
  375    

Truist Financial Corp

    5.100%        N/A (3)        Baa2        406,875  
  1,635    

Truist Financial Corp

    5.050%        N/A (3)        Baa2        1,618,650  
  805    

Wells Fargo & Co

    7.950%        11/15/29        Baa1        1,074,198  
  1,665    

Wells Fargo & Co

    5.875%        N/A (3)        Baa2        1,779,968  
  3,780    

Wells Fargo & Co

    5.900%        N/A (3)        Baa2        3,874,500  
  355    

Zions Bancorp NA

    7.200%        N/A (3)        BB+        375,647  
  355    

Zions Bancorp NA

    5.800%        N/A (3)        BB+        361,942  
 

Total Banks

                               51,977,856  
      Capital Markets – 5.8%  
  295    

Bank of New York Mellon Corp/The

    4.700%        N/A (3)        Baa1        310,856  
  2,975    

Charles Schwab Corp/The

    5.375%        N/A (3)        BBB        3,195,150  
  1,250    

Dresdner Funding Trust I, 144A

    8.151%        6/30/31        Baa3        1,732,985  
  1,918    

Goldman Sachs Group Inc/The

    5.500%        N/A (3)        BBB-        2,011,694  
  360    

Goldman Sachs Group Inc/The

    4.125%        N/A (3)        BBB-        351,450  
  1,854    

Goldman Sachs Group Inc/The

    5.300%        N/A (3)        BBB-        1,988,415  
 

Total Capital Markets

                               9,590,550  

 

47


JPT    Nuveen Preferred and Income Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Consumer Finance – 3.3%  
$ 1,060    

Ally Financial Inc

    4.700%        N/A (3)        Ba2      $ 1,047,969  
  790    

Ally Financial Inc

    4.700%        N/A (3)        Ba2        782,100  
  1,060    

American Express Co

    3.550%        N/A (3)        Baa2        1,014,950  
  905    

Capital One Financial Corp

    3.950%        N/A (3)        Baa3        884,638  
  1,555    

Discover Financial Services

    6.125%        N/A (3)        Ba2        1,677,938  
 

Total Consumer Finance

                               5,407,595  
      Diversified Financial Services – 4.8%  
  905    

American AgCredit Corp, 144A

    5.250%        N/A (3)        BB+        923,100  
  1,025    

Capital Farm Credit ACA, 144A

    5.000%        N/A (3)        BB        1,050,625  
  2,000    

Compeer Financial ACA, 144A, (5)

    6.750%        N/A (3)        BB+        2,080,000  
  250    

Compeer Financial ACA, 144A

    4.875%        N/A (3)        BB+        253,750  
  1,130    

Equitable Holdings Inc

    4.950%        N/A (3)        BBB-        1,161,075  
  2,360    

Voya Financial Inc

    6.125%        N/A (3)        BBB-        2,442,600  
 

Total Diversified Financial Services

                               7,911,150  
      Electric Utilities – 4.1%  
  475    

American Electric Power Co Inc

    3.875%        2/15/62        BBB-        465,948  
  475    

Edison International

    5.000%        N/A (3)        BB+        473,185  
  280    

Edison International

    5.375%        N/A (3)        BB+        284,025  
  1,170    

Electricite de France SA, 144A

    5.250%        N/A (3)        Baa3        1,189,012  
  3,320    

Emera Inc

    6.750%        6/15/76        BB+        3,743,300  
  515    

Southern Co/The

    4.000%        1/15/51        BBB-        518,868  
 

Total Electric Utilities

                               6,674,338  
      Food Products – 5.5%  
  2,005    

Dairy Farmers of America Inc, 144A

    7.125%        N/A (3)        BB+        2,090,212  
  2,120    

Land O’ Lakes Inc, 144A

    7.250%        N/A (3)        BB        2,284,300  
  1,550    

Land O’ Lakes Inc, 144A

    8.000%        N/A (3)        BB        1,664,313  
  2,775    

Land O’ Lakes Inc, 144A

    7.000%        N/A (3)        BB        2,941,500  
 

Total Food Products

                               8,980,325  
      Independent Power & Renewable Electricity Producers – 0.8%  
  355    

AES Andes SA, 144A

    7.125%        3/26/79        BB        363,005  
  725    

AES Andes SA, 144A

    6.350%        10/07/79        BB        737,467  
  290    

Vistra Corp, 144A

    7.000%        N/A (3)        Ba3        288,550  
 

Total Independent Power & Renewable Electricity Producers

                               1,389,022  
      Industrial Conglomerates – 1.5%  
  2,442    

General Electric Co, (3-Month LIBOR reference rate + 3.330%
spread), (6)

    3.533%        N/A (3)        BBB-        2,387,055  
      Insurance – 21.5%  
  780    

Aegon NV

    5.500%        4/11/48        BBB        877,208  
  1,530    

American International Group Inc

    5.750%        4/01/48        BBB-        1,668,572  
  3,125    

Assurant Inc

    7.000%        3/27/48        BB+        3,539,063  
  4,890    

Assured Guaranty Municipal Holdings Inc, 144A

    6.400%        12/15/66        BBB+        5,370,586  
  1,500    

AXA SA

    8.600%        12/15/30        BBB+        2,100,753  
  1,305    

AXIS Specialty Finance LLC

    4.900%        1/15/40        BBB        1,359,562  
  970    

Enstar Finance LLC

    5.750%        9/01/40        BB+        1,003,921  
  375    

Enstar Finance LLC

    5.500%        1/15/42        BB+        369,795  
  225    

Legal & General Group PLC, Reg S

    5.250%        3/21/47        A3        239,288  
  3,355    

Markel Corp

    6.000%        N/A (3)        BBB-        3,581,463  
  1,900    

MetLife Inc, 144A

    9.250%        4/08/38        BBB        2,807,816  
  1,205    

MetLife Inc

    5.875%        N/A (3)        BBB        1,329,409  
  770    

PartnerRe Finance B LLC

    4.500%        10/01/50        Baa1        788,988  
  1,670    

Provident Financing Trust I

    7.405%        3/15/38        BB+        2,041,575  
  305    

Prudential Financial Inc

    3.700%        10/01/50        BBB+        298,573  
  2,840    

QBE Insurance Group Ltd, 144A

    7.500%        11/24/43        Baa1        3,074,300  
  618    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        671,327  
  940    

QBE Insurance Group Ltd, 144A

    5.875%        N/A (3)        Baa2        994,050  

 

48


  
  
  

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Industrial Conglomerates (continued)  
$ 740    

SBL Holdings Inc, 144A

    6.500%        N/A (3)        BB      $ 703,000  
  2,490    

SBL Holdings Inc, 144A

    7.000%        N/A (3)        BB        2,452,650  
 

Total Insurance

                               35,271,899  
      Multi-Utilities – 2.9%  
  485    

Algonquin Power & Utilities Corp

    4.750%        1/18/82        BB+        479,193  
  2,040    

CenterPoint Energy Inc

    6.125%        N/A (3)        BBB-        2,086,124  
  215    

CMS Energy Corp

    4.750%        6/01/50        BBB-        227,298  
  304    

NiSource Inc

    5.650%        N/A (3)        BBB-        309,320  
  690    

Sempra Energy

    4.125%        4/01/52        BBB-        671,786  
  930    

Sempra Energy

    4.875%        N/A (3)        BBB-        972,734  
 

Total Multi-Utilities

                               4,746,455  
      Oil, Gas & Consumable Fuels – 3.3%  
  1,140    

Enbridge Inc

    6.000%        1/15/77        BBB-        1,209,693  
  185    

Enbridge Inc

    5.500%        7/15/77        BBB-        188,732  
  1,380    

Enbridge Inc

    5.750%        7/15/80        BBB-        1,511,100  
  465    

Energy Transfer LP

    6.500%        N/A (3)        BB        475,607  
  1,465    

MPLX LP

    6.875%        N/A (3)        BB+        1,457,675  
  498    

Transcanada Trust

    5.500%        9/15/79        BBB        522,900  
 

Total Oil, Gas & Consumable Fuels

                               5,365,707  
      Trading Companies & Distributors – 3.9%  
  3,850    

AerCap Global Aviation Trust, 144A

    6.500%        6/15/45        BB+        4,121,309  
  1,705    

AerCap Holdings NV

    5.875%        10/10/79        BB+        1,729,723  
  580    

Air Lease Corp

    4.650%        N/A (3)        BB+        584,478  
 

Total Trading Companies & Distributors

                               6,435,510  
      U.S. Agency – 0.4%  
  615    

Farm Credit Bank of Texas, 144A

    6.200%        N/A (3)        BBB+        659,587  
      Wireless Telecommunication Services – 1.2%                           
  1,655    

Vodafone Group PLC

    7.000%        4/04/79        BB+        1,902,186  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $147,817,654)

                               153,532,794  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 32.6% (25.4% of Total Investments)

 

     
      Banks – 8.6%                           
  16,050    

CoBank ACB, (4)

    6.250%           BBB+      $ 1,665,990  
  34,640    

CoBank ACB, (4)

    6.200%           BBB+        3,732,460  
  15,000    

Farm Credit Bank of Texas, 144A, (4)

    6.750%           Baa1        1,545,000  
  49,966    

Fifth Third Bancorp

    6.625%           Baa3        1,369,568  
  14,200    

KeyCorp

    6.125%           Baa3        408,250  
  99,200    

Regions Financial Corp

    6.375%           BB+        2,781,568  
  14,300    

Regions Financial Corp

    5.700%           BB+        380,809  
  25,994    

Synovus Financial Corp

    5.875%           BB-        694,560  
  16,400    

Wells Fargo & Co

    4.750%           Baa2        407,376  
  12,300    

Western Alliance Bancorp

    4.250%           Ba1        310,206  
  30,483    

Wintrust Financial Corp

    6.875%                 BB        845,293  
 

Total Banks

                               14,141,080  
      Capital Markets – 3.3%  
  7,777    

Goldman Sachs Group Inc/The

    5.500%           BB+        203,524  
  42,974    

Morgan Stanley

    7.125%           Baa3        1,163,736  
  69,451    

Morgan Stanley

    6.875%           Baa3        1,883,511  
  54,400    

Morgan Stanley

    5.850%           Baa3        1,501,440  
  23,100    

Morgan Stanley

    6.375%                 Baa3        629,706  
 

Total Capital Markets

                               5,381,917  

 

49


JPT    Nuveen Preferred and Income Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Consumer Finance – 0.3%  
  19,400    

Synchrony Financial

    5.625%                 BB-      $ 504,206  
      Diversified Financial Services – 4.0%                           
  32,213    

AgriBank FCB, (4)

    6.875%           BBB+        3,430,684  
  26,200    

Equitable Holdings Inc

    5.250%           BBB-        671,506  
  85,923    

Voya Financial Inc

    5.350%                 BBB-        2,461,694  
 

Total Diversified Financial Services

                               6,563,884  
      Diversified Telecommunication Services – 0.2%                           
  14,000    

AT&T Inc

    4.750%                 BBB-        343,980  
      Food Products – 3.6%                           
  26,859    

CHS Inc

    7.875%           N/R        738,623  
  68,707    

CHS Inc

    7.100%           N/R        1,879,136  
  31,132    

CHS Inc

    6.750%           N/R        848,036  
  81,867    

CHS Inc

    7.500%                 N/R        2,333,209  
 

Total Food Products

                               5,799,004  
      Insurance – 8.2%  
  63,100    

American Equity Investment Life Holding Co

    5.950%           BB        1,691,080  
  42,800    

American Equity Investment Life Holding Co

    6.625%           BB        1,177,000  
  71,888    

Aspen Insurance Holdings Ltd

    5.950%           BB+        1,940,257  
  74,900    

Aspen Insurance Holdings Ltd

    5.625%           BB+        1,918,938  
  12,000    

Assurant Inc

    5.250%           BB+        305,280  
  82,700    

Athene Holding Ltd

    6.350%           BBB        2,299,887  
  41,700    

Athene Holding Ltd

    6.375%           BBB        1,131,321  
  33,000    

Enstar Group Ltd

    7.000%           BB+        923,010  
  50,002    

Reinsurance Group of America Inc

    5.750%           BBB+        1,439,058  
  28,300    

Selective Insurance Group Inc

    4.600%                 BBB-        676,370  
 

Total Insurance

                               13,502,201  
      Oil, Gas & Consumable Fuels – 2.4%  
  8,300    

Energy Transfer LP

    7.600%           BB        206,670  
  100,334    

NuStar Energy LP

    6.969%           B2        2,469,220  
  46,222    

NuStar Energy LP

    7.625%           B2        1,015,960  
  10,020    

NuStar Logistics LP

    6.975%                 B        252,604  
 

Total Oil, Gas & Consumable Fuels

                               3,944,454  
      Thrifts & Mortgage Finance – 1.5%  
  86,431    

New York Community Bancorp Inc

    6.375%                 Ba2        2,395,003  
      Trading Companies & Distributors – 0.5%                           
  32,771    

Air Lease Corp

    6.150%                 BB+        859,911  
 

Total $25 Par (or similar) Retail Preferred (cost $52,126,466)

                               53,435,640  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 1.3% (1.0% of Total Investments)

 

     
      Banks – 0.7%                           
$ 1,000    

Commerzbank AG, 144A

    8.125%        9/19/23        Baa3      $ 1,086,230  
      Insurance – 0.6%                           
  980    

Fidelis Insurance Holdings Ltd, 144A

    6.625%        4/01/41        BB+        1,026,550  
$ 1,980    

Total Corporate Bonds (cost $2,022,192)

                               2,112,780  
 

Total Long-Term Investments (cost $201,966,312)

                               209,081,214  

 

50


  
  
  

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
 

SHORT-TERM INVESTMENTS – 0.4% (0.4% of Total Investments)

          
      REPURCHASE AGREEMENTS – 0.4% (0.4% of Total Investments)                           
$ 735    

Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/22, repurchase price $734,872, collateralized by $561,200, U.S. Treasury Government Bond, 4.250%, due 11/15/40, value $749,640

    0.000%        2/01/22               $ 734,872  
 

Total Short-Term Investments (cost $734,872)

                               734,872  
 

Total Investments (cost $202,701,184) – 127.9%

 

              209,816,086  
 

Borrowings – (28.7)% (7), (8)

 

              (47,000,000
 

Other Assets Less Liabilities – 0.8% (9)

 

              1,209,389  
 

Net Assets Applicable to Common Shares – 100%

 

            $ 164,025,475  

Investments in Derivatives

Futures Contracts – Short

 

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

U.S. Treasury 10-Year Note

     (48      3/22      $ (6,215,539    $ (6,142,500    $ 73,039      $ (750

 

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)

For fair value measurement disclosure purposes, investment classified as Level 2.

 

(5)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

 

(6)

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

 

(7)

Borrowings as a percentage of Total Investments is 22.4%.

 

(8)

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

 

(9)

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

 

N/A

Not Applicable

 

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.

 

51


NPFD   

Nuveen Variable Rate Preferred &
Income Fund

 

Portfolio of Investments    January 31, 2022

     (Unaudited)

 

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

LONG-TERM INVESTMENTS – 148.9% ( 99.7% of Total Investments)

 

     
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 94.1% (63.0% of Total Investments)

 

     
 

Automobiles – 4.1%

 

     
$ 10,000    

General Motors Financial Co Inc

    5.700%        N/A (3)        BB+      $ 11,238,000  
  12,331    

General Motors Financial Co Inc, (4)

    5.750%        N/A (3)        BB+        13,012,904  
 

Total Automobiles

                               24,250,904  
      Banks – 40.9%                           
  10,000    

Bank of America Corp

    4.375%        N/A (3)        BBB+        9,876,000  
  7,810    

Bank of America Corp

    6.250%        N/A (3)        BBB+        8,278,600  
  5,000    

Bank of America Corp

    6.500%        N/A (3)        BBB+        5,381,000  
  3,000    

Bank of America Corp

    6.300%        N/A (3)        BBB+        3,285,000  
  2,219    

Bank of America Corp, (4)

    6.100%        N/A (3)        BBB+        2,391,882  
  2,377    

Citigroup Inc

    4.150%        N/A (3)        BBB-        2,319,286  
  2,875    

Citigroup Inc

    6.250%        N/A (3)        BBB-        3,176,875  
  8,000    

Citigroup Inc

    5.000%        N/A (3)        BBB-        8,089,120  
  3,375    

Citigroup Inc

    5.950%        N/A (3)        BBB-        3,560,625  
  23,995    

Citigroup Inc, (4)

    6.300%        N/A (3)        BBB-        24,674,059  
  5,560    

Citizens Financial Group Inc

    4.000%        N/A (3)        BB+        5,455,750  
  2,500    

Citizens Financial Group Inc

    6.375%        N/A (3)        BB+        2,562,500  
  5,095    

Fifth Third Bancorp, (4)

    4.500%        N/A (3)        Baa3        5,247,850  
  5,600    

First Citizens BancShares Inc/NC

    5.800%        N/A (3)        N/R        5,810,000  
  2,700    

Goldman Sachs Group Inc/The, (4)

    3.800%        N/A (3)        BBB-        2,596,833  
  5,190    

HSBC Capital Funding Dollar 1 LP, 144A

    10.176%        N/A (3)        BBB        8,407,800  
  9,000    

Huntington Bancshares Inc/OH

    5.625%        N/A (3)        Baa3        10,104,480  
  5,000    

JPMorgan Chase & Co

    6.100%        N/A (3)        BBB+        5,306,250  
  16,250    

JPMorgan Chase & Co

    6.750%        N/A (3)        BBB+        17,398,875  
  7,500    

JPMorgan Chase & Co

    3.650%        N/A (3)        BBB+        7,210,275  
  8,130    

JPMorgan Chase & Co

    5.000%        N/A (3)        BBB+        8,272,275  
  4,789    

KeyCorp

    5.000%        N/A (3)        Baa3        5,040,423  
  2,020    

M&T Bank Corp

    3.500%        N/A (3)        Baa2        1,899,022  
  6,000    

M&T Bank Corp

    5.125%        N/A (3)        Baa2        6,376,111  
  4,134    

PNC Financial Services Group Inc/The

    5.000%        N/A (3)        Baa2        4,299,360  
  1,755    

PNC Financial Services Group Inc/The

    3.400%        N/A (3)        Baa2        1,654,070  
  2,820    

Regions Financial Corp

    5.750%        N/A (3)        BB+        3,031,754  
  4,470    

SVB Financial Group

    4.700%        N/A (3)        Baa2        4,437,369  
  4,000    

SVB Financial Group

    4.000%        N/A (3)        Baa2        3,887,880  
  14,368    

Truist Financial Corp

    4.800%        N/A (3)        Baa2        14,655,360  
  8,195    

Truist Financial Corp

    5.100%        N/A (3)        Baa2        8,891,575  
  2,970    

Truist Financial Corp, (4)

    5.050%        N/A (3)        Baa2        2,940,300  
  19,208    

Wells Fargo & Co, (4)

    3.900%        N/A (3)        Baa2        19,024,564  
  9,429    

Wells Fargo & Co

    5.875%        N/A (3)        Baa2        10,080,072  
  4,000    

Wells Fargo & Co

    5.900%        N/A (3)        Baa2        4,100,000  
  1,200    

Zions Bancorp NA

    7.200%        N/A (3)        BB+        1,269,792  
 

Total Banks

                               240,992,987  
      Capital Markets – 6.9%                           
  2,405    

Bank of New York Mellon Corp/The, (4)

    4.700%        N/A (3)        Baa1        2,534,269  
  3,000    

Charles Schwab Corp/The

    4.000%        N/A (3)        BBB        2,963,790  
  11,373    

Charles Schwab Corp/The

    5.375%        N/A (3)        BBB        12,214,602  
  7,045    

Goldman Sachs Group Inc/The

    5.500%        N/A (3)        BBB-        7,389,148  
  9,200    

Goldman Sachs Group Inc/The

    4.125%        N/A (3)        BBB-        8,981,500  
  5,890    

Goldman Sachs Group Inc/The, (4)

    5.300%        N/A (3)        BBB-        6,317,025  
 

Total Capital Markets

                               40,400,334  
      Communications Equipment – 0.6%                           
  3,520    

Vodafone Group PLC

    4.125%        6/04/81        BB+        3,352,870  

 

52


  
  
  

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Consumer Finance – 4.5%                           
$ 5,500    

Ally Financial Inc

    4.700%        N/A (3)        Ba2      $ 5,437,575  
  4,200    

Ally Financial Inc

    4.700%        N/A (3)        Ba2        4,158,000  
  6,000    

American Express Co, (4)

    3.550%        N/A (3)        Baa2        5,745,000  
  4,705    

Capital One Financial Corp

    3.950%        N/A (3)        Baa3        4,599,137  
  2,745    

Discover Financial Services

    6.125%        N/A (3)        Ba2        2,962,020  
  3,690    

Discover Financial Services

    5.500%        N/A (3)        Ba2        3,837,600  
 

Total Consumer Finance

                               26,739,332  
      Diversified Financial Services – 1.1%                           
  1,850    

Equitable Holdings Inc

    4.950%        N/A (3)        BBB-        1,900,875  
  4,352    

Voya Financial Inc

    6.125%        N/A (3)        BBB-        4,504,320  
 

Total Diversified Financial Services

                               6,405,195  
      Electric Utilities – 5.0%                           
  2,600    

American Electric Power Co Inc

    3.875%        2/15/62        BBB-        2,550,450  
  4,150    

Edison International

    5.000%        N/A (3)        BB+        4,134,147  
  1,740    

Edison International

    5.375%        N/A (3)        BB+        1,765,013  
  2,000    

Electricite de France SA, 144A

    5.250%        N/A (3)        Baa3        2,032,500  
  14,093    

Emera Inc, (4)

    6.750%        6/15/76        BB+        15,889,857  
  3,000    

Southern Co/The

    4.000%        1/15/51        BBB-        3,022,530  
 

Total Electric Utilities

                               29,394,497  
      Independent Power & Renewable Electricity Producers – 1.3%                           
  2,685    

AES Andes SA, 144A

    7.125%        3/26/79        BB        2,745,547  
  1,700    

AES Andes SA, 144A

    6.350%        10/07/79        BB        1,729,231  
  3,500    

Vistra Corp, 144A

    7.000%        N/A (3)        Ba3        3,482,500  
 

Total Independent Power & Renewable Electricity Producers

                               7,957,278  
      Industrial Conglomerates – 2.1%                           
  12,700    

General Electric Co, (3-Month LIBOR reference rate + 3.330% spread), (4), (5)

    3.533%        N/A (3)        BBB-        12,414,250  
      Insurance – 13.0%                           
  2,595    

Aegon NV

    5.500%        4/11/48        BBB        2,918,402  
  2,750    

American International Group Inc, (4)

    5.750%        4/01/48        BBB-        2,999,068  
  2,500    

Assurant Inc

    7.000%        3/27/48        BB+        2,831,250  
  3,050    

AXIS Specialty Finance LLC

    4.900%        1/15/40        BBB        3,177,521  
  1,000    

Enstar Finance LLC

    5.750%        9/01/40        BB+        1,034,970  
  7,115    

Enstar Finance LLC

    5.500%        1/15/42        BB+        7,016,246  
  1,530    

Legal & General Group PLC, Reg S

    5.250%        3/21/47        A3        1,627,155  
  10,345    

Markel Corp, (4)

    6.000%        N/A (3)        BBB-        11,043,287  
  8,000    

MetLife Inc, (4)

    5.875%        N/A (3)        BBB        8,825,952  
  945    

Prudential Financial Inc

    3.700%        10/01/50        BBB+        925,087  
  9,205    

QBE Insurance Group Ltd, 144A, (4)

    7.500%        11/24/43        Baa1        9,964,413  
  3,875    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        4,209,374  
  1,600    

QBE Insurance Group Ltd, 144A

    5.875%        N/A (3)        Baa2        1,692,000  
  3,915    

SBL Holdings Inc, 144A

    6.500%        N/A (3)        BB        3,719,250  
  14,500    

SBL Holdings Inc, 144A

    7.000%        N/A (3)        BB        14,282,500  
 

Total Insurance

                               76,266,475  
      Multi-Utilities – 4.0%                           
  6,115    

Algonquin Power & Utilities Corp

    4.750%        1/18/82        BB+        6,041,780  
  8,050    

CenterPoint Energy Inc

    6.125%        N/A (3)        BBB-        8,232,011  
  2,500    

CMS Energy Corp

    4.750%        6/01/50        BBB-        2,643,000  
  3,400    

Sempra Energy

    4.125%        4/01/52        BBB-        3,310,252  
  3,210    

Sempra Energy, (4)

    4.875%        N/A (3)        BBB-        3,357,500  
 

Total Multi-Utilities

                               23,584,543  
      Oil, Gas & Consumable Fuels – 4.9%                           
  3,000    

Enbridge Inc

    6.000%        1/15/77        BBB-        3,183,404  
  13,546    

Enbridge Inc

    5.500%        7/15/77        BBB-        13,819,253  

 

53


NPFD    Nuveen Variable Rate Preferred & Income Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity     Ratings (2)      Value  
      Oil, Gas & Consumable Fuels (continued)                          
$ 7,000    

Energy Transfer LP, (4)

    6.500%        N/A (3)       BB      $ 7,159,670  
  2,730    

MPLX LP

    6.875%        N/A (3)       BB+        2,716,350  
  2,000    

Transcanada Trust

    5.500%        9/15/79       BBB        2,100,000  
 

Total Oil, Gas & Consumable Fuels

                              28,978,677  
      Trading Companies & Distributors – 4.7%                          
  2,210    

AerCap Global Aviation Trust, 144A

    6.500%        6/15/45       BB+        2,365,739  
  16,900    

AerCap Holdings NV

    5.875%        10/10/79       BB+        17,145,050  
  4,841    

Air Lease Corp

    4.650%        N/A (3)      BB+        4,878,373  
  3,673    

ILFC E-Capital Trust I, 144A

    3.370%        12/21/65       B+        3,057,772  
 

Total Trading Companies & Distributors

                              27,446,934  
      Wireless Telecommunication Services – 1.0%                          
  5,000    

Vodafone Group PLC

    7.000%        4/04/79       BB+        5,746,786  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $564,237,308)

                              553,931,062  
Principal
Amount (000)
    Description (1)   Coupon      Maturity     Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 30.6% (20.5% of Total Investments) (6)

 

    
 

Banks – 22.8%

 

    
$ 1,000    

Australia & New Zealand Banking Group Ltd/United Kingdom, 144A, (4)

    6.750%        N/A (3)       Baa2      $ 1,115,000  
  2,200    

Banco Bilbao Vizcaya Argentaria SA

    6.125%        N/A (3)       Ba2        2,257,750  
  3,200    

Banco Bilbao Vizcaya Argentaria SA

    6.500%        N/A (3)       Ba2        3,324,000  
  715    

Banco Mercantil del Norte SA/Grand Cayman, 144A

    7.500%        N/A (3)       Ba2        727,513  
  1,595    

Banco Mercantil del Norte SA/Grand Cayman, 144A

    7.625%        N/A (3)       Ba2        1,629,165  
  4,000    

Banco Santander SA, Reg S

    7.500%        N/A (3)       Ba1        4,249,360  
  3,000    

Banco Santander SA

    4.750%        N/A (3)       Ba1        2,883,000  
  9,588    

Barclays PLC

    7.750%        N/A (3)       BBB-        10,187,250  
  3,800    

Barclays PLC

    6.125%        N/A (3)       BBB-        4,041,110  
  3,200    

Barclays PLC, (4)

    4.375%        N/A (3)       BBB-        3,021,120  
  2,089    

BNP Paribas SA, 144A

    7.000%        N/A (3)       BBB        2,365,792  
  10,000    

BNP Paribas SA, 144A

    6.625%        N/A (3)       BBB        10,547,000  
  1,090    

Credit Agricole SA, 144A

    4.750%        N/A (3)       BBB        1,069,562  
  3,500    

Credit Agricole SA, 144A, (4)

    7.875%        N/A (3)       BBB        3,793,125  
  5,800    

Credit Agricole SA, 144A, (4)

    8.125%        N/A (3)       BBB        6,709,150  
  1,350    

Danske Bank A/S, Reg S

    4.375%        N/A (3)       BBB-        1,302,750  
  2,700    

Danske Bank A/S, Reg S

    7.000%        N/A (3)       BBB-        2,897,424  
  2,150    

HSBC Holdings PLC, (4)

    6.375%        N/A (3)       BBB        2,257,500  
  8,000    

HSBC Holdings PLC

    6.375%        N/A (3)       BBB        8,457,760  
  6,650    

HSBC Holdings PLC, (4)

    6.000%        N/A (3)       BBB        7,019,939  
  7,521    

ING Groep NV, Reg S

    6.750%        N/A (3)       BBB        8,000,464  
  5,818    

Intesa Sanpaolo SpA, 144A

    7.700%        N/A (3)       BB-        6,385,255  
  2,000    

Lloyds Banking Group PLC

    7.500%        N/A (3)       Baa3        2,170,360  
  9,185    

Lloyds Banking Group PLC

    6.750%        N/A (3)       Baa3        10,092,019  
  1,500    

Macquarie Bank Ltd/London, 144A

    6.125%        N/A (3)       BB+        1,569,375  
  7,000    

NatWest Group PLC, (4)

    8.000%        N/A (3)       BBB-        7,883,750  
  2,100    

Nordea Bank Abp, 144A, (4)

    6.625%        N/A (3)       BBB+        2,329,698  
  5,000    

Societe Generale SA, 144A, (4)

    8.000%        N/A (3)       BB        5,646,550  
  1,500    

Societe Generale SA, 144A, (4)

    4.750%        N/A (3)       BB+        1,481,865  
  850    

Standard Chartered PLC, 144A

    4.300%        N/A (3)       BBB-        794,750  
  950    

Standard Chartered PLC, 144A

    7.500%        N/A (3)       BBB-        957,125  
  1,700    

Standard Chartered PLC, 144A, (4)

    7.750%        N/A (3)       BBB-        1,789,114  
  1,500    

Standard Chartered PLC, 144A

    6.000%        N/A (3)       BBB-        1,567,500  
  3,500    

UniCredit SpA, Reg S

    8.000%        N/A (3)       BB-        3,788,750  
  125,751    

Total Banks

                              134,311,845  
      Capital Markets – 7.8%                          
  5,850    

Credit Suisse Group AG, 144A

    6.375%        N/A (3)       BB+        6,105,938  
  2,100    

Credit Suisse Group AG, 144A, (4)

    7.500%        N/A (3)       BB+        2,238,054  
  10,904    

Credit Suisse Group AG, 144A

    7.500%        N/A (3)       BB+        11,347,139  

 

54


  
  
  

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Capital Markets (continued)                           
$ 6,800    

Deutsche Bank AG, (4)

    6.000%        N/A (3)        BB-      $ 6,851,000  
  400    

UBS Group AG, Reg S

    5.125%        N/A (3)        BBB        413,038  
  11,500    

UBS Group AG, Reg S

    6.875%        N/A (3)        BBB        12,491,231  
  6,600    

UBS Group AG, 144A

    4.875%        N/A (3)        BBB        6,590,760  
  44,154    

Total Capital Markets

                               46,037,160  
  169,905    

Total Contingent Capital Securities (cost $183,791,447)

                               180,349,005  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 24.2% (16.2% of Total Investments)

 

      Banks – 3.9%  
  2,500    

CoBank ACB, (7)

    6.250%           BBB+      $ 259,500  
  121,601    

Fifth Third Bancorp

    6.625%           Baa3        3,333,083  
  62,700    

KeyCorp

    6.125%           Baa3        1,802,625  
  88,880    

PNC Financial Services Group Inc/The

    6.125%           Baa2        2,250,442  
  168,058    

Regions Financial Corp

    6.375%           BB+        4,712,346  
  163,723    

Regions Financial Corp

    5.700%           BB+        4,359,944  
  136,600    

Synovus Financial Corp

    5.875%           BB-        3,649,952  
  99,600    

Wintrust Financial Corp

    6.875%                 BB        2,761,909  
 

Total Banks

                               23,129,801  
      Capital Markets – 4.2%  
  51,400    

Goldman Sachs Group Inc/The

    5.500%           BB+        1,345,138  
  166,500    

Morgan Stanley

    7.125%           Baa3        4,508,820  
  122,400    

Morgan Stanley

    6.875%           Baa3        3,319,488  
  433,584    

Morgan Stanley

    5.850%           Baa3        11,966,918  
  122,800    

Morgan Stanley

    6.375%                 Baa3        3,347,528  
 

Total Capital Markets

                               24,487,892  
      Diversified Financial Services – 1.3%  
  261,000    

Voya Financial Inc

    5.350%                 BBB-        7,477,650  
      Food Products – 2.2%                           
  315,300    

CHS Inc

    7.100%           N/R        8,623,455  
  157,200    

CHS Inc

    6.750%                 N/R        4,282,128  
 

Total Food Products

                               12,905,583  
      Insurance – 7.4%                           
  310,550    

American Equity Investment Life Holding Co

    5.950%           BB        8,322,740  
  180,150    

American Equity Investment Life Holding Co

    6.625%           BB        4,954,125  
  340,200    

Aspen Insurance Holdings Ltd

    5.950%           BB+        9,181,998  
  194,775    

Athene Holding Ltd

    6.350%           BBB        5,416,693  
  166,250    

Athene Holding Ltd

    6.375%           BBB        4,510,362  
  131,900    

Enstar Group Ltd

    7.000%           BB+        3,689,243  
  77,800    

Reinsurance Group of America Inc

    6.200%           BBB+        2,011,130  
  188,600    

Reinsurance Group of America Inc

    5.750%                 BBB+        5,427,908  
 

Total Insurance

                               43,514,199  
      Multi-Utilities – 0.2%                           
  31,600    

NiSource Inc

    6.500%                 BBB-        855,412  
      Oil, Gas & Consumable Fuels – 2.6%                           
  51,100    

Energy Transfer LP

    7.600%           BB        1,272,390  
  176,668    

NuStar Energy LP

    6.969%           B2        4,347,799  
  271,200    

NuStar Energy LP

    7.625%           B2        5,960,976  
  154,289    

NuStar Logistics LP

    6.975%                 B        3,889,626  
 

Total Oil, Gas & Consumable Fuels

                               15,470,791  

 

55


NPFD    Nuveen Variable Rate Preferred & Income Fund (continued)
   Portfolio of Investments    January 31, 2022
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Thrifts & Mortgage Finance – 1.7%  
  126,356    

Federal Agricultural Mortgage Corp

    6.000%           N/R      $ 3,382,550  
  243,300    

New York Community Bancorp Inc

    6.375%                 Ba2        6,741,843  
 

Total Thrifts & Mortgage Finance

                               10,124,393  
      Trading Companies & Distributors – 0.7%                           
  164,687    

Air Lease Corp

    6.150%                 BB+        4,321,387  
 

Total $25 Par (or similar) Retail Preferred (cost $145,599,202)

                               142,287,108  
       

Total Long-Term Investments (cost $893,627,957)

                               876,567,175  
Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
      SHORT-TERM INVESTMENTS – 0.5% (0.3% of Total Investments)                           
      REPURCHASE AGREEMENTS – 0.5% (0.3% of Total Investments)                           
$ 2,956    

Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/22, repurchase price $2,955,596, collateralized by $2,607,700, U.S. Treasury Inflation Index Note, 0.125%, due 4/15/22, value $3,014,799

    0.000%        2/01/22               $ 2,955,596  
  2,956    

Total Short-Term Investments (cost $2,955,596)

                               2,955,596  
 

Total Investments (cost $896,583,553) – 149.4%

                               879,522,771  
 

Borrowings – (32.8)% (8), (9)

                               (193,200,000
 

Reverse Repurchase Agreements, including accrued interest – (19.9)% (10)

 

              (116,866,545
 

Other Assets Less Liabilities – 3.3%

 

              19,145,629  
 

Net Assets Applicable to Common Shares – 100%

 

            $ 588,601,855  

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)

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 $158,060,930 have been pledged as collateral for reverse repurchase agreements.

 

(5)

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

 

(6)

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.

 

(7)

For fair value measurement disclosure purposes, investment classified as Level 2.

 

(8)

Borrowings as a percentage of Total Investments is 22.0%.

 

(9)

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 $382,401,582 have been pledged as collateral for borrowings.

 

(10)

Reverse Repurchase Agreements, including accrued interest as a percentage of Total Investments is 13.3%.

 

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

 

N/A

Not Applicable

 

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.

 

56


Statement of Assets and Liabilities

January 31, 2022

(Unaudited)

 

     JPC        JPI        JPS        JPT        NPFD  

Assets

                     

Long-term investments, at value (cost $1,510,751,782,  $803,904,019, $2,891,215,923, $201,966,312 and $893,627,957, respectively)

  $ 1,582,174,596        $ 846,589,271        $ 3,064,208,083        $ 209,081,214        $ 876,567,175  

Short-term investments, at value (cost approximates value)

    15,251,018          972,728          21,512,581          734,872          2,955,596  

Cash

    423,337          485,806          518,484                    

Cash collateral at brokers for investments in futures(1)

    464,992          437,993                   75,025           

Receivable for:

                     

Dividends

    185,305          78,075          938,467          15,866          100,268  

Interest

    17,604,081          9,962,828          36,077,251          2,075,137          9,602,531  

Investments sold

    1,184,264          1,148,064                   112,836           

Reclaims

    49,905                                     55,084  

Shares sold

                                        29,003,525  

Deferred offering costs

    187,362                   198,422                    

Other assets

    407,266          96,679          790,511          382           

Total assets

    1,617,932,126          859,771,444          3,124,243,799          212,095,332          918,284,179  

Liabilities

                     

Borrowings

    473,400,000          236,000,000          873,300,000          47,000,000          193,200,000  

Reverse repurchase agreements, including accrued interest

    124,670,820          65,110,466          275,377,653                   116,866,545  

Unrealized depreciation on interest rate swaps

    11,779,796          3,220,193          22,109,686                    

Payable for:

                     

Dividends

    5,461,375          2,939,035          10,281,681          793,774           

Investments purchased – regular settlement

                                        18,864,374  

Variation margin on futures contracts

    4,844          4,563                   750           

Accrued expenses:

                     

Interest

    349,570          173,871          645,553          36,966          91,831  

Management fees

    1,103,341          616,429          2,102,645          154,540          588,589  

Trustees fees

    423,705          80,234          812,136          1,856          3,348  

Shelf offering costs

    44,304                   41,851                    

Other

    359,975          211,079          575,145          81,971          67,637  

Total liabilities

    617,597,730          308,355,870          1,185,246,350          48,069,857          329,682,324  

Net assets applicable to common shares

  $ 1,000,334,396        $ 551,415,574        $ 1,938,997,449        $ 164,025,475        $ 588,601,855  

Common shares outstanding

    105,069,232          22,772,419          205,710,932          6,846,241          24,164,141  

Net asset value (“NAV”) per common share outstanding

  $ 9.52        $ 24.21        $ 9.43        $ 23.96        $ 24.36  

Net assets applicable to common shares consist of:

                                                   

Common shares, $0.01 par value per share

  $ 1,050,692        $ 227,724        $ 2,057,109        $ 68,462        $ 241,641  

Paid-in-surplus

    1,049,253,894          537,875,527          1,877,845,371          168,137,722          603,861,884  

Total distributable earnings (loss)

    (49,970,190        13,312,323          59,094,969          (4,180,709        (15,501,670

Net assets applicable to common shares

  $ 1,000,334,396        $ 551,415,574        $ 1,938,997,449        $ 164,025,475        $ 588,601,855  

Authorized shares:

                     

Common

    Unlimited          Unlimited          Unlimited          Unlimited          Unlimited  

Preferred

    Unlimited          Unlimited          Unlimited          Unlimited          Unlimited  
(1)

Cash pledged to collateralize the net payment obligations for investments in derivatives is in addition to the Fund’s securities pledged as collateral as noted in the Portfolio of Investments.

 

 

See accompanying notes to financial statements.

 

57


Statement of Operations

Six Months Ended January 31, 2022

(Unaudited)

 

      JPC        JPI        JPS        JPT        NPFD(1)  

Investment Income

                      

Dividends

   $ 12,486,600        $ 5,281,922        $ 11,284,227        $ 1,773,065        $ 487,448  

Interest

     30,963,540          18,302,575          68,497,071          3,801,919          2,120,943  

Rehypothecation income

     8,226          19,640          72,309                    

Total investment income

     43,458,366          23,604,137          79,853,607          5,574,984          2,608,391  

Expenses

                      

Management fees

     6,569,425          3,688,975          12,615,361          928,436          735,476  

Interest expense

     2,529,725          1,287,689          4,875,534          209,906          160,297  

Custodian fees

     77,521          45,505          125,605          15,085          13,975  

Trustees fees

     23,518          12,681          45,804          3,298          3,348  

Professional fees

     77,544          43,208          134,712          97,531          12,388  

Shareholder reporting expenses

     71,780          34,462          141,035          19,121          36,503  

Shareholder servicing agent fees

     1,376          586          2,877          586          50  

Stock exchange listing fees

     15,189          3,598          29,944          3,583          582  

Investor relations expenses

     13,690          8,178          31,625          2,063          4,414  

Other

     16,767          8,841          20,314          6,392          157  

Total expenses

     9,396,535          5,133,723          18,022,811          1,286,001          967,190  

Net investment income (loss)

     34,061,831          18,470,414          61,830,796          4,288,983          1,641,201  

Realized and Unrealized Gain (Loss)

                      

Net realized gain (loss) from:

                      

Investments and foreign currency

     1,430,942          1,274,176          17,227,038          (7,879        (82,089

Futures contracts

     251,226          235,045                   38,406           

Swaps

     (3,190,088        (1,544,089        (5,992,712                  

Change in net unrealized appreciation (depreciation) of:

                      

Investments and foreign currency

     (56,156,326        (32,829,517        (138,388,893        (7,070,188        (17,060,782

Futures contracts

     1,368,216          1,289,210                   211,590           

Swaps

     15,016,184          4,311,370          28,186,315                    

Net realized and unrealized gain (loss)

     (41,279,846        (27,263,805        (98,968,252        (6,828,071        (17,142,871

Net increase (decrease) in net assets applicable to common shares from operations

   $ (7,218,015      $ (8,793,391      $ (37,137,456      $ (2,539,088      $ (15,501,670
(1)

For the period December 15, 2021 (commencement of operations) through January 31, 2022.

 

See accompanying notes to financial statements.

 

58


Statement of Changes in Net Assets

 

     JPC        JPI  
     

Six Months
Ended
1/31/22
(Unaudited)

      

Year
Ended
7/31/21

      

Six Months
Ended
1/31/22
(Unaudited)

      

Year
Ended
7/31/21

 

Operations

                 

Net investment income (loss)

   $ 34,061,831        $ 69,111,496        $ 18,470,414        $ 37,498,387  

Net realized gain (loss) from:

                 

Investments and foreign currency

     1,430,942          8,606,310          1,274,176          8,849,056  

Futures contracts

     251,226          1,062,326          235,045          976,904  

Swaps

     (3,190,088        (6,217,126        (1,544,089        (2,991,949

Change in net unrealized appreciation (depreciation) of:

                 

Investments and foreign currency

     (56,156,326        90,072,375          (32,829,517        54,551,734  

Futures contracts

     1,368,216          (526,263        1,289,210          (506,715

Swaps

     15,016,184          15,312,751          4,311,370          3,970,105  

Net increase (decrease) in net assets applicable to common shares from operations

     (7,218,015        177,421,869          (8,793,391        102,347,522  

Distributions to Common Shareholders

                 

Dividends

     (33,248,117        (65,752,057        (17,828,635        (35,645,968

Decrease in net assets applicable to common shares from distributions to common shareholders

     (33,248,117        (65,752,057        (17,828,635        (35,645,968

Capital Share Transactions

                 

Common shares:

                 

Proceeds from shelf offering, net of offering costs

     11,703,948          4,757,224                    

Proceeds from sale of shares

                                 

Net proceeds from shares issued to shareholders due to reinvestment of distributions

     382,390          93,796          154,364          122,141  

Net increase (decrease) in net assets applicable to common shares from capital share transactions

     12,086,338          4,851,020          154,364          122,141  

Net increase (decrease) in net assets applicable to common shares

     (28,379,794        116,520,832          (26,467,662        66,823,695  

Net assets applicable to common shares at the beginning of period

   $ 1,028,714,190        $ 912,193,358        $ 577,883,236        $ 511,059,541  

Net assets applicable to common shares at the end of period

   $ 1,000,334,396        $  1,028,714,190        $ 551,415,574        $  577,883,236  

 

See accompanying notes to financial statements.

 

59


Statement of Changes in Net Assets (continued)

 

     JPS        JPT  
     

Six Months
Ended
1/31/22
(Unaudited)

      

Year
Ended
7/31/21

      

Six Months
Ended
1/31/22
(Unaudited)

      

Year
Ended
7/31/21

 

Operations

                 

Net investment income (loss)

   $ 61,830,796        $ 127,664,148        $ 4,288,983        $ 8,952,095  

Net realized gain (loss) from:

                 

Investments and foreign currency

     17,227,038          19,722,013          (7,879        771,145  

Futures contracts

                       38,406          232,378  

Swaps

     (5,992,712        (11,669,868                  

Change in net unrealized appreciation (depreciation) of:

                 

Investments and foreign currency

     (138,388,893        131,150,023          (7,070,188        14,886,835  

Futures contracts

                       211,590          (54,008

Swaps

     28,186,315          28,742,497                    

Net increase (decrease) in net assets applicable to common shares from operations

     (37,137,456        295,608,813          (2,539,088        24,788,445  

Distributions to Common Shareholders

                 

Dividends

     (62,239,284        (123,552,214        (4,867,419        (9,728,671

Decrease in net assets applicable to common shares from distributions to common shareholders

     (62,239,284        (123,552,214        (4,867,419        (9,728,671

Capital Share Transactions

                 

Common shares:

                 

Proceeds from shelf offering, net of offering costs

     9,114,000          9,215,446                    

Proceeds from sale of shares

                                 

Net proceeds from shares issued to shareholders due to reinvestment of distributions

     287,954          466,698          54,398          118,396  

Net increase (decrease) in net assets applicable to common shares from capital share transactions

     9,401,954          9,682,144          54,398          118,396  

Net increase (decrease) in net assets applicable to common shares

     (89,974,786        181,738,743          (7,352,109        15,178,170  

Net assets applicable to common shares at the beginning of period

   $ 2,028,972,235        $ 1,847,233,492        $ 171,377,584        $ 156,199,414  

Net assets applicable to common shares at the end of period

   $ 1,938,997,449        $  2,028,972,235        $ 164,025,475        $  171,377,584  

 

See accompanying notes to financial statements.

 

60


 

     NPFD  
      For the period 12/15/21
(commencement of operations)
through 1/31/22
(Unaudited)
 

Operations

  

Net investment income (loss)

   $ 1,641,201  

Net realized gain (loss) from:

  

Investments and foreign currency

     (82,089

Futures contracts

      

Swaps

      

Change in net unrealized appreciation (depreciation) of:

  

Investments and foreign currency

     (17,060,782

Futures contracts

      

Swaps

      

Net increase (decrease) in net assets applicable to common shares from operations

     (15,501,670

Distributions to Common Shareholders

  

Dividends

      

Decrease in net assets applicable to common shares from distributions to common shareholders

      

Capital Share Transactions

  

Common shares:

  

Proceeds from shelf offering, net of offering costs

      

Proceeds from sale of shares

     604,003,525  

Net proceeds from shares issued to shareholders due to reinvestment of distributions

      

Net increase (decrease) in net assets applicable to common shares from capital share transactions

     604,003,525  

Net increase (decrease) in net assets applicable to common shares

     588,501,855  

Net assets applicable to common shares at the beginning of period

   $ 100,000  

Net assets applicable to common shares at the end of period

   $ 588,601,855  

 

See accompanying notes to financial statements.

 

61


Statement of Cash Flows

Six Months Ended January 31, 2022

(Unaudited)

 

     JPC     JPI     JPS     JPT     NPFD(1)  

Cash Flows from Operating Activities:

         

Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations

  $ (7,218,015   $ (8,793,391   $ (37,137,456   $ (2,539,088   $ (15,501,670

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

    (137,607,214     (50,858,668     (215,914,639     (11,318,849     (911,639,732 )  

Proceeds from sales and maturities of investments

    105,546,400       42,275,569       204,340,793       12,159,676       16,943,954  

Proceeds from (Purchase of) short-term investments, net

    9,496,337       1,279,987       13,146,462       (6,311     (2,955,596

Taxes paid

                      (529      

Amortization (Accretion) of premiums and discounts, net

    3,907,817       1,449,343       6,012,839       612,536       985,732  

(Increase) Decrease in:

         

Receivable for dividends

    41,704       11,973       83,558       4,333       (100,268

Receivable for interest

    (373,719     (274,228     2,350,146       14,962       (9,602,531

Receivable for investments sold

    (1,184,264     (1,148,064     196,740       (112,836      

Receivable for reclaims

    42       39                   (55,084

Receivable for shares sold

    563,167             1,541,350             (29,003,525

Other assets

    (3,045     (19,691     (10,766     (138      

Increase (Decrease) in:

         

Investments purchased – regular settlement

    (7,433,883     (4,349,033     (24,683,125     (1,060,000     18,864,374  

Payable for variation margin on futures contracts

    (72,500     (68,328           (11,203      

Accrued management fees

    2,470       (5,395     (25,936     (3,494     588,589  

Accrued interest

    101,428       69,070       207,609       34,822       158,376  

Accrued Trustees fees

    24,579       5,184       46,800       167       3,348  

Accrued shelf offering costs

    (20,712           (5,736            

Accrued other expenses

    27,454       3,531       37,008       (15,271     67,637  

Net realized (gain) loss from investments and foreign currency

    (1,430,942     (1,274,176     (17,227,038     7,879       82,089  

Change in net unrealized appreciation (depreciation) of:

         

Investments and foreign currency

    56,156,326       32,829,517       138,388,893       7,070,188       17,060,782  

Swaps

    (15,016,184     (4,311,370     (28,186,315            

Net cash provided by (used in) operating activities

    5,507,246       6,821,869       43,161,187       4,836,844       (914,103,525 )  

Cash Flow from Financing Activities:

         

Proceeds from borrowings

    10,700,000       1,200,000                   193,200,000  

Proceeds from reverse repurchase agreements

    7,000,000       9,100,000                   120,000,000  

(Repayments of) reverse repurchase agreements

    (3,500,000     (600,000         (3,200,000

Proceeds from shelf offering, net of offering costs

    11,705,923             9,114,930              

Proceeds from sale of shares

                            604,003,525  

Increase (Decrease) in cash overdraft

                      (34,712      

Cash distributions paid to common shareholders

    (32,803,582     (17,678,031     (61,887,477     (4,812,132      

Net cash provided by (used in) financing activities

    (6,897,659     (7,978,031     (52,772,547     (4,846,844     914,003,525  

Net Increase (Decrease) in Cash and Cash Collateral at Brokers

    (1,390,413     (1,156,162     (9,611,360     (10,000     (100,000

Cash and cash collateral at brokers at the beginning of period

    2,278,742       2,079,961       10,129,844       85,025       100,000  

Cash and cash collateral at brokers at the end of period

    888,329       923,799       518,484       75,025        

The following table provides a reconciliation of cash and cash collateral at brokers to the statement of assets and liabilities:

 

     JPC     JPI     JPS     JPT     NPFD  

Cash

    423,337       485,806       518,484              

Cash collateral at brokers for investments in futures

    464,992       437,993             75,025        

Total cash and cash collateral at brokers

    888,329       923,799       518,484       75,025        
Supplemental Disclosure of Cash Flow Information                                   

Cash paid for interest (excluding costs)

  $ 2,426,880     $ 1,216,752     $ 4,666,583     $ 174,735     $ (10,251

Non-cash financing activities not included herein consists of reinvestments of common share distributions

    382,390       154,364       287,954       54,398        
(1)

For the period December 15, 2021 (commencement of operations) through January 31, 2022.

 

See accompanying notes to financial statements.

 

62


THIS PAGE INTENTIONALLY LEFT BLANK

 

63


Financial Highlights

 

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     Premium from
Shares Sold
through Shelf
Offering
   

Shelf

Offering
Costs

    Ending
NAV
    Ending
Share
Price
 

JPC

 

                                                       

Year Ended 7/31:

 

                   

2022(e)

  $ 9.91     $ 0.33     $ (0.40   $ (0.07   $ (0.32   $     $     $ (0.32   $   $   —   $ 9.52     $ 9.19  

2021

    8.83       0.67       1.05       1.72       (0.64                 (0.64             9.91       10.00  

2020

    10.14       0.65       (1.26     (0.61     (0.68           (0.02     (0.70                 8.83       8.81  

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  

JPI

 

Year Ended 7/31:

 

2022(e)

    25.38       0.81       (1.20     (0.39     (0.78                 (0.78                 24.21       24.25  

2021

    22.45       1.65       2.85       4.50       (1.57                 (1.57                 25.38       26.26  

2020

    24.67       1.59       (2.20     (0.61     (1.57           (0.04     (1.61                 22.45       22.20  

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  

 

    Borrowings at the End of Period  
     Aggregate
Amount
Outstanding
(000)
       Asset
Coverage
Per $1,000
 

JPC

                  

Year Ended 7/31:

 

2022(e)

  $ 473,400        $ 3,113  

2021

    462,700          3,223  

2020

    400,000          3,280  

2019

    455,000          3,303  

2018

    437,000          3,403  

2017

    540,000          3,079  

JPI

                  

Year Ended 7/31:

 

2022(e)

  $ 236,000        $ 3,337  

2021

    234,800          3,461  

2020

    200,000          3,555  

2019

    210,000          3,674  

2018

    225,000          3,467  

2017

    225,000          3,627  

 

(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.

 

64


 

 

            Common Share Supplemental Data/
Ratios Applicable to Common Shares
 
Common Share
Total Returns
          Ratios to Average Net Assets(c)        
Based
on
NAV(b)
        
Based
on
Share
Price(b)
    Ending
Net Assets
(000)
    Expenses     Net
Investment
Income (Loss)
    Portfolio
Turnover
Rate(d)
 
                                             
         
  (0.76 )%      (5.03 )%    $ 1,000,334       1.82 %**      6.59 %**      7
  19.93       21.55       1,028,714       1.81       7.02       23  
  (6.16     (4.12     912,193       2.50       6.87       32  
  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  
                                             
         
  (1.57     (4.71     551,416       1.79 **      6.43 **      5  
  20.54       26.22       577,883       1.76       6.79       23  
  (2.50     (1.93     511,060       2.34       6.75       34  
  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  

 

(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 expenses 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:

 

2022(e)

    0.49 %** 

2021

    0.49  

2020

    1.17  

2019

    1.73  

2018

    1.29  

2017

    0.70  

JPI

       

Year Ended 7/31:

 

2022(e)

    0.45 %** 

2021

    0.44  

2020

    1.01  

2019

    1.43  

2018

    0.97  

2017

    0.67  

 

(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) divided by the average long-term market value during the period.

(e)

Unaudited. For the six months ended January 31, 2022.

*

Rounds to less than $0.01 per common share.

**

Annualized.

 

See accompanying notes to financial statements.

 

65


Financial Highlights (continued)

 

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     Offering
Costs
   

Discount
Per Share
Repurchased
and Retired

   

Shelf

Offering
Costs

   

Premium

from
Shares
Sold
through
Shelf
Offering

    Ending
NAV
    Ending
Share
Price
 

JPS

 

Year Ended 7/31:

 

2022(f)

  $ 9.91     $ 0.30     $ (0.48   $ (0.18   $ (0.30   $     $     $ (0.30   $     $     $ **    $ **    $ 9.43     $ 9.28  

2021

    9.06       0.63       0.83       1.46       (0.61                 (0.61                   — **        — **      9.91       10.02  

2020

    9.84       0.63       (0.76     (0.13     (0.60           (0.05     (0.65                             9.06       9.07  

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  

JPT

                                                                                                               

Year Ended 7/31:

 

2022(f)

    25.04       0.63       (1.00     (0.37     (0.71                 (0.71                             23.96       23.87  

2021

    22.84       1.31       2.31       3.62       (1.42                 (1.42                             25.04       25.45  

2020

    24.24       1.29       (1.27     0.02       (1.42                 (1.42                             22.84       23.20  

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(d)

    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:

      

2022(f)

  $ 873,300        $ 3,220  

2021

    873,300          3,323  

2020

    740,300          3,495  

2019

    853,300          3,349  

2018

    845,300          3,346  

2017

    845,300          3,506  

JPT

                  

Year Ended 7/31:

      

2022(f)

  $ 47,000        $ 4,490  

2021

    47,000          4,646  

2020

    37,300          5,188  

2019

    42,500          4,897  

2018

    42,500          4,841  

2017(d)

    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.

 

 

66


 

 

            Common Share Supplemental Data/
Ratios Applicable to Common Shares
 
Common Share
Total Returns
          Ratios to Average Net Assets(c)        
Based
on
NAV(b)
        
    
    
Based
on
Share
Price(b)
    Ending
Net Assets
(000)
    Expenses     Net
Investment
Income (Loss)
    Portfolio
Turnover
Rate(e)
 
                                             
         
  (1.84 )%      (4.43 )%    $ 1,938,997       1.78 %*      6.11 %*      7
  16.45       17.75       2,028,972       1.78       6.51       14  
  (1.29     (0.59     1,847,233       2.44       6.73       24  
  8.53       18.01       2,004,447       3.02       6.91       16  
  0.66       (6.43     1,982,910       2.48       6.77       13  
  15.83       15.50       2,118,545       2.03       7.18       13  
                                             
         
  (1.51     (3.46     164,025       1.51     5.04     5  
  16.25       16.33       171,378       1.37       5.42       28  
  0.15       3.18       156,199       1.71       5.52       22  
  7.76       9.78       165,623       2.00       5.83       26  
  (0.84     (2.36     163,238       1.77       5.82       28  
  6.69       3.54       174,791       1.61     5.73     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 expenses 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:

 

2022(f)

    0.48 %* 

2021

    0.49  

2020

    1.14  

2019

    1.73  

2018

    1.22  

2017

    0.77  

JPT

       

Year Ended 7/31:

 

2022(f)

    0.25 %* 

2021

    0.22  

2020

    0.55  

2019

    0.83  

2018

    0.60  

2017(d)

    0.42

 

(d)

For the period January 26, 2017 (commencement of operations) through July 31, 2017.

(e)

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) divided by the average long-term market value during the period.

(f)

Unaudited. For the six months ended January 31, 2022.

*

Annualized.

**

Rounds to less than $0.01 per common share.

 

See accompanying notes to financial statements.

 

67


Financial Highlights (continued)

 

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
     Total      Ending
NAV
     Ending
Share
Price
 

NPFD

                                                                               

Year Ended 7/31:

 

                       

2022(e)

  $ 25.00      $ 0.07      $ (0.71    $ (0.64    $   —      $   —      $   —      $ 24.36      $ 24.78  

 

    Borrowings at the End of Period  
     Aggregate
Amount
Outstanding
(000)
       Asset
Coverage
Per
$1,000
 

NPFD

                  

Year Ended 7/31:

 

    

2022(e)

  $ 193,200        $ 4,047  

 

(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.

 

 

68


 

 

            Common Share Supplemental Data/
Ratios Applicable to Common Shares
 
Common Share
Total Returns
          Ratios to Average Net Assets(c )        
Based
on
NAV(b)
        
Based
on
Share
Price(b)
    Ending
Net Assets
(000)
    Expenses     Net
Investment
Income (Loss)
    Portfolio
Turnover
Rate(d)
 
                                             
         
  (2.56 )%      (0.88 )%      588,602       1.35 %*      2.29 %*      9

 

(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 expenses paid and other costs related to borrowings and/or reverse repurchase agreements, where applicable, as follows:

 

NPFD   Ratios of Interest Expense
to Average Net Assets
Applicable to Common Shares
 

Year Ended 7/31:

 

2022(e)

    0.22 %* 

 

(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) divided by the average long-term market value during the period.

(e)

Unaudited. For the period December 15, 2021 (commencement of operations) through January 31, 2022.

*

Annualized.

 

See accompanying notes to financial statements.

 

69


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 Fund (JPT) (formerly, Nuveen Preferred and Income 2022 Term Fund)

 

   

Nuveen Variable Rate Preferred & Income Fund (NPFD)

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, JPT and NPFD were each organized as Massachusetts business trusts on January 27, 2003, April 18, 2012, June 24, 2002, July 6, 2016 and June 1, 2021 respectively.

The end of the reporting period for the Funds is January 31, 2022. The period covered by these Notes to Financial Statements for JPC, JPI, JPS and JPT is for the six months ended January 31, 2022, while the reporting period for NPFD is the period December 15, 2021 (commencement of operations) through January 31, 2022 (collectively the “current fiscal period”).

Investment Adviser and Sub-Advisers

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. For JPC, JPI and JPT, the Adviser has entered into sub-advisory agreements with Nuveen Asset Management LLC (“NAM”), a subsidiary of the Adviser. For JPS, the Adviser has entered into a sub-advisory agreement with Spectrum Asset Management, Inc. (“Spectrum”) and with NAM (each a “Sub-Adviser” and collectively, the “Sub-Advisers”). The Sub-Advisers manage the investment portfolio of each Fund. The Adviser is responsible for managing JPC’s, JPI’s and JPS’s investments in swap contracts.

For JPC, prior to December 31, 2021, the Adviser had entered into a sub-advisory agreement with NWQ Investment Management Company, LLC (“NWQ”), also an affiliate of the Adviser. NWQ, along with NAM, was responsible for approximately half of JPC’s investment portfolio. Effective December 31, 2021, the sub-advisory agreement with NWQ was terminated in connection with the transfer of investment management personnel from NWQ into NAM. On that date, any assets of the Fund that were managed by NWQ were reallocated to NAM along with the NWQ personnel who served as portfolio managers continuing to do so as NAM personnel. Effective April 1, 2022, (subsequent to the close of the reporting period) the former NWQ portfolio managers Thomas J. Ray and Susi Budiman will no longer co-manage JPC with Douglas Baker and Brenda A. Langenfeld. Mr. Baker and Ms. Langenfeld will assume sole responsibility for the portfolio management of JPC.

Fund Restructuring for JPT

On January 19, 2022, JPT shareholders approved a proposal to restructure the Fund (the “Restructuring”). The Restructuring allowed shareholders the opportunity to maintain their investment in JPT and its exposure to a leveraged strategy focused on preferred and other income producing securities in lieu of the scheduled termination of the Fund. The effectiveness of the Restructuring was contingent on the success of the Fund’s tender offer.

On January 20, 2022, JPT conducted a tender offer, which allowed shareholders to offer up to 100% of their shares for repurchase for cash at a price per share equal to 100% of the net asset value (“NAV”) per share determined on the date the tender offer expired. The tender offer expired on February 17, 2022 (subsequent to the end of the reporting period). In the tender offer 2,454,617 shares were tendered, representing approximately 36% of JPT’s common shares outstanding. Properly tendered shares were repurchased $23.2613 per share, which was the NAV of the Fund as of the close of ordinary trading on the NYSE on February 17, 2022.

As a result of the successful completion of the tender offer, the Restructuring of the JPT was completed and on February 28, 2022 the following changes became effective.

 

   

JPT’s declaration of trust was amended to eliminate the term structure of the Fund.

 

   

JPT’s investment policies were amended to permit investment in contingent capital securities (CoCos).

 

70


 

   

JPT’s use of leverage is expected to increase from current levels.

 

   

JPT’s name changed to Nuveen Preferred and Income Fund.

 

   

Beginning February 8, 2022 the Adviser is waiving 50% of the Fund’s net management fees, which will continue over the first year following the elimination of the term structure.

Developments Regarding the Funds’ Control Share By-Law

On October 5, 2020, the Funds and certain other closed-end funds in the Nuveen fund complex amended their by-laws. Among other things, the amended by-laws included provisions pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares in a Control Share Acquisition (as defined in the by-laws) shall have the same voting rights as other common shareholders only to the extent authorized by the other disinterested shareholders (the “Control Share By-Law”). On January 14, 2021, a shareholder of certain Nuveen closed-end funds filed a civil complaint in the U.S. District Court for the Southern District of New York (the “District Court”) against certain Nuveen funds and their trustees, seeking a declaration that such funds’ Control Share By-Laws violate the 1940 Act, rescission of such fund’s Control Share By-Laws and a permanent injunction against such funds applying the Control Share By-Laws. On February 18, 2022, the District Court granted judgment in favor of the plaintiff’s claim for rescission of such funds’ Control Share By-Laws and the plaintiff’s declaratory judgment claim, and declared that such funds’ Control Share By-Laws violate Section 18(i) of the 1940 Act. Following review of the judgment of the District Court, on February 22, 2022, the Funds’ Board of Trustees (the “Board”) amended the Funds’ by-laws to provide that the Funds’ Control Share By-Law shall be of no force and effect for so long as the judgment of the District Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or otherwise nullified, the Funds’ Control Share By-Law will be automatically reinstated and apply to any beneficial owner of common shares acquired in a Control Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement, for the duration of the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of the District Court. On February 25, 2022, the Board and the Funds appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit.

Other Matters

The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.

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. Each 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 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 Funds.

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 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.

Foreign Currency Transactions and Translation

To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their 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.

 

71


Notes to Financial Statements (continued)

(Unaudited)

 

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 Funds 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

     $ 128,581,550        8.0

Switzerland

       65,685,954        4.1  

France

       54,489,968        3.4  

Canada

       48,727,471        3.1  

Spain

       20,774,222        1.3  

Australia

       20,014,892        1.3  

Netherlands

       17,322,357        1.1  

Germany

       15,406,901        1.0  

Italy

       13,807,475        0.9  

Ireland

       11,344,226        0.7  

Other

       54,870,283        1.8  

Total non-U.S. securities

     $ 451,025,299        26.7
JPI                  

Country:

       

United Kingdom

     $ 108,441,302        12.8

Switzerland

       61,003,018        7.2  

France

       50,765,704        6.0  

Spain

       19,483,141        2.3  

Australia

       18,745,664        2.2  

Canada

       16,583,064        2.0  

Netherlands

       16,149,880        1.9  

Germany

       14,271,023        1.7  

Italy

       12,528,815        1.5  

Ireland

       10,498,729        1.2  

Other

       27,707,963        3.2  

Total non-U.S. securities

     $ 356,178,303        42.0
JPS                  

Country:

       

United Kingdom

     $ 414,538,403        13.4

France

       309,821,700        10.0  

Switzerland

       249,618,008        8.1  

Finland

       86,407,520        2.8  

Canada

       66,434,553        2.2  

Spain

       62,266,328        2.0  

Norway

       54,755,915        1.8  

Netherlands

       38,365,457        1.2  

Australia

       38,170,361        1.2  

Japan

       35,668,187        1.2  

Other

       101,017,378        3.3  

Total non-U.S. securities

     $ 1,457,063,810        47.2

 

72


 

JPT      Value      % of Total
Investments
 

Country:

       

Canada

     $ 7,654,918        3.7

United Kingdom

       5,886,474        2.8  

Ireland

       5,851,032        2.8  

Bermuda

       4,885,745        2.3  

Australia

       4,739,677        2.3  

France

       3,289,765        1.6  

Other

       3,063,910        1.4  

Total non-U.S. securities

     $ 35,371,521        16.9
NPFD                  

Country:

       

United Kingdom

     $ 79,373,908        9.0

Canada

       41,034,296        4.7  

Switzerland

       39,186,159        4.5  

France

       33,645,545        3.8  

Ireland

       19,510,789        2.2  

Australia

       18,550,161        2.1  

Spain

       12,714,110        1.4  

Netherlands

       10,918,866        1.2  

Italy

       10,174,005        1.2  

Other

       27,064,628        3.4  

Total non-U.S. securities

     $ 292,172,467        33.5

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 certain 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 is recorded on an accrual basis and includes accretion of discounts and amortization of premiums for financial reporting purposes. 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. Rehypothecation income is comprised of fees earned in connection with the rehypothecation of pledged collateral as further described in Note 8 – Fund Leverage.

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.

Organizational Expenses for NPFD

Prior to the commencement of operations on December 15, 2021, NPFD had no operations other than those related to organizational matters, the Fund’s initial contribution of $100,000 by the Adviser, the recording of the Fund’s organizational expenses of $16,000 and their reimbursement by the Adviser.

 

73


Notes to Financial Statements (continued)

(Unaudited)

 

New Accounting Pronouncements and Rule Issuances

Reference Rate Reform

In March 2020, FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates, when participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only changes to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December 31, 2022. Management has not yet elected to apply the amendments, is continuously evaluating the potential effect a discontinuation of LIBOR could have on the Funds’ investments and has currently determined that it is unlikely the ASU’s adoption will have a significant impact on the Funds’ financial statements and various filings.

Securities and Exchange Commission (“SEC”) Adopts New Rules to Modernize Fund Valuation Framework

In December 2020, the SEC voted to adopt a new rule governing fund valuation practices. New Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of Section 2(a)(41) of the 1940 Act, which requires a fund to fair value a security when market quotations are not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, with a compliance date of September 8, 2022. A fund may voluntarily comply with the rules after the effective date, and in advance of the compliance date, under certain conditions. Management is currently assessing the impact of these provisions on the Funds’ financial statements.

3. Investment Valuation and Fair Value Measurements

The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. 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. U.S. GAAP establishes the three-tier hierarchy which 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 management’s 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).

A description of the valuation techniques applied to the Funds’ major classifications of assets and liabilities measured at fair value follows:

Equity securities and exchange-traded funds listed or traded on a national market or exchange are valued based on their sale price at the official close of business of such market or exchange on the valuation date. Foreign equity securities and registered investment companies that trade on a foreign exchange are valued at the last sale price or official closing price reported on the exchange where traded and converted to U.S. dollars at the prevailing rates of exchange on the date of valuation. To the extent these securities are actively traded and that valuation adjustments are not applied, they are generally classified as Level 1. If there is no official close of business, then the latest available sale price is utilized. If no sales are reported, then the mean of the latest available bid and ask prices is utilized and these securities are generally classified as Level 2.

Prices of fixed-income securities are generally 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. 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.

For events affecting the value of foreign securities between the time when the exchange on which they are traded closes and the time when the Funds’ net assets are calculated, such securities will be valued at fair value in accordance with procedures adopted by the Board. These foreign securities are generally classified as Level 2.

 

74


 

Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.

Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.

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.

Swap contracts are marked-to-market daily based upon a price supplied by a pricing service. Swaps are generally classified as Level 2.

Any portfolio security or derivative for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued at fair value, as determined in good faith using procedures approved by the Board. 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. To the extent the inputs are observable and timely, the values would be classified as Level 2 of the fair value hierarchy; otherwise they would be classified as Level 3.

The following table summarizes the market value of the Funds’ investments as of the end of the reporting period, based on the inputs used to value them:

 

JPC    Level 1      Level 2      Level 3      Total  

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 804,871,616      $      $ 804,871,616  

$25 Par (or similar) Retail Preferred

     289,546,709        52,135,676 **              341,682,385  

Contingent Capital Securities

            307,582,451               307,582,451  

Corporate Bonds

            83,563,521               83,563,521  

Convertible Preferred Securities

     40,803,988                      40,803,988  

Common Stocks

     3,670,635                      3,670,635  

Short-Term Investments:

           

Repurchase Agreements

            15,251,018               15,251,018  

Investments in Derivatives:

           

Futures Contracts***

     471,713                      471,713  

Interest Rate Swaps***

            (11,779,796             (11,779,796

Total

   $ 334,493,045      $ 1,251,624,486      $      $ 1,586,117,531  
JPI                                

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 401,098,988      $      $ 401,098,988  

Contingent Capital Securities

            286,081,405               286,081,405  

$25 Par (or similar) Retail Preferred

     116,421,316        39,295,002 **              155,716,318  

Corporate Bonds

            3,692,560               3,692,560  

Short-Term Investments:

           

Repurchase Agreements

            972,728               972,728  

Investments in Derivatives:

           

Futures Contracts***

     444,323                      444,323  

Interest Rate Swaps***

            (3,220,193             (3,220,193

Total

   $ 116,865,639      $ 727,920,490      $      $ 844,786,129  
JPS                                

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 1,533,128,665      $      $ 1,533,128,665  

Contingent Capital Securities

            1,063,671,746               1,063,671,746  

$25 Par (or similar) Retail Preferred

     275,563,983        48,590,532 **              324,154,515  

Corporate Bonds

            87,685,429               87,685,429  

Convertible Preferred Securities

     34,319,159                      34,319,159  

Investment Companies

     21,248,569                      21,248,569  

Short-Term Investments:

           

Repurchase Agreements

            21,512,581               21,512,581  

Investments in Derivatives:

           

Interest Rate Swaps***

            (22,109,686             (22,109,686

Total

   $ 331,131,711      $ 2,732,479,267      $      $ 3,063,610,978  

 

75


Notes to Financial Statements (continued)

(Unaudited)

 

JPT    Level 1      Level 2      Level 3      Total  

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 153,532,794      $      $ 153,532,794  

$25 Par (or similar) Retail Preferred

     43,061,506        10,374,134 **              53,435,640  

Corporate Bonds

            2,112,780               2,112,780  

Short-Term Investments:

           

Repurchase Agreements

            734,872               734,872  

Investments in Derivatives:

           

Futures Contracts***

     73,039                      73,039  

Total

   $ 43,134,545      $ 166,754,580      $      $ 209,889,125  
NPFD                                

Long-Term Investments*:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 553,931,062      $      $ 553,931,062  

Contingent Capital Securities

            180,349,005               180,349,005  

$25 Par (or similar) Retail Preferred

     142,027,608        259,500 **              142,287,108  

Short-Term Investments:

           

Repurchase Agreements

            2,955,596               2,955,596  

Total

   $ 142,027,608      $ 737,495,163      $      $ 879,522,771  
*

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
 
JPC   

Fixed Income Clearing Corporation

   $ 15,251,018        $ (15,556,083
JPI   

Fixed Income Clearing Corporation

     972,728          (992,198
JPS   

Fixed Income Clearing Corporation

     21,512,581          (21,942,924
JPT   

Fixed Income Clearing Corporation

     734,872          (749,640
NPFD   

Fixed Income Clearing Corporation

     2,955,596          (3,014,799

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      NPFD  

Purchases

   $ 137,607,214      $ 50,858,668      $ 215,914,639      $ 11,318,849      $ 911,639,732  

Sales and maturities

     105,546,400        42,275,569        204,340,793        12,159,676        16,943,954  

 

76


 

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 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*

       42,015,617        39,561,915        6,483,945  
*

The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each quarter within the current fiscal period.

The following table presents the fair value of all futures contracts held as of 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    Futures contracts      $  —         Payable for variation margin on futures contracts**    $ 471,713  
JPI               
Interest rate    Futures contracts      $  —         Payable for variation margin on futures contracts**    $ 444,323  
JPT               
Interest rate    Futures contracts      $  —         Payable for variation margin on futures contracts**    $ 73,039  
**

Value represents the cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Fund’s Portfolio of Investments and not the daily asset and/or liability derivative location as described in the table above.

 

77


Notes to Financial Statements (continued)

(Unaudited)

 

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      $ 251,226        $ 1,368,216  
JPI      Interest rate      Futures contracts        235,045          1,289,210  
JPT      Interest rate      Futures contracts        38,406          211,590  

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 fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”).

The 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 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.

 

78


 

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**   $ (11,779,796
JPI

 

Interest rate    Swaps (OTC Uncleared)      $             Unrealized depreciation on interest rate swaps**   $ (3,220,193
JPS

 

Interest rate    Swaps (OTC Uncleared)      $             Unrealized depreciation on interest rate swaps**   $ (22,109,686
**

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.

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    $      $ (11,779,796    $ (11,779,796    $ 11,565,150      $ (214,646
JPI    Morgan Stanley Capital Services LLC             (3,220,193      (3,220,193      3,424,628        204,435  
JPS    Morgan Stanley Capital Services LLC             (22,109,686      (22,109,686      21,619,062        (490,624
***

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      $ (3,190,088      $ 15,016,184  
JPI      Interest rate      Swaps        (1,554,089        4,311,370  
JPS      Interest rate      Swaps        (5,992,712        28,186,315  

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.

 

79


Notes to Financial Statements (continued)

(Unaudited)

 

5. Fund Shares

Common Shares

Common Share Equity Shelf Programs and Offering Costs

JPC and JPS have filed a registration statement with the SEC authorizing each Fund to issue additional common shares through one or more equity shelf programs (“Shelf Offering”), which became effective with the SEC during a prior fiscal period.

Under these Shelf Offerings, the Funds, subject to market conditions, may raise additional equity capital by issuing additional common shares from time to time in varying amounts and by different offering methods at a net price at or above each Fund’s NAV per common share. In each event the Fund’s Shelf Offering registration statement is no longer current, the Funds may not issue additional common shares until a post-effective amendment to the registration statement has been filed with the SEC.

Maximum aggregate offering, common shares sold and offering proceeds, net of offering costs under each Fund’s Shelf Offering during the Funds’ current and prior fiscal period were as follows:

 

     JPC      JPS  
      Six Months Ended
1/31/22
    

Year Ended
7/31/21*

     Six Months Ended
1/31/22
     Year Ended
7/31/21*
 

Maximum aggregate offering

     Unlimited        Unlimited        Unlimited        Unlimited  

Common shares sold

     1,185,860        480,154        921,252        932,349  

Offering proceeds, net of offering costs

   $ 11,703,948      $ 4,757,224      $ 9,114,000      $ 9,215,446  
*

For the period March 19, 2021 through July 31, 2021.

Costs incurred by each Fund in connection with their initial shelf registration are recorded as a prepaid expense and recognized as “Deferred offering costs” on the Statement of Assets and Liabilities. These costs are amortized pro rata as common shares are sold and are recognized as a component of “Proceeds from shelf offering, net of offering costs” on the Statement of Changes in Net Assets. Any deferred offering costs remaining after the effectiveness of the initial shelf registration will be expensed. Costs incurred by the Funds to keep the shelf registration current are expensed as incurred and recognized as a component of “Other expenses” on the Statement of Operations.

Common Share Transactions

Transactions in common shares during the Funds’ current and prior fiscal period were as follows:

 

     JPC     JPI      JPS     JPT      NPFD*  
      Six Months
Ended
1/31/22
    Year
Ended
7/31/21
    Six Months
Ended
1/31/22
     Year
Ended
7/31/21
     Six Months
Ended
1/31/22
    Year
Ended
7/31/21
    Six Months
Ended
1/31/22
     Year
Ended
7/31/21
     For the period
12/15/21
(commencement
of operations)
through 1/31/22
 

Common shares:

                      

Sold through shelf offering

     1,185,860       480,154                     921,252       932,349                      

Sold

                                                         24,160,141  

Issued to shareholders due to reinvestment of distributions

     38,614       9,455       6,156        4,872        29,125       48,338       2,174        4,887         

Total

     1,224,474       489,609       6,156        4,872        950,377       980,687       2,174        4,887        24,160,141  

Weighted average common share:

                      

Premium to NAV per shelf offering sold

     1.18     1.08                   1.16     1.12                    
*

Prior to the commencement of operations, the Adviser purchased 4,000 shares, which are still held as of the end of the reporting period.

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 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.

Each Fund files income tax returns in U.S. federal and applicable state and local jurisdictions. A Fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after being filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed each Fund’s tax positions taken for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements.

 

80


 

As of the end of the reporting period, the aggregate cost and the net unrealized appreciation/(depreciation) of all investments for federal income tax purposes was as follows:

 

Fund      Tax Cost      Gross
Unrealized
Appreciation
     Gross
Unrealized
(Depreciation)
     Net Unrealized
Appreciation
(Depreciation)
 
JPC      $ 1,543,161,701      $ 73,120,472      $ (30,164,642    $ 42,955,830  
JPI        809,834,492        42,265,210        (7,313,573      34,951,637  
JPS        2,920,671,696        172,046,283        (29,107,001      142,939,282  
JPT        204,306,876        7,532,944        (1,950,695      5,582,249  
NPFD        897,536,868        115,415        (18,129,512      (18,014,097

For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized income and/or capital gains for tax reporting, if applicable.

As of prior fiscal period end, the components of accumulated earnings on a tax basis were as follows:

 

Fund    Undistributed
Ordinary Income
   Undistributed
Long-Term
Capital Gains
     Unrealized
Appreciation
(Depreciation)
     Capital Loss
Carryforwards
     Late-Year Loss
Deferrals
     Other
Book-to-Tax
Differences
     Total  
JPC    $ 2,927,550    $             —      $ 87,189,351      $ (94,263,977    $             —      $ (5,356,982    $ (9,504,058
JPI    895,804             64,761,787        (23,011,386             (2,711,856      39,934,349  
JPS    1,486,210             257,304,074        (91,090,907             (9,227,668      158,471,709  
JPT    20,446             13,162,194        (9,164,486             (792,885      3,225,269  
NPFD                                             

As of prior fiscal period end, the Funds had capital loss carryforwards, which will not expire:

 

Fund      Short-Term      Long-Term      Total  
JPC      $ 39,364,949      $ 54,899,028      $ 94,263,977  
JPI        10,714,010        12,297,376        23,011,386  
JPS        12,248,977        78,841,930        91,090,907  
JPT        1,460,439        7,704,047        9,164,486  
NPFD                       

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 $6,726.

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:

 

Fund-Level Average Daily Managed Assets

     JPC      JPI      JPS      JPT      NPFD  

For the first $500 million

       0.6800      0.7000      0.7000      0.7000      0.7500

For the next $500 million

       0.6550        0.6750        0.6750        0.6750        0.7250  

For the next $500 million

       0.6300        0.6500        0.6500        0.6500        0.7000  

For the next $500 million

       0.6050        0.6250        0.6250        0.6250        0.6750  

For managed assets over $2 billion

       0.5800        0.6000        0.6000        0.6000        0.6500  

 

81


Notes to Financial Statements (continued)

(Unaudited)

 

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 funds advised by an affiliate of the Adviser during the 2019 calendar year. As of January 31, 2022, the complex-level fee rate for each Fund was 0.1537%.

8. Fund Leverage

Borrowings

Each Fund entered into a borrowing arrangement (“Borrowings”) 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      NPFD  

Maximum commitment amount

     $ 485,000,000      $ 255,000,000      $ 910,000,000      $ 47,000,000      $ 250,000,000  

As of the end of the reporting period, each Fund’s outstanding balance on its Borrowings was as follows:

 

        JPC        JPI        JPS        JPT        NPFD  

Outstanding balance on Borrowings

     $ 473,400,000        $ 236,000,000        $ 873,300,000        $ 47,000,000        $ 193,200,000  

For JPC, JPI and JPS interest is charged on these Borrowings at 1-Month LIBOR (London Inter-Bank Offered Rate) plus 0.75% 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, which were waived during the reporting period. JPT’s interest is charged on the Borrowings at a rate equal to the 1-month LIBOR plus 0.775% per annum on the amount borrowed and a 0.125% per annum commitment fee on the undrawn portion of the Borrowings. For NPFD, interest is charged on these Borrowings at OBFR (“Overnight Bank Funding Rate”) plus 0.75% per annum on the amounts borrowed and 0.25% per annum on the undrawn balance if the undrawn portion of the Borrowings on a particular day is more than 25% of the maximum commitment amount.

During the current fiscal period, the average daily balance outstanding (which was for the entire reporting period) and average annual interest rate on each Fund’s Borrowings were as follows:

 

        JPC      JPI      JPS      JPT      NPFD  

Utilization period

       184        184        184        184        21  

Average daily balance outstanding

     $ 470,192,120      $ 235,060,870      $ 873,300,000      $ 47,000,000      $ 166,533,333  

Average annual interest rate

       0.86      0.85      0.86      0.88      0.83

In order to maintain these Borrowings, the Funds must meet certain collateral, asset coverage and other requirements. The Funds’ borrowings outstanding are fully secured by eligible securities held in each Fund’s portfolio of investments. (“Pledged Collateral”)

 

82


 

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

  $ 129,386,542        $ 217,393,137        $ 805,155,010  

JPC, JPI and JPS earn Rehypothecation Fees, which are recognized as “Rehypothecation 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

  $ 8,226        $ 19,640        $ 72,309  

Reverse Repurchase Agreements

During the current fiscal period, JPC, JPI, JPS and NPFD used reverse repurchase agreements as a means of leverage.

Each Fund may enter into a reverse repurchase agreement with brokers, dealers, banks or other financial institutions that have been determined by the Adviser to be creditworthy. In a reverse repurchase agreement, a Fund sells to the counterparty a security that it holds with a contemporaneous agreement to repurchase the same security at an agreed-upon price and date, reflecting the interest rate effective for the term of the agreement. It may also be viewed as the borrowing of money by the Fund. Cash received in exchange for securities delivered, plus accrued interest payments to be made by the Fund to a counterparty, are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Fund to counterparties are recognized as a component of “Interest expense” on the Statement of Operations.

In a reverse repurchase agreement, the Fund retains the risk of loss associated with the sold security. In order to minimize risk, the Fund identifies for coverage securities and cash as collateral with a fair value at least equal to its purchase obligations under these agreements (including accrued interest). Reverse repurchase agreements also involve the risk that the purchaser fails to return the securities as agreed upon, files for bankruptcy or becomes insolvent. Upon a bankruptcy or insolvency of a counterparty, the Fund is considered to be an unsecured creditor with respect to excess collateral and as such the return of excess collateral may be delayed. The Fund will identify assets determined to be liquid by the Adviser to cover its obligations under reverse repurchase agreements.

As of the end of the reporting period, the Funds’ outstanding balances on its reverse repurchase agreements were as follows:

 

Fund   Counterparty   

Coupon

   Principal
Amount
       Maturity*        Value        Value and
Accrued Interest
 
JPC  

BNP Paribas

  

0.70%

   $ (124,500,000        8/9/22        $ (124,500,000      $ (124,670,820
JPI  

BNP Paribas

  

0.70%

     (65,000,000        2/11/24          (65,000,000        (65,110,466
JPS  

BNP Paribas

  

0.70%

     (275,000,000        8/31/22          (275,000,000        (275,377,653
NPFD  

Royal Bank of Canada

  

0.70%

    
(116,800,000

       4/5/22         
(116,800,000

       (116,866,545
*

The Fund may repurchase the reverse repurchase agreement prior to the maturity date and/or counterparty may accelerate maturity upon pre-specified advance notice.

 

83


Notes to Financial Statements (continued)

(Unaudited)

 

During the current fiscal period, the average daily balance outstanding and average annual interest rate on the Funds’ reverse repurchase agreements were as follows:

 

     JPC        JPI        JPS        NPFD  

Utilization period (days outstanding)

    184          184          184          27  

Average daily balance outstanding

  $ (124,274,457      $ (63,853,804      $ (275,000,000      $ (102,577,778

Average annual interest rate

    0.80        0.85        0.80        0.90

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
 
JPC    BNP Paribas      $ (124,670,820      $ 130,133,031  
JPI    BNP Paribas        (65,110,466        72,055,304  
JPS    BNP Paribas        (275,377,653        295,855,931  
NPFD    Royal Bank of Canada        (116,866,545        158,060,930  
**

Represents gross value and accrued interest for the counterparty as reported in the preceding table.

9. Inter-Fund Lending

Inter-Fund Borrowing and Lending

The 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 covered by this shareholder report have entered into any inter-fund loan activity.

10. Subsequent Events

Borrowings

During February 2022, JPT renewed its Borrowings through February 2023, and the drawn spread was changed to the 1-Month Term SOFR (“Secured Overnight Financing Rate”) plus 0.05%. All other terms remained the same.

 

84


Risk Considerations (Unaudited)

 

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.

 

85


Risk Considerations (continued)

 

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.

Nuveen Variable Rate Preferred & Income Fund (NPFD)

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, hybrid 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 (this fund). For these and other risks, including the Fund’s limited term and concentration risk, see the Fund’s web page at www.nuveen.com/NPFD.

 

86


Additional Fund Information (Unaudited)

 

Board of Trustees      
Jack B. Evans   William C. Hunter   Amy B. R. Lancellotta   Joanne T. Medero   Albin F. Moschner   John K. Nelson
Judith M. Stockdale   Carole E. Stone   Matthew Thornton III   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.

 

 

Active Shelf Offering Statement of Additional Information (SAI) for JPC and JPS

The SAI for the active shelf offerings for each JPC and JPS contains additional information about the Fund’s Board of Trustees. You may obtain a copy of the fund’s SAI without charge, upon request, by calling Nuveen at (312) 917-7700, by writing to the Fund, or on Nuveen’s website at www.nuveen.com. You may also 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

    0          0          0          0  

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.

 

 

 

87


Glossary of Terms Used in this Report

(Unaudited)

 

 

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.

 

 

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.

 

 

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.

 

 

ICE BofA Fixed Rate Preferred Securities Index: An index designed to measure the performance of investment grade fixed-rate, USD-denominated preferred securities issued in the U.S. domestic market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

ICE BofA U.S. All Capital Securities Index: An index designed to measure the performance of investment grade and below investment grade fixed rate and fixed-to-floating rate, USD-denominated hybrid corporate and preferred securities publicly issued in the US domestic market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

ICE Variable Rate Preferred & Hybrid Securities Index: An index designed to measure the performance of floating- and variable-rate investment grade and below investment grade USD-denominated preferred stock and hybrid debt publicly issued by corporations in the U.S. domestic market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

88


 

 

JPC Blended Benchmark (after December 31, 2013): Consists of: 1) 50% ICE BofA Fixed Rate Preferred Securities Index, which measures the performance of investment grade fixed-rate, USD-denominated preferred securities issued in the U.S. domestic market, 2) 30% ICE BofA U.S. All Capital Securities Index, an index designed to measure the performance of investment grade and below investment grade fixed rate and fixed-to-floating rate, USD-denominated hybrid corporate and preferred securities publicly issued in the US domestic market, and 3) 20% ICE USD Contingent Capital Index (CDLR), which is designed to measure the performance of USD-denominated contingent capital debt publicly issued in the major domestic and Eurobond markets, including investment grade and below investment grade issues. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

JPC Blended Benchmark (prior to December 31, 2013): Consists of: 1) 82.5% ICE BofA Fixed Rate Preferred Securities Index, (see Fund’s current Blended Benchmark), and 2) 17.5% Bloomberg Capital Securities Index, which is designed to measure the performance of USD-denominated preferred securities, including Tier 1 and Tier 2 securities. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

JPI Blended Benchmark (after December 31, 2013): Consists of: 1) 60% ICE BofA U.S. All Capital Securities Index, an index designed to measure the performance of investment grade and below investment grade fixed rate and fixed-to-floating rate, USD-denominated hybrid corporate and preferred securities publicly issued in the US domestic market, and 2) 40% ICE USD Contingent Capital Index (CDLR), which is designed to measure the performance of USD-denominated contingent capital debt publicly issued in the major domestic and Eurobond markets, including investment grade and below investment grade issues. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

JPI Blended Benchmark (prior to December 31, 2013): Consists of: 1) 65% ICE BofA Fixed Rate Preferred Securities Index, which measures the performance of investment grade fixed-rate, USD-denominated preferred securities issued in the U.S. domestic market, and 2) 35% Bloomberg Capital Securities Index, which is designed to measure the performance of USD-denominated preferred securities, including Tier 1 and Tier 2 securities. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

JPS Blended Benchmark (after December 31, 2013): Consists of: 1) 60% ICE BofA U.S. All Capital Securities Index, an index designed to measure the performance of investment grade and below investment grade fixed-rate and fixed-to-floating rate, USD-denominated hybrid corporate and preferred securities publicly issued in the US domestic market, and 2) 40% ICE USD Contingent Capital Index (CDLR), which is designed to measure the performance of USD-denominated contingent capital debt publicly issued in the major domestic and Eurobond markets, including investment grade and below investment grade issues. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

JPS Blended Benchmark (prior to December 31, 2013): Consists of: 1) 55% ICE BofA Fixed Rate Preferred Securities Index, which is designed to measure the performance of investment grade fixed-rate, USD-denominated preferred securities issued in the U.S. domestic market, and 2) 45% Bloomberg Capital Securities Tier-1 Index, which is designed to measure the performance of hybrid fixed-income securities, including Tier 1 securities. Index returns assume reinvestment of distributions, but do not reflect any applicable 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.

 

 

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.

 

 

NPFD Blended Benchmark: Consists of: 1) 80% ICE Variable Rate Preferred & Hybrid Securities Index, which is designed to measure the performance of floating- and variable-rate investment grade and below investment grade USD-denominated preferred stock and hybrid debt publicly issued by corporations in the U.S. domestic market, and 2) 20% ICE USD Contingent Capital Index (CDLR), which is designed to track the performance of USD-denominated contingent capital debt publicly issued in the major

 

89


Glossary of Terms Used in this Report (continued)

(Unaudited)

 

  domestic and Eurobond markets, including investment grade and below investment grade issues. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

 

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.

 

90


Annual Investment Management Agreement Approval Process

(Unaudited)

 

The Boards of Trustees (collectively, the “Board,” and each Trustee, a “Board Member”) of the Funds, which are comprised entirely of Board Members who are not “interested persons” (as defined under the Investment Company Act of 1940 (the “1940 Act”)) (the “Independent Board Members”), are responsible for determining whether to approve the respective Fund’s advisory arrangements. At a meeting held on May 25-27, 2021 (the “May Meeting”), the Board approved, for Nuveen Preferred & Income Opportunities Fund (the “Opportunities Fund”), Nuveen Preferred and Income Term Fund, Nuveen Preferred & Income Securities Fund and Nuveen Preferred and Income 2022 Term Fund (collectively, the “May Meeting Funds”), the renewal of the respective investment management agreement with Nuveen Fund Advisors, LLC and each respective sub-advisory agreement with the applicable investment sub-adviser(s) (the “May Meeting Renewals”). A discussion of the May Meeting Renewals is set forth in the annual report of the May Meeting Funds for the period ended July 31, 2021.

The May Meeting Renewals included, among other things, the renewal of investment sub-advisory agreements (each, a “Sub-Advisory Agreement”) with NWQ Investment Management Company, LLC (“NWQ”) and Nuveen Asset Management, LLC (“NAM”) for the Opportunities Fund. At a meeting held on November 16-18, 2021, however, the Board approved the termination of the Opportunities Fund’s Sub-Advisory Agreement with NWQ, effective on or about December 31, 2021 (the “Termination Date”). In this regard, it was contemplated that in connection with certain strategic initiatives identifying opportunities across the Nuveen equities and fixed income platform, seeking to drive greater collaboration and alignment across Nuveen’s investment specialists, the strategies and personnel of NWQ would be absorbed by NAM. Accordingly, the Board considered, among other things, that any assets of the Opportunities Fund managed by NWQ on the Termination Date would be reallocated to NAM and managed by NAM under the terms of the Opportunities Fund’s Sub-Advisory Agreement with NAM.

Nuveen Variable Rate Preferred & Income Fund is new and, accordingly, its advisory arrangements were not up for renewal at the May Meeting. A discussion of the Board’s initial approval of the advisory arrangements for Nuveen Variable Rate Preferred & Income Fund is set forth below.

NUVEEN VARIABLE RATE PREFERRED & INCOME FUND

The Board Members are responsible for approving advisory arrangements and, at a meeting held on June 17, 2021 (for purposes of this discussion, the “Meeting”), were asked to approve the advisory arrangements for Nuveen Variable Rate Preferred & Income Fund (for purposes of this discussion, the “Fund”). At the Meeting, the Board Members, all of whom are Independent Board Members, considered and approved the investment management agreement (for purposes of this discussion, the “Investment Management Agreement”) pursuant to which Nuveen Fund Advisors, LLC (for purposes of this discussion, the “Adviser”) would serve as investment adviser to the Fund and the investment sub-advisory agreement (for purposes of this discussion, the “Sub-Advisory Agreement”) pursuant to which Nuveen Asset Management, LLC (for purposes of this discussion, the “Sub-Adviser”) would serve as investment sub-adviser to the Fund. For purposes of this discussion, the Adviser and the Sub-Adviser are each hereafter a “Fund Adviser.” In addition, for purposes of this discussion, the Investment Management Agreement and the Sub-Advisory Agreement are each hereafter an “Advisory Agreement” and collectively, the “Advisory Agreements.”

Although the 1940 Act requires that the Advisory Agreements be approved by the in-person vote of a majority of the Independent Board Members, the Meeting was held virtually through the internet in view of the health risks associated with holding an in-person meeting during the COVID-19 pandemic and governmental restrictions on gatherings. The Meeting was held virtually in reliance on certain exemptive relief issued by the Securities and Exchange Commission which provided registered investment companies temporary relief from the in-person voting requirements of the 1940 Act with respect to the approval of a fund’s advisory agreement in light of challenges arising in connection with the COVID-19 pandemic.

To assist the Board in its evaluation of an Advisory Agreement with a Fund Adviser at the Meeting, the Independent Board Members had received, in adequate time in advance of the Meeting or at prior meetings, materials which outlined, among other things:

 

 

the nature, extent and quality of the services expected to be provided by the Fund Adviser;

 

91


Annual Investment Management Agreement Approval Process (continued)

(Unaudited)

 

 

the organization of the Fund Adviser, including the responsibilities of various departments and key personnel;

 

 

the expertise and background of the Fund Adviser with respect to the Fund’s investment strategy;

 

 

certain performance-related information (as described below);

 

 

the profitability of Nuveen and its affiliates for their advisory activities;

 

 

the proposed management fees of the Fund Adviser, including comparisons of such fees with the management fees of comparable funds;

 

 

the expected expenses of the Fund, including comparisons of the Fund’s expected expense ratio with the expense ratios of comparable funds; and

 

 

the soft dollar practices of the Fund Adviser, if any.

At the Meeting and/or at prior meetings, the Adviser made presentations to and responded to questions from the Board. During the Meeting and/or at prior meetings, the Independent Board Members also met privately with their legal counsel to, among other things, review the Board’s duties under the 1940 Act, the general principles of state law in reviewing and approving advisory contracts, the standards used by courts in determining whether investment company boards of directors have fulfilled their duties, factors to be considered in voting on advisory contracts and an adviser’s fiduciary duty with respect to advisory agreements and compensation. It is with this background that the Independent Board Members considered the Advisory Agreements. As outlined in more detail below, the Independent Board Members considered various factors they believed relevant with respect to the Fund. Each Board Member may have accorded different weight to the various factors and information discussed below in reaching his or her conclusions with respect to the Fund’s Advisory Agreements. The Board Members also drew on information they had received in their capacity as trustees and directors, as applicable, of other registered investment companies advised by the Fund Advisers.

 

A.   Nature, Extent and Quality of Services

The Independent Board Members considered the nature, extent and quality of the respective Fund Adviser’s services, including portfolio management services and administrative services. Given that the Adviser and the Sub-Adviser already serve as adviser and sub-adviser, respectively, to other Nuveen funds overseen by the Board Members, the Board has a good understanding of each such Fund Adviser’s organization, operations, personnel and services. As the Independent Board Members meet regularly throughout the year to oversee the Nuveen funds, including funds currently advised by the Fund Advisers, the Independent Board Members also have relied upon their knowledge from their meetings and any other interactions throughout the year with the respective Fund Adviser in evaluating the Advisory Agreements.

At the Meeting and/or at prior meetings, the Independent Board Members reviewed materials outlining, among other things, the respective Fund Adviser’s organization and business; the types of services that such Fund Adviser or its affiliates provide to the Nuveen funds (as applicable) and are expected to provide to the Fund; and the experience of the respective Fund Adviser with applicable investment strategies. Further, at the Meeting and/or at prior meetings, the Independent Board Members have evaluated the background and experience of the relevant investment personnel.

In considering the services that were expected to be provided by the Fund Advisers, at the Meeting and/or at prior meetings, the Board has recognized that the Nuveen funds operate in a highly regulated industry and, therefore, the Adviser has provided a wide array of management, oversight and administrative services to manage and operate the funds, and the scope and complexity of these services have expanded over time as a result of, among other things, regulatory and other developments. The Board accordingly has considered the extensive resources, tools and capabilities available to the Adviser to operate and manage the Nuveen funds. With respect to the Adviser, as a general matter, some of these services it and its affiliates provide to the Nuveen funds include, but are not limited to: product management; investment oversight, risk management and securities valuation services; fund administration; oversight of shareholder services and transfer agency functions; Board relations services; compliance and regulatory oversight services; legal support and oversight of outside law firms; and with respect to closed-end funds, managing leverage, monitoring asset coverage and promoting an orderly secondary market. In addition to the services provided by the Adviser, the Board has also considered the risks borne by the

 

92


 

Adviser and its affiliates in managing the Nuveen funds, including entrepreneurial, operational, reputational, regulatory and litigation risks.

The Board further considered the division of responsibilities between the Adviser and the Sub-Adviser and recognized that the Sub-Adviser and its investment personnel would generally be responsible for the management of the Fund’s portfolio under the oversight of the Adviser and the Board. In this regard, the Board recognized the relevant experience and expertise of the Sub-Adviser and the applicable investment personnel.

Based on its review, the Board found that, overall, the nature, extent and quality of services expected to be provided to the Fund under each Advisory Agreement were satisfactory.

 

B.   Investment Performance

The Fund was new and, therefore, did not have its own performance history. However, based on information provided by the Adviser, it was expected that the Fund’s investment strategy would have certain similarities to that of Nuveen Preferred Securities and Income Fund (the “Preferred Securities and Income Fund”), an open-end fund with an inception date of December 19, 2006. The Board was provided with certain performance information relating to the Class A and Class I shares of the Preferred Securities and Income Fund, including average annualized total returns for the quarter-to-date, year-to-date, one-year, three-year, five-year, ten-year and since inception periods as of March 31, 2021.

 

C.   Fees, Expenses and Profitability
  1.   Fees and Expenses

In evaluating the management fees and expenses that the Fund was expected to bear, the Independent Board Members considered, among other things, the Fund’s proposed management fee structure and its expected expense ratio in absolute terms as well as compared with the fees and expense ratios of comparable funds. Accordingly, the Independent Board Members reviewed, among other things, the proposed advisory fee and estimated net total expense ratio for the Fund (based on both common assets and total managed assets), as well as comparative fee and expense data pertaining to the Fund’s peers in the Lipper category in which the Fund was expected to be placed (“Lipper Peers”). In reviewing the comparative data, the Independent Board Members took into account, among other things, information provided by the Adviser regarding various differences between the Fund and certain other Nuveen closed-end funds that were included in the Lipper Peers. Further, the Independent Board Members considered the proposed sub-advisory fee for the Fund.

The Independent Board Members recognized that assets attributable to the Fund’s use of leverage would be included in the amount of assets upon which the advisory fee is calculated. In this regard, the Independent Board Members noted that the advisory fee is based on a percentage of average daily “Managed Assets.” “Managed Assets” generally means the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). “Total assets” for this purpose includes assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value. The Independent Board Members recognized that the fact that a decision to employ or increase the Fund’s leverage will have the effect, all other things being equal, of increasing Managed Assets (and, in turn, increasing the Adviser’s and the Sub-Adviser’s management fees), means that the Adviser and the Sub-Adviser may have a conflict of interest in determining whether to use or increase leverage. The Independent Board Members noted, however, that the Adviser and the Sub-Adviser would seek to manage that potential conflict by recommending to the Board to leverage the Fund (or increase such leverage) when they determine that such action would be in the best interests of the Fund and its common shareholders, and by periodically reviewing with the Board the Fund’s performance and the impact of the use of leverage on that performance.

The Independent Board Members considered the proposed management fee rate before any fund-level and complex-wide breakpoints. In addition, the Independent Board Members considered the Fund’s fund-level and complex-wide breakpoint schedules (described in further detail below). Based on their review of the fee and expense information provided, the Independent Board Members determined that the Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services expected to be provided to the Fund.

 

93


Annual Investment Management Agreement Approval Process (continued)

(Unaudited)

 

  2.   Comparisons with the Fees of Other Clients

At the Meeting and/or at prior meetings, the Board has reviewed information regarding the fee rates that the respective Fund Advisers charge to certain other types of clients and the types of services provided to these other clients. With respect to the Adviser and/or the Sub-Adviser, such other clients may include retail and institutional managed accounts advised by the Sub-Adviser; hedge funds managed by the Sub-Adviser; investment companies offered outside the Nuveen family and sub-advised by the Sub-Adviser; foreign investment companies offered by Nuveen and sub-advised by the Sub-Adviser; and collective investment trusts sub-advised by the Sub-Adviser. Further, the Board has noted that the Adviser also advises certain exchange-traded funds (“ETFs”) sponsored by Nuveen.

In considering the fee data of other clients, the Board has recognized, among other things, the differences in the amount, type and level of services provided to the Nuveen funds relative to other clients as well as the differences in portfolio investment policies, investor profiles, account sizes and regulatory requirements, all of which contribute to the variations in the fee schedules. The Board has recognized the breadth of services the Adviser provides to the Nuveen funds compared to the other types of clients as the funds operate in a highly regulated industry with increasing regulatory requirements as well as the increased entrepreneurial, legal and regulatory risks that the Adviser incurs in sponsoring and managing the funds. Further, with respect to ETFs, the Board has considered that Nuveen ETFs have been passively managed compared to the active management of other Nuveen funds, which has contributed to the differences in fee levels between the Nuveen ETFs and other Nuveen funds. In general, higher fee levels reflect higher levels of service provided by the Adviser, increased investment management complexity, greater product management requirements, and higher levels of business risk or some combination of these factors. The Board has further considered that the Sub-Adviser’s fee is essentially for portfolio management services and therefore more comparable to the fees it receives for retail wrap accounts and other external sub-advisory mandates. The Board has recognized that the varying levels of fees were justified given, among other things, the inherent differences in the products and the level of services provided to the Nuveen funds versus other clients, the differing regulatory requirements and legal liabilities and the entrepreneurial, legal and regulatory risks incurred in sponsoring and advising a registered investment company.

 

  3.   Profitability of Fund Advisers

In conjunction with their review of fees, at the Meeting and/or at prior meetings, the Independent Board Members have considered profitability and other financial data for Nuveen, including information regarding Nuveen’s level of profitability for its advisory services to the Nuveen funds for the calendar years 2020 and 2019. The Board has reviewed, among other things, Nuveen’s net margins (pre-tax) (both including and excluding distribution expenses); gross and net revenue margins (pre- and post-tax and excluding distribution) from Nuveen funds only; revenues, expenses and net income (pre- and post-tax and before distribution expenses) of Nuveen for fund advisory services; and comparative profitability data comparing the operating margins of Nuveen compared to the adjusted operating margins of certain peers that had publicly available data and with the most comparable assets under management (based on asset size and asset composition) for the 2020 and 2019 calendar years. In reviewing the peer comparison data, the Independent Board Members have noted that Nuveen Investments, Inc.’s operating margins were on the low range compared to the total company adjusted operating margins of the peers. The Board has also reviewed the revenues and expenses the Adviser derived from its ETF product line for the 2020 and 2019 calendar years.

In reviewing the profitability data, the Independent Board Members have recognized the subjective nature of calculating profitability as the information is not audited and is dependent on cost allocation methodologies to allocate corporate-wide expenses to the Nuveen complex and its affiliates and to further allocate such Nuveen complex expenses between the Nuveen fund and non-fund businesses. Generally, fund-specific expenses are allocated to the Nuveen funds and partial fund-related expenses and/or corporate overhead and shared costs (such as legal and compliance, accounting and finance, information technology and human resources and office services) are partially attributed to the funds pursuant to cost allocation methodologies. The Independent Board Members have reviewed a description of the cost allocation methodologies employed to develop the financial information, a summary of the history of changes to the methodology over the years from 2010 to 2020, and the net revenue margins derived from the Nuveen funds (pre-tax and including and excluding distribution) and total company margins from Nuveen Investments, Inc. compared to the firm-wide adjusted

 

94


 

margins of the peers for each calendar year from 2010 to 2020. The Board had also appointed three Independent Board Members to serve as the Board’s liaisons, with the assistance of independent counsel, to review the development of the profitability data and any proposed changes to the cost allocation methodology prior to incorporating any such changes and to report to the full Board. The Board has recognized that other reasonable and valid allocation methodologies could be employed and could lead to significantly different results. The Independent Board Members have also considered the key drivers behind the revenue and expense changes that impacted Nuveen’s net margins between 2019 and 2020. The Board has also noted the reinvestments Nuveen and/or its parent have made into its business through, among other things, the investment of seed capital in certain Nuveen funds and continued investments in enhancements to information technology, portfolio accounting systems and the global trading platform.

In reviewing the comparative peer data noted above, the Board has considered that the operating margins of Nuveen Investments, Inc. were in the lower half of the peer group range; however, the Independent Board Members have also recognized the limitations of the comparative data given that peer data is not generally public and the calculation of profitability is subjective and affected by numerous factors (such as types of funds a peer manages, its business mix, its cost of capital, the numerous assumptions underlying the methodology used to allocate expenses and other factors) that can have a significant impact on the results.

Aside from Nuveen’s profitability, the Board has recognized that the Adviser is a subsidiary of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). Accordingly, the Board has also reviewed a balance sheet for TIAA reflecting its assets, liabilities and capital and contingency reserves for the 2020 and 2019 calendar years to consider the financial strength of TIAA. The Board has recognized the benefit of an investment adviser and its parent with significant resources, particularly during periods of market volatility as experienced with the COVID-19 pandemic.

In addition to Nuveen, the Independent Board Members have also considered the profitability of the Sub-Adviser from its relationships with the Nuveen funds. In this regard, the Independent Board Members have reviewed, among other things, the Sub-Adviser’s revenues, expenses and net revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2020 as well as its pre- and post-tax net revenue margins for 2020 compared to such margins for 2019. The Independent Board Members have also reviewed a profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for the Sub-Adviser for the calendar year ending December 31, 2020 and the pre- and post-tax revenue margins from 2020 and 2019.

In evaluating the reasonableness of compensation, the Independent Board Members have also considered any other ancillary benefits derived by the respective Fund Adviser from its relationship with the Nuveen funds as discussed in further detail below.

Based on a consideration of all the information provided, the Board has noted that Nuveen’s and the Sub-Adviser’s level of profitability was acceptable and not unreasonable in light of the services to be provided.

 

D.   Economies of Scale and Whether Fee Levels Reflect These Economies of Scale

The Board considered whether the Fund could be expected to benefit from any economies of scale. The Board has recognized that although economies of scale are difficult to measure and certain expenses may not decline with a rise in assets, there are several methods to help share the benefits of economies of scale, including breakpoints in the management fee schedule, fee waivers and/or expense limitations, the pricing of Nuveen funds at scale at inception and investments in Nuveen’s business which can enhance the services provided to the funds for the fees paid. The Board has noted that Nuveen generally has employed these various methods with respect to the Nuveen funds. In this regard, the Board has noted that the management fee of the Adviser is generally comprised of a fund-level component and a complex-level component, each with its own breakpoint schedule, subject to certain exceptions. In general terms, the fund-level breakpoint schedules are designed to share economies of scale with shareholders if the particular fund grows, and the complex-level breakpoint schedule is designed to deliver the benefits of economies of scale to shareholders when the eligible assets in the complex pass certain thresholds even if the assets of a particular fund are unchanged or have declined. Accordingly, the Independent Board

 

95


Annual Investment Management Agreement Approval Process (continued)

(Unaudited)

 

Members reviewed and considered the proposed management fees for the Fund, taking into account the fund-level and complex-level breakpoint schedules. In this regard, however, the Fund is a closed-end fund and the Independent Board Members have recognized that although closed-end funds may from time to time make additional share offerings, the growth of their assets would occur primarily through the appreciation of such funds’ investment portfolios.

The Independent Board Members have also recognized the Adviser’s continued reinvestment in its business through various initiatives including maintaining a seed account available for investments into Nuveen funds and investing in its internal infrastructure, information technology and other systems that will, among other things, consolidate and enhance accounting systems, integrate technology platforms to support growth and efficient data processing, and further develop its global trading platform to enhance the investment process for the investment teams.

Based on its review, the Board concluded that the proposed fee structure was acceptable and reflected economies of scale to be shared with the Fund’s shareholders when assets under management increase.

 

E.   Indirect Benefits

The Independent Board Members received and considered information at the Meeting and/or at prior meetings regarding other benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Nuveen funds. With respect to closed-end funds, the Board has considered the compensation received by an affiliate of the Adviser for serving as co-manager in the initial public offerings of new closed-end funds and for serving as an underwriter on shelf offerings of existing closed-end funds. In addition, the Independent Board Members have noted that various sub-advisers (including the Sub-Adviser) may engage in soft dollar transactions pursuant to which they may receive the benefit of research products and other services provided by broker-dealers executing portfolio transactions on behalf of the applicable Nuveen funds. The Board, however, has noted that the benefits for the Sub-Adviser when transacting in fixed-income securities may be more limited as such securities generally trade on a principal basis and therefore do not generate brokerage commissions.

Based on its review, the Board concluded that any indirect benefits expected to be received by a Fund Adviser as a result of its relationship with the Fund were reasonable and within acceptable parameters.

 

F.   Approval

The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including a majority of the Independent Board Members, concluded that the terms of the Investment Management Agreement and the Sub-Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services expected to be provided to the Fund and that the Investment Management Agreement and Sub-Advisory Agreement should be and were approved on behalf of the Fund.

 

96


Notes

 

 

97


Notes

 

 

98


Notes

 

 

99


LOGO

 

Nuveen:

Serving Investors for Generations

Since 1898, financial professionals 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 professional, 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-0122D        2057619-INV-B-03/23


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 & Income Opportunities Fund

 

By (Signature and Title)   

/s/ Mark L. Winget

  
   Mark L. Winget   
   Vice President and Secretary   

Date: April 7, 2022

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/ David J. Lamb

  
   David J. Lamb   
   Chief Administrative Officer   
   (principal executive officer)   

Date: April 7, 2022

 

By (Signature and Title)   

/s/ E. Scott Wickerham

  
   E. Scott Wickerham   
   Vice President and Controller   
   (principal financial officer)   

Date: April 7, 2022

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