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 - 21791
Global Income & Currency Fund Inc.
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrants telephone number, including area code: (312) 917-7700
Date of fiscal year end: December 31
Date of reporting period: December 31, 2010
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 policymaking 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.
Closed-End Funds
Nuveen Investments
Closed-End Funds
Seeking to provide a high level of after-tax total return.
Annual Report
December 31, 2010
NASDAQ
Premium QQQX |
Dow 30SM Premium & DPD |
Dow 30SM Enhanced DPO |
Global Income
& GCF |
INVESTMENT ADVISER NAME CHANGE
Effective January 1, 2011, Nuveen Asset Management, the Funds investment adviser, changed its name to Nuveen Fund Advisors, Inc. (Nuveen Fund Advisors). Concurrently, Nuveen Fund Advisors formed a wholly-owned subsidiary, Nuveen Asset Management, LLC, to house its portfolio management capabilities.
NUVEEN INVESTMENTS COMPLETES STRATEGIC COMBINATION WITH FAF ADVISORS
On December 31, 2010, Nuveen Investments completed the strategic combination between Nuveen Asset Management, LLC, the largest investment affiliate of Nuveen Investments, and FAF Advisors. As part of this transaction, U.S. Bancorp the parent of FAF Advisors received cash consideration and a 9.5% stake in Nuveen Investments in exchange for the long term investment business of FAF Advisors, including investment-management responsibilities for the non-money market mutual funds of the First American Funds family.
The approximately $27 billion of mutual fund and institutional assets managed by FAF Advisors, along with the investment professionals managing these assets and other key personnel, have become part of Nuveen Asset Management, LLC. With these additions to Nuveen Asset Management, LLC, this affiliate now manages more than $100 billion of assets across a broad range of strategies from municipal and taxable fixed income to traditional and specialized equity investments.
This combination does not affect the investment objectives or strategies of the Funds in this report. Over time, Nuveen Investments expects that the combination will provide even more ways to meet the needs of investors who work with financial advisors and consultants by enhancing the multi-boutique model of Nuveen Investments, which also includes highly respected investment teams at HydePark, NWQ Investment Management, Santa Barbara Asset Management, Symphony Asset Management, Tradewinds Global Investors and Winslow Capital. Nuveen Investments managed approximately $195 billion of assets as of December 31, 2010.
Table of Contents
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Letter to Shareholders
4 | Nuveen Investments |
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Any reference to credit ratings for portfolio holdings denotes the highest rating assigned by a Nationally Recognized Statistical Rating Organization (NRSRO) such as Standard & Poors, Moodys or Fitch. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below investment grade. Holdings and ratings may change over time.
NASDAQ Premium Income & Growth Fund Inc. (QQQX) Dow 30SM Premium & Dividend Income Fund Inc. (DPD) Dow 30SM Enhanced Premium & Income Fund Inc. (DPO) Global Income & Currency Fund Inc. (GCF)
The NASDAQ Premium Income & Growth Fund Inc. (QQQX), Dow 30SM Premium & Dividend Income Fund Inc. (DPD), and Dow 30SM Enhanced Premium & Income Fund Inc. (DPO) feature portfolio management by HydePark Group, LLC, a wholly-owned subsidiary of Nuveen Investments. Over this period, Rob Guttschow and John Gambla served as co-portfolio managers for the Funds. In January 2011, after the close of this reporting period, management of these Funds transferred to Keith Hembre, David Friar and James Colon.
The Global Income & Currency Fund (GCF) is managed by Nuveen Asset Management LLC, a wholly-owned subsidiary of Nuveen Fund Advisors, Inc. Steven Lee served as a portfolio manager for the Fund during this period. In January 2011, he was joined by Timothy Palmer.
Here the portfolio managers talk about general economic and market conditions, their management strategies and the performance of the Funds for the twelve months ended December 31, 2010.
What were the general market conditions during the twelve-month reporting period ending December 31, 2010?
During this reporting period, the U.S. economy remained under considerable stress, and both the Federal Reserve and the federal government continued their efforts to improve the overall economic environment. For its part, the Fed held the benchmark fed funds rate in a target range of zero to 0.25% after cutting it to this record low level in December 2008. At its September 2010 meeting, the central bank renewed its commitment to keep the fed funds rate at exceptionally low levels for an extended period. The Fed also stated that it was prepared to take further policy actions as needed to support economic recovery. The federal government continued to focus on implementing the economic stimulus package passed early in 2009 that was intended to provide job creation, tax relief, fiscal assistance to state and local governments, and expand unemployment benefits and other federal social welfare programs. Cognizant of the fragility of the financial system, in the fall of 2010 the Federal Reserve announced a second round of quantitative easing designed to help stimulate increased economic activity.
Recently, nearly all U.S. indicators of production, spending, and labor market activity have pointed toward an acceleration in economic growth. At the same time, inflation has remained relatively tame, as the Consumer Price Index rose just 1.5% year-over-year as of December 31, 2010. However, unemployment remained at historically high levels. As of December 2010, the national unemployment rate was 9.4%. In addition, the housing
Nuveen Investments | 5 |
market continued to show signs of weakness with the average home price in the Standard & Poors/Case-Shiller Index of 20 large metro areas falling 1.6% over the twelve months ended November 2010 (the latest available figures at the time this report was prepared).
Overall, the U.S. stock market performed well during the twelve-month period, with the Dow Jones Industrial Average (DJIA) climbing 14%, the S&P 500 Index advancing 15% and the NASDAQ-100 Index gaining 19%. Looking overseas, Europes central bankers announced a $1 trillion bailout package to contain the situation with Greece and possibly help Portugal, Spain, Italy and Ireland. Ireland subsequently applied for a bailout to rescue its banking system.
Over this period, what key strategies were used to manage the Funds?
QQQX seeks to provide high current income and capital appreciation. The Fund pursues these objectives principally through a two-part strategy. First, the Fund will invest, under normal circumstances, substantially all of its net assets in a portfolio designed to closely track the performance, before fees and expenses, of the NASDAQ-100 Index. This portfolio may include stocks which are members of the Index, stocks which are not members of the Index, and other investments that have economic characteristics similar to the securities that constitute the Index. These other investments may include futures, forwards, swaps, option contracts based on the Index and options on futures and swaps, as well as investment funds or baskets of securities with a composition similar to all or a portion of the Index. Second, in attempting to generate premium income and reduce the volatility of the Funds return, with the intent of improving the Funds risk-adjusted return, the Fund will write (sell) call options on the Index which are fully collateralized by the Funds investment portfolio. Under normal circumstances, the notional value of the written options is not expected to exceed 50% of the Funds net assets.
DPDs investment objective also is to provide a high level of current income, with a secondary objective of capital appreciation. The Fund seeks to achieve this principally through a two-part strategy. First, the Fund will invest, under normal circumstances, substantially all of its net assets in the 30 stocks included in the DJIA in approximately the amounts such stocks are weighted in the DJIA and/or in other securities or financial instruments that are intended to correlate with the DJIA. Second, the Fund will write (sell) covered call options on some or all of the stocks or other instruments in its portfolio. Under normal circumstances, the notional value of the written options is expected to equal approximately 40%-60% of the Funds net assets.
Similarly, DPO seeks to provide a high level of premium and dividend income and the potential for capital appreciation. Under normal circumstances, the Fund will purchase all 30 stocks included in the DJIA, weighted in approximately the same proportions as in the DJIA. The Fund also will purchase other securities or financial instruments, primarily swap contracts, designed to provide additional investment exposure (i.e., leverage) to the return of the Funds equity holdings. The Fund also will engage in certain option strategies, primarily consisting of writing (selling) covered call options on some or all of the DJIA stocks. The options will be written on approximately 40%-60% of the Funds DJIA exposure at the time they are written.
6 | Nuveen Investments |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares.
For additional information, see the individual Performance Overview page for your Fund in this report.
1. | The since inception date for QQQX is 1/30/07, for DPD is 4/29/05, for DPO is 5/30/07 and for GCF is 4/28/06. |
2. | The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. Returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in this index. |
3. | The Dow Jones Industrial Average tracks the performance of 30 large cap companies. Returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in this average. |
4. | The London Inter-Bank Offered Rate (LIBOR) is the rate that contributor banks in London offer each other for three-month inter-bank deposits. The rate does not reflect sales charges or management fees. It is not possible to investor directly in LIBOR. |
GCF seeks to provide current income while also seeking total returns. The Fund seeks to achieve its investment objective by constructing and actively managing a portfolio of investments that provides long and short exposure to selected foreign currencies. The Funds portfolio generally is comprised of short-term fixed-income securities and investments in other instruments that provide long and short exposure to foreign currencies.
Eligible foreign currencies are selected from countries that, in our opinion, have a well developed capital market infrastructure. This universe is then screened to remove any currencies whose value is determined by reference to other currencies (i.e. pegged currencies) and currencies that in our opinion do not have sufficient trading liquidity. Next, we analyze political and economic factors to eliminate currencies we believe to be too volatile or otherwise undesirable for investment at that time.
The remaining currencies then are ranked from the highest yielding to the lowest yielding based upon the yield of local short-term government obligations denominated in that countrys currency, adjusted for local inflation. The Fund then invests in instruments providing long exposure to the highest yielding currencies and investments in instruments providing short exposure to the lowest yielding currencies. In making these investments that provide long and short exposure, the Fund invests by buying or selling foreign sovereign debt securities, or alternatively through the use of currency contracts that provide exposure to the respective currencies.
In addition, we employ a proprietary risk reduction methodology that seeks to improve the Funds risk-adjusted returns. The proprietary risk reduction methodology consists of two quantitative models, one which focuses on the risks inherent in individual currencies and one which evaluates overall currency risk premiums. These models are intended to help us reduce or eliminate exposure to certain currency investments when it appears, in our opinion, that market conditions or trends will cause their value to decline significantly.
How did the Funds perform over this period?
The performance of Funds, as well as comparative indexes or rates, is presented in the accompanying table.
Average Annual Total Returns on Net Asset Value
For periods ended 12/31/10
Fund | 1-Year | 5-Year | Since Inception1 | |||||||||
QQQX |
14.05% | N/A | 4.59% | |||||||||
NASDAQ-100 Index2 |
19.22% | N/A | 6.00% | |||||||||
DPD |
13.03% | 4.84% | 5.29% | |||||||||
Dow Jones Industrial Average3 |
14.06% | 4.31% | -0.47% | |||||||||
DPO |
16.67% | N/A | -1.19% | |||||||||
Dow Jones Industrial Average3 |
14.06% | N/A | 4.42% | |||||||||
GCF |
6.49% | N/A | 3.48% | |||||||||
3-Month LIBOR4 |
0.33% | N/A | 3.00% |
Nuveen Investments | 7 |
For the twelve-month period ending December 31 2010, QQQX and DPD underperformed their respective comparisons, while DPO and GCF outperformed their comparatives.
In QQQX we sought to dampen the volatility of the overall portfolio by selling call options on a broad equity index, based on a percentage of the Funds net asset value, while investing in a portfolio of equities to enhance returns while foregoing some upside potential. While this strategy provided incremental cash flow to the Fund, it effectively limited the ability of the Fund to participate fully in the significant market rally that occurred over the course of the period. This was the primary factor affecting the Funds underperformance relative to the index.
As the equity portfolio of DPD is constructed to substantially replicate the securities in the DJIA, its performance is expected to be very similar to this measure. As described previously, the Fund seeks to reduce the volatility of the overall portfolio by selling call options on securities held in the portfolio to enhance returns while foregoing some upside potential. The options sold provide incremental cash flow in exchange for giving up the potential upside of each stock above the options strike. The downside is buffered by the amount of the cash flow premium received. In flat or declining markets, the option premium can enhance total returns relative to the DJIA. In rising markets, such as we experienced in 2010, the options can hurt the Funds total return relative to the DJIA.
DPO also sought to reduce the volatility of the overall portfolio by selling call options on a pro-rata percentage of each name held in the portfolio to enhance returns while foregoing some upside potential. The options sold provided incremental cash flow in exchange for giving up the potential upside of each stock above the options strike. However, this Fund also purchased other securities or financial instruments, primarily swap contracts, designed to provide additional investment exposure. The net effect was to leverage the Funds equity holdings in a rising equity price environment, positively impacting the Funds performance.
As noted, GCF employed a long/short currency strategy during the period buying currencies expected to appreciate and selling currencies expected to depreciate. The Fund was able to benefit from the volatility resulting from the European sovereign debt crisis. We shorted the euro and Swiss franc which contributed to our outperformance relative to 3-month LIBOR.
Our long positions in the Brazilian real and Mexican peso enhanced performance as well. Both countries have high yielding currencies with strong fundamentals. In particular, Mexico had attractive valuations in 2010. Also, our stop loss methodology based on momentum indicators gave us warning early enough to get out of our long positions when the market became risk averse.
Detracting somewhat from performance was our long position in the Hungarian forint, which was hurt by its indirect euro exposure. Also negatively impacting performance was our short position in the Canadian dollar.
8 | Nuveen Investments |
Distribution and Share Price Information
The following information regarding your Funds distributions is current as of December 31, 2010, and likely will vary over time based on the Funds investment activities and portfolio investment value changes.
During the twelve-month reporting period, QQQX reduced its quarterly distribution to shareholders during March and DPD and DPO reduced their monthly distributions to shareholders during January. GCF did not make any changes to its quarterly distributions to shareholders. Effective January 1, 2011, DPD and DPO will begin paying distributions to shareholders quarterly, with their first quarterly distributions payable to shareholders during April 2011. Some of the important factors affecting these the amount and composition of these distributions are summarized below.
Each Fund has a managed distribution program. The goal of this program is to provide shareholders with relatively consistent and predictable cash flow by systematically converting the Funds expected long-term return potential into regular distributions. As a result, regular distributions throughout the year are likely to include a portion of expected long-term gains (both realized and unrealized), along with net investment income.
Important points to understand about the managed distribution program are:
| Each Fund seeks to establish a relatively stable distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about a Funds past or future investment performance from its current distribution rate. |
| Actual returns will differ from projected long-term returns (and therefore a Funds distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value. |
| Each distribution is expected to be paid from some or all of the following sources: |
| net investment income (regular interest and dividends), |
| realized capital gains, and |
| unrealized gains, or, in certain cases, a return of principal (non-taxable distributions). |
| A non-taxable distribution is a payment of a portion of a Funds capital. When a Funds returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when a Funds return falls short of distributions, the shortfall will represent a portion of your original principal, unless the shortfall is offset during other time periods over the life of your investment (previous or subsequent) when a Funds total return exceeds distributions. |
| Because distribution source estimates are updated during the year based on a Funds performance and forecast for its current fiscal year (which is the calendar year for each Fund), estimates on the nature of your distributions provided at the time distributions are paid may differ from both the tax information reported to you in your Funds IRS From 1099 statement provided at year end, as well as the ultimate economic sources of distributions over the life of your investment. |
Nuveen Investments | 9 |
The following table provides information regarding each Funds distributions and total return performance for the twelve months ended December 31, 2010. This information is intended to help you better understand whether the Funds returns for the specified time period were sufficient to meet each Funds distributions.
As of 12/31/10 | QQQX | DPD | DPO | GCF | ||||||||||||
Inception date |
1/30/07 | 4/29/05 | 5/30/07 | 4/28/06 | ||||||||||||
Calendar year ended December 31, 2010: |
||||||||||||||||
Per share distribution: |
||||||||||||||||
From net investment income |
$ | 0.00 | $ | 0.35 | $ | 0.63 | $ | 0.81 | ||||||||
From long-term capital gains |
0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
From short-term capital gains |
0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Return of capital |
1.26 | 0.89 | 0.39 | 0.00 | ||||||||||||
Total per share distribution |
$ | 1.26 | $ | 1.24 | $ | 1.02 | $ | 0.81 | ||||||||
Distribution rate on NAV |
8.59 | % | 8.62 | % | 9.33 | % | 5.08 | % | ||||||||
Average annual total returns: |
||||||||||||||||
1-Year on NAV |
14.05 | % | 13.03 | % | 16.67 | % | 6.49 | % | ||||||||
5-Year on NAV |
N/A | 4.84 | % | N/A | N/A | |||||||||||
Since inception on NAV |
4.59 | % | 5.29 | % | -1.19 | % | 3.48 | % |
Share Repurchases and Share Price Information
During the twelve-month reporting period, the Funds Board of Directors approved a share repurchase program for QQQX, DPD and DPO. GCF, as an interval Fund, is required to repurchase, at least annually, 5% to 25% of its outstanding shares at NAV.
During the twelve-month reporting period, GCF repurchased 626,957 shares at NAV.
QQQX, DPD and DPO have not repurchased any of their outstanding shares since the inception of their repurchase programs. As of December 31, 2010, GCF has cumulatively repurchased and retired 1,747,321 shares.
At December 31, 2010, the Funds share prices were trading as (+) premiums/(-) discounts relative to their NAVs as shown in the accompanying table.
Fund | 12/31/10 (+) Premium/ (-) Discount |
Twelve-Month (-) Discount |
||||||
QQQX |
-3.89% | -4.19% | ||||||
DPD |
+0.97% | +1.50% | ||||||
DPO |
-5.03% | -1.05% | ||||||
GCF |
-9.28% | -10.21% |
10 | Nuveen Investments |
QQQX OVERVIEW |
NASDAQ Premium Income & Growth Fund Inc.
as of December 31, 2010 |
Nuveen Investments | 11 |
DPD Performance OVERVIEW |
Dow 30SM Premium & Dividend Income Fund Inc.
as of December 31, 2010 |
12 | Nuveen Investments |
DPO Performance OVERVIEW |
Dow 30SM Enhanced Premium & Income Fund Inc.
as of December 31, 2010 |
Nuveen Investments | 13 |
GCF Performance OVERVIEW |
Global Income & Currency Fund Inc.
as of December 31, 2010 |
14 | Nuveen Investments |
QQQX
DPD
DPO
GCF
Shareholder Meeting Report (Unaudited)
A special meeting of shareholders was held in the offices of IQ Investment Advisors LLC on September 8, 2010; at this meeting the shareholders were asked to vote on the election of Board Members, the approval of a new Investment Management Agreement and the approval of a new Investment Sub-advisory Agreement. The meeting for all funds was subsequently adjourned to September 30, 2010; the meeting for QQQX was additionally adjourned to October 22, 2010.
QQQX Common Shares |
DPD Common Shares |
DPO Common Shares |
GCF Common Shares |
|||||||||||||
To approve a new investment management agreement between the |
||||||||||||||||
For |
6,585,579 | 5,249,254 | 10,523,269 | 2,389,445 | ||||||||||||
Against |
288,369 | 199,183 | 443,488 | 160,536 | ||||||||||||
Abstain |
351,683 | 171,445 | 563,743 | 71,380 | ||||||||||||
Uninstructed |
2,052,718 | 472,694 | 2,472,966 | 236,246 | ||||||||||||
Total |
9,278,349 | 6,092,576 | 14,003,466 | 2,857,607 | ||||||||||||
To approve a new investment sub-advisory agreement between |
||||||||||||||||
For |
6,591,697 | 5,236,382 | 10,518,006 | | ||||||||||||
Against |
282,077 | 201,728 | 427,794 | | ||||||||||||
Abstain |
351,857 | 181,772 | 584,700 | | ||||||||||||
Uninstructed |
2,052,718 | 472,694 | 2,472,966 | | ||||||||||||
Total |
9,278,349 | 6,092,576 | 14,003,466 | | ||||||||||||
Approval of the Board Members was reached as follows: |
| |||||||||||||||
John Amboian |
||||||||||||||||
For |
15,962,997 | 10,766,546 | 24,349,170 | 5,282,442 | ||||||||||||
Withhold |
616,927 | 440,167 | 946,805 | 175,046 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 | ||||||||||||
Robert P. Bremner |
||||||||||||||||
For |
15,955,556 | 10,751,875 | 24,363,971 | 5,279,951 | ||||||||||||
Withhold |
624,368 | 454,838 | 932,004 | 177,537 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 | ||||||||||||
Jack B. Evans |
||||||||||||||||
For |
15,950,697 | 10,772,992 | 24,377,117 | 5,282,417 | ||||||||||||
Withhold |
629,227 | 433,721 | 918,858 | 175,071 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 | ||||||||||||
William C. Hunter |
||||||||||||||||
For |
15,967,331 | 10,768,038 | 24,378,626 | 5,281,044 | ||||||||||||
Withhold |
612,593 | 438,675 | 917,349 | 176,444 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 | ||||||||||||
David J. Kundert |
||||||||||||||||
For |
15,957,298 | 10,764,989 | 24,341,957 | 5,281,542 | ||||||||||||
Withhold |
622,626 | 441,724 | 954,018 | 175,946 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 | ||||||||||||
William J. Schneider |
||||||||||||||||
For |
15,968,327 | 10,779,744 | 24,345,338 | 5,282,417 | ||||||||||||
Withhold |
611,597 | 426,969 | 950,637 | 175,071 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 | ||||||||||||
Judith M. Stockdale |
||||||||||||||||
For |
15,968,150 | 10,760,151 | 24,341,336 | 5,281,377 | ||||||||||||
Withhold |
611,774 | 446,562 | 954,639 | 176,111 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 |
Nuveen Investments | 15 |
QQQX Common Shares |
DPD Common Shares |
DPO Common Shares |
GCF Common Shares |
|||||||||||||
Carole E. Stone |
||||||||||||||||
For |
15,959,524 | 10,769,508 | 24,351,536 | 5,280,802 | ||||||||||||
Withhold |
620,400 | 437,205 | 944,439 | 176,686 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 | ||||||||||||
Terence J. Toth |
||||||||||||||||
For |
15,960,312 | 10,766,519 | 24,375,577 | 5,282,417 | ||||||||||||
Withhold |
619,612 | 440,194 | 920,398 | 175,071 | ||||||||||||
Total |
16,579,924 | 11,206,713 | 25,295,975 | 5,457,488 |
16 | Nuveen Investments |
Registered Public Accounting Firm
To the Board of Directors and Shareholders of:
NASDAQ Premium Income & Growth Fund Inc.
Dow 30SM Premium & Dividend Income Fund Inc.
Dow 30SM Enhanced Premium & Income Fund Inc.
Global Income & Currency Fund Inc.
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 NASDAQ Premium Income & Growth Fund Inc., Dow 30SM Premium & Dividend Income Fund Inc., Dow 30SM Enhanced Premium & Income Fund Inc. and Global Income & Currency Fund Inc. (collectively referred to as the Funds) at December 31, 2010, and 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 the two years ended December 31, 2010 and 2009 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 (United States). Those standards 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 December 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights for the periods ended December 31, 2008 and prior, were audited by other independent auditors whose reports, dated February 27, 2009 for NASDAQ Premium Income & Growth Fund Inc., Dow 30SM Premium & Dividend Income Fund Inc., and Dow 30SM Enhanced Premium & Income Fund Inc., and March 13, 2009 for Global Income & Currency Fund Inc., expressed unqualified opinions on those statements.
PricewaterhouseCoopers LLP
Chicago, IL
February 25, 2011
Nuveen Investments | 17 |
QQQX
NASDAQ Premium Income & Growth Fund Inc.
December 31, 2010
Shares | Description (1) | Value | ||||||||||||||||||
Common Stocks 101.2% | ||||||||||||||||||||
Aerospace & Defense 1.7% | ||||||||||||||||||||
8,360 | Boeing Company, (2) |
$ | 545,574 | |||||||||||||||||
10,419 | General Dynamics Corporation |
739,332 | ||||||||||||||||||
18,683 | L-3 Communications Holdings, Inc. |
1,316,965 | ||||||||||||||||||
10,286 | Lockheed Martin Corporation |
719,094 | ||||||||||||||||||
4,449 | Precision Castparts Corporation |
619,345 | ||||||||||||||||||
8,962 | United Technologies Corporation |
705,489 | ||||||||||||||||||
Total Aerospace & Defense |
4,645,799 | |||||||||||||||||||
Auto Components 0.4% | ||||||||||||||||||||
41,030 | Gentex Corporation |
1,212,847 | ||||||||||||||||||
Beverages 0.2% | ||||||||||||||||||||
12,520 | Hansen Natural Corporation |
654,546 | ||||||||||||||||||
Biotechnology 6.8% | ||||||||||||||||||||
85,927 | Amgen Inc., (2) |
4,717,392 | ||||||||||||||||||
60,035 | Biogen Idec Inc. |
4,025,347 | ||||||||||||||||||
54,389 | Celgene Corporation, (2) |
3,216,565 | ||||||||||||||||||
168,034 | Gilead Sciences, Inc. |
6,089,552 | ||||||||||||||||||
25,796 | Incyte Pharmaceuticals Inc. |
427,182 | ||||||||||||||||||
Total Biotechnology |
18,476,038 | |||||||||||||||||||
Capital Markets 1.0% | ||||||||||||||||||||
6,475 | Affiliated Managers Group Inc. |
642,450 | ||||||||||||||||||
43,304 | SEI Investments Company |
1,030,202 | ||||||||||||||||||
17,202 | T. Rowe Price Group Inc. |
1,110,217 | ||||||||||||||||||
Total Capital Markets |
2,782,869 | |||||||||||||||||||
Chemicals 0.2% | ||||||||||||||||||||
17,348 | Methanex Corporation |
527,379 | ||||||||||||||||||
Commercial Services & Supplies 0.4% | ||||||||||||||||||||
14,951 | Rino International Corporation |
60,402 | ||||||||||||||||||
20,254 | Tetra Tech, Inc. |
507,565 | ||||||||||||||||||
6,497 | United Stationers, Inc. |
414,574 | ||||||||||||||||||
Total Commercial Services & Supplies |
982,541 | |||||||||||||||||||
Communications Equipment 10.9% | ||||||||||||||||||||
41,520 | ADTRAN, Inc. |
1,503,439 | ||||||||||||||||||
72,650 | Arris Group Inc. |
815,133 | ||||||||||||||||||
10,874 | Blue Coat Systems Inc. |
324,806 | ||||||||||||||||||
59,467 | Brocade Communications Systems Inc. |
314,580 | ||||||||||||||||||
277,197 | Cisco Systems, Inc. |
5,607,695 | ||||||||||||||||||
35,350 | Interdigital Inc. |
1,471,974 | ||||||||||||||||||
276,344 | QUALCOMM, Inc. |
13,676,265 | ||||||||||||||||||
81,394 | Research In Motion Limited |
4,731,433 | ||||||||||||||||||
137,661 | Tellabs Inc. |
933,342 | ||||||||||||||||||
Total Communications Equipment |
29,378,667 | |||||||||||||||||||
Computers & Peripherals 21.6% | ||||||||||||||||||||
172,484 | Apple, Inc., (2) |
55,636,439 | ||||||||||||||||||
153,341 | Dell Inc. |
2,077,771 | ||||||||||||||||||
25,216 | STEC Inc. |
445,062 | ||||||||||||||||||
20,520 | Xyratex Limited |
334,681 | ||||||||||||||||||
Total Computers & Peripherals |
58,493,953 | |||||||||||||||||||
Consumer Finance 0.6% | ||||||||||||||||||||
36,557 | EZCORP, Inc. |
991,791 | ||||||||||||||||||
11,413 | World Acceptance Corporation |
602,606 | ||||||||||||||||||
Total Consumer Finance |
1,594,397 | |||||||||||||||||||
Containers & Packaging 0.5% | ||||||||||||||||||||
38,265 | Silgan Holdings, Inc. |
1,370,270 | ||||||||||||||||||
Distributors 0.4% | ||||||||||||||||||||
20,543 | LKQ Corporation |
466,737 | ||||||||||||||||||
33,177 | Pool Corporation |
747,810 | ||||||||||||||||||
Total Distributors |
1,214,547 |
18 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||||||||
Diversified Consumer Services 1.0% | ||||||||||||||||||||
45,892 | Career Education Corporation |
$ | 951,341 | |||||||||||||||||
43,421 | Corinthian Colleges Inc. |
226,223 | ||||||||||||||||||
11,811 | ITT Educational Services, Inc. |
752,243 | ||||||||||||||||||
5,277 | Strayer Education Inc. |
803,265 | ||||||||||||||||||
Total Diversified Consumer Services |
2,733,072 | |||||||||||||||||||
Diversified Telecommunication Services 0.6% | ||||||||||||||||||||
38,122 | Neutral Tandem Inc. |
550,482 | ||||||||||||||||||
68,733 | Windstream Corporation |
958,138 | ||||||||||||||||||
Total Diversified Telecommunication Services |
1,508,620 | |||||||||||||||||||
Electrical Equipment 0.3% | ||||||||||||||||||||
15,128 | Harbin Electric, Inc. |
262,471 | ||||||||||||||||||
16,369 | Woodward Governor Company |
614,820 | ||||||||||||||||||
Total Electrical Equipment |
877,291 | |||||||||||||||||||
Electronic Equipment & Instruments 0.1% | ||||||||||||||||||||
8,888 | Plexus Corporation |
274,995 | ||||||||||||||||||
Energy Equipment & Services 0.1% | ||||||||||||||||||||
77,530 | Hercules Offshore Inc., (2) |
268,254 | ||||||||||||||||||
Health Care Equipment & Supplies 0.2% | ||||||||||||||||||||
12,216 | Kinetic Concepts Inc. |
511,606 | ||||||||||||||||||
Health Care Providers & Services 1.4% | ||||||||||||||||||||
6,408 | Amedisys, Inc. |
214,668 | ||||||||||||||||||
64,627 | Express Scripts, Inc. |
3,493,089 | ||||||||||||||||||
Total Health Care Providers & Services |
3,707,757 | |||||||||||||||||||
Health Care Technology 0.3% | ||||||||||||||||||||
12,138 | Quality Systems Inc. |
847,475 | ||||||||||||||||||
Hotels, Restaurants & Leisure 4.1% | ||||||||||||||||||||
19,940 | Bob Evans Farms |
657,222 | ||||||||||||||||||
13,842 | CBRL Group Inc. |
758,126 | ||||||||||||||||||
9,844 | CTRIP.com |
398,190 | ||||||||||||||||||
56,982 | McDonalds Corporation, (2) |
4,373,938 | ||||||||||||||||||
152,353 | Starbucks Corporation |
4,895,102 | ||||||||||||||||||
Total Hotels, Restaurants & Leisure |
11,082,578 | |||||||||||||||||||
Insurance 0.1% | ||||||||||||||||||||
13,188 | CNA Financial Corporation |
356,735 | ||||||||||||||||||
Internet & Catalog Retail 3.5% | ||||||||||||||||||||
41,178 | Amazon.com, Inc. |
7,412,040 | ||||||||||||||||||
9,132 | NetFlix.com Inc. |
1,604,492 | ||||||||||||||||||
25,361 | PetMed Express, Inc. |
451,679 | ||||||||||||||||||
Total Internet & Catalog Retail |
9,468,211 | |||||||||||||||||||
Internet Software & Services 8.9% | ||||||||||||||||||||
47,481 | Baidu.com, Inc., Sponsored ADR |
4,583,341 | ||||||||||||||||||
145,391 | Earthlink, Inc. |
1,250,363 | ||||||||||||||||||
151,009 | eBay Inc., (2) |
4,202,580 | ||||||||||||||||||
20,646 | Google Inc., Class A |
12,263,105 | ||||||||||||||||||
13,512 | Sohu.com Inc. |
857,877 | ||||||||||||||||||
49,861 | ValueClick, Inc. |
799,272 | ||||||||||||||||||
Total Internet Software & Services |
23,956,538 | |||||||||||||||||||
IT Services 1.9% | ||||||||||||||||||||
15,159 | Computer Sciences Corporation, (2) |
751,886 | ||||||||||||||||||
51,452 | CSG Systems International Inc., (2) |
974,501 | ||||||||||||||||||
27,777 | Henry Jack and Associates Inc. |
809,700 | ||||||||||||||||||
15,181 | International Business Machines Corporation (IBM) |
2,227,964 | ||||||||||||||||||
8,781 | ManTech International Corporation, Class A |
362,919 | ||||||||||||||||||
Total IT Services |
5,126,970 | |||||||||||||||||||
Life Sciences Tools & Services 0.4% | ||||||||||||||||||||
3,448 | Furiex Pharmaceuticals Inc. |
49,824 | ||||||||||||||||||
41,293 | Pharmaceutical Product Development Inc. |
1,120,692 | ||||||||||||||||||
Total Life Sciences Tools & Services |
1,170,516 |
Nuveen Investments | 19 |
QQQX
NASDAQ Premium Income & Growth Fund Inc. (continued)
Portfolio of Investments December 31, 2010
Shares | Description (1) | Value | ||||||||||||||||||
Machinery 0.8% | ||||||||||||||||||||
9,112 | Bucyrus International, Inc. |
$ | 814,613 | |||||||||||||||||
5,791 | Eaton Corporation |
587,844 | ||||||||||||||||||
6,843 | Nordson Corporation |
628,735 | ||||||||||||||||||
Total Machinery |
2,031,192 | |||||||||||||||||||
Media 5.9% | ||||||||||||||||||||
271,500 | Comcast Corporation, Class A |
5,964,855 | ||||||||||||||||||
107,806 | DIRECTV Group, Inc. |
4,304,694 | ||||||||||||||||||
19,704 | Focus Media Holding, Limited |
432,109 | ||||||||||||||||||
230,737 | News Corporation, Class A |
3,359,531 | ||||||||||||||||||
23,992 | News Corporation, Class B |
393,949 | ||||||||||||||||||
20,598 | Omnicom Group, Inc. |
943,388 | ||||||||||||||||||
14,672 | Scholastic Corporation |
433,411 | ||||||||||||||||||
Total Media |
15,831,937 | |||||||||||||||||||
Metals & Mining 0.7% | ||||||||||||||||||||
11,471 | Freeport-McMoRan Copper & Gold, Inc., (2) |
1,377,552 | ||||||||||||||||||
29,741 | Steel Dynamics Inc. |
544,260 | ||||||||||||||||||
Total Metals & Mining |
1,921,812 | |||||||||||||||||||
Multiline Retail 0.2% | ||||||||||||||||||||
10,167 | Dollar Tree Stores Inc. |
570,165 | ||||||||||||||||||
Office Electronics 0.4% | ||||||||||||||||||||
105,120 | Xerox Corporation |
1,210,982 | ||||||||||||||||||
Personal Products 0.3% | ||||||||||||||||||||
17,355 | USANA Health Sciences, Inc. |
754,075 | ||||||||||||||||||
Pharmaceuticals 2.6% | ||||||||||||||||||||
38,952 | Endo Pharmaceuticals Holdings Inc. |
1,390,976 | ||||||||||||||||||
9,952 | Perrigo Company |
630,260 | ||||||||||||||||||
95,143 | Teva Pharmaceutical Industries Limited, Sponsored ADR |
4,959,805 | ||||||||||||||||||
Total Pharmaceuticals |
6,981,041 | |||||||||||||||||||
Road & Rail 1.0% | ||||||||||||||||||||
12,519 | CSX Corporation |
808,853 | ||||||||||||||||||
20,080 | Heartland Express, Inc. |
321,682 | ||||||||||||||||||
17,588 | Landstar System |
720,053 | ||||||||||||||||||
31,943 | Werner Enterprises, Inc. |
721,912 | ||||||||||||||||||
Total Road & Rail |
2,572,500 | |||||||||||||||||||
Semiconductors & Equipment 8.2% | ||||||||||||||||||||
12,196 | Aixtron AG, Aachen SH |
453,691 | ||||||||||||||||||
59,644 | Amkor Technology Inc. |
440,769 | ||||||||||||||||||
13,927 | ASM Lithography Holding NV, (2) |
533,961 | ||||||||||||||||||
12,148 | Atheros Communications, Inc. |
436,356 | ||||||||||||||||||
15,513 | Canadian Solar, Inc. |
192,206 | ||||||||||||||||||
98,476 | Conexant Systems Inc. |
160,516 | ||||||||||||||||||
5,373 | Cree, Inc. |
354,027 | ||||||||||||||||||
366,445 | Intel Corporation |
7,706,338 | ||||||||||||||||||
105,345 | Intersil Holding Corporation, Class A |
1,608,618 | ||||||||||||||||||
63,691 | JA Solar Holdings Company, Limited |
440,742 | ||||||||||||||||||
38,220 | Micron Technology, Inc. |
306,524 | ||||||||||||||||||
67,680 | ON Semiconductor Corporation |
668,678 | ||||||||||||||||||
23,163 | Power Integrations Inc. |
929,763 | ||||||||||||||||||
28,287 | Skyworks Solutions Inc. |
809,857 | ||||||||||||||||||
18,133 | Tessera Technologies Inc. |
401,646 | ||||||||||||||||||
69,887 | Texas Instruments Incorporated |
2,271,328 | ||||||||||||||||||
150,287 | Xilinx, Inc. |
4,355,317 | ||||||||||||||||||
Total Semiconductors & Equipment |
22,070,337 | |||||||||||||||||||
Software 11.3% | ||||||||||||||||||||
83,514 | Adobe Systems Incorporated |
2,570,561 | ||||||||||||||||||
157,961 | CA Inc. |
3,860,567 | ||||||||||||||||||
400,615 | Microsoft Corporation |
11,185,171 | ||||||||||||||||||
4,598 | Microstrategy Inc. |
392,991 | ||||||||||||||||||
315,524 | Oracle Corporation, (2) |
9,875,901 | ||||||||||||||||||
7,492 | SAP AG, Sponsored ADR |
379,170 | ||||||||||||||||||
137,799 | Symantec Corporation |
2,306,755 | ||||||||||||||||||
Total Software |
30,571,116 |
20 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||||||||
Specialty Retail 1.7% | ||||||||||||||||||||
13,914 | Ascena Retail Group Inc. |
$ | 367,608 | |||||||||||||||||
78,174 | Rent-A-Center Inc. |
2,523,457 | ||||||||||||||||||
9,542 | Tiffany & Co |
594,180 | ||||||||||||||||||
25,619 | Tractor Supply Company |
1,242,265 | ||||||||||||||||||
Total Specialty Retail |
4,727,510 | |||||||||||||||||||
Textiles, Apparel & Luxury Goods 0.5% | ||||||||||||||||||||
11,114 | Deckers Outdoor Corporation |
886,230 | ||||||||||||||||||
8,473 | Phillips-Van Heusen Corporation |
533,884 | ||||||||||||||||||
Total Textiles, Apparel & Luxury Goods |
1,420,114 | |||||||||||||||||||
Total Investments (cost $205,138,146) 101.2% |
273,887,252 | |||||||||||||||||||
Other Assets Less Liabilities (1.2)% (3) |
(3,353,234 | ) | ||||||||||||||||||
Net Assets 100% |
$ | 270,534,018 |
Investments in Derivatives
Call Options Written outstanding at December 31, 2010:
Number of Contracts |
Type | Notional Amount (4) |
Expiration Date |
Strike Price |
Value | |||||||||||||||
(100 | ) | NASDAQ 100 INDEX |
$ | (21,500,000 | ) | 1/22/11 | $2,150.0 | $ | (882,000 | ) | ||||||||||
(100 | ) | NASDAQ 100 INDEX |
(21,250,000 | ) | 1/22/11 | 2,125.0 | (1,085,500 | ) | ||||||||||||
(150 | ) | NASDAQ 100 INDEX |
(33,750,000 | ) | 2/19/11 | 2,250.0 | (687,000 | ) | ||||||||||||
(150 | ) | NASDAQ 100 INDEX |
(34,500,000 | ) | 2/19/11 | 2,300.0 | (372,000 | ) | ||||||||||||
(100 | ) | NASDAQ 100 INDEX |
(23,500,000 | ) | 2/19/11 | 2,350.0 | (116,000 | ) | ||||||||||||
(600 | ) |
Total Call Options Written (premium received $2,545,292) |
$ | (134,500,000 | ) | $ | (3,142,500 | ) |
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 defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Investment, or portion of investment, has been pledged as collateral for call options written during and as of the end of the reporting period. |
(3) | Other Assets Less Liabilities includes Value of derivative instruments as noted in Investments in Derivatives. |
(4) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100. |
ADR | American Depositary Receipt. |
See accompanying notes to financial statements.
Nuveen Investments | 21 |
DPD
Dow 30SM Premium & Dividend Income Fund Inc.
Portfolio of Investments
December 31, 2010
Shares | Description (1) | Value | ||||||||||||||
Common Stocks 100.2% | ||||||||||||||||
Aerospace & Defense 9.4% | ||||||||||||||||
112,850 | Boeing Company |
$ | 7,364,591 | |||||||||||||
112,850 | United Technologies Corporation |
8,883,551 | ||||||||||||||
Total Aerospace & Defense |
16,248,142 | |||||||||||||||
Beverages 4.3% | ||||||||||||||||
112,850 | Coca-Cola Company |
7,422,145 | ||||||||||||||
Chemicals 3.3% | ||||||||||||||||
112,850 | E.I. Du Pont de Nemours and Company |
5,628,958 | ||||||||||||||
Communications Equipment 1.3% | ||||||||||||||||
112,850 | Cisco Systems, Inc., (2) |
2,282,956 | ||||||||||||||
Computers & Peripherals 2.8% | ||||||||||||||||
112,850 | Hewlett-Packard Company |
4,750,985 | ||||||||||||||
Consumer Finance 2.8% | ||||||||||||||||
112,850 | American Express Company |
4,843,522 | ||||||||||||||
Diversified Financial Services 3.7% | ||||||||||||||||
112,850 | Bank of America Corporation |
1,505,419 | ||||||||||||||
112,850 | JP Morgan Chase & Co. |
4,787,097 | ||||||||||||||
Total Diversified Financial Services |
6,292,516 | |||||||||||||||
Diversified Telecommunication Services 4.3% | ||||||||||||||||
112,850 | AT&T Inc. |
3,315,533 | ||||||||||||||
112,850 | Verizon Communications Inc. |
4,037,773 | ||||||||||||||
Total Diversified Telecommunication Services |
7,353,306 | |||||||||||||||
Food & Staples Retailing 3.5% | ||||||||||||||||
112,850 | Wal-Mart Stores, Inc.. |
6,086,001 | ||||||||||||||
Food Products 2.1% | ||||||||||||||||
112,850 | Kraft Foods Inc. |
3,555,904 | ||||||||||||||
Hotels, Restaurants & Leisure 5.0% | ||||||||||||||||
112,850 | McDonalds Corporation |
8,662,366 | ||||||||||||||
Household Products 4.2% | ||||||||||||||||
112,850 | Procter & Gamble Company |
7,259,641 | ||||||||||||||
Industrial Conglomerates 6.8% | ||||||||||||||||
112,850 | 3M Co. |
9,738,954 | ||||||||||||||
112,850 | General Electric Company |
2,064,027 | ||||||||||||||
Total Industrial Conglomerates |
11,802,981 | |||||||||||||||
Insurance 3.6% | ||||||||||||||||
112,850 | Travelers Companies, Inc. |
6,286,874 | ||||||||||||||
IT Services 9.6% | ||||||||||||||||
112,850 | International Business Machines Corporation (IBM) |
16,561,864 | ||||||||||||||
Machinery 6.1% | ||||||||||||||||
112,850 | Caterpillar Inc. |
10,569,530 | ||||||||||||||
Media 2.5% | ||||||||||||||||
112,850 | Walt Disney Company |
4,233,004 | ||||||||||||||
Metals & Mining 1.0% | ||||||||||||||||
112,850 | Alcoa Inc. |
1,736,762 | ||||||||||||||
Oil, Gas & Consumable Fuels 10.8% | ||||||||||||||||
112,850 | Chevron Corporation |
10,297,562 | ||||||||||||||
112,850 | Exxon Mobil Corporation |
8,251,592 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
18,549,154 |
22 | Nuveen Investments |
Shares | Description (1) | Value | ||||||||||||||||||
Pharmaceuticals 7.6% | ||||||||||||||||||||
112,850 | Johnson & Johnson |
$ | 6,979,773 | |||||||||||||||||
112,850 | Merck & Company Inc. |
4,067,114 | ||||||||||||||||||
112,850 | Pfizer Inc. |
1,976,004 | ||||||||||||||||||
Total Pharmaceuticals |
13,022,891 | |||||||||||||||||||
Semiconductors & Equipment 1.4% | ||||||||||||||||||||
112,850 | Intel Corporation |
2,373,236 | ||||||||||||||||||
Software 1.8% | ||||||||||||||||||||
112,850 | Microsoft Corporation |
3,150,772 | ||||||||||||||||||
Specialty Retail 2.3% | ||||||||||||||||||||
112,850 | Home Depot, Inc. |
3,956,521 | ||||||||||||||||||
Total Common Stocks (cost $144,684,821) |
172,630,031 | |||||||||||||||||||
Principal Amount (000) |
Description | Coupon | Maturity | Value | ||||||||||||||||
Short-Term Investments 1.2% | ||||||||||||||||||||
U.S. Government and Agency Obligations 1.2% | ||||||||||||||||||||
$ | 1,000 | U.S. Treasury Bills, (3) |
0.000% | 1/27/11 | $ | 999,970 | ||||||||||||||
1,000 | U.S. Treasury Bills, (3) |
0.000% | 2/03/11 | 999,934 | ||||||||||||||||
2,000 | Total Short-Term Investments (cost $1,999,387) |
1,999,904 | ||||||||||||||||||
Total Investments (cost $146,684,208) 101.4% |
174,629,935 | |||||||||||||||||||
Other Assets Less Liabilities (1.4)% (4) |
(2,336,845 | ) | ||||||||||||||||||
Net Assets 100% |
$ | 172,293,090 |
Investments in Derivatives | ||||||||||||||||||
Call Options Written outstanding at December 31, 2010: |
Number of Contracts |
Type | Notional Amount (5) |
Expiration Date |
Strike Price |
Value | |||||||||||||||
(520 | ) | 3M Company |
$ | (4,597,590 | ) | 1/25/11 | $ | 88.4152 | $ | (29,323 | ) | |||||||||
(530 | ) | Alcoa Inc. |
(716,242 | ) | 1/11/11 | 13.5140 | (100,017 | ) | ||||||||||||
(530 | ) | American Express Company |
(2,359,560 | ) | 1/11/11 | 44.5200 | (8,118 | ) | ||||||||||||
(530 | ) | AT&T Inc. |
(1,557,999 | ) | 1/18/11 | 29.3962 | (8,107 | ) | ||||||||||||
(530 | ) | Bank of America |
(603,220 | ) | 1/11/11 | 11.3815 | (104,468 | ) | ||||||||||||
(530 | ) | Boeing Company |
(3,481,040 | ) | 1/11/11 | 65.6800 | (45,859 | ) | ||||||||||||
(530 | ) | Caterpillar Inc. |
(4,618,314 | ) | 1/11/11 | 87.1380 | (353,888 | ) | ||||||||||||
(530 | ) | Chevron Corporation |
(4,420,200 | ) | 1/11/11 | 83.4000 | (419,336 | ) | ||||||||||||
(530 | ) | Cisco Systems Inc. |
(1,058,410 | ) | 1/18/11 | 19.9700 | (28,238 | ) | ||||||||||||
(520 | ) | Coca-Cola Company |
(3,422,484 | ) | 1/25/11 | 65.8170 | (46,033 | ) | ||||||||||||
(530 | ) | DuPont E.I. de Nemours and Company |
(2,565,200 | ) | 1/11/11 | 48.4000 | (93,857 | ) | ||||||||||||
(530 | ) | Exxon Mobil Corporation |
(3,901,001 | ) | 1/18/11 | 73.6038 | (37,097 | ) | ||||||||||||
(530 | ) | General Electric Company |
(864,165 | ) | 1/11/11 | 16.3050 | (105,913 | ) | ||||||||||||
(520 | ) | Hewlett-Packard Company |
(2,225,600 | ) | 1/25/11 | 42.8000 | (32,536 | ) | ||||||||||||
(530 | ) | Home Depot, Inc. |
(1,649,164 | ) | 1/11/11 | 31.1163 | (209,816 | ) | ||||||||||||
(520 | ) | IBM Corporation |
(7,809,880 | ) | 1/25/11 | 150.1900 | (60,206 | ) | ||||||||||||
(520 | ) | Intel Corporation |
(1,149,928 | ) | 1/25/11 | 22.1140 | (6,391 | ) | ||||||||||||
(520 | ) | Johnson & Johnson |
(3,361,800 | ) | 1/25/11 | 64.6500 | (1,809 | ) | ||||||||||||
(520 | ) | JP Morgan Chase & Co. |
(2,184,520 | ) | 1/25/11 | 42.0100 | (73,457 | ) | ||||||||||||
(520 | ) | Kraft Food Inc. |
(1,681,248 | ) | 1/25/11 | 32.3317 | (8,181 | ) | ||||||||||||
(520 | ) | McDonalds Corporation |
(4,129,840 | ) | 1/25/11 | 79.4200 | (15,614 | ) | ||||||||||||
(520 | ) | Merck & Co. Inc. |
(1,957,800 | ) | 1/25/11 | 37.6500 | (6,317 | ) | ||||||||||||
(530 | ) | Microsoft Corporation |
(1,467,040 | ) | 1/18/11 | 27.6800 | (33,939 | ) | ||||||||||||
(530 | ) | Pfizer Inc. |
(915,474 | ) | 1/18/11 | 17.2731 | (23,952 | ) | ||||||||||||
(530 | ) | Procter and Gamble Company |
(3,392,769 | ) | 1/18/11 | 64.0145 | (48,215 | ) | ||||||||||||
(530 | ) | The Travelers Companies Inc. |
(2,993,705 | ) | 1/18/11 | 56.4850 | (32,033 | ) | ||||||||||||
(530 | ) | United Technologies Corporation |
(4,287,700 | ) | 1/18/11 | 80.9000 | (19,180 | ) | ||||||||||||
(530 | ) | Verizon Communications Inc. |
(1,798,820 | ) | 1/18/11 | 33.9400 | (79,329 | ) | ||||||||||||
(530 | ) | Wal-Mart Stores Inc. |
(3,007,363 | ) | 1/18/11 | 56.7427 | (108 | ) | ||||||||||||
(530 | ) | Walt Disney Company |
(1,993,065 | ) | 1/11/11 | 37.6050 | (22,823 | ) | ||||||||||||
(15,800 | ) | Total Call Options Written (premium received $1,051,663) |
$ | (80,171,141 | ) | $ | (2,054,160 | ) |
Nuveen Investments | 23 |
DPD
Dow 30SM Premium & Dividend Income Fund Inc. (continued)
Portfolio of Investments December 31, 2010
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 defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(3) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. |
(4) | Other Assets Less Liabilities includes Value of derivative instruments as noted in Investments in Derivatives. |
(5) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100. |
See accompanying notes to financial statements.
24 | Nuveen Investments |
DPO
Dow 30SM Enhanced Premium & Income Fund Inc.
Portfolio of Investments
December 31, 2010
Shares | Description (1) | Value | ||||||||||||||||||
Common Stocks 93.6% | ||||||||||||||||||||
Aerospace & Defense 8.8% | ||||||||||||||||||||
185,150 | Boeing Company |
$ | 12,082,889 | |||||||||||||||||
185,150 | United Technologies Corporation |
14,575,008 | ||||||||||||||||||
Total Aerospace & Defense |
26,657,897 | |||||||||||||||||||
Beverages 4.0% | ||||||||||||||||||||
185,150 | Coca-Cola Company |
12,177,316 | ||||||||||||||||||
Chemicals 3.1% | ||||||||||||||||||||
185,150 | E.I. Du Pont de Nemours and Company |
9,235,282 | ||||||||||||||||||
Communications Equipment 1.2% | ||||||||||||||||||||
185,150 | Cisco Systems, Inc. , (2) |
3,745,585 | ||||||||||||||||||
Computers & Peripherals 2.6% | ||||||||||||||||||||
185,150 | Hewlett-Packard Company |
7,794,815 | ||||||||||||||||||
Consumer Finance 2.6% | ||||||||||||||||||||
185,150 | American Express Company |
7,946,638 | ||||||||||||||||||
Diversified Financial Services 3.4% | ||||||||||||||||||||
185,150 | Bank of America Corporation |
2,469,901 | ||||||||||||||||||
185,150 | JP Morgan Chase & Co. |
7,854,063 | ||||||||||||||||||
Total Diversified Financial Services |
10,323,964 | |||||||||||||||||||
Diversified Telecommunication Services 4.0% | ||||||||||||||||||||
185,150 | AT&T Inc. |
5,439,707 | ||||||||||||||||||
185,150 | Verizon Communications Inc. |
6,624,667 | ||||||||||||||||||
Total Diversified Telecommunication Services |
12,064,374 | |||||||||||||||||||
Food & Staples Retailing 3.3% | ||||||||||||||||||||
185,150 | Wal-Mart Stores, Inc. |
9,985,139 | ||||||||||||||||||
Food Products 1.9% | ||||||||||||||||||||
185,150 | Kraft Foods Inc. |
5,834,076 | ||||||||||||||||||
Hotels, Restaurants & Leisure 4.7% | ||||||||||||||||||||
185,150 | McDonalds Corporation |
14,212,114 | ||||||||||||||||||
Household Products 3.9% | ||||||||||||||||||||
185,150 | Procter & Gamble Company |
11,910,700 | ||||||||||||||||||
Industrial Conglomerates 6.4% | ||||||||||||||||||||
185,150 | 3M Co. |
15,978,445 | ||||||||||||||||||
185,150 | General Electric Company |
3,386,393 | ||||||||||||||||||
Total Industrial Conglomerates |
19,364,838 | |||||||||||||||||||
Insurance 3.4% | ||||||||||||||||||||
185,150 | Travelers Companies, Inc. |
10,314,707 | ||||||||||||||||||
IT Services 9.0% | ||||||||||||||||||||
185,150 | International Business Machines Corporation (IBM) |
27,172,614 | ||||||||||||||||||
Machinery 5.7% | ||||||||||||||||||||
185,150 | Caterpillar Inc. |
17,341,149 | ||||||||||||||||||
Media 2.3% | ||||||||||||||||||||
185,150 | Walt Disney Company |
6,944,977 | ||||||||||||||||||
Metals & Mining 0.9% | ||||||||||||||||||||
185,150 | Alcoa Inc. |
2,849,458 | ||||||||||||||||||
Oil, Gas & Consumable Fuels 10.1% | ||||||||||||||||||||
185,150 | Chevron Corporation |
16,894,938 | ||||||||||||||||||
185,150 | Exxon Mobil Corporation |
13,538,168 | ||||||||||||||||||
Total Oil, Gas & Consumable Fuels |
30,433,106 |
Nuveen Investments | 25 |
DPO
Dow 30SM Enhanced Premium & Income Fund Inc. (continued)
Portfolio of Investments December 31, 2010
Shares | Description (1) | Value | ||||||||||||||||||
Pharmaceuticals 7.1% | ||||||||||||||||||||
185,150 | Johnson & Johnson |
$ | 11,451,528 | |||||||||||||||||
185,150 | Merck & Company Inc. |
6,672,806 | ||||||||||||||||||
185,150 | Pfizer Inc. |
3,241,976 | ||||||||||||||||||
Total Pharmaceuticals |
21,366,310 | |||||||||||||||||||
Semiconductors & Equipment 1.3% | ||||||||||||||||||||
185,150 | Intel Corporation |
3,893,704 | ||||||||||||||||||
Software 1.7% | ||||||||||||||||||||
185,150 | Microsoft Corporation |
5,169,388 | ||||||||||||||||||
Specialty Retail 2.2% | ||||||||||||||||||||
185,150 | Home Depot, Inc. |
6,491,359 | ||||||||||||||||||
Total Common Stocks (cost $297,816,126) |
283,229,510 | |||||||||||||||||||
Principal Amount (000) |
Description | Coupon | Maturity | Value | ||||||||||||||||
Short-Term Investments 4.3% | ||||||||||||||||||||
Euro Dollar Time Deposit 1.6% | ||||||||||||||||||||
$ | 4,946 | State Street Bank Euro Dollar Time Deposit |
0.010% | 1/03/11 | $ | 4,946,158 | ||||||||||||||
U.S. Government and Agency Obligations 2.7% | ||||||||||||||||||||
8,000 | U.S. Treasury Bills, (3) |
0.000% | 2/03/11 | 7,999,472 | ||||||||||||||||
$ | 12,946 | Total Short-Term Investments (cost $12,943,909) |
12,945,630 | |||||||||||||||||
Total Investments (cost $310,760,035) 97.9% |
296,175,140 | |||||||||||||||||||
Other Assets Less Liabilities 2.1% (4) |
6,481,678 | |||||||||||||||||||
Net Assets 100% |
$ | 302,656,818 |
Investments in Derivatives |
Call Options Written outstanding at December 31, 2010:
Number of Contracts |
Type | Notional Amount (5) |
Expiration Date |
Strike Price |
Value | |||||||||||||||
(1,200 | ) | 3M Company |
$ | (10,609,824 | ) | 1/25/11 | $ | 88.4152 | $ | (67,668 | ) | |||||||||
(1,200 | ) | Alcoa Inc. |
(1,621,680 | ) | 1/11/11 | 13.5140 | (226,454 | ) | ||||||||||||
(1,200 | ) | American Express Company |
(5,342,400 | ) | 1/11/11 | 44.5200 | (18,380 | ) | ||||||||||||
(1,200 | ) | AT&T Inc. |
(3,527,544 | ) | 1/18/11 | 29.3962 | (18,354 | ) | ||||||||||||
(1,200 | ) | Bank of America |
(1,365,780 | ) | 1/11/11 | 11.3815 | (236,531 | ) | ||||||||||||
(1,200 | ) | Boeing Company |
(7,881,600 | ) | 1/11/11 | 65.6800 | (103,831 | ) | ||||||||||||
(1,200 | ) | Caterpillar Inc. |
(10,456,560 | ) | 1/11/11 | 87.1380 | (801,256 | ) | ||||||||||||
(1,200 | ) | Chevron Corporation |
(10,008,000 | ) | 1/11/11 | 83.4000 | (949,439 | ) | ||||||||||||
(1,200 | ) | Cisco Systems Inc. |
(2,396,400 | ) | 1/18/11 | 19.9700 | (63,936 | ) | ||||||||||||
(1,200 | ) | Coca-Cola Company |
(7,898,040 | ) | 1/25/11 | 65.8170 | (106,229 | ) | ||||||||||||
(1,200 | ) | DuPont E.I. de Nemours and Company |
(5,808,000 | ) | 1/11/11 | 48.4000 | (212,507 | ) | ||||||||||||
(1,200 | ) | Exxon Mobil Corporation |
(8,832,456 | ) | 1/18/11 | 73.6038 | (83,992 | ) | ||||||||||||
(1,200 | ) | General Electric Company |
(1,956,600 | ) | 1/11/11 | 16.3050 | (239,803 | ) | ||||||||||||
(1,200 | ) | Hewlett-Packard Company |
(5,136,000 | ) | 1/25/11 | 42.8000 | (75,084 | ) | ||||||||||||
(1,200 | ) | Home Depot, Inc. |
(3,733,956 | ) | 1/11/11 | 31.1163 | (475,055 | ) | ||||||||||||
(1,200 | ) | IBM Corporation |
(18,022,800 | ) | 1/25/11 | 150.1900 | (138,938 | ) | ||||||||||||
(1,200 | ) | Intel Corporation |
(2,653,680 | ) | 1/25/11 | 22.1140 | (14,749 | ) | ||||||||||||
(1,200 | ) | Johnson & Johnson |
(7,758,000 | ) | 1/25/11 | 64.6500 | (4,175 | ) | ||||||||||||
(1,200 | ) | JP Morgan Chase & Co. |
(5,041,200 | ) | 1/25/11 | 42.0100 | (169,517 | ) | ||||||||||||
(1,200 | ) | Kraft Food Inc. |
(3,879,804 | ) | 1/25/11 | 32.3317 | (18,880 | ) | ||||||||||||
(1,200 | ) | McDonalds Corporation |
(9,530,400 | ) | 1/25/11 | 79.4200 | (36,033 | ) | ||||||||||||
(1,200 | ) | Merck & Co. Inc. |
(4,518,000 | ) | 1/25/11 | 37.6500 | (14,578 | ) | ||||||||||||
(1,200 | ) | Microsoft Corporation |
(3,321,600 | ) | 1/18/11 | 27.6800 | (76,843 | ) | ||||||||||||
(1,200 | ) | Pfizer Inc. |
(2,072,772 | ) | 1/18/11 | 17.2731 | (54,230 | ) | ||||||||||||
(1,200 | ) | Procter and Gamble Company |
(7,681,740 | ) | 1/18/11 | 64.0145 | (109,167 | ) | ||||||||||||
(1,200 | ) | The Travelers Companies Inc. |
(6,778,200 | ) | 1/18/11 | 56.4850 | (72,527 | ) | ||||||||||||
(1,200 | ) | United Technologies Corporation |
(9,708,000 | ) | 1/18/11 | 80.9000 | (43,426 | ) | ||||||||||||
(1,200 | ) | Verizon Communications Inc. |
(4,072,800 | ) | 1/18/11 | 33.9400 | (179,614 | ) | ||||||||||||
(1,200 | ) | Wal-Mart Stores Inc. |
(6,809,124 | ) | 1/18/11 | 56.7427 | (244 | ) | ||||||||||||
(1,200 | ) | Walt Disney Company |
(4,512,600 | ) | 1/11/11 | 37.6050 | (51,674 | ) | ||||||||||||
(36,000 | ) | Total Call Options Written (premium received $2,396,760) |
$ | (182,935,560 | ) | $ | (4,663,114 | ) |
26 | Nuveen Investments |
Total Return Swaps outstanding at December 31, 2010:
Counterparty | Receive | Pay | Expiration Date |
Notional Amount |
Unrealized Appreciation (Depreciation) |
|||||||||||||
BNP Paribas | Dow Jones Industrial Average Total Return Index | 12-Month USD-LIBOR-BBA less 40 basis points | 6/28/11 | $ | 46,100,199 | $ | 5,572,501 | |||||||||||
JPMorgan Chase | Dow Jones Industrial Average Total Return Index | 12-Month USD-LIBOR-BBA less 40 basis points | 6/28/11 | 46,100,199 | 5,572,500 | |||||||||||||
$ | 11,145,001 |
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 defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(3) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. |
(4) | Other Assets Less Liabilities includes Value and/or Unrealized Appreciation (Depreciation) of derivative instruments as noted in Investments in Derivatives. |
(5) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100. |
USD-LIBOR-BBA | United States Dollar London Inter-Bank Offered Rate British Bankers Association. |
See accompanying notes to financial statements.
Nuveen Investments | 27 |
GCF
Global Income & Currency Fund Inc.
Portfolio of Investments
December 31, 2010
Principal Amount (000) (3) |
Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||
Short-Term Investments 98.2% | ||||||||||||||||||||
Sovereign Debt 48.8% | ||||||||||||||||||||
Malaysia 10.7% | ||||||||||||||||||||
30,000 | MYR | Bank Negara Malaysia Monetary Note |
0.000% | 4/05/11 | A | $ | 9,661,002 | |||||||||||||
Mexico 12.8% | ||||||||||||||||||||
143,000 | MXN | Mexican Treasury Bills |
0.000% | 2/10/11 | A | 11,519,200 | ||||||||||||||
South Africa 13.1% | ||||||||||||||||||||
74,000 | ZAR | Republic of South Africa |
13.000% | 8/31/11 | A3 | 11,759,580 | ||||||||||||||
Turkey 12.2% | ||||||||||||||||||||
17,000 | TRY | Republic of Turkey, Government Bond |
0.000% | 2/02/11 | BB+ | 10,979,204 | ||||||||||||||
Total Sovereign Debt |
43,918,986 | |||||||||||||||||||
U.S. Government and Agency Obligations 47.9% | ||||||||||||||||||||
$ 3,000 | Federal Farm Credit Banks, Consolidated Systemwide Notes |
1.800% | 3/17/11 | AAA | 3,009,999 | |||||||||||||||
4,000 | Federal Home Loan Bank Bonds |
0.375% | 1/06/11 | AAA | 4,000,048 | |||||||||||||||
5,500 | Federal Home Loan Banks, Discount Notes |
0.000% | 1/21/11 | AAA | 5,499,572 | |||||||||||||||
2,000 | Federal Home Loan Banks, Discount Notes |
0.000% | 2/03/11 | AAA | 1,999,880 | |||||||||||||||
3,300 | Federal Home Loan Banks, Discount Notes |
0.000% | 3/25/11 | N/R | 3,299,333 | |||||||||||||||
1,017 | Federal Home Loan Banks, Discount Notes |
0.000% | 4/28/11 | AAA | 1,016,676 | |||||||||||||||
3,300 | Federal Home Loan Banks, Discount Notes |
0.000% | 5/27/11 | AAA | 3,298,416 | |||||||||||||||
5,000 | Federal Home Loan Banks, Discount Notes |
0.000% | 6/15/11 | AAA | 4,996,605 | |||||||||||||||
4,000 | Federal Home Loan Mortgage Corporation, Notes |
0.000% | 1/31/11 | N/R | 3,999,450 | |||||||||||||||
2,000 | Federal National Mortgage Association |
0.000% | 1/18/11 | AAA | 1,999,966 | |||||||||||||||
2,000 | Federal National Mortgage Association |
0.000% | 4/01/11 | AAA | 1,999,512 | |||||||||||||||
5,000 | U.S. Treasury Bills, (5) |
0.000% | 7/28/11 | AAA | 4,994,650 | |||||||||||||||
3,000 | U.S. Treasury Notes |
0.875% | 2/28/11 | AAA | 3,003,633 | |||||||||||||||
43,117 | Total U.S. Government and Agency Obligations |
43,117,740 | ||||||||||||||||||
Investment Companies 1.5% | ||||||||||||||||||||
1,370 | AIM Short Term Investment Trust Prime Portfolio |
0.000% | N/A | N/R | 1,370,086 | |||||||||||||||
Total Short-Term Investments (cost $87,184,163) |
88,406,812 | |||||||||||||||||||
Total Investments (cost $87,184,163) 98.2% |
88,406,812 | |||||||||||||||||||
Other Assets Less Liabilities 1.8% (4) |
1,611,317 | |||||||||||||||||||
Net Assets 100% |
$ | 90,018,129 |
Investments in Derivatives |
Forward Foreign Currency Exchange Contracts outstanding at December 31, 2010:
Counterparty | Currency Contracts to Deliver | Amount (Local Currency) |
In Exchange For Currency |
Amount (Local Currency) |
Settlement Date |
Unrealized Appreciation (Depreciation) (U.S. Dollars) |
||||||||||||||||
BNP Paribas | Brazilian Real | 19,356,900 | U.S. Dollar | 11,313,209 | 1/04/11 | $ (347,575) | ||||||||||||||||
HSBC | Euro | 8,250,000 | U.S. Dollar | 11,217,690 | 1/18/11 | 193,477 | ||||||||||||||||
BNP Paribas | Japanese Yen | 919,119,400 | U.S. Dollar | 11,300,000 | 1/05/11 | (20,599 | ) | |||||||||||||||
Deutsche Bank | Malaysian Ringgit | 29,683,586 | U.S. Dollar | 9,418,128 | 4/07/11 | (151,020 | ) | |||||||||||||||
BNP Paribas | Mexican Peso | 143,000,000 | U.S. Dollar | 11,380,657 | 2/10/11 | (168,916 | ) | |||||||||||||||
BNP Paribas | Pound Sterling | 7,000,000 | U.S. Dollar | 11,067,350 | 1/26/11 | 155,348 | ||||||||||||||||
HSBC | South African Rand | 80,000,000 | U.S. Dollar | 11,163,518 | 1/31/11 | (931,998 | ) | |||||||||||||||
Morgan Stanley | Swiss Franc | 11,170,369 | U.S. Dollar | 11,230,000 | 1/26/11 | (720,183 | ) | |||||||||||||||
BNP Paribas | Turkish Lira | 17,000,000 | U.S. Dollar | 11,540,681 | 2/02/11 | 568,212 | ||||||||||||||||
HSBC | U.S. Dollar | 11,237,603 | Australian Dollar | 11,450,000 | 2/07/11 | 425,714 | ||||||||||||||||
Deutsche Bank | U.S. Dollar | 11,300,000 | Brazilian Real | 19,356,900 | 1/04/11 | 360,783 | ||||||||||||||||
BNP Paribas | U.S. Dollar | 11,239,635 | Brazilian Real | 19,356,900 | 2/02/11 | 343,469 | ||||||||||||||||
Morgan Stanley | U.S. Dollar | 5,593,332 | Indian Rupee | 255,000,000 | 2/10/11 | 71,581 | ||||||||||||||||
BNP Paribas | U.S. Dollar | 6,643,031 | Japanese Yen | 549,000,000 | 1/05/11 | 118,886 |
28 | Nuveen Investments |
Forward Foreign Currency Exchange Contracts outstanding at December 31, 2010 (continued):
Counterparty | Currency Contracts to Deliver | Amount (Local Currency) |
In Exchange For Currency |
Amount (Local Currency) |
Settlement Date |
Unrealized Appreciation (Depreciation) (U.S. Dollars) |
||||||||||||||||||
Morgan Stanley | U.S. Dollar | 4,397,284 | Japanese Yen | 370,119,400 | 1/05/11 | $ 161,398 | ||||||||||||||||||
HSBC | U.S. Dollar | 11,528,539 | Mexican Peso | 143,000,000 | 2/10/11 | 21,033 | ||||||||||||||||||
BNP Paribas | U.S. Dollar | 11,520,273 | South African Rand | 80,000,000 | 1/31/11 | 575,244 | ||||||||||||||||||
Morgan Stanley | U.S. Dollar | 5,717,639 | Swiss Franc | 5,584,990 | 1/26/11 | 257,245 | ||||||||||||||||||
Morgan Stanley | U.S. Dollar | 5,640,425 | Swiss Franc | 5,585,386 | 1/26/11 | 334,881 | ||||||||||||||||||
$1,246,980 |
(1) | All percentages shown in the Portfolio of Investments are based on net assets. |
(2) | Ratings (not covered by the report of independent registered public accounting firm): 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) | Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted. |
(4) | Other Assets Less Liabilities includes Unrealized Appreciation (Depreciation) of derivative instruments as noted in Investments in Derivatives. |
(5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. |
N/R | Not rated. |
N/A | Not applicable. |
MYR | Malaysian Ringgit |
MXN | Mexican Peso |
ZAR | South African Rand |
TRY | Turkish Lira |
See accompanying notes to financial statements.
Nuveen Investments | 29 |
Assets & Liabilities
December 31, 2010
NASDAQ Premium Income & Growth (QQQX) |
Dow
30SM Premium & Dividend Income (DPD) |
Dow
30SM Enhanced Premium & Income (DPO) |
Global Income & Currency (GCF) |
|||||||||||||
Assets |
||||||||||||||||
Long-term investments, at value (cost $205,138,146, $144,684,821, $297,816,126 and $-, respectively) |
$ | 273,887,252 | $ | 172,630,031 | $ | 283,229,510 | $ | | ||||||||
Short-term investments, at value (cost $-, $1,999,387, $12,943,909 and $87,184,163, respectively) |
| 1,999,904 | 12,945,630 | 88,406,812 | ||||||||||||
Cash |
136,479 | | | | ||||||||||||
Cash denominated in foreign currencies (cost $-,$-,$- and $5,509, respectively) |
| | | 5,181 | ||||||||||||
Unrealized appreciation on total return swaps |
| | 11,145,001 | | ||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts |
| | | 3,587,271 | ||||||||||||
Receivables: |
||||||||||||||||
Dividends |
38,810 | 170,686 | 280,039 | | ||||||||||||
Interest |
| | | 523,932 | ||||||||||||
Investments sold |
| | 172,800 | | ||||||||||||
Other assets |
29,053 | 18,901 | 31,235 | 12,071 | ||||||||||||
Total assets |
274,091,594 | 174,819,522 | 307,804,215 | 92,535,267 | ||||||||||||
Liabilities |
||||||||||||||||
Cash overdraft |
| 169,265 | | | ||||||||||||
Call options written, at value (premiums received $2,545,292, $1,051,663, $2,396,760 and $-, respectively) |
3,142,500 | 2,054,160 | 4,663,114 | | ||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts |
| | | 2,340,291 | ||||||||||||
Accrued expenses: |
||||||||||||||||
Management fees |
204,041 | 117,631 | 213,505 | 61,159 | ||||||||||||
Other |
211,035 | 185,376 | 270,778 | 115,688 | ||||||||||||
Total liabilities |
3,557,576 | 2,526,432 | 5,147,397 | 2,517,138 | ||||||||||||
Net assets |
$ | 270,534,018 | $ | 172,293,090 | $ | 302,656,818 | $ | 90,018,129 | ||||||||
Shares outstanding |
18,445,346 | 11,973,406 | 27,678,519 | 5,642,617 | ||||||||||||
Net asset value per share outstanding |
$ | 14.67 | $ | 14.39 | $ | 10.93 | $ | 15.95 | ||||||||
Net assets consist of: |
||||||||||||||||
Shares, $.001 par value per share |
$ | 18,445 | $ | 11,973 | $ | 27,679 | $ | 5,643 | ||||||||
Paid-in surplus |
224,689,056 | 153,311,083 | 379,083,723 | 92,867,197 | ||||||||||||
Undistributed (Over-distribution of) net investment income |
| | | (854,367 | ) | |||||||||||
Accumulated net realized gain (loss) |
(22,325,381 | ) | (7,973,196 | ) | (70,748,336 | ) | (4,498,323 | ) | ||||||||
Net unrealized appreciation (depreciation) |
68,151,898 | 26,943,230 | (5,706,248 | ) | 2,497,979 | |||||||||||
Net assets |
$ | 270,534,018 | $ | 172,293,090 | $ | 302,656,818 | $ | 90,018,129 | ||||||||
Authorized shares |
100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
See accompanying notes to financial statements.
30 | Nuveen Investments |
Operations
Year Ended December 31, 2010
NASDAQ Premium Income & Growth (QQQX) |
Dow
30SM Premium & Dividend Income (DPD) |
Dow
30SM Enhanced Premium & Income (DPO) |
Global Income & Currency (GCF) |
|||||||||||||
Investment Income |
||||||||||||||||
Dividends (net of foreign tax withheld of $16,317, $-, $- and $-, respectively) |
$ | 2,132,628 | $ | 4,417,242 | $ | 7,064,834 | $ | 392 | ||||||||
Interest |
2,520 | 1,053 | 11,135 | 1,332,736 | ||||||||||||
Total investment income |
2,135,148 | 4,418,295 | 7,075,969 | 1,333,128 | ||||||||||||
Expenses |
||||||||||||||||
Management fees |
2,311,677 | 1,471,604 | 2,544,957 | 824,394 | ||||||||||||
Shareholders servicing agent fees and expenses |
37,808 | 31,979 | 46,285 | 23,500 | ||||||||||||
Custodians fees and expenses |
13,387 | 10,605 | 15,206 | 16,232 | ||||||||||||
Directors fees and expenses |
58,868 | 54,852 | 54,569 | 52,907 | ||||||||||||
Professional fees |
70,573 | 37,496 | 51,696 | 85,927 | ||||||||||||
Accounting services |
45,187 | 28,731 | 43,876 | 18,455 | ||||||||||||
Shareholders reports printing and mailing expenses |
52,244 | 38,850 | 72,030 | 26,074 | ||||||||||||
Licensing fees |
101,599 | 32,526 | 55,239 | | ||||||||||||
Investor relations expense |
45,248 | 42,368 | 81,921 | 10,579 | ||||||||||||
Insurance |
29,092 | 16,970 | 28,828 | 11,044 | ||||||||||||
Other expenses |
25,138 | 41,924 | 27,617 | 48,622 | ||||||||||||
Total expenses before custodian fee credit and expense reimbursement |
2,790,821 | 1,807,905 | 3,022,224 | 1,117,734 | ||||||||||||
Custodian fee credit |
(39 | ) | (2 | ) | | (26 | ) | |||||||||
Expense reimbursement |
| | | | ||||||||||||
Net expenses |
2,790,782 | 1,807,903 | 3,022,224 | 1,117,708 | ||||||||||||
Net investment income (loss) |
(655,634 | ) | 2,610,392 | 4,053,745 | 215,420 | |||||||||||
Realized and Unrealized Gain (Loss) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments and foreign currency |
4,640,425 | 865,675 | (1,110,606 | ) | 2,353,268 | |||||||||||
Forward foreign currency exchange contracts |
| | | 1,451,739 | ||||||||||||
Call options written |
(7,001,781 | ) | 1,788,425 | 4,029,546 | | |||||||||||
Swaps |
| | 16,109,410 | | ||||||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||
Investments and foreign currency |
37,045,270 | 16,664,997 | 29,433,016 | (910,318 | ) | |||||||||||
Forward foreign currency exchange contracts |
| | | 2,588,463 | ||||||||||||
Call options written |
92,906 | (1,731,158 | ) | (3,887,100 | ) | | ||||||||||
Swaps |
| | (4,087,527 | ) | | |||||||||||
Net realized and unrealized gain (loss) |
34,776,820 | 17,587,939 | 40,486,739 | 5,483,152 | ||||||||||||
Net increase (decrease) in net assets from operations |
$ | 34,121,186 | $ | 20,198,331 | $ | 44,540,484 | $ | 5,698,572 |
See accompanying notes to financial statements.
Nuveen Investments | 31 |
Changes in Net Assets
NASDAQ Premium Income & Growth (QQQX) |
Dow
30SM Premium & Dividend Income (DPD) |
Dow
30SM Enhanced Premium & Income (DPO) |
Global Income & Currency (GCF) |
|||||||||||||||||||||||||||||
Year Ended 12/31/10 |
Year Ended 12/31/09 |
Year Ended 12/31/10 |
Year Ended 12/31/09 |
Year Ended 12/31/10 |
Year Ended 12/31/09 |
Year Ended 12/31/10 |
Year Ended 12/31/09 |
|||||||||||||||||||||||||
Operations |
||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (655,634 | ) | $ | (880,508 | ) | $ | 2,610,392 | $ | 3,012,214 | $ | 4,053,745 | $ | 5,381,536 | $ | 215,420 | $ | 1,804,896 | ||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||||||||||||||||||
Investments and foreign currency |
4,640,425 | (2,769,187 | ) | 865,675 | (10,182,257 | ) | (1,110,606 | ) | (41,611,961 | ) | 2,353,268 | (8,637,045 | ) | |||||||||||||||||||
Forward foreign currency exchange contracts |
| | | | | | 1,451,739 | 3,213,692 | ||||||||||||||||||||||||
Call options written |
(7,001,781 | ) | (10,654,562 | ) | 1,788,425 | (441,306 | ) | 4,029,546 | 56,089 | | 128,013 | |||||||||||||||||||||
Swaps |
| | | | 16,109,410 | (34,434,412 | ) | | | |||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||||||||||||||||||
Investments and foreign currency |
37,045,270 | 101,898,441 | 16,664,997 | 37,570,562 | 29,433,016 | 85,978,398 | (910,318 | ) | 6,113,634 | |||||||||||||||||||||||
Forward foreign currency exchange contracts |
| | | | | | 2,588,463 | (1,413,165 | ) | |||||||||||||||||||||||
Call options written |
92,906 | (2,457,314 | ) | (1,731,158 | ) | (146,163 | ) | (3,887,100 | ) | (545,337 | ) | | 26,873 | |||||||||||||||||||
Swaps |
| | | | (4,087,527 | ) | 49,477,934 | | | |||||||||||||||||||||||
Net increase (decrease) in net assets from operations |
34,121,186 | 85,136,870 | 20,198,331 | 29,813,050 | 44,540,484 | 64,302,247 | 5,698,572 | 1,236,898 | ||||||||||||||||||||||||
Distributions to Shareholders |
||||||||||||||||||||||||||||||||
From net investment income |
| | (4,102,297 | ) | (3,012,214 | ) | (17,310,225 | ) | (5,384,581 | ) | (4,697,479 | ) | | |||||||||||||||||||
Return of capital |
(23,314,917 | ) | (33,880,983 | ) | (10,625,600 | ) | (18,136,376 | ) | (10,867,638 | ) | (49,060,320 | ) | | (5,145,167 | ) | |||||||||||||||||
Decrease in net assets from distributions to shareholders |
(23,314,917 | ) | (33,880,983 | ) | (14,727,897 | ) | (21,148,590 | ) | (28,177,863 | ) | (54,444,901 | ) | (4,697,479 | ) | (5,145,167 | ) | ||||||||||||||||
Capital Share Transactions |
||||||||||||||||||||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions |
| 2,181,331 | 1,425,716 | 3,205,043 | 1,123,481 | 6,685,670 | | | ||||||||||||||||||||||||
Cost of shares repurchased (1) |
| | | | | | (9,840,672 | ) | (5,391,824 | ) | ||||||||||||||||||||||
Net increase (decrease) in net assets from capital share transactions |
| 2,181,331 | 1,425,716 | 3,205,043 | 1,123,481 | 6,685,670 | (9,840,672 | ) | (5,391,824 | ) | ||||||||||||||||||||||
Net increase (decrease) in net assets |
10,806,269 | 53,437,218 | 6,896,150 | 11,869,503 | 17,486,102 | 16,543,016 | (8,839,579 | ) | (9,300,093 | ) | ||||||||||||||||||||||
Net assets at the beginning of year |
259,727,749 | 206,290,531 | 165,396,940 | 153,527,437 | 285,170,716 | 268,627,700 | 98,857,708 | 108,157,801 | ||||||||||||||||||||||||
Net assets at the end of year |
$ | 270,534,018 | $ | 259,727,749 | $ | 172,293,090 | $ | 165,396,940 | $ | 302,656,818 | $ | 285,170,716 | $ | 90,018,129 | $ | 98,857,708 | ||||||||||||||||
Undistributed (Over-distribution of) net investment income at the end of year |
$ | | $ | (55,628 | ) | $ | | $ | | $ | | $ | (61,020 | ) | $ | (854,367 | ) | $ | (2,090,119 | ) |
(1) | Including $27,631 and $29,698 of repurchase fees, in each of the fiscal years ended December 31, 2010 and 2009, for Global Income & Currency (GCF). |
See accompanying notes to financial statements.
32 | Nuveen Investments |
Financial
Highlights
Nuveen Investments | 33 |
Highlights
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||||||
Beginning Net Asset Value |
Net Investment Income Loss(a) |
Net Realized/ Unrealized Gain (Loss) |
Total | Net Investment Income |
Capital Gains |
Return of Capital |
Total | Offering Costs |
Ending Net Asset Value |
Ending Market Value |
||||||||||||||||||||||||||||||||||
NASDAQ Premium Income & Growth (QQQX) |
||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
||||||||||||||||||||||||||||||||||||||||||||
2010 |
$ | 14.08 | $ | (.04 | ) | $ | 1.89 | $ | 1.85 | $ | | $ | | $ | (1.26 | ) | $ | (1.26 | ) | $ | | $ | 14.67 | $ | 14.10 | |||||||||||||||||||
2009 |
11.28 | (.05 | ) | 4.70 | 4.65 | | | (1.85 | ) | (1.85 | ) | | 14.08 | 14.40 | ||||||||||||||||||||||||||||||
2008 |
20.63 | (.08 | ) | (7.42 | ) | (7.50 | ) | (.27 | ) | | (1.58 | ) | (1.85 | ) | | 11.28 | 9.29 | |||||||||||||||||||||||||||
2007(d) |
19.10 | (.07 | ) | 3.34 | 3.27 | | | (1.70 | ) | (1.70 | ) | (.04 | ) | 20.63 | 18.26 | |||||||||||||||||||||||||||||
Dow 30SM Premium & Dividend Income (DPD) |
||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
||||||||||||||||||||||||||||||||||||||||||||
2010 |
13.93 | .22 | 1.48 | 1.70 | (.35 | ) | | (.89 | ) | (1.24 | ) | | 14.39 | 14.53 | ||||||||||||||||||||||||||||||
2009 |
13.20 | .26 | 2.27 | 2.53 | (.26 | ) | | (1.54 | ) | (1.80 | ) | | 13.93 | 14.74 | ||||||||||||||||||||||||||||||
2008 |
19.95 | .29 | (5.24 | ) | (4.95 | ) | (.29 | ) | |
(1.43 |
) |
(.08 | ) | (1.80 | ) | | 13.20 | 12.99 | ||||||||||||||||||||||||||
2007 |
20.14 | .25 | 1.36 | 1.61 | (.47 | ) | (.04 | ) | (1.29 | ) | (1.80 | ) | | 19.95 | 17.91 | |||||||||||||||||||||||||||||
2006 |
19.13 | .25 | 2.56 | 2.81 | (.25 | ) | | (1.55 | ) | (1.80 | ) | | ** | 20.14 | 20.96 | |||||||||||||||||||||||||||||
Dow 30SM Enhanced Premium & Income (DPO) |
||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
||||||||||||||||||||||||||||||||||||||||||||
2010 |
10.35 | .15 | 1.45 | 1.60 | (.63 | ) | | (.39 | ) | (1.02 | ) | | 10.93 | 10.38 | ||||||||||||||||||||||||||||||
2009 |
9.99 | .20 | 2.16 | 2.36 | (.20 | ) | | (1.80 | ) | (2.00 | ) | | 10.35 | 10.94 | ||||||||||||||||||||||||||||||
2008 |
17.75 | .26 | (6.02 | ) | (5.76 | ) | (.26 | ) | | (1.74 | ) | (2.00 | ) | | ** | 9.99 | 8.89 | |||||||||||||||||||||||||||
2007(e) |
19.10 | .15 | (.48 | ) | (.33 | ) | (.15 | ) | (.05 | ) | (.80 | ) | (1.00 | ) | (.02 | ) | 17.75 | 15.98 | ||||||||||||||||||||||||||
Global Income & Currency (GCF) |
||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
||||||||||||||||||||||||||||||||||||||||||||
2010 |
15.77 | .04 | .95 | ^ | .99 | (.81 | ) | | | (.81 | ) | | 15.95 | 14.47 | ||||||||||||||||||||||||||||||
2009 |
16.39 | .28 | (.09 | )^ | .19 | | | (.81 | ) | (.81 | ) | | 15.77 | 14.04 | ||||||||||||||||||||||||||||||
2008 |
18.58 | .78 | (1.52 | )^ | (.74 | ) | (1.03 | ) | | (.42 | ) | (1.45 | ) | | 16.39 | 13.97 | ||||||||||||||||||||||||||||
2007 |
19.09 | 1.16 | .35 | ^ | 1.51 | (2.02 | ) | | | (2.02 | ) | | 18.58 | 17.55 | ||||||||||||||||||||||||||||||
2006(f) |
19.10 | .71 | .30 | 1.01 | (.74 | ) | (.21 | ) | (.03 | ) | (.98 | ) | (.04 | ) | 19.09 | 18.05 |
34 | Nuveen Investments |
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Total Returns | Ratios to Average Net Assets Before Reimbursement |
Ratios to Average Net Assets After Reimbursement(c) |
||||||||||||||||||||||||||||
Based on Market Value(b) |
Based on Net Asset Value(b) |
Ending Net Assets (000) |
Expenses | Net Investment Income (Loss) |
Expenses | Net Investment Income (Loss) |
Portfolio Turnover Rate |
|||||||||||||||||||||||
7.46 | % | 14.05 | % | $ | 270,534 | 1.08 | % | (.25 | )% | 1.08 | % | (.25 | )% | 33 | % | |||||||||||||||
79.21 | 44.32 | 259,728 | 1.11 | (.38 | ) | 1.11 | (.38 | ) | 0 | |||||||||||||||||||||
(41.45 | ) | (37.07 | ) | 206,291 | 1.05 | (.47 | ) | 1.05 | (.47 | ) | 19 | |||||||||||||||||||
(.30 | ) | 17.95 | 377,248 | 1.06 | * | (.36 | )* | 1.06 | * | (.36 | )* | 31 | ||||||||||||||||||
7.87 | 13.03 | 172,293 | 1.10 | 1.59 | 1.10 | 1.59 | 0 | |||||||||||||||||||||||
29.66 | 20.59 | 165,397 | 1.14 | 2.02 | 1.14 | 2.02 | 6 | |||||||||||||||||||||||
(18.80 | ) | (25.93 | ) | 153,527 | 1.08 | 1.72 | 1.08 | 1.72 | 11 | |||||||||||||||||||||
(6.48 | ) | 8.42 | 230,464 | 1.07 | 1.23 | 1.07 | 1.23 | 0 | ||||||||||||||||||||||
(26.74 | ) | 15.54 | 231,007 | 1.10 | 1.30 | 1.10 | 1.30 | 0 | ||||||||||||||||||||||
4.95 | 16.67 | 302,657 | 1.06 | 1.43 | 1.06 | 1.43 | 0 | |||||||||||||||||||||||
50.23 | 26.48 | 285,171 | 1.08 | 2.11 | 1.08 | 2.11 | 6 | |||||||||||||||||||||||
(35.09 | ) | (34.33 | ) | 268,628 | 1.03 | 1.83 | 1.03 | 1.83 | 12 | |||||||||||||||||||||
(15.38 | ) | (1.58 | ) | 475,312 | 1.03 | * | 1.38 | * | 1.03 | * | 1.38 | * | 8 | |||||||||||||||||
8.96 | 6.49 | 90,018 | 1.20 | .23 | 1.20 | .23 | 0 | |||||||||||||||||||||||
6.44 | 1.90 | 98,858 | 1.22 | 1.71 | 1.22 | 1.71 | 0 | |||||||||||||||||||||||
(12.52 | ) | (3.06 | ) | 108,158 | 1.20 | 4.35 | 1.20 | 4.35 | 0 | |||||||||||||||||||||
8.49 | 8.60 | 129,045 | 1.16 | 5.99 | 1.16 | 5.99 | 0 | |||||||||||||||||||||||
(4.76 | ) | 5.48 | 140,415 | 1.19 | * | 5.45 | * | 1.19 | * | 5.45 | * | 0 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | For the fiscal year ended December 31, 2010, 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. |
For the fiscal year ended December 31, 2010, Total Return Based on Net Asset Value is the combination of changes in net asset value, reinvested divided 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.
For the fiscal years ended prior to December 31, 2010, the Funds Total Returns Based on Market Value and Net Asset Value reflect the performance of the Fund based on a calculation approved by Fund management of IQ Advisors. Total returns based on the calculations described above may have produced substantially different results. Total returns are not annualized.
(c) | After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash deposit with the custodian bank, where applicable. |
(d) | For the period January 30, 2007 (commencement of operations) through December 31,2007. |
(e) | For the period May 30, 2007 (commencement of operations) through December 31,2007. |
(f) | For the period April 28, 2006 (commencement of operations) through December 31,2006. |
* | Annualized. |
** | Rounds to less than $.01 per share. |
^ | Includes repurchase offer fees, which are less than $.01 per share. |
See accompanying notes to financial statements.
Nuveen Investments | 35 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
The funds covered in this report and their corresponding New York Stock Exchange (NYSE) symbols are NASDAQ Premium Income & Growth Fund Inc. (QQQX), Dow 30SM Premium & Dividend Income Fund Inc. (DPD), Dow 30SM Enhanced Premium & Income Fund Inc. (DPO) and Global Income & Currency Fund Inc. (GCF) (collectively, the Funds). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end registered investment companies.
After the close of business on October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD), Dow 30SM Enhanced Premium & Income (DPO) and Global Income & Currency (GCF), and after the close of business on October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), Nuveen Asset Management (the Adviser), a wholly-owned subsidiary of Nuveen Investments, Inc. (Nuveen), assumed the role of investment adviser for the Funds from IQ Investment Advisers LLC (IQ Advisors) following a vote by shareholders of each Fund. The transition from IQ Advisors to the Advisor did not result in any change to the Funds investment objectives or principal investment strategies.
Effective January 1, 2011, Nuveen Asset Management, the Funds Adviser, has changed its name to Nuveen Fund Advisors, Inc. (Nuveen Fund Advisors). Concurrently, Nuveen Fund Advisors has formed a wholly-owned subsidiary, Nuveen Asset Management, LLC, to house its portfolio management capabilities. Nuveen Asset Management, LLC now serves as the sub-adviser for Global Income & Currency (GCF).
NASDAQ Premium Income & Growths (QQQX) investment objective is high current income and capital appreciation. The Fund pursues its investment objective principally through a two-part strategy. First, the Fund will invest, under normal circumstances, substantially all of its net assets in a portfolio of investments (the NASDAQ Investment Portfolio) designed to closely track the performance, before fees and expenses, of the NASDAQ 100® Index. Second, in attempting to generate premium income and reduce the volatility of the Funds returns, with the intent of improving the Funds risk-adjusted returns, the Fund will write (sell) call options on the Index, which are fully collateralized by the NASDAQ Investment Portfolio. Under normal circumstances, the notional value of the written options is not expected to exceed 50% of the Funds net assets.
Dow 30SM Premium & Dividend Incomes (DPD) investment objective is to provide a high level of current income, with a secondary objective of capital appreciation. The Fund pursues its investment objective principally through a two-part strategy. First, the Fund will invest, under normal circumstances, substantially all of its net assets (including the proceeds of any borrowings for investment purposes) in the thirty stocks included in the Dow Jones Industrial AverageSM (DJIA) (the Stocks) in approximately the amounts such Stocks are weighted in the DJIA and/or in other securities or financial instruments that are intended to correlate with the DJIA (the Other Instruments). Second, the Fund will write (sell) covered call options on some or all of the Stocks or Other Instruments.
Dow 30SM Enhanced Premium & Incomes (DPO) investment objective is to provide a high level of premium and dividend income and the potential for capital appreciation. Under normal circumstances, the Fund will purchase all of the thirty common stocks included in the DJIA, weighted in approximately the same proportions as in the DJIA (Dow Stocks). The Fund will also purchase other securities or financial instruments, primarily swap contracts, designed to provide additional investment exposure (i.e., leverage) to the return of the Dow Stocks (Additional Dow Exposure). The Dow Stocks and the Additional Dow Exposure are collectively referred to as Total Dow Exposure. The Fund also will engage in certain option strategies, primarily consisting of writing (selling) covered call options on some or all of the Dow Stocks (Options). The Options will be written on approximately 50% (or less) of the Total Dow Exposure at the time they are written. As a result, generally 50% (or more) of the Funds Total Dow Exposure will have the potential for full capital appreciation. The portion of the Total Dow Exposure subject to the Options will be limited in the amount of capital appreciation that may be obtained.
Global Income & Currencys (GCF) investment objective is to provide current income while also seeking total returns. The Fund seeks to achieve its investment objective by constructing and actively managing a portfolio of investments that provides long and short exposure to selected foreign currencies. The Funds portfolio will be comprised of short-term fixed income securities and investments in other instruments that provide long and short exposure to the eligible currencies selected by the Funds sub-adviser using the investment process described in its prospectus. In implementing its investment strategy, the Funds sub-adviser begins the investment process by investing all or substantially all of the Funds assets primarily in short-term debt securities, including, but not limited to, foreign sovereign debt securities, securities issued by U.S. Government agencies and instrumentalities, debt obligations of corporate issuers and other debt securities that the Funds sub-adviser believes are appropriate investments for the Fund (the Debt Securities). Following its investment in the Debt Securities, the Funds sub-adviser generally will make investments in forward contracts and other instruments that provide exposure to selected foreign currencies.
36 | Nuveen Investments |
Significant Accounting Policies
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 (U.S. GAAP).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the NASDAQ National Market (NASDAQ) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the mean between the quoted bid and ask prices and are generally classified as Level 1. Investments in open-end funds are valued at their respective net asset values on the valuation date. These investment vehicles are generally classified as Level 1. Prices of certain American Depository Receipts (ADR) held by the Fund that trade in the United States are valued based on the last traded price, official closing price, or mean between the most recent bid and ask prices of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time foreign currencies may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the NYSE. These triggers generally represent a transfer from a Level 1 to a Level 2 security.
Prices of fixed-income securities, total return swaps and forward foreign currency exchange contracts are provided by a pricing service approved by the Funds Board of Directors. These securities are generally classified as Level 2. Prices of fixed-income securities are based on the mean between the bid and asked prices. When price quotes are not readily available for fixed-income securities, total return swaps and forward foreign currency exchange contracts the pricing service establishes a securitys fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligors credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Highly rated zero coupon fixed-income securities, like U.S. Treasury Bills, issued with maturities of one year or less, are valued using the amortized cost method when 60 days or less remain until maturity. With amortized cost, any discount or premium is amortized each day, regardless of the impact of fluctuating rates on the market value of the security. These securities will generally be classified as Level 2.
The values of exchange-traded options are based on the mean of the bid and ask prices. Exchange-traded options are generally classified as Level 1. Options traded in the over-the-counter market are valued using market implied volatilities and are generally classified as Level 2.
Euro dollar time deposits are valued at contract amount plus interest, which approximates market value. These securities are generally classified as Level 1.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Funds net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the securitys fair value. As a general principle, the fair value of an issue of securities would appear to be the amount that the owner might reasonably expect to receive for them it in a current sale. A variety of factors may be considered in determining the fair value of such these securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligors credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds Board of Directors or its designee.
Refer to Footnote 2 Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
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, which is the same basis for federal income tax purposes. Investments purchased on a when-issued/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 December 31, 2010, the Funds had no outstanding when-issued/delayed delivery purchase commitments.
Nuveen Investments | 37 |
Notes to
Financial Statements (continued)
Investment Income
Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its investment company taxable income to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. In any year when a Fund realizes net capital gains, each Fund may choose to distribute all or a portion of its net capital gains to shareholders, or alternatively, to retain all or a portion of its net capital gains and pay federal corporate income taxes on such retained gains.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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 U.S. GAAP.
NASDAQ Premium Income & Growth (QQQX) and Global Income & Currency (GCF) make quarterly cash distributions and Dow 30SM Premium & Dividend Income (DPD) and Dow 30SM Enhanced Premium & Income (DPO) make monthly to shareholders of a stated dollar amount per share. Subject to approval and oversight by the Funds Board of Directors, each Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of the Funds investment strategy through regular quarterly/monthly distributions (a Managed Distribution Program). Total distributions during a calendar year generally will be made from a Funds net investment income, net realized capital gains and net unrealized capital gains in the Funds portfolio, if any. The portion of distributions paid attributed to net unrealized gains, if any, is distributed from the Funds assets and is treated by shareholders as a non-taxable distribution (Return of Capital) for tax purposes. In the event that total distributions during a calendar year exceed the Funds total return on net asset value, the difference will reduce net asset value per share. If the Funds total return on net asset value exceeds total distributions during a calendar year, the excess will be reflected as an increase in net asset value per share. The final determination of the source and character of all distributions for the fiscal year are made after the end of the fiscal year and are reflected in the financial statements contained in the annual report as of December 31 each year.
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions, including foreign currency forwards, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern time. Investments, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, forward foreign currency exchange contracts, options written, swaps, and swaptions written are recognized as a component of Net realized gain (loss) from investments and foreign currency, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of Change in unrealized appreciation (depreciation) of investments and foreign currency, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with forward foreign currency exchange contracts, options written, swaps and swaptions written are recognized as a component of Change in net unrealized appreciation (deprecation) of forward foreign currency exchange contracts, options written, swaps and swaptions written, respectively when applicable.
38 | Nuveen Investments |
Forward Foreign Currency Exchange Contracts
Each Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives and is authorized to enter into forward foreign currency exchange contracts in an attempt to manage such risk under two circumstances: (i) when a Fund enters into a contract for the purchase or sale of a security denominated in a foreign currency to lock in the U.S. exchange rate of the transaction, with such period being a short-dated contract covering the period between transaction date and settlement date; or (ii) when the Adviser, believes that the currency of a particular foreign country may experience a substantial movement against the U.S. dollar or against another foreign currency. Forward foreign currency exchange contracts are valued daily at the forward rate and are recognized as a componet of Unrealized appreciation or depreciation on forward foreign currency exchange contracts on the Statement of Assets and Liabilities. The change in value of the contracts during the reporting period is recognized as a component of Change in net unrealized appreciation (depreciation) of forward foreign currency exchange contracts on the Statement of Operations. When the contract is closed or offset with the same counterparty, the Fund recognizes the difference between the value of the contract at the time it was entered and the value at the time it was closed or offset as a componet of Net realized gain (loss) from forward foreign currency exchange contracts on the Statement of Operations.
Forward foreign currency exchange contracts will generally not be entered into for terms greater than three months, but may have maturities of up to six months or more. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of a Funds investment securities; however, it does establish a rate of exchange that can be achieved in the future. The use of forward foreign currency exchange contracts involves the risk that anticipated currency movements will not be accurately predicted. A forward foreign currency exchange contract would limit the risk of loss due to a decline in the value of a particular currency; however, it also would limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the amount of unrealized appreciation or depreciation reflected on the Statement of Assets and Liabilities.
Global Income & Currency (GCF) entered into forward foreign currency exchange contracts during the fiscal year ended December 31, 2010, buying currencies expected to appreciate and selling currencies expected to depreciate. The average number of forward foreign currency exchange contracts outstanding during the fiscal year ended December 31, 2010, were as follows:
Global Income & Currency (GCF) |
||||
Average number of forward foreign currency exchange contracts outstanding |
16 |
Refer to Footnote 3 Derivative Instruments and Hedging Activities for further details on forward foreign currency exchange contract activity.
Options Transactions
Each Fund is subject to equity price risk in the normal course of pursuing its investment objectives and is authorized to purchase and write (sell) call and put options on securities, futures, swaps (swaptions) or currencies. The purchase of options involves the risk of loss of all or a part of the cash paid for the options (the premium). The market risk associated with purchasing options is limited to the premium paid. The counterparty credit risk of purchasing options, however, needs to take into account the current value of the option, as this is the performance expected from the counterparty. When the Fund purchases an option, an amount equal to the premium paid (the premium plus commission) is recognized as a component of Call and/or Put options purchased, at value on the Statement of Asset and Liabilities. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recognized as a component of Call options written, at value on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option until the option expires or the Fund enters into a closing purchase transaction. The changes in the value of options purchased during the fiscal period are recognized as a component of Change in net unrealized appreciation (depreciation) of call and/or put options purchased on the Statement of Operations. The changes in values of the options written during the reporting period are recognized as a component of Change in net unrealized appreciation (depreciation) of options written on the Statement of Operations. When an option is exercised or expires or the Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on executing a closing purchase transaction, including commission, is recognized as a component of Net realized gain (loss) from options purchased and/or written on the Statement of Operations. The Fund, as writer of an option, has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
The following Funds wrote call options during the fiscal year ended December 31, 2010, to enhance returns while foregoing some upside potential.
The Funds did not purchase call or put options during the fiscal year ended December 31, 2010. The average notional amount of call option written during the fiscal year ended December 31, 2010, were as follows:
NASDAQ* Premium Income & Growth (QQQX) |
Dow 30SM** Premium & Dividend Income (DPD) |
Dow 30SM** Enhanced Premium & Income (DPO) |
||||||||||
Average notional amount of call options written |
$ | (125,912,500 | ) | $ | (76,675,488 | ) | $ | (171,849,106 | ) |
* | The Fund wrote call options on a broad equity index. |
** | The Fund wrote call options on individual stocks. |
Refer to Footnote 3 Derivative Instruments and Hedging Activities for further details on options activity.
Nuveen Investments | 39 |
Notes to
Financial Statements (continued)
Swap Contracts
Each Fund is authorized to enter into swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).
Each Fund is subject to equity price risk in the normal course of pursuing its investment objectives and may enter into a total return swap contract to manage its exposure to the market or certain sectors of the market, or to create exposure to certain debt securities to which it is otherwise not exposed. Total return swap contracts involve commitments to pay interest in exchange for a market-linked return, both based on specified notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of offsetting the interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty.
Total return swap contracts are valued daily. The Funds accrue daily the periodic payments expected to be paid and received on each swap contract and recognize the daily change in the market value of the Funds contractual rights and obligations under the contracts. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of Unrealized appreciation or depreciation on total return swaps with the change during the fiscal period recognized on the Statement of Operations as a component of Change in net unrealized appreciation (depreciation) of swaps. Income received or paid by a Fund is recognized as a component of Net realized gain (loss) from swaps on the Statement of Operations, in addition to the net realized gains or losses recognized upon the termination of the swap contract, and are equal to the difference between the Funds basis in the swap and the proceeds from (or cost of) the closing transaction. The amount of the payment obligation is based on the notional amount of the swap contract. Payments received or made at the beginning of the measurement period, if any, are recognized as a component of Total return swap premiums paid and/or received on the Statement of Assets and Liabilities.
During the fiscal year ended December 31, 2010, Dow 30SM Enhanced Premium & Income (DPO) entered into total return swap contracts that receive the total return of the DJIA while paying a floating rate of interest; adding leverage and equity exposure to the Fund. The average notional amount of total return swap contacts outstanding during the fiscal year ended December 31, 2010, were as follows:
Dow 30SM Enhanced Premium & Income (DPO) |
||||
Average notional amount of total return swaps outstanding |
$ | 85,720,239 |
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Funds exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchanges clearing house, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Funds cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds
40 | Nuveen Investments |
maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP 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.
2. Fair Value Measurements
In determining the fair value of each Funds investments, various inputs are used. These inputs are summarized in the three broad levels listed below:
Level 1 Quoted prices in active markets for identical securities.
Level 2 Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 Significant unobservable inputs (including managements assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Funds fair value measurements as of December 31, 2010:
NASDAQ Premium Income & Growth (QQQX) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: |
||||||||||||||||
Common Stocks |
$ | 273,887,252 | $ | | $ | | $ | 273,887,252 | ||||||||
Derivatives: |
||||||||||||||||
Call Options Written |
(3,142,500 | ) | | | (3,142,500 | ) | ||||||||||
Total |
$ | 270,744,752 | $ | | $ | | $ | 270,744,752 | ||||||||
Dow 30SM Premium & Dividend Income (DPD) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: |
||||||||||||||||
Common Stocks |
$ | 172,630,031 | $ | | $ | | $ | 172,630,031 | ||||||||
Short-Term Investments |
| 1,999,904 | | 1,999,904 | ||||||||||||
Derivatives: |
||||||||||||||||
Call Options Written |
| (2,054,160 | ) | | (2,054,160 | ) | ||||||||||
Total |
$ | 172,630,031 | $ | (54,256 | ) | $ | | $ | 172,575,775 | |||||||
Dow 30SM Enhanced Premium & Income (DPO) |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: |
||||||||||||||||
Common Stocks |
$ | 283,229,510 | $ | | $ | | $ | 283,229,510 | ||||||||
Short-Term Investments |
4,946,158 | 7,999,472 | | 12,945,630 | ||||||||||||
Derivatives: |
||||||||||||||||
Call Options Written |
| (4,663,114 | ) | | (4,663,114 | ) | ||||||||||
Total Return Swaps* |
| 11,145,001 | | 11,145,001 | ||||||||||||
Total |
$ | 288,175,668 | $ | 14,481,359 | $ | | $ | 302,657,027 | ||||||||
Global Income & Currency (GCF) |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments: |
||||||||||||||||
Short-Term Investments |
$ | 1,370,086 | $ | 87,036,726 | $ | | $ | 88,406,812 | ||||||||
Derivatives: |
||||||||||||||||
Forward Foreign Currency Exchange Contracts |
| 1,246,980 | | 1,246,980 | ||||||||||||
Total |
$ | 1,370,086 | $ | 88,283,706 | $ | | $ | 89,653,792 |
* Represents net unrealized appreciation (depreciation).
During the fiscal year ended December 31, 2010, the Funds recognized no significant transfers to/from Level 1, Level 2 or Level 3.
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 General Information and Significant Accounting Policies.
Nuveen Investments | 41 |
Notes to
Financial Statements (continued)
The following tables present the fair value of all derivative instruments held by the Funds as of December 31, 2010, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure.
NASDAQ Premium Income & Growth (QQQX)
Location on the Statement of Assets and Liabilities |
||||||||||||
Asset Derivatives |
Liability Derivatives |
|||||||||||
Underlying Risk Exposure |
Derivative Instrument |
Location | Value | Location | Value | |||||||
Equity Price |
Options | |
$ | Call options written, at value | $ | 3,142,500 |
Dow 30SM Premium & Dividend Income (DPD)
Location on the Statement of Assets and Liabilities |
||||||||||||
Asset Derivatives |
Liability Derivatives |
|||||||||||
Underlying Risk Exposure |
Derivative Instrument |
Location | Value | Location | Value | |||||||
Equity Price |
Options | | $ | Call options written, at value | $ | 2,054,160 |
Dow 30SM Enhanced Premium & Income (DPO)
Location on the Statement of Assets and Liabilities |
||||||||||||
Asset Derivatives |
Liability Derivatives |
|||||||||||
Underlying Risk Exposure |
Derivative Instrument |
Location | Value | Location | Value | |||||||
Equity Price |
Options |
|
$ | Call options written, at value |
$ | 4,663,114 | ||||||
Equity Price |
Swaps | Unrealized appreciation on total return swaps* |
11,145,001 | Unrealized depreciation on total return swaps |
|
Location on the Statement of Assets and Liabilities |
||||||||||||
Global Income & Currency (GCF) |
Asset Derivatives |
Liability Derivatives |
||||||||||
Underlying Risk Exposure |
Derivative Instrument |
Location | Value | Location | Value | |||||||
Foreign Currency Exchange Rate |
Forward Foreign Currency Exchange Contracts | Unrealized appreciation on forward foreign currency exchange contracts* | $3,587,271 | Unrealized depreciation on forward foreign currency exchange contracts* | $ | 2,340,291 |
* Value represents cumulative gross appreciation (depreciation) as reported in the Funds Portfolio of Investments.
The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended December 31, 2010, on derivative instruments, as well as the primary risk exposure associated with each.
Net Realized Gain (Loss) from Forward Foreign Currency Exchange Contracts | Global Income & Currency (GCF) |
|||
Risk Exposure |
||||
Foreign Currency Exchange Rate |
$ | 1,451,739 |
Net Realized Gain (Loss) from Call Options Written | NASDAQ Premium Income & Growth (QQQX) |
Dow 30SM Premium & Dividend Income (DPD) |
Dow 30SM Enhanced Premium & Income (DPO) |
|||||||||
Risk Exposure |
||||||||||||
Equity Price |
$ | (7,001,781 | ) | $ | 1,788,425 | $ | 4,029,546 |
Net Realized Gain (Loss) from Swaps | Dow 30SM Enhanced Premium & Income (DPO) |
|||
Risk Exposure |
||||
Equity Price |
$ | 16,109,410 |
42 | Nuveen Investments |
Change in Net Unrealized Appreciation (Depreciation) of Forward Foreign Currency Exchange Contracts |
Global Income & Currency (GCF) |
|||
Risk Exposure |
||||
Foreign Currency Exchange Rate |
$ | 2,588,463 |
Change in Net Unrealized Appreciation (Depreciation) of Call Options Written | NASDAQ Premium Income & Growth (QQQX) |
Dow
30SM Premium & Dividend Income (DPD) |
Dow 30SM Income |
|||||||||
Risk Exposure |
||||||||||||
Equity Price |
$ | 92,906 | $ | (1,731,158 | ) | $ | (3,887,100 | ) |
Change in Net Unrealized Appreciation (Depreciation) of Swaps | Dow 30SM Enhanced Premium & Income (DPO) |
|||
Risk Exposure |
||||
Equity Price |
$ | (4,087,527 | ) |
4. Fund Shares
During the fiscal year ended December 31, 2010, the Funds Board of Directors approved a share repurchase program for QQQX, DPD and DPO. GCF, as an interval Fund, is required to repurchase, at least annually, 5% to 25% of its outstanding shares at NAV (less repurchase fee not to exceed 2%).
QQQX, DPD and DPO have not repurchased any of their outstanding shares since the inception of their repurchase programs.
Transactions in Fund shares were as follows:
NASDAQ Premium Income & Growth (QQQX) |
Dow 30SM Premium & Dividend Income (DPD) |
Dow 30SM Enhanced Premium & Income (DPO) |
Global Income & Currency (GCF) |
|||||||||||||||||||||||||||||
Year Ended 12/31/10 |
Year Ended 12/31/09 |
Year Ended 12/31/10 |
Year Ended 12/31/09 |
Year Ended 12/31/10 |
Year Ended 12/31/09 |
Year Ended 12/31/10 |
Year Ended 12/31/09 |
|||||||||||||||||||||||||
Shares issued to shareholders due to reinvestment of distributions |
| | 104,158 | | 114,689 | | | | ||||||||||||||||||||||||
Shares repurchased |
| | | | | | (626,957 | ) | 329,977 |
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions) for the fiscal year ended December 31, 2010, were as follows:
NASDAQ |
Dow 30SM |
Dow 30SM Enhanced Premium & Income (DPO) |
Global Income & Currency (GCF) |
|||||||||||||
Purchases |
$ | 84,876,965 | $ | | $ | | $ | | ||||||||
Sales and maturities |
114,220,315 | 7,165,551 | 7,466,151 | |
Transactions in call options written during the fiscal year ended December 31, 2010, were as follows:
NASDAQ Premium Income & Growth (QQQX) |
Dow 30SM Premium & Dividend Income (DPD) |
Dow 30SM Enhanced Premium & Income (DPO) |
||||||||||||||||||||||
Number of Contracts |
Premiums Received |
Number of Contracts |
Premiums Received |
Number of Contracts |
Premiums Received |
|||||||||||||||||||
Call options outstanding, beginning of year |
650 | $ | 2,121,886 | 17,010 | $ | 1,318,794 | 37,700 | $ | 2,927,534 | |||||||||||||||
Call options written |
3,900 | 15,316,323 | 155,400 | 10,594,372 | 348,000 | 23,745,542 | ||||||||||||||||||
Call options terminated in closing purchase transactions |
(3,725 | ) | (13,980,868 | ) | (55,250 | ) | (4,124,254 | ) | (123,100 | ) | (9,198,390 | ) | ||||||||||||
Call options expired |
(225 | ) | (912,049 | ) | (101,360 | ) | (6,737,249 | ) | (226,600 | ) | (15,077,926 | ) | ||||||||||||
Call options outstanding, end of year |
600 | $ | 2,545,292 | 15,800 | $ | 1,051,663 | 36,000 | $ | 2,396,760 |
Nuveen Investments | 43 |
Notes to
Financial Statements (continued)
6. 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. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At December 31, 2010, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:
NASDAQ |
Dow 30SM |
Dow 30SM |
Global |
|||||||||||||
Cost of investments |
$ | 205,245,697 | $ | 146,684,495 | $ | 310,818,430 | $ | 87,184,163 | ||||||||
Gross unrealized: |
||||||||||||||||
Appreciation |
$ | 81,135,828 | $ | 38,063,036 | $ | 24,863,982 | $ | 1,388,173 | ||||||||
Depreciation |
(12,494,273 | ) | (10,117,596 | ) | (39,507,272 | ) | (165,524 | ) | ||||||||
Net unrealized appreciation (depreciation) of investments |
$ | 68,641,555 | $ | 27,945,440 | $ | (14,643,290 | ) | $ | 1,222,649 |
Permanent differences, primarily due to return of capital distributions, foreign currency reclasses, net operating losses and tax basis earning and profits adjustments resulted in reclassifications among the Funds components of net assets at December 31, 2010, the Funds tax year-end, as follows:
NASDAQ |
Dow 30SM |
Dow 30SM |
Global |
|||||||||||||
Paid-in surplus |
$ | (24,026,179 | ) | $ | (12,117,505 | ) | $ | (24,185,138 | ) | $ | (3,092,476 | ) | ||||
Undistributed (Over-distribution of) net investment income |
24,026,179 | 12,117,505 | 24,185,138 | 5,717,810 | ||||||||||||
Accumulated net realized gain (loss) |
| | | (2,625,334 | ) |
The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2010, the Funds tax year end, were as follows:
NASDAQ |
Dow 30SM |
Dow 30SM |
Global |
|||||||||||||
Undistributed net ordinary income |
$ | | $ | | $ | | $ | | ||||||||
Undistributed net long-term capital gains |
| | | |
The tax character of distributions paid during the Funds tax years ended December 31, 2010 and December 31, 2009, was designated for purposes of the dividends paid deduction as follows:
2010 | NASDAQ |
Dow 30SM |
Dow 30SM |
Global |
||||||||||||
Distributions from net ordinary income* |
$ | | $ | 4,102,297 | $ | 17,310,225 | $ | 4,697,479 | ||||||||
Distributions from net long-term capital gains |
| | | | ||||||||||||
Return of capital |
23,314,917 | 10,625,600 | 10,867,638 | |
2009 | NASDAQ Premium Income & Growth (QQQX) |
Dow 30SM |
Dow 30SM |
Global |
||||||||||||
Distributions from net ordinary income* |
$ | | $ | 3,012,214 | $ | 5,384,581 | $ | | ||||||||
Distributions from net long-term capital gains |
| | | | ||||||||||||
Return of capital |
33,880,983 | 18,136,376 | 49,060,320 | 5,145,167 |
* Net ordinary income consists of net taxable income derived from dividends and interest, and current year earnings and profits attributable to realized gains.
44 | Nuveen Investments |
At December 31, 2010, the Funds tax year end, the Funds 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:
NASDAQ Premium Income & Growth (QQQX) |
Dow 30SM Premium & Dividend Income (DPD) |
Dow 30SM |
Global |
|||||||||||||
Expiration: |
||||||||||||||||
December 31, 2015 |
$ | 4,607,477 | $ | | $ | | $ | | ||||||||
December 31, 2016 |
| | | 3,232,706 | ||||||||||||
December 31, 2017 |
14,092,780 | 7,972,909 | 70,689,942 | 2,772 | ||||||||||||
December 31, 2018 |
4,114,782 | | | | ||||||||||||
Total |
$ | 22,815,039 | $ | 7,972,909 | $ | 70,689,942 | $ | 3,235,478 |
During the tax year ended December 31, 2010, the following Funds utilized capital loss carryforwards as follows:
Dow 30SM Premium & Dividend Income (DPD) |
Dow 30SM Enhanced Premium & Income (DPO) |
Global Income & Currency (GCF) |
||||||||||
Utilized capital loss carryforwards |
$ | 1,491,905 | $ | 13,317,500 | $ | 3,258,495 |
7. Management Fees and Other Transactions with Affiliates
During the period January 1, 2010, through October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD), Dow 30SM Enhanced Premium & Income (DPO) and Global Income & Currency (GCF), and the period January 1, 2010, through October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), each Fund was entered into an Investment Advisory and Management Agreement with IQ Advisors, an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. (ML & Co.), which is a wholly-owned subsidiary of Bank of America Corporation (Bank of America). IQ Advisors was responsible for the investment advisory, management and administrative services to the Funds. In addition, IQ Advisors provided the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Funds. For such services, each Fund paid a monthly fee at an annual rate equal to .90% of the average daily value of the Funds net assets plus borrowings for leverage and other investment purposes.
During the period January 1, 2010, through October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD) and Dow 30SM Enhanced Premium & Income (DPO), and the period January 1, 2010, through October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), IQ Advisors was entered into a Sub-advisory Agreement for each Fund with Nuveen HydePark Group, LLC (HydePark) a subsidiary of Nuveen. Pursuant to the agreement, HydePark provided certain investment advisory services to IQ Advisors with respect to each Fund. For such services, IQ Advisors paid HydePark a monthly fee at an annual rate equal to .39% of the average daily value of the Funds net assets plus borrowings for leverage and other investment purposes. There was no increase in aggregate fees paid by the Funds for these services.
During the period January 1, 2010, through October 6, 2010, for Global Currency and Income (GCF), IQ Advisors was entered into a Sub-advisory Agreement with Nuveen Asset Management, a wholly-owned subsidiary of Nuveen. Pursuant to the agreement, Nuveen Asset Management provided certain investment advisory services to IQ Advisors with respect to the Fund. For such services, IQ Advisors paid Nuveen Asset Management a monthly fee at an annual rate equal to .40% of the average daily value of the Funds net assets plus borrowings for leverage and other investment purposes. There was no increase in aggregate fees paid by the Fund for these services.
During the period January 1, 2010, through October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD), Dow 30SM Enhanced Premium & Income (DPO) and Global Income & Currency (GCF), and the period January 1, 2010, through October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), IQ Advisors was entered into an Administration Agreement for each Fund with Princeton Administrators, LLC (the Administrator). Each Administration Agreement provided that IQ Advisors pay the Administrator a fee from its investment advisory fee at an annual rate equal to .12% of the average daily value of the Funds net assets plus borrowings for leverage and other investment purposes for the performance of administrative and other services necessary for the operation of the Fund. There was no increase in the aggregate fees paid by the Fund for these services. The Administrator is an indirect, wholly-owned subsidiary of BlackRock, Inc. (BlackRock). ML & Co. has a substantial financial interest in BlackRock.
During the period January 1, 2010, through October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD), Dow 30SM Enhanced Premium & Income (DPO) and Global Income & Currency (GCF), and the period January 1, 2010, through October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), certain officers of each Fund were officers and/or directors of IQ Advisors, Bank of America and/or ML & Co. or their affiliates.
On October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD), Dow 30SM Enhanced Premium & Income (DPO) and Global Income & Currency (GCF), and on October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), each Fund entered into an Investment Management Agreement with Nuveen Asset Management. Each Funds management fee consists of two components a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
Nuveen Investments | 45 |
Notes to
Financial Statements (continued)
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
Average Daily Managed Assets | NASDAQ Premium Income & Growth (QQQX) Dow 30SM Premium & Dividend Income (DPD) Dow 30SM Enhanced Premium & Income (DPO) Global Income & Currency (GCF) Fund-Level Fee Rate |
|||
For the first $500 million |
0.7000 | % | ||
For the next $500 million |
0.6750 | |||
For the next $500 million |
0.6500 | |||
For the next $500 million |
0.6250 | |||
For managed assets over $2 billion |
0.6000 |
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
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%.
On October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD) and Dow 30SM Enhanced Premium & Income (DPO), and on October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), the Adviser entered into an Investment Sub-Advisory Agreement for each Fund with HydePark.
On January 1, 2011, the Advisor entered into an Investment Sub-Advisory Agreement with Nuveen Asset Management, LLC for Global Income & Currency (GCF).
HydePark and Nuveen Asset Management, LLC are compensated for their services to each Fund from the management fee paid to the Adviser. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities.
The Fund pays no compensation directly to those of its directors who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Fund from the Adviser or its affiliates. The Board of Directors has adopted a deferred compensation plan for independent directors that enables directors 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.
For the period October 6, 2010, through August 1, 2012, the Adviser has agreed to reimburse expenses of Dow 30SM Premium & Dividend Income (DPD), Dow 30SM Enhanced Premium & Income (DPO) and Global Income & Currency (GCF) (including management fees and other fees and expenses) so that the Funds total operating expenses do not exceed such Funds total operating expense for the last fiscal year prior to October 6, 2010.
For the period October 28, 2010, through August 1, 2012, the Adviser has agreed to reimburse expenses of NASDAQ Premium Income & Growth (QQQX), (including management fees and other fees and expenses) so that the Funds total operating expenses do not exceed such Funds total operating expense for the last fiscal year prior to October 28, 2010.
8. Subsequent Events
Distributions to Shareholders
Effective January 1, 2011, Dow 30SM Premium & Dividend Income (DPD) and Dow 30SM Enhanced Premium & Income (DPO) will begin paying distributions to shareholders quarterly, with their first quarterly distributions payable to shareholders during April 2011.
46 | Nuveen Investments |
Board Members & Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at ten. None of the board members who are not interested persons of the Funds (referred to herein as independent board members) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members 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.
Name, Birthdate and Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term(1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Board Member | ||||||
INDEPENDENT BOARD MEMBERS: | ||||||||||
¢ ROBERT P. BREMNER(2)
8/22/40 333 W. Wacker Drive Chicago, IL 60606 |
Chairman of the Board and Board Member |
1996 |
Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 244 | ||||||
¢ JACK B. EVANS
10/22/48 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
1999 |
President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the 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. | 244 | ||||||
¢ WILLIAM C. HUNTER
3/6/48 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2004 |
Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, 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); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 244 | ||||||
¢ DAVID J. KUNDERT(2)
10/28/42 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2005 |
Director, Northwestern Mutual Wealth Management Company; retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and chair of Investment Committee, Greater Milwaukee Foundation. | 244 |
Nuveen Investments | 47 |
Board Members & Officers (Unaudited) (continued)
Name, Birthdate and Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term(1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Board Member | ||||||
INDEPENDENT BOARD MEMBERS (continued): | ||||||||||
¢ WILLIAM J. SCHNEIDER(2)
9/24/44 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
1997 |
Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Mid-America Health System board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | 244 | ||||||
¢ JUDITH M. STOCKDALE
12/29/47 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
1997 |
Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 244 | ||||||
¢ CAROLE E. STONE(2)
6/28/47 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2007 |
Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 244 | ||||||
¢ VIRGINIA L. STRINGER
8/16/44 333 West Wacker Drive Chicago, IL 60606 |
Board Member |
2011 |
Board Member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institutes Independent Directors Council; governance consultant and non-profit board member; former Owner and President, Stragetic Management Resources, Inc. a management consulting firm; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). |
244 | ||||||
¢ TERENCE J. TOTH(2)
9/29/59 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2008 |
Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 244 |
48 | Nuveen Investments |
Name, Birthdate and Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term(1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Board Member | ||||||||
INTERESTED BOARD MEMBER: | ||||||||||||
¢ JOHN P. AMBOIAN(3)
6/14/61 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2008 |
Chief Executive Officer and Chairman (since 2007) and Director (since 1999) of Nuveen Investments, Inc.; Chief Executive Officer (since 2007) of Nuveen Investments Advisors, Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, Inc. | 244 | ||||||||
Name, Birthdate and Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term(1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Officer | ||||||||
OFFICERS of the FUNDS: | ||||||||||||
¢ GIFFORD R. ZIMMERMAN
9/9/56 333 W. Wacker Drive Chicago, IL 60606 |
Chief Administrative Officer |
1988 |
Managing Director (since 2002), Assistant Secretary and Associate General Counsel of Nuveen Investments, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary, of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2010) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 244 | ||||||||
¢ WILLIAM ADAMS IV
6/9/55 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2007 |
Senior Executive Vice President, Global Structured Products (since 2010), formerly, Executive Vice President (1999-2010) of Nuveen Investments, LLC; Co-President of Nuveen Fund Advisors, Inc. (since 2011); Managing Director (since 2010) of Nuveen Commodities Asset Management, LLC. | 131 | ||||||||
¢ MARGO L. COOK
4/11/64 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2009 |
Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, Inc. (since 2011); previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 244 |
Nuveen Investments | 49 |
Board Members & Officers (Unaudited) (continued)
Name, Birthdate and Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term(1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Officer | ||||||||
OFFICERS of the FUNDS (continued): | ||||||||||||
¢ LORNA C. FERGUSON
10/24/45 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
1998 |
Managing Director (since 2004) of Nuveen Investments, LLC and Managing Director (since 2005) of Nuveen Fund Advisors, Inc. | 244 | ||||||||
¢ STEPHEN D. FOY
5/31/54 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Controller |
1998 |
Senior Vice President (since 2010), formerly, Vice President (1993- 2010) and Funds Controller (since 1998) of Nuveen Investments, LLC; Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc., Certified Public Accountant. | 244 | ||||||||
¢ SCOTT S. GRACE
8/20/70 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Treasurer |
2009 |
Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Investments, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, Inc., Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., Nuveen Investments Holdings, Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanleys Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 244 | ||||||||
¢ WALTER M. KELLY
2/24/70 333 W. Wacker Drive Chicago, IL 60606 |
Chief Compliance Officer and Vice President |
2003 |
Senior Vice President (since 2008), Vice President (2006-2008) of Nuveen Investments, LLC; Senior Vice President (since 2008) and Assistant Secretary (since 2008) of Nuveen Fund Advisors, Inc. | 244 | ||||||||
¢ TINA M. LAZAR
8/27/61 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2002 |
Senior Vice President (since 2009), formerly, Vice President of Nuveen Investments, LLC (1999-2009); Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, Inc. | 244 |
50 | Nuveen Investments |
Name, Birthdate and Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term(1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen by Officer | ||||||
OFFICERS of the FUNDS (continued): | ||||||||||
¢ LARRY W. MARTIN
7/27/51 333 West Wacker Drive Chicago, IL 60606 |
Vice President and Assistant Secretary |
1997 |
Senior Vice President (since 2010), formerly, Vice President (1993-2010), Assistant Secretary and Assistant General Counsel of Nuveen Investments, LLC; Senior Vice President (since 2011) of Nuveen Asset Management, LLC: Senior Vice President (since 2010), formerly, Vice President (2005-2010), and Assistant Secretary of Nuveen Investments, Inc.; Senior Vice President (since 2010), formerly Vice President (2005-2010), and Assistant Secretary (since 1997) of Nuveen Fund Advisors, Inc., Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002), NWQ Investment Management Company, LLC, Symphony Asset Management, LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006), Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); Vice President and Assistant Secretary of Nuveen Commodities Asset Management, LLC (since 2010). | 244 | ||||||
¢ KEVIN J. MCCARTHY
3/26/66 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Secretary |
2007 |
Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Investments, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | 244 | ||||||
¢ KATHLEEN L. PRUDHOMME
3/30/53 800 Nicollet Mall Minneapolis, MN 55402 |
Vice President and Assistant Secretary |
2011 |
Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, Inc.; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; formerly, Secretary of FASF (2004-2010); prior thereto, Assistant Secretary of FASF (1998-2004); Deputy General Counsel, FAF Advisors, Inc. (1998-2010). | 244 |
(1) | The Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. |
(2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of the Adviser. |
(3) | Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. |
(4) | Officers serve one year terms through August 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. |
Nuveen Investments | 51 |
Agreement Approval Process (Unaudited)
A. Background
Prior to October 6, 2010 (the First Transition Date), IQ Investment Advisors LLC (IQ Advisors) served as investment adviser to the Dow 30SM Premium & Dividend Income Fund Inc. (the Dow 30 Fund), the Dow 30SM Enhanced Premium & Income Fund Inc. (the Dow 30 Enhanced Fund) and the Global Income & Currency Fund Inc. (the Global Income Fund) and Nuveen Asset Management (NAM) served as investment sub-adviser to the Global Income Fund. Prior to October 28, 2010 (the Second Transition Date; the First Transition Date and the Second Transition Date are each a Transition Date), IQ Advisors served as investment adviser to the NASDAQ Premium Income & Growth Fund Inc. (the NASDAQ Premium Fund). In addition, Nuveen HydePark Group, LLC (HydePark) served as investment sub-adviser to the Dow 30 Fund, the Dow 30 Enhanced Fund and the NASDAQ Premium Fund (collectively, the HydePark Subadvised Funds) prior to each such Funds Transition Date and continues to serve as each HydePark Subadvised Funds investment sub-adviser pursuant to the respective New HydePark Sub-Advisory Agreement (as defined below).
IQ Advisors had determined earlier in the year 2010 to discontinue the portion of its business involving the provision of investment management services to registered investment companies, such as the Funds. In order to effect an orderly transition and continue the management of each Fund without interruption, IQ Advisors recommended to the Boards of Directors (each, a Prior Board) serving the Funds as directors at that time (each such director, a Prior Director and, collectively, the Prior Directors) to consider NAM as a candidate to assume the role of investment adviser. Accordingly, at an in-person meeting held on June 18, 2010, the Prior Directors, all of whom were not interested persons as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the 1940 Act), approved a new investment management agreement between each Fund and NAM (each, a New Management Agreement) and, with respect to each HydePark Subadvised Fund, a new sub-advisory agreement between NAM and HydePark (each, a New HydePark Sub-Advisory Agreement), and authorized their submission to the Funds respective stockholders for their consideration. No sub-advisory arrangement was proposed for the Global Income Fund at that time given that it was anticipated that NAM would manage the assets of the Fund directly. At the meetings of the stockholders of the Dow 30 Fund, the Dow 30 Enhanced Fund and the Global Income Fund held on September 30, 2010 and a meeting of the stockholders of the NASDAQ Premium Fund held on October 22, 2010, the Funds stockholders, among other things, approved the respective New Management Agreement with NAM and the stockholders of the HydePark Subadvised Funds approved the respective New HydePark Sub-Advisory Agreement, all of which subsequently became effective on the applicable Transition Date. In connection with the transition, the stockholders of the Funds at separate stockholders meetings also elected a new board of directors (each, a New Board, and each new director, a New Director and, collectively, the New Directors), who took office as of the applicable Transition Date, and each of the Funds Prior Directors resigned at such time. The considerations of the Prior Board in approving the respective New Management Agreement and, with respect to the HydePark Subadvised Funds, the respective New HydePark Sub-Advisory Agreement, are summarized in the Funds semi-annual reports dated as of June 30, 2010.
B. New Board Approval of Sub-Advisory Arrangement with Nuveen Asset Management, LLC for the Global Income Fund
Since the Transition Dates, Nuveen has engaged in an internal restructuring (the Restructuring) pursuant to which the portfolio management services provided by NAM to certain funds in the Nuveen fund complex would be transferred to Nuveen Asset Management, LLC (NAM LLC), a newly-organized wholly-owned subsidiary of NAM and NAM would change its name to Nuveen Fund Advisors, Inc. (NFA). NAM, under its new name NFA, will continue to serve as investment adviser to each Fund and, in that capacity, will continue to provide various oversight, administrative, compliance and other services to each Fund. The Restructuring will not result in any
52 | Nuveen Investments |
changes to the New HydePark Sub-Advisory Agreements under which HydePark serves as sub-adviser to the HydePark Subadvised Funds.
In connection with the Restructuring, with respect to the Global Income Fund, NFA will enter into a sub-advisory agreement with NAM LLC on behalf of such Fund (the Global Income Fund Sub-Advisory Agreement). Under the Global Income Fund Sub-Advisory Agreement, NAM LLC, subject to the oversight of NFA and the New Board, will furnish an investment program, make investment decisions for, and place all orders for the purchase and sale of securities for the portion of the Global Income Funds investment portfolio allocated to it by NFA. There will be no change in the advisory fees paid by the Global Income Fund. Rather, NFA will pay a portion of the investment advisory fee it receives to NAM LLC for its sub-advisory services. The New Directors who are not parties to the advisory agreements or interested persons of any parties (such New Directors, the New Independent Directors), reviewed the allocation of fees between NFA and NAM LLC. NFA and NAM LLC do not anticipate any reduction in the nature or level of services provided to the Global Income Fund following the Restructuring. The personnel of NFA who engaged in portfolio management activities prior to the spinoff of NAM LLC are not expected to materially change as a result of the spinoff. In light of the foregoing, at a meeting held on November 16-18, 2010, the New Directors, including a majority of the New Independent Directors, approved the Global Income Fund Sub-Advisory Agreement. Given that the Restructuring was not expected to reduce the level or nature of services provided and the advisory fees paid by the Global Income Fund were the same, the New Directors noted that the factors considered and determinations made by the Prior Directors at their meeting held on June 18, 2010 when they approved the New Management Agreement for such Fund should still be applicable.
Nuveen Investments | 53 |
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Automatic Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.
By choosing to reinvest, youll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each quarter youll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Funds shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares net asset value or 95% of the shares market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your financial advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800)257-8787.
54 | Nuveen Investments |
Notes
Nuveen Investments | 55 |
Notes
56 | Nuveen Investments |
Notes
Nuveen Investments | 57 |
Used in this Report
¢ | 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. |
¢ | Current Distribution Rate: Market yield is based on the Funds current annualized monthly/quarterly distribution divided by the Funds current market price. The Funds monthly/quarterly 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. |
¢ | 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. |
58 | Nuveen Investments |
Nuveen Investments | 59 |
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $195 billion of assets as of December 31, 2010.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef
Nuveen makes things e-simple.
It only takes a minute to sign up for e-Reports. Once enrolled, youll receive an e-mail as soon as your Nuveen Fund information is readyno more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on
your computer if you wish.
Free e-Reports right to your e-mail!
www.investordelivery.com
If you receive your Nuveen Fund distributions and statements from your financial advisor or brokerage account.
OR
www.nuveen.com/accountaccess
If you receive your Nuveen Fund distributions and statements directly from Nuveen.
Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
EAN-L-1210D
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 registrants 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/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrants Board of Directors or Trustees (Board) 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. As of January 1, 2011, the registrants audit committee financial expert is Carole E. Stone, who is independent for purposes of Item 3 of Form N-CSR.
Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the States operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the States bond-related disclosure documents and certifying that they fairly presented the States financial position; reviewing audits of various State and local agencies and programs; and coordinating the States system of internal audit and control. Prior to serving as Director, Ms Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stones position on the boards of these entities and as a member of both CBOE Holdings Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Global Income & Currency Fund Inc.
The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Funds auditor, billed to the Fund during the Funds last two full fiscal years. For engagements with PricewaterhouseCoopers LLP the Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers LLP provided to the Fund, 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 Fund 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 Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund 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 Committees 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 FUNDS AUDITOR BILLED TO THE FUND
Fiscal Year Ended | Audit Fees Billed to Fund 1 |
Audit-Related Fees Billed to Fund 2 |
Tax Fees Billed to Fund 3 |
All Other Fees Billed to Fund 4 |
||||||||||||
December 31, 2010 |
$ | 26,000 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Percentage approved pursuant to pre-approval exception |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
|
||||||||||||||||
December 31, 2009 |
$ | 30,000 | $ | 0 | $ | 8,500 | $ | 0 | ||||||||
Percentage approved pursuant to pre-approval exception |
0 | % | 0 | % | 0 | % | 0 | % |
1 Audit Fees are the aggregate fees billed for professional services for the audit of the Funds 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 for agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUNDS AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by PricewaterhouseCoopers LLP to Nuveen Fund Advisors, Inc. (formerly Nuveen Asset Management) (the Adviser), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund (Affiliated Fund Service Provider), for engagements directly related to the Funds operations and financial reporting, from October 6, 2010, the date the Adviser became the Funds investment adviser, through the fiscal year ended December 31, 2010.
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 Fund, 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 Fund 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 Committees attention, and the Committee (or its delegate) approves the services before the Funds audit is completed.
Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers |
Tax Fees Billed to Adviser and Affiliated Fund Service Providers |
All Other Fees Billed to Adviser and Affiliated Fund Service Providers |
||||||||||
October 6, 2010 |
$ | 0 | $ | 0 | $ | 0 | ||||||
Percentage approved pursuant to pre-approval exception |
0 | % | 0 | % | 0 | % |
NON-AUDIT SERVICES
The following table shows the amount of fees that PricewaterhouseCoopers LLP billed during the Funds 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 related directly to the Funds operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from PricewaterhouseCoopers LLP about any non-audit services that PricewaterhouseCoopers LLP rendered during the Funds last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PricewaterhouseCoopers LLPs independence.
Fiscal Year Ended | Total Non-Audit Fees Billed to Fund |
Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) |
Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) |
Total | ||||||||||
December 31, 2010 1 |
$ | 0 | $ | 0 | $ | 0 | $ 0 | |||||||
December 31, 2009 |
$ | 8,500 | $ | 0 | $ | 0 | $ 8,500 |
Non-Audit Fees billed to Fund for both fiscal year ends represent Tax Fees and All Other Fees billed to Fund in their respective amounts from the previous table.
1 The Fund was acquired on October 6, 2010.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Funds independent accountants and (ii) all audit and non-audit services to be performed by the Funds independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) 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.
The registrants Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). As of January 1, 2011, the members of the audit committee are Robert P. Bremner, Terence J. Toth, William J. Schneider, Carole E. Stone and David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, Inc. (NFA) is the registrants investment adviser (NFA is also referred to as the Adviser.) NFA is responsible for the selection and on-going monitoring of the Funds investment portfolio, managing the Funds business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (Sub-Adviser) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in its portfolio and related duties in accordance with the Sub-Advisers policy and procedures. The Adviser periodically monitors the Sub-Advisers voting to ensure that they are carrying out their duties. The Sub-Advisers proxy voting policies and procedures are attached to this filing as an exhibit and incorporated herein by reference.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
ITEM 8.
Nuveen Fund Advisors, Inc. (NFA) is the registrants investment adviser (NFA is also referred to as the Adviser.) NFA is responsible for the selection and on-going monitoring of the Funds investment portfolio, managing the Funds business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (NAM, LLC or Sub-Adviser), as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio managers at the Sub-Adviser:
NAM, LLC
Item 8(a)(1). PORTFOLIO MANAGER BIOGRAPHIES
Steve Lee, CFA, is the lead Portfolio Manager for the Fund. He leads the foreign Currency Sector Team of NAM, LLC. He was born in South Korea and moved to the United States when he was thirteen. He has been active in Global Macro strategies and FX trading since 1995. Most recently, he was a Senior Vice President and FX Trader with HSBC Bank USA. He began his career with Deutsche Bank on their Forward Currency desk and also worked as a portfolio manager at Vega Asset Management and Tribeca Global Investments in New York. He obtained his Bachelor of Arts, Economics and Mathematics from Yale University and his MBA in Finance from New York University, Stern School of Business.
Timothy Palmer, CFA, leads the global bond and emerging markets debt sector teams of NAM, LLC. He began working in the financial industry in 1986, and became a portfolio manager in 1990. Before joining FAF Advisors in 2003, he was a senior fixed-income portfolio manager with American Express Financial Advisors (now Ameriprise Financial). Prior to that, he served as CEO and managing principal of Atlas Capital Management, and he was a senior fixed-income portfolio manager for Investment Advisors, Inc. He earned a B.A. in economics from the University of St. Thomas and an M.B.A. in finance from Columbia Universitys Graduate School of Business. He holds the Chartered Financial Analyst (CFA) designation.
Item 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS
(ii) Number of Other Accounts
Managed and Assets by Account Type |
(iii) Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based | |||||||||||||||||||||||
(i) Name of Portfolio Manager |
Other Registered Investment Companies |
Other
Pooled Investment Vehicles |
Other Accounts |
Other Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts $ | ||||||||||||||||||
Steve Lee |
2 | $836 million* | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Tim Palmer |
6 | $1.091 billion* | 2 | $71 million* | 12 | $534 million* | 0 | 0 | 0 | 0 | 0 | 0 |
* | Assets are as of February 28, 2011. |
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Material Conflicts of Interest. NAM, LLCs Taxable Fixed Income Teams simultaneous management of the Fund and the other registered investment companies and other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities and orders placed on behalf of the Fund. NAM, LLC has adopted several policies that address such potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio trades under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time, and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager. In addition, NAM, LLC has adopted a Code of Conduct that sets forth policies regarding conflicts of interest.
Item 8(a)(3). FUND MANAGER COMPENSATION
Portfolio manager compensation consists primarily of base pay, an annual cash incentive and long term incentive payments.
Base pay is determined based upon an analysis of the portfolio managers general performance, experience, and market levels of base pay for such position. Portfolio managers are paid an annual cash incentive based upon investment performance, generally over the past one- and three-year periods unless the portfolio managers tenure is shorter. The maximum potential annual cash incentive is equal to a multiple of base pay, determined based upon the particular portfolio managers performance and experience, and market levels of base pay for such position.
The portion of the maximum potential annual cash incentive that is paid out is based upon performance relative to the portfolios benchmark and performance relative to an appropriate Lipper industry peer group. Generally, the threshold for payment of an annual cash incentive is (i) benchmark performance and (ii) median performance versus the peer group, and the maximum annual cash incentive is attained at (i) a spread over the benchmark which the Adviser believes will, over time, deliver top quartile performance and (ii) top quartile performance versus the Lipper industry peer group. Investment performance is measured on a pre-tax basis, gross of fees for a Funds results and for its Lipper industry peer group.
Payments pursuant to a long term incentive plan are paid to portfolio managers on an annual basis based upon general performance and expected contributions to the success of the Adviser.
Item 8(a)(4). OWNERSHIP OF GCF SECURITIES AS OF FEBRUARY 28, 2011
Name of |
None | $1 - $10,000 |
$10,001- $50,000 |
$50,001- $100,000 |
$100,001- $500,000 |
$500,001- $1,000,000 |
Over $1,000,000 |
|||||||||||||||||||||
Steve Lee | X | |||||||||||||||||||||||||||
Timothy Palmer | X |
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) | (b) | (c) | (d)* | |||||
Period* | TOTAL NUMBER OF SHARES (OR UNITS) PURCHASED |
AVERAGE PRICE PAID PER SHARE (OR UNIT) |
TOTAL NUMBER OF SHARES (OR UNITS) PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS |
MAXIMUM NUMBER (OR APPROXIMATE DOLLAR VALUE) OF SHARES (OR UNITS) THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS | ||||
JANUARY 1-31, 2010 |
0 | 0 | 0 | |||||
FEBRUARY 1-28, 2010 |
0 | 0 | 0 | |||||
MARCH 1-31, 2010 |
0 | 0 | 0 | |||||
APRIL 1-30, 2010 |
626,957 | 15.741 | 626,9572 | 1,259,700 | ||||
MAY 1-31, 2010 |
0 | 0 | 0 | |||||
JUNE 1-30, 2010 |
0 | 0 | 0 | |||||
JULY 1-31, 2010 |
0 | 0 | 0 | |||||
AUGUST 1-31, 2010 |
0 | 0 | 0 | |||||
SEPTEMBER 1-30, 2010 |
0 | 0 | 0 | |||||
OCTOBER 1-31, 2010 |
0 | 0 | 0 | |||||
NOVEMBER 1-30, 2010 |
0 | 0 | 1,450,0003 | |||||
DECEMBER 1-31, 2010 |
0 | 0 | 1,450,000 | |||||
TOTAL |
626,957 |
1 | Subject to a repurchase fee of up to 0.28% of the net asset value per share. |
2 | On March 3, 2010, the repurchase offer was announced to repurchase up to 10% of outstanding shares. The expiration date of the offer was April 14, 2010. The registrant may conduct annual repurchases for between 5% and 25% of its outstanding shares pursuant to Rule 23c-3 under the Investment Company Act of 1940, as amended. |
3 | The authorized a maximum repurchase amount of 565,000 shares on November 16, 2010. Any repurchases made by the registrant pursuant to that program were made through open-market transactions. |
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Shareholders who wish to recommend nominees for election to the registrants Board of Directors should send suggestions in writing to Lorna Ferguson, Manager of Fund Board Relations, Nuveen Investments, 333 West Wacker Drive, Chicago, IL 60606. This information must include evidence of Fund ownership of the person or entity recommending the candidate, a full listing of the proposed candidates education, experience, current employment, date of birth, names and addresses of at least three professional references, information as to whether the candidate is an interested person (as such term is defined in the Investment Company Act of 1940, as amended) in relation to the Fund and such other information that would be helpful to the nominating and governance committee in evaluating the candidate. All satisfactorily completed information regarding candidates will be forwarded to the chairman of the nominating and governance committee and the outside counsel to the Independent Board Members. Recommendations for candidates to the Board will be evaluated in light of whether the number of Board members is expected to change and whether the Board expects any vacancies. All nominations from Fund shareholders will be acknowledged, although there may be times when the committee is not actively recruiting new Board members. In those circumstances nominations will be kept on file until active recruitment is under way.
ITEM 11. CONTROLS AND PROCEDURES.
(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. |
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(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 registrants website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, 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. |
(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 registrant 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) Global Income & Currency Fund Inc. | ||
By | (Signature and Title) /s/ Kevin J. McCarthy | |
Kevin J. McCarthy | ||
Vice President and Secretary |
Date: March 11, 2011
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 | ||
President (principal executive officer) | ||
Date: March 11, 2011 | ||
By (Signature and Title) /s/ Stephen D. Foy Stephen D. Foy Vice President and Controller (principal financial officer) | ||
Date: March 11, 2011 |
CERTIFICATION
I, Gifford R. Zimmerman, certify that:
1. |
I have reviewed this report on Form N-CSR of Global Income & Currency Fund Inc.; |
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 registrants 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 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 |
5. |
The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 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 |
President (principal executive officer) |
CERTIFICATION
I, Stephen D. Foy, certify that:
1. |
I have reviewed this report on Form N-CSR of Global Income & Currency Fund Inc.; |
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 registrants 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 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 |
5. |
The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 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) |
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 officers knowledge and belief.
The undersigned officers of Global Income & Currency Fund Inc. (the Fund) certify that, to the best of each such officers knowledge and belief:
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. |
Date: March 11, 2011
/s/ Gifford R. Zimmerman Gifford R. Zimmerman |
||||
President (principal executive officer) |
||||
/s/ Stephen D. Foy | ||||
Stephen D. Foy | ||||
Vice President, Controller (principal financial officer) |
Nuveen Asset Management, LLC
Proxy Voting Policies and Procedures
Effective Date: January 1, 2011
I. General Principles
A. Nuveen Asset Management, LLC (Adviser) is an investment sub-adviser for certain of the Nuveen Funds (the Funds) and investment adviser for institutional and other separately managed accounts (collectively, with the Funds, Accounts). As such, Accounts may confer upon Adviser complete discretion to vote proxies. It is Advisers duty to vote proxies in the best interests of its clients (which may involve affirmatively deciding that voting the proxies may not be in the best interests of certain clients on certain matters1). In voting proxies, Adviser also seeks to enhance total investment return for its clients.
B. If Adviser contracts with another investment adviser to act as a sub-adviser for an Account, Adviser may delegate proxy voting responsibility to the sub-adviser. Where Adviser has delegated proxy voting responsibility, the sub-adviser will be responsible for developing and adhering to its own proxy voting policies, subject to oversight by Adviser.
C. Advisers Investment Policy Committee (IPC), comprised of the firms most senior investment professionals, is charged with oversight of the proxy voting policies and procedures. The IPC is responsible for (1) approving the proxy voting policies and procedures, and (2) oversight of the activities of Advisers Proxy Voting Committee (PVC). The PVC is responsible for providing an administrative framework to facilitate and monitor Advisers exercise of its fiduciary duty to vote client proxies and fulfill the obligations of reporting and recordkeeping under the federal securities laws.
II. Policies
The IPC, after reviewing and concluding that such policies are reasonably designed to vote proxies in the best interests of clients, has approved and adopted the proxy voting policies of Institutional Shareholder Services, Inc. (ISS), a leading national provider of proxy voting administrative and research services. As a result, such policies set forth Advisers positions on recurring proxy issues and criteria for addressing non-recurring issues. These policies are reviewed periodically by ISS, and therefore are subject to change. Even though it has adopted ISS policies, Adviser maintains the fiduciary responsibility for all proxy voting decisions.
1 | Adviser may not vote proxies associated with the securities of any issuer if as a result of voting, subsequent purchases or sales of such securities would be blocked. However, Adviser may decide, on an individual security basis that it is in the best interests of its clients to vote the proxy associated with such a security, taking into account the loss of liquidity. In addition, Adviser may not to vote proxies where the voting would in Advisers judgment result in some other financial, legal, regulatory disability or burden to the client (such as imputing control with respect to the issuer) or subject to resolution of any conflict of interest as provided herein, to Adviser. |
III. Procedures
A. Supervision of Proxy Voting Service. The PVC shall supervise the relationship with Advisers proxy voting service, ISS. ISS apprises Adviser of shareholder meeting dates, provides research on proxy proposals and voting recommendations, and casts the actual proxy votes. ISS also serves as Advisers proxy voting record keeper and generates reports on how proxies were voted.
B. Conflicts of Interest.
1. | The following relationships or circumstances may give rise to conflicts of interest:2 |
a. | The issuer or proxy proponent (e.g., a special interest group) is Madison Dearborn Partners, a private equity firm and affiliate of Adviser (MDP), or a company that controls, is controlled by or is under common control with MDP. |
b. | The issuer is an entity in which an executive officer of Adviser or a spouse or domestic partner of any such executive officer is or was (within the past three years of the proxy vote) an executive officer or director. |
c. | The issuer is a registered or unregistered fund for which Adviser or another Nuveen adviser serves as investment adviser or sub-adviser. |
d. | Any other circumstances that Adviser is aware of where Advisers duty to serve its clients interests, typically referred to as its duty of loyalty, could be materially compromised. |
2. | Adviser will vote proxies in the best interest of its clients regardless of such real or perceived conflicts of interest. By adopting ISS policies, Adviser believes the risk related to conflicts will be minimized. |
3. | To further minimize this risk, the IPC will review ISS conflict avoidance policy at least annually to ensure that it adequately addresses both the actual and perceived conflicts of interest the proxy voting service may face. |
2 | A conflict of interest shall not be considered material for the purposes of these Policies and Procedures in respect of a specific vote or circumstance if the matter to be voted on relates to a restructuring of the terms of existing securities or the issuance of new securities or a similar matter arising out of the holding of securities, other than common equity, in the context of a bankruptcy or threatened bankruptcy of the issuer, even if a conflict described in III.B.1a.-d is present. |
4. | In the event that ISS faces a material conflict of interest with respect to a specific vote, the PVC shall direct ISS how to vote. The PVC shall receive voting direction from the Head of Research, who will seek voting direction from appropriate investment personnel. Before doing so, however, the PVC will confirm that Adviser faces no material conflicts of its own with respect to the specific proxy vote. |
5. | If the PVC concludes that a material conflict does exist, it will recommend to the IPC a course of action designed to address the conflict. Such actions could include, but are not limited to: |
a. | Obtaining instructions from the affected client(s) on how to vote the proxy; |
b. | Disclosing the conflict to the affected client(s) and seeking their consent to permit Adviser to vote the proxy; |
c. | Voting in proportion to the other shareholders; |
d. | Recusing an IPC member from all discussion or consideration of the matter, if the material conflict is due to such persons actual or potential conflict of interest; or |
e. | Following the recommendation of a different independent third party. |
6. | In addition to all of the above-mentioned and other conflicts, members of the IPC and the PVC must notify Advisers Chief Compliance Officer of any direct, indirect or perceived improper influence exerted by any employee, officer or director within the MDP affiliate or Fund complex with regard to how Adviser should vote proxies. The Chief Compliance Officer will investigate the allegations and will report the findings to Advisers President and the General Counsel. If it is determined that improper influence was attempted, appropriate action shall be taken. Such appropriate action may include disciplinary action, notification of the appropriate senior managers within the MDP affiliate, or notification of the appropriate regulatory authorities. In all cases, the IPC shall not consider any improper influence in determining how to vote proxies, and will vote in the best interests of clients. |
C. Proxy Vote Override. From time to time, a portfolio manager of an Account (a Portfolio Manager) may initiate action to override the ISS recommendation for a particular vote. Any such override by a NAM Portfolio Manager (but not a sub-adviser Portfolio Manager) shall be reviewed by Advisers Legal Department for material conflicts. If the Legal Department determines that no material conflicts exist, the approval of one investment professional on the IPC or the Head of Equity Research shall authorize the override. If a material conflict exists the
conflict and, ultimately, the override recommendation will be addressed pursuant to the procedures described above under Conflicts of Interest.
D. Securities Lending.
1. | In order to generate incremental revenue, some clients may participate in a securities lending program. If a client has elected to participate in the lending program then it will not have the right to vote the proxies of any securities that are on loan as of the shareholder meeting record date. A client, or a Portfolio Manager, may place restrictions on loaning securities and/or recall a security on loan at any time. Such actions must be affected prior to the record date for a meeting if the purpose for the restriction or recall is to secure the vote. |
2. | Portfolio Managers and/or analysts who become aware of upcoming proxy issues relating to any securities in portfolios they manage, or issuers they follow, will consider the desirability of recalling the affected securities that are on loan or restricting the affected securities prior to the record date for the matter. If the proxy issue is determined to be material, and the determination is made prior to the shareholder meeting record date the Portfolio Manager(s) will contact the Securities Lending Agent to recall securities on loan or restrict the loaning of any security held in any portfolio they manage, if they determine that it is in the best interest of shareholders to do so. Training regarding the process to recall securities on loan or restrict the loaning of securities is given to all Portfolio Managers and analysts. |
E. Proxy Voting for ERISA Clients. If a proxy voting issue arises for an ERISA client, Adviser is prohibited from voting shares with respect to any issue advanced by a party in interest of the ERISA client.
F. Proxy Voting Records. As required by Rule 204-2 of the Investment Advisers Act of 1940, Adviser shall make and retain five types of records relating to proxy voting; (a) proxy voting policies and procedures; (b) proxy statements received for client and fund securities; (c) records of votes cast on behalf of clients and funds; (d) records of written requests for proxy voting information and written responses from the Adviser to either a written or oral request; and (e) any documents prepared by the adviser that were material to making a proxy voting decision or that memorialized the basis for the decision. Adviser may rely on ISS to make and retain on Advisers behalf records pertaining to the rule.
G. Fund of Funds Provision. In instances where Adviser provides investment advice to a fund of funds that acquires shares of affiliated funds or three percent or more of the outstanding voting securities of an unaffiliated fund, the acquiring fund shall vote the shares in the same proportion as the vote of all other shareholders of the acquired fund. If compliance with this policy results in a vote of any shares in a manner different than the ISS
recommendation, such vote will not require compliance with the Proxy Vote Override procedures set forth above.
H. Legacy Securities. To the extent that Adviser receives proxies for securities that are transferred into an Accounts portfolio that were not recommended or selected by Adviser and are sold or expected to be sold promptly in an orderly manner (legacy securities), Adviser will generally instruct ISS to refrain from voting such proxies. In such circumstances, since legacy securities are expected to be sold promptly, voting proxies on such securities would not further Advisers interest in maximizing the value of client investments. Adviser may agree to an institutional Accounts special request to vote a legacy security proxy, and would instruct ISS to vote such proxy in accordance with its guidelines.
I. Review and Reports.
1. | The PVC shall maintain a review schedule. The schedule shall include reviews for the proxy voting policy (including the policies of any sub-adviser), the proxy voting record, account maintenance, and other reviews as deemed appropriate by the PVC. The PVC shall review the schedule at least annually. |
2. | The PVC will report to the IPC with respect to all identified conflicts and how they were addressed. These reports will include all Accounts, including those that are sub-advised. With respect to the review of votes cast on behalf of investments by the Funds, such review will also be reported to the Board of Directors of the Funds at each of their regularly scheduled meetings. Adviser also shall provide the Funds that it sub-advises with information necessary for preparing Form N-PX. |
K. Vote Disclosure to Clients. Advisers institutional and separately managed account clients can contact their relationship manager for more information on Advisers policies and the proxy voting record for their account. The information available includes name of issuer, ticker/CUSIP, shareholder meeting date, description of item and Advisers vote.
IV. Policy Owner
IPC
V. Responsible Parties
IPC
PVC
ADV Review Team
Last Amended 1/1/11
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