-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SNZte2WB0jMFLY/anWKB8wJpQ/RZd85Ha7sdmzgT3vRzRFqlVoKeREQozjemBQlG xjlux6lon+QGfyNIdosqcg== 0001193125-06-187482.txt : 20060908 0001193125-06-187482.hdr.sgml : 20060908 20060908103404 ACCESSION NUMBER: 0001193125-06-187482 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060630 FILED AS OF DATE: 20060908 DATE AS OF CHANGE: 20060908 EFFECTIVENESS DATE: 20060908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN INVESTMENT TRUST CENTRAL INDEX KEY: 0001013881 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07619 FILM NUMBER: 061080632 BUSINESS ADDRESS: STREET 1: JOHN NUVEEN & CO INC STREET 2: 333 WEST WACKER DRIVE 32ND FLOOR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 312-917-8146 MAIL ADDRESS: STREET 1: JOHN NUVEEN & CO INC STREET 2: 333 WEST WACKER DRIVE 32ND FLOOR CITY: CHICAGO STATE: IL ZIP: 60606 0001013881 S000000602 Nuveen Large-Cap Value Fund C000001688 Nuveen Large-Cap Value Fund - Class A NNGAX C000001689 Nuveen Large-Cap Value Fund - Class B NNGBX C000001690 Nuveen Large-Cap Value Fund - Class C NNGCX C000001691 Nuveen Large-Cap Value Fund - Class R NNGRX 0001013881 S000000603 Nuveen Balanced Stock and Bond Fund C000001692 Nuveen Balanced Stock and Bond Fund - Class A NNSAX C000001693 Nuveen Balanced Stock and Bond Fund - Class B NNSBX C000001694 Nuveen Balanced Stock and Bond Fund - Class C NUVCX C000001695 Nuveen Balanced Stock and Bond Fund - Class R NNSRX 0001013881 S000000604 Nuveen Balanced Municipal and Stock Fund C000001696 Nuveen Balanced Municipal and Stock Fund - Class A NBMSX C000001697 Nuveen Balanced Municipal and Stock Fund - Class B NMNBX C000001698 Nuveen Balanced Municipal and Stock Fund - Class C NBMCX C000001699 Nuveen Balanced Municipal and Stock Fund - Class R NMNRX 0001013881 S000000605 Nuveen NWQ Multi-Cap Value Fund C000001700 Nuveen NWQ Multi-Cap Value Fund - Class A NQVAX C000001701 Nuveen NWQ Multi-Cap Value Fund - Class B NQVBX C000001702 Nuveen NWQ Multi-Cap Value Fund - Class C NQVCX C000001703 Nuveen NWQ Multi-Cap Value Fund - Class R NQVRX 0001013881 S000000606 Nuveen NWQ Small-Cap Value Fund C000001704 Nuveen NWQ Small-Cap Value Fund - Class A NSCAX C000001705 Nuveen NWQ Small-Cap Value Fund - Class B NSCBX C000001706 Nuveen NWQ Small-Cap Value Fund - Class C NSCCX C000001707 Nuveen NWQ Small-Cap Value Fund - Class R NSCRX 0001013881 S000000607 Nuveen Tradewinds Value Opportunities Fund C000001708 Nuveen Tradewinds Value Opportunities Fund - Class A NVOAX C000001709 Nuveen Tradewinds Value Opportunities Fund - Class B NVOBX C000001710 Nuveen Tradewinds Value Opportunities Fund - Class C NVOCX C000001711 Nuveen Tradewinds Value Opportunities Fund - Class R NVORX 0001013881 S000000608 Nuveen NWQ Global Value Fund C000001712 Nuveen NWQ Global Value Fund - Class A NGOAX C000001713 Nuveen NWQ Global Value Fund - Class B NGVBX C000001714 Nuveen NWQ Global Value Fund - Class C NGVCX C000001715 Nuveen NWQ Global Value Fund - Class R NGVRX N-CSR 1 dncsr.txt NUVEEN INVESTMENT TRUST 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 811-07619 Nuveen Investment Trust - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Jessica R. Droeger 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: June 30 ------------ Date of reporting period: June 30, 2006 ------------------ 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. NUVEEN INVESTMENTS VALUED AND BALANCED FUNDS Annual Report For investors seeking long-term growth potential. dated June 30, 2006
[GRAPHIC] Nuveen Investments Value and Balanced Funds Nuveen Large-Cap Value Fund Nuveen Balanced Municipal and Stock Fund Nuveen Balanced Stock and Bond Fund [LOGO] Nuveen Investments [GRAPHIC] NOW YOU CAN RECEIVE YOUR NUVEEN INVESTMENTS FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN INVESTMENTS FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments 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 your wish. [LOGO] IT'S FAST, EASY & FREE: www.investordelivery.com if you get your Nuveen Investments Fund dividends and statements from your financial advisor or brokerage account. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) OR www.nuveen.com/accountaccess if you get your Nuveen Investments Fund dividends and statements directly from Nuveen Investments. [LOGO] ------------------------------------------------- Must be preceded by or NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE accompanied by a prospectus. [PHOTO] Timothy R. Schwertfeger Dear Shareholder, Detailed information on your Fund's performance can be found in the Portfolio Managers' Comments and Fund Spotlight sections of this report. The funds feature portfolio management by Institutional Capital Corporation (ICAP), with Nuveen Asset Management managing the municipal portion of the Nuveen Balanced Municipal and Stock Fund. I urge you to take the time to read the portfolio managers' comments. With the recent volatility in the market, many have begun to wonder which way the market is headed, and whether they need to adjust their holdings of investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that investments like your Nuveen Investments Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board August 16, 2006 "No one knows what the future will bring, which is why we think a well-balanced portfolio ... is an important component in achieving your long-term financial goals." Annual Report Page 1 Portfolio Managers' Comments The Nuveen Large-Cap Value, Balanced Municipal and Stock, and Balanced Stock and Bond Funds feature equity and taxable fixed-income management by Institutional Capital Corporation (ICAP). The municipal portion of the Balanced Municipal and Stock Fund is managed by Nuveen Asset Management (NAM). We recently asked Rob Lyon, president and chief investment officer of ICAP, and Tom Spalding of NAM to discuss the economic and market environment, key portfolio management strategies, and the performance of these three Funds for the 12-month reporting period ended June 30, 2006. - -------------------------------------------------------------------------------- What was the economic and stock market backdrop for the Funds during the past year? The stock market turned in positive results, and the U.S. economy continued to expand during the reporting period. Nevertheless, there were a number of clouds on the horizon for investors. Corporate profit growth declined, as did the formally robust housing market. Interest rates rose steadily throughout the year, with the Federal Reserve Board increasing short-term rates from 3.25 percent at the start of the period to 5.25 percent at its end. Many investors had been expecting the Fed to pause its series of rate hikes, but such a step became less likely in light of a jump in the core inflation rate as well as further gains in oil prices, which hit several new records and remained historically high during the past 12 months. Against this backdrop, stock prices generally trended higher for much of the period, despite a significant correction between mid-May and mid-June of 2006. How did the Funds perform during the past twelve months? The table on page 3 provides performance information for the three Funds (Class A shares at net asset value) for the 12 months ended June 30, 2006. The table also compares the Funds' performance to appropriate benchmarks. The Nuveen Large-Cap Value Fund (Class A shares at net asset value) outpaced the broad stock market, as measured by the S&P 500 Index, as well as the Russell 1000 Value Index and the Fund's peer group, the Lipper Large-Cap Value Funds Index. The outperformance relative to the Russell 1000 Value Index came from both favorable stock selection and sector weightings. In particular, our energy and transportation stocks did very well compared to those of the Russell 1000 Value Index. However, stock selection in the technology sector detracted from results. The Nuveen Balanced Municipal and Stock Fund (Class A shares at NAV) outperformed the Lipper Mixed-Asset Target Allocation Moderate Funds Index as well as the Lehman Brothers 10-Year Municipal Bond Index but trailed the S&P 500 Index during the reporting period. The Nuveen Balanced Stock and Bond Fund (Class A shares at NAV) performed in line with its peer group, the Lipper Mixed-Asset Target Allocation Growth Funds Index, and beat the Lehman Brothers Intermediate Treasury Index, while trailing the S&P 500 Index. What was your strategy in managing the equity portion of each Fund? With the U.S. economy weakening, inflation rising, and the emergence of other worrisome trends, we thought it was prudent to position the Funds defensively. Accordingly, we generally steered clear of automakers and other consumer durables companies, which are more sensitive to economic cycles, and instead focused on businesses whose products tend to see consistent demand regardless of what's going on in the broader economy. A continued focus during the period was on energy and transportation stocks, two areas of the market we believed were benefiting from tight supplies and - -------------------------------------------------------------------------------- The views expressed reflect those of the portfolio managers and are subject to change at any time, based on market and other conditions. Annual Report Page 2 Class A Shares Average Annual Total Returns as of 6/30/06 - --------------------------------------------------------------------------------
Since inception 1-Year 5-Year (8/7/96) ----------------------- Nuveen Large-Cap Value Fund A Shares at NAV 13.97% 4.08% 9.23% A Shares at Offer 7.42% 2.85% 8.58% Lipper Large-Cap Value Funds Index/1/ 10.46% 3.93% 8.53% Russell 1000 Value Index/2/ 12.10% 6.90% 11.16% S&P 500 Index/3/ 8.63% 2.49% 8.73% ------------------------------------------------------------- Nuveen Balanced Municipal and Stock Fund A Shares at NAV 6.52% 2.64% 5.74% A Shares at Offer 0.41% 1.44% 5.11% Lipper Mixed-Asset Target Allocation Moderate Funds Index/6/ 6.17% 4.51% 7.60% Lehman Brothers 10-Year Municipal Bond Index/7/ 0.15% 4.86% 5.71% S&P 500 Index/3/ 8.63% 2.49% 8.73% ------------------------------------------------------------- Nuveen Balanced Stock and Bond Fund A Shares at NAV 7.60% 3.84% 7.62% A Shares at Offer 1.42% 2.62% 6.98% Lipper Mixed-Asset Target Allocation Growth Funds Index/4/ 7.57% 5.32% 8.20% Lehman Brothers Intermediate Treasury Index/5/ 0.07% 4.11% 5.55% S&P 500 Index/3/ 8.63% 2.49% 8.73% -------------------------------------------------------------
Returns quoted represent past performance, which is no guarantee of future results. Returns at NAV would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Class A shares have a 5.75% maximum sales charge. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance, visit www.nuveen.com or call (800) 257-8787. strong customer demand. The demand for energy has been driven by worldwide economic growth, not just in the United States but also in rapidly emerging China and India. Meanwhile, a number of factors have limited oil supplies; such as political turmoil in the Middle East and other major oil-producing regions, and the lingering effects of Hurricanes Katrina and Rita, which together damaged much of the oil refining operations of the United States. Although we remain optimistic about the fundamentals of energy stocks, we gradually trimmed our exposure to this part of the market as our holdings became more expensive, locking in some of the strong gains realized during the period. In transportation, we continued to favor railroad stocks. Rail has become a highly efficient mode of freight transportation; especially compared to trucking, given today's high price of diesel fuel, rising urban congestion, and short supply of willing drivers. Railroads have done an outstanding job of increasing their productivity and capturing an increasing percentage of the nation's shipping traffic. As a group, our railroad stocks were significant positive contributors to the Funds' performance. At period end, our largest sector allocation was in financials, representing about one-quarter of our equity investments, despite the Funds being underweighted relative to our Russell benchmark. We emphasized high-quality large-cap financial ================================================================================ 1The Lipper Large-Cap Value Funds Index is a managed index that represents the average annualized total return of the 30 largest funds in the Lipper Large-Cap Value Funds category for the year ended June 30, 2006. The since inception data for the index represents returns for the period 8/31/96 - 6/30/06, as returns for the index are calculated on a calendar month basis. The returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 2The Russell 1000 Value Index is a market capitalization-weighted index of those firms in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth value. The index returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 3The S&P 500 Index is an unmanaged index generally considered representative of the U.S. stock market. The index returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 4The Lipper Mixed Asset Target Allocation Growth Funds Index is a managed index that represents the average annualized total return of the 30 largest funds in the Lipper Mixed Asset Target Allocation Growth Fund category for the year ended June 30, 2006. The since inception data for the index represents returns for the period 8/31/96 - 6/30/06, as returns for the index are calculated on a calendar month basis. The returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 5The Lehman Brothers Intermediate Treasury Index is an unmanaged index comprised of treasury securities with maturities ranging from 1-10 years and does not reflect any initial or ongoing expenses. You cannot invest directly in an index. 6The Lipper Mixed Asset Target Allocation Moderate Funds Index is a managed index that represents the average annualized total return of the 30 largest funds in the Lipper Mixed Asset Target Allocation Moderate Fund category for the year ended June 30, 2006. The since inception data for the index represents returns for the period 8/31/96 - 6/30/06, as returns for the index are calculated on a calendar month basis. The returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 7The Lehman Brothers 10-Year Municipal Bond Index is an unmanaged index comprised of a broad range of investment-grade municipal bonds with maturities ranging from 8 to 12 years and does not reflect any initial or ongoing expenses. You cannot invest directly in an index. Annual Report Page 3 stocks, which we believed were less sensitive to rising interest rates than their lower-quality counterparts. Two of the Funds' top common stock holdings as of June 30, 2006, were Bank of America and Citigroup, two very large diversified financial institutions. What stocks performed well for the Funds? The Funds' strongest performer during the past 12 months was railroad company Norfolk Southern, a major beneficiary of the transportation trends we just discussed. In the energy sector, oil and natural gas production company Marathon Oil and oil services giant Halliburton were helped by continued strength in oil prices. Telecommunications service provider BellSouth saw its shares jump after the company agreed to be acquired by rival AT&T. Of final note, investment bank Goldman Sachs performed extremely well, benefiting from favorable stock and bond markets and a significant amount of merger and acquisition activity, both of which boosted Goldman's bottom line. Which stocks fell short of your expectations? Cendant, which owns a wide variety of leisure and real estate brands, fell during the period as investors became increasingly concerned about the earnings growth potential of its travel businesses. We sold our position in Cendant in late 2005 after determining that there was a significant decline in the company's travel business. Another travel-related company, Carnival Cruise Lines, was hurt by higher fuel costs, the impact of Hurricane Katrina, and a variety of company-specific troubles. Medical device manufacturer Boston Scientific also lagged, its shares falling on concerns about the company's purchase of Guidant. In telecommunications, Sprint Nextel fell in response to investors' worries about pricing in the industry, while cable service provider Comcast declined because of a drop in its free-cash flow. How did you manage the municipal portion of the Balanced Municipal and Stock Fund? The yield curve flattened steadily throughout the past year, as short-term bond yields rose more quickly than long-term yields. With credit spreads narrowing - meaning that investors were receiving less additional income as compensation for investing in lower-rated, riskier bonds - we focused increasingly on adding higher-rated bonds for their better long-term value potential. Nevertheless, the Fund's significant weighting in lower-investment-grade bonds contributed to results as these holdings benefited from the tighter spreads. Some also saw significant price appreciation because the issuer advance refunded the bonds. Although we saw limited opportunity to add value through additional credit risk, we did look to modestly increase the portfolio's duration, or sensitivity to interest rates. In general, we favored new securities with longer intermediate maturities, roughly 20 to 25 years, which we believed offered our shareholders the best long-term tradeoff between risk and reward. Some of the proceeds for the new purchases came from recently called housing bonds. We tended to avoid reinvestments in the housing sector because of the unpredictable nature of any prepayments of the underlying loans securing the bonds. At the end of the period, 59.7 percent of the Nuveen Balanced Municipal and Stock Fund's portfolio was invested in municipal securities, with 40.3 percent in equities. How did you manage the Treasury portion of the Nuveen Balanced Stock and Bond Fund? The bond portfolio of the Nuveen Balanced Stock and Bond Fund was managed conservatively over the past year. During this period, the economy maintained its strong momentum, and inflation moved higher. Accordingly, we kept the portfolio's interest-rate sensitivity relatively low, consistent with our expectation that the Federal Reserve Annual Report Page 4 would respond to these conditions by continuing to raise short-term interest rates, which in turn was expected to put upward pressure on long-term bond yields. At the end of the period, 61.6 percent of the Nuveen Balanced Stock and Bond Fund's portfolio was invested in equities, with 35.7 percent invested in U.S. Government and Agency obligations and 2.7 percent invested in cash equivalents. Dividend Information The Nuveen Balanced Municipal and Stock Fund seeks to pay dividends at a rate that reflects the past and projected performance of the Fund. To permit the Fund to maintain a more stable dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund's net asset value. Conversely, if the Fund has cumulatively paid out dividends more than it has earned, the excess will constitute a negative UNII, which will likewise be reflected in the Fund's net asset value. The Fund will, over time, pay all its net investment income as dividends to shareholders. As of June 30, 2006, the Nuveen Balanced Municipal and Stock Fund had a positive UNII balance for both financial statement and income tax purposes. Annual Report Page 5 Nuveen Large-Cap Value Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen Nuveen Large-Cap Large-Cap Value Fund Value Fund S&P 500 Russell 1000 Lipper Large-Cap (NAV) (Offer) Index Value Index Value Funds Index ---------- ---------- ------- ----------- ---------------- 8/31/1996 $10000 $ 9425 $10000 $10000 $10000 9/30/1996 10414 9815 10562 10398 10490 10/31/1996 10864 10239 10854 10800 10711 11/30/1996 11638 10969 11673 11583 11478 12/31/1996 11371 10717 11442 11435 11284 1/31/1997 11951 11264 12156 11990 11854 2/28/1997 12036 11344 12252 12166 11949 3/31/1997 11784 11106 11749 11728 11493 4/30/1997 12360 11650 12450 12221 12004 5/31/1997 13026 12277 13208 12904 12695 6/30/1997 13617 12834 13799 13457 13225 7/31/1997 14626 13785 14896 14469 14222 8/31/1997 14007 13201 14062 13954 13613 9/30/1997 14776 13926 14832 14797 14310 10/31/1997 14356 13531 14337 14384 13878 11/30/1997 14368 13542 15001 15020 14333 12/31/1997 14496 13662 15258 15459 14497 1/31/1998 14577 13739 15427 15239 14517 2/28/1998 15670 14769 16539 16265 15472 3/31/1998 16030 15109 17385 17260 16159 4/30/1998 16473 15526 17560 17376 16324 5/31/1998 16479 15532 17258 17119 16046 6/30/1998 16555 15603 17959 17338 16347 7/31/1998 15949 15032 17768 17032 16064 8/31/1998 13332 12565 15202 14498 13871 9/30/1998 13801 13008 16176 15330 14538 10/31/1998 14715 13869 17490 16518 15703 11/30/1998 15371 14487 18550 17288 16504 12/31/1998 15932 15016 19618 17876 17141 1/31/1999 16723 15761 20438 18019 17425 2/28/1999 16104 15178 19803 17765 17026 3/31/1999 16577 15624 20595 18133 17544 4/30/1999 17945 16913 21393 19826 18577 5/31/1999 17889 16861 20888 19608 18259 6/30/1999 18605 17535 22047 20177 19065 7/31/1999 17704 16686 21359 19586 18523 8/31/1999 17154 16167 21253 18859 18186 9/30/1999 16824 15857 20671 18201 17513 10/31/1999 17608 16596 21979 19249 18357 11/30/1999 17890 16862 22426 19099 18422 12/31/1999 18264 17214 23746 19191 18989 1/31/2000 17990 16956 22553 18565 18186 2/29/2000 17317 16322 22126 17186 17420 3/31/2000 18547 17480 24289 19282 19016 4/30/2000 18467 17405 23559 19059 18805 5/31/2000 18301 17249 23075 19259 18818 6/30/2000 17615 16602 23644 18379 18611 7/31/2000 17477 16472 23276 18608 18527 8/31/2000 18425 17365 24721 19643 19600 9/30/2000 18620 17549 23416 19824 19290 10/31/2000 19192 18088 23317 20311 19444 11/30/2000 18721 17645 21480 19558 18610 12/31/2000 19627 18499 21585 20538 19360 1/31/2001 19956 18809 22351 20616 19521 2/28/2001 19700 18567 20313 20043 18580 3/31/2001 18866 17781 19025 19335 17857 4/30/2001 19940 18793 20503 20282 18870 5/31/2001 20333 19163 20641 20739 19174 6/30/2001 19555 18431 20139 20278 18652 7/31/2001 19459 18340 19942 20236 18525 8/31/2001 18449 17389 18694 19424 17658 9/30/2001 17504 16497 17183 18057 16281 10/31/2001 17752 16731 17511 17902 16387 11/30/2001 18618 17547 18854 18942 17437 12/31/2001 19174 18071 19020 19389 17700 1/31/2002 18595 17526 18743 19239 17373 2/28/2002 18410 17351 18381 19270 17277 3/31/2002 19125 18026 19072 20182 18039 4/30/2002 18571 17503 17916 19489 17271 5/31/2002 18595 17526 17784 19587 17293 6/30/2002 17140 16154 16517 18463 16088 07/31/2002 15741 14836 15231 16746 14698 08/31/2002 15854 14942 15330 16873 14796 09/30/2002 13755 12964 13663 14997 13086 10/31/2002 14173 13358 14866 16108 14047 11/30/2002 15058 14192 15741 17123 14927 12/31/2002 14367 13540 14817 16380 14217 01/31/2003 14359 13533 14429 15983 13878 02/28/2003 14100 13289 14213 15556 13531 03/31/2003 14213 13396 14351 15583 13523 04/30/2003 15230 14354 15533 16954 14665 05/31/2003 15844 14933 16352 18049 15568 06/30/2003 16086 15161 16561 18275 15745 7/31/2003 16247 15312 16852 18547 15964 8/31/2003 16513 15563 17181 18837 16234 9/30/2003 16295 15358 16999 18652 16052 10/31/2003 17069 16088 17961 19794 16938 11/30/2003 17359 16361 18119 20063 17147 12/31/2003 18460 17398 19069 21299 18198 1/31/2004 18654 17581 19419 21673 18473 2/29/2004 19058 17963 19689 22137 18862 3/31/2004 18978 17887 19392 21942 18636 4/30/2004 18542 17476 19088 21407 18293 5/31/2004 18688 17614 19349 21625 18427 6/30/2004 18963 17873 19724 22136 18832 7/31/2004 18478 17415 19072 21824 18378 8/31/2004 18624 17553 19148 22134 18510 9/30/2004 18841 17758 19355 22477 18729 10/31/2004 18979 17888 19651 22850 18929 11/30/2004 19869 18727 20447 24006 19751 12/31/2004 20495 19317 21142 24810 20379 1/31/2005 20290 19123 20626 24368 19984 2/28/2005 20929 19726 21059 25175 20545 3/31/2005 20626 19440 20686 24830 20210 4/30/2005 20265 19100 20293 24386 19810 5/31/2005 20781 19587 20939 24973 20274 6/30/2005 20954 19749 20968 25246 20478 7/31/2005 21782 20529 21748 25975 21146 8/31/2005 21921 20661 21550 25864 21055 9/30/2005 22340 21055 21725 26226 21257 10/31/2005 21888 20630 21362 25559 20813 11/30/2005 22585 21286 22169 26400 21529 12/31/2005 22515 21220 22176 26559 21654 1/31/2006 23514 22162 22764 27589 22286 2/28/2006 23514 22162 22825 27758 22326 3/31/2006 23961 22583 23108 28132 22607 4/30/2006 24558 23146 23418 28847 23170 5/31/2006 23978 22599 22743 28117 22605 6/30/2006 23882 22509 22775 28297 22621 ================================================================================ Nuveen Balanced Municipal and Stock Fund Growth of an Assumed $10,000 Investment [CHART]
Lipper Mixed-Asset Nuveen Balanced Nuveen Balanced Lehman Brothers Target Allocation Municipal and Stock Municipal and Stock 10-Year Municipal Moderate Funds Fund (NAV) Fund (Offer) S&P 500 Index Bond Index Index ------------------ ------------------- -------------- ----------------- --------------- 8/31/1996 10000 9425 10000 10000 10000 9/30/1996 10231 9643 10562 10103 10357 10/31/1996 10463 9862 10854 10230 10625 11/30/1996 10892 10266 11673 10437 11147 12/31/1996 10818 10196 11442 10390 11038 1/31/1997 11038 10403 12156 10431 11370 2/28/1997 11151 10510 12252 10529 11495 3/31/1997 11006 10374 11749 10387 11141 4/30/1997 11254 10607 12450 10464 11456 5/31/1997 11584 10918 13208 10613 11911 6/30/1997 11858 11177 13799 10730 12270 7/31/1997 12431 11716 14896 11031 12940 8/31/1997 12125 11428 14062 10924 12527 9/30/1997 12499 11780 14832 11063 13045 10/31/1997 12368 11656 14337 11122 12830 11/30/1997 12422 11708 15001 11173 13138 12/31/1997 12584 11860 15258 11349 13393 1/31/1998 12687 11957 15427 11475 13444 2/28/1998 13129 12375 16539 11474 13939 3/31/1998 13291 12527 17385 11466 14404 4/30/1998 13405 12634 17560 11403 14437 5/31/1998 13551 12772 17258 11597 14340 6/30/1998 13603 12821 17959 11640 14558 7/31/1998 13376 12607 17768 11658 14375 8/31/1998 12484 11766 15202 11861 13064 9/30/1998 12776 12041 16176 12038 13662 10/31/1998 13149 12393 17490 12043 14141 11/30/1998 13414 12643 18550 12079 14659 12/31/1998 13633 12849 19618 12116 15045 1/31/1999 13953 13151 20438 12302 15147 2/28/1999 13726 12937 19803 12191 14828 3/31/1999 13862 13065 20595 12185 15154 4/30/1999 14312 13489 21393 12218 15671 5/31/1999 14231 13412 20888 12132 15497 6/30/1999 14350 13525 22047 11907 15818 7/31/1999 14103 13292 21359 11986 15503 8/31/1999 13866 13069 21253 11942 15297 9/30/1999 13769 12978 20671 11983 15047 10/31/1999 13990 13185 21979 11898 15485 11/30/1999 14166 13351 22426 12027 15504 12/31/1999 14265 13445 23746 11965 15761 1/31/2000 14097 13286 22553 11916 15388 2/29/2000 13925 13124 22126 12010 15078 3/31/2000 14483 13650 24289 12244 15978 4/30/2000 14421 13592 23559 12183 15830 5/31/2000 14265 13445 23075 12111 15855 6/30/2000 14231 13413 23644 12440 15998 7/31/2000 14297 13475 23276 12612 16022 8/31/2000 14669 13825 24721 12807 16738 9/30/2000 14683 13839 23416 12749 16552 10/31/2000 14857 14002 23317 12879 16536 11/30/2000 14723 13877 21480 12948 15990 12/31/2000 15151 14279 21585 13252 16510 1/31/2001 15335 14453 22351 13423 16807 2/28/2001 15262 14385 20313 13446 16353 3/31/2001 14989 14127 19025 13560 15908 4/30/2001 15300 14420 20503 13394 16545 5/31/2001 15509 14617 20641 13540 16717 6/30/2001 15312 14432 20139 13621 16479 7/31/2001 15350 14468 19942 13808 16430 8/31/2001 15128 14258 18694 14044 16050 9/30/2001 14791 13940 17183 14024 15251 10/31/2001 14944 14084 17511 14198 15515 11/30/2001 14924 14066 18854 14015 16042 12/31/2001 14721 13874 19020 13866 16182 1/31/2002 14351 13526 18743 14128 16010 2/28/2002 14390 13563 18381 14330 15921 3/31/2002 14534 13699 19072 14035 16261 4/30/2002 14457 13625 17916 14361 15964 5/31/2002 14502 13668 17784 14428 15937 6/30/2002 14062 13254 16517 14607 15161 7/31/2002 13603 12821 15231 14801 14484 8/31/2002 13653 12868 15330 14994 14700 9/30/2002 13037 12287 13663 15352 13915 10/31/2002 13099 12346 14866 15073 14399 11/30/2002 13420 12648 15741 14949 14939 12/31/2002 13257 12495 14817 15276 14642 1/31/2003 13234 12473 14429 15194 14506 2/28/2003 13197 12438 14213 15457 14422 3/31/2003 13166 12409 14351 15465 14526 4/30/2003 13590 12808 15533 15581 15314 5/31/2003 13960 13157 16352 16026 15976 6/30/2003 14034 13227 16561 15949 16142 7/31/2003 13953 13151 16852 15279 16061 8/31/2003 14095 13285 17181 15411 16273 9/30/2003 14177 13362 16999 15930 16399 10/31/2003 14489 13656 17961 15809 16848 11/30/2003 14645 13803 18119 15980 16971 12/31/2003 15074 14208 19069 16148 17596 1/31/2004 15184 14311 19419 16215 17819 2/29/2004 15414 14527 19689 16501 18029 3/31/2004 15341 14459 19392 16407 17970 4/30/2004 15082 14215 19088 15954 17621 5/31/2004 15058 14192 19349 15963 17649 6/30/2004 15178 14306 19724 16016 17874 7/31/2004 15057 14191 19072 16236 17647 8/31/2004 15204 14330 19148 16591 17851 9/30/2004 15318 14438 19355 16679 18033 10/31/2004 15418 14531 19651 16812 18252 11/30/2004 15708 14805 20447 16623 18695 12/31/2004 16020 15099 21142 16817 19172 1/31/2005 15990 15071 20626 16960 18951 2/28/2005 16201 15270 21059 16853 19188 3/31/2005 16065 15141 20686 16706 18927 4/30/2005 16034 15113 20293 17031 18730 5/31/2005 16261 15326 20939 17145 19131 6/30/2005 16379 15437 20968 17244 19357 7/31/2005 16648 15691 21748 17098 19796 8/31/2005 16776 15811 21550 17306 19810 9/30/2005 16868 15898 21725 17150 19868 10/31/2005 16683 15724 21362 17020 19508 11/30/2005 16926 15953 22169 17126 19894 12/31/2005 16965 15990 22176 17281 20075 1/31/2006 17327 16330 22764 17338 20549 2/28/2006 17384 16384 22825 17441 20564 3/31/2006 17478 16473 23108 17261 20677 4/30/2006 17637 16623 23418 17230 20861 5/31/2006 17504 16498 22743 17349 20527 6/30/2006 17445 16442 22775 17271 20554
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of shares. The index comparisons show the change in value of a $10,000 investment in the Class A shares of the Nuveen Funds compared with the corresponding indexes. The Lipper Large-Cap Value Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Large-Cap Value Funds category. The Russell 1000 Value Index is a market capitalization-weighted index of those firms in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth value. The S&P 500 Index is an unmanaged index generally considered to be representative of the U.S. stock market. The Lipper Mixed-Asset Target Allocation Moderate Funds Index is a managed index that represents the average annualized returns of the 10 largest funds in the Lipper Mixed-Asset Target Allocation Moderate Funds category. The Lehman Brothers 10-Year Municipal Bond Index is an unmanaged index comprised of a broad range of investment-grade municipal bonds. The index returns assume reinvestment of dividends and do not reflect any initial or ongoing expenses. You cannot invest directly in an index. The Nuveen Funds' returns include reinvestment of all dividends and distributions, and the Funds' return at the offer price depicted in the chart reflects the initial maximum sales charge applicable to A shares (5.75%) and all ongoing Fund expenses. The performance data quoted represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance shown. Annual Report Page 6 Nuveen Balanced Stock and Bond Fund Growth of an Assumed $10,000 Investment [CHART]
Lipper Mixex-Asset Nuveen Balanced Nuveen Balanced Lehman Brothers Target Allocation Stock and Bond Stock and Bond Intermediate Growth Funds Fund (NAV) Fund (Offer) S&P 500 Index Treasury Index Index --------------- --------------- ------------- ------------------- --------------- 8/31/96 10000 9425 10000 10000 10000 9/30/96 10305 9712 10562 10128 10379 10/31/96 10665 10051 10854 10294 10650 11/30/96 11242 10595 11673 10418 11176 12/31/96 11099 10461 11442 10361 11073 1/31/97 11473 10813 12156 10400 11463 2/28/97 11524 10862 12252 10415 11504 3/31/97 11338 10686 11749 10354 11189 4/30/97 11651 10981 12450 10470 11502 5/31/97 11979 11290 13208 10552 11976 6/30/97 12310 11602 13799 10642 12380 7/31/97 12929 12186 14896 10841 13155 8/31/97 12562 11840 14062 10797 12717 9/30/97 13007 12259 14832 10915 13286 10/31/97 12897 12156 14337 11043 13010 11/30/97 12908 12165 15001 11068 13217 12/31/97 13028 12279 15258 11159 13418 1/31/98 13151 12395 15427 11308 13514 2/28/98 13735 12946 16539 11294 14052 3/31/98 13968 13164 17385 11328 14450 4/30/98 14222 13404 17560 11381 14509 5/31/98 14264 13444 17258 11459 14411 6/30/98 14363 13537 17959 11536 14540 7/31/98 14025 13219 17768 11581 14369 8/31/98 12616 11890 15202 11810 13048 9/30/98 13142 12386 16176 12095 13637 10/31/98 13716 12927 17490 12119 14254 11/30/98 14143 13329 18550 12074 14785 12/31/98 14482 13649 19618 12120 15163 1/31/99 14960 14100 20438 12174 15363 2/28/99 14420 13591 19803 11996 14916 3/31/99 14765 13916 20595 12075 15182 4/30/99 15603 14706 21393 12109 15950 5/31/99 15475 14585 20888 12031 15738 6/30/99 15827 14917 22047 12053 16116 7/31/99 15355 14472 21359 12064 15742 8/31/99 15040 14175 21253 12088 15523 9/30/99 14938 14079 20671 12182 15170 10/31/99 15395 14510 21979 12198 15501 11/30/99 15530 14637 22426 12203 15630 12/31/99 15739 14834 23746 12169 16002 1/31/00 15554 14660 22553 12136 15491 2/29/00 15279 14401 22126 12231 15211 3/31/00 16078 15154 24289 12386 16090 4/30/00 15987 15067 23559 12377 15981 5/31/00 15894 14980 23075 12429 16150 6/30/00 15632 14733 23644 12608 16160 7/31/00 15607 14709 23276 12693 16178 8/31/00 16221 15288 24721 12825 16846 9/30/00 16326 15387 23416 12924 16595 10/31/00 16725 15764 23317 13009 16615 11/30/00 16538 15587 21480 13197 16126 12/31/00 17192 16203 21585 13417 16708 1/31/01 17449 16446 22351 13575 16921 2/28/01 17341 16344 20313 13700 16349 3/31/01 16854 15885 19025 13808 15902 4/30/01 17460 16456 20503 13753 16542 5/31/01 17718 16700 20641 13809 16803 6/30/01 17255 16263 20139 13859 16746 7/31/01 17317 16321 19942 14110 16796 8/31/01 16743 15780 18694 14232 16299 9/30/01 16250 15315 17183 14527 15267 10/31/01 16531 15581 17511 14748 15605 11/30/01 17039 16060 18854 14581 16321 12/31/01 17301 16306 19020 14511 16536 1/31/02 16984 16007 18743 14561 16462 2/28/02 16942 15968 18381 14671 16375 3/31/02 17241 16250 19072 14447 16786 4/30/02 17117 16132 17916 14705 16556 5/31/02 17214 16224 17784 14807 16632 6/30/02 16354 15413 16517 14987 15895 7/31/02 15601 14704 15231 15287 15035 8/31/02 15740 14835 15330 15448 15134 9/30/02 14503 13669 13663 15744 14217 10/31/02 14728 13881 14866 15716 14730 11/30/02 15253 14376 15741 15570 15273 12/31/02 14938 14079 14817 15859 14820 1/31/03 14903 14046 14429 15813 14588 2/28/03 14839 13986 14213 15984 14461 3/31/03 14924 14066 14351 15984 14497 4/30/03 15555 14661 15533 16016 15380 5/31/03 16081 15156 16352 16264 16173 6/30/03 16205 15273 16561 16238 16348 7/31/03 16084 15159 16852 15883 16355 8/31/03 16269 15333 17181 15905 16680 9/30/03 16282 15345 16999 16235 16657 10/31/03 16690 15731 17961 16076 17275 11/30/03 16869 15899 18119 16072 17434 12/31/03 17591 16579 19069 16193 18168 1/31/04 17735 16715 19419 16273 18322 2/29/04 18060 17021 19689 16424 18657 3/31/04 18056 17018 19392 16540 18568 4/30/04 17623 16609 19088 16166 18224 5/31/04 17695 16677 19349 16120 18286 6/30/04 17874 16846 19724 16154 18656 7/31/04 17641 16627 19072 16264 18329 8/31/04 17837 16811 19148 16502 18423 9/30/04 17969 16936 19355 16510 18752 10/31/04 18086 17046 19651 16600 18919 11/30/04 18511 17446 20447 16430 19513 12/31/04 18925 17837 21142 16521 19949 1/31/05 18852 17768 20626 16539 19737 2/28/05 19161 18059 21059 16432 20215 3/31/05 18971 17880 20686 16397 19831 4/30/05 18874 17789 20293 16597 19585 5/31/05 19231 18125 20939 16724 19998 6/30/05 19362 18249 20968 16777 20180 7/31/05 19728 18593 21748 16621 20614 8/31/05 19899 18755 21550 16812 20655 9/30/05 20049 18896 21725 16674 20777 10/31/05 19742 18607 21362 16600 20444 11/30/05 20125 18968 22169 16673 20913 12/31/05 20169 19010 22176 16778 21065 1/31/06 20706 19515 22764 16761 21701 2/28/06 20714 19523 22825 16756 21569 3/31/06 20880 19679 23108 16698 21761 4/30/06 21174 19957 23418 16706 22079 5/31/06 20865 19665 22743 16713 21686 6/30/06 20836 19638 22775 16745 21707
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of shares. The index comparisons show the change in value of a $10,000 investment in the Class A shares of the Nuveen Fund compared with the corresponding indexes. The Lipper Mixed-Asset Target Allocation Growth Funds Index is a managed index that represents the average annualized returns of the 10 largest funds in the Lipper Mixed-Asset Target Allocation Growth Funds category. The Lehman Brothers Intermediate Treasury Index is an unmanaged index comprised of treasury securities with maturities ranging from 1-10 years. The S&P 500 Index is an unmanaged index generally considered to be representative of the U.S. stock market. The index returns assume reinvestment of dividends and do not reflect any initial or ongoing expenses. You cannot invest directly in an index. The Nuveen Fund's returns include reinvestment of all dividends and distributions, and the Fund's return at the offer price depicted in the chart reflects the initial maximum sales charge applicable to A shares (5.75%) and all ongoing Fund expenses. The performance data quoted represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance shown. Annual Report Page 7 Fund Spotlight as of 6/30/06 Nuveen Large-Cap Value Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares ------------------------------------------------------------ NAV $27.23 $26.64 $26.60 $27.33 ------------------------------------------------------------ Latest Long-Term Capital Gains Distribution/1/ $1.0466 $1.0466 $1.0466 $1.0466 ------------------------------------------------------------ Inception Date 8/07/96 8/07/96 8/07/96 8/07/96 ------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future performance. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Fund returns assume reinvestment of dividends and capital gains. Class A shares have a 5.75% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Returns may reflect a voluntary expense limitation by the Fund's investment adviser which may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/06 A Shares NAV Offer ------------------------------------------ 1-Year 13.97% 7.42% ------------------------------------------ 5-Year 4.08% 2.85% ------------------------------------------ Since Inception 9.23% 8.58% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 13.13% 9.13% ------------------------------------------ 5-Year 3.31% 3.14% ------------------------------------------ Since Inception 8.58% 8.58% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 13.15% ------------------------------------------ 5-Year 3.31% ------------------------------------------ Since Inception 8.41% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 14.24% ------------------------------------------ 5-Year 4.36% ------------------------------------------ Since Inception 9.52% ------------------------------------------
Top Five Common Stock Holdings2 Exxon Mobil Corporation 4.7% -------------------------------- Bank of America Corporation 4.6% -------------------------------- Citigroup Inc. 4.4% -------------------------------- Altria Group, Inc. 3.2% -------------------------------- McDonalds Corporation 3.1% --------------------------------
Portfolio Allocation/2/ [CHART] Portfolio Allocation-As a % of total market value - ------------------------------------------------- Common Stocks 96.3% Short-Term Investments 3.7%
Portfolio Statistics Net Assets ($000) $521,810 --------------------------------------------------------- Average Market Capitalization (Common Stocks) $99 Billion --------------------------------------------------------- Number of Common Stocks 46 --------------------------------------------------------- Expense Ratio3 1.28% ---------------------------------------------------------
- -------------------------------------------------------------------------------- 1Paid December 5, 2005. 2As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. 3Class A shares after credit/reimbursement for the 12 months ended June 30, 2006. Annual Report Page 8 Fund Spotlight as of 6/30/06 Nuveen Large-Cap Value Fund ================================================================================
Industries/1/ Oil, Gas, & Consumable Fuels 10.6% -------------------------------------------- Diversified Financial Services 8.7% -------------------------------------------- Commercial Banks 7.5% -------------------------------------------- Insurance 5.8% -------------------------------------------- Diversified Telecommunication Services 5.5% -------------------------------------------- Pharmaceuticals 5.3% -------------------------------------------- Electric Utilities 4.8% -------------------------------------------- Road & Rail 4.7% -------------------------------------------- Computers & Peripherals 4.6% -------------------------------------------- Hotels, Restaurants & Leisure 3.3% -------------------------------------------- Tobacco 3.2% -------------------------------------------- Health Care Equipment & Supplies 3.1% -------------------------------------------- Industrial Conglomerates 3.0% -------------------------------------------- Beverages 2.6% -------------------------------------------- Food & Staples Retailing 2.4% -------------------------------------------- Aerospace & Defense 2.4% -------------------------------------------- Multi-Utilities 2.4% -------------------------------------------- Energy Equipment & Services 2.4% -------------------------------------------- Short-Term Investments 3.7% -------------------------------------------- Other 14.0% --------------------------------------------
1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. - -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% return before expenses) ---------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares - ------------------------------------------------------------------------------------------------------------------- Beginning Account Value (1/01/06) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 - ------------------------------------------------------------------------------------------------------------------- Ending Account Value (6/30/06) $1,060.80 $1,056.70 $1,056.80 $1,062.20 $1,018.50 $1,014.73 $1,014.78 $1,019.74 - ------------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 6.49 $ 10.35 $ 10.30 $ 5.22 $ 6.36 $ 10.14 $ 10.09 $ 5.11 - -------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized expense ratio of 1.27%, 2.03%, 2.02% and 1.02% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Annual Report Page 9 Fund Spotlight as of 6/30/06 Nuveen Balanced Municipal and Stock Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares ------------------------------------------------------ NAV $23.86 $25.32 $25.29 $23.34 ------------------------------------------------------ Latest Dividend/1/ $0.0395 $0.0300 $0.0300 $0.0425 ------------------------------------------------------ Inception Date 8/07/96 8/07/96 8/07/96 8/07/96 ------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future performance. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Fund returns assume reinvestment of dividends and capital gains. Class A shares have a 5.75% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Returns may reflect a voluntary expense limitation by the Fund's investment adviser which may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/06 A Shares NAV Offer ------------------------------------------ 1-Year 6.52% 0.41% ------------------------------------------ 5-Year 2.64% 1.44% ------------------------------------------ Since Inception 5.74% 5.11% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 5.73% 1.73% ------------------------------------------ 5-Year 1.88% 1.69% ------------------------------------------ Since Inception 5.11% 5.11% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 5.70% ------------------------------------------ 5-Year 1.87% ------------------------------------------ Since Inception 4.95% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 6.79% ------------------------------------------ 5-Year 2.91% ------------------------------------------ Since Inception 6.02% ------------------------------------------ Bond Credit Quality/2/ AAA/U.S. Guaranteed 64.1% ------------------------------------------ AA 14.1% ------------------------------------------ A 2.5% ------------------------------------------ BBB 17.7% ------------------------------------------ BB or Lower 1.6% ------------------------------------------
Top Five Common Stock Holdings/3/ Exxon Mobil Corporation 2.0% --------------------------------- Bank of America Corporation 2.0% --------------------------------- Citigroup Inc. 1.9% --------------------------------- Altria Group, Inc. 1.3% --------------------------------- McDonalds Corporation 1.3% ---------------------------------
Yields/5/ A Shares NAV Offer ----------------------------- SEC 30-Day Yield 2.24% 2.11% ----------------------------- Distribution Rate 1.99% 1.87% ----------------------------- B Shares NAV ----------------------------- SEC 30-Day Yield 1.49% ----------------------------- Distribution Rate 1.42% ----------------------------- C Shares NAV ----------------------------- SEC 30-Day Yield 1.49% ----------------------------- Distribution Rate 1.42% ----------------------------- R Shares NAV ----------------------------- SEC 30-Day Yield 2.48% ----------------------------- Distribution Rate 2.19% -----------------------------
Portfolio Allocation/3/ [CHART] Portfolio Allocation-As a % of total market value - ------------------------------------------------- Common Stocks 40.3% Municipal Bonds 59.7%
Portfolio Statistics Net Assets ($000) $77,928 --------------------------------------------------------- Average Market Capitalization (Common Stocks) $99 Billion --------------------------------------------------------- Number of Common Stocks 46 --------------------------------------------------------- Average Duration (Municipal Bonds) 4.55 --------------------------------------------------------- Expense Ratio/4/ 1.22% ---------------------------------------------------------
- -------------------------------------------------------------------------------- 1Paid July 3, 2006. This is the latest monthly tax-exempt dividend declared during the period ended June 30, 2006. Income is generally exempt from regular federal income taxes. Income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. 2As a percentage of total municipal bond holdings as of June 30, 2006. Holdings are subject to change. 3As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. 4Class A shares after credit/reimbursement for the 12 months ended June 30, 2006. 5Distribution Rate Yields may differ from SEC 30-Day Yields due to, among other factors, amortization of post-purchase bond premiums and differences between portfolio earnings and distribution rates. Annual Report Page 10 Fund Spotlight as of 6/30/06 Nuveen Balanced Municipal and Stock Fund ================================================================================
Industries/1/ Common Stocks: Oil, Gas, & Consumable Fuels 4.4% ------------------------------------------- Diversified Financial Services 3.6% ------------------------------------------- Commercial Banks 3.1% ------------------------------------------- Insurance 2.5% ------------------------------------------- Diversified Telecommunication Services 2.3% ------------------------------------------- Pharmaceuticals 2.2% ------------------------------------------- Electric Utilities 2.0% ------------------------------------------- Road & Rail 2.0% ------------------------------------------- Computers & Peripherals 1.9% ------------------------------------------- Hotels, Restaurants & Leisure 1.4% ------------------------------------------- Tobacco 1.3% ------------------------------------------- Health Care Equipment & Supplies 1.3% ------------------------------------------- Industrial Conglomerates 1.3% ------------------------------------------- Beverages 1.1% ------------------------------------------- Other 9.9% -------------------------------------------
Municipal Bonds: Tax Obligation/Limited 12.8% --------------------------------------- U.S. Guaranteed 12.3% --------------------------------------- Healthcare 8.3% --------------------------------------- Education and Civic Organizations 6.0% --------------------------------------- Utilities 4.5% --------------------------------------- Tax Obligation/General 4.4% --------------------------------------- Transportation 4.1% --------------------------------------- Consumer Staples 3.2% --------------------------------------- Long-Term Care 2.4% --------------------------------------- Housing/Single Family 1.0% --------------------------------------- Water and Sewer 0.7% ---------------------------------------
1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. - -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% return before expenses) ---------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares - ------------------------------------------------------------------------------------------------------------------- Beginning Account Value (1/01/06) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 - ------------------------------------------------------------------------------------------------------------------- Ending Account Value (6/30/06) $1,028.40 $1,024.10 $1,024.50 $1,029.60 $1,018.79 $1,015.03 $1,015.08 $1,020.03 - ------------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 6.09 $ 9.89 $ 9.84 $ 4.83 $ 6.06 $ 9.84 $ 9.79 $ 4.81 - -------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized expense ratio of 1.21%, 1.97%, 1.96% and .96% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Annual Report Page 11 Fund Spotlight as of 6/30/06 Nuveen Balanced Stock and Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares ------------------------------------------------------------ NAV $25.40 $25.40 $25.42 $25.40 ------------------------------------------------------------ Latest Long-Term Capital Gains Distribution/1/ $1.5146 $1.5146 $1.5146 $1.5146 ------------------------------------------------------------ Inception Date 8/07/96 8/07/96 8/07/96 8/07/96 ------------------------------------------------------------
Returns quoted represent past performance which is no guarantee of future performance. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Fund returns assume reinvestment of dividends and capital gains. Class A shares have a 5.75% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Returns may reflect a voluntary expense limitation by the Fund's investment adviser which may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/06 A Shares NAV Offer ------------------------------------------ 1-Year 7.60% 1.42% ------------------------------------------ 5-Year 3.84% 2.62% ------------------------------------------ Since Inception 7.62% 6.98% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 6.80% 2.88% ------------------------------------------ 5-Year 3.07% 2.89% ------------------------------------------ Since Inception 6.97% 6.97% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 6.79% ------------------------------------------ 5-Year 3.07% ------------------------------------------ Since Inception 6.83% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 7.87% ------------------------------------------ 5-Year 4.11% ------------------------------------------ Since Inception 7.88% ------------------------------------------
Top Five Common Stock Holdings/2/ Bank of America Corporation 3.0% --------------------------------- Exxon Mobil Corporation 3.0% --------------------------------- Citigroup Inc. 2.9% --------------------------------- Altria Group, Inc. 2.0% --------------------------------- McDonalds Corporation 2.0% ---------------------------------
Yields/4/ A Shares NAV Offer ----------------------------- SEC 30-Day Yield 1.92% 1.81% ----------------------------- Distribution Rate 2.13% 2.01% ----------------------------- B Shares NAV ----------------------------- SEC 30-Day Yield 1.22% ----------------------------- Distribution Rate 1.38% ----------------------------- C Shares NAV ----------------------------- SEC 30-Day Yield 1.18% ----------------------------- Distribution Rate 1.38% ----------------------------- R Shares NAV ----------------------------- SEC 30-Day Yield 2.16% ----------------------------- Distribution Rate 2.38% -----------------------------
Portfolio Allocation/2/ [CHART] Portfolio Allocation-As a % of total market value - ------------------------------------------------- Common Stocks 61.6% U.S. Government and Agency Obligations 35.7% Short-Term Investments 2.7%
Portfolio Statistics Net Assets ($000) $55,249 --------------------------------------------------------- Average Market Capitalization (Common Stocks) $99 Billion --------------------------------------------------------- Number of Common Stocks 46 --------------------------------------------------------- Average Duration (Bonds) 3.92 --------------------------------------------------------- Expense Ratio/3/ 1.24% ---------------------------------------------------------
- -------------------------------------------------------------------------------- 1Paid December 5, 2005. 2As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. 3Class A shares after credit/reimbursement for the 12 months ended June 30, 2006. 4Distribution Rate Yields may differ from SEC 30-Day Yields due to, among other factors, amortization of post-purchase bond premiums and differences between portfolio earnings and distribution rates. Annual Report Page 12 Fund Spotlight as of 6/30/06 Nuveen Balanced Stock and Bond Fund ================================================================================
Industries/1/ U.S. Treasury Notes 23.5% -------------------------------------------- U.S. Treasury Bonds 12.2% -------------------------------------------- Oil, Gas, & Consumable Fuels 6.8% -------------------------------------------- Diversified Financial Services 5.6% -------------------------------------------- Commercial Banks 4.8% -------------------------------------------- Insurance 3.7% -------------------------------------------- Diversified Telecommunication Services 3.5% -------------------------------------------- Pharmaceuticals 3.4% -------------------------------------------- Electric Utilities 3.1% -------------------------------------------- Road & Rail 3.0% -------------------------------------------- Computers & Peripherals 2.9% -------------------------------------------- Hotels, Restaurants & Leisure 2.1% -------------------------------------------- Tobacco 2.0% -------------------------------------------- Health Care Equipment & Supplies 2.0% -------------------------------------------- Industrial Conglomerates 1.9% -------------------------------------------- Beverages 1.7% -------------------------------------------- Short-Term Investments 2.7% -------------------------------------------- Other 15.1% --------------------------------------------
1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. - -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% return before expenses) ---------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares - ------------------------------------------------------------------------------------------------------------------- Beginning Account Value (1/01/06) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 - ------------------------------------------------------------------------------------------------------------------- Ending Account Value (6/30/06) $1,033.00 $1,029.10 $1,029.10 $1,034.30 $1,018.70 $1,014.98 $1,014.98 $1,019.93 - ------------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 6.20 $ 9.96 $ 9.96 $ 4.94 $ 6.16 $ 9.89 $ 9.89 $ 4.91 - -------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized expense ratio of 1.23%, 1.98%, 1.98% and .98% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Annual Report Page 13 Portfolio of Investments NUVEEN LARGE-CAP VALUE FUND June 30, 2006
Shares Description Value - ------------------------------------------------------------------------------------ COMMON STOCKS - 96.0% Aerospace & Defense - 2.4% 312,750 Honeywell International Inc. $ 12,603,825 - ------------------------------------------------------------------------------------ Beverages - 2.6% 224,250 PepsiCo, Inc. 13,463,970 - ------------------------------------------------------------------------------------ Building Products - 1.2% 68,150 Textron Inc. 6,282,067 - ------------------------------------------------------------------------------------ Capital Markets - 1.9% 65,425 Goldman Sachs Group, Inc. 9,841,883 - ------------------------------------------------------------------------------------ Commercial Banks - 7.5% 499,850 Bank of America Corporation 24,042,784 220,550 Wells Fargo & Company 14,794,494 - ------------------------------------------------------------------------------------ Total Commercial Banks 38,837,278 --------------------------------------------------------------------------- Communications Equipment - 1.9% 490,050 Motorola, Inc. 9,874,508 - ------------------------------------------------------------------------------------ Computers & Peripherals - 4.6% 403,600 EMC Corporation, (1) 4,427,492 248,400 Hewlett-Packard Company 7,869,312 150,700 International Business Machines Corporation (IBM) 11,576,774 - ------------------------------------------------------------------------------------ Total Computers & Peripherals 23,873,578 --------------------------------------------------------------------------- Consumer Finance - 1.5% 93,350 Capital One Financial Corporation 7,976,758 - ------------------------------------------------------------------------------------ Containers & Packaging - 0.9% 123,150 Temple Inland Inc. 5,279,441 - ------------------------------------------------------------------------------------ Diversified Financial Services - 8.7% 123,100 CIT Group Inc. 6,436,899 478,961 Citigroup Inc. 23,105,078 371,450 JPMorgan Chase & Co. 15,600,900 - ------------------------------------------------------------------------------------ Total Diversified Financial Services 45,142,877 --------------------------------------------------------------------------- Diversified Telecommunication Services - 5.5% 430,600 BellSouth Corporation 15,587,720 660,350 Sprint Nextel Corporation 13,200,397 - ------------------------------------------------------------------------------------ Total Diversified Telecommunication Services 28,788,117 --------------------------------------------------------------------------- Electric Utilities - 4.8% 186,100 Entergy Corporation 13,166,575 205,550 Exelon Corporation 11,681,407 - ------------------------------------------------------------------------------------ Total Electric Utilities 24,847,982 --------------------------------------------------------------------------- Energy Equipment & Services - 2.4% 108,250 Halliburton Company 8,033,232 68,250 National-Oilwell Varco Inc., (1) 4,321,590 - ------------------------------------------------------------------------------------ Total Energy Equipment & Services 12,354,822 --------------------------------------------------------------------------- Food & Staples Retailing - 2.4% 264,200 Wal-Mart Stores, Inc. 12,726,514 - ------------------------------------------------------------------------------------
- ---- 14
Shares Description Value - ------------------------------------------------------------------------------------ Health Care Equipment & Supplies - 3.1% 377,950 Baxter International Inc. $ 13,893,442 124,850 Boston Scientific Corporation, (1) 2,102,474 - ------------------------------------------------------------------------------------ Total Health Care Equipment & Supplies 15,995,916 --------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 3.3% 24,950 Carnival Corporation 1,041,413 482,950 McDonald's Corporation 16,227,119 - ------------------------------------------------------------------------------------ Total Hotels, Restaurants & Leisure 17,268,532 --------------------------------------------------------------------------- Industrial Conglomerates - 3.0% 474,200 General Electric Company 15,629,632 - ------------------------------------------------------------------------------------ Insurance - 5.8% 213,350 American International Group, Inc. 12,598,318 211,444 Aon Corporation 7,362,480 232,550 St. Paul Travelers Companies, Inc. 10,367,079 - ------------------------------------------------------------------------------------ Total Insurance 30,327,877 --------------------------------------------------------------------------- Machinery - 1.5% 104,400 Caterpillar Inc. 7,775,712 - ------------------------------------------------------------------------------------ Metals & Mining - 1.4% 102,450 United States Steel Corporation 7,183,794 - ------------------------------------------------------------------------------------ Multi-Utilities - 2.4% 165,250 Dominion Resources, Inc. 12,359,048 - ------------------------------------------------------------------------------------ Oil, Gas, & Consumable Fuels - 10.6% 172,400 Amerada Hess Corporation 9,111,340 400,400 Exxon Mobil Corporation 24,564,539 141,075 Marathon Oil Corporation 11,751,548 94,500 Occidental Petroleum Corporation 9,690,975 - ------------------------------------------------------------------------------------ Total Oil, Gas, & Consumable Fuels 55,118,402 --------------------------------------------------------------------------- Paper & Forest Products - 1.6% 250,700 International Paper Company 8,097,610 - ------------------------------------------------------------------------------------ Pharmaceuticals - 5.3% 342,150 Abbott Laboratories 14,921,162 239,100 Norvatis AG, ADR 12,892,272 - ------------------------------------------------------------------------------------ Total Pharmaceuticals 27,813,434 --------------------------------------------------------------------------- Road & Rail - 4.7% 111,200 CSX Corporation 7,832,928 152,900 Norfolk Southern Corporation 8,137,338 89,700 Union Pacific Corporation 8,338,512 - ------------------------------------------------------------------------------------ Total Road & Rail 24,308,778 --------------------------------------------------------------------------- Semiconductors & Equipment - 0.8% 156,000 Freescale Semiconductor, Inc., Class B, (1) 4,586,400 - ------------------------------------------------------------------------------------ Textiles Apparel & Luxury Goods - 1.1% 72,250 Nike Inc., Class B 5,852,250 - ------------------------------------------------------------------------------------ Tobacco - 3.1% 223,300 Altria Group, Inc. 16,396,918 - ------------------------------------------------------------------------------------ Total Common Stocks (cost $407,327,145) 500,607,923 ---------------------------------------------------------------------------
- ---- 15 Portfolio of Investments NUVEEN LARGE-CAP VALUE FUND (continued) June 30, 2006
Principal Amount (000) Description Coupon Maturity Value - --------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 3.7% $ 19,498 Repurchase Agreement with State Street Bank, dated 6/30/06, 4.130% 7/03/06 $ 19,498,361 repurchase price $19,505,072, collateralized by $14,700,000 U.S. Treasury Bonds, 9.875%, due 11/15/15, value $19,893,231 - --------------------------------------------------------------------------------------------------------- - ------------ Total Short-Term Investments (cost $19,498,361) 19,498,361 ------------------------------------------------------------------------------------------- Total Investments (cost $426,825,506) - 99.7% 520,106,284 ------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.3% 1,703,935 ------------------------------------------------------------------------------------------- Net Assets - 100% $ 521,810,219 -------------------------------------------------------------------------------------------
(1) Non-income producing. ADR American Depositary Receipt. See accompanying notes to financial statements. - ---- 16 Portfolio of Investments NUVEEN BALANCED MUNICIPAL AND STOCK FUND June 30, 2006
Shares Description Value - ---------------------------------------------------------------------------------- COMMON STOCKS - 38.8% Aerospace & Defense - 1.0% 18,950 Honeywell International Inc. $ 763,685 - ---------------------------------------------------------------------------------- Beverages - 1.0% 13,550 PepsiCo, Inc. 813,542 - ---------------------------------------------------------------------------------- Building Products - 0.5% 4,150 Textron Inc. 382,547 - ---------------------------------------------------------------------------------- Capital Markets - 0.7% 3,850 Goldman Sachs Group, Inc. 579,156 - ---------------------------------------------------------------------------------- Commercial Banks - 3.0% 30,600 Bank of America Corporation 1,471,859 13,350 Wells Fargo & Company 895,518 - ---------------------------------------------------------------------------------- Total Commercial Banks 2,367,377 -------------------------------------------------------------------------- Communications Equipment - 0.8% 29,500 Motorola, Inc. 594,425 - ---------------------------------------------------------------------------------- Computers & Peripherals - 1.9% 24,600 EMC Corporation, (1) 269,862 15,100 Hewlett-Packard Company 478,368 9,150 International Business Machines Corporation (IBM) 702,903 - ---------------------------------------------------------------------------------- Total Computers & Peripherals 1,451,133 -------------------------------------------------------------------------- Consumer Finance - 0.6% 5,650 Capital One Financial Corporation 482,793 - ---------------------------------------------------------------------------------- Containers & Packaging - 0.3% 7,500 Temple Inland Inc. 321,525 - ---------------------------------------------------------------------------------- Diversified Financial Services - 3.5% 7,450 CIT Group Inc. 389,561 29,010 Citigroup Inc. 1,399,442 22,450 JPMorgan Chase & Co. 942,900 - ---------------------------------------------------------------------------------- Total Diversified Financial Services 2,731,903 -------------------------------------------------------------------------- Diversified Telecommunication Services - 2.2% 26,050 BellSouth Corporation 943,010 39,700 Sprint Nextel Corporation 793,603 - ---------------------------------------------------------------------------------- Total Diversified Telecommunication Services 1,736,613 -------------------------------------------------------------------------- Electric Utilities - 1.9% 11,350 Entergy Corporation 803,013 12,400 Exelon Corporation 704,692 - ---------------------------------------------------------------------------------- Total Electric Utilities 1,507,705 -------------------------------------------------------------------------- Energy Equipment & Services - 1.0% 6,650 Halliburton Company 493,496 4,150 National-Oilwell Varco Inc., (1) 262,778 - ---------------------------------------------------------------------------------- Total Energy Equipment & Services 756,274 -------------------------------------------------------------------------- Food & Staples Retailing - 1.0% 16,000 Wal-Mart Stores, Inc. 770,720 - ----------------------------------------------------------------------------------
- ---- 17 Portfolio of Investments NUVEEN BALANCED MUNICIPAL AND STOCK FUND (continued) June 30, 2006
Shares Description Value - ---------------------------------------------------------------------------------- Health Care Equipment & Supplies - 1.2% 22,850 Baxter International Inc. $ 839,966 7,450 Boston Scientific Corporation, (1) 125,458 - ---------------------------------------------------------------------------------- Total Health Care Equipment & Supplies 965,424 -------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 1.3% 1,600 Carnival Corporation 66,784 28,500 McDonald's Corporation 957,600 - ---------------------------------------------------------------------------------- Total Hotels, Restaurants & Leisure 1,024,384 -------------------------------------------------------------------------- Industrial Conglomerates - 1.2% 28,550 General Electric Company 941,008 - ---------------------------------------------------------------------------------- Insurance - 2.4% 13,050 American International Group, Inc. 770,603 12,800 Aon Corporation 445,696 14,100 St. Paul Travelers Companies, Inc. 628,578 - ---------------------------------------------------------------------------------- Total Insurance 1,844,877 -------------------------------------------------------------------------- Machinery - 0.6% 6,300 Caterpillar Inc. 469,224 - ---------------------------------------------------------------------------------- Metals & Mining - 0.6% 6,150 United States Steel Corporation 431,238 - ---------------------------------------------------------------------------------- Multi-Utilities - 1.0% 10,000 Dominion Resources, Inc. 747,900 - ---------------------------------------------------------------------------------- Oil, Gas, & Consumable Fuels - 4.3% 10,550 Amerada Hess Corporation 557,568 24,250 Exxon Mobil Corporation 1,487,737 8,491 Marathon Oil Corporation 707,300 5,700 Occidental Petroleum Corporation 584,535 - ---------------------------------------------------------------------------------- Total Oil, Gas, & Consumable Fuels 3,337,140 -------------------------------------------------------------------------- Paper & Forest Products - 0.6% 15,300 International Paper Company 494,190 - ---------------------------------------------------------------------------------- Pharmaceuticals - 2.2% 20,700 Abbott Laboratories 902,727 14,500 Norvatis AG, ADR 781,840 - ---------------------------------------------------------------------------------- Total Pharmaceuticals 1,684,567 -------------------------------------------------------------------------- Road & Rail - 1.9% 6,650 CSX Corporation 468,426 9,300 Norfolk Southern Corporation 494,946 5,450 Union Pacific Corporation 506,632 - ---------------------------------------------------------------------------------- Total Road & Rail 1,470,004 -------------------------------------------------------------------------- Semiconductors & Equipment - 0.3% 9,450 Freescale Semiconductor, Inc., Class B, (1) 277,830 - ---------------------------------------------------------------------------------- Textiles Apparel & Luxury Goods - 0.5% 4,350 Nike Inc., Class B 352,350 - ---------------------------------------------------------------------------------- Tobacco - 1.3% 13,550 Altria Group, Inc. 994,977 - ---------------------------------------------------------------------------------- Total Common Stocks (cost $24,399,620) 30,294,511 --------------------------------------------------------------------------
- ---- 18
Principal Optional Call Amount (000) Description Provisions (2) Ratings (3) Value - ------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 57.7% California - 6.6% $ 1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA $ 759,030 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/25 - AMBAC Insured 500 Calleguas-Las Virgenes Public Finance Authority, 7/13 at 100.00 AAA 530,820 California, Water Revenue Bonds, Calleguas Municipal Water District, Series 2003B, 5.250%, 7/01/19 - MBIA Insured 735 Northern California Power Agency, Revenue Bonds, Geothermal No Opt. Call BBB+ 745,944 Project 3, Series 1993, 5.650%, 7/01/07 250 Orange County, California, Refunding Recovery Bonds, Series No Opt. Call AAA 269,638 1995A, 6.000%, 6/01/10 - MBIA Insured (ETM) 1,495 Palmdale Civic Authority, California, Revenue Refinancing 7/07 at 102.00 AAA 1,544,648 Bonds, Civic Center Project, Series 1997A, 5.375%, 7/01/12 - MBIA Insured 1,000 San Diego County, California, Certificates of 9/09 at 101.00 Baa3 (4) 1,055,920 Participation, Burnham Institute, Series 1999, 5.700%, 9/01/11 (Pre-refunded 9/01/09) 250 San Diego County, California, Certificates of 9/15 at 102.00 Baa3 245,643 Participation, Burnham Institute, Series 2006, 5.000%, 9/01/34 - ------------------------------------------------------------------------------------------------------------------------ 5,230 Total California 5,151,643 - ------------------------------------------------------------------------------------------------------------------------ Colorado - 6.5% 750 Colorado Health Facilities Authority, Revenue Bonds, 12/16 at 100.00 AA 762,465 Longmont United Hospital, Series 2006B, 5.000%, 12/01/23 - RAAI Insured 250 Colorado Health Facilities Authority, Revenue Bonds, Vail 1/15 at 100.00 BBB+ 255,132 Valley Medical Center, Series 2004, 5.000%, 1/15/17 1,000 Denver City and County, Colorado, Airport Special 1/09 at 101.00 AAA 1,048,680 Facilities Revenue Bonds, Rental Car Projects, Series 1999A, 6.000%, 1/01/13 - MBIA Insured (Alternative Minimum Tax) 1,000 Denver City and County, Colorado, Airport System Revenue 11/06 at 102.00 AAA 1,025,380 Bonds, Series 1996B, 5.625%, 11/15/08 - MBIA Insured (Alternative Minimum Tax) 2,000 E-470 Public Highway Authority, Colorado, Toll Revenue No Opt. Call AAA 400,940 Bonds, Series 2004B, 0.000%, 3/01/36 - MBIA Insured 2,000 Metropolitan Football Stadium District, Colorado, Sales Tax No Opt. Call AAA 1,591,099 Revenue Bonds, Series 1999A, 0.000%, 1/01/12 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------ 7,000 Total Colorado 5,083,696 - ------------------------------------------------------------------------------------------------------------------------ Connecticut - 1.3% 785 Connecticut Development Authority, First Mortgage Gross 12/06 at 103.00 BBB+ 791,178 Revenue Refunding Healthcare Bonds, Elim Park Baptist Home Inc., Series 1998A, 4.875%, 12/01/07 185 Connecticut Health and Educational Facilities Authority, No Opt. Call BB+ 185,268 Revenue Bonds, Hospital for Special Care, Series 1997B, 5.125%, 7/01/07 - ------------------------------------------------------------------------------------------------------------------------ 970 Total Connecticut 976,446 - ------------------------------------------------------------------------------------------------------------------------ District of Columbia - 0.5% 255 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 277,876 Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured 130 Washington Convention Center Authority, District of 10/08 at 101.00 AAA 132,977 Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%, 10/01/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------ 385 Total District Of Columbia 410,853 - ------------------------------------------------------------------------------------------------------------------------ Idaho - 0.3% 205 Idaho Housing and Finance Association, Single Family 1/07 at 102.00 Aa3 208,276 Mortgage Bonds, Series 1997D, 5.950%, 7/01/09 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------ Illinois - 4.6% 980 Bolingbrook, Will and DuPage Counties, Illinois, No Opt. Call AAA 1,050,903 Residential Mortgage Revenue Bonds, Series 1979, 7.500%, 8/01/10 - FGIC Insured (ETM)
- ---- 19 Portfolio of Investments NUVEEN BALANCED MUNICIPAL AND STOCK FUND (continued) June 30, 2006
Principal Optional Call Amount (000) Description Provisions (2) Ratings (3) Value - ------------------------------------------------------------------------------------------------------------------------ Illinois (continued) Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1: $ 1,735 0.000%, 12/01/24 - FGIC Insured No Opt. Call AAA $ 699,882 2,205 0.000%, 12/01/29 - FGIC Insured No Opt. Call AAA 682,602 65 Chicago, Illinois, General Obligation Refunding Bonds, 1/08 at 100.00 AAA 65,669 Series 1996B, 5.125%, 1/01/25 - FGIC Insured Illinois Development Finance Authority, Economic Development Revenue Bonds, Latin School of Chicago, Series 1998: 270 5.200%, 8/01/11 (Pre-refunded 8/01/08) 8/08 at 100.00 Baa2 (4) 276,369 200 5.250%, 8/01/12 (Pre-refunded 8/01/08) 8/08 at 100.00 Baa2 (4) 204,916 580 5.300%, 8/01/13 (Pre-refunded 8/01/08) 8/08 at 100.00 Baa2 (4) 594,831 - ------------------------------------------------------------------------------------------------------------------------ 6,035 Total Illinois 3,575,172 - ------------------------------------------------------------------------------------------------------------------------ Indiana - 1.1% 860 St. Joseph County Hospital Authority, Indiana, Revenue 2/08 at 101.00 AAA 831,044 Bonds, Memorial Health System, Series 1998A, 4.625%, 8/15/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------ Louisiana - 0.5% 340 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 353,617 Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------ Maine - 0.3% 255 Winslow, Maine, General Obligation Tax Increment Financing 3/07 at 102.00 AAA 262,941 Bonds, Crowe Rope Industries, Series 1997A, 6.000%, 3/01/11 - MBIA Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------ Massachusetts - 1.9% 885 Massachusetts Development Finance Agency, Resource Recovery 12/08 at 102.00 BBB 905,983 Revenue Bonds, Ogden Haverhill Associates, Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax) 590 Massachusetts Turnpike Authority, Western Turnpike Revenue 7/06 at 100.00 AAA 613,252 Bonds, Series 1997A, 5.550%, 1/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------ 1,475 Total Massachusetts 1,519,235 - ------------------------------------------------------------------------------------------------------------------------ Michigan - 0.7% 540 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 523,422 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.000%, 8/15/13 - ------------------------------------------------------------------------------------------------------------------------ Minnesota - 0.7% 500 Minnesota, General Obligation Bonds, Series 1998, 5.000%, 11/08 at 100.00 AAA 509,565 11/01/17 - ------------------------------------------------------------------------------------------------------------------------ Mississippi - 1.3% 500 Jones County, Mississippi, Hospital Revenue Bonds, South 12/07 at 100.00 BBB+ 506,220 Central Regional Medical Center, Series 1997, 5.400%, 12/01/11 500 Mississippi Development Bank, Revenue Bonds, Mississippi 3/16 at 100.00 AAA 513,275 Municipal Energy Agency, Mississippi Power, Series 2006A, 5.000%, 3/01/21 - XLCA Insured - ------------------------------------------------------------------------------------------------------------------------ 1,000 Total Mississippi 1,019,495 - ------------------------------------------------------------------------------------------------------------------------ Missouri - 1.1% 1,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 353,100 Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/27 - AMBAC Insured 500 Missouri Joint Municipal Electric Utility Commission, Plum 1/16 at 100.00 AAA 518,960 Point Project, Revenue Bonds, Series 2006, 5.000%, 1/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------ 1,500 Total Missouri 872,060 - ------------------------------------------------------------------------------------------------------------------------ Nevada - 0.7% 480 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 504,173 Improvement Revenue Bonds, Series 2003, 5.125%, 7/01/17 - AMBAC Insured 30 Nevada Housing Division, Single Family Mortgage Bonds, 4/07 at 102.00 Aa3 30,105 Mezzanine Series 1997B-1, 6.000%, 4/01/15 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------ 510 Total Nevada 534,278 - ------------------------------------------------------------------------------------------------------------------------
- ---- 20
Principal Optional Call Amount (000) Description Provisions (2) Ratings (3) Value - ------------------------------------------------------------------------------------------------------------------------ New Hampshire - 1.9% $ 1,050 New Hampshire Higher Educational and Health Facilities 1/07 at 102.00 BBB- $ 1,078,928 Authority, Revenue Bonds, New Hampshire College, Series 1997, 6.200%, 1/01/12 400 New Hampshire Higher Educational and Health Facilities 1/07 at 102.00 BBB- (4) 412,656 Authority, Revenue Bonds, New Hampshire College, Series 1997, 6.200%, 1/01/12 (Pre-refunded 1/01/07) - ------------------------------------------------------------------------------------------------------------------------ 1,450 Total New Hampshire 1,491,584 - ------------------------------------------------------------------------------------------------------------------------ New Jersey - 1.1% 500 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 539,320 Transportation System Bonds, Series 2006A, 5.250%, 12/15/22 - FSA Insured 275 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 287,089 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 - ------------------------------------------------------------------------------------------------------------------------ 775 Total New Jersey 826,409 - ------------------------------------------------------------------------------------------------------------------------ New York - 7.8% 1,000 City University of New York, Certificates of Participation No Opt. Call AA- 1,002,640 Refunding, John Jay College of Criminal Justice, Series 1995A, 6.000%, 8/15/06 500 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 519,245 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 2/01/19 - FGIC Insured 125 New York City, New York, General Obligation Bonds, Fiscal 11/06 at 101.50 A+ 127,595 Series 1997D, 5.875%, 11/01/11 5 New York City, New York, General Obligation Bonds, Fiscal 11/06 at 101.50 A+ (4) 5,110 Series 1997D, 5.875%, 11/01/11 (Pre-refunded 11/01/06) 360 New York City, New York, General Obligation Bonds, Fiscal 4/07 at 101.00 A+ (4) 369,853 Series 1997I, 6.000%, 4/15/09 (Pre-refunded 4/15/07) 700 New York City, New York, General Obligation Bonds, Fiscal 8/07 at 101.00 A+ 716,954 Series 1998D, 5.500%, 8/01/10 300 New York City, New York, General Obligation Bonds, Fiscal 8/07 at 101.00 A+ (4) 308,511 Series 1998D, 5.500%, 8/01/10 (Pre-refunded 8/01/07) New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C: 1,000 5.500%, 6/01/15 6/10 at 100.00 AA- 1,045,570 500 5.500%, 6/01/16 6/11 at 100.00 AA- 528,030 1,430 New York State Urban Development Corporation, Service No Opt. Call AAA 1,457,256 Contract Revenue Bonds, Youth Facilities, Series 1997, 6.500%, 4/01/07 - ------------------------------------------------------------------------------------------------------------------------ 5,920 Total New York 6,080,764 - ------------------------------------------------------------------------------------------------------------------------ North Carolina - 1.8% 205 North Carolina Eastern Municipal Power Agency, Power System 1/08 at 101.00 AAA 210,761 Revenue Refunding Bonds, Series 1997A, 5.375%, 1/01/24 - MBIA Insured 1,065 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 1,198,785 Revenue Bonds, Series 1980, 10.500%, 1/01/10 (ETM) - ------------------------------------------------------------------------------------------------------------------------ 1,270 Total North Carolina 1,409,546 - ------------------------------------------------------------------------------------------------------------------------ Ohio - 1.3% 1,000 Lorain County, Ohio, Healthcare Facilities Revenue 2/08 at 101.00 BBB 1,012,840 Refunding Bonds, Kendal at Oberlin, Series 1998A, 5.375%, 2/01/12 - ------------------------------------------------------------------------------------------------------------------------ Oklahoma - 1.9% 470 Edmond Public Works Authority, Oklahoma, Utility System 7/09 at 100.00 AAA 492,776 Revenue Refunding Bonds, Series 1999, 5.600%, 7/01/19 (Pre-refunded 7/01/09) - AMBAC Insured 1,000 Oklahoma State Industries Authority, Health System Revenue No Opt. Call AAA 1,023,120 Refunding Bonds, Baptist Medical Center, Series 1995D, 6.000%, 8/15/07 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------ 1,470 Total Oklahoma 1,515,896 - ------------------------------------------------------------------------------------------------------------------------
- ---- 21 Portfolio of Investments NUVEEN BALANCED MUNICIPAL AND STOCK FUND (continued) June 30, 2006
Principal Optional Call Amount (000) Description Provisions (2) Ratings (3) Value - ------------------------------------------------------------------------------------------------------------------------ Oregon - 0.6% $ 470 Oregon Housing and Community Services Department, Single 1/14 at 100.00 Aa2 $ 482,267 Family Mortgage Revenue Bonds, Series 2004H, 5.125%, 1/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------ Rhode Island - 1.0% 760 Providence, Rhode Island, General Obligation Bonds, Series 7/07 at 101.00 AAA 784,548 1997A, 6.000%, 7/15/09 (Pre-refunded 7/15/07) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------ South Carolina - 3.5% 250 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 260,465 Installment Purchase Revenue Bonds, Growth, Series 2004, 5.250%, 12/01/20 1,000 Greenville County School District, South Carolina, 12/12 at 101.00 AA- (4) 1,108,340 Installment Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19 (Pre-refunded 12/01/12) 500 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 524,735 FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%, 8/15/20 - MBIA Insured 775 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 BBB 812,572 Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------ 2,525 Total South Carolina 2,706,112 - ------------------------------------------------------------------------------------------------------------------------ Texas - 4.3% 2,000 Abilene Higher Education Authority, Inc., Texas, Student 11/08 at 100.00 Aa3 2,013,258 Loan Revenue Bonds, Subordinate Series 1998B, 5.050%, 7/01/13 (Alternative Minimum Tax) 500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 505,295 Revenue Bonds, Series 2001, 5.000%, 12/01/31 - AMBAC Insured 1,000 Harris County-Houston Sports Authority, Texas, Junior Lien No Opt. Call AAA 291,760 Revenue Bonds, Series 2001H, 0.000%, 11/15/30 - MBIA Insured 630 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 187,400 Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/30 - AMBAC Insured 250 San Antonio, Texas, Airport System Improvement Revenue 7/06 at 101.00 AAA 252,775 Bonds, Series 1996, 5.700%, 7/01/09 - FGIC Insured (Alternative Minimum Tax) 65 Texas Department of Housing, Single Family Mortgage Revenue 9/06 at 102.00 AAA 66,498 Bonds, Series 1996E, 5.750%, 3/01/10 (Pre-refunded 9/01/06) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------ 4,445 Total Texas 3,316,986 - ------------------------------------------------------------------------------------------------------------------------ Utah - 0.3% 200 Utah State Board of Regents, Student Loan Revenue Bonds, 11/06 at 101.00 AAA 204,138 Series 1995N, 6.000%, 5/01/08 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------ Virginia - 0.3% 250 Fairfax County Industrial Development Authority, Virginia, 2/08 at 101.00 AA+ 251,420 Healthcare Revenue Refunding Bonds, Inova Health System, Series 1998A, 5.000%, 8/15/25 - ------------------------------------------------------------------------------------------------------------------------ Washington - 2.5% 750 Central Puget Sound Regional Transit Authority, Washington, 2/09 at 101.00 AAA 739,508 Sales Tax and Motor Vehicle Excise Tax Bonds, Series 1999, 4.750%, 2/01/28 - FGIC Insured 465 Cowlitz County Public Utilities District 1, Washington, 9/14 at 100.00 AAA 476,723 Electric Production Revenue Bonds, Series 2004, 5.000%, 9/01/22 - FGIC Insured 700 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 761,390 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 - ------------------------------------------------------------------------------------------------------------------------ 1,915 Total Washington 1,977,621 - ------------------------------------------------------------------------------------------------------------------------ West Virginia - 0.6% 500 West Virginia Hospital Finance Authority, Revenue Bonds, 6/16 at 100.00 AAA 481,190 United Hospital Center Inc. Project, Series 2006A, 4.500%, 6/01/26 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------
- ---- 22
Principal Optional Call Amount (000) Description Provisions (2) Ratings (3) Value - ------------------------------------------------------------------------------------------------------------------- Wisconsin - 0.7% $ 520 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB $ 555,261 Tobacco Settlement Asset-Backed Bonds, Series 2002, 6.375%, 6/01/32 - ------------------------------------------------------------------------------------------------------------------- $ 50,275 Total Municipal Bonds (cost $44,184,057) 44,928,325 - ------------------------------------------------------------------------------------------------------------------- - ------------ Total Investments (cost $68,583,677) - 96.5% 75,222,836 ----------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.5% 2,704,994 ----------------------------------------------------------------------------------------------------- Net Assets - 100% $ 77,927,830 -----------------------------------------------------------------------------------------------------
(1) Non-income producing. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (ETM) Escrowed to maturity. ADR American Depositary Receipt. See accompanying notes to financial statements. - ---- 23 Portfolio of Investments NUVEEN BALANCED STOCK AND BOND FUND June 30, 2006
Shares Description Value - ---------------------------------------------------------------------------------- COMMON STOCKS - 61.4% Aerospace & Defense - 1.6% 21,300 Honeywell International Inc. $ 858,390 - ---------------------------------------------------------------------------------- Beverages - 1.7% 15,300 PepsiCo, Inc. 918,612 - ---------------------------------------------------------------------------------- Building Products - 0.8% 4,650 Textron Inc. 428,637 - ---------------------------------------------------------------------------------- Capital Markets - 1.2% 4,400 Goldman Sachs Group, Inc. 661,892 - ---------------------------------------------------------------------------------- Commercial Banks - 4.8% 34,450 Bank of America Corporation 1,657,045 15,000 Wells Fargo & Company 1,006,200 - ---------------------------------------------------------------------------------- Total Commercial Banks 2,663,245 -------------------------------------------------------------------------- Communications Equipment - 1.2% 33,150 Motorola, Inc. 667,973 - ---------------------------------------------------------------------------------- Computers & Peripherals - 2.9% 26,900 EMC Corporation, (1) 295,093 16,900 Hewlett-Packard Company 535,392 10,250 International Business Machines Corporation (IBM) 787,405 - ---------------------------------------------------------------------------------- Total Computers & Peripherals 1,617,890 -------------------------------------------------------------------------- Consumer Finance - 1.0% 6,400 Capital One Financial Corporation 546,880 - ---------------------------------------------------------------------------------- Containers & Packaging - 0.6% 8,300 Temple Inland Inc. 355,821 - ---------------------------------------------------------------------------------- Diversified Financial Services - 5.6% 8,300 CIT Group Inc. 434,007 32,574 Citigroup Inc. 1,571,370 25,300 JPMorgan Chase & Co. 1,062,600 - ---------------------------------------------------------------------------------- Total Diversified Financial Services 3,067,977 -------------------------------------------------------------------------- Diversified Telecommunication Services - 3.5% 28,850 BellSouth Corporation 1,044,370 44,500 Sprint Nextel Corporation 889,555 - ---------------------------------------------------------------------------------- Total Diversified Telecommunication Services 1,933,925 -------------------------------------------------------------------------- Electric Utilities - 3.1% 12,750 Entergy Corporation 902,063 13,900 Exelon Corporation 789,937 - ---------------------------------------------------------------------------------- Total Electric Utilities 1,692,000 -------------------------------------------------------------------------- Energy Equipment & Services - 1.5% 7,350 Halliburton Company 545,443 4,550 National-Oilwell Varco Inc., (1) 288,106 - ---------------------------------------------------------------------------------- Total Energy Equipment & Services 833,549 -------------------------------------------------------------------------- Food & Staples Retailing - 1.6% 17,900 Wal-Mart Stores, Inc. 862,243 - ----------------------------------------------------------------------------------
- ---- 24
Shares Description Value - ---------------------------------------------------------------------------------- Health Care Equipment & Supplies - 2.0% 25,700 Baxter International Inc. $ 944,732 8,450 Boston Scientific Corporation, (1) 142,298 - ---------------------------------------------------------------------------------- Total Health Care Equipment & Supplies 1,087,030 -------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 2.1% 1,850 Carnival Corporation 77,219 32,000 McDonald's Corporation 1,075,200 - ---------------------------------------------------------------------------------- Total Hotels, Restaurants & Leisure 1,152,419 -------------------------------------------------------------------------- Industrial Conglomerates - 1.9% 31,750 General Electric Company 1,046,480 - ---------------------------------------------------------------------------------- Insurance - 3.7% 14,700 American International Group, Inc. 868,035 13,399 Aon Corporation 466,553 15,850 St. Paul Travelers Companies, Inc. 706,593 - ---------------------------------------------------------------------------------- Total Insurance 2,041,181 -------------------------------------------------------------------------- Machinery - 1.0% 7,150 Caterpillar Inc. 532,532 - ---------------------------------------------------------------------------------- Metals & Mining - 0.9% 6,950 United States Steel Corporation 487,334 - ---------------------------------------------------------------------------------- Multi-Utilities - 1.5% 11,200 Dominion Resources, Inc. 837,648 - ---------------------------------------------------------------------------------- Oil, Gas, & Consumable Fuels - 6.7% 11,900 Amerada Hess Corporation 628,915 26,750 Exxon Mobil Corporation 1,641,113 9,543 Marathon Oil Corporation 794,932 6,450 Occidental Petroleum Corporation 661,448 - ---------------------------------------------------------------------------------- Total Oil, Gas, & Consumable Fuels 3,726,408 -------------------------------------------------------------------------- Paper & Forest Products - 1.0% 17,250 International Paper Company 557,175 - ---------------------------------------------------------------------------------- Pharmaceuticals - 3.4% 23,300 Abbott Laboratories 1,016,113 16,150 Norvatis AG, ADR 870,808 - ---------------------------------------------------------------------------------- Total Pharmaceuticals 1,886,921 -------------------------------------------------------------------------- Road & Rail - 2.9% 7,400 CSX Corporation 521,256 10,050 Norfolk Southern Corporation 534,861 6,150 Union Pacific Corporation 571,704 - ---------------------------------------------------------------------------------- Total Road & Rail 1,627,821 -------------------------------------------------------------------------- Semiconductors & Equipment - 0.5% 10,650 Freescale Semiconductor, Inc., Class B, (1) 313,110 - ---------------------------------------------------------------------------------- Textiles Apparel & Luxury Goods - 0.7% 4,800 Nike Inc., Class B 388,800 - ----------------------------------------------------------------------------------
- ---- 25 Portfolio of Investments NUVEEN BALANCED STOCK AND BOND FUND (continued) June 30, 2006
Shares Description Value - ------------------------------------------------------------------------------- Tobacco - 2.0% 15,150 Altria Group, Inc. $ 1,112,465 - ------------------------------------------------------------------------------- Total Common Stocks (cost $27,548,459) 33,906,358 -----------------------------------------------------------------------
Principal Amount (000) Description Coupon Maturity Value - -------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 35.5% $ 2,375 United States of America Treasury Notes 7.000% 7/15/06 $ 2,376,672 3,300 United States of America Treasury Notes 3.125% 1/31/07 3,260,169 3,825 United States of America Treasury Notes 4.750% 11/15/08 3,791,981 3,430 United States of America Treasury Notes 5.750% 8/15/10 3,515,349 2,610 United States of America Treasury Bonds 7.250% 5/15/16 3,022,912 1,900 United States of America Treasury Bonds 7.250% 8/15/22 2,292,914 1,280 United States of America Treasury Bonds 6.000% 2/15/26 1,386,900 - -------------------------------------------------------------------------------------------------------- $ 18,720 Total U.S. Government and Agency Obligations (cost 19,646,897 $19,537,887) - -------------------------------------------------------------------------------------------------------- - ------------ SHORT-TERM INVESTMENTS - 2.7% $ 1,502 Repurchase Agreement with State Street Bank, dated 6/30/06, 4.130% 7/03/06 1,501,738 repurchase price $1,502,255 collateralized by $1,135,000 U.S. Treasury Bonds, 9.875%, due 11/15/15, value $1,535,974 - -------------------------------------------------------------------------------------------------------- - ------------ Total Short-Term Investments (cost $1,501,738) 1,501,738 ------------------------------------------------------------------------------------------- Total Investments (cost $48,588,084) - 99.6% 55,054,993 ------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.4% 194,455 ------------------------------------------------------------------------------------------- Net Assets - 100% $ 55,249,448 -------------------------------------------------------------------------------------------
(1) Non-income producing. ADR American Depositary Receipt. See accompanying notes to financial statements. - ---- 26 Statement of Assets and Liabilities June 30, 2006
Large-Cap Municipal Stock and Value and Stock Bond - --------------------------------------------------------------------------------------------------- Assets Investments, at value (cost $426,825,506, $68,583,677 and $48,588,084, respectively) $520,106,284 $75,222,836 $55,054,993 Cash -- 723,154 -- Receivables: Dividends 452,461 27,064 30,270 Interest 2,237 749,276 321,956 Investments sold 4,812,097 1,633,944 335,180 Shares sold 74,221 36,942 52,673 Other assets 151,140 27,747 14,996 - --------------------------------------------------------------------------------------------------- Total assets 525,598,440 78,420,963 55,810,068 - --------------------------------------------------------------------------------------------------- Liabilities Payables: Investments purchased 2,424,191 147,845 163,200 Shares redeemed 526,946 119,933 68,272 Accrued expenses: Management fees 349,964 34,698 12,278 12b-1 distribution and service fees 135,471 27,353 19,071 Other 351,649 42,545 27,392 Dividends payable -- 120,759 270,407 - --------------------------------------------------------------------------------------------------- Total liabilities 3,788,221 493,133 560,620 - --------------------------------------------------------------------------------------------------- Net assets $521,810,219 $77,927,830 $55,249,448 - --------------------------------------------------------------------------------------------------- Class A Shares Net assets $440,403,141 $58,064,418 $30,643,516 Shares outstanding 16,172,503 2,433,700 1,206,388 Net asset value per share $ 27.23 $ 23.86 $ 25.40 Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) $ 28.89 $ 25.32 $ 26.95 - --------------------------------------------------------------------------------------------------- Class B Shares Net assets $ 26,994,506 $10,699,698 $ 8,051,429 Shares outstanding 1,013,225 422,520 316,988 Net asset value and offering price per share $ 26.64 $ 25.32 $ 25.40 - --------------------------------------------------------------------------------------------------- Class C Shares Net assets $ 28,692,178 $ 7,992,366 $ 7,341,707 Shares outstanding 1,078,663 316,018 288,840 Net asset value and offering price per share $ 26.60 $ 25.29 $ 25.42 - --------------------------------------------------------------------------------------------------- Class R Shares Net assets $ 25,720,394 $ 1,171,348 $ 9,212,796 Shares outstanding 940,969 50,193 362,712 Net asset value and offering price per share $ 27.33 $ 23.34 $ 25.40 - --------------------------------------------------------------------------------------------------- Net Assets Consist of: - --------------------------------------------------------------------------------------------------- Capital paid-in $395,318,529 $74,723,149 $46,980,711 Undistributed (Over-distribution of) net investment income 2,067,563 408,145 (222,756) Accumulated net realized gain (loss) from investments and foreign currency transactions 31,143,349 (3,842,623) 2,024,584 Net unrealized appreciation (depreciation) of investments and foreign currency translation 93,280,778 6,639,159 6,466,909 - --------------------------------------------------------------------------------------------------- Net assets $521,810,219 $77,927,830 $55,249,448 - ---------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 27 Statement of Operations Year Ended June 30, 2006
Large-Cap Municipal Stock and Value and Stock Bond -------------------------------------------------------------------------- Investment Income Dividends (net of foreign tax withheld of $34,115, $2,145 and $2,302, respectively) $10,714,421 $ 703,831 $ 737,351 Interest 427,446 2,326,267 1,103,135 -------------------------------------------------------------------------- Total investment income 11,141,867 3,030,098 1,840,486 -------------------------------------------------------------------------- Expenses Management fees 4,339,175 595,196 432,401 12b-1 service fees - Class A 1,096,274 142,029 78,557 12b-1 distribution and service fees - Class B 364,222 147,419 100,294 12b-1 distribution and service fees - Class C 297,998 79,142 77,949 Shareholders' servicing agent fees and expenses 695,122 70,143 69,481 Custodian's fees and expenses 133,182 66,430 49,225 Trustees' fees and expenses 11,703 1,732 1,207 Professional fees 55,021 14,321 11,650 Shareholders' reports - printing and mailing expenses 140,614 14,722 13,442 Federal and state registration fees 33,957 40,923 39,795 Other expenses 28,073 5,543 4,453 -------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 7,195,341 1,177,600 878,454 Custodian fee credit (265) (18,837) (176) Expense reimbursement -- (12,598) (43,075) -------------------------------------------------------------------------- Net expenses 7,195,076 1,146,165 835,203 -------------------------------------------------------------------------- Net investment income 3,946,791 1,883,933 1,005,283 -------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) Net realized gain (loss) from investments and foreign currency transactions 61,963,102 5,013,199 4,643,595 Net increase from payments by the Adviser for losses realized on the disposal of investments purchased in violation of investment restrictions -- -- 55,844 Net change in unrealized appreciation (depreciation) of investments and foreign currency translation 2,529,520 (1,932,063) (1,463,090) -------------------------------------------------------------------------- Net realized and unrealized gain (loss) 64,492,622 3,081,136 3,236,349 -------------------------------------------------------------------------- Net increase (decrease) in net assets from operations $68,439,413 $ 4,965,069 $ 4,241,632 --------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 28 Statement of Changes in Net Assets
Large-Cap Value --------------------------- Year Ended Year Ended 6/30/06 6/30/05 - ---------------------------------------------------------------------------------------------------------- Operations Net investment income $ 3,946,791 $ 6,367,221 Net realized gain (loss) from investments and foreign currency transactions 61,963,102 58,498,613 Net increase from payments by the Adviser for losses realized on the disposal of investments purchased in violation of investment restrictions -- -- Net change in unrealized appreciation (depreciation) of investments and foreign currency translation 2,529,520 (12,622,835) - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 68,439,413 52,242,999 - ---------------------------------------------------------------------------------------------------------- Distributions to Shareholders From net investment income: Class A (3,858,364) (4,903,179) Class B (52,997) (230,958) Class C (42,413) (156,848) Class R (231,877) (299,082) From accumulated net realized gains: Class A (25,404,175) -- Class B (2,324,281) -- Class C (1,772,793) -- Class R (1,181,667) -- - ---------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (34,868,567) (5,590,067) - ---------------------------------------------------------------------------------------------------------- Fund Share Transactions Proceeds from sale of shares 37,747,482 13,830,734 Proceeds from shares issued to shareholders due to reinvestment of distributions 24,741,918 3,706,927 - ---------------------------------------------------------------------------------------------------------- 62,489,400 17,537,661 Cost of shares redeemed (88,922,290) (104,265,228) - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions (26,432,890) (86,727,567) - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 7,137,956 (40,074,635) Net assets at the beginning of year 514,672,263 554,746,898 - ---------------------------------------------------------------------------------------------------------- Net assets at the end of year $521,810,219 $ 514,672,263 - ---------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of year $ 2,067,563 $ 2,306,170 - ----------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 29 Statement of Changes in Net Assets (continued)
Municipal and Stock Stock and Bond -------------------------- -------------------------- Year Ended Year Ended Year Ended Year Ended 6/30/06 6/30/05 6/30/06 6/30/05 - ---------------------------------------------------------------------------------------------------------- Operations Net investment income $ 1,883,933 $ 2,113,691 $ 1,005,283 $ 1,264,115 Net realized gain (loss) from investments and foreign currency transactions 5,013,199 3,462,086 4,643,595 3,921,853 Net increase from payments by the Adviser for losses realized on the disposal of investments purchased in violation of investment restrictions -- -- 55,844 -- Net change in unrealized appreciation (depreciation) of investments and foreign currency translation (1,932,063) 595,869 (1,463,090) (264,320) - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 4,965,069 6,171,646 4,241,632 4,921,648 - ---------------------------------------------------------------------------------------------------------- Distributions to Shareholders From net investment income: Class A (1,530,698) (1,607,229) (653,492) (808,608) Class B (190,777) (310,936) (128,206) (213,933) Class C (103,600) (116,054) (103,140) (144,821) Class R (33,596) (25,445) (206,695) (284,060) From accumulated net realized gains: Class A -- -- (2,220,095) -- Class B -- -- (761,016) -- Class C -- -- (550,514) -- Class R -- -- (611,775) -- - ---------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (1,858,671) (2,059,664) (5,234,933) (1,451,422) - ---------------------------------------------------------------------------------------------------------- Fund Share Transactions Proceeds from sale of shares 10,692,997 6,647,152 9,533,361 6,940,088 Proceeds from shares issued to shareholders due to reinvestment of distributions 1,364,469 1,403,785 3,643,710 952,452 - ---------------------------------------------------------------------------------------------------------- 12,057,466 8,050,937 13,177,071 7,892,540 Cost of shares redeemed (18,969,859) (19,271,481) (18,445,473) (13,371,775) - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions (6,912,393) (11,220,544) (5,268,402) (5,479,235) - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets (3,805,995) (7,108,562) (6,261,703) (2,009,009) Net assets at the beginning of year 81,733,825 88,842,387 61,511,151 63,520,160 - ---------------------------------------------------------------------------------------------------------- Net assets at the end of year $ 77,927,830 $ 81,733,825 $ 55,249,448 $ 61,511,151 - ---------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of year $ 408,145 $ 382,885 $ (222,756) $ (284,755) - ----------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 30 Notes to Financial Statements 1. General Information and Significant Accounting Policies The Nuveen Investment Trust (the "Trust") is an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of the Nuveen Large-Cap Value Fund ("Large-Cap Value"), Nuveen Balanced Municipal and Stock Fund ("Municipal and Stock") and Nuveen Balanced Stock and Bond Fund ("Stock and Bond") (collectively, the "Funds"), among others. The Trust was organized as a Massachusetts business trust in 1996. Large-Cap Value invests primarily in a diversified portfolio of large and mid-cap equities of domestic companies in an attempt to provide capital growth. Municipal and Stock invests in a mix of equities and tax-exempt securities in an attempt to provide capital growth, capital preservation and current tax-exempt income. Stock and Bond invests in a mix of equities, taxable bonds and cash equivalents in an attempt to provide capital growth, capital preservation and current income. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Investment Valuation Exchange-listed securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price. The prices of fixed-income securities are generally provided by an independent pricing service approved by the Funds' Board of Trustees and based on the mean between the bid and asked prices. When price quotes are not readily available, the pricing service or, in the absence of a pricing service for a particular investment, the Board of Trustees of the Funds, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from securities dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant by the pricing service or the Board of Trustees' designee. Short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At June 30, 2006, there were no such outstanding purchase commitments in any of the Funds. Investment Income Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also includes paydown gains and losses, if any. Dividends and Distributions to Shareholders Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Taxable net investment income is declared and distributed to shareholders annually for Large-Cap Value and Municipal and Stock, and quarterly for Stock and Bond. Tax-exempt net investment income is declared as a dividend monthly for Municipal and Stock. Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. In addition, Municipal and Stock intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Fund. All monthly tax-exempt income dividends paid by Municipal and Stock during the fiscal year ended June 30, 2006, have been designated Exempt Interest Dividends. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. - ---- 31 Notes to Financial Statements (continued) Flexible Sales Charge Program Each Fund offers Class A, B, C and R Shares. Class A Shares are generally sold with an up-front sales charge and incur a .25% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge ("CDSC") if redeemed within 18 months of purchase. Class B Shares are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares convert to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC of 1% if Class C Shares are redeemed within one year of purchase. Class R Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class R Shares are available only under limited circumstances. Derivative Financial Instruments The Funds are authorized to invest in certain derivative financial instruments including futures forward, swap and option contracts and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not invest in any such instruments during the fiscal year ended June 30, 2006. Repurchase Agreements In connection with transactions in repurchase agreements, it is the Funds' 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 seller defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited. Expense Allocation Expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution and service fees, are recorded to the specific class. Foreign Currency Translation To the extent that a Fund invests in securities that are denominated in a currency other than U.S. dollars, the Fund 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 Fund's investments in securities denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and dividend income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions. The gains or losses resulting from changes in foreign exchange rates are included with net realized and unrealized gain (loss) in the Statement of Operations. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Trust's organizational documents, their Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. - ---- 32 2. Fund Shares Transactions in Fund shares were as follows:
Large-Cap Value --------------------------------------------------- Year Ended Year Ended 6/30/06 6/30/05 ------------------------ ------------------------- Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------- Shares sold: Class A 635,413 $ 16,943,627 243,277 $ 5,930,149 Class A - automatic conversion of Class B shares 355,884 9,566,550 86,042 2,180,452 Class B 66,228 1,729,560 56,330 1,348,407 Class C 106,547 2,778,209 76,046 1,796,614 Class R 247,984 6,729,536 104,815 2,575,112 Shares issued to shareholders due to reinvestment of distributions: Class A 804,708 21,039,230 128,704 3,221,452 Class B 56,295 1,438,042 5,574 137,228 Class C 35,224 898,356 3,026 74,382 Class R 52,067 1,366,290 10,915 273,865 - -------------------------------------------------------------------------------------------------------- 2,360,350 62,489,400 714,729 17,537,661 - -------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (1,902,950) (51,111,985) (2,719,943) (66,224,977) Class B (550,332) (14,459,366) (630,663) (15,055,074) Class B - automatic conversion to Class A shares (363,475) (9,566,550) (87,696) (2,180,452) Class C (289,578) (7,585,488) (755,295) (17,872,917) Class R (229,863) (6,198,901) (119,097) (2,931,808) - -------------------------------------------------------------------------------------------------------- (3,336,198) (88,922,290) (4,312,694) (104,265,228) - -------------------------------------------------------------------------------------------------------- Net increase (decrease) (975,848) $(26,432,890) (3,597,965) $ (86,727,567) - --------------------------------------------------------------------------------------------------------
- ---- 33 Notes to Financial Statements (continued)
Municipal and Stock ---------------------------------------------- Year Ended Year Ended 6/30/06 6/30/05 ---------------------- ---------------------- Shares Amount Shares Amount - --------------------------------------------------------------------------------------------------- Shares sold: Class A 243,271 $ 5,748,229 193,539 $ 4,353,962 Class A - automatic conversion of Class B shares 147,913 3,513,967 12,433 300,302 Class B 14,020 354,300 36,156 849,414 Class C 23,027 577,227 47,077 1,123,538 Class R 21,682 499,274 892 19,936 Shares issued to shareholders due to reinvestment of distributions: Class A 49,389 1,167,307 50,974 1,149,503 Class B 4,503 112,504 7,037 166,401 Class C 2,698 67,533 3,129 73,982 Class R 740 17,125 628 13,899 - --------------------------------------------------------------------------------------------------- 507,243 12,057,466 351,865 8,050,937 - --------------------------------------------------------------------------------------------------- Shares redeemed: Class A (367,338) (8,698,020) (482,074) (10,790,186) Class B (225,880) (5,655,645) (265,863) (6,289,888) Class B - automatic conversion to Class A shares (139,678) (3,513,967) (13,102) (300,302) Class C (38,872) (964,375) (79,365) (1,868,691) Class R (5,948) (137,852) (998) (22,414) - --------------------------------------------------------------------------------------------------- (777,716) (18,969,859) (841,402) (19,271,481) - --------------------------------------------------------------------------------------------------- Net increase (decrease) (270,473) $ (6,912,393) (489,537) $(11,220,544) - --------------------------------------------------------------------------------------------------- Stock and Bond ---------------------------------------------- Year Ended Year Ended 6/30/06 6/30/05 ---------------------- ---------------------- Shares Amount Shares Amount - --------------------------------------------------------------------------------------------------- Shares sold: Class A 165,498 $ 4,281,193 96,409 $ 2,437,598 Class A - automatic conversion of Class B shares 49,777 1,284,510 8,624 223,741 Class B 38,630 993,077 54,370 1,368,646 Class C 51,412 1,311,552 29,622 749,273 Class R 63,847 1,663,029 86,026 2,160,830 Shares issued to shareholders due to reinvestment of distributions: Class A 84,862 2,138,838 21,460 539,563 Class B 19,061 478,808 4,250 106,895 Class C 9,732 244,679 1,858 46,759 Class R 30,987 781,385 10,304 259,235 - --------------------------------------------------------------------------------------------------- 513,806 13,177,071 312,923 7,892,540 - --------------------------------------------------------------------------------------------------- Shares redeemed: Class A (297,679) (7,728,324) (278,940) (7,046,198) Class B (136,424) (3,515,493) (111,712) (2,817,908) Class B - automatic conversion to Class A shares (49,817) (1,284,510) (8,636) (223,741) Class C (78,316) (2,026,429) (76,723) (1,932,493) Class R (146,432) (3,890,717) (53,262) (1,351,435) - --------------------------------------------------------------------------------------------------- (708,668) (18,445,473) (529,273) (13,371,775) - --------------------------------------------------------------------------------------------------- Net increase (decrease) (194,862) $ (5,268,402) (216,350) $ (5,479,235) - ---------------------------------------------------------------------------------------------------
- ---- 34 3. Investment Transactions Purchases and sales (including maturities but excluding short-term investments) for the fiscal year ended June 30, 2006, were as follows:
Large-Cap Municipal Stock and Value and Stock Bond ------------------------------------------------------------------------------ Purchases: Investment securities $421,186,426 $34,741,525 $30,157,759 U.S. Government and agency obligations -- -- 1,710,522 Sales and maturities: Investment securities 494,748,926 43,276,461 37,986,159 U.S. Government and agency obligations -- -- 4,359,164 ------------------------------------------------------------------------------
4. 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 on debt securities, if any, timing differences in recognizing taxable market discount, amortization of premium on taxable debt securities, and timing differences in recognizing certain gains and losses on investment transactions. At June 30, 2006, the cost of investments was as follows:
Large-Cap Municipal Stock and Value and Stock Bond -------------------------------------------------------- Cost of investments $429,479,156 $68,715,914 $49,080,569 --------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments at June 30, 2006, were as follows:
Large-Cap Municipal Stock and Value and Stock Bond - ---------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $99,897,466 $7,281,822 $6,923,701 Depreciation (9,270,338) (774,900) (949,277) - ---------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $90,627,128 $6,506,922 $5,974,424 - ----------------------------------------------------------------------------------------------
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at June 30, 2006, were as follows:
Large-Cap Municipal Stock and Value and Stock Bond -------------------------------------------------------------------------- Undistributed net tax-exempt income* $ -- $285,220 $ -- Undistributed net ordinary income** 13,564,588 222,708 1,077,125 Undistributed net long-term capital gains 22,299,972 -- 1,487,596 --------------------------------------------------------------------------
*Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividends declared on June 9, 2006 for Municipal and Stock and June 29, 2006 for Stock and Bond, both of which were paid on July 3, 2006. **Net ordinary income consists of net taxable income derived from dividends, interest, market discount accretion and net short-term capital gains, if any. - ---- 35 Notes to Financial Statements (continued) The tax character of distributions paid during the tax years ended June 30, 2006 and June 30, 2005, was designated for purposes of the dividends paid deduction as follows:
Large-Cap Municipal Stock and 2006 Value and Stock Bond - ----------------------------------------------------------------------------------- Distributions from net tax-exempt income $ -- $1,452,669 $ -- Distributions from net ordinary income** 14,810,640 404,873 1,972,252 Distributions from net long-term capital gains*** 20,057,927 -- 3,334,108 - -----------------------------------------------------------------------------------
Large-Cap Municipal Stock and 2005 Value and Stock Bond - ------------------------------------------------------------------------------- Distributions from net tax-exempt income $ -- $1,410,386 $ -- Distributions from net ordinary income** 5,590,068 649,299 1,433,366 Distributions from net long-term capital gains -- -- -- - -------------------------------------------------------------------------------
** Net ordinary income consists of net taxable income derived from dividends, interest, market discount accretion and net short-term capital gains, if any. *** The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax year ended June 30, 2006. At June 30, 2006, Municipal and Stock had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
Municipal and Stock --------------------------- Expiration year: 2011 $2,806,642 2012 882,767 --------------------------- Total $3,689,409 ---------------------------
- ---- 36 5. Management Fee and Other Transactions with Affiliates Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual 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 based upon the average daily net assets of each Fund as follows:
Large-Cap Municipal Stock and Value and Stock Bond Fund-Level Fund-Level Fund-Level Average Daily Net Assets Fee Rate Fee Rate Fee Rate ------------------------------------------------------------------ For the first $125 million .6500% .5500% .5500% For the next $125 million .6375 .5375 .5375 For the next $250 million .6250 .5250 .5250 For the next $500 million .6125 .5125 .5125 For the next $1 billion .6000 .5000 .5000 For net assets over $2 billion .5750 .4750 .4750 ------------------------------------------------------------------
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of June 30, 2006, the complex-level fee rate was .1887%.
Complex-Level Assets /(1)/ Complex-Level Fee Rate ----------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion /(2)/ .1400 -----------------------------------------------------------------
(1)The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2)With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. - ---- 37 Notes to Financial Statements (continued) The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into a Sub-Advisory Agreement with Institutional Capital Corporation ("ICAP"). ICAP manages the investment portfolios of Large-Cap Value, Stock and Bond, and the equity portion of Municipal and Stock's investment portfolio. ICAP is compensated for its services to the Funds from the management fee paid to the Adviser. The Adviser agreed to waive part of its management fees or reimburse certain expenses of Large-Cap Value, Municipal and Stock, and Stock and Bond through July 31, 2007, in order to limit total operating expenses (excluding 12b-1 distribution and service fees and extraordinary expenses) from exceeding 1.20%, 1.00%, and 1.00%, respectively, of the average daily net assets. The Adviser may also voluntarily reimburse additional expenses from time to time. Voluntary reimbursements may be terminated at any time at the Adviser's discretion. The Trust pays 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 Trust from the Adviser or its affiliates. The Board of Trustees 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. During the fiscal year ended June 30, 2006, Nuveen Investments, LLC (the "Distributor"), a wholly owned subsidiary of Nuveen, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to authorized dealers as follows:
Large-Cap Municipal Stock and Value and Stock Bond -------------------------------------------------------------------- Sales charges collected (unaudited) $188,026 $89,118 $62,713 Paid to authorized dealers (unaudited) 168,781 78,879 56,184 --------------------------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate authorized dealers for providing services to shareholders relating to their investments. During the fiscal year ended June 30, 2006, the Distributor compensated authorized dealers directly with commission advances at the time of purchase as follows:
Large-Cap Municipal Stock and Value and Stock Bond ------------------------------------------------------------- Commission advances (unaudited) $59,175 $13,444 $16,815 -------------------------------------------------------------
To compensate for commissions advanced to authorized dealers, all 12b-1 service fees collected on Class B Shares during the first year following a purchase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the fiscal year ended June 30, 2006, the Distributor retained such 12b-1 fees as follows:
Large-Cap Municipal Stock and Value and Stock Bond ------------------------------------------------------------- 12b-1 fees retained (unaudited) $260,261 $110,365 $75,741 -------------------------------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate authorized dealers for providing services to shareholders relating to their investments. The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended June 30, 2006, as follows:
Large-Cap Municipal Stock and Value and Stock Bond ------------------------------------------------------- CDSC retained (unaudited) $45,755 $24,902 $16,952 -------------------------------------------------------
- ---- 38 In May 2006, ICAP announced that it had entered into a merger agreement with New York Life Investment Holdings LLC ("NYLIM Holdings"), pursuant to which ICAP would become a wholly-owned subsidiary of NYLIM Holdings. The transaction was consummated on June 30, 2006, and after that date, ICAP became Institutional Capital LLC. Pursuant to the Investment Company Act of 1940, the change in ownership of ICAP caused the existing sub-advisory agreements to terminate, requiring shareholders of the Funds to approve new sub-advisory agreements with Institutional Capital LLC. A special shareholder meeting was held on August 25, 2006, at which time the shareholders of the Funds approved the new sub-advisory agreements. Prior to June 30, 2006, Nuveen held a minority interest in ICAP. As part of the transaction, Nuveen sold its holdings and no longer owns any interest in ICAP. As a result of certain trading errors that occurred during the fiscal year ended June 30, 2006, Stock and Bond was reimbursed $55,844 by the Adviser for losses realized on the disposal of investments purchased in violation of investment restrictions. 6. New Accounting Pronouncement Financial Accounting Standards Board Interpretation No. 48 On July 13, 2006, The Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and does not expect the adoption of FIN 48 will have a significant impact on the net assets or results of operations of the Funds. 7. Subsequent Events Distributions to Shareholders Municipal and Stock declared a dividend distribution from its tax-exempt net investment income which was paid on August 1, 2006, to shareholders of record on July 7, 2006, as follows:
Municipal and Stock ----------------------------- Dividend per share: Class A $.0395 Class B .0300 Class C .0300 Class R .0425 -----------------------------
- ---- 39 Financial Highlights Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ----------------------------- ------------------------ -------- LARGE-CAP VALUE Net Net Beginning Invest- Realized/ Net Ending Ending Net ment Unrealized Invest- Net Net Asset Income Gain ment Capital Asset Total Assets Year Ended June 30, Value (Loss)(a) (Loss) Total Income Gains Total Value Return(b) (000) - ----------------------------------------------------------------------------------------------------------------------------- Class A (8/96) 2006 $25.58 $ .22 $ 3.26 $ 3.48 $(.23) $(1.60) $(1.83) $27.23 13.97% $440,403 2005 23.41 .32 2.13 2.45 (.28) -- (.28) 25.58 10.51 416,407 2004 19.93 .12 3.44 3.56 (.08) -- (.08) 23.41 17.90 434,121 2003 21.35 .08 (1.43) (1.35) (.07) -- (.07) 19.93 (6.28) 445,050 2002 24.40 .08 (3.06) (2.98) (.07) -- (.07) 21.35 (12.23) 577,946 Class B (8/96) 2006 25.06 .02 3.20 3.22 (.04) (1.60) (1.64) 26.64 13.13 26,995 2005 22.95 .14 2.08 2.22 (.11) -- (.11) 25.06 9.66 45,224 2004 19.62 (.04) 3.37 3.33 -- -- -- 22.95 16.97 56,486 2003 21.08 (.06) (1.40) (1.46) -- -- -- 19.62 (6.93) 55,129 2002 24.19 (.10) (3.01) (3.11) -- -- -- 21.08 (12.86) 73,011 Class C (8/96) 2006 25.02 .02 3.20 3.22 (.04) (1.60) (1.64) 26.60 13.15 28,692 2005 22.92 .14 2.07 2.21 (.11) -- (.11) 25.02 9.63 30,691 2004 19.58 (.04) 3.38 3.34 -- -- -- 22.92 17.06 43,607 2003 21.04 (.06) (1.40) (1.46) -- -- -- 19.58 (6.94) 42,105 2002 24.16 (.10) (3.02) (3.12) -- -- -- 21.04 (12.91) 53,729 Class R (8/96) 2006 25.67 .29 3.27 3.56 (.30) (1.60) (1.90) 27.33 14.24 25,720 2005 23.49 .38 2.14 2.52 (.34) -- (.34) 25.67 10.77 22,350 2004 19.99 .18 3.45 3.63 (.13) -- (.13) 23.49 18.20 20,533 2003 21.41 .13 (1.43) (1.30) (.12) -- (.12) 19.99 (5.99) 16,828 2002 24.46 .13 (3.05) (2.92) (.13) -- (.13) 21.41 (11.98) 17,585 - -----------------------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) LARGE-CAP VALUE ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- ment ment ment Ratio of Income Ratio of Income Ratio of Income Expenses (Loss) Expenses (Loss) Expenses (Loss) to to to to to to Average Average Average Average Average Average Portfolio Net Net Net Net Net Net Turnover Year Ended June 30, Assets Assets Assets Assets Assets Assets Rate - ---------------------------------------------------------------------------------------------------- Class A (8/96) 2006 1.28% .83% 1.28% .83% 1.28% .83% 81% 2005 1.31 1.31 1.31 1.31 1.31 1.31 81 2004 1.36 .56 1.36 .56 1.36 .56 85 2003 1.45 .45 1.45 .45 1.45 .45 90 2002 1.36 .33 1.36 .33 1.36 .33 81 Class B (8/96) 2006 2.03 .08 2.03 .08 2.03 .08 81 2005 2.06 .57 2.06 .57 2.06 .57 81 2004 2.11 (.18) 2.11 (.18) 2.11 (.18) 85 2003 2.21 (.31) 2.21 (.31) 2.21 (.31) 90 2002 2.11 (.42) 2.11 (.42) 2.11 (.42) 81 Class C (8/96) 2006 2.03 .08 2.03 .08 2.03 .08 81 2005 2.06 .57 2.06 .57 2.06 .57 81 2004 2.11 (.18) 2.11 (.18) 2.11 (.18) 85 2003 2.21 (.31) 2.21 (.31) 2.21 (.31) 90 2002 2.11 (.42) 2.11 (.42) 2.11 (.42) 81 Class R (8/96) 2006 1.03 1.08 1.03 1.08 1.03 1.08 81 2005 1.06 1.56 1.06 1.56 1.06 1.56 81 2004 1.11 .83 1.11 .83 1.11 .83 85 2003 1.20 .70 1.20 .70 1.20 .70 90 2002 1.11 .58 1.11 .58 1.11 .58 81 - ----------------------------------------------------------------------------------------------------
(a)Per share Net Investment Income (Loss) is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. - ---- 40 Financial Highlights (continued) Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ---------------------------- ----------------------- ------- MUNICIPAL and STOCK Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets June 30, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) - --------------------------------------------------------------------------------------------------------------- Class A (8/96) 2006 $23.01 $.60 $ .89 $ 1.49 $(.64) $ -- $(.64) $23.86 6.52% $58,064 2005 21.96 .62 1.10 1.72 (.67) -- (.67) 23.01 7.91 54,323 2004 20.79 .54 1.14 1.68 (.51) -- (.51) 21.96 8.13 56,787 2003 21.45 .49 (.57) (.08) (.58) -- (.58) 20.79 (.25) 59,780 2002 24.15 .61 (2.54) (1.93) (.71) (.06) (.77) 21.45 (8.11) 68,197 Class B (8/96) 2006 24.26 .45 .94 1.39 (.33) -- (.33) 25.32 5.73 10,700 2005 22.99 .47 1.15 1.62 (.35) -- (.35) 24.26 7.08 18,671 2004 21.63 .40 1.19 1.59 (.23) -- (.23) 22.99 7.36 23,110 2003 22.14 .36 (.60) (.24) (.27) -- (.27) 21.63 (1.01) 26,534 2002 24.74 .45 (2.60) (2.15) (.39) (.06) (.45) 22.14 (8.78) 34,071 Class C (8/96) 2006 24.24 .45 .93 1.38 (.33) -- (.33) 25.29 5.70 7,992 2005 22.96 .48 1.15 1.63 (.35) -- (.35) 24.24 7.13 7,979 2004 21.61 .40 1.18 1.58 (.23) -- (.23) 22.96 7.32 8,229 2003 22.12 .35 (.59) (.24) (.27) -- (.27) 21.61 (1.01) 9,083 2002 24.72 .46 (2.61) (2.15) (.39) (.06) (.45) 22.12 (8.79) 10,828 Class R (8/96) 2006 22.56 .65 .87 1.52 (.74) -- (.74) 23.34 6.79 1,171 2005 21.57 .68 1.07 1.75 (.76) -- (.76) 22.56 8.17 761 2004 20.46 .59 1.12 1.71 (.60) -- (.60) 21.57 8.48 716 2003 21.17 .53 (.57) (.04) (.67) -- (.67) 20.46 (.02) 731 2002 23.90 .67 (2.52) (1.85) (.82) (.06) (.88) 21.17 (7.84) 783 - ---------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) MUNICIPAL and STOCK ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover June 30, Assets Assets Assets Assets Assets Assets Rate - --------------------------------------------------------------------------------------- Class A (8/96) 2006 1.26% 2.51% 1.24% 2.53% 1.22% 2.55% 44% 2005 1.24 2.76 1.24 2.76 1.23 2.77 47 2004 1.28 2.47 1.25 2.51 1.25 2.51 45 2003 1.35 2.34 1.25 2.44 1.24 2.45 38 2002 1.29 2.64 1.25 2.68 1.25 2.68 34 Class B (8/96) 2006 2.00 1.75 1.99 1.76 1.97 1.79 44 2005 2.00 2.01 2.00 2.01 1.99 2.02 47 2004 2.03 1.72 2.00 1.76 2.00 1.76 45 2003 2.10 1.60 2.00 1.71 1.99 1.71 38 2002 2.04 1.89 2.00 1.93 2.00 1.93 34 Class C (8/96) 2006 2.01 1.76 1.99 1.77 1.97 1.80 44 2005 1.99 2.01 1.99 2.01 1.98 2.02 47 2004 2.03 1.72 2.00 1.75 2.00 1.76 45 2003 2.10 1.59 2.00 1.69 1.99 1.70 38 2002 2.04 1.89 2.00 1.94 2.00 1.94 34 Class R (8/96) 2006 1.01 2.77 .99 2.79 .96 2.81 44 2005 .99 3.06 .99 3.06 .98 3.07 47 2004 1.03 2.72 1.00 2.75 1.00 2.76 45 2003 1.10 2.58 1.00 2.69 .99 2.69 38 2002 1.04 2.90 1.00 2.94 1.00 2.94 34 - ---------------------------------------------------------------------------------------
(a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. - ---- 41 Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ---------------------------- ------------------------ ------- STOCK and BOND Net Beginning Net Realized/ Net Ending Ending Net Invest- Unrealized Invest- Net Net Asset ment Gain ment Capital Asset Total Assets Year Ended June 30, Value Income(a) (Loss) Total Income Gains Total Value Return(b) (000) - ---------------------------------------------------------------------------------------------------------------------------- Class A (8/96) 2006 $25.95 $.50 $ 1.41 $ 1.91 $(.54) $(1.92) $(2.46) $25.40 7.60%* $30,644 2005 24.56 .56 1.47 2.03 (.64) -- (.64) 25.95 8.33 31,248 2004 22.72 .41 1.92 2.33 (.49) -- (.49) 24.56 10.29 33,312 2003 23.48 .38 (.65) (.27) (.43) (.06) (.49) 22.72 (.99) 36,751 2002 25.25 .44 (1.73) (1.29) (.47) (.01) (.48) 23.48 (5.14) 42,907 Class B (8/96) 2006 25.95 .30 1.41 1.71 (.34) (1.92) (2.26) 25.40 6.80* 8,051 2005 24.56 .37 1.47 1.84 (.45) -- (.45) 25.95 7.53 11,564 2004 22.72 .23 1.92 2.15 (.31) -- (.31) 24.56 9.48 12,459 2003 23.48 .22 (.65) (.43) (.27) (.06) (.33) 22.72 (1.73) 12,255 2002 25.25 .25 (1.72) (1.47) (.29) (.01) (.30) 23.48 (5.86) 13,067 Class C (8/96) 2006 25.97 .30 1.41 1.71 (.34) (1.92) (2.26) 25.42 6.79* 7,342 2005 24.58 .37 1.47 1.84 (.45) -- (.45) 25.97 7.53 7,947 2004 22.73 .23 1.93 2.16 (.31) -- (.31) 24.58 9.52 8,632 2003 23.49 .22 (.65) (.43) (.27) (.06) (.33) 22.73 (1.73) 7,541 2002 25.26 .25 (1.72) (1.47) (.29) (.01) (.30) 23.49 (5.86) 6,686 Class R (8/96) 2006 25.95 .56 1.41 1.97 (.60) (1.92) (2.52) 25.40 7.87* 9,213 2005 24.56 .62 1.47 2.09 (.70) -- (.70) 25.95 8.60 10,753 2004 22.72 .47 1.92 2.39 (.55) -- (.55) 24.56 10.56 9,117 2003 23.47 .44 (.64) (.20) (.49) (.06) (.55) 22.72 (.70) 7,048 2002 25.24 .50 (1.72) (1.22) (.54) (.01) (.55) 23.47 (4.90) 5,324 - ----------------------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data ------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) STOCK and BOND ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Net Net Net Net Net Net Turnover Year Ended June 30, Assets Assets Assets Assets Assets Assets Rate - -------------------------------------------------------------------------------------------------- Class A (8/96) 2006 1.31% 1.84% 1.24% 1.91% 1.24% 1.91% 56% 2005 1.30 2.16 1.25 2.21 1.25 2.21 62 2004 1.36 1.61 1.25 1.72 1.25 1.72 61 2003 1.38 1.64 1.25 1.77 1.25 1.77 68 2002 1.40 1.61 1.25 1.76 1.24 1.77 82 Class B (8/96) 2006 2.06 1.09 1.99 1.15 1.99 1.15 56 2005 2.05 1.41 2.00 1.46 2.00 1.47 62 2004 2.11 .86 2.00 .97 2.00 .97 61 2003 2.13 .89 2.00 1.02 2.00 1.02 68 2002 2.15 .86 2.00 1.01 1.99 1.02 82 Class C (8/96) 2006 2.06 1.08 1.99 1.16 1.99 1.16 56 2005 2.05 1.41 2.00 1.46 2.00 1.46 62 2004 2.11 .87 2.00 .98 2.00 .98 61 2003 2.13 .90 2.00 1.03 2.00 1.03 68 2002 2.15 .86 2.00 1.01 1.99 1.02 82 Class R (8/96) 2006 1.06 2.08 .99 2.15 .99 2.15 56 2005 1.05 2.41 1.00 2.46 1.00 2.46 62 2004 1.11 1.87 1.00 1.98 1.00 1.98 61 2003 1.13 1.90 1.00 2.03 1.00 2.03 68 2002 1.15 1.86 1.00 2.01 .99 2.02 82 - --------------------------------------------------------------------------------------------------
* During the fiscal year ended June 30, 2006, the Fund received a payment from the Adviser of $55,844, for losses realized on the disposal of investments purchased in violation of investment restrictions, which otherwise would have reduced total returns by .08%, .13%, .12% and .08% for Class A, B, C and R, respectively. (a)Per share Net Investment Income is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. See accompanying notes to financial statements. - ---- 42 Report of Independent Registered Public Accounting Firm To the Board of Trustees and Shareholders of Nuveen Investment Trust: In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Large-Cap Value Fund, Nuveen Balanced Municipal and Stock Fund and Nuveen Balanced Stock and Bond Fund (each a series of the Nuveen Investment Trust, hereafter referred to as the "Funds") at June 30, 2006, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLP Chicago, IL August 24, 2006 - ---- 43 Annual Investment Management Agreement Approval Process The Board of Trustees is responsible for overseeing the performance of the investment advisers to the Funds and determining whether to continue the advisory arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the Board of Trustees of the Funds, including the independent Trustees, unanimously approved the continuance of the Investment Management Agreement between each Fund and NAM and the Sub-Advisory Agreement between NAM and Institutional Capital Corp. ("ICAP"). NAM and ICAP are each a "Fund Adviser." The Approval Process During the course of the year, the Board received a wide variety of materials relating the services provided by the Fund Adviser and the performance of the Fund. To assist the Board in its evaluation of the advisory contract with the Fund Adviser at the May Meeting, the independent Trustees received extensive materials in advance of their meeting which outlined, among other things: . the nature, extent and quality of services provided by the Fund Adviser; . the organization and business operations of the Fund Adviser, including the responsibilities of various departments and key personnel; . the Fund's past performance as well as the Fund's performance compared to funds of similar investment objectives compiled by an independent third party and with recognized and/or customized benchmarks (as appropriate); . the profitability of the Fund Adviser and certain industry profitability analyses for unaffiliated advisers; . the expenses of the Fund Adviser in providing the various services; . the advisory fees (gross and net management fees) and total expense ratios of the Fund, including comparisons of such fees and expenses with those of comparable, unaffiliated funds based on information and data provided by Lipper (the "Peer Universe") as well as compared to a subset of funds within the Peer Universe (the "Peer Group") to the respective Fund (as applicable); . the advisory fees the Fund Adviser assesses to other types of investment products or clients; . the soft dollar practices of the Fund Adviser; and . from independent legal counsel, a legal memorandum describing, among other things, the duties of the Trustees under the Investment Company Act of 1940 (the "1940 Act") as well as the general principles of relevant state law in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; an adviser's fiduciary duty with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and factors to be considered by the board in voting on advisory agreements. At the May Meeting, NAM and ICAP made a presentation to and responded to questions from the Board. After the presentations and after reviewing the written materials, the independent Trustees met privately with their legal counsel to review the Board's duties in reviewing advisory contracts and consider the renewal of the advisory contracts. It is with this background that the Trustees considered each advisory contract (which includes the Sub-Advisory Agreement) with the Fund Adviser. The independent Trustees, in consultation with independent counsel, reviewed the factors set out in judicial decisions and SEC directives relating to the renewal of advisory contracts. As outlined in more detail below, the Trustees considered all factors they believed relevant with respect to each Fund, including the following: (a) the nature, extent and quality of the services to be provided by the Fund Adviser; (b) the investment performance of the Fund and the Fund Adviser; (c) the costs of the services to be provided and profitability of the Fund Adviser and its affiliates; (d) the extent to which economies of scale would be realized as the Fund grows; and (e) whether fee levels reflect these economies of scale for the benefit of Fund investors. A. Nature, Extent and Quality of Services In reviewing the Fund Advisers, the Trustees considered the nature, extent and quality of the respective Fund Adviser's services. The Trustees reviewed materials outlining, among other things, the Fund Adviser's organization and business; the types of services that a Fund Adviser or its affiliates provide and are expected to provide to the Nuveen Funds; the performance record of the applicable Fund (as described in further detail below) and any initiatives Nuveen has taken for its mutual fund product line. In connection with their service as Trustees, the Trustees also have a good understanding of each Fund Adviser's organization, operations and personnel. In this regard, the Trustees are familiar with and have evaluated the professional experience, qualifications and credentials of the applicable Fund Adviser's personnel. With respect to ICAP, the Trustees also received and reviewed an evaluation of the sub-adviser from NAM. Such evaluation outlined, among other things, ICAP's organizational history, client base, product mix, investment team and any changes thereto, investment process and any changes to their investment strategy, the Funds' investment objectives and performance. The Trustees noted that NAM recommended the renewal of the Sub-Advisory Agreement. Given the Trustees' experience with the Funds and each Fund Adviser, the Trustees recognized the demonstrated history of care and depth of experience of the respective personnel in managing these Funds. In this regard, the Trustees considered the continued quality of the Fund Adviser's investment process in making portfolio management decisions as well as additional refinements and improvements adopted to the portfolio management processes. - ---- 44 Annual Investment Management Agreement Approval Process (continued) In addition to advisory services, the independent Trustees considered the quality of any administrative or non-advisory services provided. With respect to ICAP, the independent Trustees noted that the Sub-Advisory Agreement was essentially an agreement for portfolio management services only and ICAP was not expected to supply other significant administrative services to the Fund. With respect to NAM, NAM provides the Funds with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Funds) and officers and other personnel as are necessary for the operations of the respective Fund. In connection with the review of the Investment Management Agreement, the Trustees considered the extent and quality of these other services which include, among other things, providing: product management (e.g., product positioning, performance benchmarking, risk management); fund administration (e.g., daily net asset value pricing and reconciliation, tax reporting, fulfilling regulatory filing requirements); oversight of third party service providers; administration of board relations (e.g., organizing board meetings and preparing related materials); compliance (e.g., monitoring compliance with investment policies and guidelines and regulatory requirements); and legal support (e.g., helping prepare and file registration statements, amendments thereto, proxy statements and responding to regulatory requests and/or inquiries). As the Funds operate in a highly regulated industry and given the importance of compliance, the Trustees considered, in particular, the additions of experienced personnel to the compliance teams and the enhancements to technology and related systems to support the compliance activities for the Funds (including a new reporting system for quarterly portfolio holdings). In addition to the above, because the Funds utilize ICAP as a sub-adviser, the Trustees also considered NAM's ability and procedures to monitor the respective sub-adviser's performance, business practices and compliance policies and procedures. In this regard, the Trustees noted the enhancements in the investment oversight process, including increased site visits and departments participating in investment oversight. Based on their review, the Trustees found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Investment Management Agreement or Sub-Advisory Agreement, as applicable, were of a high level and were satisfactory. B. The Investment Performance of the Fund and Fund Advisers The Board considered the investment performance for each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives identified by an independent third party (the "Performance Peer Group") and recognized and/or customized benchmarks (as applicable). In evaluating the performance information, in certain instances, the Trustees noted that the closest Performance Peer Group for a Fund still may not adequately reflect such Fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Fund's performance with that of the Performance Peer Group (such as the Performance Peer Groups of the Nuveen Balanced Stock and Bond Fund and Nuveen Balanced Municipal and Stock Fund). In reviewing performance, the Trustees reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group as well as recognized and/or customized benchmarks (as appropriate) for the one-, three- and five-year periods (as applicable) ending December 31, 2005. This information supplements the Fund performance information provided to the Board at each of their quarterly meetings. Based on their review, the Trustees determined that the respective Fund's absolute and relative investment performance over time had been satisfactory. C. Fees, Expenses and Profitability 1. Fees and Expenses In evaluating the management fees and expenses of a Fund, the Board reviewed, among other things, the Fund's advisory fees (net and gross management fees) and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as comparisons to the gross management fees (before waivers), net management fees (after waivers) and total expense ratios (before and after waivers) of comparable funds in the Peer Universe and the Peer Group. The Trustees reviewed data regarding the construction of Peer Groups as well as the methods of measurement for the fee and expense analysis and the performance analysis. In certain cases, due to the small number of peers in the Peer Universe, the Peer Universe and Peer Group may be the same. In reviewing comparisons, the Trustees also considered the size of the Peer Universe and/or Peer Group, the composition of the Peer Group (including, in particular, the asset size of the peers) as well as differing levels of fee waivers and/or expense reimbursements. In this regard, the Trustees considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen. Based on their review of the fee and expense information, the Board Members determined that each Fund's net total expense ratio was within an acceptable range compared to peers. 2. Comparisons with the Fees of Other Clients The Trustees further reviewed data comparing the advisory fees of NAM with fees NAM charges to other clients (such as separate managed accounts and fees charged on funds that are not offered by Nuveen Investments but are sub-advised by one of Nuveen's investment management teams). In general, the management fees charged for separate accounts are somewhat lower than the management fees assessed to the Funds. The Trustees recognized that the differences in fees are attributable to a variety of factors, including the differences in services provided, product distribution, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Trustees noted, in particular, that the range of services provided to the Funds is more extensive than that provided to managed separate accounts. As described in further detail above, such additional - ---- 45 services include, but are not limited to, providing: product management, fund administration, oversight of third party service providers, administration of board relations, and legal support. Funds further operate in a highly regulated industry requiring extensive compliance functions compared to the other investment products. In addition to the costs of the additional services, administrative costs may also be greater for the Funds as the average account size for separate accounts are notably larger than the retail accounts of the Funds. Given the differences in the product structures, particularly the extensive services provided to the Funds, the Trustees believe such facts justify the different levels of fees. In considering the fees of ICAP, the Trustees also considered the pricing schedule that ICAP charges for similar investment management services for other fund sponsors or clients. In this regard, the Trustees noted that the sub-advisory fees paid to it by NAM for its sub-advisory services were at or below the low end of its fee schedule. 3. Profitability of Fund Advisers In conjunction with its review of fees, the Trustees also considered the profitability of Nuveen Investments for advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees reviewed data comparing Nuveen's profitability with other fund sponsors prepared by three independent third party service providers as well as comparisons of the revenues, expenses and profits margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen. The Trustees further reviewed the 2005 annual report for Nuveen Investments. In considering profitability, the Trustees recognized the inherent limitations in determining profitability as well as the difficulties in comparing the profitability of other unaffiliated advisers. Profitability may be affected by numerous factors, including the methodology for allocating expenses, the advisor's business mix, the types of funds managed, the adviser's capital structure and cost of capital. Further, individual fund or product line profitability of other sponsors is generally not publicly available. Accordingly, the profitability information that is publicly available from various investment advisory or management firms may not be representative of the industry. Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In this regard, the methods of allocation used appeared reasonable. The Trustees also, to the extent available, compared Nuveen's profitability margins (including pre- and post-marketing profit margins) with the profitability of various unaffiliated management firms. The Trustees noted that Nuveen's profitability is enhanced due to its efficient internal business model. The Trustees also recognized that while a number of factors affect profitability, Nuveen's profitability may change as fee waivers and/or expense reimbursement commitments of Nuveen to various funds in the Nuveen complex expire. To keep apprised of profitability and developments that may affect profitability, the Trustees have requested profitability analysis be provided periodically during the year. With respect to ICAP, the Trustees also considered the ICAP's revenues from serving as sub-adviser to the Funds, expenses (including the basis for allocating expenses) and profitability margins (pre- and post-tax) for the last two years. The Trustees further noted that the sub-advisory fee is at the low end of ICAP's fee schedule and is established pursuant to arm's length negotiations. Based on their review, the Trustees were satisfied that the respective Fund Adviser's level of profitability was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Trustees also considered any other revenues paid to a Fund Adviser as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates are expected to receive that are directly attributable to their management of the Funds, if any. See Section E below for additional information. Based on their review of the overall fee arrangements of the applicable Fund, the Trustees determined that the advisory fees and expenses of the respective Fund were reasonable. D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale With respect to economies of scale, the Trustees recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base as a fund grows. To help ensure the shareholders share in these benefits, the Trustees have reviewed and considered the breakpoints in the advisory fee schedules that reduce advisory fees as the applicable Fund's assets grow. In addition to advisory fee breakpoints as assets in a respective Fund rise, after lengthy discussions with management, the Board also approved a complex-wide fee arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. In evaluating the complex-wide fee arrangement, the Trustees considered, among other things, the historic and expected fee savings to shareholders as assets grow, the amount of fee reductions at various asset levels, and that the arrangement would extend to all funds in the Nuveen complex. The Trustees noted that 2005 was the first full year to reflect the fee reductions from the complex wide fee arrangement. The Trustees also considered the impact, if any, the complex-wide fee arrangement may have on the level of services provided. Based on their review, the Trustees concluded that the breakpoint schedule and complex-wide fee arrangement currently was acceptable and desirable in providing benefits from economies of scale to shareholders. E. Indirect Benefits In evaluating fees, the Trustees also considered any indirect benefits or profits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund, including any sales charges and distribution fees received and retained by the Funds' principal underwriter, Nuveen Investments, Inc., an affiliate of NAM as well as any benefits derived from soft dollar arrangements. The Trustees recognized that an affiliate of NAM provides distribution and shareholder services to the Funds and - ---- 46 Annual Investment Management Agreement Approval Process (continued) their shareholders for which it may be compensated pursuant to a 12b-1 plan. The Trustees therefore considered the 12b-1 fees retained by Nuveen during the last calendar year. In addition to the above, the Trustees considered whether the Fund Adviser received any benefits from soft dollar arrangements. With respect to NAM, the Trustees noted that NAM does not currently have any soft dollar arrangements and does not pay excess brokerage commissions (or spreads on principal transactions) in order to receive research services; however, NAM may from time to time receive and have access to research generally provided to institutional clients. With respect to ICAP, the Trustees considered that ICAP does benefit from their soft dollar arrangements pursuant to which it receives research from brokers that execute the applicable Fund's portfolio transactions. At the May Meeting as well as prior meetings, the Trustees have received and reviewed materials concerning ICAP's soft dollar arrangements, including the types of research received. In this regard, ICAP has agreed to limit the type of research received with the use of soft dollars to that with intellectual content. The Trustees recognized that ICAP's ability to obtain such research and services is an integral factor in establishing its fees. Accordingly, the Trustees noted that ICAP's profitability may be lower if it was required to pay for this research with hard dollars. F. Other Considerations ICAP recently announced that it has signed a merger agreement with New York Life Investment Management. As a result of this transaction, there will be a change in control of ICAP. Under the 1940 Act, such a change in control would result in an assignment of the Sub-Advisory Agreement with NAM and the automatic termination of such agreement. Accordingly, the Board considered the approval of an Interim Sub-Advisory Agreement with each Fund which would take effect when the change of control transaction is consummated until shareholders approve a new Sub-Advisory Agreement between NAM and ICAP on behalf of the Funds (the "New Sub-Advisory Agreement"). Accordingly, the Board considered a New Sub-Advisory Agreement which would take effect if the change of control is consummated and after shareholders approve the agreement. In its review, the Trustees considered that the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement have substantially identical terms to the existing Sub-Advisory Agreement with ICAP. The Board further considered whether the change of control would have an impact on the various factors they considered in approving ICAP, such as the scope and quality of services to be provided following the change of control. In reviewing the transaction, the Trustees considered, among other things, the impact, if any, on the operations and organizational structure of ICAP; the ability of ICAP to perform its duties after the transactions; whether a Fund's fee structure or expense ratio would change; any changes to the current practices of the respective Fund; any changes to the terms of the sub-advisory agreement and that ICAP would be responsible for any costs to the Funds attributable to the transaction. Based on its review, the Board determined that the change of control would not affect the nature and quality of services provided by ICAP, the terms of the Sub-Advisory Agreement, including the fees thereunder, and would not materially affect the operations of ICAP. Accordingly, the Board determined that their analysis of the various factors regarding their approval of ICAP would continue to apply after the change of control. The Trustees did not identify any single factor discussed previously as all-important or controlling. The Trustees, including a majority of independent Trustees, concluded that the terms of the Investment Management and Sub-Advisory Agreements were fair and reasonable, that the respective Fund Adviser's fees are reasonable in light of the services provided to each Fund, that the renewal of the NAM Investment Management Agreement and the Sub-Advisory Agreement should be approved, and that the new, post-change of control Interim Sub-Advisory Agreement and New Sub-Advisory Agreement be approved and the New Sub-Advisory Agreement be recommended to shareholders. - ---- 47 Notes - -------------------------------------------------------------------------------- 48 Trustees and Officers ================================================================================ The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at nine. None of the trustees who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below. The Funds' Statement of Additional Information ("SAI") includes more information about the Trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds' website at www.nuveen.com.
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (2) During Past 5 Years Trustee - --------------------------------------------------------------------------------------------------------------------- Trustee who is an interested person of the Funds: - --------------------------------------------------------------------------------------------------------------------- Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman (since 1996) and Director of Nuveen 167 3/28/49 Board and Investments, Inc., Nuveen Investments, LLC, 333 W. Wacker Drive Trustee Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.(4); formerly, Director (1996-2006) of Institutional Capital Corporation; Chairman and Director (since 1997) of Nuveen Asset Management; Chairman and Director of Rittenhouse Asset Management, Inc. (since 1999); Chairman of Nuveen Investments Advisers Inc. (since 2002). Trustees who are not interested persons of the Funds: - --------------------------------------------------------------------------------------------------------------------- Robert P. Bremner Lead 1997 Private Investor and Management Consultant. 167 8/22/40 Independent 333 W. Wacker Drive Trustee Chicago, IL 60606 - --------------------------------------------------------------------------------------------------------------------- Lawrence H. Brown Trustee 1993 Retired (since 1989) as Senior Vice 167 7/29/34 President of The Northern Trust Company; 333 W. Wacker Drive Director (since 2002) Community Advisory Chicago, IL 60606 Board for Highland Park and Highwood, United Way of the North Shore. - --------------------------------------------------------------------------------------------------------------------- Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a 167 10/22/48 private philanthropic corporation (since 333 W. Wacker Drive 1996); Director and Vice Chairman, United Chicago, IL 60606 Fire Group, a publicly held company; Adjunct Faculty Member, University of Iowa; Director, Gazette Companies; Life Trustee of Coe College and Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. - --------------------------------------------------------------------------------------------------------------------- William C. Hunter Trustee 2004 Dean, Tippie College of Business, University 167 3/6/48 of Iowa (since June 2006); formerly, Dean 333 W. Wacker Drive and Distinguished Professor of Finance, Chicago, IL 60606 School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation; Director, SS&C Technologies, Inc. (May 2005-October 2005). - --------------------------------------------------------------------------------------------------------------------- David J. Kundert Trustee 2005 Retired (since 2004) as Chairman, JPMorgan 165 10/28/42 Fleming Asset Management, President and CEO, 333 W. Wacker Drive Banc One Investment Advisors Corporation, Chicago, IL 60606 and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens.
- ---- 49 Trustees and Officers (continued) ================================================================================
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (2) During Past 5 Years Trustee - ------------------------------------------------------------------------------------------------------------- William J. Schneider Trustee 1997 Chairman of Miller-Valentine Partners Ltd., 167 9/24/44 a real estate investment company; formerly, 333 W. Wacker Drive Senior Partner and Chief Operating Officer Chicago, IL 60606 (retired 2004) of Miller-Valentine Group; formerly, Vice President, Miller-Valentine Realty; Board Member, Chair of the Finance Committee and member of the Audit Committee of Premier Health Partners, the not-for-profit company of Miami Valley Hospital; Vice President, Dayton Philharmonic Orchestra Association; Board Member, Regional Leaders Forum, which promotes cooperation on economic development issues; Director, Dayton Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. - ------------------------------------------------------------------------------------------------------------- Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy 167 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). - ------------------------------------------------------------------------------------------------------------- Eugene S. Sunshine Trustee 2005 Senior Vice President for Business and 167 1/22/50 Finance, Northwestern University (since 333 W. Wacker Drive 1997); Director (since 2003), Chicago Board Chicago, IL 60606 Options Exchange; Director (since 2003), National Mentor Holdings, a privately-held, national provider of home and community-based services; Chairman (since 1997), Board of Directors, Rubicon, a pure captive insurance company owned by Northwestern University; Director (since 1997), Evanston Chamber of Commerce and Evanston Inventure, a business development organization. Number of Portfolios in Name, Position(s) Year First Fund Complex Birthdate Held with Elected or Principal Occupation(s) Overseen by and Address the Funds Appointed (3) During Past 5 Years Officer - ------------------------------------------------------------------------------------------------------------- Officers of the Funds: - ------------------------------------------------------------------------------------------------------------- Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant 167 9/9/56 Administrative Secretary and Associate General Counsel, 333 W. Wacker Drive Officer formerly, Vice President and Assistant Chicago, IL 60606 General Counsel, of Nuveen Investments, LLC; Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Managing Director (since 2002) and Assistant Secretary and Associate General Counsel, formerly, Vice President (since 1997), of Nuveen Asset Management; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. and Symphony Asset Management LLC (since 2003); Assistant Secretary of Tradewinds NWQ Global Investors, LLC (since 2006); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------- Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly 167 9/22/63 Vice President (since 2002); formerly, 333 W. Wacker Drive Assistant Vice President (since 2000) of Chicago, IL 60606 Nuveen Investments, LLC; Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------- Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 167 2/3/66 and Assistant Assistant Vice President (since 2000) of 333 W. Wacker Drive Secretary Nuveen Investments, LLC. Chicago, IL 60606
- ---- 50
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (3) During Past 5 Years Trustee - -------------------------------------------------------------------------------------------------------------- Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen 167 11/28/67 and Treasurer Investments, LLC and of Nuveen Investments, 333 W. Wacker Drive Inc. (since 1999); Vice President and Chicago, IL 60606 Treasurer of Nuveen Asset Management (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC. (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. and Symphony Asset Management LLC (since 2003); Treasurer, Tradewinds NWQ Global Investors, LLC (since 2006); formerly, Vice President and Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Chartered Financial Analyst. - -------------------------------------------------------------------------------------------------------------- John N. Desmond Vice President 2005 Vice President, Director of Investment 167 8/24/61 Operations, Nuveen Investments, LLC (since 333 W. Wacker Drive 2005); formerly, Director, Business Manager, Chicago, IL 60606 Deutsche Asset Management (2003-2004), Director, Business Development and Transformation, Deutsche Trust Bank Japan (2002-2003); previously, Senior Vice President, Head of Investment Operations and Systems, Scudder Investments Japan, (2000-2002), Senior Vice President, Head of Plan Administration and Participant Services, Scudder Investments (1995-2002). - -------------------------------------------------------------------------------------------------------------- Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant 167 9/24/64 and Secretary Secretary and Assistant General Counsel 333 W. Wacker Drive (since 1998) formerly, Assistant Vice Chicago, IL 60606 President (since 1998) of Nuveen Investments, LLC; Vice President (2002-2004) and Assistant Secretary (1998-2004) formerly, Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Vice President and Assistant Secretary (since 2005) of Nuveen Asset Management. - -------------------------------------------------------------------------------------------------------------- Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, 167 10/24/45 Vice President of Nuveen Investments, LLC, 333 W. Wacker Drive Managing Director (2004) formerly, Vice Chicago, IL 60606 President (1998-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Managing Director (since 2005) of Nuveen Asset Management. - -------------------------------------------------------------------------------------------------------------- William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, 167 3/2/64 Vice President of Nuveen Investments; 333 W. Wacker Drive Managing Director (1997-2004) of Nuveen Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Managing Director (since 2001) of Nuveen Asset Management ; Vice President (since 2002) of Nuveen Investments Advisers Inc.; Chartered Financial Analyst. - -------------------------------------------------------------------------------------------------------------- Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 167 5/31/54 and Controller Controller (since 1998) of Nuveen 333 W. Wacker Drive Investments, LLC; formerly, Vice President Chicago, IL 60606 and Funds Controller (1998-2004) of Nuveen Investments, Inc.; Certified Public Accountant. - -------------------------------------------------------------------------------------------------------------- David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 167 3/22/63 Investments, LLC; Certified Public 333 W. Wacker Drive Accountant. Chicago, IL 60606
- ---- 51 Trustees and Officers (continued) ================================================================================
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (3) During Past 5 Years Trustee - ------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC 167 8/27/61 (since 1999). 333 W. Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 167 7/27/51 and Assistant Assistant General Counsel of Nuveen 333 W. Wacker Drive Secretary Investments, LLC; formerly, Vice President Chicago, IL 60606 and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), and Tradewinds NWQ Global Investors, LLC (since 2006).
(1)Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and trustee of the Adviser. (2)Trustees serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the Trustee was first elected or appointed to any fund in the Nuveen Complex. (3)Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. (4)Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. - ---- 52 Fund Information ================================================================================ Fund Manager Legal Counsel Transfer Agent and Nuveen Asset Management Chapman and Cutler LLP Shareholder Services 333 West Wacker Drive Chicago, IL Boston Financial Chicago, IL 60606 Data Services Independent Registered Nuveen Investor Services Sub-Advisers Public Accounting Firm P.O. Box 8530 Institutional Capital Corporation PricewaterhouseCoopers LLP Boston, MA 02266-8530 225 West Wacker Drive Chicago, IL (800) 257-8787 Chicago, IL 60606 Custodian State Street Bank & Trust Company Boston, MA
================================================================================ Glossary of Terms Used in this Report Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered. Average Market Capitalization: The market capitalization of a company is equal to the number of the company's common shares outstanding multiplied by the current price of the company's stock. The average market capitalization of a mutual fund's portfolio gives a measure of the size of the companies in which the fund invests. Average Duration: Duration is a measure of the sensitivity of a bond or bond fund's value to changes when interest rates change. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. SEC 30-Day Yield: A standardized measure of a fund's yield that accounts for the future amortization of premiums or discounts of bonds held in the fund's portfolio. Net Asset Value (NAV): A Fund's NAV is the dollar value of one share in the fund. It is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. Distribution Information: Stock and Bond designates 50.0% of dividends declared from net investment income as dividends qualifying for the 70% dividends received deduction for corporations and 55.0% as qualified dividend income for individuals under the Jobs and Growth Tax Relief Reconciliation Act of 2003. ================================================================================ ================================================================================ Quarterly Portfolio of Investments and Proxy Voting information: Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30, 2006, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section at 450 Fifth Street NW, Washington, D.C. 20549. ================================================================================ NASD Regulation, Inc. provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of NASD members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an investor brochure that includes information describing the Public Disclosure Program. - ---- 53 Learn more about Nuveen Funds at www.nuveen.com/mf Nuveen Investments: SERVING Investors For GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. Over this time, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that can be integral parts of a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing approximately $149 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: NWQ, specializing in value-style equities; Nuveen, managing fixed-income investments; Santa Barbara, committed to growth equities; Tradewinds NWQ, specializing in global value equities; Rittenhouse, focused on "blue-chip" growth equities; and Symphony, with expertise in alternative investments as well as equity and income portfolios. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. .. Share prices .. Fund details .. Daily financial news .. Investor education [LOGO] Nuveen Investments MAN-GRINC-0606D NUVEEN INVESTMENTS MUTUAL FUNDS Annual Report For investors seeking long-term growth potential. dated June 30, 2006
[GRAPHIC] Nuveen Investments Value Funds Nuveen NWQ Multi-Cap Value Fund Nuveen NWQ Small-Cap Value Fund Nuveen NWQ Global Value Fund Nuveen Tradewinds Value Opportunities Fund [LOGO] Nuveen Investments [GRAPHIC] NOW YOU CAN RECEIVE YOUR NUVEEN INVESTMENTS FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN INVESTMENTS FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments 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 your wish. [LOGO] IT'S FAST, EASY & FREE: www.investordelivery.com if you get your Nuveen Investments Fund dividends and statements from your financial advisor or brokerage account. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) OR www.nuveen.com/accountaccess if you get your Nuveen Investments Fund dividends and statements directly from Nuveen Investments. [LOGO] ------------------------------ Must be preceded by or accompanied by a prospectus. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE [PHOTO] Timothy R. Schwertfeger Dear Shareholder, Detailed information on your Fund's performance can be found in the Portfolio Managers' Comments and Fund Spotlight sections of this report. The value funds feature portfolio management by NWQ Investment Management Company, LLC (NWQ) and Tradewinds NWQ Global Investors, LLC (Tradewinds). I urge you to take the time to read the portfolio managers' comments. With the recent volatility in the market, many have begun to wonder which way the market is headed, and whether they need to adjust their holdings of investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that investments like your Nuveen Investments Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board August 16, 2006 "No one knows what the future will bring, which is why we think a well-balanced portfolio ... is an important component in achieving your long-term financial goals." Annual Report Page 1 Portfolio Managers' Comments The Nuveen NWQ Multi-Cap Value Fund, Nuveen NWQ Small-Cap Value Fund and the domestic portion of the Nuveen NWQ Global Value Fund feature equity management by NWQ Investment Management Company, LLC (NWQ), while the Nuveen Tradewinds Value Opportunities Fund and the international portion of the Nuveen NWQ Global Value Fund feature portfolio management by Tradewinds NWQ Global Investors, LLC (Tradewinds); both of which Nuveen Investments, Inc. owns a controlling interest. In the following discussion, portfolio managers Jon Bosse, Phyllis Thomas, Gregg Tenser, Mark Morris, Paul Hechmer and Dave Iben discuss key investment strategies and the performance of the Funds. Jon Bosse is the Chief Investment Officer of NWQ and manages the Nuveen NWQ Multi-Cap Value Fund, Phyllis Thomas manages the Nuveen NWQ Small-Cap Value Fund and Gregg Tenser along with Mark Morris co-manage the domestic portion of the Nuveen NWQ Global Value Fund. Paul Hechmer manages the international portion of the Nuveen NWQ Global Value Fund, while Dave Iben, Chief Investment Officer of Tradewinds, is the manager for the Nuveen Tradewinds Value Opportunities Fund. On March 1, 2006, NWQ Investment Management Company, LLC (NWQ), sub-adviser to the Nuveen NWQ Mutual Funds, reorganized into two distinct entities: NWQ and Tradewinds NWQ Global Investors, LLC ("Tradewinds"). Tradewinds specializes in international, global all-cap and small-mid cap value equity strategies and assumed the sub-advisory responsibilities for the Nuveen NWQ Value Opportunities Fund and international portion of the Nuveen NWQ Global Value Fund, while NWQ continues to manage the domestic allocation. Effective June 30, 2006, the Nuveen NWQ Value Opportunities Fund changed its name to Nuveen Tradewinds Value Opportunities Fund. There have been no changes in the Funds' portfolio management personnel, investment objectives, policies, or day-to-day portfolio management practices. - -------------------------------------------------------------------------------- What were the general market conditions during the 12-month reporting period ended June 30, 2006? The U.S. equity markets proved rather resilient for most of the period as stocks overcame some major headwinds such as the financial impact of Hurricanes Katrina and Wilma, rising interest rates, and escalating oil and commodity prices. Stocks did experience some downside volatility in the spring, however, due to concerns the Federal Reserve would have to raise interest rates more-than-expected to combat rising inflation pressures. Concerns about a softening of the housing market, and its impact on economic growth, were also a factor in the sell-off. Overall, the U.S. stock market posted positive results for the period. Attractive valuations and strong corporate profit growth were catalysts that drove stock prices higher. Increased merger and acquisition activity, particularly private equity deals, were prominent during the year with several transactions taking place. Healthy corporate balance sheets, available financing, and modest organic growth were among the reasons for the rise in corporate activity. For the year, small-capitalization stocks outperformed mid- and large-capitalization stocks, while growth and value returns were similar, except among the large-capitalization stocks, where value significantly outperformed growth. Global stock markets generally enjoyed strong gains and outperformed U.S. stocks during the past year. This strength was widespread, with particularly good results coming from Japan, many European regions, and emerging stock markets, despite a significant pullback relatively late in the period. Equities around the world benefited from many of the same trends driving stock prices in the United States, including still-attractive valuations and strong profit growth. How did the Funds perform during the 12 months ended June 30, 2006? The table on page 3 provides performance information for the four Funds (Class A shares at net asset value) for the one-year, five-year and since inception periods ended June 30, 2006. The table also compares the Funds' performance to appropriate benchmarks. A more detailed account of each Funds' relative performance is provided later in the report. - -------------------------------------------------------------------------------- The views expressed reflect those of the portfolio managers and are subject to change at any time, based on market and other conditions. Annual Report Page 2 Class A Shares-- Average Annual Total Returns as of 6/30/06 - --------------------------------------------------------------------------------
Since 1-Year 5-Year inception/1/ -------------------------- Nuveen NWQ Multi-Cap Value Fund A Shares at NAV 17.45% 14.31% 13.26% A Shares at Offer 10.68% 12.96% 12.49% Lipper Multi-Cap Value Funds Index/2/ 9.79% 6.26% 6.98% Russell 3000 Value Index/3/ 12.32% 7.36% 7.86% S&P 500 Index/4/ 8.63% 2.49% 4.99% ------------------------------------------------------- Nuveen NWQ Small-Cap Value Fund A Shares at NAV 27.08% NA 19.73% A Shares at Offer 19.78% NA 15.27% Lipper Small-Cap Value Funds Index/5/ 14.27% NA 10.27% Russell 2000 Value Index/6/ 14.61% NA 10.17% -------------------------------------------------------
Since 1-Year 5-Year inception/1/ -------------------------- Nuveen NWQ Global Value Fund A Shares at NAV 16.81% NA 12.98% A Shares at Offer 10.11% NA 8.77% Lipper Global Multi-Cap Core Funds Index/7/ 16.84% NA 11.70% MSCI World Value Index/8/ 18.30% NA 11.81% ------------------------------------------------------------- Nuveen Tradewinds Value Opportunities Fund A Shares at NAV 29.45% NA 22.02% A Shares at Offer 21.98% NA 17.47% Lipper Mid-Cap Core Funds Index/9/ 12.07% NA 9.24% Russell Midcap Value Index/10/ 14.25% NA 13.27% -------------------------------------------------------------
Effective December 6, 2002, based on shareholder approval, the Nuveen NWQ Multi-Cap Value Fund acquired the assets and performance history of the PBHG Special Equity Fund. The Fund had no assets prior to the acquisition. In addition, on December 14, 2001, the PBHG Special Equity Fund acquired the assets of the NWQ Special Equity Portfolio. The information presented for the Nuveen NWQ Multi-Cap Value Fund prior to the acquisition date represents the expense adjusted performance of the predecessor funds. Returns quoted represent past performance, which is no guarantee of future results. Returns at NAV would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Class A shares have a 5.75% maximum sales charge. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Returns reflect a voluntary expense limitation by the Funds' investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance, visit www.nuveen.com or call (800) 257-8787. - -------------------------------------------------------------------------------- 1The since inception return for the Nuveen NWQ Multi-Cap Value Fund is calculated from 11/4/97, while the since inception returns for all the remaining Funds is from 12/9/04. 2The Lipper Multi-Cap Value Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Multi-Cap Value Funds category. The since inception data for the index represents returns for the period 11/30/97 - 6/30/06, as returns for the index are calculated on a calendar month basis. The returns assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in an index. 3The Russell 3000 Value Index is a market-capitalization weighted index of those firms in the Russell 3000 Index with lower book-to-price ratios and lower forecasted growth values. The Russell 3000 Index represents the 3000 largest U.S. companies. The index returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 4The S&P 500 Index is an unmanaged index generally considered to be representative of the U.S. stock market. The index returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 5The Lipper Small-Cap Value Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Small-Cap Value Funds category. The since inception data for the index represents returns for the period 12/31/04 - 6/30/06, as returns for the index are calculated on a calendar month basis. The returns assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in an index. Annual Report Page 3 What strategies were used to manage the Funds during the reporting period? How did these strategies influence performance? Nuveen NWQ Multi-Cap Value Fund Class A shares at net asset value for the Nuveen NWQ Multi-Cap Value Fund outperformed each of its comparative indexes for the twelve month period ended June 30, 2006. The Fund had several securities, in many sectors of the portfolio, which generated positive results during the reporting period. Our energy investments made some of the greatest contributions to performance as high oil prices and increased production volumes continued to drive record earnings and cash flows. Industry consolidation, as well as corporate restructurings, also helped these firms. Kerr McGee Inc., one of the Fund's largest holdings, rose significantly after receiving an all-cash takeover offer from Anadarko Petroleum Corp., while Nexen Inc. and Noble Energy Inc. sold some of their non-core assets at very favorable prices as part of a restructuring effort to improve operating fundamentals and increase shareholder value. Attractive valuations and increased merger and acquisition activity contributed to the rise in our steel stocks of POSCO and U.S. Steel Corp. Consolidation may lead to more favorable industry fundamentals and less cyclicality because producers might be less prone to sell at below market prices that may undercut their regional operations. Beyond the merger activity, industry fundamentals remain healthy as discounted Chinese exports are being kept to a minimum due to rising iron ore costs. Our gold mining stocks of Barrick Gold Corp. and Novagold Resources Inc. gained as gold has traditionally been viewed as a good "store of value" in uncertain times. Barrick Gold is also exhibiting healthy fundamentals, including greater than expected cost synergies from its recent acquisition of rival producer, Placer Dome, earlier this year. We were also pleased with the performance of Comcast Corp. since our initial purchase in January. The stock had performed very poorly since the bursting of the media/telecom bubble in late 1999, and more recent concerns about increased cable/telephone competition resulted in the shares being oversold, in our opinion. We believed investors had very low expectations for the company, and the stock had a very attractive risk/reward profile. Our investment in CA Inc. (formerly Computer Associates) has been a disappointment, particularly in the last two months. The good news is that the core franchise is still stable and generating substantial free cash flow. The bad news is that the corporate turnaround is taking longer than we expected. The latest disappointments include several management departures, some of which - -------------------------------------------------------------------------------- 6 The Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 7 The Lipper Global Multi-Cap Core Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Global Multi-Cap Core Funds category. The since inception data for the index represents returns for the period 12/31/04 - 6/30/06, as returns for the index are calculated on a calendar month basis. The returns assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in an index. 8 The MSCI World Value Index covers the full range of developed, emerging and All Country MSCI Equity Indices. The index uses a two dimensional framework for style segmentation in which value securities are categorized using three different attributes including forward looking variables. The objective of the index design is to divide constituents of an underlying MSCI Standard Country Index into a value index, targeting 50% of the free float adjusted market capitalization of the underlying country index. Country Value indices are then aggregated into regional Value indices. The index returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. 9 The Lipper Mid-Cap Core Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Mid-Cap Core Funds category. The since inception data for the index represents returns for the period 12/31/04 - 6/30/06, as returns for the index are calculated on a calendar month basis. The returns assume reinvestment of dividends, but do not reflect any applicable sales charges. You cannot invest directly in an index. 10 The Russell Midcap Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value index. The index returns assume reinvestment of dividends and do not reflect any applicable sales charges. You cannot invest directly in an index. Annual Report Page 4 Annual Report Page 5 were due to a poorly structured sales commission program that led to the dismissal of the Chief Financial Officer and the head of sales. We believe there are extreme pressures on CA to fix itself in a reasonable, but not long, period of time. On June 29th the company announced that it would repurchase $2 billion of its shares in order to help improve shareholder value. Also in the technology sector, our shares of Quantum Corp. finished the period lower, reflecting investors' dismay with the company's management for paying a large premium in its acquisition of Advanced Digital Information Corp, another data storage company that will make the combined entity the largest in the industry. Fears about the spread of the bird flu virus, as well as difficult dynamics in the beef industry, contributed to the decline in our shares of Tyson Foods Inc. since our initial purchase in October 2005. We initially purchased the stock with the understanding that the fundamentals of the company were poor, but bottoming. More recently, the shares have begun to recover from their lows as the fundamental trends in their two largest divisions, chicken and beef, appear to have bottomed and are beginning to gain traction, especially in chicken, where prices have rallied due to strong seasonal demand and recent production cuts. Nuveen NWQ Small-Cap Value Fund In the period from July 1, 2005 to June 30, 2006, the total return of the Nuveen NWQ Small-Cap Value Fund (Class A shares at net asset value) exceeded the returns of the Lipper Small-Cap Value Funds Index and the Russell 2000 Value Index. During the reporting period, the strongest sector returns were from Producer Durables, Energy, and Auto/Transportation. While the portfolio was actually underweighted compared to the index in Consumer Discretionary stocks, the stocks in the portfolio performed very well. The stock selection in Technology was good but the sector returns were neutralized by the underweight of this strongly performing sector. The Finance sector was a distinct underperformer. The portfolio benefited from a low weighting in this sector, but the investment in Mortgage REITs hurt the returns. Today, Mortgage REITs offer compelling value and attractive income streams, and the portfolio continues to hold these positions. While the portfolio benefited from its sector weightings, the primary source of the Fund's overall outperformance was stock selection. Our stock selection process is bottom-up and fundamentally based with a rigorous approach to valuation in the search for mis-priced small-cap equities. The largest positive contributions to performance were generated by holdings in General Cable, Aleris International, Century Aluminum and Gymboree. Based on its strong valuation, the position in Gymboree has been eliminated from the portfolio. In the last twelve month reporting period, the portfolio returns were bolstered by three takeovers in the portfolio: Excel Technology, Jorgensen and York International. The four largest negative contributions were generated by New York Mortgage Trust, Quanta Capital, Bowater and Quaker Fabric. Nuveen NWQ Global Value Fund The Nuveen NWQ Global Value Fund (Class A shares at net asset value) performed well in absolute terms but lagged relative to its benchmark, the MSCI World Value Index over the twelve-month period. The Fund, however, performed in line with its peer group, the Lipper Global Multi-Cap Core Funds Index. One significant source of underperformance relative to the MSCI index was weakness in the technology sector, which generally lagged on fears of an economic slowdown, especially in North America. In particular, the Fund was hurt by a position in U.S.-based software company CA (formerly Computer Associates). CA was a negative largely because of poor management execution, eventually leading to the departures of several of the company's senior executives. Despite this recent disappointment, we continued to hold CA. We liked the company's strong free-cash-flow yield and were optimistic that the new management may be able to reverse recent troubles. In consumer discretionary, we also lost ground with our holdings in Premiere, a German pay-television company that fell sharply after losing the live broadcast rights to German soccer league games. On the positive side, stock selection in the energy sector significantly enhanced performance. In particular, our position in Kerr-McGee did very well. This U.S.-based energy exploration and production company had been the portfolio's largest holding when, late in the reporting period, it agreed to be acquired by Anadarko Petroleum for a 40 percent premium - which resulted in significant valuation gains for the Fund. Another notable positive was our materials sector exposure. Materials stocks generally have benefited from worldwide economic growth and rising commodity prices. For most of the past 12 months, many of our individual materials holdings were very strong performers. Two particular standouts were platinum miner Lonmin (South Africa-based but listed on the U.K. stock market) and Lihir Gold (based in Papua New Guinea). Our overall management strategy remained consistent during the past year. We continued to follow our "bottom-up" - meaning stock-by-stock - security selection approach, emphasizing companies that we believed offered an attractive risk/reward balance, inexpensive valuations, and at least one potential catalyst that could unlock hidden value in their shares. One significant area of emphasis during the period was in the energy sector, where we found a number of names we believed were attractively valued. Among our U.S. investments, we tended to favor energy exploration and production companies. We noted that many of these names were being valued as if oil prices were significantly lower than current levels - and significantly lower than we believe they are likely to be in the foreseeable future. On the international side of the portfolio, we tended to favor some of the more diversified integrated oil companies, such as Total (France) and Royal Dutch Shell (headquartered in the Netherlands), which we believed offered some upside potential along with reduced downside risk. Another recent area of emphasis was the telecommunications sector, which until recently was weighed down by a variety of concerns, including greater competition, a potential market shift to low-cost Internet telephone calling, and mobile number portability. However, we found a number of attractively valued telecom companies offering favorable cash flows and dividend yields. As the period progressed, the portfolio's telecom stocks began to recover nicely, and we are hopeful that the market may finally be coming around to share our assessment of their value. Of final note, with global stock markets performing well in absolute terms throughout most of the past year, we trimmed a number of our positions that had appreciated to become larger-than-desired portions of the portfolio. In many cases, we used the sale proceeds to add to our positions in stocks that we believed offered a potentially better risk reward profile. Nuveen Tradewinds Value Opportunities Fund The Nuveen Tradewinds Value Opportunities Fund's Class A shares at net asset value turned in extremely strong results over the past twelve months ended June 30, 2006 and far outpaced both the Lipper Mid-Cap Core Funds Index and the Russell Midcap Value Index. Gains were driven primarily by the materials and processing sector and were enhanced by the Fund's heavily overweight position in this sector. Mining companies within the gold industry performed particularly well as worldwide demand for commodities continued to increase. Several of the Fund's gold mining company investments, notably Lihir Gold Limited and Bema Gold, registered healthy gains and benefited from a significant increase in the price of gold, inclusive of May-June's sharp gold price correction. Also contributing to performance was technology company Maxtor, which appreciated significantly in December after Seagate Technology announced it would acquire the firm. Annual Report Page 6 Detracting from performance were publishing company Scholastic Corp. and consumer goods company Tyson Foods. Scholastic's performance can be attributed to the market's concern about the company's ability to generate revenues in the post-Harry Potter era. Tyson faced issues with the bird flu virus, as well as difficult near-term dynamics in both the chicken and beef industries. However, we continue to believe both are attractive long term investments. For example, Tyson is a well-diversified food company and has the potential to continue benefiting from the popularity of high protein diets as well as increased foreign demand. Finding value opportunities in the finance and healthcare sectors was challenging, especially in the capitalization range in which the Fund operates, and thus the Fund remained underweight in those sectors over the past twelve months. Looking forward, we continue to find value opportunities in the materials and processing (particularly in gold mining), utilities and consumer staples sectors, as well as companies that benefit from the agricultural industry. We are also finding value opportunities in the international arena and have invested in a wide range of American Depositary Receipts ("ADRs"). Convertible bond investments have also become more attractive in our view, particularly in the technology sector. Annual Report Page 7 Nuveen NWQ Multi-Cap Value Fund Growth of an Assumed $10,000 Investment [CHART]
Lipper Nuveen NWQ Nuveen NWQ Multi-Cap Multi-Cap Value Multi-Cap Value Funds Russell 3000 S&P 500 Fund (Offer) Value Fund (NAV) Index Value Index Index --------------- ---------------- ---------- ------------ ---------- 11/30/1997 $ 9,425.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 12/31/1997 9,697.04 10,288.63 10,218.00 10,297.00 10,172.00 1/31/1998 9,606.91 10,193.01 10,194.50 10,147.69 10,284.91 2/28/1998 10,309.45 10,938.41 10,895.88 10,823.53 11,026.45 3/31/1998 11,079.98 11,755.94 11,385.11 11,464.28 11,591.01 4/30/1998 11,273.29 11,961.05 11,448.86 11,538.80 11,708.07 5/31/1998 10,723.36 11,377.57 11,194.70 11,344.95 11,506.70 6/30/1998 10,965.54 11,634.52 11,182.38 11,470.88 11,973.87 7/31/1998 10,464.78 11,103.21 10,749.62 11,205.90 11,846.94 8/31/1998 8,576.75 9,099.99 9,104.93 9,530.62 10,133.88 9/30/1998 9,004.80 9,554.16 9,481.88 10,076.72 10,783.46 10/31/1998 9,764.68 10,360.40 10,262.23 10,817.36 11,660.15 11/30/1998 10,055.61 10,669.09 10,705.56 11,304.14 12,366.76 12/31/1998 10,389.80 11,023.66 10,883.28 11,686.22 13,079.08 1/31/1999 10,839.75 11,501.07 10,921.37 11,751.67 13,625.79 2/28/1999 10,356.13 10,987.93 10,666.90 11,536.61 13,202.03 3/31/1999 10,894.33 11,558.97 10,961.31 11,751.19 13,730.11 4/30/1999 12,090.57 12,828.19 11,935.77 12,847.58 14,261.46 5/31/1999 12,264.79 13,013.04 11,873.70 12,743.51 13,924.89 6/30/1999 12,635.42 13,406.28 12,256.03 13,120.72 14,697.72 7/31/1999 12,121.71 12,861.23 11,839.33 12,741.53 14,239.16 8/31/1999 11,539.57 12,243.58 11,432.05 12,270.09 14,169.38 9/30/1999 11,095.26 11,772.16 10,939.33 11,854.14 13,781.14 10/31/1999 11,623.12 12,332.22 11,277.36 12,469.37 14,653.49 11/30/1999 11,817.07 12,538.00 11,272.85 12,382.08 14,950.95 12/31/1999 12,525.66 13,289.83 11,529.87 12,462.57 15,831.57 1/31/2000 11,650.97 12,361.77 11,032.93 12,061.27 15,036.82 2/29/2000 10,796.62 11,455.30 10,452.60 11,274.88 14,752.63 3/31/2000 12,539.41 13,304.41 11,557.44 12,550.07 16,195.43 4/30/2000 12,209.72 12,954.61 11,535.48 12,418.29 15,707.95 5/31/2000 12,464.80 13,225.25 11,695.82 12,527.57 15,385.94 6/30/2000 12,012.69 12,745.56 11,442.02 12,018.95 15,765.97 7/31/2000 12,139.20 12,879.79 11,539.28 12,186.01 15,520.02 8/31/2000 13,000.16 13,793.28 12,272.02 12,855.03 16,483.81 9/30/2000 12,879.04 13,664.76 12,101.44 12,960.44 15,613.47 10/31/2000 13,194.31 13,999.26 12,389.46 13,254.64 15,547.89 11/30/2000 12,665.02 13,437.68 11,932.29 12,776.15 14,322.72 12/31/2000 13,944.41 14,795.14 12,642.26 13,462.23 14,392.90 1/31/2001 14,292.46 15,164.41 13,120.14 13,534.92 14,903.85 2/28/2001 14,002.59 14,856.86 12,760.64 13,183.01 13,544.62 3/31/2001 13,910.77 14,759.43 12,312.75 12,734.79 12,685.89 4/30/2001 14,386.49 15,264.18 13,110.61 13,356.25 13,671.58 5/31/2001 14,713.06 15,610.67 13,400.36 13,659.44 13,763.18 6/30/2001 14,728.75 15,627.32 13,173.89 13,416.30 13,428.74 7/31/2001 14,991.68 15,906.29 13,156.76 13,369.34 13,297.13 8/31/2001 14,584.18 15,473.93 12,668.65 12,866.65 12,464.73 9/30/2001 13,343.45 14,157.51 11,370.11 11,924.82 11,457.58 10/31/2001 13,322.31 14,135.08 11,604.34 11,849.69 11,676.42 11/30/2001 14,296.32 15,168.51 12,444.49 12,550.01 12,572.00 12/31/2001 14,756.27 15,656.52 12,805.38 12,878.82 12,682.64 1/31/2002 14,958.40 15,870.98 12,638.91 12,798.97 12,497.47 2/28/2002 15,058.14 15,976.81 12,473.34 12,823.29 12,256.27 3/31/2002 15,864.28 16,832.13 13,109.48 13,456.76 12,717.11 4/30/2002 16,134.54 17,118.88 12,724.06 13,066.51 11,946.45 5/31/2002 16,142.51 17,127.33 12,711.34 13,091.34 11,858.05 6/30/2002 14,886.07 15,794.24 11,738.92 12,376.55 11,013.75 7/31/2002 13,425.05 14,244.09 10,764.59 11,174.79 10,155.78 8/31/2002 13,797.97 14,639.75 10,935.75 11,249.66 10,221.79 9/30/2002 11,632.08 12,341.73 9,750.31 10,030.19 9,110.68 10/31/2002 12,471.86 13,232.74 10,271.95 10,730.30 9,912.43 11/30/2002 14,039.66 14,896.19 11,037.21 11,418.11 10,496.27 12/31/2002 13,450.87 14,271.48 10,550.47 10,922.57 9,880.14 1/31/2003 13,770.86 14,610.99 10,333.13 10,654.97 9,621.28 2/28/2003 13,165.17 13,968.35 10,067.57 10,366.22 9,476.96 3/31/2003 13,188.03 13,992.60 10,105.83 10,390.06 9,568.88 4/30/2003 14,536.54 15,423.39 10,984.03 11,309.58 10,357.36 5/30/2003 16,605.03 17,618.07 11,902.29 12,069.58 10,903.19 6/30/2003 16,685.03 17,702.95 11,989.18 12,224.07 11,042.75 7/31/2003 17,027.87 18,066.70 12,154.63 12,436.77 11,237.11 8/31/2003 17,667.84 18,745.72 12,535.07 12,650.68 11,456.23 9/30/2003 17,382.14 18,442.59 12,390.91 12,525.44 11,334.79 10/31/2003 18,353.53 19,473.24 13,073.65 13,310.79 11,976.34 11/30/2003 18,502.09 19,630.87 13,352.12 13,517.10 12,081.73 12/31/2003 19,805.37 21,013.66 14,009.05 14,322.72 12,714.82 1/31/2004 20,522.36 21,774.39 14,304.64 14,593.42 12,948.77 2/29/2004 21,227.60 22,522.65 14,577.86 14,904.26 13,128.76 3/31/2004 21,192.34 22,485.24 14,451.03 14,799.93 12,930.51 4/30/2004 20,522.36 21,774.39 14,185.13 14,406.26 12,727.50 5/31/2004 20,816.21 22,086.16 14,251.80 14,554.64 12,901.87 6/30/2004 21,815.29 23,146.20 14,653.70 14,928.69 13,152.17 7/31/2004 21,086.66 22,373.12 14,234.60 14,677.89 12,716.83 8/31/2004 21,133.05 22,422.34 14,284.43 14,881.91 12,767.70 9/30/2004 21,967.81 23,308.02 14,572.97 15,142.35 12,905.59 10/31/2004 21,803.05 23,133.21 14,763.88 15,392.20 13,103.05 11/30/2004 23,460.32 24,891.58 15,537.50 16,220.30 13,633.72 12/31/2004 24,143.01 25,615.93 16,098.41 16,749.08 14,097.26 1/31/2005 23,561.16 24,998.58 15,747.46 16,420.80 13,753.29 2/28/2005 24,345.75 25,831.04 16,163.20 16,946.26 14,042.11 3/31/2005 23,739.54 25,187.84 15,933.68 16,703.93 13,793.57 4/30/2005 23,205.40 24,621.12 15,552.86 16,358.16 13,531.49 5/31/2005 24,298.38 25,780.77 16,058.33 16,801.47 13,961.79 6/30/2005 24,475.76 25,968.97 16,255.85 17,033.33 13,981.34 7/31/2005 25,403.39 26,953.20 16,805.30 17,568.17 14,501.44 8/31/2005 25,724.20 27,293.58 16,679.26 17,462.76 14,369.48 9/30/2005 26,115.20 27,708.44 16,819.36 17,682.79 14,485.87 10/31/2005 25,284.74 26,827.31 16,407.29 17,233.65 14,243.96 11/30/2005 26,437.72 28,050.64 16,958.57 17,812.70 14,782.38 12/31/2005 26,839.58 28,477.01 17,116.29 17,898.20 14,786.81 1/31/2006 28,251.34 29,974.90 17,681.12 18,662.46 15,178.66 2/28/2006 27,683.49 29,372.40 17,709.41 18,765.10 15,219.65 3/31/2006 28,394.95 30,127.27 17,999.85 19,078.48 15,408.37 4/30/2006 29,349.02 31,139.55 18,356.25 19,523.00 15,614.84 5/31/2006 28,321.81 30,049.66 17,882.66 19,001.74 15,165.13 6/30/2006 28,743.80 30,497.40 17,846.89 19,132.85 15,186.37
================================================================================ Nuveen NWQ Small-Cap Value Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen NWQ Nuveen NWQ Lipper Small- Small-Cap Value Small-Cap Value Cap Value Russell 2000 Fund (Offer) Fund (NAV) Funds Index Value Index --------------- --------------- -------------- ------------ 12/31/2004 $ 9425 $10000 $10000 $10000 1/31/2005 9191 9752 9717 9613 2/28/2005 9577 10162 9996 9804 3/31/2005 9322 9890 9825 9602 4/30/2005 8617 9143 9293 9107 5/31/2005 8940 9485 9769 9662 6/30/2005 9349 9919 10134 10089 7/31/2005 10268 10895 10703 10664 8/31/2005 10102 10718 10562 10418 9/30/2005 10143 10761 10604 10401 10/31/2005 9752 10347 10296 10140 11/30/2005 10349 10980 10721 10551 12/31/2005 10523 11165 10745 10470 1/31/2006 11607 12315 11545 11336 2/28/2006 11388 12083 11494 11335 3/31/2006 12022 12755 11987 11883 4/30/2006 12095 12833 12090 11915 5/31/2006 11667 12378 11603 11422 6/30/2006 11880 12605 11580 11563
The graphs do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of shares. The index comparisons show the change in value of a $10,000 investment in the Class A shares of the Nuveen Funds compared with the corresponding indexes. The Lipper Multi-Cap Value Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Multi-Cap Value Funds category. The Russell 3000 Value Index is a market-capitalization weighted index of those firms in the Russell 3000 Index with lower book-to-price ratios and lower forecasted growth values. The Russell 3000 Index represents the 3000 largest U.S. companies. The S&P 500 Index is an unmanaged index generally considered to be representative of the U.S. stock market. The Lipper Small-Cap Value Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Small-Cap Value Funds category. The Russell 2000 Value Index is a market capitalization-weighted index of those firms in the Russell 2000 Index with lower price-to-book ratios and lower forecasted growth value. The index returns assume reinvestment of dividends and do not reflect any initial or ongoing expenses. You cannot invest directly in an index. The Nuveen Funds' returns include reinvestment of all dividends and distributions, and the Funds' return at the offer price depicted in the chart reflects the initial maximum sales charge applicable to A shares (5.75%) and all ongoing Fund expenses. The performance data quoted represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance shown. Annual Report Page 8 Nuveen NWQ Global Value Fund Growth of an Assumed $10,000 Investment [CHART] Nuveen NWQ Nuveen NWQ Lipper Global Global Value Global Value Multi-Cap Core MSCI World Fund (Offer) Fund (NAV) Funds Index Value Index ------------- ---------- ---------- ----------- 12/31/2004 $ 9425 $10000 $10000 $10000 1/31/2005 9121 9677 9873 9819 2/28/2005 9439 10015 10182 10189 3/31/2005 9248 9812 9996 9990 4/30/2005 9089 9644 9817 9773 5/31/2005 9275 9841 9984 9868 6/30/2005 9412 9986 10102 9994 7/31/2005 9630 10218 10473 10278 8/31/2005 9844 10445 10523 10341 9/30/2005 10075 10690 10813 10650 10/31/2005 9862 10463 10589 10360 11/30/2005 10180 10801 10873 10714 12/31/2005 10426 11062 11133 10955 1/31/2006 10829 11490 11557 11428 2/28/2006 10682 11333 11607 11513 3/31/2006 10962 11630 11842 11733 4/30/2006 11278 11967 12138 12174 5/31/2006 11012 11684 11829 11811 6/30/2006 10994 11664 11805 11823 ================================================================================ Nuveen Tradewinds Value Opportunities Fund Growth of an Assumed $10,000 Investment [CHART]
Lipper Russell Nuveen Tradewinds Value Nuveen Tradewinds Value Mid-Cap Core Midcap Opportunities Fund (Offer) Opportunities Fund (NAV) Funds Index Value Index -------------------------- ------------------------ -------------- --------------- 12/31/2004 $9425 $10000 $10000 $10000 1/31/2005 9090 9645 9738 9767 2/28/2005 9580 10165 9980 10108 3/31/2005 9406 9980 9878 10078 4/30/2005 8967 9514 9500 9811 5/31/2005 9246 9810 9952 10217 6/30/2005 9644 10232 10187 10551 7/31/2005 10001 10611 10658 11053 8/31/2005 10170 10790 10595 10967 9/30/2005 10660 11311 10683 11116 10/31/2005 10235 10859 10407 10776 11/30/2005 10784 11442 10839 11156 12/31/2005 11213 11897 10946 11264 1/31/2006 11862 12585 11508 11753 2/28/2006 11945 12674 11492 11865 3/31/2006 12363 13117 11806 12124 4/30/2006 12841 13625 11926 12240 5/31/2006 12488 13250 11454 11984 6/30/2006 12483 13245 11417 12056
The graph does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of shares. The index comparisons show the change in value of a $10,000 investment in the Class A shares of the Nuveen Funds compared with the corresponding indexes. The Lipper Global Multi-Cap Core Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Global Multi-Cap Core Funds category. The MSCI World Value Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. The Lipper Mid-Cap Core Funds Index is a managed index that represents the average annualized returns of the 30 largest funds in the Lipper Mid-Cap Core Funds category. The Russell Midcap Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value Index. The index returns assume reinvestment of dividends and do not reflect any initial or ongoing expenses. You cannot invest directly in an index. The Nuveen Funds' returns include reinvestment of all dividends and distributions, and the Funds' return at the offer price depicted in the chart reflects the initial maximum sales charge applicable to A shares (5.75%) and all ongoing Fund expenses. The performance data quoted represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance shown. Annual Report Page 9 Fund Spotlight as of 6/30/06 Nuveen NWQ Multi-Cap Value Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares ------------------------------------------------------------------ NAV $23.81 $23.42 $23.42 $23.76 ------------------------------------------------------------------ Latest Long-Term Capital Gains Distribution $0.2059 $0.2059 $0.2059 $0.2059 ------------------------------------------------------------------ Inception Date 12/09/02 12/09/02 12/09/02 11/04/97 ------------------------------------------------------------------
Effective December 6, 2002, based on shareholder approval, the Nuveen NWQ Multi-Cap Value Fund acquired the assets and performance history of the PBHG Special Equity Fund. The Fund had no assets prior to the acquisition. In addition, on December 14, 2001, the PBHG Special Equity Fund acquired the assets of the NWQ Special Equity Portfolio. The information presented for the Nuveen NWQ Multi-Cap Value Fund prior to the acquisition date represents the expense adjusted performance of the predecessor funds. Returns quoted represent past performance which is no guarantee of future performance. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Class R total returns are actual and reflect the performance of the predecessor funds. The returns for Class A, B and C shares are actual for the period since class inception; returns prior to class inception are Class R share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains. Class A shares have a 5.75% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Returns may reflect a voluntary expense limitation by the Fund's investment adviser which may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/06 A Shares NAV Offer ------------------------------------------ 1-Year 17.45% 10.68% ------------------------------------------ 5-Year 14.31% 12.96% ------------------------------------------ Since Inception 13.26% 12.49% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 16.57% 12.57% ------------------------------------------ 5-Year 13.46% 13.34% ------------------------------------------ Since Inception 12.47% 12.47% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 16.57% ------------------------------------------ 5-Year 13.46% ------------------------------------------ Since Inception 12.41% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 17.77% ------------------------------------------ 5-Year 14.62% ------------------------------------------ Since Inception 13.55% ------------------------------------------
Top Five Common Stock Holdings/2/ Kerr-McGee Corporation 7.6% --------------------------------- CA, Inc. 6.7% --------------------------------- Noble Energy, Inc. 5.2% --------------------------------- Altria Group, Inc. 4.4% --------------------------------- Viacom Inc., Class B 4.2% ---------------------------------
Portfolio Allocation/2/ [CHART] Portfolio Allocation-As a % of total market value - ------------------------------------------------- Common Stocks 92.9% Short-Term Investments 7.1%
Portfolio Statistics Net Assets ($000) $988,583 --------------------------------------------------------- Average Market Capitalization (Common Stocks) $26 billion --------------------------------------------------------- Number of Common Stocks 49 --------------------------------------------------------- Expense Ratio/3/ 1.33% ---------------------------------------------------------
- -------------------------------------------------------------------------------- 1Paid December 5, 2005. 2As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. 3Class A shares after credit/reimbursement for the twelve months ended June 30, 2006. Annual Report Page 10 Fund Spotlight as of 6/30/06 Nuveen NWQ Multi-Cap Value Fund ================================================================================
Industries/1/ Oil, Gas & Consumable Fuels 15.8% -------------------------------------------------- Thrifts & Mortgage Finance 12.4% -------------------------------------------------- Media 9.3% -------------------------------------------------- Insurance 8.2% -------------------------------------------------- Software 6.7% -------------------------------------------------- Metals & Mining 5.8% -------------------------------------------------- Aerospace & Defense 4.8% -------------------------------------------------- Tobacco 4.4% -------------------------------------------------- Real Estate 4.0% -------------------------------------------------- Consumer Finance 2.7% -------------------------------------------------- Paper & Forest Products 2.5% -------------------------------------------------- Independent Power Producers & Energy Traders 2.0% -------------------------------------------------- Short-Term Investments 7.1% -------------------------------------------------- Other 14.3% --------------------------------------------------
1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. - -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% return before expenses) ---------------------------------------- --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares - ------------------------------------------------------------------------------------------------------------------- Beginning Account Value (1/01/06) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 - ------------------------------------------------------------------------------------------------------------------- Ending Account Value (6/30/06) $1,071.10 $1,067.50 $1,067.00 $1,072.70 $1,018.15 $1,014.48 $1,014.43 $1,019.39 - ------------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $6.88 $10.66 $10.71 $5.60 $6.71 $10.39 $10.44 $5.46 - -------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized expense ratio of 1.34%, 2.08%, 2.09% and 1.09% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Annual Report Page 11 Fund Spotlight as of 06/30/06 Nuveen NWQ Small-Cap Value Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------- NAV $26.10 $25.89 $25.91 $26.15 -------------------------------------------------- Inception Date 12/09/04 12/09/04 12/09/04 12/09/04 --------------------------------------------------
Returns quoted represent past performance which is no guarantee of future performance. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Fund returns assume reinvestment of dividends and capital gains, if any. Class A shares have a 5.75% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Returns reflect a voluntary expense limitation by the Fund's investment adviser which may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/06 A Shares NAV Offer -------------------------------------------- 1-Year 27.08% 19.78% -------------------------------------------- Since Inception 19.73% 15.27% -------------------------------------------- B Shares w/o CDSC w/CDSC -------------------------------------------- 1-Year 26.17% 22.17% -------------------------------------------- Since Inception 18.89% 16.55% -------------------------------------------- C Shares NAV -------------------------------------------- 1-Year 26.22% -------------------------------------------- Since Inception 18.92% -------------------------------------------- R Shares NAV -------------------------------------------- 1-Year 27.41% -------------------------------------------- Since Inception 20.05% -------------------------------------------- Top Five Common Stock Holdings/1/ Fossil Inc. 4.2% -------------------------------------------- Casey's General Stores, Inc. 3.7% -------------------------------------------- Sauer-Danfoss, Inc. 3.6% -------------------------------------------- General Cable Corporation 3.6% -------------------------------------------- Griffon Corporation 3.5% --------------------------------------------
Portfolio Allocation/1/ [CHART] Portfolio Allocation-As a % of total market value - ------------------------------------------------- Common Stocks 90.5% Short-Term Investments 9.5%
Portfolio Statistics Net Assets ($000) $54,657 -------------------------------------------------------- Average Market Capitalization (Common Stocks) $1 billion -------------------------------------------------------- Number of Common Stocks 46 -------------------------------------------------------- Expense Ratio/2/ 1.40% --------------------------------------------------------
- -------------------------------------------------------------------------------- 1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. 2Class A shares after credit/reimbursement for the twelve months ended June 30, 2006. Annual Report Page 12 Fund Spotlight as of 06/30/06 Nuveen NWQ Small-Cap Value Fund ================================================================================
Industries/1/ Paper & Forest Products 11.7% ---------------------------------------- Oil, Gas & Consumable Fuels 11.5% ---------------------------------------- Machinery 9.4% ---------------------------------------- Metals & Mining 8.1% ---------------------------------------- Real Estate 7.2% ---------------------------------------- Food Products 5.5% ---------------------------------------- Electronic Equipment & Instruments 4.8% ---------------------------------------- Textiles, Apparel & Luxury Goods 4.2% ---------------------------------------- Multiline Retail 3.7% ---------------------------------------- Building Products 3.5% ---------------------------------------- Electrical Equipment 3.0% ---------------------------------------- Thrifts & Mortgage Finance 2.8% ---------------------------------------- Road & Rail 2.4% ---------------------------------------- Short-Term Investments 9.5% ---------------------------------------- Other 12.7% ----------------------------------------
1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. - -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% return before expenses) --------------------------------------- - --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares --------- --------- --------- --------- - --------- --------- --------- --------- Beginning Account Value (1/01/06) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 - --------------------------------------------------------------------------------------------------------------------- Ending Account Value (6/30/06) $1,128.90 $1,125.20 $1,124.60 $1,130.60 $1,017.95 $1,014.28 $1,014.23 $1,019.09 - --------------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $7.28 $11.17 $11.22 $6.08 $6.90 $10.59 $10.64 $5.76 - ---------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized expense ratio of 1.38%, 2.12%, 2.13% and 1.15% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Annual Report Page 13 Fund Spotlight as of 06/30/06 Nuveen NWQ Global Value Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------- NAV $23.95 $23.74 $23.75 $24.00 -------------------------------------------------- Inception Date 12/09/04 12/09/04 12/09/04 12/09/04 --------------------------------------------------
Returns quoted represent past performance which is no guarantee of future performance. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Fund returns assume reinvestment of dividends and capital gains, if any. Class A shares have a 5.75% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Returns reflect a voluntary expense limitation by the Fund's investment adviser which may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/06 A Shares NAV Offer ------------------------------------------ 1-Year 16.81% 10.11% ------------------------------------------ Since Inception 12.98% 8.77% ------------------------------------------ B Shares w/o CDSC w/CDSC ------------------------------------------ 1-Year 15.94% 11.94% ------------------------------------------ Since Inception 12.16% 9.74% ------------------------------------------ C Shares NAV ------------------------------------------ 1-Year 15.99% ------------------------------------------ Since Inception 12.19% ------------------------------------------ R Shares NAV ------------------------------------------ 1-Year 17.15% ------------------------------------------ Since Inception 13.30% ------------------------------------------ Top Five Common Stock Holdings/1/ Kerr-McGee Corporation 2.9% ------------------------------------------ CA, Inc. 2.5% ------------------------------------------ Noble Energy, Inc. 2.3% ------------------------------------------ Altria Group, Inc. 2.3% ------------------------------------------ Fannie Mae 2.1% ------------------------------------------
Portfolio Allocation/1/ [CHART] Portfolio Allocation-As a % of total market value - ------------------------------------------------- Common Stocks 94.4% Short-Term Investments 5.6%
Portfolio Statistics Net Assets ($000) $11,212 --------------------------------------------------------- Average Market Capitalization (Common Stocks) $40 billion --------------------------------------------------------- Number of Common Stocks 83 --------------------------------------------------------- Expense Ratio/2/ 1.61% ---------------------------------------------------------
- -------------------------------------------------------------------------------- 1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. 2Class A shares after credit/reimbursement for the twelve months ended June 30, 2006. Annual Report Page 14 Fund Spotlight as of 06/30/06 Nuveen NWQ Global Value Fund ================================================================================
Country Allocation/1/ United States 47.8% ---------------------------- Japan 11.1% ---------------------------- United Kingdom 7.1% ---------------------------- Italy 4.8% ---------------------------- Canada 3.4% ---------------------------- South Korea 2.8% ---------------------------- Netherlands 2.4% ---------------------------- Bermuda 1.9% ---------------------------- Taiwan 1.9% ---------------------------- Australia 1.8% ---------------------------- Finland 1.5% ---------------------------- Belgium 1.5% ---------------------------- South Africa 1.4% ---------------------------- France 1.1% ---------------------------- Papua New Guinea 1.0% ---------------------------- Portugal 0.9% ---------------------------- Germany 0.9% ---------------------------- Switzerland 0.7% ---------------------------- Hong Kong 0.4% ---------------------------- Short-Term Investments 5.6% ----------------------------
Industries/1/ Diversified Telecommunication Services 10.7% -------------------------------------------- Metals & Mining 9.8% -------------------------------------------- Oil, Gas & Consumable Fuels 9.3% -------------------------------------------- Software 5.3% -------------------------------------------- Media 5.3% -------------------------------------------- Insurance 4.7% -------------------------------------------- Thrifts & Mortgage Finance 4.5% -------------------------------------------- Electric Utilities 3.5% -------------------------------------------- Diversified Financial Services 3.4% -------------------------------------------- Aerospace & Defense 3.4% -------------------------------------------- Industrial Conglomerates 2.8% -------------------------------------------- Paper & Forest Products 2.7% -------------------------------------------- Commercial Services & Supplies 2.6% -------------------------------------------- Tobacco 2.3% -------------------------------------------- Multi-Utilities 1.9% -------------------------------------------- Electronic Equipment & Instruments 1.8% -------------------------------------------- Consumer Finance 1.7% -------------------------------------------- Commercial Banks 1.5% -------------------------------------------- Health Care Providers & Services 1.5% -------------------------------------------- Road & Rail 1.5% -------------------------------------------- Short-Term Investments 5.6% -------------------------------------------- Other 14.2% --------------------------------------------
1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. - -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% return before expenses) --------------------------------------- - --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares - --------------------------------------------------------------------------------------------------------------------- Beginning Account Value (1/01/06) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 - --------------------------------------------------------------------------------------------------------------------- Ending Account Value (6/30/06) $1,054.60 $1,050.40 $1,050.40 $1,055.40 $1,016.76 $1,012.99 $1,013.04 $1,017.50 - --------------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 8.25 $ 12.10 $ 12.05 $ 7.49 $ 8.10 $ 11.88 $ 11.83 $ 7.35 - ---------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized expense ratio of 1.62%, 2.38%, 2.37% and 1.47% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Annual Report Page 15 Fund Spotlight as of 06/30/06 Nuveen Tradewinds Value Opportunities Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------- NAV $26.90 $26.66 $26.66 $26.95 -------------------------------------------------- Inception Date 12/09/04 12/09/04 12/09/04 12/09/04 --------------------------------------------------
Returns quoted represent past performance which is no guarantee of future performance. Returns without sales charges would be lower if the sales charge were included. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787. Fund returns assume reinvestment of dividends and capital gains, if any. Class A shares have a 5.75% maximum sales charge. Class B shares have a contingent deferred sales charge (CDSC), also known as a back-end sales charge, that for redemptions begins at 5% and declines periodically until after 6 years when the charge becomes 0%. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within less than one year, which is not reflected in the one-year total return. Class R shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors. Returns reflect a voluntary expense limitation by the Fund's investment adviser which may be modified or discontinued at any time without notice.
Average Annual Total Returns as of 6/30/06 A Shares NAV Offer ------------------------------------------------- 1-Year 29.45% 21.98% ------------------------------------------------- Since Inception 22.02% 17.47% ------------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------------- 1-Year 28.49% 24.49% ------------------------------------------------- Since Inception 21.11% 18.79% ------------------------------------------------- C Shares NAV ------------------------------------------------- 1-Year 28.49% ------------------------------------------------- Since Inception 21.11% ------------------------------------------------- R Shares NAV ------------------------------------------------- 1-Year 29.80% ------------------------------------------------- Since Inception 22.30% ------------------------------------------------- Top Five Common Stock Holdings/1/ AGCO Corporation 4.3% ------------------------------------------------- Apex Silver Mines Limited 4.2% ------------------------------------------------- Tyson Foods, Inc., Class A 4.1% ------------------------------------------------- AngloGold Ashanti Limited, Sponsored ADR 3.2% ------------------------------------------------- Lihir Gold Limited, Sponsored ADR 2.6% -------------------------------------------------
Portfolio Allocation/1/ [CHART] Portfolio Allocation/1/-As a % of total market value - ---------------------------------------------------- Common Stocks 70.0% Convertible Bonds 13.0% Short-Term Investments 17.0%
Portfolio Statistics Net Assets ($000) $133,924 -------------------------------------------------------- Average Market Capitalization (Common Stocks) $6 billion -------------------------------------------------------- Number of Common Stocks 65 -------------------------------------------------------- Expense Ratio/2/ 1.48% --------------------------------------------------------
- -------------------------------------------------------------------------------- 1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. 2Class A shares after credit/reimbursement for the twelve months ended June 30, 2006. Annual Report Page 16 Fund Spotlight as of 06/30/06 Nuveen Tradewinds Value Opportunities Fund ================================================================================
Country Allocation/1/ United States 51.8% ---------------------------- Canada 10.7% ---------------------------- Cayman Islands 4.3% ---------------------------- South Africa 3.2% ---------------------------- Japan 3.1% ---------------------------- Papua New Guinea 2.6% ---------------------------- South Korea 2.3% ---------------------------- France 1.4% ---------------------------- Portugal 1.3% ---------------------------- Brazil 1.2% ---------------------------- Mexico 0.5% ---------------------------- Taiwan 0.3% ---------------------------- Greece 0.3% ---------------------------- Short-Term Investments 17.0% ----------------------------
Industries/1/ Metals & Mining 18.5% ---------------------------------------- Electric Utilities 9.1% ---------------------------------------- Food Products 7.5% ---------------------------------------- Machinery 5.6% ---------------------------------------- Media 4.8% ---------------------------------------- Paper & Forest Products 4.3% ---------------------------------------- Computers & Peripherals 3.7% ---------------------------------------- Chemicals 2.8% ---------------------------------------- Aerospace & Defense 2.6% ---------------------------------------- Electronic Equipment & Instruments 2.1% ---------------------------------------- Commercial Services & Supplies 2.0% ---------------------------------------- Household Products 2.0% ---------------------------------------- Food & Staples Retailing 2.0% ---------------------------------------- Multi-Utilities 1.9% ---------------------------------------- Short-Term Investments 17.0% ---------------------------------------- Other 14.1% ----------------------------------------
1As a percentage of total holdings as of June 30, 2006. Holdings are subject to change. - -------------------------------------------------------------------------------- Expense Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example below is based on an investment of $1,000 invested at the beginning of the period and held for the period. The information under "Actual Performance," together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled "Expenses Incurred During Period" to estimate the expenses incurred on your account during this period. The information under "Hypothetical Performance," provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical Performance Actual Performance (5% return before expenses) --------------------------------------- - --------------------------------------- A Shares B Shares C Shares R Shares A Shares B Shares C Shares R Shares - -------------------------------------------------------------------------------------------------------------------- Beginning Account Value (1/1/06) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 - -------------------------------------------------------------------------------------------------------------------- Ending Account Value (6/30/06) $1,113.40 $1,109.40 $1,109.40 $1,114.60 $1,017.55 $1,013.84 $1,013.84 $1,018.74 - -------------------------------------------------------------------------------------------------------------------- Expenses Incurred During Period $ 7.65 $ 11.56 $ 11.56 $ 6.40 $ 7.30 $ 11.03 $ 11.03 $ 6.11 - --------------------------------------------------------------------------------------------------------------------
For each class of the Fund, expenses are equal to the Fund's annualized expense ratio of 1.46%, 2.21%, 2.21% and 1.22% for Classes A, B, C and R, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Annual Report Page 17 Portfolio of Investments NUVEEN NWQ MULTI-CAP VALUE FUND June 30, 2006
Shares Description Value - -------------------------------------------------------------------------------------- COMMON STOCKS - 92.4% Aerospace & Defense - 4.8% 253,200 Lockheed Martin Corporation $ 18,164,568 285,000 Northrop Grumman Corporation 18,257,100 250,000 Raytheon Company 11,142,500 - -------------------------------------------------------------------------------------- Total Aerospace & Defense 47,564,168 --------------------------------------------------------------------------- Commercial Banks - 1.4% 71,710 Bank of America Corporation 3,449,251 200,000 Wachovia Corporation 10,816,000 - -------------------------------------------------------------------------------------- Total Commercial Banks 14,265,251 --------------------------------------------------------------------------- Commercial Services & Supplies - 1.9% 450,000 Pitney Bowes Inc. 18,585,000 - -------------------------------------------------------------------------------------- Computers & Peripherals - 0.5% 2,200,000 Quantum Corporation, (1) 5,764,000 - -------------------------------------------------------------------------------------- Consumer Finance - 2.7% 950,000 Americredit Corp., (1) 26,524,000 - -------------------------------------------------------------------------------------- Containers & Packaging - 1.1% 500,000 Packaging Corp. of America 11,010,000 - -------------------------------------------------------------------------------------- Diversified Financial Services - 1.9% 450,000 JPMorgan Chase & Co. 18,900,000 - -------------------------------------------------------------------------------------- Diversified Telecommunication Services - 1.6% 35,000 Embarq Corporation, (1) 1,434,650 700,000 Sprint Nextel Corporation 13,993,000 - -------------------------------------------------------------------------------------- Total Diversified Telecommunication Services 15,427,650 --------------------------------------------------------------------------- Electronic Equipment & Instruments - 1.3% 399,152 Agilent Technologies Inc., (1) 12,597,237 - -------------------------------------------------------------------------------------- Food Products - 1.1% 750,000 Tyson Foods, Inc., Class A 11,145,000 - -------------------------------------------------------------------------------------- Health Care Providers & Services - 0.8% 216,500 Aetna Inc. 8,644,845 - -------------------------------------------------------------------------------------- Independent Power Producers & Energy Traders - 2.0% 402,900 NRG Energy Inc., (1) 19,411,722 - -------------------------------------------------------------------------------------- Insurance - 8.2% 450,000 Aon Corporation 15,669,000 450,000 Genworth Financial Inc. 15,678,000 250,000 Hartford Financial Services Group, Inc. 21,150,000 487,200 Loews Corporation 17,271,240 170,000 MGIC Investment Corporation 11,050,000 - -------------------------------------------------------------------------------------- Total Insurance 80,818,240 --------------------------------------------------------------------------- Machinery - 1.2% 275,000 Ingersoll-Rand Company - Class A 11,764,500 - -------------------------------------------------------------------------------------- Media - 9.3% 675,000 CBS Corporation, Class B 18,258,750 601,400 Comcast Corporation, Special Class A, (1) 19,713,892
- ---- 18
Shares Description Value - -------------------------------------------------------------------------------------- Media (continued) 368,758 Liberty Media Corporation, Class A, (1) $ 6,364,763 73,751 Liberty Media Corporation, Class A, (1) 6,178,121 1,150,000 Viamcom Inc., Class B, (1) 41,216,000 - -------------------------------------------------------------------------------------- Total Media 91,731,526 --------------------------------------------------------------------------- Metals & Mining - 5.8% 925,000 Barrick Gold Corporation 27,380,000 412,400 NovaGold Resources Inc., (1) 5,286,968 200,000 POSCO, ADR 13,380,000 154,800 United States Steel Corporation 10,854,576 - -------------------------------------------------------------------------------------- Total Metals & Mining 56,901,544 --------------------------------------------------------------------------- Oil, Gas & Consumable Fuels - 15.7% 1,073,622 Kerr-McGee Corporation 74,455,686 301,000 Nexen Inc. 17,018,540 1,100,000 Noble Energy, Inc. 51,546,000 838,800 Warren Resources Inc., (1) 12,045,168 - -------------------------------------------------------------------------------------- Total Oil, Gas & Consumable Fuels 155,065,394 --------------------------------------------------------------------------- Paper & Forest Products - 2.5% 628,500 Bowater Incorporated 14,298,375 848,700 Sappi Limited, Sponsored ADR 10,600,263 - -------------------------------------------------------------------------------------- Total Paper & Forest Products 24,898,638 --------------------------------------------------------------------------- Real Estate - 4.0% 430,000 American Home Mortgage Investment Corp. 15,849,800 1,446,070 Friedman, Billings, Ramsey Group, Inc., Class A 15,863,388 800,000 HomeBanc Corp. 6,352,000 228,000 MFA Mortgage Investments, Inc. 1,568,640 - -------------------------------------------------------------------------------------- Total Real Estate 39,633,828 --------------------------------------------------------------------------- Semiconductors & Equipment - 1.2% 284,900 Freescale Semiconductor, Inc., (1) 8,262,100 358,000 Mattson Technology, Inc., (1) 3,497,660 - -------------------------------------------------------------------------------------- Total Semiconductors & Equipment 11,759,760 --------------------------------------------------------------------------- Software - 6.7% 3,200,677 CA, Inc. 65,773,912 - -------------------------------------------------------------------------------------- Thrifts & Mortgage Finance - 12.3% 900,000 Countrywide Financial Corporation 34,272,000 750,000 Fannie Mae 36,075,000 800,000 IndyMac Bancorp, Inc. 36,680,000 241,400 Radian Group Inc. 14,913,692 - -------------------------------------------------------------------------------------- Total Thrifts & Mortgage Finance 121,940,692 --------------------------------------------------------------------------- Tobacco - 4.4% 589,700 Altria Group, Inc. 43,301,671 - -------------------------------------------------------------------------------------- Total Common Stocks (cost $795,215,707) 913,428,578 ---------------------------------------------------------------------------
- ---- 19 Portfolio of Investments NUVEEN NWQ MULTI-CAP VALUE FUND (continued) June 30, 2006
Principal Amount (000) Description Coupon Maturity Value - --------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 7.1% $ 69,929 Repurchase Agreement with State Street Bank, dated 6/30/06, 4.130% 7/03/06 $ 69,928,881 repurchase price $69,952,948, collateralized by: $20,540,000 U.S. Treasury Bonds, 9.875%, due 11/15/15, value $27,796,392 $32,615,000 U.S. Treasury Bonds, 9.250%, due 2/15/16, value $43,534,763 - --------------------------------------------------------------------------------------------------------- - ------------ Total Short-Term Investments (cost $69,928,881) 69,928,881 ------------------------------------------------------------------------------------------- Total Investments (cost $865,144,588) - 99.5% 983,357,459 ------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.5% 5,225,053 ------------------------------------------------------------------------------------------- Net Assets - 100% $ 988,582,512 -------------------------------------------------------------------------------------------
(1) Non-income producing. ADR American Depositary Receipt. See accompanying notes to financial statements. - ---- 20 Portfolio of Investments NUVEEN NWQ SMALL-CAP VALUE FUND June 30, 2006
Shares Description Value - ---------------------------------------------------------------------------------- COMMON STOCKS - 94.0% Auto Components - 0.9% 23,000 Commercial Vehicle Group Inc., (1) $ 475,640 - ---------------------------------------------------------------------------------- Building Products - 3.6% 75,950 Griffon Corporation, (1) 1,982,295 - ---------------------------------------------------------------------------------- Commercial Banks - 1.0% 18,665 Bancorp, Inc., (1) 466,812 - ---------------------------------------------------------------------------------- Communications Equipment - 1.1% 20,000 CommScope Inc., (1) 628,400 - ---------------------------------------------------------------------------------- Computers & Peripherals - 1.9% 402,300 Quantum Corporation, (1) 1,054,026 - ---------------------------------------------------------------------------------- Containers & Packaging - 1.1% 55,500 Smurfit-Stone Container Corporation, (1) 607,170 - ---------------------------------------------------------------------------------- Electrical Equipment - 3.1% 27,000 Lincoln Electric Holdings Inc. 1,691,550 - ---------------------------------------------------------------------------------- Electronic Equipment & Instruments - 5.0% 58,200 General Cable Corporation, (1) 2,037,000 55,400 Keithley Instruments, Inc. 705,242 - ---------------------------------------------------------------------------------- Total Electronic Equipment & Instruments 2,742,242 ------------------------------------------------------------------------- Food Products - 5.7% 138,600 Del Monte Foods Company 1,556,478 94,900 Premium Standard Farms Inc. 1,540,227 - ---------------------------------------------------------------------------------- Total Food Products 3,096,705 ------------------------------------------------------------------------- Household Durables - 1.7% 56,400 Hooker Furniture Corporation 945,828 - ---------------------------------------------------------------------------------- Household Products - 1.0% 14,400 WD 40 Company 483,408 - ---------------------------------------------------------------------------------- Insurance - 1.8% 44,500 PMA Capital Corporation, Class A, (1) 458,350 202,800 Quanta Capital Holdings Limited, (1) 525,252 - ---------------------------------------------------------------------------------- Total Insurance 983,602 ------------------------------------------------------------------------- Machinery - 9.8% 26,600 Albany International Corporation, Class A 1,127,574 34,250 Kadant Inc., (1) 787,750 17,500 Kennametal Inc. 1,089,375 13,900 RBC Bearings Inc., (1) 315,530 80,200 Sauer-Danfoss, Inc. 2,038,684 - ---------------------------------------------------------------------------------- Total Machinery 5,358,913 ------------------------------------------------------------------------- Metals & Mining - 8.4% 33,000 Aleris International Inc., (1) 1,513,050 36,200 Century Aluminum Company, (1) 1,291,978 60,300 Gibraltar Industries Inc. 1,748,700 731 Reliance Steel & Aluminum Company 60,636 - ---------------------------------------------------------------------------------- Total Metals & Mining 4,614,364 ------------------------------------------------------------------------- Multiline Retail - 3.9% 84,400 Casey's General Stores, Inc. 2,110,844 - ----------------------------------------------------------------------------------
- ---- 21 Portfolio of Investments NUVEEN NWQ SMALL-CAP VALUE FUND (continued) June 30, 2006
Shares Description Value - ---------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels - 11.9% 122,100 Acergy S.A., Sponsored ADR, (1) $ 1,868,130 50,000 Denbury Resources Inc., (1) 1,583,500 48,950 Range Resources Corporation 1,330,951 121,500 Warren Resources Inc., (1) 1,744,740 - ---------------------------------------------------------------------------------- Total Oil, Gas & Consumable Fuels 6,527,321 ------------------------------------------------------------------------- Paper & Forest Products - 12.1% 69,900 Bowater Incorporated 1,590,225 140,300 Buckeye Technologies Inc., (1) 1,071,892 49,300 Glatfelter 782,391 126,800 Sappi Limited, Sponsored ADR 1,583,732 127,400 Wausau Paper Corp. 1,586,130 - ---------------------------------------------------------------------------------- Total Paper & Forest Products 6,614,370 ------------------------------------------------------------------------- Real Estate - 7.5% 84,900 Anthracite Capital, Inc. 1,032,384 93,700 HomeBanc Corp. 743,978 116,500 New York Mortgage Trust, Inc. 466,000 35,400 RAIT Investment Trust 1,033,680 36,800 Saxon Capital Inc. 420,992 49,400 Sunset Financial Resources, Inc. 415,948 - ---------------------------------------------------------------------------------- Total Real Estate 4,112,982 ------------------------------------------------------------------------- Road & Rail - 2.5% 63,700 Marten Transport, Ltd., (1) 1,384,838 - ---------------------------------------------------------------------------------- Semiconductors & Equipment - 2.4% 137,000 Mattson Technology, Inc., (1) 1,338,490 - ---------------------------------------------------------------------------------- Specialty Retail - 0.4% 13,800 Hot Topic, Inc., (1) 158,838 - ---------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods - 4.3% 131,500 Fossil Inc., (1) 2,368,315 - ---------------------------------------------------------------------------------- Thrifts & Mortgage Finance - 2.9% 44,100 Franklin Bank Corporation, (1) 890,379 15,600 IndyMac Bancorp, Inc. 715,260 - ---------------------------------------------------------------------------------- Total Thrifts & Mortgage Finance 1,605,639 ------------------------------------------------------------------------- Total Common Stocks (cost $48,859,312) 51,352,592 -------------------------------------------------------------------------
Principal Amount (000) Description Coupon Maturity Value - ------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 9.8% $ 5,383 Repurchase Agreement with State Street Bank, dated 6/30/06, 4.130% 7/03/06 5,382,541 repurchase price $5,384,393, collateralized by $4,060,000 U.S. Treasury Bonds, 9.875%, due 11/15/15, value $5,494,321 - ------------------------------------------------------------------------------------------------------- - ------------ Total Short-Term Investments (cost $5,382,541) 5,382,541 ------------------------------------------------------------------------------------------ Total Investments (cost $54,241,853) - 103.8% 56,735,133 ------------------------------------------------------------------------------------------ Other Assets Less Liabilities - (3.8)% (2,077,884) ------------------------------------------------------------------------------------------ Net Assets - 100% $ 54,657,249 ------------------------------------------------------------------------------------------
(1) Non-income producing. ADR American Depositary Receipt. See accompanying notes to financial statements. - ---- 22 Portfolio of Investments NUVEEN NWQ GLOBAL VALUE FUND June 30, 2006
Shares Description Value - --------------------------------------------------------------------------------- COMMON STOCKS - 93.9% Aerospace & Defense - 3.4% 1,950 Lockheed Martin Corporation $ 139,893 2,150 Northrop Grumman Corporation 137,729 2,350 Raytheon Company 104,740 - --------------------------------------------------------------------------------- Total Aerospace & Defense 382,362 ------------------------------------------------------------------------- Air Freight & Logistics - 0.6% 1,850 TNT N.V., ADR 66,230 - --------------------------------------------------------------------------------- Auto Components - 1.4% 2,200 Magna International Inc., Class A 158,334 - --------------------------------------------------------------------------------- Beverages - 0.7% 5,100 Kirin Brewery Company, Limited, ADR 79,688 - --------------------------------------------------------------------------------- Chemicals - 0.0% 34 Arkema, (1) 1,327 - --------------------------------------------------------------------------------- Commercial Banks - 1.5% 2,550 Wells Fargo & Company 171,054 - --------------------------------------------------------------------------------- Commercial Services & Supplies - 2.6% 1,650 Dai Nippon Printing Co., Ltd., ADR 51,096 7,000 Dai Nippon Printing Company, Limited 108,266 3,150 Pitney Bowes Inc. 130,095 - --------------------------------------------------------------------------------- Total Commercial Services & Supplies 289,457 ------------------------------------------------------------------------- Communications Equipment - 1.2% 6,550 Motorola, Inc. 131,983 - --------------------------------------------------------------------------------- Consumer Finance - 1.7% 1,950 ACOM Company Limited 26,033 2,720 Takefuji Corporation 162,097 - --------------------------------------------------------------------------------- Total Consumer Finance 188,130 ------------------------------------------------------------------------- Diversified Financial Services - 3.4% 3,950 Citigroup Inc. 190,548 4,600 JPMorgan Chase & Co. 193,200 - --------------------------------------------------------------------------------- Total Diversified Financial Services 383,748 ------------------------------------------------------------------------- Diversified Telecommunication Services - 10.6% 3,800 AT&T Inc. 105,982 5,060 Belgacom S.A. 167,819 11,250 Chunghwa Telecom Co., Ltd., Sponsored ADR 207,788 10,270 KT Corporation, Sponsored ADR 220,292 4,680 Nippon Telegraph and Telephone Corporation, ADR 114,520 7,700 Sprint Nextel Corporation 153,923 8,420 Telecom Italia S.p.A., Sponsored ADR 216,478 - --------------------------------------------------------------------------------- Total Diversified Telecommunication Services 1,186,802 ------------------------------------------------------------------------- Electric Utilities - 3.5% 8,350 CLP Holdings Limited, ADR 48,430 2,560 EDP - Energias de Portugal, S.A., Sponsored ADR 100,659 17,400 Enel SpA 150,002
- ---- 23 Portfolio of Investments NUVEEN NWQ GLOBAL VALUE FUND (continued) June 30, 2006
Shares Description Value - --------------------------------------------------------------------------------- Electric Utilities (continued) 4,960 Korea Electric Power Corporation, Sponsored ADR $ 94,042 - --------------------------------------------------------------------------------- Total Electric Utilities 393,133 ------------------------------------------------------------------------- Electronic Equipment & Instruments - 1.8% 2,556 Agilent Technologies Inc., (1) 80,667 7,300 Samsung SDI Company Ltd., 144A 125,424 - --------------------------------------------------------------------------------- Total Electronic Equipment & Instruments 206,091 ------------------------------------------------------------------------- Food & Staples Retailing - 0.9% 4,000 J. Sainsbury PLC, Sponsored ADR 98,000 - --------------------------------------------------------------------------------- Food Products - 1.3% 1,060 Associated British Foods PLC, ADR 14,910 8,600 Tyson Foods, Inc., Class A 127,796 - --------------------------------------------------------------------------------- Total Food Products 142,706 ------------------------------------------------------------------------- Health Care Providers & Services - 1.5% 4,100 Aetna Inc. 163,713 - --------------------------------------------------------------------------------- Household Durables - 0.4% 4,000 Sekisui House, Ltd., Sponsored ADR 54,400 - --------------------------------------------------------------------------------- Household Products - 1.3% 2,275 Kimberly-Clark Corporation 140,368 - --------------------------------------------------------------------------------- Industrial Conglomerates - 2.8% 4,400 Tomkins PLC, Sponsored ADR 94,820 7,800 Tyco International Ltd. 214,500 - --------------------------------------------------------------------------------- Total Industrial Conglomerates 309,320 ------------------------------------------------------------------------- Insurance - 4.7% 1,800 Aegon N.V. 30,726 3,150 Aon Corporation 109,683 4,800 Genworth Financial Inc. 167,232 1,950 Hartford Financial Services Group, Inc. 164,970 750 MGIC Investment Corporation 48,750 - --------------------------------------------------------------------------------- Total Insurance 521,361 ------------------------------------------------------------------------- Leisure Equipment & Products - 1.2% 3,970 Fuji Photo Film Co., Ltd., ADR 133,233 - --------------------------------------------------------------------------------- Media - 5.3% 3,250 CBS Corporation, Class B 87,913 3,050 Comcast Corporation, Special Class A, (1) 99,979 2,662 Liberty Media Interactive Corporation, Class A, (1) 45,946 532 Liberty Media Capital Corporation, Class A, (1) 44,566 9,850 Premiere AG, (1) 95,498 6,000 Viacom Inc., Class B, (1) 215,040 - --------------------------------------------------------------------------------- Total Media 588,942 ------------------------------------------------------------------------- Metals & Mining - 9.7% 4,260 Alumina Limited, Sponsored ADR 85,626 5,350 Anglo American PLC, ADR 109,354 2,160 AngloGold Ashanti Limited, Sponsored ADR 103,939 6,100 Apex Silver Mines Limited, (1) 91,805
- ---- 24
Shares Description Value - --------------------------------------------------------------------------------- Metals & Mining (continued) 7,618 Barrick Gold Corporation $ 225,493 1,170 Impala Platinum Holdings Limited, Sponsored ADR 53,177 2,440 Lihir Gold Limited, Sponsored ADR, (1) 108,482 2,300 Lonmin PLC, Sponsored ADR 118,910 7,500 Newcrest Mining Limited 117,484 2,050 Xstrata PLC 77,713 - --------------------------------------------------------------------------------- Total Metals & Mining 1,091,983 ------------------------------------------------------------------------- Multi-Utilities - 1.9% 1,550 Dominion Resources, Inc. 115,925 3,860 United Utilities PLC, Sponsored ADR 91,521 - --------------------------------------------------------------------------------- Total Multi-Utilities 207,446 ------------------------------------------------------------------------- Oil, Gas & Consumable Fuels - 9.3% 2,825 Eni S.p.A., Sponsored ADR 165,969 4,646 Kerr-McGee Corporation 322,198 5,500 Noble Energy, Inc. 257,729 2,467 Royal Dutch Shell PLC, Class B, ADR 172,369 1,810 Total SA 119,111 - --------------------------------------------------------------------------------- Total Oil, Gas & Consumable Fuels 1,037,376 ------------------------------------------------------------------------- Paper & Forest Products - 2.7% 3,900 International Paper Company 125,970 12,350 Stora Enso Oyj, Sponsored ADR 172,653 - --------------------------------------------------------------------------------- Total Paper & Forest Products 298,623 ------------------------------------------------------------------------- Personal Products - 1.0% 5,950 Shiseido Company, Limited, Sponsored ADR 115,430 - --------------------------------------------------------------------------------- Pharmaceuticals - 1.0% 4,100 Daiichi Sankyo Company Limited 112,854 - --------------------------------------------------------------------------------- Road & Rail - 1.5% 1,750 Union Pacific Corporation 162,680 - --------------------------------------------------------------------------------- Semiconductors & Equipment - 1.2% 2,630 NEC Electronics Corporation, ADR, (1) 41,501 3,000 NEC Electronics Corporation, (1) 96,208 - --------------------------------------------------------------------------------- Total Semiconductors & Equipment 137,709 ------------------------------------------------------------------------- Software - 5.3% 13,500 CA, Inc. 277,424 5,600 Microsoft Corporation 130,480 28,000 Misys PLC 111,322 3,640 Nintendo Co., LTD., ADR 76,040 - --------------------------------------------------------------------------------- Total Software 595,266 ------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods - 0.5% 5,000 Wacoal Holdings Corporation 70,080 - --------------------------------------------------------------------------------- Thrifts & Mortgage Finance - 4.5% 4,300 Countrywide Financial Corporation 163,744 4,750 Fannie Mae 228,474 1,750 Radian Group Inc. 108,115 - --------------------------------------------------------------------------------- Total Thrifts & Mortgage Finance 500,333 -------------------------------------------------------------------------
- ---- 25 Portfolio of Investments NUVEEN NWQ GLOBAL VALUE FUND (continued) June 30, 2006
Shares Description Value - --------------------------------------------------------------------------------- Tobacco - 2.2% 3,425 Altria Group, Inc. $ 251,497 - --------------------------------------------------------------------------------- Wireless Telecommunication Services - 1.3% 70,750 Vodafone Group PLC 150,783 - --------------------------------------------------------------------------------- Total Common Stocks (cost $10,074,106) 10,522,442 -------------------------------------------------------------------------
Principal Amount (000) Description Coupon Maturity Value - ------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 5.5% $ 620 Repurchase Agreement with State Street Bank, dated 6/30/06, 4.130% 7/03/06 619,664 repurchase price $619,877, collateralized by $640,000 U.S. Treasury Notes, 4.875%, due 4/30/11, value $636,800 - ------------------------------------------------------------------------------------------------------- - ------------ Total Short-Term Investments (cost $619,664) 619,664 ----------------------------------------------------------------------------------------- Total Investments (cost $10,693,770) - 99.4% 11,142,106 ----------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.6% 69,870 ----------------------------------------------------------------------------------------- Net Assets - 100% $ 11,211,976 -----------------------------------------------------------------------------------------
(1) Non-income producing. 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. See accompanying notes to financial statements. - ---- 26 Portfolio of Investments NUVEEN TRADEWINDS VALUE OPPORTUNITIES FUND June 30, 2006
Shares Description Value - --------------------------------------------------------------------------------------- COMMON STOCKS - 69.5% Aerospace & Defense - 0.4% 25,800 Orbital Sciences Corporation, (1) $ 416,412 - --------------------------------------------------------------------------------------- Chemicals - 2.8% 7,400 Aceto Corporation 51,208 162,400 Mosaic Company, (1) 2,541,560 54,600 Sensient Technologies Corporation 1,141,686 - --------------------------------------------------------------------------------------- Total Chemicals 3,734,454 --------------------------------------------------------------------------- Commercial Services & Supplies - 1.7% 90,200 Allied Waste Industries, Inc., (1) 1,024,672 23,100 Toppan Printing Company Limited, ADR 1,307,414 - --------------------------------------------------------------------------------------- Total Commercial Services & Supplies 2,332,086 --------------------------------------------------------------------------- Diversified Telecommunication Services - 1.7% 23,800 Chunghwa Telecom Co., Ltd., Sponsored ADR 439,586 86,500 KT Corporation, Sponsored ADR 1,855,425 - --------------------------------------------------------------------------------------- Total Diversified Telecommunication Services 2,295,011 --------------------------------------------------------------------------- Electric Utilities - 9.1% 16,600 Alliant Energy Corporation 569,380 33,500 Ameren Corporation 1,691,750 33,100 American Electric Power 1,133,675 64,300 DTE Energy Company 2,619,582 44,300 EDP - Energias de Portugal, S.A., Sponsored ADR 1,741,876 49,600 IDACORP, INC 1,700,784 10,600 Korea Electric Power Corporation, Sponsored ADR 200,976 98,700 PNM Resources Inc. 2,463,552 - --------------------------------------------------------------------------------------- Total Electric Utilities 12,121,575 --------------------------------------------------------------------------- Electronic Equipment & Instruments - 1.6% 1,500 OSI Systems Inc., (1) 26,655 54,500 Samsung SDI Company Ltd., 144A 936,386 30,300 Tech Data Corporation, (1) 1,160,793 - --------------------------------------------------------------------------------------- Total Electronic Equipment & Instruments 2,123,834 --------------------------------------------------------------------------- Energy Equipment & Services - 1.4% 33,550 Technip SA, ADR 1,849,276 - --------------------------------------------------------------------------------------- Food & Staples Retailing - 1.9% 60,100 Kroger Co. 1,313,786 41,900 SUPERVALU Inc. 1,286,355 - --------------------------------------------------------------------------------------- Total Food & Staples Retailing 2,600,141 --------------------------------------------------------------------------- Food Products - 7.4% 1,600 Archer-Daniels-Midland Company 66,048 500 Bunge Limited 25,125 34,300 Industrias Bachoco S.A., Sponsored ADR 627,347 112,600 Sara Lee Corporation 1,803,852 69,000 Smithfield Foods, Inc., (1) 1,989,270 366,200 Tyson Foods, Inc., Class A 5,441,732 - --------------------------------------------------------------------------------------- Total Food Products 9,953,374 ---------------------------------------------------------------------------
- ---- 27 Portfolio of Investments NUVEEN TRADEWINDS VALUE OPPORTUNITIES FUND (continued) June 30, 2006
Shares Description Value - ------------------------------------------------------------------------------------ Household Durables - 0.5% 41,000 Levitt Corporation, Class A $ 656,000 5,300 Sekisui House, Ltd., Sponsored ADR 72,080 - ------------------------------------------------------------------------------------ Total Household Durables 728,080 --------------------------------------------------------------------------- Household Products - 2.0% 10,350 KAO Corporation, Sponsored ADR 2,711,652 - ------------------------------------------------------------------------------------ Independent Power Producers & Energy Traders - 1.3% 37,300 NRG Energy Inc., (1) 1,797,114 - ------------------------------------------------------------------------------------ Insurance - 0.6% 21,000 CNA Financial Corporation, (1) 692,160 - ------------------------------------------------------------------------------------ Machinery - 5.6% 215,700 AGCO Corporation, (1) 5,677,224 4,800 Alamo Group Inc. 101,040 18,700 Lindsay Manufacturing Company 507,144 62,900 Tecumseh Products Company, Class A, (1) 1,207,680 - ------------------------------------------------------------------------------------ Total Machinery 7,493,088 --------------------------------------------------------------------------- Marine - 1.1% 65,200 Genco Shipping and Trading Limited 1,131,872 83,600 Navios Maritime Holdings Inc. 378,708 - ------------------------------------------------------------------------------------ Total Marine 1,510,580 --------------------------------------------------------------------------- Media - 1.9% 100,000 Scholastic Corporation, (1) 2,597,000 - ------------------------------------------------------------------------------------ Metals & Mining - 18.3% 3,300 Alumina Limited, Sponsored ADR 66,330 89,300 AngloGold Ashanti Limited, Sponsored ADR 4,297,116 367,800 Apex Silver Mines Limited, (1) 5,535,390 2,300 Banro Corporation, (1) 22,172 36,565 Barrick Gold Corporation 1,082,324 673,500 Bema Gold Corporation, (1) 3,380,970 55,000 Crystallex International Corporation, (1) 158,400 121,200 Eldorado Gold Corporation, (1) 585,396 734,200 Entree Gold Inc., (1) 704,832 308,400 Ivanhoe Mines Limited, (1) 2,103,288 77,000 Lihir Gold Limited, Sponsored ADR, (1) 3,423,420 1,100 Newmont Mining Corporation 58,223 159,400 NovaGold Resources Inc., (1) 2,043,508 325,600 Orezone Resources Inc., (1) 475,376 284,500 Rio Narcea Gold Mines Ltd, (1) 569,000 - ------------------------------------------------------------------------------------ Total Metals & Mining 24,505,745 --------------------------------------------------------------------------- Multi-Utilities - 1.9% 119,700 Puget Energy Inc. 2,571,156 - ------------------------------------------------------------------------------------ Oil, Gas & Consumable Fuels - 0.9% 20,500 Nexen Inc. 1,159,070 - ------------------------------------------------------------------------------------
- ---- 28
Shares Description Value - ------------------------------------------------------------------------------------ Paper & Forest Products - 4.3% 52,800 Bowater Incorporated $ 1,201,200 69,300 Buckeye Technologies Inc., (1) 529,452 321,800 Domtar Inc. 1,988,724 164,200 Wausau Paper Corp. 2,044,290 - ------------------------------------------------------------------------------------ Total Paper & Forest Products 5,763,666 --------------------------------------------------------------------------- Real Estate - 0.5% 78,800 MFA Mortgage Investments, Inc. 542,144 - ------------------------------------------------------------------------------------ Road & Rail - 0.6% 9,000 Union Pacific Corporation 836,640 - ------------------------------------------------------------------------------------ Specialty Retail - 0.8% 19,600 CDW Corporation 1,071,140 - ------------------------------------------------------------------------------------ Water Utilities - 1.2% 68,100 Companhia de Saneamento Basico do Estado de Sao Paulo, 1,603,755 Sponsored ADR - ------------------------------------------------------------------------------------ Total Common Stocks (cost $89,800,888) 93,009,153 ---------------------------------------------------------------------------
Principal Amount (000) Description Coupon Maturity Ratings (2) Value - --------------------------------------------------------------------------------------------------------------------- CONVERTIBLE BONDS - 12.9% Aerospace & Defense - 2.3% $ 3,139 Edo Corporation, Convertible Note 4.000% 11/15/25 N/R $ 3,072,296 - --------------------------------------------------------------------------------------------------------------------- Airlines - 0.7% 1,034 JetBlue Airways Corporation 3.500% 7/15/33 B- 929,307 - --------------------------------------------------------------------------------------------------------------------- Commercial Services & Supplies - 0.2% 417 Allied Waste Industries, Inc. 4.250% 4/15/34 B+ 385,725 - --------------------------------------------------------------------------------------------------------------------- Computers & Peripherals - 3.7% 132 Adaptec Inc. 0.750% 12/22/23 CCC+ 114,510 5,372 Quantum Corporation 4.375% 8/01/10 CCC+ 4,861,660 - --------------------------------------------------------------------------------------------------------------------- 5,504 Total Computers & Peripherals 4,976,170 - --------------------------------------------------------------------------------------------------------------------- Electrical Equipment - 1.1% 1,991 GrafTech International Limited 1.625% 1/15/24 B2 1,438,498 - --------------------------------------------------------------------------------------------------------------------- Electronic Equipment & Instruments - 0.5% 630 SCI Systems Inc. 3.000% 3/15/07 B1 612,675 - --------------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.0% 50 Genesis Healthcare Corporation 2.500% 3/15/25 B- 53,375 - --------------------------------------------------------------------------------------------------------------------- Media - 2.9% 3,877 Echostar Communications Corporation, Convertible 5.750% 5/15/08 B 3,818,845 Subordinated Notes - --------------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.1% 193 Apex Silver Mines Limited 2.875% 3/15/24 N/R 151,988 - --------------------------------------------------------------------------------------------------------------------- Semiconductors & Equipment - 1.4% 500 Axcelis Technologies Inc. 4.250% 1/15/07 N/R 493,750 117 FEI Company, Convertible Notes 5.500% 8/15/08 B- 116,708 853 International Rectifier Corporation, Convertible 4.250% 7/15/07 B+ 842,337 Subordinated Notes 408 TriQuint Semiconductor, Inc. 4.000% 3/01/07 N/R 402,900 - --------------------------------------------------------------------------------------------------------------------- 1,878 Total Semiconductors & Equipment 1,855,695 - --------------------------------------------------------------------------------------------------------------------- $ 18,713 Total Convertible Bonds (cost $17,585,658) 17,294,574 - --------------------------------------------------------------------------------------------------------------------- - ------------
- ---- 29 Portfolio of Investments NUVEEN TRADEWINDS VALUE OPPORTUNITIES FUND (continued) June 30, 2006
Principal Amount (000) Description Coupon Maturity Value - --------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 16.9% $ 22,627 Repurchase Agreement with State Street Bank, dated 6/30/06, 4.130% 7/03/06 $ 22,626,773 repurchase price $22,634,560, collateralized by $17,295,000 U.S. Treasury Bonds, 9.250%, due 2/15/16, value $23,085,504 - --------------------------------------------------------------------------------------------------------- - ------------ Total Short-Term Investments (cost $22,626,773) 22,626,773 ------------------------------------------------------------------------------------------- Total Investments (cost $130,013,319) - 99.3% 132,930,500 ------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.7% 993,683 ------------------------------------------------------------------------------------------- Net Assets - 100% $ 133,924,183 -------------------------------------------------------------------------------------------
(1) Non-income producing. (2) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. 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. N/R Not rated. See accompanying notes to financial statements. - ---- 30 Statement of Assets and Liabilities June 30, 2006
Multi-Cap Small-Cap Global Value Value Value Value Opportunities - --------------------------------------------------------------------------------------------------------------- Assets Investments, at value (cost $865,144,588, $54,241,853, $10,693,770 and $130,013,319, respectively) $983,357,459 $56,735,133 $11,142,106 $132,930,500 Receivables: Dividends 1,268,251 79,284 21,473 82,387 From Adviser -- 29,032 5,801 -- Interest 8,022 618 71 222,488 Shares sold 6,178,791 644,009 68,265 2,395,081 Other assets 11,474 70 6,356 227 - --------------------------------------------------------------------------------------------------------------- Total assets 990,823,997 57,488,146 11,244,072 135,630,683 - --------------------------------------------------------------------------------------------------------------- Liabilities Payables: Investments purchased -- 2,690,189 25,516 1,249,011 Shares redeemed 745,333 111,313 2,840 326,768 Accrued expenses: Management fees 627,289 -- -- 68,484 12b-1 distribution and service fees 367,538 11,769 3,740 30,772 Other 501,325 17,626 -- 31,465 - --------------------------------------------------------------------------------------------------------------- Total liabilities 2,241,485 2,830,897 32,096 1,706,500 - --------------------------------------------------------------------------------------------------------------- Net assets $988,582,512 $54,657,249 $11,211,976 $133,924,183 - --------------------------------------------------------------------------------------------------------------- Class A Shares Net assets $409,788,346 $33,906,803 $ 4,128,438 $ 73,388,822 Shares outstanding 17,212,021 1,299,143 172,351 2,728,016 Net asset value per share $ 23.81 $ 26.10 $ 23.95 $ 26.90 Offering price per share (net asset value per share plus maximum sales charge of 5.75% of offering price) $ 25.26 $ 27.69 $ 25.41 $ 28.54 - --------------------------------------------------------------------------------------------------------------- Class B Shares Net assets $ 58,423,036 $ 369,844 $ 298,304 $ 1,040,864 Shares outstanding 2,494,413 14,285 12,564 39,045 Net asset value and offering price per share $ 23.42 $ 25.89 $ 23.74 $ 26.66 - --------------------------------------------------------------------------------------------------------------- Class C Shares Net assets $308,338,612 $ 7,243,787 $ 3,523,795 $ 22,101,849 Shares outstanding 13,164,204 279,619 148,347 829,013 Net asset value and offering price per share $ 23.42 $ 25.91 $ 23.75 $ 26.66 - --------------------------------------------------------------------------------------------------------------- Class R Shares Net assets $212,032,518 $13,136,815 $ 3,261,439 $ 37,392,648 Shares outstanding 8,925,272 502,423 135,867 1,387,486 Net asset value and offering price per share $ 23.76 $ 26.15 $ 24.00 $ 26.95 - --------------------------------------------------------------------------------------------------------------- Net Assets Consist of: - --------------------------------------------------------------------------------------------------------------- Capital paid-in $853,734,355 $51,870,988 $10,556,904 $129,663,199 Undistributed (Over-distribution of) net investment income 1,906,787 47,996 41,131 323,133 Accumulated net realized gain (loss) from investments and foreign currency transactions 14,728,537 244,985 165,525 1,020,673 Net unrealized appreciation (depreciation) of investments and foreign currency translation 118,212,833 2,493,280 448,416 2,917,178 - --------------------------------------------------------------------------------------------------------------- Net assets $988,582,512 $54,657,249 $11,211,976 $133,924,183 - ---------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 31 Statement of Operations Year Ended June 30, 2006
Multi-Cap Small-Cap Global Value Value Value Value Opportunities - ------------------------------------------------------------------------------------- Investment Income Dividends (net of foreign tax withheld of $85,498, $33, $9,724 and $6,823, respectively) $10,938,370 $ 243,531 $124,505 $ 352,680 Interest 2,413,724 65,337 19,003 544,644 - ------------------------------------------------------------------------------------- Total investment income 13,352,094 308,868 143,508 897,324 - ------------------------------------------------------------------------------------- Expenses Management fees 5,506,483 162,361 56,134 349,236 12b-1 service fees - Class A 701,524 22,527 3,822 48,658 12b-1 distribution and service fees - Class B 458,240 1,213 1,109 3,594 12b-1 distribution and service fees - Class C 2,140,296 21,724 14,517 68,148 Shareholders' servicing agent fees and expenses 1,095,686 43,208 6,830 31,996 Custodian's fees and expenses 146,576 32,219 27,598 36,781 Trustees' fees and expenses 32,258 773 436 2,041 Professional fees 82,896 9,258 8,411 12,388 Shareholders' reports - printing and mailing expenses 248,087 19,239 10,310 45,231 Federal and state registration fees 154,131 12,156 5,990 17,982 Other expenses 27,752 2,349 2,227 2,508 - ------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 10,593,929 327,027 137,384 618,563 Custodian fee credit (2,390) (3,256) (4,664) (3,157) Expense reimbursement -- (89,717) (36,250) (60,428) - ------------------------------------------------------------------------------------- Net expenses 10,591,539 234,054 96,470 554,978 - ------------------------------------------------------------------------------------- Net investment income 2,760,555 74,814 47,038 342,346 - ------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) Net realized gain (loss) from investments and foreign currency transactions 18,138,796 255,505 194,326 1,069,411 Net change in unrealized appreciation (depreciation) of investments and foreign currency translation 74,904,668 2,471,268 387,992 2,879,289 - ------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 93,043,464 2,726,773 582,318 3,948,700 - ------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations $95,804,019 $2,801,587 $629,356 $4,291,046 - -------------------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 32 Statement of Changes in Net Assets
Multi-Cap Value -------------------------- Year Ended Year Ended 6/30/06 6/30/05 - ------------------------------------------------------------------------------------------------------------ Operations Net investment income $ 2,760,555 $ 849,838 Net realized gain (loss) from investments and foreign currency transactions 18,138,796 5,607,702 Net change in unrealized appreciation (depreciation) of investments and foreign currency translation 74,904,668 24,118,742 - ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 95,804,019 30,576,282 - ------------------------------------------------------------------------------------------------------------ Distributions to Shareholders From net investment income: Class A (645,331) (261,827) Class B -- -- Class C -- -- Class R (563,169) (285,835) From accumulated net realized gains: Class A (3,335,819) (824,184) Class B (600,391) (167,497) Class C (2,635,886) (568,849) Class R (1,502,118) (503,141) - ------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (9,282,714) (2,611,333) - ------------------------------------------------------------------------------------------------------------ Fund Share Transactions Proceeds from sale of shares 553,212,092 282,346,414 Proceeds from shares issued to shareholders due to reinvestment of distributions 8,082,954 2,197,568 - ------------------------------------------------------------------------------------------------------------ 561,295,046 284,543,982 Cost of shares redeemed (83,168,952) (32,805,212) - ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from Fund share transactions 478,126,094 251,738,770 - ------------------------------------------------------------------------------------------------------------ Capital contribution from sub-adviser -- -- - ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 564,647,399 279,703,719 Net assets at the beginning of year 423,935,113 144,231,394 - ------------------------------------------------------------------------------------------------------------ Net assets at the end of year $988,582,512 $423,935,113 - ------------------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of year $ 1,906,787 $ 354,968 - ------------------------------------------------------------------------------------------------------------
Small-Cap Value ---------------------------- For the Period 12/09/04 (commencement Year Ended of operations) 6/30/06 through 6/30/05 - ------------------------------------------------------------------------------------------------------------ Operations Net investment income $ 74,814 $ 8,217 Net realized gain (loss) from investments and foreign currency transactions 255,505 56,606 Net change in unrealized appreciation (depreciation) of investments and foreign currency translation 2,471,268 22,013 - ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations 2,801,587 86,836 - ------------------------------------------------------------------------------------------------------------ Distributions to Shareholders From net investment income: Class A (12,619) -- Class B -- -- Class C -- -- Class R (22,416) -- From accumulated net realized gains: Class A (22,461) -- Class B (906) -- Class C (14,793) -- Class R (29,134) -- - ------------------------------------------------------------------------------------------------------------ Decrease in net assets from distributions to shareholders (102,329) -- - ------------------------------------------------------------------------------------------------------------ Fund Share Transactions Proceeds from sale of shares 51,606,751 2,000,000 Proceeds from shares issued to shareholders due to reinvestment of distributions 42,571 -- - ------------------------------------------------------------------------------------------------------------ 51,649,322 2,000,000 Cost of shares redeemed (1,787,227) -- - ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from Fund share transactions 49,862,095 2,000,000 - ------------------------------------------------------------------------------------------------------------ Capital contribution from sub-adviser 9,060 -- - ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets 52,570,413 2,086,836 Net assets at the beginning of year 2,086,836 -- - ------------------------------------------------------------------------------------------------------------ Net assets at the end of year $54,657,249 $2,086,836 - ------------------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of year $ 47,996 $ 8,217 - ------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 33 Statement of Changes in Net Assets (continued) June 30, 2006
Global Value Value Opportunities ---------------------------- ----------------------------- For the Period For the Period 12/09/04 12/09/04 (commencement (commencement Year Ended of operations) Year Ended of operations) 6/30/06 through 6/30/05 6/30/06 through 6/30/05 - ------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 47,038 $ 12,879 $ 342,346 $ 10,993 Net realized gain (loss) from investments and foreign currency transactions 194,326 815 1,069,411 60,522 Net change in unrealized appreciation (depreciation) of investments and foreign currency translation 387,992 60,425 2,879,289 37,894 - ------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 629,356 74,119 4,291,046 109,409 - ------------------------------------------------------------------------------------------------------------- Distributions to Shareholders From net investment income: Class A (3,808) -- (15,990) -- Class B -- -- -- -- Class C -- -- -- -- Class R (11,540) -- (14,230) -- From accumulated net realized gains: Class A (6,911) -- (51,530) -- Class B (692) -- (1,367) -- Class C (8,414) -- (27,359) -- Class R (17,209) -- (29,054) -- - ------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (48,574) -- (139,530) -- - ------------------------------------------------------------------------------------------------------------- Fund Share Transactions Proceeds from sale of shares 8,810,547 2,000,000 133,672,285 2,000,000 Proceeds from shares issued to shareholders due to reinvestment of distributions 18,101 -- 78,060 -- - ------------------------------------------------------------------------------------------------------------- 8,828,648 2,000,000 133,750,345 2,000,000 Cost of shares redeemed (271,573) -- (6,087,087) -- - ------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions 8,557,075 2,000,000 127,663,258 2,000,000 - ------------------------------------------------------------------------------------------------------------- Capital contribution from sub-adviser -- -- -- -- - ------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 9,137,857 2,074,119 131,814,774 2,109,409 Net assets at the beginning of year 2,074,119 -- 2,109,409 -- - ------------------------------------------------------------------------------------------------------------- Net assets at the end of year $11,211,976 $2,074,119 $133,924,183 $2,109,409 - ------------------------------------------------------------------------------------------------------------- Undistributed (Over-distribution of) net investment income at the end of year $ 41,131 $ 12,879 $ 323,133 $ 11,007 - -------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - ---- 34 Notes to Financial Statements 1. General Information and Significant Accounting Policies The Nuveen Investment Trust (the "Trust") is an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of the Nuveen NWQ Multi-Cap Value Fund ("Multi-Cap Value"), Nuveen NWQ Small-Cap Value Fund ("Small-Cap Value"), Nuveen NWQ Global Value Fund ("Global Value") and Nuveen Tradewinds Value Opportunities Fund ("Value Opportunities") (formerly Nuveen NWQ Value Opportunities Fund) (collectively, the "Funds"), among others. The Trust was organized as a Massachusetts business trust in 1996. Effective March 1, 2006, NWQ Investment Management Company, LLC ("NWQ") reorganized into two distinct entities: NWQ and Tradewinds NWQ Global Investors, LLC ("Tradewinds"). As a result of this reorganization, Tradewinds assumed all of the sub-advisory responsibilities for Value Opportunities. With respect to Global Value, NWQ continued to sub-advise the domestic portion of the Fund's portfolio while Tradewinds assumed sub-advisory responsibilities for the international portion of the Fund's portfolio. This reorganization did not impact NWQ's sub-advisory responsibilities for Multi-Cap Value and Small-Cap Value. Additionally, this transition did not cause a change in the portfolio management of the Funds or their investment objectives or policies. As previously approved by the Board of Trustees effective June 30, 2006, the Nuveen NWQ Value Opportunities Fund changed its name to Nuveen Tradewinds Value Opportunities Fund. Multi-Cap Value ordinarily invests at least 80% of its assets in equity securities of companies with large, medium and small capitalizations that are selected on an opportunistic basis in an attempt to provide long-term capital appreciation. Small-Cap Value ordinarily invests at least 80% of its assets in equity securities of companies with small capitalizations at the time of purchase that are selected on an opportunistic basis in an attempt to provide long-term capital appreciation. Global Value ordinarily invests at least 80% of its assets in equity securities of U.S. and foreign companies in an attempt to provide long-term capital appreciation. The proportion of assets invested in foreign investments will fluctuate but generally will be within 15 percentage points of the proportion of foreign companies comprising the MSCI World Index. The Fund may also invest up to 10% of its assets in equity securities of foreign companies domiciled in emerging markets. Value Opportunities ordinarily invests at least 80% of its assets in equity securities, including convertible securities, of companies with varying capitalizations generally ranging from $100 million to $15 billion in an attempt to provide long-term capital appreciation. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Investment Valuation Exchange-listed securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price. The prices of fixed-income securities are generally provided by an independent pricing service approved by the Funds' Board of Trustees and based on the mean between the bid and asked prices. When price quotes are not readily available, the pricing service or, in the absence of a pricing service for a particular investment, the Board of Trustees of the Funds, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from securities dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant by the pricing service or the Board of Trustees' designee. Short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when issued/delayed delivery purchase commitments. At June 30, 2006, there were no such outstanding purchase commitments in any of the Funds. Investment Income Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income is recorded on an accrual basis. Dividends and Distributions to Shareholders Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. - ---- 35 Notes to Financial Statements (continued) Dividends from net investment income and net realized capital gains from investment transactions, if any, are declared and distributed to shareholders annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Flexible Sales Charge Program Each Fund offers Class A, B, C and R Shares. Class A Shares are generally sold with an up-front sales charge and incur a .25% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge ("CDSC") if redeemed within 18 months of purchase. Class B Shares are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. An investor purchasing Class B Shares agrees to pay a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares convert to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. An investor purchasing Class C Shares agrees to pay a CDSC of 1% if Class C Shares are redeemed within one year of purchase. Class R Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class R Shares are available only under limited circumstances. Derivative Financial Instruments The Funds are authorized to invest in options, forward and futures contracts, which are sometimes referred to as derivative transactions. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended June 30, 2006. Repurchase Agreements In connection with transactions in repurchase agreements, it is the Funds' 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 seller defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited. Expense Allocation Expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution and service fees, are recorded to the specific class. Foreign Currency Translation To the extent that a Fund invests in securities that are denominated in a currency other than U.S. dollars, the Fund 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 Fund's investments in securities denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and dividend income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions. The gains or losses resulting from changes in foreign exchange rates are included with net realized and unrealized gain (loss) in the Statement of Operations. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. - ---- 36 2. Fund Shares Transactions in Fund shares were as follows:
Multi-Cap Value ----------------------------------------------------- Year Ended Year Ended 6/30/06 6/30/05 ------------------------ --------------------------- Shares Amount Shares Amount - ---------------------------------------------------------------------------------------------------------- Shares sold: Class A 10,389,068 $236,857,999 6,320,701 $124,190,266 Class A - automatic conversion of Class B shares 27,409 626,109 -- -- Class B 1,082,888 24,152,149 1,221,632 23,579,274 Class C 7,617,996 170,099,973 5,036,812 97,691,011 Class R 5,319,603 121,475,862 1,864,752 36,885,863 Shares issued to shareholders due to reinvestment of distributions: Class A 156,347 3,475,266 45,993 925,000 Class B 23,958 524,687 7,170 142,402 Class C 97,137 2,127,192 20,328 403,716 Class R 88,139 1,955,809 36,137 726,450 - ---------------------------------------------------------------------------------------------------------- 24,802,545 561,295,046 14,553,525 284,543,982 - ---------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (2,077,618) (47,011,348) (789,578) (15,619,738) Class B (215,562) (4,881,089) (103,244) (2,027,935) Class B - automatic conversion to Class A shares (27,791) (626,109) -- -- Class C (871,982) (19,528,196) (366,654) (7,241,916) Class R (492,772) (11,122,210) (404,527) (7,915,623) - ---------------------------------------------------------------------------------------------------------- (3,685,725) (83,168,952) (1,664,003) (32,805,212) - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) 21,116,820 $478,126,094 12,889,522 $251,738,770 - ---------------------------------------------------------------------------------------------------------- Small-Cap Value ----------------------------------------------------- For the Period 12/09/04 Year Ended (commencement of operations) 6/30/06 through 6/30/05 ------------------------ --------------------------- Shares Amount Shares Amount - ---------------------------------------------------------------------------------------------------------- Shares sold: Class A 1,333,486 $ 33,398,780 125 $ 2,500 Class B 14,445 360,053 125 2,500 Class C 285,367 7,085,258 125 2,500 Class R 431,074 10,762,660 99,625 1,992,500 Shares issued to shareholders due to reinvestment of distributions: Class A 1,129 26,264 -- -- Class B 14 320 -- -- Class C 187 4,321 -- -- Class R 501 11,666 -- -- - ---------------------------------------------------------------------------------------------------------- 2,066,203 51,649,322 100,000 2,000,000 - ---------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (35,597) (898,476) -- -- Class B (299) (7,425) -- -- Class C (6,060) (144,094) -- -- Class R (28,777) (737,232) -- -- - ---------------------------------------------------------------------------------------------------------- (70,733) (1,787,227) -- -- - ---------------------------------------------------------------------------------------------------------- Net increase (decrease) 1,995,470 $ 49,862,095 100,000 $ 2,000,000 - ----------------------------------------------------------------------------------------------------------
- ---- 37 Notes to Financial Statements (continued)
Global Value ----------------------------------------------------- For the Period 12/09/04 Year Ended (commencement of operations) 6/30/06 through 6/30/05 ----------------------- ---------------------------- Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------- Shares sold: Class A 179,477 $ 4,178,364 125 $ 2,500 Class B 12,409 286,356 125 2,500 Class C 151,463 3,483,915 125 2,500 Class R 36,647 861,912 99,625 1,992,500 Shares issued to shareholders due to reinvestment of distributions: Class A 444 10,003 -- -- Class B 30 671 -- -- Class C 291 6,477 -- -- Class R 42 950 -- -- - ------------------------------------------------------------------------------------------------------- 380,803 8,828,648 100,000 2,000,000 - ------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (7,695) (178,947) -- -- Class B -- -- -- -- Class C (3,532) (82,394) -- -- Class R (447) (10,232) -- -- - ------------------------------------------------------------------------------------------------------- (11,674) (271,573) -- -- - ------------------------------------------------------------------------------------------------------- Net increase (decrease) 369,129 $ 8,557,075 100,000 $2,000,000 - ------------------------------------------------------------------------------------------------------- Value Opportunities ----------------------------------------------------- For the Period 12/09/04 Year Ended (commencement of operations) 6/30/06 through 6/30/05 ----------------------- ---------------------------- Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------- Shares sold: Class A 2,800,243 $ 73,168,991 125 $ 2,500 Class B 42,433 1,077,815 125 2,500 Class C 844,980 21,566,757 125 2,500 Class R 1,423,561 37,858,722 99,625 1,992,500 Shares issued to shareholders due to reinvestment of distributions: Class A 2,387 56,431 -- -- Class B 18 420 -- -- Class C 685 15,957 -- -- Class R 221 5,252 -- -- - ------------------------------------------------------------------------------------------------------- 5,114,528 133,750,345 100,000 2,000,000 - ------------------------------------------------------------------------------------------------------- Shares redeemed: Class A (74,739) (1,990,582) -- -- Class B (3,531) (90,853) -- -- Class C (16,777) (444,505) -- -- Class R (135,921) (3,561,147) -- -- - ------------------------------------------------------------------------------------------------------- (230,968) (6,087,087) -- -- - ------------------------------------------------------------------------------------------------------- Net increase (decrease) 4,883,560 $127,663,258 100,000 $2,000,000 - -------------------------------------------------------------------------------------------------------
- ---- 38 3. Investment Transactions Purchases and sales (including maturities but excluding short-term investments) for the fiscal year ended June 30, 2006, were as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities ---------------------------------------------------------------------- Purchases $496,952,337 $50,800,920 $9,110,162 $113,311,430 Sales and maturities 58,389,489 4,146,720 1,087,175 8,869,784 ----------------------------------------------------------------------
4. 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 timing differences in recognizing certain gains and losses on investment transactions. At June 30, 2006, the cost of investments was as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities ---------------------------------------------------------------------- Cost of investments $865,183,393 $54,394,310 $10,693,772 $130,273,570 ----------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments at June 30, 2006, were as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities - -------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $152,785,871 $ 3,820,193 $ 829,881 $ 5,502,104 Depreciation (34,611,805) (1,479,370) (381,547) (2,845,174) - -------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $118,174,066 $ 2,340,823 $ 448,334 $ 2,656,930 - --------------------------------------------------------------------------------------------------------------
The tax components of undistributed net ordinary income and net long-term capital gains at June 30, 2006, were as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities - ------------------------------------------------------------------------------------- Undistributed net ordinary income* $8,844,253 $361,952 $122,403 $1,397,216 Undistributed net long-term capital gains 7,831,371 83,481 84,254 206,841 - -------------------------------------------------------------------------------------
* Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. The tax character of distributions paid during the tax years ended June 30, 2006 and June 30, 2005, was designated for purposes of the dividends paid deduction as follows:
Multi-Cap Small-Cap Global Value 2006 Value Value Value Opportunities - ------------------------------------------------------------------------------------------- Distributions from net ordinary income* $3,801,830 $102,331 $48,574 $139,508 Distributions from net long-term capital gains** 5,479,388 -- -- -- - ------------------------------------------------------------------------------------------- Multi-Cap Small-Cap Global Value 2005 Value Value Value Opportunities - ------------------------------------------------------------------------------------------- Distributions from net ordinary income* $2,157,195 $ -- $ -- $ -- Distributions from net long-term capital gains 454,137 -- -- -- - -------------------------------------------------------------------------------------------
*Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. **The Funds designated as a long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax period ended June 30, 2006. - ---- 39 Notes to Financial Statements (continued) 5. Management Fee and Other Transactions with Affiliates Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual 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 based upon the average daily net assets of each Fund as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities Fund-Level Fund-Level Fund-Level Fund-Level Average Daily Net Assets Fee Rate Fee Rate Fee Rate Fee Rate - --------------------------------------------------------------------------------- For the first $125 million .6500% .8000% .8000% .8000% For the next $125 million .6375 .7875 .7875 .7875 For the next $250 million .6250 .7750 .7750 .7750 For the next $500 million .6125 .7625 .7625 .7625 For the next $1 billion .6000 .7500 .7500 .7500 For net assets over $2 billion .5750 .7250 .7250 .7250 - ---------------------------------------------------------------------------------
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of June 30, 2006, the complex-level fee rate was .1887%.
Complex-Level Assets /(1)/ Complex-Level Fee Rate ----------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion /(2)/ .1400 -----------------------------------------------------------------
(1)The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2)With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. - ---- 40 The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into Sub-Advisory Agreements with NWQ and Tradewinds, of which Nuveen owns a controlling interest while key management of NWQ and Tradewinds owns a non-controlling minority interest. NWQ and Tradewinds are compensated for their services to the Funds from the management fee paid to the Adviser. The Adviser has agreed to waive part of its management fees or reimburse certain expenses of the Funds through July 31, 2009, in order to limit total operating expenses (excluding 12b-1 distribution and service fees and extraordinary expenses) from exceeding 1.25%, 1.45% and 1.25% of the average daily net assets of Small-Cap Value, Global Value and Value Opportunities, respectively, and from exceeding 1.50%, 1.55% and 1.50%, respectively, after July 31, 2009. The Adviser may also voluntarily reimburse additional expenses from time to time in any of the Funds. Voluntary reimbursements may be terminated at any time at the Adviser's discretion. The Trust pays 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 Trust from the Adviser or its affiliates. The Board of Trustees 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. During the fiscal year ended June 30, 2006, Nuveen Investments, LLC (the "Distributor"), a wholly owned subsidiary of Nuveen, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to authorized dealers as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities - --------------------------------------------------------------------------------- Sales charges collected (unaudited) $2,655,332 $100,836 $44,803 $545,728 Paid to authorized dealers (unaudited) 2,332,883 90,934 39,297 510,230 - ---------------------------------------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate authorized dealers for providing services to shareholders relating to their investments. During the fiscal year ended June 30, 2006, the Distributor compensated authorized dealers directly with commission advances at the time of purchase as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities -------------------------------------------------------------------------- Commission advances (unaudited) $2,620,316 $95,867 $41,356 $501,876 --------------------------------------------------------------------------
To compensate for commissions advanced to authorized dealers, all 12b-1 service fees collected on Class B Shares during the first year following a purchase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the fiscal year ended June 30, 2006, the Distributor retained such 12b-1 fees as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities -------------------------------------------------------------------------- 12b-1 fees retained (unaudited) $1,653,870 $22,612 $15,343 $71,187 --------------------------------------------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate authorized dealers for providing services to shareholders relating to their investments. The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended June 30, 2006, as follows:
Multi-Cap Small-Cap Global Value Value Value Value Opportunities ------------------------------------------------------------------ CDSC retained (unaudited) $178,957 $261 $775 $5,425 ------------------------------------------------------------------
During the fiscal year ended June 30, 2006, NWQ reimbursed Small-Cap Value $9,060, representing an earnings credit due to lost return opportunities attributable to its delay in investing a $500,000 inflow into the Fund. Although the amount was at all times invested in short-term fixed-income investments, NWQ reimbursed the Fund for an amount equivalent to the extra return it believed the Fund would have generated during the period had this amount been invested in securities held in the Fund's portfolio of equity investments. 6. New Accounting Pronouncement Financial Accounting Standards Board Interpretation No. 48 On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and does not expect the adoption of FIN 48 will have a significant impact on the net assets or results of operations of the Funds. - ---- 41 Financial Highlights Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ----------------------------- ------------------------ MULTI-CAP VALUE Net Net Beginning Invest- Realized/ Net Ending Net ment Unrealized Invest- Net Asset Income Gain ment Capital Asset Total Value (Loss)(a) (Loss) Total Income Gains Total Value Return(b) - --------------------------------------------------------------------------------------------------------------------------- Class A (12/02) Year Ended 6/30: 2006 $20.60 $ .15 $ 3.42 $ 3.57 $(.06) $ (.30) $ (.36) $23.81 17.45% 2005 18.56 .11 2.15 2.26 (.05) (.17) (.22) 20.60 12.20 2004 14.60 .04 4.38 4.42 (.02) (.44) (.46) 18.56 30.75 4/01/03- 6/30/03 11.54 .02 3.04 3.06 -- -- -- 14.60 26.52 12/09/02- 3/31/03 11.86 -- (.27) (.27) (.05) -- (.05) 11.54 (2.26) Class B (12/02) Year Ended 6/30: 2006 20.37 (.02) 3.37 3.35 -- (.30) (.30) 23.42 16.57 2005 18.45 (.04) 2.13 2.09 -- (.17) (.17) 20.37 11.35 2004 14.61 (.09) 4.37 4.28 -- (.44) (.44) 18.45 29.76 4/01/03- 6/30/03 11.58 -- 3.03 3.03 -- -- -- 14.61 26.17 12/09/02- 3/31/03 11.86 (.04) (.24) (.28) -- -- -- 11.58 (2.36) Class C (12/02) Year Ended 6/30: 2006 20.37 (.02) 3.37 3.35 -- (.30) (.30) 23.42 16.57 2005 18.45 (.04) 2.13 2.09 -- (.17) (.17) 20.37 11.35 2004 14.62 (.09) 4.36 4.27 -- (.44) (.44) 18.45 29.67 4/01/03- 6/30/03 11.58 (.01) 3.05 3.04 -- -- -- 14.62 26.25 12/09/02- 3/31/03 11.86 (.02) (.26) (.28) -- -- -- 11.58 (2.36) Class R (11/97) Year Ended 6/30: 2006 20.55 .20 3.42 3.62 (.11) (.30) (.41) 23.76 17.77 2005 18.52 .15 2.15 2.30 (.10) (.17) (.27) 20.55 12.43 2004 14.57 .06 4.38 4.44 (.05) (.44) (.49) 18.52 31.02 4/01/03- 6/30/03 11.51 .02 3.04 3.06 -- -- -- 14.57 26.59 Year Ended 3/31: 2003(e) 13.92 .08 (2.38) (2.30) (.11) -- (.11) 11.51 (16.52) 11/01/01- 3/31/02(f) 11.73 .05 2.20 2.25 (.06) -- (.06) 13.92 19.20 Year Ended 10/31: 2001(g) 13.28 .08 .09 .17 (.06) (1.66) (1.72) 11.73 1.23 - ---------------------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data ------------------------------------------------------------------------------ Before Credit/ After After Credit/ Reimbursement Reimbursement(c) Reimbursement(d) MULTI-CAP VALUE ----------------- ----------------- ----------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- ment ment ment Ratio of Income Ratio of Income Ratio of Income Expenses (Loss) Expenses (Loss) Expenses (Loss) Ending to to to to to to Net Average Average Average Average Average Average Portfolio Assets Net Net Net Net Net Net Turnover (000) Assets Assets Assets Assets Assets Assets Rate - --------------------------------------------------------------------------------------------------------------------- Class A (12/02) Year Ended 6/30: 2006 $409,788 1.33% .65% 1.33% .65% 1.33% .65% 9% 2005 179,548 1.36 .54 1.36 .54 1.36 .54 14 2004 58,279 1.48 .20 1.48 .20 1.48 .20 21 4/01/03- 6/30/03 4,732 1.66* .59* 1.66* .59* 1.66* .60* 13 12/09/02- 3/31/03 294 1.78* (.07)* 1.75* (.04)* 1.75* (.04)* 52 Class B (12/02) Year Ended 6/30: 2006 58,423 2.08 (.10) 2.08 (.10) 2.08 (.10) 9 2005 33,216 2.10 (.20) 2.10 (.20) 2.10 (.20) 14 2004 9,322 2.23 (.53) 2.23 (.53) 2.23 (.53) 21 4/01/03- 6/30/03 193 2.43* (.08)* 2.43* (.08)* 2.43* (.08)* 13 12/09/02- 3/31/03 20 3.29* (1.95)* 2.50* (1.16)* 2.50* (1.16)* 52 Class C (12/02) Year Ended 6/30: 2006 308,339 2.08 (.10) 2.08 (.10) 2.08 (.10) 9 2005 128,758 2.11 (.21) 2.11 (.21) 2.10 (.21) 14 2004 30,085 2.23 (.53) 2.23 (.53) 2.23 (.53) 21 4/01/03- 6/30/03 416 2.44* (.33)* 2.44* (.33)* 2.44* (.33)* 13 12/09/02- 3/31/03 2 2.50* (.62)* 2.50* (.62)* 2.50* (.62)* 52 Class R (11/97) Year Ended 6/30: 2006 212,033 1.09 .90 1.09 .90 1.09 .90 9 2005 82,413 1.10 .78 1.10 .78 1.10 .78 14 2004 46,546 1.24 .39 1.24 .39 1.24 .39 21 4/01/03- 6/30/03 26,777 1.41* .56* 1.41* .56* 1.41* .56* 13 Year Ended 3/31: 2003(e) 21,795 1.61 .37 1.36 .62 1.36 .62 52 11/01/01- 3/31/02(f) 25,505 2.21* (.10)* 1.25* .86* 1.25* .86* 14 Year Ended 10/31: 2001(g) 16,996 1.54 .25 1.25 .54 1.25 .54 66 - ---------------------------------------------------------------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income (Loss) is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)Information represents the performance history of the PBHG Special Equity Fund prior to the December 6, 2002, reorganization and the Nuveen NWQ Multi-Cap Value Fund subsequent to the reorganization. (f)Information represents the performance history of the PBHG Special Equity Fund and its predecessor fund, the NWQ Special Equity Portfolio (a series of the UAM Funds, Inc.), prior to December 14, 2001. (g)Information represents the performance history of the NWQ Special Equity Portfolio (a series of the UAM Funds, Inc.). See accompanying notes to financial statements. - ---- 42 Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions --------------------------- ----------------------- --------------------------- Before Credit/ Reimbursement SMALL-CAP VALUE ----------------- Ratio of Net Invest- ment Ratio of Income Net Net Expenses (Loss) Beginning Invest- Realized/ Net Ending Ending to to Net ment Unrealized Invest- Net Net Average Average Asset Income Gain ment Capital Asset Total Assets Net Net Value (Loss)(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets - ------------------------------------------------------------------------------------------------------------------------------- Class A (12/04) Year Ended 6/30: 2006 $20.84 $ .13 $5.48 $5.61 $(.08) $(.27) $(.35) $26.10 27.08%** $33,907 1.95% (.02)% 2005(e) 20.00 .05 .79 .84 -- -- -- 20.84 4.20 3 2.85* (.96)* Class B (12/04) Year Ended 6/30: 2006 20.76 (.07) 5.47 5.40 -- (.27) (.27) 25.89 26.17** 370 2.75 (.91) 2005(e) 20.00 (.03) .79 .76 -- -- -- 20.76 3.80 3 3.60* (1.70)* Class C (12/04) Year Ended 6/30: 2006 20.76 (.07) 5.49 5.42 -- (.27) (.27) 25.91 26.22** 7,244 2.73 (.86) 2005(e) 20.00 (.03) .79 .76 -- -- -- 20.76 3.80 3 3.60* (1.70)* Class R (12/04) Year Ended 6/30: 2006 20.87 .16 5.52 5.68 (.13) (.27) (.40) 26.15 27.41** 13,137 1.73 .07 2005(e) 20.00 .08 .79 .87 -- -- -- 20.87 4.35 2,079 2.61* (.72)* - -------------------------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data -------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) SMALL-CAP VALUE ----------------- ----------------- Ratio Ratio of Net of Net Invest- Invest- ment ment Ratio of Income Ratio of Income Expenses (Loss) Expenses (Loss) to to to to Average Average Average Average Portfolio Net Net Net Net Turnover Assets Assets Assets Assets Rate - ------------------------------------------------------------------ Class A (12/04) Year Ended 6/30: 2006 1.42% .51% 1.40% .53% 26% 2005(e) 1.49* .40* 1.42* .47* 22 Class B (12/04) Year Ended 6/30: 2006 2.16 (.33) 2.14 (.31) 26 2005(e) 2.24* (.35)* 2.17* (.28)* 22 Class C (12/04) Year Ended 6/30: 2006 2.17 (.30) 2.15 (.28) 26 2005(e) 2.24* (.35)* 2.17* (.28)* 22 Class R (12/04) Year Ended 6/30: 2006 1.17 .63 1.15 .65 26 2005(e) 1.25* .64* 1.17* .72* 22 - ------------------------------------------------------------------
* Annualized. ** During the fiscal year ended June 30, 2006, NWQ reimbursed Small Cap Value $9,060 for a cash balance maintained in the Fund. This reimbursement did not have an impact on the Fund's Class A total return, but would have otherwise reduced each of the total returns by .05% for Class B, C and R. (a)Per share Net Investment Income (Loss) is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the period December 9, 2004 (commencement of operations) through June 30, 2005. See accompanying notes to financial statements. - ---- 43 Financial Highlights (continued) Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions -------------------------- ----------------------- -------------------------- Before Credit/ Reimbursement GLOBAL VALUE ----------------- Ratio of Net Invest- ment Ratio of Income Net Net Expenses (Loss) Beginning Invest- Realized/ Net Ending Ending to to Net ment Unrealized Invest- Net Net Average Average Asset Income Gain ment Capital Asset Total Assets Net Net Value (Loss)(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets - ------------------------------------------------------------------------------------------------------------------------------- Class A (12/04) Year Ended 6/30: 2006 $20.71 $.27 $3.20 $3.47 $(.06) $(.17) $(.23) $23.95 16.81% $4,128 2.32% .43% 2005(e) 20.00 .10 .61 .71 -- -- -- 20.71 3.55 3 2.87* (.41)* Class B (12/04) Year Ended 6/30: 2006 20.63 .07 3.21 3.28 -- (.17) (.17) 23.74 15.94 298 3.12 (.47) 2005(e) 20.00 .01 .62 .63 -- -- -- 20.63 3.15 3 3.62* (1.16)* Class C (12/04) Year Ended 6/30: 2006 20.63 .07 3.22 3.29 -- (.17) (.17) 23.75 15.99 3,524 3.06 (.39) 2005(e) 20.00 .01 .62 .63 -- -- -- 20.63 3.15 3 3.62* (1.16)* Class R (12/04) Year Ended 6/30: 2006 20.74 .22 3.32 3.54 (.11) (.17) (.28) 24.00 17.15 3,261 2.09 .22 2005(e) 20.00 .13 .61 .74 -- -- -- 20.74 3.70 2,066 2.59* (.13)* - -------------------------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data ------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) GLOBAL VALUE ----------------- ----------------- Ratio Ratio of Net of Net Invest- Invest- ment ment Ratio of Income Ratio of Income Expenses (Loss) Expenses (Loss) to to to to Average Average Average Average Portfolio Net Net Net Net Turnover Assets Assets Assets Assets Rate - --------------------------------------------------------------------- Class A (12/04) Year Ended 6/30: 2006 1.69% 1.06% 1.61% 1.14% 21% 2005(e) 1.72* .74* 1.58* .88* 6 Class B (12/04) Year Ended 6/30: 2006 2.44 .21 2.36 .29 21 2005(e) 2.47* (.01)* 2.33* .13* 6 Class C (12/04) Year Ended 6/30: 2006 2.44 .22 2.36 .31 21 2005(e) 2.47* (.01)* 2.33* .13* 6 Class R (12/04) Year Ended 6/30: 2006 1.44 .88 1.36 .96 21 2005(e) 1.44* 1.02* 1.33* 1.13* 6 - ---------------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income (Loss) is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the period December 9, 2004 (commencement of operations) through June 30, 2005. See accompanying notes to financial statements. - ---- 44 Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions -------------------------- ----------------------- --------------------------- Before Credit/ Reimbursement VALUE OPPORTUNITIES ----------------- Ratio of Net Invest- ment Ratio of Income Net Net Expenses (Loss) Beginning Invest- Realized/ Net Ending Ending to to Net ment Unrealized Invest- Net Net Average Average Asset Income Gain ment Capital Asset Total Assets Net Net Value (Loss)(a) (Loss) Total Income Gains Total Value Return(b) (000) Assets Assets - -------------------------------------------------------------------------------------------------------------------------------- Class A (12/04) Year Ended 6/30: 2006 $21.07 $.28 $5.88 $6.16 $(.07) $(.26) $(.33) $26.90 29.45% $73,389 1.63% .94% 2005(e) 20.00 .08 .99 1.07 -- -- -- 21.07 5.35 3 3.12* (1.10)* Class B (12/04) Year Ended 6/30: 2006 20.98 .09 5.85 5.94 -- (.26) (.26) 26.66 28.49 1,041 2.40 .16 2005(e) 20.00 -- .98 .98 -- -- -- 20.98 4.90 3 3.87* (1.85)* Class C (12/04) Year Ended 6/30: 2006 20.98 .08 5.86 5.94 -- (.26) (.26) 26.66 28.49 22,102 2.40 .15 2005(e) 20.00 -- .98 .98 -- -- -- 20.98 4.90 3 3.87* (1.85)* Class R (12/04) Year Ended 6/30: 2006 21.09 .31 5.93 6.24 (.12) (.26) (.38) 26.95 29.80 37,393 1.48 .98 2005(e) 20.00 .11 .98 1.09 -- -- -- 21.09 5.45 2,102 2.86* (.84)* - --------------------------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data -------------------------------------------------- After After Credit/ Reimbursement(c) Reimbursement(d) VALUE OPPORTUNITIES ----------------- ----------------- Ratio Ratio of Net of Net Invest- Invest- ment ment Ratio of Income Ratio of Income Expenses (Loss) Expenses (Loss) to to to to Average Average Average Average Portfolio Net Net Net Net Turnover Assets Assets Assets Assets Rate - ---------------------------------------------------------------------- Class A (12/04) Year Ended 6/30: 2006 1.49% 1.09% 1.48% 1.09% 29% 2005(e) 1.51* .52* 1.30* .73* 45 Class B (12/04) Year Ended 6/30: 2006 2.24 .33 2.23 .34 29 2005(e) 2.26* (.23)* 2.05* (.02)* 45 Class C (12/04) Year Ended 6/30: 2006 2.24 .31 2.23 .32 29 2005(e) 2.26* (.23)* 2.05* (.02)* 45 Class R (12/04) Year Ended 6/30: 2006 1.24 1.22 1.23 1.23 29 2005(e) 1.24* .77* 1.05* .97* 45 - ----------------------------------------------------------------------
* Annualized. (a)Per share Net Investment Income (Loss) is calculated using the average daily shares method. (b)Total returns are calculated on net asset value without any sales charge and are not annualized. (c)After expense reimbursement from the Adviser, where applicable. (d)After custodian fee credit and expense reimbursement, where applicable. (e)For the period December 9, 2004 (commencement of operations) through June 30, 2005. See accompanying notes to financial statements. - ---- 45 Report of Independent Registered Public Accounting Firm To the Board of Trustees and Shareholders of Nuveen Investment Trust: In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Multi-Cap Value Fund, Nuveen NWQ Small-Cap Value Fund, Nuveen NWQ Global Value Fund and Nuveen NWQ Value Opportunities Fund (each a series of the Nuveen Investment Trust, hereafter referred to as the "Funds") at June 30, 2006, the results of each of their operations for the year then ended, and the changes in each of their net assets and the financial highlights for the year then ended and for the period December 9, 2004 (commencement of operations) through June 30, 2005, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PRICEWATERHOUSECOOPERS LLP Chicago, IL August 24, 2006 - ---- 46 Annual Investment Management Agreement Approval Process The Board of Trustees is responsible for overseeing the performance of the investment advisers to the Funds and determining whether to continue the advisory arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the Board of Trustees of the Funds, including the independent Trustees, unanimously approved the continuance of the Investment Management Agreement between each Fund and NAM, the Sub-Advisory Agreements between NAM and NWQ with respect to the Nuveen NWQ Multi-Cap Value Fund, Nuveen NWQ Small-Cap Value Fund and Nuveen NWQ Global Value Fund, and the Sub-Advisory Agreements between NAM and Tradewinds with respect to the Nuveen Tradewinds Value Opportunities Fund (formerly known as Nuveen NWQ Value Opportunities Fund) and Nuveen NWQ Global Value Fund. NWQ and Tradewinds are each a "Sub-Adviser." NAM and the Sub-Advisers are each a "Fund Adviser." The Approval Process During the course of the year, the Board received a wide variety of materials relating to the services provided by the Fund Advisers and the performance of each Fund. To assist the Board in its evaluation of the advisory contract with a Fund Adviser at the May Meeting, the independent Trustees received extensive materials in advance of their meeting which outlined, among other things: .. the nature, extent and quality of services provided by the Fund Adviser; .. the organization and business operations of the Fund Adviser, including the responsibilities of various departments and key personnel; .. the Fund's past performance as well as the Fund's performance compared to funds of similar investment objectives compiled by an independent third party and with recognized and/or customized benchmarks (as appropriate); .. the profitability of the Fund Adviser and certain industry profitability analyses for unaffiliated advisers; .. the expenses of the Fund Adviser in providing the various services; .. the advisory fees (gross and net management fees) and total expense ratios of the Fund, including comparisons of such fees and expenses with those of comparable, unaffiliated funds based on information and data provided by Lipper (the "Peer Universe") as well as compared to a subset of funds within the Peer Universe (the "Peer Group") to the respective Fund (as applicable); .. the advisory fees the Fund Adviser assesses to other types of investment products or clients; .. the soft dollar practices of the Fund Adviser; and .. from independent legal counsel, a legal memorandum describing, among other things, the duties of the Trustees under the Investment Company Act of 1940 (the "1940 Act") as well as the general principles of relevant state law in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; an adviser's fiduciary duty with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and factors to be considered by the board in voting on advisory agreements. At the May Meeting, NAM made a presentation to and responded to questions from the Board. After the presentations and after reviewing the written materials, the independent Trustees met privately with their legal counsel to review the Board's duties in reviewing advisory contracts and consider the renewal of the advisory contracts. It is with this background that the Trustees considered each advisory contract (which includes the Sub-Advisory Agreements) with the respective Fund Adviser. The independent Trustees, in consultation with independent counsel, reviewed the factors set out in judicial decisions and SEC directives relating to the renewal of advisory contracts. As outlined in more detail below, the Trustees considered all factors they believed relevant with respect to each Fund, including the following: (a) the nature, extent and quality of the services to be provided by the Fund Adviser; (b) the investment performance of the Fund and the Fund Adviser; (c) the costs of the services to be provided and profitability of the Fund Adviser and its affiliates; (d) the extent to which economies of scale would be realized as the Fund grows; and (e) whether fee levels reflect these economies of scale for the benefit of Fund investors. A. Nature, Extent and Quality of Services In reviewing the Fund Advisers, the Trustees considered the nature, extent and quality of the respective Fund Adviser's services. The Trustees reviewed materials outlining, among other things, the Fund Adviser's organization and business; the types of services that a Fund Adviser or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen has taken for its mutual fund product line. In connection with their continued service as Trustees, the Trustees also have a good understanding of each Fund Adviser's organization, operations and personnel. In this regard, the Trustees are familiar with and have evaluated the professional experience, qualifications and credentials of the applicable Fund Adviser's personnel. With respect to each Sub-Adviser, the Trustees also received and reviewed an evaluation of the Sub-Adviser from NAM. Such evaluation outlined, among other things, the Sub-Adviser's organizational history, client base, product mix, investment team and any changes thereto, investment process and any changes to its investment strategy, the Funds' investment objectives and performance (as applicable). The Trustees noted that NAM recommended the renewal of the Sub-Advisory Agreements and considered the basis for such recommendations and any qualifications in connection therewith. Given the Trustees' experience with the Funds and each Fund Adviser (or predecessor thereto), the Trustees recognized the history of care and depth of experience of the respective personnel in managing these Funds, consistent investment process, and recent growth of assets under management. - ---- 47 Annual Investment Management Agreement Approval Process (continued) In addition to advisory services, the independent Trustees considered the quality of any administrative or non-advisory services provided. With respect to the Sub-Advisers, the independent Trustees noted that each Sub-Advisory Agreement was essentially an agreement for portfolio management services only and the Sub-Adviser was not expected to supply other significant administrative services to the respective Fund. With respect to NAM, NAM provides the Funds with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Funds) and officers and other personnel as are necessary for the operations of the respective Fund. In connection with the review of the Investment Management Agreement, the Trustees considered the extent and quality of these other services which include, among other things, providing: product management (e.g., product positioning, performance benchmarking, risk management); fund administration (e.g., daily net asset value pricing and reconciliation, tax reporting, fulfilling regulatory filing requirements); oversight of third party service providers; administration of board relations (e.g., organizing board meetings and preparing related materials); compliance (e.g., monitoring compliance with investment policies and guidelines and regulatory requirements); and legal support (e.g., helping prepare and file registration statements, amendments thereto, proxy statements and responding to regulatory requests and/or inquiries). As the Funds operate in a highly regulated industry and given the importance of compliance, the Trustees considered, in particular, the additions of experienced personnel to the compliance teams and the enhancements to technology and related systems to support the compliance activities for the Funds (including a new reporting system for quarterly portfolio holdings). In addition to the above, because the Funds utilize Sub-Advisers, the Trustees also considered NAM's ability and procedures to monitor the respective Sub-Adviser's performance, business practices and compliance policies and procedures. In this regard, the Trustees noted the enhancements in the investment oversight process, including increased site visits and departments participating in investment oversight. Based on their review, the Trustees found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Investment Management Agreement or Sub-Advisory Agreement, as applicable, were of a high level and were satisfactory. B. The Investment Performance of the Fund and Fund Advisers The Board considered the investment performance for each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives identified by an independent third party (the "Performance Peer Group") and recognized and/or customized benchmarks (as applicable). In evaluating the performance information, in certain instances, the Trustees noted that the closest Performance Peer Group for a Fund still may not adequately reflect such Fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Fund's performance with that of the Performance Peer Group (such as the Performance Peer Groups of the Nuveen Balanced Stock and Bond Fund, Nuveen Balanced Municipal and Stock Fund and Nuveen Tradewinds Value Opportunities Fund). In reviewing performance, the Trustees reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group as well as recognized and/or customized benchmarks (as appropriate) for the one-, three- and five-year periods (as applicable) ending December 31, 2005. This information supplements the Fund performance information provided to the Board at each of their quarterly meetings. Based on their review, the Trustees determined that the respective Fund's absolute and relative investment performance over time had been satisfactory. C. Fees, Expenses and Profitability 1. Fees and Expenses In evaluating the management fees and expenses of a Fund, the Board reviewed, among other things, the Fund's advisory fees (net and gross management fees) and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as comparisons to the gross management fees (before waivers), net management fees (after waivers) and total expense ratios (before and after waivers) of comparable funds in the Peer Universe and the Peer Group. The Trustees reviewed data regarding the construction of Peer Groups as well as the methods of measurement for the fee and expense analysis and the performance analysis. In certain cases, due to the small number of peers in the Peer Universe, the Peer Universe and Peer Group may be the same. Further, the Trustees recognized that in certain cases, the closest Peer Universe and/or Peer Group may not adequately reflect the Fund's investment objectives and strategies limiting the usefulness of comparisons (e.g., Nuveen Balanced Stock and Bond Fund, Nuveen Balanced Municipal and Stock Fund and Nuveen Tradewinds Value Opportunities Fund). In reviewing comparisons, the Trustees also considered the size of the Peer Universe and/or Peer Group, the composition of the Peer Group (including, in particular, the asset size of the peers) as well as differing levels of fee waivers and/or expense reimbursements. In this regard, the Trustees considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen. Based on their review of the fee and expense information provided, the Trustees determined that each Fund's net total expense ratio was within an acceptable range compared to peers. 2. Comparisons with the Fees of Other Clients The Trustees further reviewed data comparing the advisory fees of NAM with fees NAM charges to other clients (such as separate managed accounts and funds that are not offered by Nuveen Investments but are sub-advised by one of Nuveen's investment management teams). In general, the advisory fees charged for separate accounts are somewhat lower than the - ---- 48 advisory fees assessed to the Funds. The Trustees recognized that the differences in fees are attributable to a variety of factors, including the differences in services provided, product distribution, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Trustees noted, in particular, that the range of services provided to the Funds is more extensive than that provided to managed separate accounts. As described in further detail above, such additional services include, but are not limited to, providing: product management, fund administration, oversight of third party service providers, administration of board relations, and legal support. Funds further operate in a highly regulated industry requiring extensive compliance functions compared to the other investment products. In addition to the costs of the additional services, administrative costs may also be greater for funds as the average account size for separate accounts is notably larger than the retail accounts of funds. Given the differences in the product structures, particularly the extensive services provided to the Funds, the Trustees believe such facts justify the different levels of fees. In considering the fees of a Sub-Adviser, the Trustees also considered the pricing schedule that the Sub-Adviser charges for similar investment management services for other fund sponsors or clients. 3. Profitability of Fund Advisers In conjunction with its review of fees, the Trustees also considered the profitability of Nuveen Investments for advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees reviewed data comparing Nuveen's profitability with other fund sponsors prepared by three independent third party service providers as well as comparisons of the revenues, expenses and profits margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen. The Trustees further reviewed the 2005 Annual Report for Nuveen Investments. In considering profitability, the Trustees recognized the inherent limitations in determining profitability as well as the difficulties in comparing the profitability of other unaffiliated advisers. Profitability may be affected by numerous factors, including the methodology for allocating expenses, the adviser's business mix, the types of funds managed, the adviser's capital structure and cost of capital. Further, individual fund or product line profitability of other sponsors is generally not publicly available. Accordingly, the profitability information that is publicly available from various investment advisory or management firms may not be representative of the industry. Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In this regard, the methods of allocation used appeared reasonable. The Trustees also, to the extent available, compared Nuveen's profitability margins (including pre- and post-marketing profit margins) with the profitability of various unaffiliated management firms. The Trustees noted that Nuveen's profitability is enhanced due to its efficient internal business model. The Trustees also recognized that while a number of factors affect profitability, Nuveen's profitability may change as fee waivers and/or expense reimbursement commitments of Nuveen to various funds in the Nuveen complex expire. To keep apprised of profitability and developments that may affect profitability, the Trustees have requested profitability analysis be provided periodically during the year. Based on their review, the Trustees were satisfied that the respective Fund Adviser's level of profitability was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Trustees also considered any other revenues paid to a Fund Adviser as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser and its affiliates are expected to receive that are directly attributable to their management of the Funds, if any. See Section E below for additional information. Based on their review of the overall fee arrangements of the applicable Fund, the Trustees determined that the advisory fees and expenses of the respective Fund were reasonable. D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale With respect to economies of scale, the Trustees recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base as a fund grows. To help ensure the shareholders share in these benefits, the Trustees have reviewed and considered the breakpoints in the advisory fee schedules that reduce advisory fees as the applicable Fund's assets grow. In addition to advisory fee breakpoints as assets in a respective Fund rise, after lengthy discussions with management, the Board also approved a complex-wide fee arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. In evaluating the complex-wide fee arrangement, the Trustees considered, among other things, the historic and expected fee savings to shareholders as assets grow, the amount of fee reductions at various asset levels, and that the arrangement would extend to all funds in the Nuveen complex. The Trustees noted that 2005 was the first full year to reflect the fee reductions from the complex wide fee arrangement. The Trustees also considered the impact, if any, the complex-wide fee arrangement may have on the level of services provided. Based on their review, the Trustees concluded that the breakpoint schedule and complex-wide fee arrangement currently was acceptable and desirable in providing benefits from economies of scale to shareholders. E. Indirect Benefits In evaluating fees, the Trustees also considered any indirect benefits or profits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund, including any sales charges and distribution fees received and retained by the Funds' principal underwriter, Nuveen Investments, Inc., an affiliate of NAM as well as any benefits derived from soft dollar arrangements. The Trustees recognized that an affiliate of NAM provides distribution and shareholder services to the Funds and - ---- 49 Annual Investment Management Agreement Approval Process (continued) their shareholders for which it may be compensated pursuant to a 12b-1 plan. The Trustees therefore considered the 12b-1 fees retained by Nuveen during the last calendar year. In addition to the above, the Trustees considered whether the Fund Adviser received any benefits from soft dollar arrangements. With respect to NAM, the Trustees noted that NAM does not currently have any soft dollar arrangements and does not pay excess brokerage commissions (or spreads on principal transactions) in order to receive research services; however, NAM may from time to time receive and have access to research generally provided to institutional clients. The Trustees considered that both Sub-Advisers do benefit from their soft dollar arrangements pursuant to which the respective Sub-Adviser receives research from brokers that execute the applicable Fund's portfolio transactions. At the May Meeting as well as prior meetings, the Trustees have received and reviewed materials concerning such Sub-Advisers' (or predecessors') soft dollar arrangements, including the types of research received. In this regard, the respective Sub-Adviser limits the type of research received with the use of soft dollars to that with intellectual content. Accordingly, the Trustees noted that such Sub-Adviser's profitability may be lower if it was required to pay for this research with hard dollars. F. Other Considerations The Trustees did not identify any single factor discussed previously as all-important or controlling. The Trustees, including a majority of independent Trustees, concluded that the terms of the Investment Management and Sub-Advisory Agreements were fair and reasonable, that the respective Fund Adviser's fees are reasonable in light of the services provided to each Fund and that the renewal of the NAM Investment Management Agreement and the Sub-Advisory Agreements should be approved. - ---- 50 Notes - ---- 51 Notes - -------------------------------------------------------------------------------- 52 Trustees and Officers ================================================================================ The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of trustees of the Funds is currently set at nine. None of the trustees who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below. The Funds' Statement of Additional Information ("SAI") includes more information about the Trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds' website at www.nuveen.com.
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (2) During Past 5 Years Trustee - --------------------------------------------------------------------------------------------------------------------- Trustee who is an interested person of the Funds: - --------------------------------------------------------------------------------------------------------------------- Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman (since 1996) and Director of Nuveen 167 3/28/49 Board and Investments, Inc., Nuveen Investments, LLC, 333 W. Wacker Drive Trustee Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.(4); formerly, Director (1996-2006) of Institutional Capital Corporation; Chairman and Director (since 1997) of Nuveen Asset Management; Chairman and Director of Rittenhouse Asset Management, Inc. (since 1999); Chairman of Nuveen Investments Advisers Inc. (since 2002). Trustees who are not interested persons of the Funds: - --------------------------------------------------------------------------------------------------------------------- Robert P. Bremner Lead 1997 Private Investor and Management Consultant. 167 8/22/40 Independent 333 W. Wacker Drive Trustee Chicago, IL 60606 - --------------------------------------------------------------------------------------------------------------------- Lawrence H. Brown Trustee 1993 Retired (since 1989) as Senior Vice 167 7/29/34 President of The Northern Trust Company; 333 W. Wacker Drive Director (since 2002) Community Advisory Chicago, IL 60606 Board for Highland Park and Highwood, United Way of the North Shore. - --------------------------------------------------------------------------------------------------------------------- Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a 167 10/22/48 private philanthropic corporation (since 333 W. Wacker Drive 1996); Director and Vice Chairman, United Chicago, IL 60606 Fire Group, a publicly held company; Adjunct Faculty Member, University of Iowa; Director, Gazette Companies; Life Trustee of Coe College and Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. - --------------------------------------------------------------------------------------------------------------------- William C. Hunter Trustee 2004 Dean, Tippie College of Business, University 167 3/6/48 of Iowa (since June 2006); formerly, Dean 333 W. Wacker Drive and Distinguished Professor of Finance, Chicago, IL 60606 School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation; Director, SS&C Technologies, Inc. (May 2005-October 2005). - --------------------------------------------------------------------------------------------------------------------- David J. Kundert Trustee 2005 Retired (since 2004) as Chairman, JPMorgan 165 10/28/42 Fleming Asset Management, President and CEO, 333 W. Wacker Drive Banc One Investment Advisors Corporation, Chicago, IL 60606 and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens.
- ---- 53 Trustees and Officers (continued) ================================================================================
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (2) During Past 5 Years Trustee - ------------------------------------------------------------------------------------------------------------- William J. Schneider Trustee 1997 Chairman of Miller-Valentine Partners Ltd., 167 9/24/44 a real estate investment company; formerly, 333 W. Wacker Drive Senior Partner and Chief Operating Officer Chicago, IL 60606 (retired 2004) of Miller-Valentine Group; formerly, Vice President, Miller-Valentine Realty; Board Member, Chair of the Finance Committee and member of the Audit Committee of Premier Health Partners, the not-for-profit company of Miami Valley Hospital; Vice President, Dayton Philharmonic Orchestra Association; Board Member, Regional Leaders Forum, which promotes cooperation on economic development issues; Director, Dayton Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. - ------------------------------------------------------------------------------------------------------------- Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy 167 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). - ------------------------------------------------------------------------------------------------------------- Eugene S. Sunshine Trustee 2005 Senior Vice President for Business and 167 1/22/50 Finance, Northwestern University (since 333 W. Wacker Drive 1997); Director (since 2003), Chicago Board Chicago, IL 60606 Options Exchange; Director (since 2003), National Mentor Holdings, a privately-held, national provider of home and community-based services; Chairman (since 1997), Board of Directors, Rubicon, a pure captive insurance company owned by Northwestern University; Director (since 1997), Evanston Chamber of Commerce and Evanston Inventure, a business development organization. Number of Portfolios in Name, Position(s) Year First Fund Complex Birthdate Held with Elected or Principal Occupation(s) Overseen by and Address the Funds Appointed (3) During Past 5 Years Officer - ------------------------------------------------------------------------------------------------------------- Officers of the Funds: - ------------------------------------------------------------------------------------------------------------- Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant 167 9/9/56 Administrative Secretary and Associate General Counsel, 333 W. Wacker Drive Officer formerly, Vice President and Assistant Chicago, IL 60606 General Counsel, of Nuveen Investments, LLC; Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Managing Director (since 2002) and Assistant Secretary and Associate General Counsel, formerly, Vice President (since 1997), of Nuveen Asset Management; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. and Symphony Asset Management LLC (since 2003); Assistant Secretary of Tradewinds NWQ Global Investors, LLC (since 2006); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------- Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly 167 9/22/63 Vice President (since 2002); formerly, 333 W. Wacker Drive Assistant Vice President (since 2000) of Chicago, IL 60606 Nuveen Investments, LLC; Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------- Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 167 2/3/66 and Assistant Assistant Vice President (since 2000) of 333 W. Wacker Drive Secretary Nuveen Investments, LLC. Chicago, IL 60606
- ---- 54
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (3) During Past 5 Years Trustee - -------------------------------------------------------------------------------------------------------------- Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen 167 11/28/67 and Treasurer Investments, LLC and of Nuveen Investments, 333 W. Wacker Drive Inc. (since 1999); Vice President and Chicago, IL 60606 Treasurer of Nuveen Asset Management (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC. (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. and Symphony Asset Management LLC (since 2003); Treasurer, Tradewinds NWQ Global Investors, LLC (since 2006); formerly, Vice President and Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Chartered Financial Analyst. - -------------------------------------------------------------------------------------------------------------- John N. Desmond Vice President 2005 Vice President, Director of Investment 167 8/24/61 Operations, Nuveen Investments, LLC (since 333 W. Wacker Drive 2005); formerly, Director, Business Manager, Chicago, IL 60606 Deutsche Asset Management (2003-2004), Director, Business Development and Transformation, Deutsche Trust Bank Japan (2002-2003); previously, Senior Vice President, Head of Investment Operations and Systems, Scudder Investments Japan, (2000-2002), Senior Vice President, Head of Plan Administration and Participant Services, Scudder Investments (1995-2002). - -------------------------------------------------------------------------------------------------------------- Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant 167 9/24/64 and Secretary Secretary and Assistant General Counsel 333 W. Wacker Drive (since 1998) formerly, Assistant Vice Chicago, IL 60606 President (since 1998) of Nuveen Investments, LLC; Vice President (2002-2004) and Assistant Secretary (1998-2004) formerly, Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Vice President and Assistant Secretary (since 2005) of Nuveen Asset Management. - -------------------------------------------------------------------------------------------------------------- Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, 167 10/24/45 Vice President of Nuveen Investments, LLC, 333 W. Wacker Drive Managing Director (2004) formerly, Vice Chicago, IL 60606 President (1998-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Managing Director (since 2005) of Nuveen Asset Management. - -------------------------------------------------------------------------------------------------------------- William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, 167 3/2/64 Vice President of Nuveen Investments; 333 W. Wacker Drive Managing Director (1997-2004) of Nuveen Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Managing Director (since 2001) of Nuveen Asset Management ; Vice President (since 2002) of Nuveen Investments Advisers Inc.; Chartered Financial Analyst. - -------------------------------------------------------------------------------------------------------------- Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 167 5/31/54 and Controller Controller (since 1998) of Nuveen 333 W. Wacker Drive Investments, LLC; formerly, Vice President Chicago, IL 60606 and Funds Controller (1998-2004) of Nuveen Investments, Inc.; Certified Public Accountant. - -------------------------------------------------------------------------------------------------------------- David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 167 3/22/63 Investments, LLC; Certified Public 333 W. Wacker Drive Accountant. Chicago, IL 60606 - -------------------------------------------------------------------------------------------------------------- Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC 167 8/27/61 (since 1999). 333 W. Wacker Drive Chicago, IL 60606
- ---- 55 Trustees and Officers (continued) ================================================================================
Number of Portfolios in Name, Position(s) Year First Principal Occupation(s) Fund Complex Birthdate Held with Elected or Including other Directorships Overseen by and Address the Funds Appointed (3) During Past 5 Years Trustee - ------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 167 7/27/51 and Assistant Assistant General Counsel of Nuveen 333 W. Wacker Drive Secretary Investments, LLC; formerly, Vice President Chicago, IL 60606 and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(4); Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), and Tradewinds NWQ Global Investors, LLC (since 2006).
(1)Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and trustee of the Adviser. (2)Trustees serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the Trustee was first elected or appointed to any fund in the Nuveen Complex. (3)Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. (4)Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. - ---- 56 Fund Information ================================================================================ Fund Manager Legal Counsel Transfer Agent and Nuveen Asset Management Chapman and Cutler LLP Shareholder Services 333 West Wacker Drive Chicago, IL Boston Financial Chicago, IL 60606 Data Services, Inc. Independent Registered Nuveen Investor Services Sub-Adviser Public Accounting Firm P.O. Box 8530 NWQ Investment Management PricewaterhouseCoopers LLP Boston, MA 02266-8530 Company, LLC Chicago, IL (800) 257-8787 2049 Century Park East Los Angeles, CA 90067 Custodian Tradewinds NWQ Global State Street Bank & Trust Company Investors, LLC Boston, MA 2049 Century Park East Los Angeles, CA 90067
================================================================================ Glossary of Terms Used in this Report Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered. Average Market Capitalization: The market capitalization of a company is equal to the number of the company's common shares outstanding multiplied by the current price of the company's stock. The average market capitalization of a mutual fund's portfolio gives a measure of the size of the companies in which the fund invests. Net Asset Value (NAV): A Fund's NAV is the dollar value of one share in the fund. It is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. ================================================================================ Quarterly Portfolio of Investments and Proxy Voting information: Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30, 2006, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section at 450 Fifth Street NW, Washington, D.C. 20549. ================================================================================ NASD Regulation, Inc. provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of NASD members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an investor brochure that includes information describing the Public Disclosure Program. - ---- 57 Learn more about Nuveen Funds at www.nuveen.com/mf Nuveen Investments: SERVING Investors For GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. Over this time, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that can be integral parts of a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing approximately $149 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: NWQ, specializing in value-style equities; Nuveen, managing fixed-income investments; Santa Barbara, committed to growth equities; Tradewinds NWQ, specializing in global value equities; Rittenhouse, focused on "blue-chip" growth equities; and Symphony, with expertise in alternative investments as well as equity and income portfolios. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. .. Share prices .. Fund details .. Daily financial news .. Investor education [LOGO] Nuveen Investments MAN-NWQ-0606D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/mf. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's board of directors determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Office of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Trust's auditor, billed to the Trust during the Trust's last two full fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers LLP provided to the Trust, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Trust waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Trust during the fiscal year in which the services are provided; (B) the Trust did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE TRUST
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees June 30, 2006 to Funds/1/ Billed to Funds/2/ Billed to Funds/3/ Billed to Funds/4/ - ----------------------------------- ----------------- ------------------- ------------------- ------------------- Name of Series Balanced Stock and Bond Fund 7,434 0 932 0 Balanced Municipal and Stock Fund 8,258 0 932 0 Large Cap Value Fund 25,178 0 932 0 NWQ Multi-Cap Value Fund 34,314 0 932 0 NWQ Global Value Fund 5,490 0 1,319 0 NWQ Small-Cap Value Fund 5,864 0 1,703 0 Tradewinds Value Opportunities Fund 7,045 0 2,123 0 ----------------- ------------------- ------------------- ------------------- Total $ 93,583 $ 0 $ 8,873 $ 0
/1/ "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. /2/ "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". /3/ "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. /4/ "All Other Fees" are the aggregate fees billed for products and services other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
Percentage Approved Pursuant to Pre-approval Exception ----------------------------------------------------------------------------------- Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees to Funds Billed to Funds Billed to Funds Billed to Funds ----------------- ------------------- ------------------- ------------------- Name of Series Balanced Stock and Bond Fund 0 0 0 0 Balanced Municipal and Stock Fund 0 0 0 0 Large Cap Value Fund 0 0 0 0 NWQ Multi-Cap Value Fund 0 0 0 0 NWQ Global Value Fund 0 0 0 0 NWQ Small-Cap Value Fund 0 0 0 0 Tradewinds Value Opportunities Fund 0 0 0 0
The above "Tax Fees" were billed for professional services for tax advice, tax compliance, and tax planning.
Fiscal Year Ended Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees June 30, 2005 to Funds/1/ Billed to Funds/2/ Billed to Funds/3/ Billed to Funds/4/ - ----------------------------------- ----------------- ------------------- ------------------- ------------------- Name of Series Balanced Stock and Bond Fund 7,443 0 269 0 Balanced Municipal and Stock Fund 8,216 0 368 0 Large Cap Value Fund 25,807 0 2,324 0 NWQ Multi-Cap Value Fund 17,881 0 731 0 NWQ Global Value Fund 5,060 0 0 0 NWQ Small-Cap Value Fund 5,062 0 0 0 Tradewinds Value Opportunities Fund 5,061 0 0 0 ----------------- ------------------- ------------------- ------------------- Total $ 74,530 $ 0 $ 3,692 $ 0
/1/ "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. /2/ "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". /3/ "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. /4/ "All Other Fees" are the aggregate fees billed for products and services other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
Percentage Approved Pursuant to Pre-approval Exception ----------------------------------------------------------------------------------- Audit Fees Billed Audit-Related Fees Tax Fees All Other Fees to Funds Billed to Funds Billed to Funds Billed to Funds ----------------- ------------------- ------------------- ------------------- Name of Series Balanced Stock and Bond Fund 0 0 0 0 Balanced Municipal and Stock Fund 0 0 0 0 Large Cap Value Fund 0 0 0 0 NWQ Multi-Cap Value Fund 0 0 0 0 NWQ Global Value Fund 0 0 0 0 NWQ Small-Cap Value Fund 0 0 0 0 Tradewinds Value Opportunities Fund 0 0 0 0
The above "Tax Fees" were billed for professional services for tax advice, tax compliance, and tax planning. SERVICES THAT THE TRUST'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by PricewaterhouseCoopers LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM ("Control Affiliate") that provides ongoing services to the Trust ("Affiliated Fund Service Provider"), for engagements directly related to the Trust's operations and financial reporting, during the Trust's last two full fiscal years.
Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund June 30, 2006 Service Providers Service Providers/1/ Service Providers - ----------------------- --------------------- --------------------- ------------------- Nuveen Investment Trust $ 0 $ 17,500 $ 0 Percentage Approved Pursuant to Pre-approval Exception ------------------------------------------------------------------- Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Affiliated Fund Affiliated Fund and Affiliated Fund Service Providers Service Providers Service Providers --------------------- --------------------- ------------------- 0% 0% 0%
/1/ The amounts reported for the Trust under the column heading "Tax Fees" represents amounts billed to the Adviser exclusively for the preparation for the Fund's tax return, the cost of which is borne by the Adviser. In the aggregate, for all Nuveen funds for which PricewaterHouse Coopers serves as independent registered public accounting firm, these fees amounted to $130,000 in 2006.
Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Fiscal Year Ended Affiliated Fund Affiliated Fund and Affiliated Fund June 30, 2005 Service Providers Service Providers/1/ Service Providers - ----------------------- --------------------- --------------------- ------------------- Nuveen Investment Trust $ 0 $ 15,750 $ 0 Percentage Approved Pursuant to Pre-approval Exception ------------------------------------------------------------------- Audit-Related Fees Tax Fees Billed to All Other Fees Billed to Adviser and Adviser and Billed to Adviser Affiliated Fund Affiliated Fund and Affiliated Fund Service Providers Service Providers Service Providers --------------------- --------------------- ------------------- 0% 0% 0%
/1/ The amounts reported for the Trust under the column heading "Tax Fees" represents amounts billed to the Adviser exclusively for the preparation for the Fund's tax return, the cost of which is borne by the Adviser. In the aggregate, for all Nuveen funds for which PricewaterHouse Coopers serves as independent registered public accounting firm, these fees amounted to $49,500 in 2005. The above "Tax Fees" are fees billed to the Adviser for Nuveen Open-End and Closed-End Funds tax return preparation. The amount reported for the Trust under the column heading "Tax Fees Billed to Adviser and Affiliated Fund Service Providers" represents the aggregate amount billed to the Adviser exclusively for the preparation of each Fund's (within the Trust) tax return, the cost of which is borne by the Adviser. In aggregate, for all Nuveen funds which PriceWaterHouse Coopers serves as the independent registered public accounting firm these fees amounted to $49,500 in 2006. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to PricewaterhouseCoopers LLP by the Trust, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Trust did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Trust's audit is completed. NON-AUDIT SERVICES The following tables show the amount of fees that PricewaterhouseCoopers LLP billed during the Trust's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that PricewaterhouseCoopers LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement relates directly to the Trust's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from PricewaterhouseCoopers LLP about any non-audit services that PricewaterhouseCoopers LLP rendered during the Trust's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PricewaterhouseCoopers LLP's independence.
Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Total Non-Audit Fees Providers (engagements billed to Adviser and related directly to the Affiliated Fund Service Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other June 30, 2006 Billed to Trust reporting of the Trust) engagements) Total - ----------------------------------- -------------------- ------------------------ ----------------------- ------ Name of Series Balanced Stock and Bond Fund 932 17,500 0 18,432 Balanced Municipal and Stock Fund 932 17,500 0 18,432 Large Cap Value Fund 932 17,500 0 18,432 NWQ Multi-Cap Value Fund 932 17,500 0 18,432 NWQ Global Value Fund 1,319 17,500 0 18,819 NWQ Small-Cap Value Fund 1,703 17,500 0 19,203 Tradewinds Value Opportunities Fund 2,123 17,500 0 19,623 -------------------- ------------------------ ----------------------- ------ Total $ 8,873
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax Fees" billed to Adviser in their respective amounts from the previous table.
Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Total Non-Audit Fees Providers (engagements billed to Adviser and related directly to the Affiliated Fund Service Fiscal Year Ended Total Non-Audit Fees operations and financial Providers (all other June 30, 2005 Billed to Trust reporting of the Trust)/1/ engagements) Total - ----------------------------------- -------------------- --------------------------- ----------------------- ------ Name of Series Balanced Stock and Bond Fund 269 15,750 0 16,019 Balanced Municipal and Stock Fund 368 15,750 0 16,118 Large Cap Value Fund 2,324 15,750 0 18,074 NWQ Multi-Cap Value Fund 731 15,750 0 16,481 NWQ Global Value Fund 0 15,750 0 15,750 NWQ Small-Cap Value Fund 0 15,750 0 15,750 Tradewinds Value Opportunities Fund 0 15,750 0 15,750 -------------------- --------------------------- ----------------------- ------ Total $ 3,692
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax Fees" billed to Adviser in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Trust by the Trust's independent accountants and (ii) all audit and non-audit services to be performed by the Trust's independent accountants for the Affiliated Fund Service Providers with respect to the operations and financial reporting of the Trust. Regarding tax and research projects conducted by the independent accountants for the Trust and Affiliated Fund Service Providers (with respect to operations and financial reports of the Trust) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee Chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable to this registrant. ITEM 6. SCHEDULE OF INVESTMENTS See Portfolio of Investments in Item 1 ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS Not applicable to this registrant. 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 second fiscal quarter of 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. 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 because the code is posted on registrant's website at www.nuveen.com/mf and there were no amendments during the period covered by this report. (To view the code, click on the Investors Resources drop down menu box, click on Fund governance and then Code of Conduct.) (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: 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 to this registrant. (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. 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 Investment Trust -------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ------------------------------------------- Jessica R. Droeger Vice President and Secretary Date September 8, 2006 ---------------------------------------------------------------- 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 September 8, 2006 ---------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date September 8, 2006 ---------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.10.A.1 2 dex9910a1.txt CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT EX-99.CERT CERTIFICATIONS I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Investment Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 8, 2006 -------------------- /s/ Gifford R. Zimmerman ----------------------------- Chief Administrative Officer (principal executive officer) I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Investment Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 8, 2006 -------------------- /s/ Stephen D. Foy ----------------------------- Vice President and Controller (principal financial officer) EX-10.A.2 3 dex10a2.txt CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT EX-99.906CERT Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Investment Trust ("the Fund"), certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended June 30, 2006 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: September 8, 2006 -------------------- /s/ Gifford R. Zimmerman -------------------------- Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy ------------------ Vice President and Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----