Nuveen Investments Closed-End Funds |
||
Semi-Annual Report December 31, 2010 |
||
Nuveen Tax-Advantaged Floating Rate Fund JFP |
Chairmans Letter to Shareholders
|
4 | |
Portfolio Managers Comments
|
5 | |
Common Share Distribution and Share Price Information
|
8 | |
Performance Overview
|
9 | |
Shareholder Meeting Report
|
10 | |
Portfolio of Investments
|
11 | |
Statement of Assets & Liabilities
|
13 | |
Statement of Operations
|
14 | |
Statement of Changes in Net Assets
|
15 | |
Statement of Cash Flows
|
16 | |
Financial Highlights
|
17 | |
Notes to Financial Statements
|
20 | |
Reinvest Automatically Easily and Conveniently
|
27 | |
Glossary of Terms Used in this Report
|
29 | |
Other Useful Information
|
31 |
4
|
Nuveen Investments | |
Nuveen Investments
|
5 | |
6-Month | 1-Year | 5-Year | ||||
JFP
|
3.52% | 10.84% | 23.82% | |||
Merrill Lynch Adjustable Rate Preferred
Index1
|
12.42% | 2.86% | 7.70% | |||
Barclays Capital U.S. Aggregate Bond
Index2
|
1.16% | 6.56% | 5.80% | |||
1 | The Merrill Lynch Adjustable Rate Preferred Index is an unmanaged index composed of dollar-denominated investment-grade preferred securities, predominantly from larger issuers. The Fund may invest a substantial portion of its assets in below-investment-grade securities, often from smaller issuers. Index returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in an index. |
2 | The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index that includes all investment-grade, publicly issued, fixed-rate, dollar denominated, nonconvertible debt issues and commercial mortgage-backed securities with maturities of at least one year and outstanding par values of $150 million or more. Index returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in an index. |
6
|
Nuveen Investments | |
Nuveen Investments
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7 | |
8
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Nuveen Investments | |
JFP Performance OVERVIEW |
Nuveen
Tax-Advantaged Floating Rate Fund |
||
as of December 31, 2010 |
Fund Snapshot | ||
Common Share Price | $2.18 | |
Common Share Net Asset Value (NAV) | $2.26 | |
Premium/(Discount) to NAV | -3.54% | |
Market Yield1 | 8.26% | |
Net Assets Applicable to Common Shares ($000) |
$31,547 | |
Average Annual Total Return |
||||
(Inception 3/28/05) | ||||
On Share Price | On NAV | |||
6-Month (Cumulative) | -10.95% | -3.52% | ||
1-Year | 9.91% | 10.84% | ||
5-Year | -21.75% | -23.82% | ||
Since Inception | -21.31% | -20.61% | ||
Portfolio Composition |
||
(as a % of total investments)2 | ||
Commercial Banks | 65.0% | |
Capital Markets | 9.0% | |
Insurance | 6.5% | |
Thrifts & Mortgage Finance | 0.5% | |
Diversified Financial Services | 0.4% | |
Short-Term Investments | 18.6% | |
* | 52.7% of total Preferred Securities are invested in Middle Market Banks. |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within the Funds Performance Overview Page. | |
1 | Market Yield is based on the Funds current annualized monthly distribution divided by the Funds current market price. The Funds monthly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the fiscal year the Funds cumulative net ordinary income and net realized gains are less than the amount of the Funds distributions, a return of capital for tax purposes. |
2 | Holdings are subject to change. |
Nuveen Investments
|
9 | |
JFP | ||
Approval of the Board Members was reached as follows: | ||
Common shares | ||
William C. Hunter
|
||
For
|
12,603,158 | |
Withhold
|
462,997 | |
Total
|
13,066,155 | |
Judith M. Stockdale
|
||
For
|
12,546,305 | |
Withhold
|
519,850 | |
Total
|
13,066,155 | |
Carole E. Stone
|
||
For
|
12,590,635 | |
Withhold
|
475,520 | |
Total
|
13,066,155 | |
10
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Nuveen Investments | |
JFP
|
Nuveen Tax-Advantaged Floating
Rate Fund Portfolio of Investments |
||||
December 31, 2010 (Unaudited) |
Shares | Description (1) | Coupon | Ratings (2) | Value | ||||||||||||||||
Preferred Securities 73.3% (74.3% of Total
Investments)
|
||||||||||||||||||||
Capital Markets 8.9%
|
||||||||||||||||||||
3,600 |
Deutsche Bank Contingent Capital Trust III
|
7.600% | BBB | $ | 91,548 | |||||||||||||||
65,800 |
Goldman Sachs Group Inc.
|
4.000% | (5) | Baa2 | 1,416,016 | |||||||||||||||
67,700 |
Morgan Stanley, Series 2006A
|
4.000% | (5) | BB+ | 1,305,256 | |||||||||||||||
Total Capital Markets
|
2,812,820 | |||||||||||||||||||
Commercial Banks 59.1%
|
||||||||||||||||||||
9,000 |
ABN AMRO North America Capital Funding, 144A
|
6.968% | (5) | BB | 5,464,688 | |||||||||||||||
7,000 |
Barclays Bank PLC
|
8.125% | A | 179,900 | ||||||||||||||||
7,000 |
City National Bancshares Corporation, Series F,
(MMB), (3), (4)
|
8.533% | (5) | N/R | 118,245 | |||||||||||||||
10,000 |
Elmira Savings Bank, 144A, (MMB), (3), (4)
|
8.998% | (5) | N/R | 8,297,316 | |||||||||||||||
10,000 |
First Bank of Oak Park Corporation, Series 2005A, 144A,
(MMB), (4)
|
3.052% | (5) | N/R | 47,000 | |||||||||||||||
41,300 |
HSBC USA Inc.
|
4.500% | (5) | A | 1,025,066 | |||||||||||||||
5,000 |
MidCarolina Financial Corporation, Series 144A,
(MMB), (3), (4)
|
8.342% | (5) | N/R | 2,497,510 | |||||||||||||||
10,000 |
PedCor Bancorp., 144A, (MMB), (3), (4)
|
4.009% | (5) | N/R | 494,436 | |||||||||||||||
5,000 |
Pedcor Financial Bancorp., 144A, (MMB), (3), (4)
|
4.008% | (5) | N/R | 230,883 | |||||||||||||||
5,000 |
Regent Bancorp Inc., Series A, 144A,
(MMB), (3), (4)
|
8.481% | (5) | N/R | 84,905 | |||||||||||||||
10,000 |
Rogers Bancshares Inc., 144A Series A,
(MMB), (3), (4)
|
4.252% | (5) | N/R | 135,000 | |||||||||||||||
10,000 |
Shorebank Corporation, Series 144A,
(MMB), (3), (4)
|
4.090% | (5) | N/R | 47,000 | |||||||||||||||
700 |
SunTrust Bank Inc.
|
4.000% | (5) | Ba1 | 13,951 | |||||||||||||||
10,000 |
Vineyard National Bancorp, Series C, 144A,
(MMB), (3), (4)
|
4.089% | (5) | N/R | 2,200 | |||||||||||||||
Total Commercial Banks
|
18,638,100 | |||||||||||||||||||
Diversified Financial Services 0.4%
|
||||||||||||||||||||
10,000 |
Blossman Bancshares, Inc., 144A, (MMB), (3), (4)
|
8.730% | (5) | N/R | 110,625 | |||||||||||||||
700 |
Citigroup Capital XIII
|
7.875% | (5) | BB+ | 18,837 | |||||||||||||||
Total Diversified Financial Services
|
129,462 | |||||||||||||||||||
Insurance 4.5%
|
||||||||||||||||||||
1,500 |
Zurich RegCaPS Funding Trust VI, Series 144A
|
0.996% | (5) | Baa1 | 1,422,656 | |||||||||||||||
Thrifts & Mortgage Finance 0.4%
|
||||||||||||||||||||
5,000 |
RMG Capital Corporation, 144A, (MMB), (3), (4)
|
4.253% | (5) | N/R | 135,902 | |||||||||||||||
Total Preferred Securities (cost $114,529,950)
|
23,138,940 | |||||||||||||||||||
|
||||||||||||||||||||
Principal |
||||||||||||||||||||
Amount (000)/ |
||||||||||||||||||||
Shares | Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Capital Preferred Securities 7.1% (7.1% of
Total Investments)
|
||||||||||||||||||||
Commercial Banks 5.0%
|
||||||||||||||||||||
2 |
U.S. Bancorp
|
7.189% | (5) | 4/15/11 | A3 | $ | 1,580,250 | |||||||||||||
Insurance 2.0%
|
||||||||||||||||||||
1,000 |
Aegon N.V. Perpetual Capital Securities
|
2.628% | (5) | 7/15/49 | BBB | 616,050 | ||||||||||||||
Thrifts & Mortgage Finance 0.1%
|
||||||||||||||||||||
5,322 |
MM Community Funding Trust XVIII Limited, Class D, (3), (4)
|
2.103% | (5) | 12/26/39 | N/R | 26,611 | ||||||||||||||
Total Capital Preferred Securities (cost $7,123,232)
|
2,222,911 | |||||||||||||||||||
|
||||||||||||||||||||
Principal |
||||||||||||||||||||
Amount (000) | Description (1) | Coupon | Maturity | Value | ||||||||||||||||
Short-Term Investments 18.3% (18.6% of Total
Investments)
|
||||||||||||||||||||
$ | 5,775 |
Repurchase Agreement with Fixed Income Clearing Corporation,
dated 12/31/10, repurchase price $5,774,949, collateralized by
$5,585,000 U.S. Treasury Notes, 3.625%, due 8/15/19, value
$5,892,175
|
0.040% | 1/03/11 | $ | 5,774,930 | ||||||||||||||
Total Short-Term Investments (cost $5,774,930)
|
5,774,930 | |||||||||||||||||||
Total Investments (cost $127,428,111) 98.7%
|
31,136,781 | |||||||||||||||||||
Other Assets Less Liabilities 1.3%
|
410,082 | |||||||||||||||||||
Net Assets 100%
|
$ | 31,546,863 | ||||||||||||||||||
Nuveen Investments
|
11 | |
JFP
|
Nuveen Tax-Advantaged Floating Rate Fund
(continued) Portfolio of Investments December 31, 2010 (Unaudited) |
For Fund portfolio compliance purposes, the Funds industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as definded by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. | ||||||
(1) | All percentages shown in the Portfolio of Investments are based on net assets. | |||||
(2) | Ratings: Using the highest of Standard & Poors Group (Standard & Poors), Moodys Investor Service, Inc. (Moodys) or Fitch, Inc. (Fitch) rating. Ratings below BBB by Standard & Poors, Baa by Moodys or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||||
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. | |||||
(4) | For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 1 General Information and Significant Accounting Policies, Investment Valuation for more information. | |||||
(5) | Security has a floating rate coupon, which is periodically reset based on a fixed percentage rate above a predetermined index or benchmark. The coupon rate disclosed is that in effect at the end of the reporting period. | |||||
N/R | Not rated. | |||||
(MMB) | Middle Market Bank. | |||||
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. |
12
|
Nuveen Investments | |
|
Statement of Assets & Liabilities |
||||
December 31, 2010 (Unaudited) |
Assets
|
||||
Long-term investments, at value (cost $121,653,182)
|
$ | 25,361,851 | ||
Short-term investments (at cost, which approximates value)
|
5,774,930 | |||
Cash
|
286 | |||
Receivables:
|
||||
Dividends
|
412,576 | |||
Interest
|
5,553 | |||
Investments sold
|
49,043 | |||
Other assets
|
23,170 | |||
Total assets
|
31,627,409 | |||
Liabilities
|
||||
Payable for investments purchased
|
14,135 | |||
Other accrued expenses
|
66,411 | |||
Total liabilities
|
80,546 | |||
Net assets applicable to Common shares
|
$ | 31,546,863 | ||
Common shares outstanding
|
13,977,245 | |||
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding)
|
$ | 2.26 | ||
Net assets applicable to Common shares consist of:
|
||||
Common shares, $.01 par value per share
|
$ | 139,772 | ||
Paid-in surplus
|
196,145,645 | |||
Undistributed (Over-distribution of) net investment income
|
(193,478 | ) | ||
Accumulated net realized gain (loss)
|
(68,253,745 | ) | ||
Net unrealized appreciation (depreciation)
|
(96,291,331 | ) | ||
Net assets applicable to Common shares
|
$ | 31,546,863 | ||
Authorized shares:
|
||||
Common
|
Unlimited | |||
FundPreferred
|
Unlimited | |||
Nuveen Investments
|
13 | |
|
Statement of Operations |
||||
Six Months Ended December 31, 2010 (Unaudited) |
Investment Income
|
$ | 1,403,440 | ||
Expenses
|
||||
Management fees
|
152,267 | |||
Shareholders servicing agent fees and expenses
|
126 | |||
Custodians fees and expenses
|
4,577 | |||
Professional fees
|
69,201 | |||
Shareholders reports printing and mailing
expenses
|
21,024 | |||
Stock exchange listing fees
|
4,582 | |||
Investor relations expense
|
47,450 | |||
Other expenses
|
399 | |||
Total expenses before custodian fee credit and expense
reimbursement
|
299,626 | |||
Custodian fee credit
|
(26 | ) | ||
Expense reimbursement
|
(152,267 | ) | ||
Net expenses
|
147,333 | |||
Net investment income
|
1,256,107 | |||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) from investments
|
(13,089,115 | ) | ||
Change in net unrealized appreciation (depreciation) of
investments
|
10,647,724 | |||
Net realized and unrealized gain (loss)
|
(2,441,391 | ) | ||
Net increase (decrease) in net assets applicable to Common
shares from operations
|
$ | (1,185,284 | ) | |
14
|
Nuveen Investments | |
|
Statement of Changes in Net Assets (Unaudited) |
Six Months |
||||||||
Ended |
Year Ended |
|||||||
12/31/10 | 6/30/10 | |||||||
Operations
|
||||||||
Net investment income
|
$ | 1,256,107 | $ | 2,864,766 | ||||
Net realized gain (loss) from investments
|
(13,089,115 | ) | (1,121,370 | ) | ||||
Change in net unrealized appreciation (depreciation) of
investments
|
10,647,724 | (4,899,990 | ) | |||||
Net increase (decrease) in net assets applicable to Common
shares from operations
|
(1,185,284 | ) | (3,156,594 | ) | ||||
Distributions to Common Shareholders
|
||||||||
From and in excess of net investment income
|
(1,256,483 | ) | | |||||
From net investment income
|
| (2,578,379 | ) | |||||
Return of capital
|
| (609,498 | ) | |||||
Decrease in net assets applicable to Common shares from
distributions to Common shareholders
|
(1,256,483 | ) | (3,187,877 | ) | ||||
Capital Share Transactions
|
||||||||
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions
|
94,997 | 106,268 | ||||||
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions
|
94,997 | 106,268 | ||||||
Net increase (decrease) in net assets applicable to Common shares
|
(2,346,770 | ) | (6,238,203 | ) | ||||
Net assets applicable to Common shares at the beginning of period
|
33,893,633 | 40,131,836 | ||||||
Net assets applicable to Common shares at the end of period
|
$ | 31,546,863 | $ | 33,893,633 | ||||
Undistributed (Over-distribution of) net investment income at
the end of period
|
$ | (193,478 | ) | $ | (193,102 | ) | ||
Nuveen Investments
|
15 | |
|
Statement of Cash Flows |
||||
Six Months Ended December 31, 2010 (Unaudited) |
Cash Flows from Operating Activities:
|
||||
Net Increase (Decrease) in Net Assets Applicable to Common
Shares from Operations
|
$ | (1,185,284 | ) | |
Adjustments to reconcile the net increase (decrease) in net
assets applicable to Common shares from operations to net
cash
provided by (used in) operating activities: |
||||
Purchases of investments
|
(6,665,263 | ) | ||
Proceeds from sales and maturities of investments
|
7,620,723 | |||
Proceeds from (Purchases of) short-term investments, net
|
(641,720 | ) | ||
Amortization (Accretion) of premiums and discounts, net
|
(10 | ) | ||
(Increase) Decrease in receivable for dividends
|
(401,326 | ) | ||
(Increase) Decrease in receivable for interest
|
(5,553 | ) | ||
(Increase) Decrease in receivable for investments sold
|
(49,043 | ) | ||
(Increase) Decrease in other assets
|
3,544 | |||
Increase (Decrease) in payable for investments purchased
|
14,135 | |||
Increase (Decrease) in accrued other liabilities
|
(4,170 | ) | ||
Net realized (gain) loss from investments
|
13,089,115 | |||
Change in net unrealized (appreciation) depreciation of
investments
|
(10,647,724 | ) | ||
Net cash provided by (used in) operating activities
|
1,127,424 | |||
Cash Flows from Financing Activities:
|
||||
Cash distributions paid to Common shareholders
|
(1,354,588 | ) | ||
Net cash provided by (used in) financing activities
|
(1,354,588 | ) | ||
Net Increase (Decrease) in Cash
|
(227,164 | ) | ||
Cash at the beginning of period
|
227,450 | |||
Cash at the End of Period
|
286 | |||
16
|
Nuveen Investments | |
|
Financial Highlights (Unaudited) |
||||
Nuveen Investments
|
17 | |
Financial Highlights (Unaudited) |
|||||
Selected data for a Common share outstanding throughout each period: |
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Offering Costs, |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions |
Fund |
|||||||||||||||||||||||||||||||||||||||||||||||||||
from Net |
Distributions |
Net |
Structuring |
|||||||||||||||||||||||||||||||||||||||||||||||||
Beginning |
Investment |
from Capital |
Investment |
Capital |
Return of |
Fee and |
Ending |
|||||||||||||||||||||||||||||||||||||||||||||
Common |
Net |
Income to |
Gains to |
Income to |
Gains to |
Capital to |
FundPreferred |
Common |
||||||||||||||||||||||||||||||||||||||||||||
Share |
Net |
Realized/ |
FundPreferred |
FundPreferred |
Common |
Common |
Common |
Share |
Share |
Ending |
||||||||||||||||||||||||||||||||||||||||||
Net Asset |
Investment |
Unrealized |
Share- |
Share- |
Share- |
Share- |
Share- |
Underwriting |
Net Asset |
Market |
||||||||||||||||||||||||||||||||||||||||||
Value | Income(a) | Gain (Loss) | holders(b) | holders(b) | Total | holders(i) | holders | holders | Total | Discounts | Value | Value | ||||||||||||||||||||||||||||||||||||||||
Year Ended 6/30: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2011(h) | $ | 2.43 | $ | .09 | $ | (.17 | ) | $ | | $ | | $ | (.08 | ) | $ | (.09 | ) | $ | | $ | | $ | (.09 | ) | $ | | $ | 2.26 | $ | 2.18 | ||||||||||||||||||||||
2010 | 2.89 | .21 | (.44 | ) | | | (.23 | ) | (.19 | ) | | (.04 | ) | (.23 | ) | | 2.43 | 2.54 | ||||||||||||||||||||||||||||||||||
2009 | 7.58 | .51 | (4.55 | ) | (.05 | ) | | (4.09 | ) | (.59 | ) | | (.01 | ) | (.60 | ) | | 2.89 | 3.14 | |||||||||||||||||||||||||||||||||
2008 | 14.66 | 1.24 | (6.98 | ) | (.25 | ) | (.01 | ) | (6.00 | ) | (1.03 | ) | (.05 | ) | | (1.08 | ) | | ** | 7.58 | 7.23 | |||||||||||||||||||||||||||||||
2007(f) | 14.46 | 1.24 | .14 | (.24 | ) | (.02 | ) | 1.12 | (.87 | ) | (.05 | ) | | (.92 | ) | | 14.66 | 14.42 | ||||||||||||||||||||||||||||||||||
Year Ended 7/31: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2006 | 14.12 | 1.10 | .27 | (.23 | ) | | 1.14 | (.80 | ) | | | (.80 | ) | | 14.46 | 13.18 | ||||||||||||||||||||||||||||||||||||
2005(g) | 14.33 | .15 | .02 | (.03 | ) | | .14 | (.20 | ) | | | (.20 | ) | (.15 | ) | 14.12 | 13.42 | |||||||||||||||||||||||||||||||||||
18
|
Nuveen Investments | |
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets |
Ratios to Average Net Assets |
|||||||||||||||||||||||||||||||||||||||||||
Applicable to Common Shares |
Applicable to Common Shares |
|||||||||||||||||||||||||||||||||||||||||||
Total Returns | Before Reimbursement(d) | After Reimbursement(d)(e) | FundPreferred Shares at End of Period | |||||||||||||||||||||||||||||||||||||||||
Based on |
||||||||||||||||||||||||||||||||||||||||||||
Common |
Ending |
|||||||||||||||||||||||||||||||||||||||||||
Share |
Net Assets |
Aggregate |
Liquidation |
|||||||||||||||||||||||||||||||||||||||||
Based on |
Net |
Applicable to |
Net |
Net |
Portfolio |
Amount |
and Market |
Asset |
||||||||||||||||||||||||||||||||||||
Market |
Asset |
Common |
Investment |
Investment |
Turnover |
Outstanding |
Value Per |
Coverage |
||||||||||||||||||||||||||||||||||||
Value(c) | Value(c) | Shares (000) | Expenses | Income | Expenses | Income | Rate | (000) | Share | Per Share | ||||||||||||||||||||||||||||||||||
(10.95 | )% | (3.52 | )% | $ | 31,547 | 1.74 | %* | 6.41 | %* | .86 | %* | 7.29 | %* | 22 | % | $ | | $ | | $ | | |||||||||||||||||||||||
(11.59 | ) | (7.93 | ) | 33,894 | 1.44 | 7.47 | .97 | 7.94 | 2 | | | | ||||||||||||||||||||||||||||||||
(48.08 | ) | (55.30 | ) | 40,132 | 1.61 | 12.00 | 1.21 | 12.40 | | *** | | | | |||||||||||||||||||||||||||||||
(44.63 | ) | (43.04 | ) | 105,103 | 1.54 | 9.81 | 1.09 | 10.26 | 10 | 78,000 | 25,000 | 58,687 | ||||||||||||||||||||||||||||||||
16.84 | 7.98 | 203,128 | 1.44 | * | 8.84 | * | 1.02 | * | 9.26 | * | 28 | 78,000 | 25,000 | 90,105 | ||||||||||||||||||||||||||||||
4.52 | 8.28 | 200,354 | 1.45 | 7.29 | 1.03 | 7.71 | 38 | 78,000 | 25,000 | 89,216 | ||||||||||||||||||||||||||||||||||
(9.24 | ) | (.08 | ) | 195,645 | 1.26 | * | 2.88 | * | .90 | * | 3.25 | * | 19 | 78,000 | 25,000 | 87,707 | ||||||||||||||||||||||||||||
(a) | Per share Net Investment Income is calculated using the average daily shares method. | |
(b) | The amounts shown are based on Common share equivalents. | |
(c) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. | |
Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Funds market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. | ||
(d) | Ratios do not reflect the effect of dividend payments to FundPreferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to FundPreferred shares, where applicable. | |
(e) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian credits earned on the Funds net cash on deposit with the custodian bank, where applicable. | |
(f) | For the eleven months ended June 30, 2007. | |
(g) | For the period March 28, 2005 (commencement of operations) through July 31, 2005. | |
(h) | For the six months ended December 31, 2010. | |
(i) | Represents distributions paid From and in excess of net investment income for the six months ended December 31, 2010. | |
* | Annualized. | |
** | Rounds to less than $.01 per share. | |
*** | Calculates to less than 1%. |
Nuveen Investments
|
19 | |
|
Notes to Financial Statements (Unaudited) |
||||
1. | General Information and Significant Accounting Policies |
| Effective, March 1, 2010, the Adviser agreed to voluntarily waive all management fees effective until further notice. |
| Effective March 19, 2010, the Funds maximum average duration increased from one to 2.5 years. |
| Effective as of the open on Wednesday, March 24, 2010, listing of the Funds Common shares was transferred from the NYSE to the NYSE-Amex exchange. |
20
|
Nuveen Investments | |
Nuveen Investments
|
21 | |
|
Notes to Financial Statements (Unaudited) (continued) |
22
|
Nuveen Investments | |
2. | Fair Value Measurements |
Level 1 | | Quoted prices in active markets for identical securities. | ||
Level 2 | | Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | ||
Level 3 | | Significant unobservable inputs (including managements assumptions in determining the fair value of investments). |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments:
|
||||||||||||||||
Preferred Securities
|
$ | 4,031,737 | $ | 6,906,181 | $ | 12,201,022 | $ | 23,138,940 | ||||||||
Capital Preferred Securities
|
1,580,250 | 616,050 | 26,611 | 2,222,911 | ||||||||||||
Short-Term Investments
|
| 5,774,930 | | 5,774,930 | ||||||||||||
Total
|
$ | 5,611,987 | $ | 13,297,161 | $ | 12,227,633 | $ | 31,136,781 | ||||||||
Level 3 |
||||||||||||
Level 3 |
Capital |
|||||||||||
Preferred |
Preferred |
Level 3 |
||||||||||
Securities | Securities | Total | ||||||||||
Balance at the beginning of period
|
$ | 21,794,928 | $ | 52,626 | $ | 21,847,554 | ||||||
Gains (losses):
|
||||||||||||
Net realized gains (losses)
|
(13,090,551 | ) | | (13,090,551 | ) | |||||||
Net change in unrealized appreciation (depreciation)
|
11,006,093 | (26,611 | ) | 10,979,482 | ||||||||
Purchases at cost
|
| 596 | 596 | |||||||||
Sales at proceeds
|
(7,509,448 | ) | | (7,509,448 | ) | |||||||
Net discounts (premiums)
|
| | | |||||||||
Transfers in to
|
| | | |||||||||
Transfers out of
|
| | | |||||||||
Balance at the end of period
|
$ | 12,201,022 | $ | 26,611 | $ | 12,227,633 | ||||||
Net change in unrealized appreciation (depreciation) during the
period of Level 3 securities held as of
December 31, 2010
|
$ | (4,935,420 | ) | $ | (26,611 | ) | $ | (4,962,031 | ) | |||
3. | Derivative Instruments and Hedging Activities |
Nuveen Investments
|
23 | |
Notes to Financial Statements (Unaudited) (continued) |
4. | Fund Shares |
Six Months |
Year |
|||||||
Ended |
Ended |
|||||||
12/31/10 | 6/30/10 | |||||||
Common shares issued to shareholders due to reinvestment of
distributions
|
38,359 | 40,643 | ||||||
5. | Investment Transactions |
Purchases
|
$ | 6,665,263 | ||
Sales and maturities
|
7,620,723 | |||
6. | Income Tax Information |
Cost of investments
|
$ | 127,428,112 | ||
Gross unrealized:
|
||||
Appreciation
|
$ | 309,615 | ||
Depreciation
|
(96,600,946 | ) | ||
Net unrealized appreciation (depreciation) of investments
|
$ | (96,291,331 | ) | |
Paidin surplus
|
$ | (609,498 | ) | |
Undistributed (overdistribution of) net investment income
|
609,498 | |||
Accumulated net realized gain (loss)
|
| |||
Undistributed net ordinary income*
|
$ | | ||
Undistributed net long-term capital gains
|
| |||
* | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared on June 1, 2010, paid on July 1, 2010. |
Distributions from net ordinary income*
|
$ | 2,864,766 | ||
Distributions from net long-term capital gains
|
| |||
Return of capital
|
609,498 | |||
* | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
24
|
Nuveen Investments | |
Expiration:
|
||||
June 30, 2016
|
$ | 350,745 | ||
June 30, 2017
|
38,341,520 | |||
June 30, 2018
|
16,472,367 | |||
Total
|
$ | 55,164,632 | ||
7. | Management Fees and Other Transactions with Affiliates |
Average Daily Managed Assets* | Fund-Level Fee Rate | |||
For the first $500 million
|
.7000 | % | ||
For the next $500 million
|
.6750 | |||
For the next $500 million
|
.6500 | |||
For the next $500 million
|
.6250 | |||
For managed assets over $2 billion
|
.6000 | |||
Complex-Level Managed Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion
|
.2000 | % | ||
$56 billion
|
.1996 | |||
$57 billion
|
.1989 | |||
$60 billion
|
.1961 | |||
$63 billion
|
.1931 | |||
$66 billion
|
.1900 | |||
$71 billion
|
.1851 | |||
$76 billion
|
.1806 | |||
$80 billion
|
.1773 | |||
$91 billion
|
.1691 | |||
$125 billion
|
.1599 | |||
$200 billion
|
.1505 | |||
$250 billion
|
.1469 | |||
$300 billion
|
.1445 | |||
* | For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trusts issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds that constitute eligible assets. Eligible assets do not include assets attributable to investments in other Nuveen funds and assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Advisers assumption of the management of the former First American Funds effective January 1, 2011. As of December 31, 2010, the complex-level fee rate was .1831%. |
Nuveen Investments
|
25 | |
Notes to Financial Statements (Unaudited) (continued) |
Year Ending |
Year Ending |
|||||||||
March 31, | March 31, | |||||||||
2005 * | .30 | % | 2010 | .30 | % | |||||
2006 | .30 | 2011 | .22 | |||||||
2007 | .30 | 2012 | .14 | |||||||
2008 | .30 | 2013 | .07 | |||||||
2009 | .30 | |||||||||
* | From the commencement of operations. |
26
|
Nuveen Investments | |
Nuveen Investments
|
27 | |
28
|
Nuveen Investments | |
n | Average Annual Total Return: This is a commonly used method to express an investments performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investments actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
n | Current Distribution Rate: Current distribution rate is based on the Funds current annualized monthly distribution divided by the Funds current market price. The Funds monthly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Funds cumulative net ordinary income and net realized gains are less than the amount of the Funds distributions, a tax return of capital. |
n | Net Asset Value (NAV): A Funds NAV per common share is calculated by subtracting the liabilities of the Fund from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. |
Nuveen Investments
|
29 | |
30
|
Nuveen Investments | |
Common Shares |
||||||||||
Repurchased | ||||||||||
|
Nuveen Investments
|
31 | |
Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
(a) | See Portfolio of Investments in Item 1. | ||
(b) | Not applicable. |
(a) | The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants 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 registrants 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 registrants internal control over financial reporting. |
(Registrant) Nuveen Tax-Advantaged Floating Rate Fund |
||||
By (Signature and Title) | /s/ Kevin J. McCarthy | |||
Kevin J. McCarthy | ||||
Vice President and Secretary | ||||
By (Signature and Title) | /s/ Gifford R. Zimmerman | |||
Gifford R. Zimmerman | ||||
Chief Administrative Officer (principal executive officer) |
||||
By (Signature and Title) | /s/ Stephen D. Foy | |||
Stephen D. Foy | ||||
Vice President and Controller (principal financial officer) |
||||
(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 registrants 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 registrants 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 registrants internal control over financial reporting; and |
(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 registrants 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 registrants internal control over financial reporting. |
Date: March 11, 2011 | /s/ Gifford R. Zimmerman | |||
Gifford R. Zimmerman | ||||
Chief Administrative Officer (principal executive officer) |
(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 registrants 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 registrants 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 registrants internal control over financial reporting; and |
(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 registrants 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 registrants internal control over financial reporting. |
Date: March 11, 2011 | /s/ Stephen D. Foy | |||
Stephen D. Foy | ||||
Vice President and Controller (principal financial officer) |
1. | The Form N-CSR of the Fund for the period ended December 31, 2010 (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. |
/s/ Gifford R. Zimmerman | ||||
Gifford R. Zimmerman | ||||
Chief Administrative Officer (principal executive officer) |
||||
/s/ Stephen D. Foy | ||||
Stephen D. Foy | ||||
Vice President, Controller (principal financial officer) |
||||
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