N-Q 1 c50563nvq.htm FORM N-Q FORM N-Q
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21407
Nuveen Diversified Dividend and Income Fund
(Exact name of registrant as specified in charter)
     333 West Wacker Drive, Chicago, Illinois 60606     
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy—Vice President and Secretary
     333 West Wacker Drive, Chicago, Illinois 60606     
(Name and address of agent for service)
Registrant’s telephone number, including area code:      312-917-7700     
Date of fiscal year end:        12/31      
Date of reporting period:    3/31/2009   
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.
 
 

 

 

Item 1. Schedule of Investments
Portfolio of Investments (Unaudited)
Nuveen Diversified Dividend and Income Fund (JDD)
March 31, 2009
                             
Shares     Description (1)               Value  
 
 
 
                    
        Common Stocks – 37.0% (25.4% of Total Investments)
 
 
                    
 
Aerospace & Defense – 3.6%
 
 
                    
  16,700    
Lockheed Martin Corporation
               $ 1,152,801  
  45,600    
Northrop Grumman Corporation
                 1,989,984  
  52,200    
Raytheon Company
                 2,032,668  
 
 
Total Aerospace & Defense
                 5,175,453  
   
 
 
                    
 
Commercial Banks – 2.3%
 
 
                    
  72,400    
JPMorgan Chase & Co.
                 1,924,392  
  94,500    
Wells Fargo & Company
                 1,345,680  
 
 
Total Commercial Banks
                 3,270,072  
         
 
 
                    
 
Commercial Services & Supplies – 2.2%
 
 
                    
  135,100    
Pitney Bowes Inc.
                 3,154,585  
 
 
 
                    
 
Containers & Packaging – 0.9%
 
 
                    
  95,000    
Packaging Corp. of America
                 1,236,900  
 
 
 
                    
 
Diversified Telecommunication Services – 2.1%
 
 
                    
  49,000    
AT&T Inc.
                 1,234,800  
  60,000    
Verizon Communications Inc.
                 1,812,000  
 
 
Total Diversified Telecommunication Services
                 3,046,800  
         
 
 
                    
 
Electric Utilities – 0.8%
 
 
                    
  32,200    
EDP – Energias de Portugal, S.A., Sponsored ADR
                 1,124,746  
 
 
 
                    
 
Food Products – 0.9%
 
 
                    
  55,722    
Kraft Foods Inc.
                 1,242,043  
 
 
 
                    
 
Hotels, Restaurants & Leisure – 1.0%
 
 
                    
  118,000    
Starwood Hotels & Resorts Worldwide, Inc.
                 1,498,600  
 
 
 
                    
 
Household Products – 0.8%
 
 
                    
  25,000    
Kimberly-Clark Corporation
                 1,152,750  
 
 
 
                    
 
Industrial Conglomerates – 0.6%
 
 
                    
  80,000    
General Electric Company
                 808,800  
 
 
 
                    
 
Insurance – 3.5%
 
 
                    
  65,400    
Hartford Financial Services Group, Inc.
                 513,390  
  90,900    
MetLife, Inc.
                 2,069,793  
  60,500    
Travelers Companies, Inc.
                 2,458,720  
 
 
Total Insurance
                 5,041,903  
         
 
 
                    
 
Machinery – 1.9%
 
 
                    
  32,700    
Caterpillar Inc.
                 914,292  
  36,000    
Illinois Tool Works Inc.
                 1,110,600  
  53,000    
Ingersoll Rand Company Limited, Class A
                 731,400  
 
 
Total Machinery
                 2,756,292  
         
 
 
                    
 
Media – 0.1%
 
 
                    
  55,000    
CBS Corporation, Class B
                 211,200  
 
 
 
                    
 
Metals & Mining – 2.0%
 
 
                    
  48,000    
Barrick Gold Corporation
                 1,556,160  
  13,000    
POSCO, ADR
                 868,790  
  23,000    
United States Steel Corporation
                 485,990  
 
 
Total Metals & Mining
                 2,910,940  
         
 
 
                    
 
Multi-Utilities – 0.6%
 
 
                    
  63,981    
United Utilities PLC, Sponsored ADR
                 882,938  
 
 
 
                    
 
Oil, Gas & Consumable Fuels – 4.3%
 
 
                    
  20,000    
Chevron Corporation
                 1,344,800  
  37,900    
ConocoPhillips
                 1,484,164  
  50,000    
Eni S.p.A., Sponsored ADR
                 1,916,000  
  30,000    
Total S.A., Sponsored ADR
                 1,471,800  
 
 
Total Oil, Gas & Consumable Fuels
                 6,216,764  
         
 
 
                    
 
Pharmaceuticals – 4.6%
 
 
                    
  43,400    
GlaxoSmithKline PLC, ADR
                 1,348,438  
  63,100    
Merck & Co. Inc.
                 1,687,925  
  117,800    
Pfizer Inc.
                 1,604,436  
  68,000    
Sanofi-Aventis, ADR
                 1,899,240  
 
 
Total Pharmaceuticals
                 6,540,039  
         
 
 
                    
 
Road & Rail – 0.6%
 
 
                    
  21,500    
Union Pacific Corporation
                 883,865  
 
 
 
                    
 
Software – 2.1%
 
 
                    
  83,700    
CA Inc.
                 1,473,957  
  79,800    
Microsoft Corporation
                 1,465,926  
 
 
Total Software
                 2,939,883  
         
 
 
                    
 
Tobacco – 2.1%
 
 
                    
  21,900    
Lorillard Inc.
                 1,352,106  
  46,300    
Philip Morris International
                 1,647,354  
 
 
Total Tobacco
                 2,999,460  
         
 
Total Common Stocks (cost $70,757,855)
                 53,094,033  
         
                             
Shares     Description (1)               Value  
 
 
 
                    
        Real Estate Investment Trust Common Stocks – 21.9% (15.0% of Total Investments)
 
 
                    
 
Diversified - 0.7%
                    
  30,500    
Vornado Realty Trust
               $ 1,013,820  
 
 
Industrial - 0.0%
                    
  21,600    
First Industrial Realty Trust, Inc.
                 52,920  
 
 
Office - 4.5%
                    
  54,400    
Boston Properties, Inc.
                 1,905,632  
  200,300    
Brandywine Realty Trust
                 570,855  
  194,000    
Douglas Emmett Inc.
                 1,433,660  
  93,600    
Mack-Cali Realty Corporation
                 1,854,216  
  61,900    
SL Green Realty Corporation
                 668,520  
 
 
Total Office
                 6,432,883  
         
 
Residential - 5.0%
                    
  192,526    
Apartment Investment & Management Company, Class A
                 1,055,042  
  38,375    
AvalonBay Communities, Inc.
                 1,805,928  
  66,500    
Camden Property Trust
                 1,435,070  
  81,500    
Equity Residential
                 1,495,525  
  132,600    
Post Properties, Inc.
                 1,344,564  
 
 
Total Residential
                 7,136,129  
         
 
Retail - 4.4%
                    
  50,900    
Federal Realty Investment Trust
                 2,341,399  
  95,200    
Macerich Company
                 595,952  
  40,000    
Regency Centers Corporation
                 1,062,800  
  35,520    
Simon Property Group, Inc.
                 1,230,413  
  66,600    
Taubman Centers Inc.
                 1,134,864  
 
 
Total Retail
                 6,365,428  
         
 
Specialized - 7.3%
                    
  74,557    
Cogdell Spencer Inc.
                 380,241  
  351,400    
DiamondRock Hospitality Company
                 1,409,114  
  229,400    
Extra Space Storage Inc.
                 1,263,994  
  79,600    
Health Care Property Investors Inc.
                 1,420,860  
  139,800    
Host Hotels & Resorts Inc.
                 548,016  
  28,874    
Public Storage, Inc.
                 1,595,289  
  137,500    
Senior Housing Properties Trust
                 1,927,750  
  82,400    
Ventas Inc.
                 1,863,064  
 
 
Total Specialized
                 10,408,328  
         
 
Total Real Estate Investment Trust Common Stocks (cost $74,491,917)
                 31,409,508  
         
                             
Shares     Description (1)   Coupon       Ratings (2)   Value  
 
 
 
                    
        Capital Preferred Securities – 0.9% (0.6% of Total Investments)
 
 
                    
 
Food Products – 0.9%
 
 
                    
  15    
HJ Heinz Finance Company, 144A
   8.000%       BB+   $ 1,297,500  
 
 
Total Capital Preferred Securities (cost $1,310,000)
                 1,297,500  
         
                             
          Weighted              
Principal         Average              
Amount (000)     Description (1)   Coupon   Maturity (3)   Ratings (2)   Value  
 
 
 
                    
        Variable Rate Senior Loan Interests – 45.1% (31.0% of Total Investments) (4)
 
 
                    
 
 
                    
 
Aerospace & Defense – 1.2%
 
 
                    
$ 1,163    
Hexcel Corporation, Term Loan B
   3.400%   3/01/12   BB+   $ 1,035,044  
  694    
Vought Aircraft Industries, Inc., Term Loan
   3.020%   12/22/11   Ba3     551,444  
  242    
Vought Aircraft Industries, Inc., Tranche B, Letter of Credit
   2.936%   12/22/10   Ba3     179,394  
 
  2,099    
Total Aerospace & Defense
                 1,765,882  
 
 
 
                    
 
Building Products – 0.5%
 
 
                    
  955    
Stile Acquisition Corporation, Canadian Term Loan
   4.250%   4/05/13   Caa3     387,697  
  966    
Stile Acquisition Corporation, Term Loan B
   4.250%   4/05/13   Caa3     391,975  
 
  1,921    
Total Building Products
                 779,672  
 
 
 
                    
 
Chemicals – 2.6%
 
 
                    
  400    
Celanese US Holdings LLC, Credit Linked Deposit
   0.497%   4/02/14   BB+     343,727  
  916    
Celanese US Holdings LLC, Term Loan
   2.935%   4/02/14   BB+     787,095  
  874    
Georgia Gulf Corporation, Term Loan
   8.696%   10/03/13   B     383,307  
  1,950    
Hexion Specialty Chemicals, Inc., Term Loan C4
   3.438%   5/05/13   Ba3     585,000  
  1,890    
Rockwood Specialties Group, Inc., Term Loan E
   2.268%   7/30/12   BB+     1,661,851  
 
  6,030    
Total Chemicals
                 3,760,980  
 
 
 
                    
 
Containers & Packaging – 2.0%
 
 
                    
  2,759    
Graham Packaging Company, L.P., Term Loan
   3.567%   10/07/11   B+     2,366,705  
  122    
Smurfit-Stone Container Corporation, Canadian Revolver, (5)
   3.070%   11/01/09   N/R     81,985  
  74    
Smurfit-Stone Container Corporation, Deposit-Funded Commitment, (5)
   4.500%   11/01/11   N/R     49,564  
  84    
Smurfit-Stone Container Corporation, Term Loan B, (5)
   2.750%   11/01/11   N/R     56,406  
  158    
Smurfit-Stone Container Corporation, Term Loan C, (5)
   2.750%   11/01/11   N/R     106,760  
  48    
Smurfit-Stone Container Corporation, Tranche C1, (5)
   2.750%   11/01/11   N/R     32,278  
  312    
Smurfit-Stone Container Corporation, US Revolver, (5)
   3.070%   11/01/09   N/R     192,384  
 
  3,557    
Total Containers & Packaging
                 2,886,082  
 
 
 
                    
 
Diversified Consumer Services – 1.3%
 
 
                    
  1,955    
Weight Watchers International, Inc., Term Loan B
   2.381%   1/26/14   BB+     1,824,667  
 
 
 
                    
 
Diversified Telecommunication Services – 2.7%
 
 
                    
  1,931    
Intelsat, Tranche B, Term Loan
   3.925%   7/01/13   BB-     1,736,541  
  1,950    
MetroPCS Wireless, Inc., Term Loan
   3.213%   11/03/13   Ba2     1,779,646  
  458    
Verifone, Inc., Term Loan B
   3.270%   10/31/13   Ba2     372,863  
 
  4,339    
Total Diversified Telecommunication Services
                 3,889,050  
 
 
 
                    
 
Electric Utilities – 2.6%
 
 
                    
  1,702    
Dynegy Holdings, Inc., Delayed Term Loan
   2.020%   4/02/13   Ba1     1,490,426  
  293    
Dynegy Holdings, Inc., Term Loan
   2.020%   4/02/13   Ba1     256,912  
  1,970    
TXU Corporation, Term Loan B2
   4.033%   10/10/14   Ba3     1,306,972  
  987    
TXU Corporation, Term Loan B3
   4.033%   10/10/14   Ba3     653,493  
 
  4,952    
Total Electric Utilities
                 3,707,803  
 
 
 
                    
 
Electrical Equipment – 0.9%
 
 
                    
  1,409    
Sensus Metering Systems, Inc., Term Loan B1
   2.856%   12/17/10   BB     1,274,870  
 
 
 
                    
 
Electronic Equipment & Instruments – 0.3%
 
 
                    
  972    
Sensata Technologies B.V., Term Loan
   2.934%   4/27/13   B     420,120  
 
 
 
                    
 
Health Care Equipment & Supplies – 1.2%
 
 
                    
  1,980    
Biomet, Inc., Term Loan
   4.155%   3/24/15   BB-     1,790,274  
 
 
 
                    
 
Health Care Providers & Services – 4.5%
 
 
                    
  1,300    
Fresenius SE, Term Loan B1
   6.750%   7/06/14   BBB-     1,290,040  
  700    
Fresenius SE, Term Loan B2
   6.750%   7/06/14   BBB-     694,960  
  1,858    
Health Management Associates, Inc., Term Loan
   2.970%   2/28/14   BB-     1,512,531  
  1,940    
Quintiles Transnational Corporation, Term Loan B
   2.957%   3/29/13   BB     1,741,150  
  233    
United Surgical Partners International, Inc., Delayed Term Loan
   2.550%   4/18/14   Ba3     195,040  
  1,233    
United Surgical Partners International, Inc., Term Loan
   2.840%   4/18/14   Ba3     1,032,556  
 
  7,264    
Total Health Care Providers & Services
                 6,466,277  
 
 
 
                    
 
Hotels, Restaurants & Leisure – 2.5%
 
 
                    
  1,940    
24 Hour Fitness Worldwide, Inc., Term Loan B
   3.489%   6/08/12   Ba3     989,400  
  763    
CBRL Group, Inc., Term Loan B1
   2.688%   4/27/13   BB-     657,589  
  92    
CBRL Group, Inc., Term Loan B2
   2.000%   4/28/13   BB-     79,108  
  89    
Travelport LLC, Letter of Credit
   3.470%   8/23/13   Ba2     52,344  
  445    
Travelport LLC, Term Loan
   3.023%   8/23/13   Ba2     260,869  
  595    
Venetian Casino Resort LLC, Delayed Term Loan
   2.270%   5/23/14   B-     318,965  
  2,358    
Venetian Casino Resort LLC, Term Loan
   2.270%   5/23/14   B-     1,263,004  
 
  6,282    
Total Hotels, Restaurants & Leisure
                 3,621,279  
 
 
 
                    
 
Independent Power Producers & Energy Traders – 1.8%
 
 
                    
  750    
Kgen LLC, Synthetic Letter of Credit
   3.000%   2/05/14   BB     521,250  
  1,222    
Kgen LLC, Term Loan B
   2.313%   2/05/14   BB     849,203  
  469    
NRG Energy, Inc., Credit Linked Deposit
   2.720%   2/01/13   Ba1     422,962  
  877    
NRG Energy, Inc., Term Loan
   2.720%   2/01/13   Ba1     791,621  
 
  3,318    
Total Independent Power Producers & Energy Traders
                 2,585,036  
 
 
 
                    
 
Insurance – 0.3%
 
 
                    
  1,152    
Conseco, Inc., Term Loan
   2.564%   10/10/13   Caa1     374,294  
 
 
 
                    
 
IT Services – 2.1%
 
 
                    
  1,970    
First Data Corporation, Term Loan B1
   3.272%   9/24/14   Ba3     1,334,552  
  2,017    
SunGard Data Systems, Inc., Term Loan B
   2.696%   2/28/14   BB     1,719,112  
 
  3,987    
Total IT Services
                 3,053,664  
 
 
 
                    
 
Machinery – 1.0%
 
 
                    
  1,995    
Manitowoc Company, Term Loan
   6.500%   11/06/14   BB+     1,433,906  
 
 
 
                    
 
Media – 10.4%
 
 
                    
  1,965    
CanWest Mediaworks LP, Term Loan
   3.256%   7/10/15   B3     751,612  
  980    
Cequel Communications LLC, Term Loan B
   2.521%   11/05/13   BB-     849,878  
  2,173    
Charter Communications Operating Holdings LLC, Term Loan
   3.211%   3/06/14   B1     1,783,261  
  1,965    
Discovery Communications Holdings LLC, Term Loan
   3.220%   5/14/14   N/R     1,824,191  
  1,852    
Emmis Operating Company, Term Loan
   2.288%   11/01/13   B+     780,202  
  1,955    
Idearc, Inc., Term Loan (5), (6)
   3.220%   11/17/14   B3     755,119  
  965    
Metro-Goldwyn-Mayer Studios, Inc., Term Loan B
   3.768%   4/08/12   N/R     435,915  
  1,950    
Neilsen Finance LLC, Term Loan
   2.533%   8/09/13   Ba3     1,526,433  
  1,975    
Tribune Company, Term Loan B (5), (6)
   0.000%   6/04/14   Ca     522,316  
  341    
Tribune Company, Term Loan X (5), (6)
   0.000%   6/04/09   Ca     88,576  
  2,000    
Univision Communications, Inc., Term Loan
   2.768%   9/29/14   B2     1,048,750  
  2,000    
UPC Broadband Holding BV, Term Loan N
   2.247%   12/31/14   Ba3     1,738,000  
  1,887    
WMG Acquisition Corporation, Term Loan
   2.982%   2/28/11   BB     1,666,244  
  2,000    
Yell Group PLC, Term Loan
   3.518%   10/27/12   N/R     1,135,000  
 
  24,008    
Total Media
                 14,905,497  
 
 
 
                    
 
Metals & Mining – 1.0%
 
 
                    
  669    
Amsted Industries, Inc., Delayed Term Loan
   3.243%   4/06/13   BB     605,362  
  921    
Amsted Industries, Inc., Term Loan
   3.124%   4/06/13   BB     833,559  
 
  1,590    
Total Metals & Mining
                 1,438,921  
 
 
 
                    
 
Paper & Forest Products – 0.9%
 
 
                    
  1,450    
Georgia-Pacific Corporation, Term Loan B
   3.258%   12/21/12   BB+     1,282,771  
 
 
 
                    
 
Pharmaceuticals – 1.4%
 
 
                    
  2,118    
Mylan Laboratories, Inc., Term Loan
   4.367%   10/02/14   BB     1,972,232  
 
 
 
                    
 
Real Estate Management & Development – 0.5%
 
 
                    
  1,320    
LNR Property Corporation, Term Loan B
   4.000%   7/12/11   BB     717,750  
 
 
 
                    
 
Road & Rail – 1.0%
 
 
                    
  111    
Hertz Corporation, Letter of Credit
   3.477%   12/21/12   BB+     84,667  
  608    
Hertz Corporation, Term Loan
   2.297%   12/21/12   BB+     463,571  
  1,767    
Swift Transportation Company, Inc., Term Loan
   3.750%   5/10/14   B-     905,815  
 
  2,486    
Total Road & Rail
                 1,454,053  
 
 
 
                    
 
Specialty Retail – 0.5%
 
 
                    
  1,480    
TRU 2005 RE Holding Co I LLC, Term Loan
   3.497%   12/08/09   B3     680,949  
 
 
 
                    
 
Textiles, Apparel & Luxury Goods – 0.8%
 
 
                    
  1,216    
HBI Branded Apparel Limited, Inc., Term Loan
   5.909%   9/05/13   BB+     1,165,474  
 
 
 
                    
 
Trading Companies & Distributors – 1.1%
 
 
                    
  912    
Ashtead Group Public Limited Company, Term Loan
   2.375%   8/31/11   BB+     775,200  
  196    
Brenntag Holdings GmbH & Co. KG, Acquisition Facility
   2.598%   1/20/14   B+     144,327  
  804    
Brenntag Holdings GmbH & Co. KG, Facility B2
   3.206%   1/20/14   B+     590,673  
 
  1,912    
Total Trading Companies & Distributors
                 1,510,200  
 
$ 90,792    
Total Variable Rate Senior Loan Interests (cost $90,610,599)
                 64,761,703  
 
                             
Principal                        
Amount (000) (7)     Description (1)   Coupon   Maturity   Ratings (2)   Value  
 
 
 
                    
        Emerging Markets Debt and Foreign Corporate Bonds – 32.6% (22.3% of Total Investments)
 
 
                    
 
Argentina – 0.4%
 
 
                    
$ 2,246    
Republic of Argentina
   8.280%   12/31/33   B-   $ 617,738  
 
 
 
                    
 
Brazil – 2.3%
 
 
                    
  900  BRL  
Banco ABN AMRO Real S.A., Reg S
   16.200%   2/22/10   N/R     398,836  
  190    
Centrais Eletricas Brasileiras S.A., 144A
   7.750%   11/30/15   BBB-     190,950  
  225    
Cia Brasileira de Bebidas
   10.500%   12/15/11   Baa1     254,475  
  695  BRL  
Companhia Energetica de Sao Paulo, Corporate Bond, 144A
   9.750%   1/15/15   Ba2     292,847  
  205    
Federative Republic of Brazil
   10.500%   7/14/14   BBB-     253,688  
  220    
Federative Republic of Brazil
   7.875%   3/07/15   BBB-     244,200  
  795  BRL  
Federative Republic of Brazil
   12.500%   1/05/22   BBB-     359,845  
  295    
Federative Republic of Brazil
   8.750%   2/04/25   BBB-     337,775  
  265    
Globo Comunicacao Participacoes, S.A., 144A
   7.250%   4/26/22   BBB+     229,225  
  65  BRL  
National Treasury Note of Brazil
   6.000%   5/15/15   Ba1     493,072  
  1,100  BRL  
RBS Zero Hora Editora Jornalistica S.A., 144A
   11.250%   6/15/17   BB     293,108  
 
 
Total Brazil
                 3,348,021  
         
 
 
                    
 
Chile – 2.7%
 
 
                    
  600    
Coldelco Inc., Reg S
   6.375%   11/30/12   A1     635,326  
  450    
Coporacion Nacional del Cobre de Chile, Reg S
   5.625%   9/21/35   A1     391,033  
  1,245    
Coporacion Nacional del Cobre de Chile, Reg S
   6.150%   10/24/36   A1     1,187,869  
  430    
Corporacion Nacional del Cobre, 144A
   5.500%   10/15/13   A1     445,168  
  240    
Corporacion Nacional del Cobre, 144A
   4.750%   10/15/14   A1     238,522  
  935    
Empresa Nacional del Petroleo, Reg S
   6.750%   11/15/12   A     958,550  
  55    
Empresa Nacional del Petroleo, 144A
   4.875%   3/15/14   A     50,963  
 
 
Total Chile
                 3,907,431  
         
 
 
                    
 
Colombia – 2.0%
 
 
                    
  480,000  COP  
Bogota Distrito Capital, Reg S
   9.750%   7/26/28   Baa3     160,213  
  135    
Republic of Colombia
   10.000%   1/23/12   BBB-     154,913  
  745    
Republic of Colombia
   7.375%   3/18/19   BBB-     746,863  
  335    
Republic of Colombia
   11.750%   2/25/20   BBB-     419,420  
  1,912,000  COP  
Republic of Colombia
   9.850%   6/28/27   BB+     746,686  
  700    
Republic of Colombia
   7.375%   9/18/37   BBB-     628,250  
 
 
Total Colombia
                 2,856,345  
         
 
 
                    
 
Dominican Republic – 0.7%
 
 
                    
  1,230    
Dominican Republic, Reg S
   9.040%   1/23/18   B     959,087  
 
 
 
                    
 
El Salvador – 1.0%
 
 
                    
  445    
Republic of El Salvador, Reg S
   7.750%   1/24/23   Baa3     422,750  
  860    
Republic of El Salvador, Reg S
   8.250%   4/10/32   Baa3     675,100  
  465    
Republic of El Salvador, Reg S
   7.625%   9/21/34   Baa3     383,625  
 
 
Total El Salvador
                 1,481,475  
         
 
 
                    
 
Gabon – 0.1%
 
 
                    
  185    
Republic of Gabon
   8.200%   12/12/17   BB-     137,825  
 
 
 
                    
 
Ghana – 0.4%
 
 
                    
  800    
Republic of Ghana, Reg S
   8.500%   10/04/17   B+     500,000  
 
 
 
                    
 
Hungary – 0.9%
 
 
                    
  108,000  HUF  
Republic of Hungary, Government Bond
   5.500%   2/12/14   Baa1     345,740  
  1,125    
Republic of Hungary, Treasury Bill
   4.750%   2/03/15   Baa1     955,383  
 
 
Total Hungary
                 1,301,123  
         
 
 
                    
 
India – 0.4%
 
 
                    
  905    
Vedanta Resources PLC, 144A
   9.500%   7/18/18   BB     574,675  
 
 
 
                    
 
Indonesia – 2.1%
 
 
                    
  255    
Majapahit Holdings B.V., 144A
   7.250%   10/17/11   BB-     234,600  
  745    
Majapahit Holdings B.V., Reg S
   7.250%   6/28/17   BB-     518,468  
  275    
Majapahit Holdings B.V., Reg S
   7.875%   6/28/37   BB-     157,280  
  320    
Republic of Indonesia
   10.375%   5/04/14   BB-     335,200  
  425    
Republic of Indonesia
   6.875%   1/17/18   BB-     341,063  
  320    
Republic of Indonesia
   11.625%   3/04/19   BB-     349,600  
  1,350    
Republic of Indonesia, 144A
   7.750%   1/17/38   BB-     1,053,000  
 
 
Total Indonesia
                 2,989,211  
         
 
 
                    
 
Israel – 0.5%
 
 
                    
  390    
Israel Electric Corporation Limited, 144A
   7.250%   1/15/19   BBB     392,141  
  310    
Israel Electric Corporation Limited, 144A
   9.375%   1/28/20   BBB     347,030  
 
 
Total Israel
                 739,171  
         
 
 
                    
 
Kazakhstan – 1.3%
 
 
                    
  454    
Intergas Finance B.V., Reg S
   6.375%   5/14/17   Baa1     265,590  
  465    
KazMuniaGaz Finance Subsidiary, 144A
   9.125%   7/02/18   Baa1     344,100  
  1,355    
KazMuniaGaz Finance Subsidiary, Reg S
   9.125%   7/02/18   Baa1     1,020,450  
  257    
Tengizchevroil LLP, 144A
   6.124%   11/15/14   Baa3     204,460  
 
 
Total Kazakhstan
                 1,834,600  
         
 
 
                    
 
Malaysia – 2.0%
 
 
                    
  950    
Penerbangan Malaysia Berhad, Reg S
   5.625%   3/15/16   A-     950,323  
  525    
Pertoliam Nasional Berhad, Reg S
   7.625%   10/15/26   A1     529,563  
  135    
Petroliam Nasional Berhad, Reg S
   7.750%   8/15/15   A1     151,663  
  140    
Petronas Capital Limited, Reg S
   7.000%   5/22/12   A1     149,984  
  1,100    
Republic of Malaysia
   8.750%   6/01/09   A-     1,110,538  
 
 
Total Malaysia
                 2,892,071  
         
 
 
                    
 
Mexico – 1.4%
 
 
                    
  618    
Conproca S.A., Reg S
   12.000%   6/16/10   BBB+     646,275  
  80    
Banco Mercantil del Norte, Reg S (8)
   6.135%   10/13/16   A3     52,484  
  2,825  MXN  
Mexico Bonos de DeSarrollo
   7.750%   12/14/17   A+     199,136  
  405    
Petroleos Mexicanos
   8.000%   5/03/19   BBB+     396,900  
  4,500  MXN  
United Mexican States
   8.000%   12/19/13   A+     327,329  
  356    
United Mexican States
   6.050%   1/11/40   BBB+     306,160  
 
 
Total Mexico
                 1,928,284  
         
 
 
                    
 
Morocco – 0.7%
 
 
                    
  755  EUR  
Kingdom of Morocco, Reg S
   5.375%   6/27/17   BBB-     948,457  
 
 
 
                    
 
Pakistan – 0.7%
 
 
                    
  885    
Islamic Republic of Pakistan, Reg S
   7.125%   3/31/16   B3     434,308  
  1,080    
Islamic Republic of Pakistan, Reg S
   6.875%   6/01/17   B3     531,900  
 
 
Total Pakistan
                 966,208  
         
 
 
                    
 
Panama – 0.8%
 
 
                    
  630    
Republic of Panama
   7.250%   3/15/15   BB+     645,750  
  479    
Republic of Panama
   9.375%   4/01/29   BB+     528,098  
 
 
Total Panama
                 1,173,848  
         
 
 
                    
 
Peru – 1.5%
 
 
                    
  340    
Republic of Peru
   9.125%   2/21/12   BBB-     383,180  
  175  EUR  
Republic of Peru
   7.500%   10/14/14   BBB-     232,156  
  215    
Republic of Peru
   8.375%   5/03/16   BBB-     239,833  
  505    
Republic of Peru
   7.125%   3/30/19   BBB-     512,449  
  325    
Republic of Peru
   7.350%   7/21/25   BBB-     328,250  
  525    
Republic of Peru
   6.550%   3/14/37   BBB-     472,500  
 
 
Total Peru
                 2,168,368  
         
 
 
                    
 
Philippines – 1.3%
 
 
                    
  255    
Bangko Sentral ng Pilipinas, Series A
   8.600%   6/15/27   BB-     246,712  
  220    
National Power Corporation, Reg S
   5.501%   8/23/11   BB-     218,396  
  265    
National Power Corporation, Reg S
   6.875%   11/02/16   BB-     248,354  
  380    
National Power Corporation
   9.625%   5/15/28   BB-     343,900  
  435  EUR  
Republic of the Philippines
   6.250%   3/15/16   BB-     505,698  
  235    
Republic of the Philippines
   8.375%   6/17/19   BB-     257,325  
 
 
Total Philippines
                 1,820,385  
         
 
 
                    
 
Poland – 0.8%
 
 
                    
  175    
Republic of Poland
   5.250%   1/15/14   A2     173,775  
  1,090    
Republic of Poland
   5.000%   10/19/15   A2     1,032,775  
 
 
Total Poland
                 1,206,550  
         
 
 
                    
 
Qatar – 0.4%
 
 
                    
  50    
Ras Laffan Liquefied Natural Gas Co., Ltd., 144A
   3.437%   9/15/09   Aa2     49,194  
  105    
Ras Laffan Liquified Natural Gas Company Limited, Reg S
   3.437%   9/15/09   Aa2     103,028  
  575    
Ras Laffan Liquified Natural Gas II, Reg S
   5.298%   9/30/20   Aa2     474,892  
 
 
Total Qatar
                 627,114  
         
 
 
                    
 
Russian Federation – 0.8%
 
 
                    
  165    
Gaz Capital S.A., Reg S
   8.625%   4/28/34   A3     149,325  
  410    
Russian Agricultural Bank
   6.299%   5/15/17   Baa1     293,150  
  745    
Russia Federation, Reg S
   7.500%   3/31/30   Baa1     709,742  
 
 
Total Russian Federation
                 1,152,217  
         
 
 
                    
 
Serbia – 1.1%
 
 
                    
  1,375    
Republic of Serbia, 144A
   3.750%   11/01/24   BB-     976,250  
  775    
Republic of Serbia, Reg S
   3.750%   11/01/24   BB-     550,560  
 
 
Total Serbia
                 1,526,810  
         
 
 
                    
 
South Africa – 1.7%
 
 
                    
  1,205    
Republic of South Africa
   7.375%   4/25/12   BBB+     1,247,175  
  1,315    
Republic of South Africa
   5.875%   5/30/22   BBB+     1,186,788  
 
 
Total South Africa
                 2,433,963  
         
 
 
                    
 
Tunisia – 1.6%
 
 
                    
  2,165    
Banque de Tunisie
   7.375%   4/25/12   BBB     2,197,474  
  110  EUR  
Banque de Tunisie, Reg S
   4.500%   6/22/20   BBB     103,033  
 
 
Total Tunisia
                 2,300,507  
         
 
 
                    
 
Turkey – 0.5%
 
 
                    
  513  TRY  
Republic of Turkey, Government Bond
   10.000%   2/15/12   BB     287,824  
  575    
Republic of Turkey, Government Bond
   7.250%   3/05/38   BB-     468,625  
 
 
Total Turkey
                 756,449  
         
 
 
                    
 
Ukraine – 0.2%
 
 
                    
  535    
Republic of Ukraine, Reg S
   6.875%   3/04/11   B1     294,164  
 
 
 
                    
 
Uruguay – 1.3%
 
 
                    
  1,222    
Oriental Republic of Uruguay
   7.625%   3/21/36   BB     983,431  
  830    
Republic of Uruguay
   8.000%   11/18/22   BB     752,644  
  117    
Republic of Uruguay
   7.875%   1/15/33   BB     96,784  
 
 
Total Uruguay
                 1,832,859  
         
 
 
                    
 
United Arab Emirates – 0.3%
 
 
                    
  435    
Abu Dhabi National Energy Company, 144A
   7.250%   8/01/18   Aa2     415,523  
 
 
 
                    
 
United States – 0.2%
                    
 
 
                    
  295    
Petrobras International Finance Company
   7.875%   3/15/19   Baa1     307,154  
 
 
 
                    
 
Venezuela – 0.5%
 
 
                    
  605    
Republic of Venezuela
   9.250%   9/15/27   BB-     353,925  
  95    
Republic of Venezuela, Reg S
   9.250%   5/07/28   BB-     48,260  
  615    
Republic of Venezuela
   9.375%   1/13/34   BB-     318,263  
 
 
Total Venezuela
                 720,448  
         
 
Total Emerging Markets Debt and Foreign Corporate Bonds (cost $51,148,211)
                 46,718,081  
         
                             
Principal                        
Amount (000)     Description (1)   Coupon   Maturity       Value  
 
 
 
                    
        Short-Term Investments – 8.3% (5.7% of Total Investments)
 
 
                    
$ 11,899    
Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/09,
   0.100%   4/01/09       $ 11,899,484  
 
repurchase price $11,899,517, collateralized by $7,940,000 U.S. Treasury Bonds, 7.500%, due 11/15/24, value $12,138,672
                    
   
 
Total Short-Term Investments (cost $11,899,484)
                 11,899,484  
         
 
Total Investments (cost $300,218,066) – 145.8%
                 209,180,309  
         
 
Other Assets Less Liabilities – (0.5)%
                 (698,970 )
         
 
FundPreferred Shares, at Liquidation Value – (45.3)% (9)
                 (65,000,000 )
         
 
Net Assets Applicable to Common Shares – 100%
                 $143,481,339  
         
Investments in Derivatives
Forward Foreign Currency Exchange Contracts outstanding at March 31, 2009:
                                 
                            Unrealized  
                            Appreciation  
    Amount     In Exchange For   Amount     Settlement   (Depreciation)  
Currency Contracts to Deliver   (Local Currency)     Currency   (Local Currency)     Date   (U.S. Dollars)  
 
Brazilian Real
     1,700,000     U.S. Dollar     714,136     6/17/09   $ (5,327 )
Brazilian Real
     1,700,000     U.S. Dollar     713,686     6/17/09     (5,777 )
Brazilian Real
     801,000     U.S. Dollar     336,060     6/17/09     (2,933 )
Brazilian Real
     125,000     U.S. Dollar     54,395     6/17/09     1,493  
Colombian Peso
     888,696,000     U.S. Dollar     371,995     4/23/09     23,240  
Colombian Peso
     1,650,434,000     U.S. Dollar     690,269     4/23/09     42,582  
Euro
     1,305,000     U.S. Dollar     1,658,616     6/17/09     (75,370 )
Euro
     37,000     U.S. Dollar     47,832     6/17/09     (1,331 )
Euro
     194,000     U.S. Dollar     262,851     6/17/09     5,078  
Euro
     50,000     U.S. Dollar     66,260     6/17/09     (176 )
Hungarian Forint
     41,800,000     U.S. Dollar     172,513     6/17/09     (4,744 )
Hungarian Forint
     41,800,000     U.S. Dollar     173,106     6/17/09     (4,150 )
Indonesian Rupiah
     5,605,688,000     U.S. Dollar     559,450     7/16/09     87,990  
Kazakhstan Tenge
     68,500,000     U.S. Dollar     538,099     5/15/09     88,770  
Mexican Peso
     7,715,000     U.S. Dollar     496,621     6/17/09     (40,814 )
New Romanian Leu
     834,000     U.S. Dollar     231,931     6/17/09     (22,339 )
Peruvian Nouveau Sol
     700,000     U.S. Dollar     219,298     6/05/09     (875 )
South Korean Won
     618,144,000     U.S. Dollar     614,000     7/01/09     165,674  
Turkish New Lira
     503,000     U.S. Dollar     277,563     6/17/09     (19,204 )
U.S. Dollar
     247,660     Euro     195,000     6/17/09     11,442  
U.S. Dollar
     17,717     Euro     13,000     6/17/09     (444 )
U.S. Dollar
     576,420     Indonesian Rupiah     5,605,688,000     7/16/09     (104,960 )
U.S. Dollar
     200,637     Kazakhstan Tenge     31,500,000     5/15/09     5,989  
U.S. Dollar
     509,062     Mexican Peso     7,300,000     6/17/09     (537 )
U.S. Dollar
     254,101     New Romanian Leu     834,000     6/17/09     168  
U.S. Dollar
     547,515     South Korean Won     618,144,000     7/01/09     (99,189 )
U.S. Dollar
     400,588     Yuan Renminbi     2,723,000     9/21/09     (1,218 )
U.S. Dollar
     394,559     Yuan Renminbi     2,683,000     9/21/09     (1,055 )
U.S. Dollar
     400,765     Yuan Renminbi     2,724,000     9/21/09     (1,248 )
Vietnamese Dong
     7,476,200,000     U.S. Dollar     393,484     5/29/09     (21,918 )
Yuan Renminbi
     2,522,000     U.S. Dollar     359,772     9/21/09     (10,119 )
Yuan Renminbi
     3,085,000     U.S. Dollar     440,872     9/21/09     (11,591 )
Yuan Renminbi
     2,523,000     U.S. Dollar     359,914     9/21/09     (10,123 )
Yuan Renminbi
     1,680,000     U.S. Dollar     239,658     2/22/10     (6,969 )
 
 
                           $ (19,985 )
 
Fair Value Measurements
During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No. 157) “Fair Value Measurements.” SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:
  Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
  Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the Fund’s fair value measurements as of March 31, 2009:
                                 
    Level 1     Level 2     Level 3     Total  
 
Investments
   $ 94,395,341     $ 114,732,484     $ 52,484     $ 209,180,309  
Derivatives*
     —       (19,985 )     —       (19,985 )
 
Total
   $ 94,395,341     $ 114,712,499     $ 52,484     $ 209,160,324  
 
* Represents net unrealized appreciation (depreciation). Derivatives may include outstanding futures, forward and swap contracts.
The following is a reconciliation of the Fund’s Level 3 investments held at the beginning and end of the measurement period:
         
    Level 3  
    Investments  
 
Balance at beginning of period
   $ 1,269,746  
Gains (losses):
        
Net realized gains (losses)
     —  
Net change in unrealized appreciation (depreciation)
     86,947  
Net purchases at cost (sales at proceeds)
     54,800  
Net discounts (premiums)
     2,504  
Net transfers in to (out of) at end of period fair value
     (1,361,513 )
 
Balance at end of period
   $ 52,484  
 
Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, recognition of premium amortization, recognition of income on REIT investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
At March 31, 2009, the cost of investments was $302,223,350.
Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2009, were as follows:
         
 
 
        
Gross unrealized:
        
Appreciation
   $ 6,704,385  
Depreciation
     (99,747,426 )
 
        
 
 
        
Net unrealized appreciation (depreciation) of investments
   $ (93,043,041 )
 
     
 (1)  
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
   
 
 (2)  
Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
   
 
 (3)  
Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result, the actual remaining maturity of Senior Loans held may be substantially less than the stated maturities shown.
   
 
 (4)  
Senior Loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks.
   
 
   
Senior Loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan.
   
 
 (5)  
This issue is under the protection of the Federal Bankruptcy Court.
   
 
 (6)  
Non-income producing; denotes that the issuer has defaulted on the payment of principal or interest or has filed for bankruptcy.
   
 
 (7)  
Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted.
   
 
 (8)  
Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees.
   
 
 (9)  
FundPreferred Shares, at Liquidation Value as a percentage of Total Investments is 31.1%.
   
 
N/R  
Not Rated.
   
 
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.
   
 
ADR  
American Depositary Receipt.
   
 
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.
   
 
BRL  
Brazilian Real
   
 
COP  
Colombian Peso
   
 
EUR  
Euro
   
 
HUF  
Hungarian Forint
   
 
MXN  
Mexican Peso
   
 
TRY  
Turkish New Lira

 

Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
File as exhibits as part of this Form 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)), exactly as set forth below: EX-99 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 Diversified Dividend and Income Fund
         
     
By (Signature and Title)  /s/ Kevin J. McCarthy    
  Kevin J. McCarthy  
  Vice President and Secretary   
 
Date May 29, 2009
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/ Gifford R. Zimmerman    
  Gifford R. Zimmerman   
  Chief Administrative Officer (principal executive officer)   
 
Date May 29, 2009
         
     
By (Signature and Title)  /s/ Stephen D. Foy    
  Stephen D. Foy   
  Vice President and Controller (principal financial officer)   
 
Date May 29, 2009