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 |
811-22971 |
Nuveen NASDAQ 100 Dynamic Overwrite Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Gifford R. Zimmerman
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: December 31
Date of reporting period: December 31, 2019
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
31 December
2019
Nuveen
Closed-End Funds
BXMX | Nuveen S&P 500 Buy-Write Income Fund | |
DIAX | Nuveen Dow 30SM Dynamic Overwrite Fund | |
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund | |
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website (www.nuveen.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting the financial intermediary (such as a broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.
You may elect to receive all future shareholder reports in paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, (i) by calling 800-257-8787 and selecting option #2 or (ii) by logging into your Investor Center account at www.computershare.com/investor and clicking on “Communication Preferences.” Your election to receive reports in paper will apply to all funds held in your account with your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment companies.
Annual Report
IMPORTANT DISTRIBUTION NOTICE
for Shareholders of the Nuveen S&P 500 Buy-Write Income Fund (BXMX), Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)
Annual Shareholder Report for the period ending December 31, 2019
The Nuveen S&P 500 Buy-Write Income Fund, Nuveen Dow 30SM Dynamic Overwrite Fund, Nuveen S&P 500 Dynamic Overwrite Fund and Nuveen Nasdaq 100 Dynamic Overwrite Fund seek to offer attractive cash flow to their shareholders, by converting the expected long-term total return potential of the Funds’ portfolio of investments into regular quarterly distributions. Following is a discussion of the Managed Distribution Policy the Funds use to achieve this.
Each Fund pays quarterly common share distributions that seek to convert the Fund’s expected long-term total return potential into regular cash flow. As a result, the Funds’ regular common share distributions (presently $0.2325, $0.2950, $0.2650 and $0.3900 per share, respectively) may be derived from a variety of sources, including:
• | net investment income consisting of regular interest and dividends, |
• | realized capital gains or, |
• | possibly, returns of capital representing in certain cases unrealized capital appreciation. |
Such distributions are sometimes referred to as “managed distributions.” Each Fund seeks to establish a distribution rate that roughly corresponds to the Adviser’s projections of the total return that could reasonably be expected to be generated by each Fund over an extended period of time. The Adviser may consider many factors when making such projections, including, but not limited to, long-term historical returns for the asset classes in which each Fund invests. As portfolio and market conditions change, the distribution amount and distribution rate on the Common Shares under the Funds’ Managed Distribution Policy could change.
When it pays a distribution, each Fund provides holders of its Common Shares a notice of the estimated sources of the Fund’s distributions (i.e., what percentage of the distributions is estimated to constitute ordinary income, short-term capital gains, long-term capital gains, and/or a non-taxable return of capital) on a year-to-date basis. It does this by posting the notice on its website (www.nuveen.com/cef), and by sending it in written form.
You should not draw any conclusions about the Funds’ investment performance from the amount of this distribution or from the terms of the Funds’ Managed Distribution Policy. The Funds’ actual financial performance will likely vary from month-to-month and from year-to-year, and there may be extended periods when the distribution rate will exceed the Funds’ actual total returns. The Managed Distribution Policy provides that the Board may amend or terminate the Policy at any time without prior notice to Fund shareholders. There are presently no reasonably foreseeable circumstances that might cause each Fund to terminate its Managed Distribution Policy.
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Chair’s Letter to Shareholders
4
Nuveen S&P 500 Buy-Write Income Fund (BXMX)
Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX)
Nuveen S&P 500 Dynamic Overwrite Fund (SPXX)
Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)
The Nuveen S&P 500 Buy-Write Income Fund (BXMX) features portfolio management by Gateway Investment Advisers, LLC (Gateway). Kenneth H. Toft, Michael T. Buckius and Daniel M. Ashcraft are portfolio managers. Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) feature portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Funds’ investment adviser. David A. Friar and Jody I. Hrazanek serve as portfolio managers for the Funds.
Here the portfolio managers discuss their management strategies and the performance of the Funds for the twelve-month reporting period ended December 31, 2019.
What factors affected the U.S. economy and financial markets during the twelve-month reporting period ended December 31, 2019?
The U.S. economy reached the tenth year of expansion since the previous recession ended in June 2009, marking the longest expansion in U.S. history. In the fourth quarter of 2019, gross domestic product (GDP) grew at an annualized rate of 2.1%, according to the “advance” estimate by the Bureau of Economic Analysis. GDP measures the value of goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes. In the final months of the year, the economy was boosted by moderate consumer spending, along with positive contributions from government spending and trade, which offset weakness in business investment. For 2019 as a whole, U.S. GDP grew 2.3%, a decline from 2.9% in 2018 and the slowest pace since 2016.
Consumer spending, the largest driver of the economy, remained well supported by low unemployment, wage gains and tax cuts. As reported by the Bureau of Labor Statistics, the unemployment rate fell to 3.5% in December 2019 from 3.9% in December 2018 and job gains averaged around 176,000 per month for the past twelve months. As the jobs market has tightened, average hourly earnings grew at an annualized rate of 2.9% in December 2019. However, inflation remained subdued. The Bureau of Labor Statistics said the Consumer Price Index (CPI) increased 2.3% over the twelve-month reporting period ended December 31, 2019 before seasonal adjustment.
Low mortgage rates and low inventory drove home prices moderately higher in this reporting period, despite declining new home sales and housing starts. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which covers all
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
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.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
5
Portfolio Managers’ Comments (continued)
nine U.S. census divisions, was up 3.5% year-over-year in November 2019 (most recent data available at the time this report was prepared). The 10-City and 20-City Composites reported year-over-year increases of 2.0% and 2.6%, respectively.
As data pointed to slower momentum in the overall economy, the Federal Reserve (Fed) notably shifted its stance. Although the Fed had indicated in December 2018 that there could be two more rate hikes in 2019, global growth concerns kept the central bank on the sidelines. As expected by the markets, the Fed left rates unchanged throughout the first half of 2019 while speculation increased that the Fed’s next move would be a rate cut. At the July 2019, September 2019 and October 2019 policy committee meetings, the Fed announced a 0.25% cut to its main policy rate. Markets registered disappointment with the Fed’s explanation that the rate cuts were a “mid-cycle adjustment,” rather than a prolonged easing period, and its signal that there would be no additional rate cuts in 2019. Also in the latter half of 2019, the Fed announced it would stop shrinking its bond portfolio sooner than scheduled, as well as began buying short-term Treasury bills to help money markets operate smoothly and maintain short-term borrowing rates at low levels. Fed Chairman Powell emphasized that the Treasury bill purchases were not a form of quantitative easing.
During the twelve-month reporting period, geopolitical news remained a prominent market driver. Tariff and trade policy topped the list of concerns, most prominently the U.S.-China relations. After several rounds of talks, escalating rhetoric from both sides and a series of tariff increases, tensions appeared to ease in the later months of 2019. The U.S. and China signaled their agreement on a partial trade deal, which included rolling back some tariffs, increasing China’s purchases of U.S. agriculture products and the consideration of intellectual property, technology and financial services rights. (Subsequent to the close of the reporting period, the “phase one” deal was signed on January 15, 2020.) While much of the focus remained on the U.S.-China relationship, trade spats between the U.S. and Mexico, the European Union, Brazil and Argentina also arose throughout the period. More than a year after the three countries signed onto the U.S., Mexico and Canada Agreement (USMCA) trade deal, which replaces the North American Free Trade Agreement, the U.S. House of Representatives approved the deal in December 2019 (and, subsequent to the close of the reporting period, the Senate voted in January 2020 to approve it). Global manufacturing and export data continued to show evidence of trade-related slumps, which increased worries that the slowdown would spread into other segments of the global economy.
The Brexit saga also appeared to make a breakthrough by the end of 2019. After former Prime Minister Theresa May was unable to secure a Brexit deal by the original March 29, 2019 deadline, she resigned as of June 7, 2019. When her successor, Boris Johnson, failed to meet the EU’s first deadline extension of October 31, 2019, the EU approved a “flextension” to January 31, 2020. A U.K. general election was scheduled for December 2019, wherein the Conservative Party won a large majority and bolstered Prime Minister Johnson’s mandate to get Brexit done. A few days later, the British Parliament passed the Brexit Bill. In Italy, investors worried about another potential budget clash between the eurosceptic coalition government and the EU. However, following the unexpected resignation of the prime minister in August 2019, the newly formed coalition government appeared to take a less antagonistic stance. Europe also contended with the “yellow vest” protests in France, immigration policy concerns, Russian sanctions and political risk in Turkey.
Elsewhere, anti-government protests erupted across Latin America, Hong Kong and Lebanon during 2019, and Venezuela’s economic and political crisis deepened. In Argentina, markets were shocked by the defeat of incumbent President Macri, prompting concerns about the economic policies favored by the incoming Fernandez administration. Brazil’s Bolsonaro administration achieved a legislative win on pension reform and kept the economy on a path of modest growth. Europe’s traditional centrist parties lost seats in the May 2019 Parliamentary elections and populist parties saw marginal gains. The ruling parties in India and South Africa maintained their majorities, where slower economic growth could complicate their respective reform mandates.
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The S&P 500® Index returned 31.49% in 2019, as strong returns in the first and fourth quarters of 2019 helped deliver its best annual return since 2013 and an annual return of over 30% for just the fifth time in the last three decades. The Dow Jones Industrial Average and Nasdaq 100 Index returned 25.34% and 36.69% percent, respectively.
Between the first and fourth quarters of 2019, the equity market advance was choppy and moderate as the market processed uncertainty over Fed policy, trade and the global economy. Though the S&P 500® Index returned 6.08% over the course of the second and third quarters, it experienced two sizeable drawdowns of 6.62% and 5.99%, occurring from May 3 through June 3 and July 26 through August 14, 2019, respectively. The first drawdown was driven by unease over trade and global economic growth as tensions between the U.S., China and Mexico escalated in concert with slowing growth in China. The equity market was particularly volatile during the second drawdown as the S&P 500® Index had three separate one-day declines of over 2.5% in August 2019. Despite these mid-year pullbacks and persistent concern over U.S. monetary policy, global trade, and economic growth, implied volatility levels were persistently below their historical average in 2019. The Chicago Board Options Exchange (Cboe) Volatility Index® (the VIX®) averaged 15.4 for 2019, below its historical average of 19.15. The 2019 closing high for the VIX® was 25.5 on January 3, as equity markets recovered from nearly-bear market territory in December 2018. The 2019 low for the VIX® was 11.5 on November 26, amidst strong returns in the equity market, before it ended the reporting period at 13.78.
What key strategies were used to manage the Funds during twelve-month reporting period ended December 31, 2019?
BXMX
The Nuveen S&P 500 Buy-Write Income Fund (BXMX or the Fund) seeks attractive total return with less volatility than the S&P 500® Index. During the twelve-month reporting period ended December 31, 2019, the Fund invested in an equity portfolio which sought to track the total return of the S&P 500® Index and wrote (sold) listed index call options on approximately 100% of the notional value of its stock portfolio. The cash premium generated by the index call options is intended to supplement the dividend yield on the underlying stock portfolio to support the Fund’s distribution policy and to provide the potential for growth in value during rising markets and/or risk mitigation in the event of a market decline.
The writing of index call options on a broad equity index, while investing in a portfolio of equities, has the potential to enhance the BXMX’s risk-adjusted returns while exposing the Fund to less risk than unhedged equity investments. Hedging the equity portfolio with index call options may limit the Fund’s participation in market advances in exchange for the cash premium received for the written index call options. In addition, market declines are typically buffered by the amount of the cash premium received by the Fund. In flat or declining markets, BXMX’s call option premium can potentially enhance total return relative to the S&P 500® Index. In rising markets, the call options may reduce the Fund’s total return relative to the S&P 500® Index.
DIAX
DIAX seeks attractive total return with less volatility than the Dow Jones Industrial Average (DJIA). NAM varies the level of call option overwrite within a range of approximately 35% to 75%, with a long-run target of 55% overwrite. NAM uses its proprietary view of the market’s return and volatility profile to dynamically adjust the overwrite percentage and other factors. Generally, if NAM expects the equity market to appreciate, the overwrite percentage will be reduced to offer more potential upside capture. Likewise, if NAM expects equity markets to be flat or to decline, the overwrite percentage may be increased, thus managing the Fund to potentially receive additional cash flow from higher sales of call options. This dynamic option overwrite approach offers potential for greater equity market upside capture than the full overwrite approach, while still offering a measure of downside risk management. The Fund currently expects to carry
7
Portfolio Managers’ Comments (continued)
out its principal investment strategy by emphasizing options on broad-based indexes, individual stocks in the DJIA, and options on custom baskets of stocks in addition to ETFs. The Fund also has the opportunity to utilize call spread strategies and sell put options on a portion of the underlying equity portfolio.
SPXX
SPXX seeks attractive total return with less volatility than the S&P 500® Index. NAM varies the level of option overwrite within a range of approximately 35% to 75% overwrite, with a long-run target of 55% overwrite. NAM uses its proprietary view of the market’s return and volatility profile to dynamically adjust the overwrite percentage and other factors.
Generally, if NAM expects the equity market to appreciate, the overwrite percentage will be reduced to offer more potential upside capture. Likewise, if NAM expects equity markets to be flat or to decline, the overwrite percentage may be increased, thus managing the Fund to potentially receive additional cash flow from higher sales of call options. This dynamic option overwrite approach offers potential for greater equity market upside capture than the full overwrite approach, while still offering a measure of downside risk management. The Fund currently expects to emphasize index call options on the S&P 500® and can also employ an expanded range of options including index options on other broad-based indexes and options on custom baskets of stocks in addition to single name options. The Fund also has the opportunity to utilize call spread strategies and sell put options on a portion of the underlying equity portfolio.
QQQX
QQQX seeks attractive total return with less volatility than the NASDAQ-100 Index. NAM varies the level of call option overwrite within a range of approximately 35% to 75% overwrite, with a long-run target of 55% overwrite. NAM uses its proprietary view of the market’s return and volatility profile to dynamically adjust the overwrite percentage and other factors. Generally, if NAM expects the equity market to appreciate, the overwrite percentage will be reduced to offer more potential upside capture. Likewise, if NAM expects equity markets to be flat or to decline, the overwrite percentage may be increased, thus managing the Fund to potentially receive additional cash flow from higher sales of call options. This dynamic option overwrite approach offers potential for greater equity market upside capture than the full overwrite approach, while still offering a measure of downside risk management. The Fund, in carrying out its principal options strategy, expects to primarily write index call options on the Nasdaq-100 Index and other broad-based indexes and can also write call options on a variety of other equity market indexes and options on custom baskets of stocks in addition to single name options. The Fund also has the opportunity to utilize call spread strategies and sell put options on a portion of the underlying equity portfolio.
How did the Funds perform during this twelve-month reporting period ended December 31, 2019?
The tables in the Performance Overview and Holding Summaries section of this report provide total return for the one-year, five-year and ten-year periods ended December 31, 2019. Each Fund’s total returns at net asset value (NAV) are compared with the performance of its corresponding market index and, as available, a secondary custom blended benchmark.
For the twelve-month reporting period ended December 31, 2019, BXMX’s shares at NAV outperformed the CBOE S&P 500®BuyWrite Index (BXMSM), its primary index, but underperformed the S&P 500® Index. DIAX underperformed the Dow Jones Industrial Average and its secondary index, which is a blend of 55% CBOE DJIA BuyWrite Index (BXDSM) and 45% Dow Jones Industrial Average. SPXX underperformed the S&P 500® Index and its secondary index, which is a blend of 55% the CBOE S&P 500®BuyWrite Index (BXMSM) and 45% the S&P 500® Index. QQQX underperformed the Nasdaq-100 Index and its secondary index, which is a blend of 55% CBOE Nasdaq 100 BuyWrite Index (BXNSM) and 45% Nasdaq-100 Index.
8
BXMX
The Fund’s index-tracking equity portfolio contributed to performance, which enabled participation in the equity market’s above-average advance during the reporting period. Active index call writing generated risk-reducing cash flow throughout the reporting period. In attempting to achieve its low volatility objective, the Fund’s annualized standard deviation of daily returns for the reporting period was 7.69% compared to 12.47% and 8.80% for the S&P 500® and the BXMSM, respectively. Additionally, the Fund’s active approach to index call writing contributed positively to the Fund’s returns in May and August 2019 when the equity market experienced steep but temporary losses.
The index call options written by the Fund often have similar characteristics to the index call option present in the BXMSM at any given time. However, unlike the BXMSM, the Fund employs an active strategy that gives its management team discretion to diversify expiration dates and strike prices across a portfolio of index call options, and to opportunistically pursue attractive call premiums while maintaining a relatively consistent risk profile.
Writing index call options limited equity market participation, generally detracting from the Fund’s return for the reporting period, consistent with expectations during periods when the equity market advances with below average implied volatility, as it did during each month of the reporting period except for May and August 2019. Additionally, the risk reducing cash flow generated by the Fund from writing index call options was relatively limited due to persistently below average implied volatility levels.
The Fund underperformed the BXMSM over the first six months of the reporting period. After keeping pace with its benchmark in the first quarter 2019, most of the underperformance occurred in May and June 2019. As equity markets retreated in May 2019, the Fund replaced select written index call options for contracts with lower strike prices to maintain typical market exposure as the market declined. This resulted in lower market exposure relative to the BXMSM during a brief but significant intra-month advance, translating to underperformance for the month of May. Similarly, the Fund underperformed in June 2019 primarily due to less market exposure than the BXMSM over the first three weeks of the month. May 2019’s market decline meant that the BXM’sSM single written option was well out-of-the-money at the beginning of June whereas the Fund’s portfolio of written options had a lower weighted-average strike price. The lower weighted-average strike price resulted in less market exposure and a lower return as the market rallied over the first three weeks of June 2019.
The Fund outperformed the BXMSM over the last six months of the reporting period. The written index call option component of the BXMSM detracted from its return in both the third and fourth quarters of 2019 as compared to the Fund’s active index call writing activity. Specifically, in the third quarter 2019, written call options contributed positively to the Fund’s return as it took advantage of elevated implied volatility levels during the mid-quarter equity market pullback. The Fund made several index call option trades to increase potential cash flow while maintaining a typical risk profile. In the fourth quarter 2019, the Fund experienced fewer written call option losses than the BXMSM as the Fund’s diversified and active call writing approach provided consistent exposure to market advances and more option writing cash flow than the BXM’sSM passive, single contract approach which resulted in decreasing market exposure during market advances and less cash flow.
DIAX
DIAX’s call option strategy is expected to dampen the beta (a measure of price volatility) of the overall portfolio. Active index call writing generated risk-reducing cash flow throughout the reporting period. In attempting to achieve its low volatility objective, the Fund’s annualized standard deviation of daily returns for the reporting period was 9.22% compared to 12.86% and 10.12% for Dow Jones Industrial Average and the secondary index, which is a blend of 55% CBOE DJIA BuyWrite Index (BXDSM) and 45% Dow Jones Industrial Average, respectively. This overwrite strategy provides incremental cash flow to the Fund and allows the portion of the Fund’s assets that are not overwritten to participate in any equity market rally. Those portions of the Fund that are overwritten have capped upside potential. The downside is buffered by the amount of cash flow premium received. Therefore, in flat or declining markets, the option premiums can enhance total returns relative to the Index. In rising markets, however, the options can hinder the Fund’s total return relative to the Index.
9
Portfolio Managers’ Comments (continued)
It is important to note the relationship between the market’s implied volatility that is measured by the Chicago Board Options Exchange (Cboe) Volatility Index® (the “VIX®”), and option writing. Implied volatility is a component of an option itself. It is the estimated volatility of an asset underlying an option. Higher implied volatilities result in higher option prices. The same can be said about the implied volatility of the market.
The market’s implied volatility, as measured by the VIX®, began the reporting period around 25 and ended the reporting period at 13.78. The VIX®’s year-over- year decline was one of largest in history. For the most part, NAM kept the Fund’s option overwrite level slightly above that of the DIAX Blended Benchmark. The option overwrite level ranged from 49% to 67%, but averaged 59% for the reporting period, above the Fund’s target average and its Blended Benchmark. During the first half of the reporting period, NAM included options on oil & gas processing exchange-traded funds (ETFs), utilities ETFs and biotechnology ETFs. However, during the majority of reporting period, NAM continued to make small tactical moves, mainly selling Index options on the S&P 500® Index and Russell 2000® Index.
Several factors contributed to the Fund’s underperformance most significantly the Fund’s overwrite levels for the reporting period. The Fund’s option overwrite strategy, which is designed to reduce the portfolio’s return volatility and downside risk, was higher than its target and the Blended Benchmark, which detracted from performance. In addition, our small tactical moves which included selling options on oil & gas, utilities and biotech ETFs detracted from performance. Lastly, NAM utilized S&P 500® Index options. As the S&P 500® Index continued to advance during the reporting period, the level of the option’s premiums declined as well.
By keeping the overwrite level above the historical average of 55% during the reporting period, the Fund was able to buffer some of the downside when markets sold-off in late January and May 2019. In addition, NAM utilized Russell 2000® Index options. Unlike other indexes, the Russell 2000® Index had periods of flat performance throughout the reporting period. NAM was able to collect more premium income as it was a favorable environment for writing options on the Russell 2000® Index and contributed to performance.
SPXX
SPXX’s call option strategy is expected to dampen the beta (a measure of price volatility) of the overall portfolio. Active index call writing generated risk-reducing cash flow throughout the reporting period. In attempting to achieve its low volatility objective, the Fund’s annualized standard deviation of daily returns for the reporting period was 9.61% compared to 12.89% and 9.57% for the S&P 500® Index and its secondary index, which is a blend of 55% the CBOE S&P 500®BuyWrite Index (BXMSM) and 45% the S&P 500® Index, respectively. This overwrite strategy provides incremental cash flow to the Fund and allows the portion of the Fund’s assets that are not overwritten to participate in any equity market rally. Those portions of the Fund that are overwritten have capped upside potential. The downside is buffered by the amount of cash flow premium received. Therefore, in flat or declining markets, the option premiums can enhance total returns relative to the index. In rising markets, however, the options can hinder the Fund’s total return relative to the index.
It is important to note the relationship between market’s implied volatility that is measured by the Chicago Board Options Exchange (Cboe) Volatility Index® (the “VIX®”), and option writing. Implied volatility is a component of an option itself. It is the estimated volatility of an asset underlying an option. Higher implied volatilities result in higher option prices. The same can be said about the implied volatility of the market.
The market’s implied volatility, as measured by the VIX®, began the reporting period around 25 and ended the reporting period at 13.78. The VIX®’s year-over- year decline was one of largest in history. For the most part, NAM kept the Fund’s option overwrite level slightly above that of the SPXX Blended Benchmark. The option overwrite level ranged from 49% to 67%, but averaged 59% for the reporting period, above the Fund’s target average and its Blended Benchmark. During the first half of the reporting period, NAM included options on oil & gas processing exchange-traded funds (ETFs), utilities ETFs and biotechnology ETFs. However, during the majority of reporting period, NAM continued to make small tactical moves, mainly selling Index options on the S&P 500® Index and Russell 2000® Index.
10
Several factors contributed to the Fund’s underperformance most significantly the Fund’s overwrite levels for the reporting period. The Fund’s option overwrite strategy, which is designed to reduce the portfolio’s return volatility and downside risk, was higher than its target and the Blended Benchmark, which detracted from performance. In addition, our small tactical moves which included selling options on oil & gas, utilities and biotech ETFs detracted from performance. Lastly, NAM utilized S&P 500® Index options. As the S&P 500® Index continued to advance during the reporting period, the level of the option’s premiums declined as well.
By keeping the overwrite level above the historical average of 55% during the reporting period, the Fund was able to buffer some of the downside when markets sold-off in late January and May 2019. In addition, NAM utilized Russell 2000® Index options. Unlike other indexes, the Russell 2000® Index had periods of flat performance throughout the reporting period. NAM was able to collect more premium income as it was a favorable environment for writing options on the Russell 2000® Index and contributed to performance.
QQQX
QQQX’s call option strategy is expected to dampen the beta (a measure of price volatility) of the overall portfolio. Active index call writing generated risk-reducing cash flow throughout the reporting period. In attempting to achieve its low volatility objective, the Fund’s annualized standard deviation of daily returns for the reporting period was 11.94% compared to 15.72% and 12.24% for the Nasdaq-100 Index and its secondary index, which is a blend of 55% CBOE Nasdaq 100 BuyWrite Index (BXNSM) and 45% Nasdaq-100 Index, respectively. This overwrite strategy provides incremental cash flow to the Fund and allows the portion of the Fund’s assets that are not overwritten to participate in any equity market rally. Those portions of the Fund that are overwritten have capped upside potential. The downside is buffered by the amount of cash flow premium received. Therefore, in flat or declining markets, the option premiums can enhance total returns relative to the Index. In rising markets, however, the options can hinder the Fund’s total return relative to the index.
It is important to note the relationship between market’s implied volatility that is measured by the Chicago Board Options Exchange (Cboe) Volatility Index® (the “VIX®”), and option writing. Implied volatility is a component of an option itself. It is the estimated volatility of an asset underlying an option. Higher implied volatilities result in higher option prices. The same can be said about the implied volatility of the market.
The market’s implied volatility, as measured by the VIX®, began the reporting period around 25 and ended the reporting period at 13.78. The VIX®’s year-over- year decline was one of largest in history. For the most part, NAM kept the Fund’s option overwrite level slightly above that of the QQQX Blended Benchmark. The option overwrite level ranged from 49% to 67%, but averaged 59% for the reporting period, above the Fund’s target average and its Blended Benchmark. During the first half of the reporting period, NAM included options on oil & gas processing exchange-traded funds (ETFs), utilities ETFs and biotechnology ETFs. However, during the majority of reporting period, NAM continued to make small tactical moves, mainly selling Index options on the Nasdaq-100 Index and Russell 2000® Index.
Several factors contributed to the Fund’s underperformance most significantly the Fund’s overwrite levels for the reporting period. The Fund’s option overwrite strategy, which is designed to reduce the portfolio’s return volatility and downside risk, was higher than its target and the Blended Benchmark, which detracted from performance. In addition, our small tactical moves which included selling options on oil & gas, utilities and biotech ETFs detracted from performance. Lastly, NAM utilized S&P 500® Index options. As the S&P 500® Index continued to advance during the reporting period, the level of the option’s premiums declined as well. Lastly, as the Nasdaq 100 Index continued to advance during the reporting period, the level of the option’s premiums declined as well. This dynamic made the risk/reward of selling options increasingly unattractive.
By keeping the overwrite level above the historical average of 55% during the reporting period, the Fund was able to buffer some of the downside when markets sold-off in late January and May 2019. Lastly, NAM utilized Russell 2000® Index options. Unlike other indices, the Russell 2000® Index had periods of flat performance throughout the reporting period. NAM was able to collect more premium income as it was a favorable environment for writing options on the Russell 2000® Index and contributed to performance.
11
DISTRIBUTION INFORMATION
The following 19(a) Notice presents the Funds’ most current distribution information as of November 30, 2019 as required by certain exempted regulatory relief the Funds have received.
Because the ultimate tax character of your distributions depends on the Funds’ performance for its entire fiscal year (which is the calendar year for the Funds) as well as certain fiscal year-end (FYE) tax adjustments, estimated distribution source information you receive with each distribution may differ from the tax information reported to you on your Funds’ IRS Form 1099 statement.
DISTRIBUTION INFORMATION – AS OF NOVEMBER 30, 2019
This notice provides shareholders with information regarding fund distributions, as required by current securities laws. You should not draw any conclusions about the Funds’ investment performance from the amount of this distribution or from the terms of the Funds’ Managed Distribution Policy.
Each Fund may in certain periods distribute more than its income and net realized capital gains, and the Funds currently estimate that they have done so for the fiscal year-to-date period. In such instances, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds’ investment performance and should not be confused with “yield” or “income.”
The amounts and sources of distributions set forth below are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Funds’ investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. More details about the Funds’ distributions and the basis for these estimates are available on www.nuveen.com/cef.
The following table provides estimates of the Funds’ distribution sources, reflecting year-to-date cumulative experience through the latest month-end. Each Fund attributes these estimates equally to each regular distribution throughout the year. Consequently, the estimated information shown below is for the current distribution, and also represents an updated estimate for all prior months in the year.
12
Data as of November 30, 2019
Estimated Per Share Sources of Distribution1 | Estimated Percentage of the Distribution1 | |||||||||||||||||||||||||||||||||||||||
Fund | Inception Date |
Per Share Distribution |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital |
||||||||||||||||||||||||||||||
BXMX (FYE 12/31) |
10/2004 | |||||||||||||||||||||||||||||||||||||||
Current Quarter |
$ | 0.2325 | $ | 0.0363 | $ | 0.0000 | $ | 0.0000 | $ | 0.1962 | 15.60 | % | 0.00 | % | 0.00 | % | 84.40 | % | ||||||||||||||||||||||
Fiscal YTD |
$ | 0.9300 | $ | 0.1451 | $ | 0.0000 | $ | 0.0000 | $ | 0.7849 | 15.60 | % | 0.00 | % | 0.00 | % | 84.40 | % | ||||||||||||||||||||||
DIAX (FYE 12/31) |
04/2005 | |||||||||||||||||||||||||||||||||||||||
Current Quarter |
$ | 0.2950 | $ | 0.0647 | $ | 0.0000 | $ | 0.0000 | $ | 0.2303 | 21.90 | % | 0.00 | % | 0.00 | % | 78.10 | % | ||||||||||||||||||||||
Fiscal YTD |
$ | 1.1800 | $ | 0.2586 | $ | 0.0000 | $ | 0.0000 | $ | 0.9214 | 21.90 | % | 0.00 | % | 0.00 | % | 78.10 | % | ||||||||||||||||||||||
SPXX (FYE 12/31) |
11/2005 | |||||||||||||||||||||||||||||||||||||||
Current Quarter |
$ | 0.2650 | $ | 0.0405 | $ | 0.0000 | $ | 0.0000 | $ | 0.2245 | 15.30 | % | 0.00 | % | 0.00 | % | 84.70 | % | ||||||||||||||||||||||
Fiscal YTD |
$ | 1.0600 | $ | 0.1620 | $ | 0.0000 | $ | 0.0000 | $ | 0.8980 | 15.30 | % | 0.00 | % | 0.00 | % | 84.70 | % | ||||||||||||||||||||||
QQQX (FYE 12/31) |
01/2007 | |||||||||||||||||||||||||||||||||||||||
Current Quarter |
$ | 0.3900 | $ | 0.0151 | $ | 0.0000 | $ | 0.0000 | $ | 0.3749 | 3.90 | % | 0.00 | % | 0.00 | % | 96.10 | % | ||||||||||||||||||||||
Fiscal YTD |
$ | 1.5600 | $ | 0.0605 | $ | 0.0000 | $ | 0.0000 | $ | 1.4995 | 3.90 | % | 0.00 | % | 0.00 | % | 96.10 | % |
1 | Net investment income (NII) is a projection through the end of the current calendar quarter using actual data through the stated month-end date above. Capital gain amounts are as of the stated date above. The estimated per share sources above include an allocation of the NII based on prior year attributions which can be expected to differ from the actual final attributions for the current year. |
The following table provides information regarding the Funds’ distributions and total return performance over various time periods. This information is intended to help you better understand whether returns for the specified time periods were sufficient to meet distributions.
Data as of November 30, 2019
Annualized | Cumulative | |||||||||||||||||||||||||||||||
Fund | Inception Date |
Quarterly Distribution |
Fiscal YTD Distribution |
Net Asset Value (NAV) |
5-Year Return on NAV |
Fiscal YTD Dist Rate on NAV1 |
Fiscal YTD Return on NAV |
Fiscal YTD Dist Rate on NAV1 |
||||||||||||||||||||||||
BXMX |
10/2004 | $ | 0.2325 | $ | 0.9300 | $ | 13.75 | 7.02 | % | 6.76 | % | 14.88 | % | 6.76 | % | |||||||||||||||||
DIAX |
04/2005 | $ | 0.2950 | $ | 1.1800 | $ | 18.39 | 8.30 | % | 6.42 | % | 14.29 | % | 6.42 | % | |||||||||||||||||
SPXX |
11/2005 | $ | 0.2650 | $ | 1.0600 | $ | 16.25 | 7.44 | % | 6.52 | % | 18.54 | % | 6.52 | % | |||||||||||||||||
QQQX |
01/2007 | $ | 0.3900 | $ | 1.5600 | $ | 23.91 | 10.55 | % | 6.52 | % | 24.22 | % | 6.52 | % |
1 | As a percentage of 11/29/19 NAV. |
DISTRIBUTION INFORMATION – AS OF DECEMBER 31, 2019
The following tables provide information regarding the Funds’ common share distributions and total return performance for the fiscal year ended December 31, 2019. This information is intended to help you better understand whether the Funds’ returns for the specified time period were sufficient to meet its distributions.
Data as of December 31, 2019
Per Share Sources of Distribution | Percentage of the Distribution | |||||||||||||||||||||||||||||||||||
Fund | Per Share Distribution |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital1 |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital1 |
|||||||||||||||||||||||||||
BXMX |
||||||||||||||||||||||||||||||||||||
Fiscal YTD |
$ | 0.9300 | $ | 0.1558 | $ | 0.0000 | $ | 0.0000 | $ | 0.7742 | 16.75 | % | 0.00 | % | 0.00 | % | 83.25 | % | ||||||||||||||||||
DIAX |
||||||||||||||||||||||||||||||||||||
Fiscal YTD |
$ | 1.1800 | $ | 0.2720 | $ | 0.0000 | $ | 0.0000 | $ | 0.9080 | 23.05 | % | 0.00 | % | 0.00 | % | 76.95 | % | ||||||||||||||||||
SPXX |
||||||||||||||||||||||||||||||||||||
Fiscal YTD |
$ | 1.0600 | $ | 0.1801 | $ | 0.0000 | $ | 0.0000 | $ | 0.8799 | 16.99 | % | 0.00 | % | 0.00 | % | 83.01 | % | ||||||||||||||||||
QQQX |
||||||||||||||||||||||||||||||||||||
Fiscal YTD |
$ | 1.5600 | $ | 0.0518 | $ | 0.0000 | $ | 0.0000 | $ | 1.5082 | 3.32 | % | 0.00 | % | 0.00 | % | 96.68 | % |
13
Common Share Information (continued)
Data as of December 31, 2019
Annualized | ||||||||||||||||||||
Fund | Inception Date |
Net Asset Value (NAV) |
1-Year Return on NAV |
5-Year Return on NAV |
Fiscal YTD Dist Rate on NAV |
|||||||||||||||
BXMX |
10/2004 | $ | 13.68 | 16.16 | % | 7.26 | % | 6.80 | % | |||||||||||
DIAX |
04/2005 | $ | 18.20 | 14.94 | % | 8.38 | % | 6.48 | % | |||||||||||
SPXX |
11/2005 | $ | 16.27 | 20.62 | % | 7.81 | % | 6.52 | % | |||||||||||
QQQX |
01/2007 | $ | 24.12 | 27.33 | % | 11.52 | % | 6.47 | % |
1 | Return of Capital may represent unrealized gains, return of shareholder’s principal, or both. In certain circumstances, all or a portion of the return of capital may be characterized as ordinary income under federal tax law. The actual tax characterization will be provided to shareholders on Form 1099-DIV shortly after calendar year-end. |
CHANGE IN METHOD OF PUBLISHING NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS
During November 2019, the Nuveen Closed-End Funds discontinued the practice of announcing Fund distribution amounts and timing via press release. Instead, information about the Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders are posted and can be found on Nuveen’s enhanced closed-end fund resource page, which is at www.nuveen.com/closed-end-fund-distributions, along with other Nuveen closed-end fund product updates. Shareholders can expect regular distribution information to be posted on www.nuveen.com on the first business day of each month. To ensure that our shareholders have timely access to the latest information, a subscribe function can be activated at this link here, or at this web page (www.nuveen.com/en-us/people/about-nuveen/for-the-media).
COMMON SHARE EQUITY SHELF PROGRAMS
During the current reporting period, the Funds were authorized by the Securities and Exchange Commission to issue additional common shares through an equity shelf program (Shelf Offering). Under these programs, the Funds, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above each Fund’s NAV per common share. The total amount of common shares authorized under these Shelf Offerings are as shown in the accompanying table.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Additional authorized common shares |
10,400,000 | 3,600,000 | 1,600,000 | 11,355,021 |
During the current reporting period, the Funds sold common shares through their Shelf Offerings at a weighted average premium to their NAV per common share as shown in the accompanying table.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Common shares sold through shelf offering |
242,725 | 205,606 | 380,562 | 1,619,980 | ||||||||||||
Weighted average premium to NAV per common share sold |
1.18 | % | 1.34 | % | 1.27 | % | 1.78 | % |
Refer to Notes to Financial Statements, Note 5 – Fund Shares, Common Share Equity Shelf Programs and Offering Costs for further details of Shelf Offerings and each Fund’s respective transactions.
COMMON SHARE REPURCHASES
During August 2019, the Funds’ Board of Trustees reauthorized an open-market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding common shares.
As of December 31, 2019, and since the inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their outstanding common shares as shown in the accompanying table.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Common shares cumulatively repurchased and retired |
460,238 | — | 383,763 | — | ||||||||||||
Common shares authorized for repurchase |
10,385,000 | 3,625,000 | 1,680,000 | 3,930,000 |
During the current reporting period, the Funds did not repurchase any of their outstanding common shares.
14
OTHER COMMON SHARE INFORMATION
As of December 31, 2019, and during the current reporting period, the Funds’ common share prices were trading at a premium/(discount) to their NAVs as shown in the accompanying table.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Common share NAV |
$ | 13.68 | $ | 18.20 | $ | 16.27 | $ | 24.12 | ||||||||
Common share price |
$ | 13.75 | $ | 17.66 | $ | 16.47 | $ | 24.05 | ||||||||
Premium/(Discount) to NAV |
0.51 | % | (2.97 | )% | 1.23 | % | (0.29 | )% | ||||||||
12-month average premium/(discount) to NAV |
(1.14 | )% | (1.31 | )% | 0.84 | % | (0.05 | )% |
15
Risk Considerations and Investment Policy Updates
Risk Considerations
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation.
Nuveen S&P 500 Buy-Write Income Fund (BXMX)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Common stock returns often have experienced significant volatility. The Fund may not participate in any appreciation of its equity portfolio as fully as it would if the Fund did not sell call options. In addition, the Fund will continue to bear the risk of declines in the value of the equity portfolio. Because index options are settled in cash, sellers of index call options, such as the Fund, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities. For these and other risks, including tax risk, please see the Fund’s web page at www.nuveen.com/BXMX.
Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Common stock returns often have experienced significant volatility. The Fund may not participate in any appreciation of its equity portfolio as fully as it would if the Fund did not sell call options. In addition, the Fund will continue to bear the risk of declines in the value of the equity portfolio. Because index options are settled in cash, sellers of index call options, such as the Fund, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities. For these and other risks, including tax risk, please see the Fund’s web page at www.nuveen.com/DIAX.
Nuveen S&P 500 Dynamic Overwrite Fund (SPXX)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Common stock returns often have experienced significant volatility. The Fund may not participate in any appreciation of its equity portfolio as fully as it would if the Fund did not sell call options. In addition, the Fund will continue to bear the risk of declines in the value of the equity portfolio. Because index options are settled in cash, sellers of index call options, such as the Fund, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities. For these and other risks, including tax risk, please see the Fund’s web page at www.nuveen.com/SPXX.
Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Common stock returns often have experienced significant volatility. The Fund may not participate in any appreciation of its equity portfolio as fully as it would if the Fund did not sell call options. In addition, the Fund will continue to bear the risk of declines in the value of the equity portfolio. Because index options are settled in cash, sellers of index call options, such as the Fund, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities. For these and other risks, including tax risk, please see the Fund’s web page at www.nuveen.com/QQQX.
16
Investment Policy Updates
Change in Investment Policy
Each Fund has recently adopted the following policy regarding limits to investments in illiquid securities: While there are no such limits imposed by applicable regulations, certain Nuveen Closed-End Funds formerly had investment policies that placed limits on a Fund’s ability to invest in illiquid securities. All exchange-listed Nuveen Closed-End Funds now have no formal limit on their ability to invest in such illiquid securities, but each Fund’s portfolio management team will monitor such investments in the regular, overall management of the Fund’s portfolio securities.
17
BXMX | Nuveen S&P 500 Buy-Write Income Fund Performance Overview and Holding Summaries as of December 31, 2019 |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of December 31, 2019
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
BXMX at Common Share NAV | 16.16% | 7.26% | 8.43% | |||||||||
BXMX at Common Share Price | 22.08% | 10.18% | 8.96% | |||||||||
CBOE S&P 500® BuyWrite Index (BXMSM) | 15.68% | 7.00% | 7.05% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
Common Share Price Performance — Weekly Closing Price
18
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Fund Allocation
(% of net assets)
Common Stocks | 100.9% | |||
Repurchase Agreements | 1.8% | |||
Other Assets Less Liabilities | (2.7)% | |||
Net Assets |
100% |
Top Five Issuers
(% of total long-term investments)
Apple Inc | 4.8% | |||
Microsoft Corp | 4.7% | |||
Alphabet Inc | 3.2% | |||
Amazon.Com, Inc | 3.0% | |||
JP Morgan Chase & Co | 2.0% |
Portfolio Composition
(% of total investments)
19
DIAX | Nuveen Dow 30SM Dynamic Overwrite Fund Performance Overview and Holding Summaries as of December 31, 2019 |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of December 31, 2019
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
DIAX at Common Share NAV | 14.94% | 8.38% | 10.13% | |||||||||
DIAX at Common Share Price | 17.07% | 10.05% | 9.53% | |||||||||
Dow Jones Industrial Average (DJIA) | 25.34% | 12.59% | 13.40% | |||||||||
DIAX Blended Benchmark1 | 19.26% | 9.27% | 9.67% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
Common Share Price Performance — Weekly Closing Price
1 | The DIAX Blended Benchmark consists of: 1) 55% Chicago Board Options Exchange (Cboe) DJIA BuyWrite Index (BXD), 2) 45% Dow Jones Industrial Average (DJIA). |
20
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
21
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund Performance Overview and Holding Summaries as of December 31, 2019 |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of December 31, 2019
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
SPXX at Common Share NAV | 20.62% | 7.81% | 9.09% | |||||||||
SPXX at Common Share Price | 25.40% | 10.27% | 10.34% | |||||||||
S&P 500® Index1 | 31.49% | 11.70% | 13.56% | |||||||||
SPXX Blended Benchmark | 22.60% | 9.13% | 9.99% |
Performance prior to December 22, 2014, reflects the Fund’s performance under the management of a sub-adviser using an investment strategy that differed from those currently in place.
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
Common Share Price Performance — Weekly Closing Price
1 | The SPXX Blended Benchmark consists of: 1) 55% Chicago Board Options Exchange (Cboe) S&P 500 BuyWrite Index (BXMSM), 2) 45% S&P 500®. |
22
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Fund Allocation
(% of net assets)
Common Stocks | 100.1% | |||
Common Stock Rights | 0.0% | |||
Repurchase Agreements | 0.5% | |||
Other Assets Less Liabilities | (0.6)% | |||
Net Assets | 100% |
Top Five Issuers
(% of total long-term investments)
Apple Inc | 5.1% | |||
Microsoft Corp | 4.9% | |||
Amazon.Com, Inc | 3.1% | |||
Alphabet Inc | 3.0% | |||
JP Morgan Chase & Co | 2.2% |
Portfolio Composition
(% of total investments)
23
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund Performance Overview and Holding Summaries as of December 31, 2019 |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Average Annual Total Returns as of December 31, 2019
Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
QQQX at Common Share NAV | 27.33% | 11.52% | 13.70% | |||||||||
QQQX at Common Share Price | 28.73% | 12.31% | 13.58% | |||||||||
Nasdaq 100® Index | 39.46% | 16.91% | 18.07% | |||||||||
QQQX Blended Benchmark1 | 27.95% | 12.85% | 12.41% |
Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
Common Share Price Performance — Weekly Closing Price
1 | The QQQX Blended Benchmark consists of: 1) 55% Chicago Board of Exchange (Cboe) Nasdaq 100 BuyWrite Index (BXNSM), 2) 45% Nasdaq-100 Index. |
24
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
25
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen S&P 500 Buy-Write Income Fund
Nuveen Dow 30SM Dynamic Overwrite Fund
Nuveen S&P 500 Dynamic Overwrite Fund
Nuveen Nasdaq 100 Dynamic Overwrite Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen S&P 500 Buy-Write Income Fund, Nuveen Dow 30SM Dynamic Overwrite Fund, Nuveen S&P 500 Dynamic Overwrite Fund and Nuveen Nasdaq 100 Dynamic Overwrite Fund (hereafter collectively referred to as the “Funds”) as of December 31, 2019, the related statements of operations for the year ended December 31, 2019, the statements of changes in net assets for each of the two years in the period ended December 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2019, 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 ended December 31, 2019 and each of the financial highlights for each of the five years in the period ended December 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
PricewaterhouseCoopers LLP
Chicago, Illinois
February 27, 2020
We have served as the auditor of one or more investment companies in Nuveen Funds since 2002.
26
BXMX | Nuveen S&P 500 Buy-Write
|
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 100.9% |
||||||||||||||||
COMMON STOCKS – 100.9% (2) |
||||||||||||||||
Aerospace & Defense – 2.3% | ||||||||||||||||
41,868 | Arconic Inc |
$ | 1,288,278 | |||||||||||||
31,830 | Boeing Co |
10,368,941 | ||||||||||||||
9,566 | HEICO Corp |
1,091,959 | ||||||||||||||
7,494 | Huntington Ingalls Industries Inc |
1,880,095 | ||||||||||||||
14,128 | Northrop Grumman Corp |
4,859,608 | ||||||||||||||
24,288 | Raytheon Co |
5,337,045 | ||||||||||||||
56,947 | United Technologies Corp |
8,528,383 | ||||||||||||||
Total Aerospace & Defense |
33,354,309 | |||||||||||||||
Air Freight & Logistics – 0.5% | ||||||||||||||||
59,898 | United Parcel Service Inc, Class B |
7,011,660 | ||||||||||||||
Airlines – 0.3% | ||||||||||||||||
49,834 | United Airlines Holdings Inc, (3) |
4,389,877 | ||||||||||||||
Auto Components – 0.1% | ||||||||||||||||
10,862 | Cooper Tire & Rubber Co |
312,282 | ||||||||||||||
50,606 | Gentex Corp |
1,466,562 | ||||||||||||||
Total Auto Components |
1,778,844 | |||||||||||||||
Automobiles – 0.3% | ||||||||||||||||
270,157 | Ford Motor Co |
2,512,460 | ||||||||||||||
24,260 | Harley-Davidson Inc |
902,229 | ||||||||||||||
1,775 | Tesla Inc, (3) |
742,536 | ||||||||||||||
Total Automobiles |
4,157,225 | |||||||||||||||
Banks – 5.9% | ||||||||||||||||
570,685 | Bank of America Corp |
20,099,526 | ||||||||||||||
153,202 | Citigroup Inc |
12,239,308 | ||||||||||||||
26,341 | Comerica Inc |
1,889,967 | ||||||||||||||
88,630 | Fifth Third Bancorp |
2,724,486 | ||||||||||||||
108,513 | First Horizon National Corp |
1,796,975 | ||||||||||||||
210,599 | JPMorgan Chase & Co |
29,357,500 | ||||||||||||||
22,489 | M&T Bank Corp |
3,817,508 | ||||||||||||||
229,426 | Wells Fargo & Co |
12,343,119 | ||||||||||||||
Total Banks |
84,268,389 | |||||||||||||||
Beverages – 2.0% | ||||||||||||||||
236,012 | Coca-Cola Co |
13,063,264 | ||||||||||||||
4,611 | Keurig Dr Pepper Inc |
133,489 | ||||||||||||||
40,037 | Monster Beverage Corp, (3) |
2,544,351 | ||||||||||||||
94,067 | PepsiCo Inc |
12,856,137 | ||||||||||||||
Total Beverages |
28,597,241 | |||||||||||||||
Biotechnology – 2.1% | ||||||||||||||||
89,175 | AbbVie Inc |
7,895,555 | ||||||||||||||
3,766 | Alnylam Pharmaceuticals Inc, (3) |
433,730 | ||||||||||||||
41,186 | Amgen Inc |
9,928,709 | ||||||||||||||
13,139 | Biogen Inc, (3) |
3,898,735 | ||||||||||||||
12,436 | BioMarin Pharmaceutical Inc, (3) |
1,051,464 | ||||||||||||||
5,150 | Exact Sciences Corp, (3) |
476,272 | ||||||||||||||
92,497 | Gilead Sciences Inc |
6,010,455 | ||||||||||||||
6,268 | Seattle Genetics Inc, (3) |
716,182 | ||||||||||||||
Total Biotechnology |
30,411,102 |
27
BXMX | Nuveen S&P 500 Buy-Write Income Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Building Products – 0.4% | ||||||||||||||||
15,922 | Allegion PLC |
$ | 1,982,926 | |||||||||||||
62,640 | Masco Corp |
3,006,093 | ||||||||||||||
Total Building Products |
4,989,019 | |||||||||||||||
Capital Markets – 2.7% | ||||||||||||||||
98,862 | Charles Schwab Corp |
4,701,877 | ||||||||||||||
29,588 | CME Group Inc |
5,938,903 | ||||||||||||||
42,992 | Eaton Vance Corp |
2,007,296 | ||||||||||||||
28,147 | Goldman Sachs Group Inc |
6,471,840 | ||||||||||||||
69,945 | Intercontinental Exchange Inc |
6,473,410 | ||||||||||||||
23,232 | Legg Mason Inc |
834,261 | ||||||||||||||
124,288 | Morgan Stanley |
6,353,602 | ||||||||||||||
21,558 | S&P Global Inc |
5,886,412 | ||||||||||||||
2,591 | TD Ameritrade Holding Corp |
128,773 | ||||||||||||||
13,047 | Waddell & Reed Financial Inc, Class A |
218,146 | ||||||||||||||
Total Capital Markets |
39,014,520 | |||||||||||||||
Chemicals – 1.2% | ||||||||||||||||
22,547 | AdvanSix Inc, (3) |
450,038 | ||||||||||||||
16,669 | Chemours Co |
301,542 | ||||||||||||||
78,267 | Corteva Inc |
2,313,573 | ||||||||||||||
65,033 | Dow Inc |
3,559,256 | ||||||||||||||
62,296 | DuPont de Nemours Inc |
3,999,403 | ||||||||||||||
47,248 | Eastman Chemical Co |
3,744,876 | ||||||||||||||
41,063 | Olin Corp |
708,337 | ||||||||||||||
34,202 | RPM International Inc |
2,625,346 | ||||||||||||||
Total Chemicals |
17,702,371 | |||||||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||||||||
52,712 | Waste Management Inc |
6,007,060 | ||||||||||||||
Communications Equipment – 1.2% | ||||||||||||||||
24,808 | Ciena Corp, (3) |
1,059,053 | ||||||||||||||
266,720 | Cisco Systems Inc |
12,791,891 | ||||||||||||||
5,462 | Lumentum Holdings Inc, (3) |
433,137 | ||||||||||||||
17,783 | Motorola Solutions Inc |
2,865,553 | ||||||||||||||
27,916 | Viavi Solutions Inc, (3) |
418,740 | ||||||||||||||
Total Communications Equipment |
17,568,374 | |||||||||||||||
Consumer Finance – 0.4% | ||||||||||||||||
50,167 | Discover Financial Services |
4,255,165 | ||||||||||||||
98,887 | SLM Corp |
881,083 | ||||||||||||||
Total Consumer Finance |
5,136,248 | |||||||||||||||
Containers & Packaging – 0.5% | ||||||||||||||||
20,367 | Avery Dennison Corp |
2,664,411 | ||||||||||||||
7,736 | Crown Holdings Inc, (3) |
561,170 | ||||||||||||||
21,019 | Packaging Corp of America |
2,353,918 | ||||||||||||||
18,945 | Sonoco Products Co |
1,169,285 | ||||||||||||||
Total Containers & Packaging |
6,748,784 | |||||||||||||||
Distributors – 0.2% | ||||||||||||||||
23,926 | Genuine Parts Co |
2,541,659 | ||||||||||||||
Diversified Financial Services – 2.0% | ||||||||||||||||
118,178 | Berkshire Hathaway Inc, Class B, (3) |
26,767,317 | ||||||||||||||
53,398 | Jefferies Financial Group Inc |
1,141,115 | ||||||||||||||
12,729 | Voya Financial Inc |
776,215 | ||||||||||||||
Total Diversified Financial Services |
28,684,647 | |||||||||||||||
Diversified Telecommunication Services – 2.2% | ||||||||||||||||
402,548 | AT&T Inc |
15,731,576 | ||||||||||||||
241,697 | Verizon Communications Inc |
14,840,196 | ||||||||||||||
Total Diversified Telecommunication Services |
30,571,772 |
28
Shares | Description (1) | Value | ||||||||||||||
Electric Utilities – 1.4% | ||||||||||||||||
59,189 | Duke Energy Corp |
$ | 5,398,629 | |||||||||||||
48,432 | Evergy Inc |
3,152,439 | ||||||||||||||
52,512 | OGE Energy Corp |
2,335,209 | ||||||||||||||
44,815 | Pinnacle West Capital Corp |
4,030,213 | ||||||||||||||
79,055 | Southern Co |
5,035,803 | ||||||||||||||
Total Electric Utilities |
19,952,293 | |||||||||||||||
Electrical Equipment – 0.9% | ||||||||||||||||
39,086 | Eaton Corp PLC |
3,702,226 | ||||||||||||||
57,064 | Emerson Electric Co |
4,351,701 | ||||||||||||||
8,860 | Hubbell Inc |
1,309,685 | ||||||||||||||
16,930 | Rockwell Automation Inc |
3,431,203 | ||||||||||||||
Total Electrical Equipment |
12,794,815 | |||||||||||||||
Electronic Equipment, Instruments & Components – 0.3% | ||||||||||||||||
12,333 | CDW Corp |
1,761,645 | ||||||||||||||
74,116 | Corning Inc |
2,157,517 | ||||||||||||||
Total Electronic Equipment, Instruments & Components |
3,919,162 | |||||||||||||||
Energy Equipment & Services – 0.5% | ||||||||||||||||
18,338 | Diamond Offshore Drilling Inc, (3) |
131,850 | ||||||||||||||
82,352 | Halliburton Co |
2,015,154 | ||||||||||||||
56,354 | Patterson-UTI Energy Inc |
591,717 | ||||||||||||||
102,821 | Schlumberger Ltd |
4,133,404 | ||||||||||||||
Total Energy Equipment & Services |
6,872,125 | |||||||||||||||
Entertainment – 2.0% | ||||||||||||||||
46,851 | Activision Blizzard Inc |
2,783,886 | ||||||||||||||
27,343 | Netflix Inc, (3) |
8,847,375 | ||||||||||||||
3,692 | Roku Inc, (3) |
494,359 | ||||||||||||||
112,326 | Walt Disney Co |
16,245,709 | ||||||||||||||
Total Entertainment |
28,371,329 | |||||||||||||||
Equity Real Estate Investment Trust – 2.8% | ||||||||||||||||
33,108 | American Homes 4 Rent, Class A |
867,761 | ||||||||||||||
85,831 | Apartment Investment & Management Co, Class A |
4,433,171 | ||||||||||||||
40,593 | Brandywine Realty Trust |
639,340 | ||||||||||||||
81,089 | CubeSmart |
2,552,682 | ||||||||||||||
105,753 | Equity Commonwealth |
3,471,871 | ||||||||||||||
84,268 | Healthcare Realty Trust Inc |
2,812,023 | ||||||||||||||
21,679 | Invitation Homes Inc |
649,720 | ||||||||||||||
98,614 | Lexington Realty Trust |
1,047,281 | ||||||||||||||
50,701 | Liberty Property Trust |
3,044,595 | ||||||||||||||
76,035 | Prologis Inc |
6,777,760 | ||||||||||||||
51,162 | Sabra Health Care REIT Inc |
1,091,797 | ||||||||||||||
21,516 | Sun Communities Inc |
3,229,551 | ||||||||||||||
48,653 | Ventas Inc |
2,809,224 | ||||||||||||||
62,339 | Welltower Inc |
5,098,083 | ||||||||||||||
62,741 | Weyerhaeuser Co |
1,894,778 | ||||||||||||||
Total Equity Real Estate Investment Trust |
40,419,637 | |||||||||||||||
Food & Staples Retailing – 1.5% | ||||||||||||||||
3,640 | Casey’s General Stores Inc |
578,724 | ||||||||||||||
90,209 | Kroger Co |
2,615,159 | ||||||||||||||
28,977 | US Foods Holding Corp, (3) |
1,213,846 | ||||||||||||||
61,680 | Walgreens Boots Alliance Inc |
3,636,653 | ||||||||||||||
108,365 | Walmart Inc |
12,878,096 | ||||||||||||||
Total Food & Staples Retailing |
20,922,478 | |||||||||||||||
Food Products – 0.8% | ||||||||||||||||
24,890 | Lamb Weston Holdings Inc |
2,141,287 | ||||||||||||||
155,956 | Mondelez International Inc, Class A |
8,590,056 | ||||||||||||||
7,981 | Post Holdings Inc, (3) |
870,727 | ||||||||||||||
Total Food Products |
11,602,070 |
29
BXMX | Nuveen S&P 500 Buy-Write Income Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Gas Utilities – 0.1% | ||||||||||||||||
13,073 | Atmos Energy Corp |
$ | 1,462,346 | |||||||||||||
2,933 | National Fuel Gas Co |
136,502 | ||||||||||||||
Total Gas Utilities |
1,598,848 | |||||||||||||||
Health Care Equipment & Supplies – 3.2% | ||||||||||||||||
137,518 | Abbott Laboratories |
11,944,813 | ||||||||||||||
7,646 | Avanos Medical Inc, (3) |
257,670 | ||||||||||||||
49,755 | Baxter International Inc |
4,160,513 | ||||||||||||||
88,385 | Boston Scientific Corp, (3) |
3,996,770 | ||||||||||||||
24,533 | Hill-Rom Holdings Inc |
2,785,232 | ||||||||||||||
62,503 | Hologic Inc, (3) |
3,263,282 | ||||||||||||||
11,216 | Intuitive Surgical Inc, (3) |
6,630,338 | ||||||||||||||
108,168 | Medtronic PLC |
12,271,660 | ||||||||||||||
Total Health Care Equipment & Supplies |
45,310,278 | |||||||||||||||
Health Care Providers & Services – 3.0% | ||||||||||||||||
21,108 | Anthem Inc |
6,375,249 | ||||||||||||||
24,227 | Cigna Corp |
4,954,179 | ||||||||||||||
8,265 | Covetrus Inc, (3) |
109,098 | ||||||||||||||
76,107 | CVS Health Corp |
5,653,989 | ||||||||||||||
27,308 | HCA Healthcare Inc |
4,036,396 | ||||||||||||||
32,844 | Henry Schein Inc, (3) |
2,191,352 | ||||||||||||||
64,040 | UnitedHealth Group Inc |
18,826,479 | ||||||||||||||
Total Health Care Providers & Services |
42,146,742 | |||||||||||||||
Health Care Technology – 0.3% | ||||||||||||||||
48,264 | Cerner Corp |
3,542,095 | ||||||||||||||
Hotels, Restaurants & Leisure – 2.0% | ||||||||||||||||
30,663 | Carnival Corp |
1,558,600 | ||||||||||||||
4,347 | Domino’s Pizza Inc |
1,277,062 | ||||||||||||||
4,278 | Dunkin’ Brands Group Inc |
323,160 | ||||||||||||||
33,299 | Marriott International Inc/MD, Class A |
5,042,468 | ||||||||||||||
5,670 | Marriott Vacations Worldwide Corp |
730,069 | ||||||||||||||
54,028 | McDonald’s Corp |
10,676,473 | ||||||||||||||
85,024 | Starbucks Corp |
7,475,310 | ||||||||||||||
10,801 | Wynn Resorts Ltd |
1,499,935 | ||||||||||||||
Total Hotels, Restaurants & Leisure |
28,583,077 | |||||||||||||||
Household Durables – 0.5% | ||||||||||||||||
20,159 | Garmin Ltd |
1,966,712 | ||||||||||||||
32,967 | KB Home |
1,129,779 | ||||||||||||||
23,685 | Newell Brands Inc |
455,226 | ||||||||||||||
403 | NVR Inc, (3) |
1,534,789 | ||||||||||||||
9,507 | TopBuild Corp, (3) |
979,981 | ||||||||||||||
6,203 | Whirlpool Corp |
915,129 | ||||||||||||||
Total Household Durables |
6,981,616 | |||||||||||||||
Household Products – 1.8% | ||||||||||||||||
81,696 | Colgate-Palmolive Co |
5,623,953 | ||||||||||||||
162,734 | Procter & Gamble Co |
20,325,476 | ||||||||||||||
1,338 | Spectrum Brands Holdings Inc |
86,020 | ||||||||||||||
Total Household Products |
26,035,449 | |||||||||||||||
Industrial Conglomerates – 1.5% | ||||||||||||||||
33,787 | 3M Co |
5,960,702 | ||||||||||||||
518,111 | General Electric Co |
5,782,119 | ||||||||||||||
56,336 | Honeywell International Inc |
9,971,472 | ||||||||||||||
Total Industrial Conglomerates |
21,714,293 | |||||||||||||||
Insurance – 2.4% | ||||||||||||||||
392 | Alleghany Corp, (3) |
313,431 | ||||||||||||||
44,247 | Allstate Corp |
4,975,575 |
30
Shares | Description (1) | Value | ||||||||||||||
Insurance (continued) | ||||||||||||||||
73,283 | American International Group Inc |
$ | 3,761,616 | |||||||||||||
49,370 | Arthur J Gallagher & Co |
4,701,505 | ||||||||||||||
37,130 | CNO Financial Group Inc |
673,167 | ||||||||||||||
23,577 | Fidelity National Financial Inc |
1,069,217 | ||||||||||||||
32,421 | Genworth Financial Inc, Class A, (3) |
142,652 | ||||||||||||||
65,166 | Hartford Financial Services Group Inc |
3,960,138 | ||||||||||||||
4,703 | Kemper Corp |
364,483 | ||||||||||||||
39,379 | Lincoln National Corp |
2,323,755 | ||||||||||||||
48,336 | Marsh & McLennan Cos Inc |
5,385,114 | ||||||||||||||
2,957 | RenaissanceRe Holdings Ltd |
579,631 | ||||||||||||||
38,705 | Travelers Cos Inc |
5,300,650 | ||||||||||||||
3,483 | WR Berkley Corp |
240,675 | ||||||||||||||
Total Insurance |
33,791,609 | |||||||||||||||
Interactive Media & Services – 5.3% | ||||||||||||||||
17,158 | Alphabet Inc, Class A (3) |
22,981,254 | ||||||||||||||
17,261 | Alphabet Inc, Class C (3) |
23,078,302 | ||||||||||||||
139,617 | Facebook Inc, Class A, (3) |
28,656,389 | ||||||||||||||
4,685 | IAC/InterActiveCorp, (3) |
1,167,080 | ||||||||||||||
Total Interactive Media & Services |
75,883,025 | |||||||||||||||
Internet & Direct Marketing Retail – 3.6% | ||||||||||||||||
23,457 | Amazon.com Inc, (3) |
43,344,783 | ||||||||||||||
2,975 | Booking Holdings Inc, (3) |
6,109,847 | ||||||||||||||
61,995 | eBay Inc |
2,238,639 | ||||||||||||||
Total Internet & Direct Marketing Retail |
51,693,269 | |||||||||||||||
IT Services – 4.9% | ||||||||||||||||
26,791 | Akamai Technologies Inc, (3) |
2,314,207 | ||||||||||||||
1,922 | Alliance Data Systems Corp |
215,648 | ||||||||||||||
38,161 | Automatic Data Processing Inc |
6,506,451 | ||||||||||||||
16,990 | Black Knight Inc, (3) |
1,095,515 | ||||||||||||||
23,562 | Broadridge Financial Solutions Inc |
2,910,850 | ||||||||||||||
52,417 | Fidelity National Information Services Inc |
7,290,681 | ||||||||||||||
53,753 | International Business Machines Corp |
7,205,052 | ||||||||||||||
88,213 | PayPal Holdings Inc, (3) |
9,542,000 | ||||||||||||||
4,691 | Twilio Inc, Class A, (3) |
461,031 | ||||||||||||||
25,712 | VeriSign Inc, (3) |
4,954,188 | ||||||||||||||
142,000 | Visa Inc, Class A |
26,681,800 | ||||||||||||||
Total IT Services |
69,177,423 | |||||||||||||||
Leisure Products – 0.1% | ||||||||||||||||
25,861 | Mattel Inc, (3) |
350,417 | ||||||||||||||
7,753 | Polaris Inc |
788,480 | ||||||||||||||
Total Leisure Products |
1,138,897 | |||||||||||||||
Life Sciences Tools & Services – 0.6% | ||||||||||||||||
24,185 | Thermo Fisher Scientific Inc |
7,856,981 | ||||||||||||||
Machinery – 2.0% | ||||||||||||||||
40,103 | Caterpillar Inc |
5,922,411 | ||||||||||||||
18,609 | Cummins Inc |
3,330,267 | ||||||||||||||
25,288 | Deere & Co |
4,381,399 | ||||||||||||||
33,045 | Graco Inc |
1,718,340 | ||||||||||||||
24,493 | Ingersoll-Rand PLC |
3,255,609 | ||||||||||||||
16,893 | Parker-Hannifin Corp |
3,476,917 | ||||||||||||||
10,699 | Snap-on Inc |
1,812,410 | ||||||||||||||
21,492 | Stanley Black & Decker Inc |
3,562,084 | ||||||||||||||
10,383 | Timken Co |
584,667 | ||||||||||||||
4,597 | Woodward Inc |
544,469 | ||||||||||||||
Total Machinery |
28,588,573 |
31
BXMX | Nuveen S&P 500 Buy-Write Income Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Media – 1.2% | ||||||||||||||||
282,270 | Comcast Corp, Class A |
$ | 12,693,682 | |||||||||||||
21,843 | DISH Network Corp, Class A, (3) |
774,771 | ||||||||||||||
25,477 | New York Times Co, Class A |
819,595 | ||||||||||||||
79,467 | News Corp, Class A |
1,123,663 | ||||||||||||||
22,488 | Omnicom Group Inc |
1,821,978 | ||||||||||||||
Total Media |
17,233,689 | |||||||||||||||
Metals & Mining – 0.4% | ||||||||||||||||
33,990 | Barrick Gold Corp |
631,874 | ||||||||||||||
62,781 | Newmont Goldcorp Corp |
2,727,835 | ||||||||||||||
37,498 | Nucor Corp |
2,110,387 | ||||||||||||||
Total Metals & Mining |
5,470,096 | |||||||||||||||
Mortgage Real Estate Investment Trust – 0.0% | ||||||||||||||||
48,788 | Annaly Capital Management Inc |
459,583 | ||||||||||||||
Multiline Retail – 0.1% | ||||||||||||||||
25,320 | Macy’s Inc |
430,440 | ||||||||||||||
16,563 | Nordstrom Inc |
677,924 | ||||||||||||||
Total Multiline Retail |
1,108,364 | |||||||||||||||
Multi-Utilities – 1.7% | ||||||||||||||||
67,348 | Ameren Corp |
5,172,326 | ||||||||||||||
55,108 | Consolidated Edison Inc |
4,985,621 | ||||||||||||||
17,519 | NorthWestern Corp |
1,255,587 | ||||||||||||||
68,562 | Public Service Enterprise Group Inc |
4,048,586 | ||||||||||||||
91,353 | WEC Energy Group Inc |
8,425,487 | ||||||||||||||
Total Multi-Utilities |
23,887,607 | |||||||||||||||
Oil, Gas & Consumable Fuels – 4.0% | ||||||||||||||||
56,272 | Cenovus Energy Inc |
571,161 | ||||||||||||||
18,536 | Cheniere Energy Inc, (3) |
1,131,994 | ||||||||||||||
113,576 | Chevron Corp |
13,687,044 | ||||||||||||||
22,578 | CNX Resources Corp, (3) |
199,815 | ||||||||||||||
88,050 | ConocoPhillips |
5,725,892 | ||||||||||||||
32,145 | Continental Resources Inc/OK |
1,102,574 | ||||||||||||||
89,671 | Encana Corp |
420,557 | ||||||||||||||
258,087 | Exxon Mobil Corp |
18,009,311 | ||||||||||||||
38,804 | Hess Corp |
2,592,495 | ||||||||||||||
57,206 | Occidental Petroleum Corp |
2,357,459 | ||||||||||||||
33,008 | ONEOK Inc |
2,497,715 | ||||||||||||||
37,257 | Phillips 66 |
4,150,802 | ||||||||||||||
15,494 | Suncor Energy Inc |
508,203 | ||||||||||||||
38,651 | Valero Energy Corp |
3,619,666 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
56,574,688 | |||||||||||||||
Pharmaceuticals – 5.0% | ||||||||||||||||
17,398 | Allergan PLC |
3,325,976 | ||||||||||||||
142,852 | Bristol-Myers Squibb Co |
9,169,670 | ||||||||||||||
61,081 | Eli Lilly & Co |
8,027,876 | ||||||||||||||
155,741 | Johnson & Johnson |
22,717,940 | ||||||||||||||
166,327 | Merck & Co Inc |
15,127,440 | ||||||||||||||
318,517 | Pfizer Inc |
12,479,496 | ||||||||||||||
Total Pharmaceuticals |
70,848,398 | |||||||||||||||
Professional Services – 0.2% | ||||||||||||||||
2,639 | CoStar Group Inc, (3) |
1,578,914 | ||||||||||||||
9,803 | ManpowerGroup Inc |
951,871 | ||||||||||||||
3,437 | TransUnion |
294,242 | ||||||||||||||
Total Professional Services |
2,825,027 |
32
Shares | Description (1) | Value | ||||||||||||||
Road & Rail – 0.9% | ||||||||||||||||
8,512 | Canadian Pacific Railway Ltd |
$ | 2,170,134 | |||||||||||||
4,425 | Lyft Inc, Class A, (3) |
190,364 | ||||||||||||||
32,908 | Norfolk Southern Corp |
6,388,430 | ||||||||||||||
17,831 | Old Dominion Freight Line Inc |
3,383,967 | ||||||||||||||
16,520 | Uber Technologies Inc, (3) |
491,305 | ||||||||||||||
Total Road & Rail |
12,624,200 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 4.2% | ||||||||||||||||
50,793 | Analog Devices Inc |
6,036,240 | ||||||||||||||
26,083 | Broadcom Inc |
8,242,750 | ||||||||||||||
265,662 | Intel Corp |
15,899,871 | ||||||||||||||
22,159 | Lam Research Corp |
6,479,291 | ||||||||||||||
33,828 | Marvell Technology Group Ltd |
898,472 | ||||||||||||||
32,070 | Microchip Technology Inc |
3,358,370 | ||||||||||||||
40,805 | NVIDIA Corp |
9,601,416 | ||||||||||||||
12,918 | NXP Semiconductors NV |
1,643,945 | ||||||||||||||
70,235 | ON Semiconductor Corp, (3) |
1,712,329 | ||||||||||||||
70,368 | QUALCOMM Inc |
6,208,569 | ||||||||||||||
Total Semiconductors & Semiconductor Equipment |
60,081,253 | |||||||||||||||
Software – 7.6% | ||||||||||||||||
38,171 | Adobe Inc, (3) |
12,589,178 | ||||||||||||||
22,938 | Autodesk Inc, (3) |
4,208,205 | ||||||||||||||
552 | CDK Global Inc |
30,183 | ||||||||||||||
426,934 | Microsoft Corp |
67,327,492 | ||||||||||||||
148,455 | Oracle Corp |
7,865,146 | ||||||||||||||
3,531 | Palo Alto Networks Inc, (3) |
816,544 | ||||||||||||||
4,451 | Paycom Software Inc, (3) |
1,178,447 | ||||||||||||||
67,056 | Salesforce.com Inc, (3) |
10,905,988 | ||||||||||||||
10,864 | ServiceNow Inc, (3) |
3,067,124 | ||||||||||||||
3,736 | Zoom Video Communications Inc, Class A, (3) |
254,197 | ||||||||||||||
Total Software |
108,242,504 | |||||||||||||||
Specialty Retail – 2.8% | ||||||||||||||||
8,358 | American Eagle Outfitters Inc |
122,862 | ||||||||||||||
22,501 | Best Buy Co Inc |
1,975,588 | ||||||||||||||
2,459 | Burlington Stores Inc, (3) |
560,726 | ||||||||||||||
21,763 | CarMax Inc, (3) |
1,907,962 | ||||||||||||||
3,114 | Five Below Inc, (3) |
398,156 | ||||||||||||||
74,748 | Home Depot Inc |
16,323,468 | ||||||||||||||
53,089 | Lowe’s Cos Inc |
6,357,939 | ||||||||||||||
34,481 | Ross Stores Inc |
4,014,278 | ||||||||||||||
13,589 | Tiffany & Co |
1,816,170 | ||||||||||||||
96,004 | TJX Cos Inc |
5,862,004 | ||||||||||||||
Total Specialty Retail |
39,339,153 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 5.2% | ||||||||||||||||
235,058 | Apple Inc |
69,024,782 | ||||||||||||||
10,410 | Dell Technologies Inc, Class C, (3) |
534,970 | ||||||||||||||
113,540 | HP Inc |
2,333,247 | ||||||||||||||
27,940 | NetApp Inc |
1,739,265 | ||||||||||||||
Total Technology Hardware, Storage & Peripherals |
73,632,264 | |||||||||||||||
Textiles, Apparel & Luxury Goods – 0.5% | ||||||||||||||||
6,689 | Kontoor Brands Inc |
280,871 | ||||||||||||||
10,474 | Lululemon Athletica Inc, (3) |
2,426,511 | ||||||||||||||
46,827 | VF Corp |
4,666,779 | ||||||||||||||
Total Textiles, Apparel & Luxury Goods |
7,374,161 | |||||||||||||||
Thrifts & Mortgage Finance – 0.1% | ||||||||||||||||
65,278 | MGIC Investment Corp |
924,989 |
33
BXMX | Nuveen S&P 500 Buy-Write Income Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Tobacco – 0.8% | ||||||||||||||||
97,666 | Altria Group Inc |
$ | 4,874,510 | |||||||||||||
83,206 | Philip Morris International Inc |
7,079,999 | ||||||||||||||
Total Tobacco |
11,954,509 | |||||||||||||||
Trading Companies & Distributors – 0.0% | ||||||||||||||||
13,839 | HD Supply Holdings Inc, (3) |
556,605 | ||||||||||||||
Wireless Telecommunication Services – 0.0% | ||||||||||||||||
73,195 | Sprint Corp, (3) |
381,346 | ||||||||||||||
Total Long-Term Investments (cost $600,477,786) |
1,435,347,621 | |||||||||||||||
Principal Amount (000) |
Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.8% |
||||||||||||||||
REPURCHASE AGREEMENTS – 1.8% | ||||||||||||||||
$ | 26,089 | Repurchase Agreement with Fixed Income Clearing
Corporation, |
0.650% | 1/02/20 | $ | 26,089,426 | ||||||||||
Total Short-Term Investments (cost $26,089,426) |
26,089,426 | |||||||||||||||
Total Investments (cost $626,567,212) – 102.7% |
1,461,437,047 | |||||||||||||||
Other Assets Less Liabilities – (2.7)% (4) |
(38,765,153 | ) | ||||||||||||||
Net Assets Applicable to Common Shares – 100% |
$ | 1,422,671,894 |
Investments in Derivatives
Options Written
Description (5) | Type | Number of Contracts |
Notional Amount (6) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||||
S&P 500® Index |
Call | (489 | ) | $ | (154,035,000 | ) | $ | 3,150 | 1/17/20 | $ | (4,667,505 | ) | ||||||||||||
S&P 500® Index |
Call | (489 | ) | (152,812,500 | ) | 3,125 | 2/21/20 | (6,787,320 | ) | |||||||||||||||
S&P 500® Index |
Call | (489 | ) | (154,035,000 | ) | 3,150 | 2/21/20 | (5,789,760 | ) | |||||||||||||||
S&P 500® Index |
Call | (490 | ) | (156,800,000 | ) | 3,200 | 2/21/20 | (3,917,550 | ) | |||||||||||||||
S&P 500® Index |
Call | (490 | ) | (158,025,000 | ) | 3,225 | 2/21/20 | (3,057,600 | ) | |||||||||||||||
S&P 500® Index |
Call | (489 | ) | (160,147,500 | ) | 3,275 | 2/21/20 | (1,613,700 | ) | |||||||||||||||
S&P 500® Index |
Call | (489 | ) | (155,257,500 | ) | 3,175 | 3/20/20 | (5,772,645 | ) | |||||||||||||||
S&P 500® Index |
Call | (489 | ) | (157,702,500 | ) | 3,225 | 3/20/20 | (4,063,590 | ) | |||||||||||||||
S&P 500® Index |
Call | (489 | ) | (160,147,500 | ) | 3,275 | 3/20/20 | (2,601,480 | ) | |||||||||||||||
Total Options Written (premiums received $24,379,850) |
(4,403 | ) | $ | (1,408,962,500 | ) | $ | (38,271,150 | ) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | The Fund may designate up to 100% of its common stock investments to cover outstanding options written. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. Other assets less liabilities also includes the value of options as presented on the Statement of Assets and Liabilities. |
(5) | Exchange-traded, unless otherwise noted. |
(6) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100. |
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
34
DIAX | Nuveen Dow 30SM
Dynamic
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 100.2% |
||||||||||||||||
COMMON STOCKS – 100.2% |
||||||||||||||||
Aerospace & Defense – 11.3% | ||||||||||||||||
157,500 | Boeing Co, (2) |
$ | 51,307,200 | |||||||||||||
157,500 | United Technologies Corp, (2) |
23,587,200 | ||||||||||||||
Total Aerospace & Defense |
74,894,400 | |||||||||||||||
Banks – 3.3% | ||||||||||||||||
157,500 | JPMorgan Chase & Co |
21,955,500 | ||||||||||||||
Beverages – 1.3% | ||||||||||||||||
157,500 | Coca-Cola Co |
8,717,625 | ||||||||||||||
Capital Markets – 5.5% | ||||||||||||||||
157,500 | Goldman Sachs Group Inc, (2) |
36,213,975 | ||||||||||||||
Chemicals – 1.3% | ||||||||||||||||
157,500 | Dow Inc |
8,619,975 | ||||||||||||||
Communications Equipment – 1.1% | ||||||||||||||||
157,500 | Cisco Systems Inc |
7,553,700 | ||||||||||||||
Consumer Finance – 3.0% | ||||||||||||||||
157,500 | American Express Co, (2) |
19,607,175 | ||||||||||||||
Diversified Telecommunication Services – 1.5% | ||||||||||||||||
157,500 | Verizon Communications Inc, (2) |
9,670,500 | ||||||||||||||
Entertainment – 3.4% | ||||||||||||||||
157,500 | Walt Disney Co |
22,779,225 | ||||||||||||||
Food & Staples Retailing – 4.2% | ||||||||||||||||
157,500 | Walgreens Boots Alliance Inc |
9,286,200 | ||||||||||||||
157,500 | Walmart Inc, (2) |
18,717,300 | ||||||||||||||
Total Food & Staples Retailing |
28,003,500 | |||||||||||||||
Health Care Providers & Services – 7.0% | ||||||||||||||||
157,500 | UnitedHealth Group Inc, (2) |
46,301,850 | ||||||||||||||
Hotels, Restaurants & Leisure – 4.7% | ||||||||||||||||
157,500 | McDonald’s Corp, (2) |
31,123,575 | ||||||||||||||
Household Products – 3.0% | ||||||||||||||||
157,500 | Procter & Gamble Co, (2) |
19,671,750 | ||||||||||||||
Industrial Conglomerates – 4.2% | ||||||||||||||||
157,500 | 3M Co |
27,786,150 | ||||||||||||||
Insurance – 3.3% | ||||||||||||||||
157,500 | Travelers Cos Inc, (2) |
21,569,625 | ||||||||||||||
IT Services – 7.7% | ||||||||||||||||
157,500 | International Business Machines Corp, (2) |
21,111,300 | ||||||||||||||
157,500 | Visa Inc, Class A, (2) |
29,594,250 | ||||||||||||||
Total IT Services |
50,705,550 |
35
DIAX | Nuveen Dow 30SM Dynamic Overwrite Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Machinery – 3.5% | ||||||||||||||||
157,500 | Caterpillar Inc |
$ | 23,259,600 | |||||||||||||
Oil, Gas & Consumable Fuels – 4.5% | ||||||||||||||||
157,500 | Chevron Corp, (2) |
18,980,325 | ||||||||||||||
157,500 | Exxon Mobil Corp |
10,990,350 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
29,970,675 | |||||||||||||||
Pharmaceuticals – 6.6% | ||||||||||||||||
157,500 | Johnson & Johnson |
22,974,525 | ||||||||||||||
157,500 | Merck & Co Inc |
14,324,625 | ||||||||||||||
157,500 | Pfizer Inc, (2) |
6,170,850 | ||||||||||||||
Total Pharmaceuticals |
43,470,000 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 1.4% | ||||||||||||||||
157,500 | Intel Corp |
9,426,375 | ||||||||||||||
Software – 3.8% | ||||||||||||||||
157,500 | Microsoft Corp |
24,837,750 | ||||||||||||||
Specialty Retail – 5.2% | ||||||||||||||||
157,500 | Home Depot Inc |
34,394,850 | ||||||||||||||
Technology Hardware, Storage & Peripherals – 7.0% | ||||||||||||||||
157,500 | Apple Inc |
46,249,875 | ||||||||||||||
Textiles, Apparel & Luxury Goods – 2.4% | ||||||||||||||||
157,500 | NIKE Inc, Class B |
15,956,325 | ||||||||||||||
Total Long-Term Investments (cost $267,858,204) |
662,739,525 | |||||||||||||||
Principal Amount (000) |
Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.5% |
||||||||||||||||
REPURCHASE AGREEMENTS – 0.5% | ||||||||||||||||
$ | 2,982 | Repurchase Agreement with Fixed Income Clearing
Corporation, |
0.650% | 1/02/20 | $ | 2,981,745 | ||||||||||
Total Short-Term Investments (cost $2,981,745) |
2,981,745 | |||||||||||||||
Total Investments (cost $270,839,949) – 100.7% |
665,721,270 | |||||||||||||||
Other Assets Less Liabilities – (0.7)% (3) |
(4,466,358 | ) | ||||||||||||||
Net Assets Applicable to Common Shares – 100% |
$ | 661,254,912 |
Investments in Derivatives
Options Written
Description (4) | Type | Number of Contracts |
Notional Amount (5) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||||
Russell 2000® Index |
Call | (100 | ) | $ | (16,600,000 | ) | $ | 1,660 | 1/17/20 | $ | (261,500 | ) | ||||||||||||
S&P 500® Index |
Call | (1,125 | ) | (362,812,500 | ) | 3,225 | 1/17/20 | (3,926,250 | ) | |||||||||||||||
Total Options Written (premiums received $3,882,852) |
(1,225 | ) | $ | (379,412,500 | ) | $ | (4,187,750 | ) |
36
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | Investment, or portion of investment, has been pledged to collateralized the net payment obligations for investments in derivatives. |
(3) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. Other assets less liabilities also includes the value of options as presented on the Statement of Assets and Liabilities. |
(4) | Exchange-traded, unless otherwise noted. |
(5) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100. |
See accompanying notes to financial statements.
37
SPXX | Nuveen S&P 500 Dynamic
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 100.1% |
||||||||||||||||
COMMON STOCKS – 100.1% |
||||||||||||||||
Aerospace & Defense – 2.7% | ||||||||||||||||
8,289 | Boeing Co |
$ | 2,700,224 | |||||||||||||
4,194 | Lockheed Martin Corp |
1,633,060 | ||||||||||||||
6,046 | Raytheon Co |
1,328,548 | ||||||||||||||
11,504 | United Technologies Corp, (2) |
1,722,839 | ||||||||||||||
Total Aerospace & Defense |
7,384,671 | |||||||||||||||
Air Freight & Logistics – 0.6% | ||||||||||||||||
14,315 | United Parcel Service Inc, Class B |
1,675,714 | ||||||||||||||
Airlines – 0.3% | ||||||||||||||||
8,481 | Alaska Air Group Inc |
574,588 | ||||||||||||||
7,019 | JetBlue Airways Corp, (3) |
131,395 | ||||||||||||||
Total Airlines |
705,983 | |||||||||||||||
Auto Components – 0.1% | ||||||||||||||||
7,507 | Cooper Tire & Rubber Co |
215,826 | ||||||||||||||
Automobiles – 0.3% | ||||||||||||||||
75,856 | Ford Motor Co, (2) |
705,461 | ||||||||||||||
Banks – 6.9% | ||||||||||||||||
115,053 | Bank of America Corp, (2) |
4,052,167 | ||||||||||||||
29,250 | Citigroup Inc |
2,336,783 | ||||||||||||||
11,992 | Comerica Inc |
860,426 | ||||||||||||||
12,187 | Fifth Third Bancorp |
374,628 | ||||||||||||||
46,801 | Huntington Bancshares Inc, (2) |
705,759 | ||||||||||||||
42,901 | JPMorgan Chase & Co |
5,980,399 | ||||||||||||||
32,078 | Regions Financial Corp |
550,459 | ||||||||||||||
30,615 | US Bancorp |
1,815,163 | ||||||||||||||
40,950 | Wells Fargo & Co |
2,203,110 | ||||||||||||||
Total Banks |
18,878,894 | |||||||||||||||
Beverages – 2.4% | ||||||||||||||||
6,629 | Brown-Forman Corp, Class B |
448,121 | ||||||||||||||
55,381 | Coca-Cola Co, (2) |
3,065,338 | ||||||||||||||
23,400 | PepsiCo Inc |
3,198,078 | ||||||||||||||
Total Beverages |
6,711,537 | |||||||||||||||
Biotechnology – 1.6% | ||||||||||||||||
19,022 | AbbVie Inc, (2) |
1,684,208 | ||||||||||||||
10,727 | Amgen Inc |
2,585,958 | ||||||||||||||
Total Biotechnology |
4,270,166 | |||||||||||||||
Capital Markets – 3.0% | ||||||||||||||||
22,424 | Charles Schwab Corp |
1,066,485 | ||||||||||||||
7,411 | CME Group Inc |
1,487,536 | ||||||||||||||
15,210 | Federated Investors Inc, Class B |
495,694 | ||||||||||||||
7,216 | Goldman Sachs Group Inc |
1,659,175 | ||||||||||||||
12,967 | Intercontinental Exchange Inc |
1,200,096 | ||||||||||||||
28,567 | Morgan Stanley |
1,460,345 | ||||||||||||||
7,630 | T Rowe Price Group Inc |
929,639 | ||||||||||||||
Total Capital Markets |
8,298,970 |
38
Shares | Description (1) | Value | ||||||||||||||
Chemicals – 1.8% | ||||||||||||||||
11,602 | Corteva Inc |
$ | 342,955 | |||||||||||||
11,602 | Dow Inc |
634,977 | ||||||||||||||
11,602 | DuPont de Nemours Inc |
744,848 | ||||||||||||||
8,385 | Eastman Chemical Co |
664,595 | ||||||||||||||
6,826 | Ecolab Inc |
1,317,350 | ||||||||||||||
7,799 | Olin Corp |
134,533 | ||||||||||||||
2,072 | Sherwin-Williams Co |
1,209,095 | ||||||||||||||
Total Chemicals |
5,048,353 | |||||||||||||||
Communications Equipment – 1.8% | ||||||||||||||||
70,201 | Cisco Systems Inc, (2) |
3,366,840 | ||||||||||||||
1,851 | F5 Networks Inc, (3) |
258,492 | ||||||||||||||
7,799 | Motorola Solutions Inc |
1,256,731 | ||||||||||||||
Total Communications Equipment |
4,882,063 | |||||||||||||||
Consumer Finance – 0.7% | ||||||||||||||||
14,624 | American Express Co |
1,820,542 | ||||||||||||||
Containers & Packaging – 0.6% | ||||||||||||||||
8,677 | Avery Dennison Corp |
1,135,125 | ||||||||||||||
9,457 | International Paper Co |
435,495 | ||||||||||||||
Total Containers & Packaging |
1,570,620 | |||||||||||||||
Diversified Financial Services – 1.4% | ||||||||||||||||
17,161 | Berkshire Hathaway Inc, Class B, (3) |
3,886,967 | ||||||||||||||
Diversified Telecommunication Services – 2.0% | ||||||||||||||||
71,859 | AT&T Inc, (2) |
2,808,250 | ||||||||||||||
41,926 | Verizon Communications Inc, (2) |
2,574,256 | ||||||||||||||
Total Diversified Telecommunication Services |
5,382,506 | |||||||||||||||
Electric Utilities – 0.7% | ||||||||||||||||
14,234 | Duke Energy Corp |
1,298,283 | ||||||||||||||
2,730 | IDACORP Inc |
291,564 | ||||||||||||||
6,044 | PNM Resources Inc |
306,491 | ||||||||||||||
Total Electric Utilities |
1,896,338 | |||||||||||||||
Electrical Equipment – 1.0% | ||||||||||||||||
6,239 | Eaton Corp PLC |
590,958 | ||||||||||||||
9,555 | Emerson Electric Co |
728,665 | ||||||||||||||
8,969 | nVent Electric PLC |
229,427 | ||||||||||||||
6,436 | Rockwell Automation Inc |
1,304,384 | ||||||||||||||
Total Electrical Equipment |
2,853,434 | |||||||||||||||
Electronic Equipment, Instruments & Components – 0.4% | ||||||||||||||||
33,832 | Corning Inc, (2) |
984,850 | ||||||||||||||
Energy Equipment & Services – 0.3% | ||||||||||||||||
17,159 | Schlumberger Ltd |
689,792 | ||||||||||||||
3,899 | Valaris plc, (3) |
25,577 | ||||||||||||||
Total Energy Equipment & Services |
715,369 | |||||||||||||||
Entertainment – 1.9% | ||||||||||||||||
6,434 | Electronic Arts Inc, (3) |
691,719 | ||||||||||||||
5,948 | Netflix Inc, (3) |
1,924,594 | ||||||||||||||
19,012 | Walt Disney Co |
2,749,706 | ||||||||||||||
Total Entertainment |
5,366,019 | |||||||||||||||
Equity Real Estate Investment Trust – 0.9% | ||||||||||||||||
4,289 | Corporate Office Properties Trust |
126,011 | ||||||||||||||
1,851 | CyrusOne Inc |
121,111 | ||||||||||||||
4,289 | Douglas Emmett Inc |
188,287 |
39
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Equity Real Estate Investment Trust (continued) | ||||||||||||||||
2,730 | EPR Properties |
$ | 192,847 | |||||||||||||
4,777 | Healthcare Realty Trust Inc |
159,409 | ||||||||||||||
3,412 | JBG SMITH Properties |
136,105 | ||||||||||||||
1,559 | Life Storage Inc |
168,809 | ||||||||||||||
3,608 | National Retail Properties Inc |
193,461 | ||||||||||||||
3,412 | Prologis Inc |
304,146 | ||||||||||||||
12,967 | Sabra Health Care REIT Inc |
276,716 | ||||||||||||||
9,262 | Tanger Factory Outlet Centers Inc |
136,429 | ||||||||||||||
3,216 | Taubman Centers Inc |
99,985 | ||||||||||||||
5,849 | Urban Edge Properties |
112,184 | ||||||||||||||
18,135 | Washington Prime Group Inc |
66,011 | ||||||||||||||
8,385 | Weingarten Realty Investors |
261,947 | ||||||||||||||
Total Equity Real Estate Investment Trust |
2,543,458 | |||||||||||||||
Food & Staples Retailing – 0.6% | ||||||||||||||||
14,624 | Walmart Inc |
1,737,916 | ||||||||||||||
Food Products – 0.4% | ||||||||||||||||
13,259 | Archer-Daniels-Midland Co |
614,554 | ||||||||||||||
16,770 | Conagra Brands Inc |
574,205 | ||||||||||||||
Total Food Products |
1,188,759 | |||||||||||||||
Health Care Equipment & Supplies – 2.9% | ||||||||||||||||
25,740 | Abbott Laboratories |
2,235,777 | ||||||||||||||
39,001 | Boston Scientific Corp, (2), (3) |
1,763,625 | ||||||||||||||
2,341 | Intuitive Surgical Inc, (3) |
1,383,882 | ||||||||||||||
23,789 | Medtronic PLC |
2,698,862 | ||||||||||||||
Total Health Care Equipment & Supplies |
8,082,146 | |||||||||||||||
Health Care Providers & Services – 3.4% | ||||||||||||||||
1,461 | Acadia Healthcare Co Inc, (3) |
48,534 | ||||||||||||||
4,388 | Anthem Inc |
1,325,308 | ||||||||||||||
15,015 | CVS Health Corp |
1,115,464 | ||||||||||||||
2,732 | Humana Inc |
1,001,333 | ||||||||||||||
6,629 | Laboratory Corp of America Holdings, (3) |
1,121,428 | ||||||||||||||
4,581 | McKesson Corp |
633,644 | ||||||||||||||
3,216 | Tenet Healthcare Corp, (3) |
122,304 | ||||||||||||||
13,164 | UnitedHealth Group Inc |
3,869,953 | ||||||||||||||
Total Health Care Providers & Services |
9,237,968 | |||||||||||||||
Hotels, Restaurants & Leisure – 1.9% | ||||||||||||||||
3,802 | Darden Restaurants Inc |
414,456 | ||||||||||||||
13,652 | McDonald’s Corp |
2,697,772 | ||||||||||||||
25,349 | Starbucks Corp |
2,228,684 | ||||||||||||||
Total Hotels, Restaurants & Leisure |
5,340,912 | |||||||||||||||
Household Durables – 0.3% | ||||||||||||||||
7,019 | KB Home |
240,541 | ||||||||||||||
1,072 | Tempur Sealy International Inc, (3) |
93,328 | ||||||||||||||
3,899 | Whirlpool Corp |
575,220 | ||||||||||||||
Total Household Durables |
909,089 | |||||||||||||||
Household Products – 2.1% | ||||||||||||||||
16,282 | Colgate-Palmolive Co |
1,120,853 | ||||||||||||||
9,262 | Kimberly-Clark Corp |
1,273,988 | ||||||||||||||
26,617 | Procter & Gamble Co |
3,324,463 | ||||||||||||||
Total Household Products |
5,719,304 | |||||||||||||||
Industrial Conglomerates – 1.8% | ||||||||||||||||
9,846 | 3M Co |
1,737,031 | ||||||||||||||
87,947 | General Electric Co, (2) |
981,489 | ||||||||||||||
12,674 | Honeywell International Inc |
2,243,298 | ||||||||||||||
Total Industrial Conglomerates |
4,961,818 |
40
Shares | Description (1) | Value | ||||||||||||||
Insurance – 2.5% | ||||||||||||||||
14,624 | Arthur J Gallagher & Co |
$ | 1,392,644 | |||||||||||||
8,092 | Fidelity National Financial Inc |
366,972 | ||||||||||||||
16,477 | Marsh & McLennan Cos Inc |
1,835,703 | ||||||||||||||
14,234 | MetLife Inc |
725,507 | ||||||||||||||
9,652 | Prudential Financial Inc |
904,778 | ||||||||||||||
1,618 | Reinsurance Group of America Inc |
263,831 | ||||||||||||||
9,750 | Travelers Cos Inc |
1,335,262 | ||||||||||||||
Total Insurance |
6,824,697 | |||||||||||||||
Interactive Media & Services – 5.3% | ||||||||||||||||
2,732 | Alphabet Inc, Class A, (3) |
3,659,214 | ||||||||||||||
3,511 | Alphabet Inc, Class C, (3) |
4,694,277 | ||||||||||||||
28,569 | Facebook Inc, Class A, (3) |
5,863,787 | ||||||||||||||
9,457 | Twitter Inc, (3) |
303,097 | ||||||||||||||
Total Interactive Media & Services |
14,520,375 | |||||||||||||||
Internet & Direct Marketing Retail – 3.9% | ||||||||||||||||
4,583 | Amazon.com Inc, (3) |
8,468,651 | ||||||||||||||
752 | Booking Holdings Inc, (3) |
1,544,405 | ||||||||||||||
21,840 | eBay Inc |
788,642 | ||||||||||||||
Total Internet & Direct Marketing Retail |
10,801,698 | |||||||||||||||
IT Services – 5.9% | ||||||||||||||||
5,849 | Akamai Technologies Inc, (3) |
505,237 | ||||||||||||||
2,437 | Black Knight Inc, (3) |
157,138 | ||||||||||||||
12,187 | Fidelity National Information Services Inc |
1,695,090 | ||||||||||||||
8,190 | International Business Machines Corp, (2) |
1,097,788 | ||||||||||||||
1,851 | Jack Henry & Associates Inc |
269,635 | ||||||||||||||
15,601 | Mastercard Inc, Class A |
4,658,302 | ||||||||||||||
15,794 | PayPal Holdings Inc, (3) |
1,708,437 | ||||||||||||||
4,681 | VeriSign Inc, (3) |
901,935 | ||||||||||||||
27,301 | Visa Inc, Class A, (2) |
5,129,858 | ||||||||||||||
Total IT Services |
16,123,420 | |||||||||||||||
Life Sciences Tools & Services – 1.1% | ||||||||||||||||
1,853 | Bio-Techne Corp |
406,752 | ||||||||||||||
7,801 | Thermo Fisher Scientific Inc |
2,534,311 | ||||||||||||||
Total Life Sciences Tools & Services |
2,941,063 | |||||||||||||||
Machinery – 2.4% | ||||||||||||||||
11,797 | Caterpillar Inc |
1,742,181 | ||||||||||||||
3,803 | Cummins Inc |
680,585 | ||||||||||||||
6,727 | Deere & Co |
1,165,520 | ||||||||||||||
9,360 | Illinois Tool Works Inc, (2) |
1,681,337 | ||||||||||||||
9,067 | Pentair PLC |
415,903 | ||||||||||||||
3,119 | Snap-on Inc |
528,358 | ||||||||||||||
2,826 | Stanley Black & Decker Inc |
468,381 | ||||||||||||||
467 | Westinghouse Air Brake Technologies Corp |
36,333 | ||||||||||||||
Total Machinery |
6,718,598 | |||||||||||||||
Media – 1.4% | ||||||||||||||||
72,152 | Comcast Corp, Class A, (2) |
3,244,676 | ||||||||||||||
7,702 | TEGNA Inc |
128,546 | ||||||||||||||
11,894 | ViacomCBS Inc, Class B |
499,191 | ||||||||||||||
Total Media |
3,872,413 | |||||||||||||||
Metals & Mining – 0.2% | ||||||||||||||||
35,197 | Freeport-McMoRan Inc |
461,784 | ||||||||||||||
3,183 | Southern Copper Corp |
135,214 | ||||||||||||||
Total Metals & Mining |
596,998 | |||||||||||||||
Multiline Retail – 0.6% | ||||||||||||||||
13,552 | Target Corp |
1,737,502 |
41
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||
12,967 | Consolidated Edison Inc |
$ | 1,173,125 | |||||||||||||
Oil, Gas & Consumable Fuels – 4.6% | ||||||||||||||||
23,205 | Chevron Corp, (2) |
2,796,435 | ||||||||||||||
20,670 | ConocoPhillips |
1,344,170 | ||||||||||||||
10,432 | EOG Resources Inc |
873,784 | ||||||||||||||
42,803 | Exxon Mobil Corp, (2) |
2,986,793 | ||||||||||||||
7,604 | Hess Corp |
508,023 | ||||||||||||||
29,542 | Marathon Oil Corp |
401,181 | ||||||||||||||
10,920 | Marathon Petroleum Corp |
657,930 | ||||||||||||||
18,135 | Occidental Petroleum Corp |
747,343 | ||||||||||||||
6,727 | ONEOK Inc |
509,032 | ||||||||||||||
8,872 | Phillips 66 |
988,430 | ||||||||||||||
9,067 | Valero Energy Corp |
849,125 | ||||||||||||||
6,434 | WPX Energy Inc, (3) |
88,403 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
12,750,649 | |||||||||||||||
Pharmaceuticals – 5.0% | ||||||||||||||||
3,121 | Allergan PLC, (2) |
596,642 | ||||||||||||||
21,645 | Bristol-Myers Squibb Co |
1,389,393 | ||||||||||||||
14,137 | Eli Lilly & Co |
1,858,026 | ||||||||||||||
1,851 | Jazz Pharmaceuticals PLC, (3) |
276,317 | ||||||||||||||
28,567 | Johnson & Johnson |
4,167,068 | ||||||||||||||
28,665 | Merck & Co Inc |
2,607,082 | ||||||||||||||
75,174 | Pfizer Inc, (2) |
2,945,317 | ||||||||||||||
Total Pharmaceuticals |
13,839,845 | |||||||||||||||
Real Estate Management & Development – 0.1% | ||||||||||||||||
1,754 | Jones Lang LaSalle Inc |
305,354 | ||||||||||||||
Road & Rail – 0.9% | ||||||||||||||||
1,754 | Avis Budget Group Inc, (3) |
56,549 | ||||||||||||||
13,651 | Union Pacific Corp, (2) |
2,467,964 | ||||||||||||||
Total Road & Rail |
2,524,513 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 4.6% | ||||||||||||||||
12,090 | Analog Devices Inc |
1,436,775 | ||||||||||||||
59,086 | Intel Corp, (2) |
3,536,297 | ||||||||||||||
11,603 | Microchip Technology Inc |
1,215,066 | ||||||||||||||
8,776 | NVIDIA Corp |
2,064,993 | ||||||||||||||
21,742 | QUALCOMM Inc |
1,918,297 | ||||||||||||||
18,524 | Texas Instruments Inc |
2,376,444 | ||||||||||||||
Total Semiconductors & Semiconductor Equipment |
12,547,872 | |||||||||||||||
Software – 6.1% | ||||||||||||||||
6,630 | Autodesk Inc, (3) |
1,216,340 | ||||||||||||||
5,362 | CDK Global Inc |
293,194 | ||||||||||||||
85,704 | Microsoft Corp, (2) |
13,515,521 | ||||||||||||||
33,637 | Oracle Corp, (2) |
1,782,088 | ||||||||||||||
Total Software |
16,807,143 | |||||||||||||||
Specialty Retail – 3.2% | ||||||||||||||||
6,492 | Best Buy Co Inc |
569,998 | ||||||||||||||
5,557 | Dick’s Sporting Goods Inc |
275,016 | ||||||||||||||
17,552 | Home Depot Inc, (2) |
3,833,006 | ||||||||||||||
18,524 | Lowe’s Cos Inc |
2,218,434 | ||||||||||||||
4,679 | Tiffany & Co |
625,348 | ||||||||||||||
20,865 | TJX Cos Inc |
1,274,017 | ||||||||||||||
2,730 | Urban Outfitters Inc, (3) |
75,812 | ||||||||||||||
Total Specialty Retail |
8,871,631 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 5.1% | ||||||||||||||||
47,777 | Apple Inc |
14,029,716 |
42
Shares | Description (1) | Value | ||||||||||||||
Textiles, Apparel & Luxury Goods – 0.9% | ||||||||||||||||
1,365 | Kontoor Brands Inc |
$ | 57,316 | |||||||||||||
10,920 | NIKE Inc, Class B |
1,106,305 | ||||||||||||||
15,015 | Under Armour Inc, Class C, (3) |
287,988 | ||||||||||||||
10,042 | VF Corp, (2) |
1,000,786 | ||||||||||||||
Total Textiles, Apparel & Luxury Goods |
2,452,395 | |||||||||||||||
Tobacco – 0.7% | ||||||||||||||||
18,524 | Altria Group Inc |
924,533 | ||||||||||||||
12,967 | Philip Morris International Inc |
1,103,362 | ||||||||||||||
Total Tobacco |
2,027,895 | |||||||||||||||
Trading Companies & Distributors – 0.4% | ||||||||||||||||
3,414 | WW Grainger Inc |
1,155,707 | ||||||||||||||
Total Common Stocks (cost $116,805,186) |
275,598,262 | |||||||||||||||
Shares | Description (1) | Value | ||||||||||||||
COMMON STOCK RIGHTS – 0.0% |
||||||||||||||||
Pharmaceuticals – 0.0% | ||||||||||||||||
13,500 | Bristol-Myers Squibb Co |
$ | 40,635 | |||||||||||||
Total Common Stock Rights (cost $28,755) |
40,635 | |||||||||||||||
Total Long-Term Investments (cost $116,833,941) |
275,638,897 | |||||||||||||||
Principal Amount (000) |
Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.5% |
||||||||||||||||
REPURCHASE AGREEMENTS – 0.5% | ||||||||||||||||
$ | 1,249 | Repurchase Agreement with Fixed Income Clearing
Corporation, |
0.650% | 1/02/20 | $ | 1,249,441 | ||||||||||
Total Short-Term Investments (cost $1,249,441) |
1,249,441 | |||||||||||||||
Total Investments (cost $118,083,382) – 100.6% |
276,888,338 | |||||||||||||||
Other Assets Less Liabilities – (0.6)% (4) |
(1,608,366 | ) | ||||||||||||||
Net Assets Applicable to Common Shares – 100% |
$ | 275,279,972 |
Investments in Derivatives
Options Written
Description (5) | Type | Number of Contracts |
Notional Amount (6) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||||
Russell 2000® Index |
Call | (40 | ) | $ | (6,640,000 | ) | $ | 1,660 | 1/17/20 | $ | (104,600 | ) | ||||||||||||
S&P 500® Index |
Call | (465 | ) | (149,962,500 | ) | 3,225 | 1/17/20 | (1,622,850 | ) | |||||||||||||||
Total Options Written (premiums received $1,603,360) |
(505 | ) | $ | (156,602,500 | ) | $ | (1,727,450 | ) |
43
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments December 31, 2019 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | Investment, or portion of investment, has been pledged to collateralized the net payment obligations for investments in derivatives. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. Other assets less liabilities also includes the value of options as presented on the Statement of Assets and Liabilities. |
(5) | Exchange-traded, unless otherwise noted. |
(6) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100. |
REIT | Real Estate Investment Trust. |
See accompanying notes to financial statements.
44
QQQX | Nuveen Nasdaq 100 Dynamic
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 100.7% |
||||||||||||||||
COMMON STOCKS – 100.7% |
||||||||||||||||
Air Freight & Logistics – 0.0% | ||||||||||||||||
3,000 | FedEx Corp |
$ | 453,630 | |||||||||||||
Airlines – 0.4% | ||||||||||||||||
33,821 | Delta Air Lines Inc |
1,977,852 | ||||||||||||||
7,356 | Ryanair Holdings PLC, ADR |
644,459 | ||||||||||||||
28,693 | Southwest Airlines Co |
1,548,848 | ||||||||||||||
Total Airlines |
4,171,159 | |||||||||||||||
Auto Components – 0.2% | ||||||||||||||||
29,023 | American Axle & Manufacturing Holdings Inc |
312,288 | ||||||||||||||
23,986 | Gentex Corp |
695,114 | ||||||||||||||
4,600 | Lear Corp |
631,120 | ||||||||||||||
Total Auto Components |
1,638,522 | |||||||||||||||
Automobiles – 0.0% | ||||||||||||||||
53,641 | Ford Motor Co |
498,861 | ||||||||||||||
Banks – 0.1% | ||||||||||||||||
5,455 | JPMorgan Chase & Co |
760,427 | ||||||||||||||
Beverages – 0.8% | ||||||||||||||||
24,872 | Brown-Forman Corp, Class B |
1,681,347 | ||||||||||||||
99,200 | Monster Beverage Corp, (2) |
6,304,160 | ||||||||||||||
Total Beverages |
7,985,507 | |||||||||||||||
Biotechnology – 6.7% | ||||||||||||||||
9,056 | Agios Pharmaceuticals Inc, (2) |
432,424 | ||||||||||||||
15,331 | Alkermes PLC, (2) |
312,752 | ||||||||||||||
120,000 | Amgen Inc, (3) |
28,928,400 | ||||||||||||||
30,946 | Biogen Inc, (2) |
9,182,607 | ||||||||||||||
219,937 | Gilead Sciences Inc, (3) |
14,291,506 | ||||||||||||||
67,590 | ImmunoGen Inc, (2) |
345,047 | ||||||||||||||
11,495 | Ionis Pharmaceuticals Inc, (2) |
694,413 | ||||||||||||||
14,000 | Myriad Genetics Inc, (2) |
381,220 | ||||||||||||||
19,200 | Regeneron Pharmaceuticals Inc, (2) |
7,209,216 | ||||||||||||||
13,285 | Seattle Genetics Inc, (2) |
1,517,944 | ||||||||||||||
3,945 | United Therapeutics Corp, (2) |
347,476 | ||||||||||||||
Total Biotechnology |
63,643,005 | |||||||||||||||
Capital Markets – 0.6% | ||||||||||||||||
10,802 | Moody’s Corp |
2,564,503 | ||||||||||||||
26,700 | Morgan Stanley |
1,364,904 | ||||||||||||||
12,686 | SEI Investments Co |
830,679 | ||||||||||||||
7,968 | T Rowe Price Group Inc |
970,821 | ||||||||||||||
Total Capital Markets |
5,730,907 | |||||||||||||||
Chemicals – 0.3% | ||||||||||||||||
6,428 | Ecolab Inc |
1,240,540 | ||||||||||||||
3,290 | Sherwin-Williams Co |
1,919,846 | ||||||||||||||
Total Chemicals |
3,160,386 | |||||||||||||||
Commercial Services & Supplies – 0.5% | ||||||||||||||||
11,265 | Copart Inc, (2) |
1,024,439 | ||||||||||||||
8,298 | IAA Inc, (2) |
390,504 | ||||||||||||||
8,298 | KAR Auction Services Inc |
180,813 |
45
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Commercial Services & Supplies (continued) | ||||||||||||||||
16,365 | Tetra Tech Inc |
$ | 1,410,008 | |||||||||||||
7,836 | Waste Connections Inc |
711,431 | ||||||||||||||
10,274 | Waste Management Inc |
1,170,825 | ||||||||||||||
Total Commercial Services & Supplies |
4,888,020 | |||||||||||||||
Communications Equipment – 3.8% | ||||||||||||||||
735,000 | Cisco Systems Inc, (3) |
35,250,600 | ||||||||||||||
5,452 | F5 Networks Inc, (2) |
761,372 | ||||||||||||||
Total Communications Equipment |
36,011,972 | |||||||||||||||
Containers & Packaging – 0.1% | ||||||||||||||||
4,364 | Ball Corp |
282,220 | ||||||||||||||
10,909 | International Paper Co |
502,359 | ||||||||||||||
Total Containers & Packaging |
784,579 | |||||||||||||||
Distributors – 0.2% | ||||||||||||||||
3,763 | Genuine Parts Co |
399,743 | ||||||||||||||
8,507 | Pool Corp |
1,806,717 | ||||||||||||||
Total Distributors |
2,206,460 | |||||||||||||||
Diversified Consumer Services – 0.2% | ||||||||||||||||
47,131 | Service Corp International/US |
2,169,440 | ||||||||||||||
Electrical Equipment – 0.2% | ||||||||||||||||
10,254 | Rockwell Automation Inc |
2,078,178 | ||||||||||||||
Electronic Equipment, Instruments & Components – 0.5% | ||||||||||||||||
13,253 | Amphenol Corp, Class A |
1,434,372 | ||||||||||||||
4,010 | Arrow Electronics Inc, (2) |
339,807 | ||||||||||||||
6,503 | Avnet Inc |
275,987 | ||||||||||||||
33,069 | Corning Inc |
962,639 | ||||||||||||||
8,393 | Keysight Technologies Inc, (2) |
861,374 | ||||||||||||||
15,009 | National Instruments Corp |
635,481 | ||||||||||||||
Total Electronic Equipment, Instruments & Components |
4,509,660 | |||||||||||||||
Energy Equipment & Services – 0.0% | ||||||||||||||||
35,500 | Nabors Industries Ltd |
102,240 | ||||||||||||||
40,695 | Transocean Ltd, (2) |
279,982 | ||||||||||||||
Total Energy Equipment & Services |
382,222 | |||||||||||||||
Entertainment – 0.0% | ||||||||||||||||
10,583 | Cinemark Holdings Inc |
358,235 | ||||||||||||||
Equity Real Estate Investment Trust – 0.4% | ||||||||||||||||
20,097 | Apartment Investment & Management Co, Class A |
1,038,010 | ||||||||||||||
59,567 | CubeSmart |
1,875,169 | ||||||||||||||
3,380 | Retail Value Inc |
124,384 | ||||||||||||||
32,514 | SITE Centers Corp |
455,847 | ||||||||||||||
Total Equity Real Estate Investment Trust |
3,493,410 | |||||||||||||||
Food & Staples Retailing – 0.3% | ||||||||||||||||
4,146 | Casey’s General Stores Inc |
659,172 | ||||||||||||||
27,602 | Kroger Co |
800,182 | ||||||||||||||
9,491 | Sysco Corp |
811,860 | ||||||||||||||
22,148 | US Foods Holding Corp, (2) |
927,780 | ||||||||||||||
Total Food & Staples Retailing |
3,198,994 | |||||||||||||||
Food Products – 0.2% | ||||||||||||||||
16,583 | Conagra Brands Inc |
567,802 | ||||||||||||||
5,782 | Hain Celestial Group Inc, (2) |
150,072 | ||||||||||||||
12,000 | Pilgrim’s Pride Corp, (2) |
392,580 | ||||||||||||||
4,147 | Post Holdings Inc, (2) |
452,437 | ||||||||||||||
Total Food Products |
1,562,891 |
46
Shares | Description (1) | Value | ||||||||||||||
Health Care Equipment & Supplies – 1.5% | ||||||||||||||||
74,842 | Abbott Laboratories, (3) |
$ | 6,500,776 | |||||||||||||
3,982 | Becton Dickinson and Co, (3) |
1,082,984 | ||||||||||||||
17,456 | Danaher Corp |
2,679,147 | ||||||||||||||
9,202 | Hill-Rom Holdings Inc |
1,044,703 | ||||||||||||||
4,050 | Stryker Corp, (3) |
850,257 | ||||||||||||||
12,110 | Zimmer Biomet Holdings Inc, (3) |
1,812,625 | ||||||||||||||
Total Health Care Equipment & Supplies |
13,970,492 | |||||||||||||||
Health Care Providers & Services – 0.2% | ||||||||||||||||
4,464 | McKesson Corp, (3) |
617,460 | ||||||||||||||
8,669 | Universal Health Services Inc, Class B |
1,243,655 | ||||||||||||||
Total Health Care Providers & Services |
1,861,115 | |||||||||||||||
Hotels, Restaurants & Leisure – 0.5% | ||||||||||||||||
22,598 | Carnival Corp |
1,148,656 | ||||||||||||||
10,909 | Darden Restaurants Inc |
1,189,190 | ||||||||||||||
31,857 | Restaurant Brands International Inc |
2,031,521 | ||||||||||||||
Total Hotels, Restaurants & Leisure |
4,369,367 | |||||||||||||||
Household Durables – 0.2% | ||||||||||||||||
45,314 | KB Home |
1,552,911 | ||||||||||||||
Industrial Conglomerates – 0.1% | ||||||||||||||||
6,260 | Honeywell International Inc |
1,108,020 | ||||||||||||||
Insurance – 0.3% | ||||||||||||||||
25,800 | Fidelity National Financial Inc |
1,170,030 | ||||||||||||||
13,092 | Globe Life Inc |
1,377,933 | ||||||||||||||
Total Insurance |
2,547,963 | |||||||||||||||
Interactive Media & Services – 14.9% | ||||||||||||||||
32,600 | Alphabet Inc., Class A (2) |
43,664,114 | ||||||||||||||
33,600 | Alphabet Inc., Class C (2), (3) |
44,923,872 | ||||||||||||||
46,910 | Baidu Inc, ARR, (2), (3) |
5,929,424 | ||||||||||||||
200,000 | Facebook Inc, Class A, (2) |
41,050,000 | ||||||||||||||
19,201 | IAC/InterActiveCorp |
4,783,161 | ||||||||||||||
32,728 | Twitter Inc, (2) |
1,048,933 | ||||||||||||||
Total Interactive Media & Services |
141,399,504 | |||||||||||||||
Internet & Direct Marketing Retail – 13.2% | ||||||||||||||||
53,000 | Amazon.com Inc, (2) |
97,935,520 | ||||||||||||||
9,274 | Booking Holdings Inc, (2) |
19,046,292 | ||||||||||||||
229,104 | eBay Inc, (3) |
8,272,946 | ||||||||||||||
Total Internet & Direct Marketing Retail |
125,254,758 | |||||||||||||||
IT Services – 4.4% | ||||||||||||||||
7,911 | Black Knight Inc, (2) |
510,101 | ||||||||||||||
13,463 | DXC Technology Co |
506,074 | ||||||||||||||
25,900 | Fidelity National Information Services Inc |
3,602,431 | ||||||||||||||
20,900 | Genpact Ltd |
881,353 | ||||||||||||||
25,384 | Global Payments Inc |
4,634,103 | ||||||||||||||
64,256 | Infosys Ltd, ADR |
663,122 | ||||||||||||||
49,092 | Jack Henry & Associates Inc |
7,151,232 | ||||||||||||||
5,400 | Leidos Holdings Inc |
528,606 | ||||||||||||||
213,259 | PayPal Holdings Inc, (2) |
23,068,226 | ||||||||||||||
6,733 | Perspecta Inc |
178,021 | ||||||||||||||
Total IT Services |
41,723,269 | |||||||||||||||
Life Sciences Tools & Services – 0.6% | ||||||||||||||||
63,277 | Agilent Technologies Inc |
5,398,161 | ||||||||||||||
5,200 | Charles River Laboratories International Inc, (2) |
794,352 | ||||||||||||||
Total Life Sciences Tools & Services |
6,192,513 |
47
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Shares | Description (1) | Value | ||||||||||||||
Machinery – 0.2% | ||||||||||||||||
10,391 | Caterpillar Inc |
$ | 1,534,543 | |||||||||||||
8,700 | Fortive Corp |
664,593 | ||||||||||||||
Total Machinery |
2,199,136 | |||||||||||||||
Media – 3.9% | ||||||||||||||||
5,347 | AMC Networks Inc, Class A, (2) |
211,206 | ||||||||||||||
740,000 | Comcast Corp, Class A, (3) |
33,277,800 | ||||||||||||||
86,878 | News Corp, Class A |
1,228,455 | ||||||||||||||
72,100 | News Corp, Class B |
1,046,171 | ||||||||||||||
20,947 | ViacomCBS Inc, Class B |
879,146 | ||||||||||||||
7,458 | WPP PLC, ADR |
524,223 | ||||||||||||||
Total Media |
37,167,001 | |||||||||||||||
Multiline Retail – 0.2% | ||||||||||||||||
69,505 | JC Penney Co Inc |
77,846 | ||||||||||||||
7,528 | Kohl’s Corp |
383,551 | ||||||||||||||
11,020 | Target Corp |
1,412,874 | ||||||||||||||
Total Multiline Retail |
1,874,271 | |||||||||||||||
Oil, Gas & Consumable Fuels – 0.2% | ||||||||||||||||
9,491 | Continental Resources Inc/OK |
325,541 | ||||||||||||||
10,146 | Devon Energy Corp |
263,492 | ||||||||||||||
26,000 | Marathon Oil Corp |
353,080 | ||||||||||||||
12,330 | Noble Energy Inc |
306,277 | ||||||||||||||
28,041 | QEP Resources Inc |
126,184 | ||||||||||||||
16,802 | Range Resources Corp |
81,490 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
1,456,064 | |||||||||||||||
Pharmaceuticals – 1.0% | ||||||||||||||||
137,136 | Bristol-Myers Squibb Co |
8,802,760 | ||||||||||||||
6,499 | Jazz Pharmaceuticals PLC, (2) |
970,171 | ||||||||||||||
Total Pharmaceuticals |
9,772,931 | |||||||||||||||
Professional Services – 0.4% | ||||||||||||||||
11,246 | IHS Markit Ltd |
847,386 | ||||||||||||||
12,505 | ManpowerGroup Inc |
1,214,236 | ||||||||||||||
21,381 | Robert Half International Inc |
1,350,210 | ||||||||||||||
Total Professional Services |
3,411,832 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 12.9% | ||||||||||||||||
100,370 | Analog Devices Inc |
11,927,971 | ||||||||||||||
330,000 | Applied Materials Inc, (3) |
20,143,200 | ||||||||||||||
670,000 | Intel Corp, (3) |
40,099,500 | ||||||||||||||
90,004 | NVIDIA Corp |
21,177,941 | ||||||||||||||
30,423 | ON Semiconductor Corp, (2) |
741,713 | ||||||||||||||
6,473 | Power Integrations Inc |
640,244 | ||||||||||||||
257,470 | QUALCOMM Inc, (3) |
22,716,578 | ||||||||||||||
11,070 | Silicon Laboratories Inc, (2) |
1,283,899 | ||||||||||||||
22,000 | Skyworks Solutions Inc |
2,659,360 | ||||||||||||||
21,819 | Taiwan Semiconductor Manufacturing Co Ltd, ADR |
1,267,684 | ||||||||||||||
Total Semiconductors & Semiconductor Equipment |
122,658,090 | |||||||||||||||
Software – 15.1% | ||||||||||||||||
19,637 | ANSYS Inc, (2) |
5,054,760 | ||||||||||||||
58,910 | Autodesk Inc, (2) |
10,807,629 | ||||||||||||||
13,000 | CDK Global Inc |
710,840 | ||||||||||||||
5,245 | j2 Global Inc, (3) |
491,509 | ||||||||||||||
775,000 | Microsoft Corp, (3) |
122,217,500 | ||||||||||||||
1,728 | MicroStrategy Inc, Class A, (2), (3) |
246,465 | ||||||||||||||
24,247 | Open Text Corp |
1,068,565 | ||||||||||||||
43,639 | Oracle Corp |
2,311,994 | ||||||||||||||
13,531 | PTC Inc, (2) |
1,013,337 | ||||||||||||||
Total Software |
143,922,599 |
48
Shares | Description (1) | Value | ||||||||||||||
Specialty Retail – 0.8% | ||||||||||||||||
16,258 | Aaron’s Inc |
$ | 928,494 | |||||||||||||
4,877 | Advance Auto Parts Inc |
781,100 | ||||||||||||||
873 | AutoZone Inc, (2) |
1,040,014 | ||||||||||||||
18,001 | Bed Bath & Beyond Inc |
311,417 | ||||||||||||||
21,819 | CarMax Inc, (2) |
1,912,872 | ||||||||||||||
19,136 | Dick’s Sporting Goods Inc |
947,041 | ||||||||||||||
10,146 | Foot Locker Inc |
395,593 | ||||||||||||||
15,800 | Michaels Cos Inc, (2) |
127,822 | ||||||||||||||
15,274 | Sally Beauty Holdings Inc, (2) |
278,750 | ||||||||||||||
19,420 | Urban Outfitters Inc, (2) |
539,293 | ||||||||||||||
Total Specialty Retail |
7,262,396 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 14.3% | ||||||||||||||||
455,000 | Apple Inc, (3) |
133,610,750 | ||||||||||||||
20,777 | Hewlett Packard Enterprise Co |
329,523 | ||||||||||||||
29,000 | NetApp Inc |
1,805,250 | ||||||||||||||
Total Technology Hardware, Storage & Peripherals |
135,745,523 | |||||||||||||||
Textiles, Apparel & Luxury Goods – 0.2% | ||||||||||||||||
8,067 | PVH Corp |
848,245 | ||||||||||||||
4,144 | Ralph Lauren Corp |
485,760 | ||||||||||||||
19,420 | Skechers USA Inc, Class A, (2) |
838,750 | ||||||||||||||
Total Textiles, Apparel & Luxury Goods |
2,172,755 | |||||||||||||||
Wireless Telecommunication Services – 0.1% | ||||||||||||||||
31,206 | Sprint Corp, (2) |
162,583 | ||||||||||||||
20,995 | Telephone & Data Systems Inc |
533,903 | ||||||||||||||
14,195 | United States Cellular Corp, (2) |
514,285 | ||||||||||||||
Total Wireless Telecommunication Services |
1,210,771 | |||||||||||||||
Total Common Stocks (cost $293,417,486) |
958,519,746 | |||||||||||||||
Shares | Description (1) | Value | ||||||||||||||
COMMON STOCK RIGHTS – 0.0% |
||||||||||||||||
Pharmaceuticals – 0.0% | ||||||||||||||||
137,136 | Bristol-Myers Squibb Co |
$ | 412,779 | |||||||||||||
Total Common Stock Rights (cost $292,100) |
412,779 | |||||||||||||||
Total Long-Term Investments (cost $293,709,586) |
958,932,525 | |||||||||||||||
Principal Amount (000) |
Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.3% |
||||||||||||||||
REPURCHASE AGREEMENTS – 0.3% | ||||||||||||||||
$ | 2,698 | Repurchase Agreement with Fixed Income Clearing
Corporation, |
0.650% | 1/02/20 | $ | 2,697,751 | ||||||||||
Total Short-Term Investments (cost $2,697,751) |
2,697,751 | |||||||||||||||
Total Investments (cost $296,407,337) – 101.0% |
961,630,276 | |||||||||||||||
Other Assets Less Liabilities – (1.0)% (4) |
(9,685,121 | ) | ||||||||||||||
Net Assets Applicable to Common Shares – 100% |
$ | 951,945,155 |
49
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments December 31, 2019 |
Investments in Derivatives
Options Written
Description (5) | Type | Number of Contracts |
Notional Amount (6) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||||
NASDAQ 100® Stock Index |
Call | (200 | ) | $ | (173,400,000 | ) | $ | 8,670 | 1/17/20 | $ | (3,076,000 | ) | ||||||||||||
NASDAQ 100® Stock Index |
Call | (200 | ) | (173,500,000 | ) | 8,675 | 1/17/20 | (3,002,000 | ) | |||||||||||||||
NASDAQ 100® Stock Index |
Call | (200 | ) | (173,600,000 | ) | 8,680 | 1/17/20 | (2,930,000 | ) | |||||||||||||||
Russell 2000® Index |
Call | (135 | ) | (22,410,000 | ) | 1,660 | 1/17/20 | (353,025 | ) | |||||||||||||||
Total Options Written (premiums received $7,624,481) |
(735 | ) | $ | (542,910,000 | ) | $ | (9,361,025 | ) |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(3) | Investment, or portion of investment, has been pledged to collateralized the net payment obligations for investments in derivatives. |
(4) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the counter (“OTC”) derivatives as presented on the Statement of Assets and Liabilities, when applicable. The unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. Other assets less liabilities also includes the value of options as presented on the Statement of Assets and Liabilities. |
(5) | Exchange-traded, unless otherwise noted. |
(6) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100. |
ADR | American Depositary Receipt |
See accompanying notes to financial statements.
50
Statement of Assets and Liabilities
December 31, 2019
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Assets |
||||||||||||||||
Long-term investments, at value (cost $600,477,786, $267,858,204, $116,833,941 and $293,709,586, respectively) |
$ | 1,435,347,621 | $ | 662,739,525 | $ | 275,638,897 | $ | 958,932,525 | ||||||||
Short-term investments, at value (cost approximates value) |
26,089,426 | 2,981,745 | 1,249,441 | 2,697,751 | ||||||||||||
Cash |
1,430 | 8,645 | — | 24,882 | ||||||||||||
Receivable for: |
||||||||||||||||
Dividends |
1,346,086 | 366,930 | 253,068 | 119,761 | ||||||||||||
Interest |
471 | 54 | 23 | 49 | ||||||||||||
Investment sold |
— | — | 389,513 | 246,019 | ||||||||||||
Options sold |
3,714,928 | — | — | — | ||||||||||||
Reclaims |
— | — | — | 329 | ||||||||||||
Shares sold |
1,015,808 | — | 141,513 | — | ||||||||||||
Deferred offering costs |
— | — | — | 254,182 | ||||||||||||
Other assets |
261,317 | 38,242 | 40,838 | 90,972 | ||||||||||||
Total assets |
1,467,777,087 | 666,135,141 | 277,713,293 | 962,366,470 | ||||||||||||
Liabilities |
||||||||||||||||
Cash overdraft |
— | — | 385,911 | — | ||||||||||||
Options written, at value (premiums received $24,379,850, $3,882,852, $1,603,360 and $7,624,481, respectively) |
38,271,150 | 4,187,750 | 1,727,450 | 9,361,025 | ||||||||||||
Payable for options purchased |
5,225,219 | — | — | — | ||||||||||||
Accrued expenses: |
||||||||||||||||
Management fees |
1,005,026 | 477,940 | 189,870 | 668,212 | ||||||||||||
Trustees fees |
274,966 | 44,697 | 43,453 | 99,859 | ||||||||||||
Shelf offering costs |
— | — | — | 5,569 | ||||||||||||
Other |
328,832 | 169,842 | 86,637 | 286,650 | ||||||||||||
Total liabilities |
45,105,193 | 4,880,229 | 2,433,321 | 10,421,315 | ||||||||||||
Net assets applicable to common shares |
$ | 1,422,671,894 | $ | 661,254,912 | $ | 275,279,972 | $ | 951,945,155 | ||||||||
Common shares outstanding |
104,020,906 | 36,341,012 | 16,923,149 | 39,468,715 | ||||||||||||
Net asset value (“NAV”) per share common outstanding |
$ | 13.68 | $ | 18.20 | $ | 16.27 | $ | 24.12 | ||||||||
Net assets applicable to common shares consist of: |
||||||||||||||||
Common shares, $0.01 par value per share |
$ | 1,040,209 | $ | 363,410 | $ | 169,231 | $ | 394,687 | ||||||||
Paid-in-surplus |
641,834,800 | 276,629,384 | 128,209,839 | 304,525,091 | ||||||||||||
Total distributable earnings |
779,796,885 | 384,262,118 | 146,900,902 | 647,025,377 | ||||||||||||
Net assets applicable to common shares |
$ | 1,422,671,894 | $ | 661,254,912 | $ | 275,279,972 | $ | 951,945,155 | ||||||||
Authorized common shares |
Unlimited | Unlimited | Unlimited | Unlimited |
See accompanying notes to financial statements.
51
Year Ended December 31, 2019
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Investment Income |
||||||||||||||||
Dividends |
$ | 28,532,579 | $ | 15,860,667 | $ | 5,460,878 | $ | 10,200,894 | ||||||||
Foreign tax withheld on dividend income |
(12,820 | ) | — | — | (22,569 | ) | ||||||||||
Interest |
356,814 | 14,028 | 8,066 | 31,811 | ||||||||||||
Total investment income |
28,876,573 | 15,874,695 | 5,468,944 | 10,210,136 | ||||||||||||
Expenses |
||||||||||||||||
Management fees |
11,532,406 | 5,524,828 | 2,134,448 | 7,362,076 | ||||||||||||
Custodian fees |
138,522 | 64,585 | 41,485 | 87,290 | ||||||||||||
Trustees fees |
38,216 | 17,994 | 7,161 | 23,979 | ||||||||||||
Professional fees |
90,682 | 82,685 | 100,741 | 63,281 | ||||||||||||
Shareholder reporting expenses |
204,928 | 92,047 | 61,837 | 128,204 | ||||||||||||
Shareholder servicing agent fees |
1,154 | 505 | 176 | 551 | ||||||||||||
Shelf offering expenses |
188,931 | 188,745 | 137,283 | — | ||||||||||||
Stock exchange listing fees |
29,180 | 10,258 | 6,862 | — | ||||||||||||
Investor relations expenses |
147,687 | 69,325 | 32,637 | 109,920 | ||||||||||||
Other |
238,242 | 138,126 | 55,966 | 245,513 | ||||||||||||
Total expenses |
12,609,948 | 6,189,098 | 2,578,596 | 8,020,814 | ||||||||||||
Net investment income (loss) |
16,266,625 | 9,685,597 | 2,890,348 | 2,189,322 | ||||||||||||
Realized and Unrealized Gain (Loss) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments and foreign currency |
91,040,904 | 41,997,130 | 8,946,838 | 76,537,118 | ||||||||||||
Options purchased |
— | 107,085 | 38,407 | 145,883 | ||||||||||||
Options written |
(128,468,045 | ) | (53,907,750 | ) | (21,461,425 | ) | (87,367,839 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||
Investments and foreign currency |
246,272,851 | 89,858,633 | 57,362,755 | 215,791,192 | ||||||||||||
Options written |
(17,672,868 | ) | 1,993,945 | 782,286 | 2,970,469 | |||||||||||
Net realized and unrealized gain (loss) |
191,172,842 | 80,049,043 | 45,668,861 | 208,076,823 | ||||||||||||
Net increase (decrease) in net assets from operations |
$ | 207,439,467 | $ | 89,734,640 | $ | 48,559,209 | $ | 210,266,145 |
See accompanying notes to financial statements.
52
Statement of Changes in Net Assets
BXMX | DIAX | |||||||||||||||
Year Ended 12/31/19 |
Year Ended 12/31/18 |
Year Ended 12/31/19 |
Year Ended 12/31/18 |
|||||||||||||
Operations |
||||||||||||||||
Net investment income (loss) |
$ | 16,266,625 | $ | 15,883,099 | $ | 9,685,597 | $ | 9,194,656 | ||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments and foreign currency |
91,040,904 | 77,348,537 | 41,997,130 | 24,386,937 | ||||||||||||
Options purchased |
— | — | 107,085 | (54,184 | ) | |||||||||||
Options written |
(128,468,045 | ) | (31,389,997 | ) | (53,907,750 | ) | (4,180,303 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||
Investments and foreign currency |
246,272,851 | (150,391,375 | ) | 89,858,633 | (59,428,478 | ) | ||||||||||
Options purchased |
— | — | — | 18,912 | ||||||||||||
Options written |
(17,672,868 | ) | 9,452,928 | 1,993,945 | (3,063,607 | ) | ||||||||||
Net increase (decrease) in net assets applicable to common shares from operations |
207,439,467 | (79,096,808 | ) | 89,734,640 | (33,126,067 | ) | ||||||||||
Distributions to Common Shareholders |
||||||||||||||||
Dividends |
(16,177,307 | ) | (54,443,327 | ) | (9,874,342 | ) | (16,959,467 | ) | ||||||||
Return of capital |
(80,354,319 | ) | (47,095,759 | ) | (32,911,527 | ) | (27,798,055 | ) | ||||||||
Decrease in net assets applicable to common shares from distributions to shareholders |
(96,531,626 | ) | (101,539,086 | ) | (42,785,869 | ) | (44,757,522 | ) | ||||||||
Capital Share Transactions |
||||||||||||||||
Proceeds from shelf offering, net of offering costs |
3,299,488 | 561,188 | 3,692,490 | 164,266 | ||||||||||||
Net proceeds from common shares issued to shareholders due to reinvestment of distributions |
795,979 | 1,739,948 | 393,733 | 360,068 | ||||||||||||
Net increase (decrease) in net assets applicable to common shares from capital share transactions |
4,095,467 | 2,301,136 | 4,086,223 | 524,334 | ||||||||||||
Net increase (decrease) in net assets applicable to common shares |
115,003,308 | (178,334,758 | ) | 51,034,994 | (77,359,255 | ) | ||||||||||
Net assets applicable to common shares at the beginning of period |
1,307,668,586 | 1,486,003,344 | 610,219,918 | 687,579,173 | ||||||||||||
Net assets applicable to common shares at the end of period |
$ | 1,422,671,894 | $ | 1,307,668,586 | $ | 661,254,912 | $ | 610,219,918 |
See accompanying notes to financial statements.
53
Statement of Changes in Net Assets (continued)
SPXX | QQQX | |||||||||||||||
Year Ended 12/31/19 |
Year Ended 12/31/18 |
Year Ended 12/31/19 |
Year Ended 12/31/18 |
|||||||||||||
Operations |
||||||||||||||||
Net investment income (loss) |
$ | 2,890,348 | $ | 2,881,241 | $ | 2,189,322 | $ | 2,186,149 | ||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments and foreign currency |
8,946,838 | 13,112,032 | 76,537,118 | 76,302,757 | ||||||||||||
Options purchased |
38,407 | (17,311 | ) | 145,883 | (137,654 | ) | ||||||||||
Options written |
(21,461,425 | ) | (1,602,618 | ) | (87,367,839 | ) | (15,908,056 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||
Investments and foreign currency |
57,362,755 | (28,912,532 | ) | 215,791,192 | (90,287,978 | ) | ||||||||||
Options purchased |
— | 9,456 | — | 18,912 | ||||||||||||
Options written |
782,286 | (1,216,768 | ) | 2,970,469 | (8,656,830 | ) | ||||||||||
Net increase (decrease) in net assets applicable to common shares from operations |
48,559,209 | (15,746,500 | ) | 210,266,145 | (36,482,700 | ) | ||||||||||
Distributions to Common Shareholders |
||||||||||||||||
Dividends |
(3,025,188 | ) | (3,432,445 | ) | (2,259,594 | ) | (53,127,433 | ) | ||||||||
Return of capital |
(14,715,470 | ) | (14,867,541 | ) | (58,953,342 | ) | (9,358,525 | ) | ||||||||
Decrease in net assets applicable to common shares from distributions to shareholders |
(17,740,658 | ) | (18,299,986 | ) | (61,212,936 | ) | (62,485,958 | ) | ||||||||
Capital Share Transactions |
||||||||||||||||
Proceeds from shelf offering, net of offering costs |
5,909,430 | 6,083,367 | 35,551,397 | 28,570,110 | ||||||||||||
Net proceeds from common shares issued to shareholders due to reinvestment of distributions |
208,444 | 241,272 | 410,076 | 1,168,107 | ||||||||||||
Net increase (decrease) in net assets applicable to common shares from capital share transactions |
6,117,874 | 6,324,639 | 35,961,473 | 29,738,217 | ||||||||||||
Net increase (decrease) in net assets applicable to common shares |
36,936,425 | (27,721,847 | ) | 185,014,682 | (69,230,441 | ) | ||||||||||
Net assets applicable to common shares at the beginning of period |
238,343,547 | 266,065,394 | 766,930,473 | 836,160,914 | ||||||||||||
Net assets applicable to common shares at the end of period |
$ | 275,279,972 | $ | 238,343,547 | $ | 951,945,155 | $ | 766,930,473 |
See accompanying notes to financial statements.
54
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55
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions to Common Shareholders |
Common Shares | ||||||||||||||||||||||||||||||||||||||||||||||
Beginning Common Share NAV |
Net Investment Income (Loss)(a) |
Net Realized/ Unrealized Gain (Loss) |
Total | From Net Investment Income |
From Accumulated Net Realized Gains |
Return of Capital |
Total | Shelf Offering Costs |
Premium from Shares Sold through Shelf Offering |
Ending NAV |
Ending Share Price |
|||||||||||||||||||||||||||||||||||||
BXMX |
| |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||||||
2019 |
$ | 12.61 | $ | 0.16 | $ | 1.84 | $ | 2.00 | $ | (0.16 | ) | $ | — | $ | (0.77 | ) | $ | (0.93 | ) | $ | — | * | $ | — | * | $ | 13.68 | $ | 13.75 | |||||||||||||||||||
2018 |
14.35 | 0.15 | (0.91 | ) | (0.76 | ) | (0.16 | ) | (0.37 | ) | (0.45 | ) | (0.98 | ) | — | * | — | * | 12.61 | 12.07 | ||||||||||||||||||||||||||||
2017 |
13.52 | 0.16 | 1.58 | 1.74 | (0.15 | ) | — | (0.76 | ) | (0.91 | ) | — | — | 14.35 | 14.25 | |||||||||||||||||||||||||||||||||
2016 |
13.34 | 0.18 | 0.93 | 1.11 | (0.44 | ) | (0.29 | ) | (0.20 | ) | (0.93 | ) | — | — | 13.52 | 12.72 | ||||||||||||||||||||||||||||||||
2015 |
13.65 | 0.17 | 0.52 | 0.69 | (1.00 | ) | — | — | (1.00 | ) | — | — | 13.34 | 13.43 | ||||||||||||||||||||||||||||||||||
DIAX |
| |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||||||
2019 |
16.90 | 0.27 | 2.21 | 2.48 | (0.27 | ) | — | (0.91 | ) | (1.18 | ) | — | * | — | * | 18.20 | 17.66 | |||||||||||||||||||||||||||||||
2018 |
19.05 | 0.25 | (1.16 | ) | (0.91 | ) | (0.25 | ) | (0.22 | ) | (0.77 | ) | (1.24 | ) | — | * | — | * | 16.90 | 16.12 | ||||||||||||||||||||||||||||
2017 |
16.55 | 0.26 | 3.30 | 3.56 | (0.26 | ) | — | (0.80 | ) | (1.06 | ) | — | — | 19.05 | 18.84 | |||||||||||||||||||||||||||||||||
2016 |
15.78 | 0.27 | 1.54 | 1.81 | (0.27 | ) | — | (0.77 | ) | (1.04 | ) | — | — | 16.55 | 15.00 | |||||||||||||||||||||||||||||||||
2015 |
16.83 | 0.25 | (0.24 | ) | 0.01 | (0.65 | ) | (0.07 | ) | (0.34 | ) | (1.06 | ) | — | — | 15.78 | 14.36 | |||||||||||||||||||||||||||||||
SPXX |
| |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||||||
2019 |
14.42 | 0.17 | 2.74 | 2.91 | (0.18 | ) | — | (0.88 | ) | (1.06 | ) | — | * | — | * | 16.27 | 16.47 | |||||||||||||||||||||||||||||||
2018 |
16.47 | 0.18 | (1.12 | ) | (0.94 | ) | (0.18 | ) | (0.03 | ) | (0.91 | ) | (1.12 | ) | — | * | 0.01 | 14.42 | 14.04 | |||||||||||||||||||||||||||||
2017 |
14.98 | 0.19 | 2.29 | 2.48 | (0.19 | ) | — | (0.80 | ) | (0.99 | ) | — | — | 16.47 | 17.31 | |||||||||||||||||||||||||||||||||
2016 |
14.72 | 0.20 | 1.04 | 1.24 | (0.85 | ) | — | (0.13 | ) | (0.98 | ) | — | — | 14.98 | 14.40 | |||||||||||||||||||||||||||||||||
2015 |
15.61 | 0.20 | (0.05 | ) | 0.15 | (0.70 | ) | — | (0.34 | ) | (1.04 | ) | — | — | 14.72 | 13.47 | ||||||||||||||||||||||||||||||||
QQQX |
| |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||||||
2019 |
20.27 | 0.06 | 5.33 | 5.39 | (0.05 | ) | — | (1.51 | ) | (1.56 | ) | — | * | 0.02 | 24.12 | 24.05 | ||||||||||||||||||||||||||||||||
2018 |
22.84 | 0.06 | (0.98 | ) | (0.92 | ) | (0.06 | ) | (1.37 | ) | (0.25 | ) | (1.68 | ) | — | * | 0.03 | 20.27 | 20.00 | |||||||||||||||||||||||||||||
2017 |
19.58 | 0.04 | 4.66 | 4.70 | (0.04 | ) | (0.50 | ) | (0.90 | ) | (1.44 | ) | — | — | 22.84 | 24.21 | ||||||||||||||||||||||||||||||||
2016 |
19.98 | 0.09 | 0.91 | 1.00 | (0.09 | ) | (0.81 | ) | (0.50 | ) | (1.40 | ) | — | — | 19.58 | 18.56 | ||||||||||||||||||||||||||||||||
2015 |
19.86 | 0.11 | 1.41 | 1.52 | (0.43 | ) | (0.97 | ) | — | (1.40 | ) | — | — | 19.98 | 19.37 |
56
Common Share Supplemental Data/ Ratios Applicable to Common Shares |
||||||||||||||||||||||
Common Share Total Returns |
Ratios to Average Net Assets | |||||||||||||||||||||
Based on NAV(b) |
Based on Share Price(b) |
Ending Net Assets (000) |
Expenses | Net Investment Income (Loss) |
Portfolio Turnover Rate(c) |
|||||||||||||||||
16.16 | % | 22.08 | % | 1,422,672 | 0.91 | % | 1.18 | % | 4 | % | ||||||||||||
(5.56 | ) | (8.88 | ) | 1,307,669 | 0.89 | 1.10 | 5 | |||||||||||||||
13.21 | 19.59 | 1,486,003 | 0.91 | 1.12 | 2 | |||||||||||||||||
8.68 | 1.75 | 1,399,863 | 0.93 | 1.34 | 5 | |||||||||||||||||
5.17 | 19.80 | 1,381,889 | 0.91 | 1.24 | 8 | |||||||||||||||||
14.94 | 17.07 | 661,255 | 0.95 | 1.49 | 6 | |||||||||||||||||
(5.01 | ) | (8.27 | ) | 610,220 | 0.92 | 1.37 | 9 | |||||||||||||||
22.12 | 33.65 | 687,579 | 0.93 | 1.47 | 5 | |||||||||||||||||
11.95 | 12.18 | 597,216 | 0.94 | 1.73 | 6 | |||||||||||||||||
0.17 | 0.18 | 569,604 | 0.93 | 1.52 | 18 | |||||||||||||||||
20.62 | 25.40 | 275,280 | 0.99 | 1.11 | 8 | |||||||||||||||||
(6.03 | ) | (12.99 | ) | 238,344 | 0.91 | 1.08 | 16 | |||||||||||||||
16.91 | 27.91 | 266,065 | 0.92 | 1.18 | 11 | |||||||||||||||||
8.73 | 14.75 | 242,003 | 0.93 | 1.39 | 13 | |||||||||||||||||
1.09 | 1.70 | 237,809 | 0.92 | 1.32 | 21 | |||||||||||||||||
27.33 | 28.73 | 951,945 | 0.91 | 0.25 | 11 | |||||||||||||||||
(4.39 | ) | (11.15 | ) | 766,930 | 0.91 | 0.25 | 23 | |||||||||||||||
24.63 | 39.24 | 836,161 | 0.93 | 0.17 | 17 | |||||||||||||||||
5.28 | 3.30 | 715,835 | 0.94 | 0.49 | 17 | |||||||||||||||||
7.97 | 8.47 | 730,622 | 0.93 | 0.54 | 15 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at Common Share NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
(c) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives, Investment Transactions) divided by the average long-term market value during the period. |
* | Rounds to less than $0.01. |
See accompanying notes to financial statements.
57
1. General Information
Fund Information
The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) or Nasdaq National Market (“Nasdaq”) symbols are as follows (each a “Fund” and collectively, the “Funds”):
• | Nuveen S&P 500 Buy-Write Income Fund (BXMX) |
• | Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX) |
• | Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) |
• | Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) |
The Funds are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as diversified (non-diversified for DIAX and QQQX) closed-end management investment companies. Shares of BXMX, DIAX and SPXX are traded on the NYSE while shares of QQQX are traded on the Nasdaq. BXMX, DIAX, SPXX and QQQX were organized as Massachusetts business trusts on July 23, 2004, May 20, 2014, November 11, 2004 and May 20, 2014, respectively.
The end of the reporting period for the Funds is December 31, 2019, and the period covered by these Notes to Financial Statements is the fiscal year ended December 31, 2019 (the “current fiscal period”).
Investment Adviser and Sub-Adviser
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into sub-advisory agreements with Gateway Investment Advisers, LLC (“Gateway”), under which Gateway manages BXMX’s investment portfolio and Nuveen Asset Management, LLC (“NAM”), a subsidiary of the Adviser, under which NAM manages the investment portfolios of DIAX, SPXX and QQQX.
2. Significant Accounting Policies
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. Each Fund is an investment company and follows the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services – Investment Companies. The net asset value (“NAV”) for financial reporting purposes may differ from the NAV for processing security and common share transactions. The NAV for financial reporting purposes includes security and common share transactions through the date of the report. Total return is computed based on the NAV used for processing security and common share transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Compensation
The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Funds’ Board of Trustees (the “Board”) has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
Distributions to Common Shareholders
Distributions to 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.
Each Fund makes quarterly cash distributions to shareholders of a stated dollar amount per share. Subject to approval and oversight by the Board, each Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of each Fund’s investment strategy through regular quarterly distributions (a “Managed Distribution Program”). Total distributions during a calendar year generally will be made from each Fund’s net investment income, net realized capital gains and net unrealized capital gains in the Fund’s portfolio, if any. The portion of distributions paid attributed to net unrealized gains, if any, is distributed from the Fund’s assets and is treated by shareholders as a nontaxable distribution (“return of capital”) for tax
58
purposes. In the event that total distributions during a calendar year exceed a Fund’s total return on NAV, the difference will reduce NAV per share. If a Fund’s total return on NAV exceeds total distributions during a calendar year, the excess will be reflected as an increase in NAV per share. The final determination of the source and character of all distributions paid by a Fund during the fiscal year is made after the end of the fiscal year and is reflected in the financial statements contained in the annual report as of December 31 each year.
The tax character of Fund distributions for a fiscal year is dependent upon the amount and tax character of distributions received from securities held in the Fund’s portfolio. Distributions received from certain securities in which the Fund invests, most notably real estate investment trust securities, may be characterized for tax purposes as ordinary income, long-term capital gain and/or a return of capital. The issuer of a security reports the tax character of its distributions only once per year, generally during the first two months after the calendar year end. The distribution is included in the Fund’s ordinary income until such time the Fund is notified by the issuer of the actual tax character. Dividend income, net realized gain (loss) and unrealized appreciation (depreciation) recognized on the Statement of Operations reflect the amounts of income, capital gain, and/or return of capital as reported by the issuers of such securities for distributions during the current fiscal period.
Foreign Currency Transactions and Translation
To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollars at the end of each day. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions.
Net realized foreign currency gains and losses resulting from changes in exchange rates associated with (i) foreign currency, (ii) investments and (iii) derivatives include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received are recognized as a component of “Net realized gain (loss) from investments and foreign currency” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments and (ii) other assets and liabilities are recognized as a component of “Change in net unrealized appreciation (depreciation) of investments and foreign currency” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
Indemnifications
Under the Funds’ organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Investments and Investment Income
Securities transactions are accounted for as of the trade date for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when information is available. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded at fair value. Interest income is recorded on an accrual basis.
Netting Agreements
In the ordinary course of business, the Funds may enter into transactions subject to enforceable master repurchase agreements, International Swaps and Derivatives Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis.
59
Notes to Financial Statements (continued)
The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 4 – Portfolio Securities and Investments in Derivatives.
New Accounting Pronouncements and Rule Issuances
Fair Value Measurement: Disclosure Framework
During August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13 (“ASU 2018-13”), Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 modifies the disclosures required by Topic 820, Fair Value Measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has early implemented this guidance and it did not have a material impact on the Funds’ financial statements.
3. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
The Funds’ investment in securities are recorded at their estimated fair value. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 – | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. | |
Level 2 – | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.). | |
Level 3 – | Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
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 are valued 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 last quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in the United States are valued based on the last traded price, official closing price, or the most recent bid price 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 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, which may represent a transfer from a Level 1 to a Level 2 security.
Prices of fixed-income securities are provided by an independent pricing service (“pricing service”) approved by the Board. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2. 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 observability of the significant inputs.
Index options are valued at the 4:00 p.m. Eastern Time (ET) close price of the NYSE. The values of exchange-traded options are based on the mean of the closing bid and ask prices. Index and exchange-traded options are generally classified as Level 1. Options traded in the over-the-counter (“OTC”) market are valued using an evaluated mean price and are generally classified as Level 2.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and an investor is not able to purchase, redeem or exchange shares. If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Funds’ NAV is determined, or if under the Funds’ procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Board. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs.
60
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 Board and/or its appointee 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 Fund’s NAV (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 security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the observability of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Board and/or its appointee.
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
BXMX | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: |
||||||||||||||||
Common Stocks |
$ | 1,435,347,621 | $ | — | $ | — | $ | 1,435,347,621 | ||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 26,089,426 | — | 26,089,426 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Written |
(38,271,150 | ) | — | — | (38,271,150 | ) | ||||||||||
Total |
$ | 1,397,076,471 | $ | 26,089,426 | $ | — | $ | 1,423,165,897 | ||||||||
DIAX | ||||||||||||||||
Long-Term Investments*: |
||||||||||||||||
Common Stocks |
$ | 662,739,525 | $ | — | $ | — | $ | 662,739,525 | ||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 2,981,745 | — | 2,981,745 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Written |
(4,187,750 | ) | — | — | (4,187,750 | ) | ||||||||||
Total |
$ | 658,551,775 | $ | 2,981,745 | $ | — | $ | 661,533,520 | ||||||||
SPXX | ||||||||||||||||
Long-Term Investments*: |
||||||||||||||||
Common Stocks |
$ | 275,598,262 | $ | — | $ | — | $ | 275,598,262 | ||||||||
Common Stock Rights |
40,635 | — | — | 40,635 | ||||||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 1,249,441 | — | 1,249,441 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Written |
(1,727,450 | ) | — | — | (1,727,450 | ) | ||||||||||
Total |
$ | 273,911,447 | $ | 1,249,441 | $ | — | $ | 275,160,888 | ||||||||
QQQX | ||||||||||||||||
Long-Term Investments*: |
||||||||||||||||
Common Stocks |
$ | 958,519,746 | $ | — | $ | — | $ | 958,519,746 | ||||||||
Common Stock Rights |
412,779 | — | — | 412,779 | ||||||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 2,697,751 | — | 2,697,751 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Written |
(9,361,025 | ) | — | — | (9,361,025 | ) | ||||||||||
Total |
$ | 949,571,500 | $ | 2,697,751 | $ | — | $ | 952,269,251 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications, when applicable. |
61
Notes to Financial Statements (continued)
4. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Repurchase Agreements
In connection with transactions in repurchase agreements, it is each Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
The following table presents the repurchase agreements for the Funds that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.
Fund | Counterparty | Short-Term Investments, at Value |
Collateral Pledged (From) Counterparty* |
Net Exposure |
||||||||||
BXMX | Fixed Income Clearing Corporation |
$ | 26,089,426 | $ | (26,089,426 | ) | $ | — | ||||||
DIAX | Fixed Income Clearing Corporation |
2,981,745 | (2,981,745 | ) | — | |||||||||
SPXX | Fixed Income Clearing Corporation |
1,249,441 | (1,249,441 | ) | — | |||||||||
QQQX | Fixed Income Clearing Corporation |
2,697,751 | (2,697,751 | ) | — |
* | As of the end of the reporting period, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund’s Portfolio of Investments for details on the repurchase agreements. |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investment Transactions
Long-term purchases and sales (excluding derivative transactions) during the current reporting period were as follows:
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Purchases |
$ | 48,651,154 | $ | 38,991,462 | $ | 20,494,118 | $ | 97,024,092 | ||||||||
Sales |
248,690,623 | 124,800,689 | 49,622,979 | 201,324,147 |
The Funds may purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed-delivery purchase commitments. If a Fund has outstanding when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments, such as futures, options and swap contracts. Each Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Options Transactions
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 a Fund purchases an option, an amount equal to the premium paid (the premium plus commission) is recognized as a component of “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 “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 is exercised or expires or the Fund enters into a closing purchase transaction. The changes in the value of options purchased and/or written during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of options purchased and/or written” on the Statement of Operations. When an option is exercised or expires or a Fund enters into a closing purchase transaction, the difference between the net premium
62
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.
During the current fiscal period, BXMX sold call options on equity indices as part of its overall investment strategy with the notional amount of these options averaging 99% of the Fund’s assets.
During the current fiscal period, DIAX, SPXX and QQQX, each sold call options on equity indices as part of its overall investment strategy with the notional amounts of these options ranging from approximately 35-75% of each Fund’s assets. Each Fund also purchased and sold a small amount of call options and put options as part of its overwrite strategy.
The average notional amount of outstanding options purchased and options written during the current fiscal period, was as follows:
DIAX** | SPXX** | QQQX** | ||||||||||||||
Average notional amount of outstanding call options purchased* |
$ | — | $ | — | $ | — | ||||||||||
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Average notional amount of outstanding call options written* |
$ | (1,354,244,000 | ) | $ | (361,232,400 | ) | $ | (144,594,200 | ) | $ | (485,267,000 | ) | ||||
DIAX | SPXX | QQQX | ||||||||||||||
Average notional amount of outstanding put options purchased* |
$ | 456,000 | $ | 228,000 | $ | 456,000 | ||||||||||
DIAX |
SPXX |
QQQX |
||||||||||||||
Average notional amount of outstanding put options written* |
$ | (2,565,000 | ) | $ | (1,026,000 | ) | $ | (3,534,000 | ) |
* | The average notional amount is calculated based on the outstanding notional at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
** | DIAX, SPXX and QQQX invested in call options purchased during the current fiscal period. However the Funds did not hold any such positions at the beginning of the fiscal period or at the end of each fiscal quarter within the current fiscal period and therefore are not included as part of this calculation. |
The following table presents the fair value of all options written by the Funds as of the end of the reporting period, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities |
||||||||||||||||||
Underlying Risk Exposure |
Derivative Instrument |
Asset Derivatives |
(Liability) Derivatives |
|||||||||||||||
Location | Value | Location | Value | |||||||||||||||
BXMX |
| |||||||||||||||||
Equity price | Options written | — | $ | — | Options written, at value | $ | (38,271,150 | ) | ||||||||||
DIAX |
| |||||||||||||||||
Equity price | Options written | — | $ | — | Options written, at value | $ | (4,187,750 | ) | ||||||||||
SPXX |
| |||||||||||||||||
Equity price | Options written | — | $ | — | Options written, at value | $ | (1,727,450 | ) | ||||||||||
QQQX |
| |||||||||||||||||
Equity price | Options written | — | $ | — | Options written, at value | $ | (9,361,025 | ) |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on options purchased and options written on the Statement of Operations during the current fiscal period, and the primary underlying risk exposure.
Fund | Underlying Risk Exposure |
Derivative Instrument |
Net Realized Gain (Loss) from Options Purchased/Written |
Change in Net Unrealized Appreciation (Depreciation) of Options Purchased/Written |
||||||||
BXMX | Equity price | Options written | $ | (128,468,045 | ) | $ | (17,672,868 | ) | ||||
DIAX | Equity price | Options purchased | 107,085 | — | ||||||||
DIAX | Equity price | Options written | (53,907,750 | ) | 1,993,945 | |||||||
SPXX | Equity price | Options purchased | 38,407 | — | ||||||||
SPXX | Equity price | Options written | (21,461,425 | ) | 782,286 | |||||||
QQQX | Equity price | Options purchased | 145,883 | — | ||||||||
QQQX | Equity price | Options written | (87,367,839 | ) | 2,970,469 |
63
Notes to Financial Statements (continued)
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
5. Fund Shares
Common Shares
Common Share Equity Shelf Programs and Offering Costs
The Funds have each filed registration statements with the Securities and Exchange Commission (“SEC”) authorizing each Fund to issue additional shares through one or more equity shelf program (“Shelf Offering”), which became effective with the SEC during the prior fiscal period.
Under these Shelf Offerings, the Funds, subject to market conditions, may raise additional equity capital by issuing additional shares from time to time in varying amounts and by different offering methods at a net price at or above each Fund’s NAV per common share. In the event each Fund’s Shelf Offering registration statement is no longer current, the Funds may not issue additional shares until a post-effective amendment to the registration statement has been filed with the SEC.
Additional authorized common shares, common shares sold and offering proceeds, net of offering costs under each Fund’s Shelf Offering during the Funds’ current and prior fiscal period were as follows:
BXMX | DIAX | SPXX | QQQX | |||||||||||||||||||||||||||||
Year Ended 12/31/19 |
Year Ended 12/31/18* |
Year Ended 12/31/19 |
Year Ended 12/31/18* |
Year Ended 12/31/19 |
Year Ended 12/31/18** |
Year Ended |
Year Ended 12/31/18*** |
|||||||||||||||||||||||||
Additional authorized common shares |
10,400,000 | 10,400,000 | 3,600,000 | 3,600,000 | 1,600,000 | 1,600,000 | 11,355,021 | 3,700,000 | ||||||||||||||||||||||||
Common shares sold |
242,725 | 39,402 | 205,606 | 8,500 | 380,562 | 361,950 | 1,619,980 | 1,169,702 | ||||||||||||||||||||||||
Offering proceeds, net of offering costs |
$ | 3,299,488 | $ | 561,188 | $ | 3,692,490 | $ | 164,266 | $ | 5,909,430 | $ | 6,083,367 | $ | 35,551,397 | $ | 28,570,110 |
* | Represents total additional authorized shares for the period October 2, 2018 through December 31, 2018. |
** | Represents total additional authorized shares for the period June 14, 2018 through December 31, 2018. |
*** | Represents total additional authorized shares for the period June 28, 2018 through December 31, 2018. |
Costs incurred by the Funds in connection with their initial shelf registrations are recorded as a prepaid expense and recognized as “Deferred offering costs” on the Statement of Assets and Liabilities. These costs are amortized pro rata as shares are sold and are recognized as a component of “Proceeds from shelf offering, net of offering costs” on the Statement of Changes in Net Assets. Any deferred offering costs remaining one year after effectiveness of the initial shelf registration will be expensed. Costs incurred by the Funds to keep the shelf registration current are expensed as incurred and recognized as a component of “Shelf offering expenses” on the Statement of Operations.
Common Share Transactions
Transactions in common shares for the Funds during the Funds’ current and prior fiscal period, where applicable, were as follows:
BXMX | DIAX | SPXX | QQQX | |||||||||||||||||||||||||||||
Year Ended |
Year Ended 12/31/18 |
Year Ended 12/31/19 |
Year Ended 12/31/18 |
Year Ended |
Year Ended 12/31/18 |
Year Ended 12/31/19 |
Year Ended 12/31/18 |
|||||||||||||||||||||||||
Common shares: |
||||||||||||||||||||||||||||||||
Sold through shelf offering |
242,725 | 39,402 | 205,606 | 8,500 | 380,562 | 361,950 | 1,619,980 | 1,169,702 | ||||||||||||||||||||||||
Issued to shareholders due to reinvestment of distributions |
60,255 | 123,975 | 22,246 | 19,310 | 13,426 | 14,632 | 18,331 | 49,387 | ||||||||||||||||||||||||
Weighted average common share: |
||||||||||||||||||||||||||||||||
Premium to NAV per shelf offering sold |
1.18 | % | 1.56 | % | 1.34 | % | 1.57 | % | 1.27 | % | 3.33 | % | 1.78 | % | 3.36 | % |
64
6. Income Tax Information
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment 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 the Funds realize 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.
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 recording income, timing differences in recognizing certain gains and losses on investment transactions and the recognition of unrealized gain or loss for tax (mark-to-market) on options contracts. 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 NAVs of the Funds.
The table below presents the cost and unrealized appreciation (depreciation) of each Fund’s investment portfolio, as determined on a federal income tax basis, as of December 31, 2019.
For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Tax cost of investments |
$ | 588,479,773 | $ | 266,949,065 | $ | 116,294,247 | $ | 294,735,238 | ||||||||
Gross unrealized: |
||||||||||||||||
Appreciation |
$ | 854,819,104 | $ | 396,426,798 | $ | 163,529,610 | $ | 669,020,676 | ||||||||
Depreciation |
(20,132,980 | ) | (1,842,343 | ) | (4,662,969 | ) | (11,486,663 | ) | ||||||||
Net unrealized appreciation (depreciation) of investments |
$ | 834,686,124 | $ | 394,584,455 | $ | 158,866,641 | $ | 657,534,013 | ||||||||
Permanent differences, primarily due to foreign currency transactions, real estate investment trust adjustments and nondeductible offering costs, resulted in reclassifications among the Funds’ components of net assets as of December 31, 2019, the Funds’ tax year end.
|
| |||||||||||||||
The tax components of undistributed net ordinary income and net long-term capital gains as of December 31, 2019, the Funds’ tax year end, were as follows:
|
| |||||||||||||||
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Undistributed net ordinary income |
$ | — | $ | — | $ | — | $ | — | ||||||||
Undistributed net long-term capital gains |
— | — | — | — | ||||||||||||
The tax character of distributions paid during the Funds’ tax years ended December 31, 2019 and December 31, 2018 was designated for purposes of the dividends paid deduction as follows:
|
| |||||||||||||||
2019 | BXMX | DIAX | SPXX | QQQX | ||||||||||||
Distributions from net ordinary income1 |
$ | 16,177,307 | $ | 9,874,342 | $ | 3,025,188 | $ | 2,259,594 | ||||||||
Distributions from net long-term capital gains |
— | — | — | — | ||||||||||||
Return of capital |
80,354,319 | 32,911,527 | 14,715,470 | 58,953,342 | ||||||||||||
2018 | BXMX | DIAX | SPXX | QQQX | ||||||||||||
Distributions from net ordinary income1 |
$ | 16,056,678 | $ | 9,194,656 | $ | 2,948,858 | $ | 2,053,079 | ||||||||
Distributions from net long-term capital gains |
38,386,649 | 7,764,811 | 483,587 | 51,074,354 | ||||||||||||
Return of capital |
47,095,759 | 27,798,055 | 14,867,541 | 9,358,525 | ||||||||||||
1 Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
|
65
Notes to Financial Statements (continued)
As of December 31, 2019, the Funds’ tax year end, the Funds had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Not subject to expiration: |
| |||||||||||||||
Short-term |
$ | 54,889,322 | $ | 10,322,337 | $ | 8,287,385 | $ | 10,508,636 | ||||||||
Long-term |
— | — | 3,678,354 | — | ||||||||||||
Total |
$ | 54,889,322 | $ | 10,322,337 | $ | 11,965,739 | $ | 10,508,636 |
7. Management Fees
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. Gateway and NAM are compensated for their services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:
Average Daily Managed Assets* | BXMX | DIAX | SPXX | QQQX | ||||||||||||
For the first $500 million |
0.7000 | % | 0.7000 | % | 0.6600 | % | 0.6900 | % | ||||||||
For the next $500 million |
0.6750 | 0.6750 | 0.6350 | 0.6650 | ||||||||||||
For the next $500 million |
0.6500 | 0.6500 | 0.6100 | 0.6400 | ||||||||||||
For the next $500 million |
0.6250 | 0.6250 | 0.5850 | 0.6150 | ||||||||||||
For managed assets over $2 billion |
0.6000 | 0.6000 | 0.5600 | 0.5900 |
The annual complex-level fee, payable monthly, for each Fund is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by each Fund’s daily managed assets:
Complex-Level Eligible Asset Breakpoint Level* | Effective Complex-Level Fee Rate at Breakpoint Level | |||
$55 billion |
0.2000 | % | ||
$56 billion |
0.1996 | |||
$57 billion |
0.1989 | |||
$60 billion |
0.1961 | |||
$63 billion |
0.1931 | |||
$66 billion |
0.1900 | |||
$71 billion |
0.1851 | |||
$76 billion |
0.1806 | |||
$80 billion |
0.1773 | |||
$91 billion |
0.1691 | |||
$125 billion |
0.1599 | |||
$200 billion |
0.1505 | |||
$250 billion |
0.1469 | |||
$300 billion |
0.1445 |
* | For the complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen open-end and closed-end funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do not include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. As of December 31, 2019, the complex-level fee for each Fund was 0.1562%. |
8. Borrowing Arrangements
Inter-Fund Borrowing and Lending
The SEC has granted an exemptive order permitting registered open-end and closed-end Nuveen funds to participate in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting in an unanticipated cash shortfall) (the “Inter-Fund Program”). The closed-end Nuveen funds, including the Funds covered by this shareholder report, will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds rarely,
66
if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including, among other things, the requirements that (1) no fund may borrow or lend money through the Inter-Fund Program unless it receives a more favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no fund may borrow on an unsecured basis through the Inter-Fund Program unless the fund’s outstanding borrowings from all sources immediately after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing fund has a secured borrowing outstanding from any other lender, including but not limited to another fund, the inter-fund loan must be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after an inter-fund borrowing would be greater than 10% of its total assets, the fund may borrow through the inter-fund loan on a secured basis only; (4) no fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15% of its net assets at the time of the loan; (5) a fund’s inter-fund loans to any one fund shall not exceed 5% of the lending fund’s net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending fund and may be repaid on any day by a borrowing fund. In addition, a Nuveen fund may participate in the Inter-Fund Program only if and to the extent that such participation is consistent with the fund’s investment objective and investment policies. The Board is responsible for overseeing the Inter-Fund Program.
The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
During the current reporting period, none of the Funds covered by this shareholder report have entered into any inter-fund loan activity.
67
Additional Fund Information (Unaudited)
Board of Trustees | ||||||||||
Jack B. Evans | William C. Hunter | Albin F. Moschner | John K. Nelson | Judith M. Stockdale | Carole E. Stone | |||||
Terence J. Toth | Margaret L. Wolff | Robert L. Young |
Investment Adviser Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606 |
Custodian State Street Bank & Trust Company One Lincoln Street Boston, MA 02111 |
Legal Counsel Chapman and Cutler LLP Chicago, IL 60603 |
Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP One North Wacker Drive Chicago, IL 60606 |
Transfer Agent and Shareholder Services Computershare Trust Company, N.A. 150 Royall Street Canton, MA 02021 (800) 257-8787 |
Distribution Information
The Funds hereby designate their percentages of dividends paid from net ordinary income as dividends qualifying for the dividends received deduction (“DRD”) for corporations and their percentages as qualified dividend income (“QDI”) for individuals under Section 1(h)(11) of the Internal Revenue Code as shown in the accompanying table. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
% DRD |
100.0% | 100.0% | 100.0% | 100.0% | ||||||||||||
% QDI |
100.0% | 100.0% | 100.0% | 100.0% |
Portfolio of Investments Information
The Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. You may obtain this information on the SEC’s website at http://www.sec.gov.
Nuveen Funds’ Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
CEO Certification Disclosure
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common Share Repurchases
Each Fund intends to repurchase through its open-market share repurchase program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock as shown in the accompanying table. Any future repurchases will be reported in the next annual or semi-annual report.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Common Shares repurchased |
— | — | — | — |
FINRA BrokerCheck
The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FlNRA.org.
68
Glossary of Terms Used in this Report
(Unaudited)
∎ | Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
∎ | Beta: A measure of the variability of the change in the share price for a Fund in relation to a change in the value of the Fund’s market benchmark. Securities with betas higher than 1.0 have been, and are expected to be, more volatile than the benchmark; securities with betas lower than 1.0 have been, and are expected to be, less volatile than the benchmark. |
∎ | Chicago Board Options Exchange (Cboe) S&P 500 BuyWrite Index (BXMSM): An index designed to track the performance of a hypothetical buy-write strategy on the S&P 500®. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
∎ | Chicago Board Options Exchange (Cboe) Volatility Index® (VIX®): An index that is a key measure of market expectations of near-term volatility conveyed by S&P 500® option prices. Since its introduction in 1993, VIX has been considered by many to be the world’s premier barometer of investor sentiment and market volatility (www.cboe.com). Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
∎ | Chicago Board Options Exchange (Cboe) Dow Jones Industrial Average (DJIA) BuyWrite Index (BXDSM): A benchmark index that measures the performance of a theoretical portfolio that sells call options on the Dow Jones Industrial Average (the Dow), against a portfolio of the stocks included in the Dow. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
∎ | Chicago Board Options Exchange (Cboe) Nasdaq 100 BuyWrite Index (BXNSM): A benchmark index that measures the performance of a theoretical portfolio that owns a basket of the stocks included in the Nasdaq 100 Index, and “writes” (or sells) Nasdaq 100 Index covered call options each month. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
∎ | DIAX Blended Benchmark: The DIAX Blended Benchmark is a blended return consisting of 1) 55% Chicago Board Options Exchange (Cboe) DJIA BuyWrite Index (BXD), which is designed to track the performance of a hypothetical buy-write strategy on the Dow Jones Industrial Average and 2) 45% Dow Jones Industrial Average (DJIA), which tracks the performance of 30 large cap companies. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
∎ | Dow Jones Industrial Average (DJIA): An average that tracks the performance of 30 large cap companies. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
∎ | Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. |
∎ | Nasdaq-100 Index: An index that includes 100 of the largest domestic and international nonfinancial securities listed on the Nasdaq Stock Market based on market capitalization. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
∎ | Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares outstanding. |
∎ | QQQX Blended Benchmark: The QQQX Blended Benchmark is a blended return consisting of 1) 55% Chicago Board of Exchange (Cboe) Nasdaq 100 BuyWrite Index (BXNSM), which measures the performance of a theoretical portfolio that owns a basket of the |
69
Glossary of Terms Used in this Report (continued)
(Unaudited)
stocks included in the Nasdaq 100 Index, and “writes” (or sells) Nasdaq 100 Index covered call options each month and 2) 45% Nasdaq-100 Index, which includes 100 of the largest domestic and international nonfinancial securities listed on the Nasdaq Stock Market based on market capitalization. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
∎ | S&P 500®: An unmanaged index generally considered representative of the U.S. stock market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. |
∎ | SPXX Blended Benchmark: The SPXX Blended Benchmark is a blended return consisting of 1) 55% Chicago Board Options Exchange (Cboe) S&P 500 BuyWrite Index (BXMSM), which is designed to track the performance of a hypothetical buy-write strategy on the S&P 500® and 2) 45% S&P 500®, an unmanaged index generally considered representative of the U.S. stock market. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
70
Reinvest Automatically, Easily and Conveniently
71
(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 of Trustees of the Funds. The number of trustees of the Funds is set at nine. None of the trustees 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 trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each Trustee oversees and other directorships they hold are set forth below.
Name, Year of Birth & 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: | ||||||||
∎ TERENCE J. TOTH |
Formerly, a Co-Founding Partner, Promus Capital (2008-2017); Director, Quality Control Corporation (since 2012); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its Investment Committee; formerly, Director, Fulcrum IT Services LLC (2010-2019); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); 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); 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). | |||||||
1959 333 W. Wacker Drive Chicago, IL 60606 |
Chairman and Board Member | 2008 Class II |
157 | |||||
∎ JACK B. EVANS |
Chairman (since 2019), formerly, President (1996-2019), The Hall-Perrine Foundation, a private philanthropic corporation; Director and Chairman, United Fire Group, a publicly held company; Director, Public Member, American Board of Orthopaedic Surgery (since 2015); Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; formerly, Director, Alliant Energy and The Gazette Company; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | |||||||
1948 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
1999 Class III |
157 | |||||
∎ WILLIAM C. HUNTER |
Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director of Wellmark, Inc. (since 2009); past Director (2005-2015), and past President (2010-2014) Beta Gamma Sigma, Inc., The International Business Honor Society; formerly, Director (2004-2018) of Xerox Corporation; 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. | |||||||
1948 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2003 Class I |
157 | |||||
∎ ALBIN F. MOSCHNER |
Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); formerly, Chairman (2019), and Director (2012-2019), USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions; formerly, Director, Wintrust Financial Corporation (1996-2016); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions (1991-1996) and Chief Executive Officer (1995-1996) of Zenith Electronics Corporation. | |||||||
1952 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2016 Class III |
157 | |||||
72
Name, Year of Birth & 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): | ||||||||
∎ JOHN K. NELSON |
Member of Board of Directors of Core12 LLC. (since 2008), a private firm which develops branding, marketing and communications strategies for clients; served The President’s Council of Fordham University (2010-2019) and previously a Director of the Curran Center for Catholic American Studies (2009-2018); formerly, senior external advisor to the Financial Services practice of Deloitte Consulting LLP. (2012-2014); former Chair of the Board of Trustees of Marian University (2010-2014 as trustee, 2011-2014 as Chair); formerly Chief Executive Officer of ABN AMRO Bank N.V., North America, and Global Head of the Financial Markets Division (2007-2008), with various executive leadership roles in ABN AMRO Bank N.V. between 1996 and 2007. | |||||||
1962 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2013 Class II |
157 | |||||
∎ JUDITH M. STOCKDALE |
Board Member, Land Trust Alliance (since 2013); formerly, Board Member, U.S. Endowment for Forestry and Communities (2013-2019); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | |||||||
1947 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
1997 Class I |
157 | |||||
∎ CAROLE E. STONE |
Former Director, Chicago Board Options Exchange, Inc. (2006-2017); and C2 Options Exchange, Incorporated (2009-2017); Director, Cboe, Global Markets, Inc., formerly, CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010). | |||||||
1947 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2007 Class I |
157 | |||||
∎ MARGARET L. WOLFF |
Formerly, member of the Board of Directors (2013-2017) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | |||||||
1955 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2016 Class I |
157 | |||||
∎ ROBERT L. YOUNG(2) |
Formerly, Chief Operating Officer and Director, J.P.Morgan Investment Management Inc. (2010-2016); formerly, President and Principal Executive Officer (2013-2016), and Senior Vice President and Chief Operating Officer (2005-2010), of J.P.Morgan Funds; formerly, Director and various officer positions for J.P.Morgan Investment Management Inc. (formerly, JPMorgan Funds Management, Inc. and formerly, One Group Administrative Services) and JPMorgan Distribution Services, Inc. (formerly, One Group Dealer Services, Inc.) (1999-2017). | |||||||
1963 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2017 Class II |
157 | |||||
73
Board Members & Officers (continued)
(Unaudited)
Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed(3) |
Principal Occupation(s) During Past 5 Years |
|||||
Officers of the Funds: | ||||||||
∎ CEDRIC H. ANTOSIEWICZ |
Senior Managing Director (since 2017), formerly, Managing Director (2004-2017) of Nuveen Securities, LLC; Senior Managing Director (since 2017), formerly, Managing Director (2014-2017) of Nuveen Fund Advisors, LLC. | |||||||
1962 333 W. Wacker Drive Chicago, IL 60606 |
Chief Administrative Officer | 2007 |
||||||
∎ NATHANIEL T. JONES |
Managing Director (since 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011-2016) of Nuveen; Managing Director (since 2015) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst. | |||||||
1979 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Treasurer | 2016 |
||||||
∎ WALTER M. KELLY |
Managing Director (since 2017), formerly, Senior Vice President (2008-2017) of Nuveen. | |||||||
1970 333 W. Wacker Drive Chicago, IL 60606 |
Chief Compliance Officer and Vice President | 2003 |
||||||
∎ DAVID J. LAMB |
Managing Director (since 2017), formerly, Senior Vice President of Nuveen (since 2006), Vice President prior to 2006. | |||||||
1963 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2015 |
||||||
∎ TINA M. LAZAR |
Managing Director (since 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC. | |||||||
1961 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2002 |
||||||
∎ BRIAN J. LOCKHART |
Managing Director (since 2019) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Vice President (2010-2017) of Nuveen; Head of Investment Oversight (since 2017), formerly, Team Leader of Manager Oversight (2015-2017); Chartered Financial Analyst and Certified Financial Risk Manager. | |||||||
1974 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2019 |
||||||
∎ JACQUES M. LONGERSTAEY |
Senior Managing Director, Chief Risk Officer, Nuveen, LLC (since May 2019); Senior Managing Director (since May 2019) of Nuveen Fund Advisors, LLC; formerly, Chief Investment and Model Risk Officer, Wealth & Investment Management Division, Wells Fargo Bank (NA) (from 2013-2019). | |||||||
1963 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President |
2019 |
||||||
74
Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed(3) |
Principal Occupation(s) During Past 5 Years |
|||||
Officers of the Funds (continued): | ||||||||
∎ KEVIN J. MCCARTHY |
Senior Managing Director (since 2017) and Secretary and General Counsel (since 2016) of Nuveen Investments, Inc., formerly, Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2008-2016); Senior Managing Director (since 2017) and Assistant Secretary (since 2008) of Nuveen Securities, LLC, formerly Executive Vice President (2016-2017) and Managing Director (2008-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC, formerly, Executive Vice President (2016-2017), Managing Director (2008-2016) and Assistant Secretary (2007-2016); Senior Managing Director (since 2017), Secretary (since 2016) and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC, formerly Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2011-2016); Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Investments Advisers, LLC, formerly Executive Vice President (2016-2017); Vice President (since 2007) and Secretary (since 2016), formerly, Assistant Secretary, of NWQ Investment Management Company, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC and Winslow Capital Management, LLC (since 2010). Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Alternative Investments, LLC. | |||||||
1966 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Assistant Secretary | 2007 |
||||||
∎ JON SCOTT MEISSNER |
Managing Director of Mutual Fund Tax and Financial Reporting groups at Nuveen (since 2017); Managing Director of Nuveen Fund Advisors, LLC (since 2019); Senior Director of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC (since 2016); Senior Director (since 2015) Mutual Fund Taxation to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the CREF Accounts; has held various positions with TIAA since 2004. | |||||||
1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President |
2019 |
||||||
∎ WILLIAM T. MEYERS |
Senior Managing Director (since 2017), formerly, Managing Director (2016-2017), Senior Vice President (2010-2016) of Nuveen Securities, LLC and Nuveen Fund Advisors, LLC; Senior Managing Director (since 2017), formerly, Managing Director (2016-2017), Senior Vice President (2010-2016) of Nuveen, has held various positions with Nuveen since 1991. | |||||||
1966 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2018 |
||||||
∎ MICHAEL A. PERRY |
Executive Vice President (since 2017), previously Managing Director (from 2016), of Nuveen Fund Advisors, LLC and Nuveen Alternative Investments, LLC; Executive Vice President (since 2017), formerly, Managing Director (2015-2017), of Nuveen Securities, LLC; formerly, Managing Director (2010-2015) of UBS Securities, LLC. | |||||||
1967 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2017 |
||||||
∎ CHRISTOPHER M. ROHRBACHER |
Managing Director (since 2017) and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2017), formerly, Senior Vice President (2016-2017), Co-General Counsel (since 2019) and Assistant Secretary (since 2016) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Senior Vice President (2012-2017) and Associate General Counsel (since 2016), formerly, Assistant General Counsel (2008-2016) of Nuveen. | |||||||
1971 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Assistant Secretary | 2008 |
||||||
∎ WILLIAM A. SIFFERMANN |
Managing Director (since 2017), formerly Senior Vice President (2016-2017) and Vice President (2011-2016) of Nuveen. | |||||||
1975 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2017 |
75
Board Members & Officers (continued)
(Unaudited)
Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed(3) |
Principal Occupation(s) During Past 5 Years |
|||||
Officers of the Funds (continued): | ||||||||
∎ E. SCOTT WICKERHAM |
Senior Managing Director, Head of Fund Administration at Nuveen, LLC (since 2019), formerly, Managing Director; Senior Managing Director (since 2019), Nuveen Fund Advisers, LLC; Principal Financial Officer, Principal Accounting Officer and Treasurer (since 2017) to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the Treasurer (since 2017) to the CREF Accounts; Senior Director, TIAA-CREF Fund Administration (2014-2015); has held various positions with TIAA since 2006. | |||||||
1973 TIAA 730 Third Avenue New York, NY 10017 |
Vice President and Controller | 2019 |
||||||
∎ MARK L. WINGET |
Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2008); Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2019); Vice President (since 2010) and Associate General Counsel (since 2016), formerly, Assistant General Counsel (2008-2016) of Nuveen. | |||||||
1968 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Assistant Secretary | 2008 |
||||||
∎ GIFFORD R. ZIMMERMAN |
Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, 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, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Vice President (since 2017), formerly, Managing Director (2003-2017) and Assistant Secretary (since 2003) of Symphony Asset Management LLC; Managing Director and Assistant Secretary (since 2002) of Nuveen Investments Advisers, LLC; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management, LLC, (since 2010); Chartered Financial Analyst. | |||||||
1956 333 W. Wacker Drive Chicago, IL 60606 |
Vice President Secretary | 1988 |
||||||
(1) | The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares, when applicable, to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen complex. |
(2) | Effective July 1, 2017, Mr. Young was appointed as a Board Member of each of the Nuveen Funds except Nuveen Diversified Dividend and Income Fund (JDD) and Nuveen Real Estate Income Fund (JRS). Effective February 27, 2020, Mr. Young was appointed as a Board Member of JDD and JRS. |
(3) | 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. |
76
Notes
77
Notes
78
Notes
79
Nuveen:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen to provide
dependable investment solutions through continued adherence to proven,
long-term investing
principles. Today, we offer a range of high quality solutions designed to
be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.
Find
out how we can help you.
To learn more about how the products and services of Nuveen may be able to help you meet your financial goals, talk to your financial 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, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/closed-end-funds
Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com | EAN-D-1219D 1077310-INV-Y-02/21 |
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/fund-governance. (To view the code, click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period covered by this report, the registrant’s 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. The registrant’s audit committee financial experts are Carole E. Stone, Jack B. Evans and William C. Hunter who are “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 State’s operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State’s bond-related disclosure documents and certifying that they fairly presented the State’s financial position; reviewing audits of various State and local agencies and programs; and coordinating the State’s 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. Stone’s 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.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser (“SCI”). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the “CFO”) and actively supervised the CFO’s preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI’s financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.
Mr. Hunter was formerly a Senior Vice President at the Federal Reserve Bank of Chicago. As part of his role as Senior Vice President, Mr. Hunter was the senior officer responsible for all operations of each of the Economic Research, Statistics, and Community and Consumer Affairs units at the Federal Reserve Bank of Chicago. In such capacity, Mr. Hunter oversaw the subunits of the Statistics and Community and Consumer Affairs divisions responsible for the analysis and evaluation of bank and bank holding company financial statements and financial filings. Prior to serving as Senior Vice President at the Federal Reserve Bank of Chicago, Mr. Hunter was the Vice President of the Financial Markets unit at the Federal Reserve Bank of Atlanta where he supervised financial staff and bank holding company analysts who analyzed and evaluated bank and bank holding company financial statements. Mr. Hunter also currently serves on the Boards of Directors of Xerox Corporation and Wellmark, Inc. as well as on the Audit Committees of such Boards. As an Audit Committee member, Mr. Hunter’s responsibilities include, among other things, reviewing financial statements, internal audits and internal controls over financial reporting. Mr. Hunter also formerly was a Professor of Finance at the University of Connecticut School of Business and has authored numerous scholarly articles on the topics of finance, accounting and economics.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Fund’s auditor, billed to the Fund during the Fund’s 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 Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chair (or, in her absence, any other member of the Audit Committee).
SERVICES THAT THE FUND’S 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 |
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December 31, 2019 |
$ | 34,420 | $ | 3,500 | $ | 0 | $ | 0 | ||||||||
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Percentage approved pursuant to pre-approval exception |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
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December 31, 2018 |
$ | 34,508 | $ | 8,000 | $ | 2,752 | $ | 0 | ||||||||
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Percentage approved pursuant to pre-approval exception |
0 | % | 0 | % | 0 | % | 0 | % | ||||||||
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1 “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements.
2 “Audit Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage.
3 “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculation performed by the principal accountant.
4 “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage.
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by PricewaterhouseCoopers LLP to Nuveen Fund Advisors, LLC (formerly Nuveen Fund Advisors, Inc.) (the “Adviser”), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two full fiscal years.
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 Committee’s attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.
Fiscal Year Ended |
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 |
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December 31, 2019 |
$ | 0 | $ | 0 | $ | 0 | ||||||
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Percentage approved pursuant to pre-approval exception |
0 | % | 0 | % | 0 | % | ||||||
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December 31, 2018 |
$ | 0 | $ | 0 | $ | 0 | ||||||
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Percentage approved pursuant to pre-approval exception |
0 | % | 0 | % | 0 | % | ||||||
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NON-AUDIT SERVICES
The following table shows the amount of fees that PricewaterhouseCoopers LLP billed during the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that PricewaterhouseCoopers LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund’s 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 Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PricewaterhouseCoopers LLP’s 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, 2019 |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
December 31, 2018 |
$ | 2,752 | $ | 0 | $ | 0 | $ | 2,752 |
“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.
Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
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 Fund’s independent accountants and (ii) all audit and non-audit services to be performed by the Fund’s 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 chair for her 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 registrant’s 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 the end of the period covered by this report, the members of the audit committee are Jack B. Evans, William C. Hunter, John K. Nelson, Judith M. Stockdale and Carole E. Stone, Chair.
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, LLC is the registrant’s investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s 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 the registrant’s portfolio and related duties in accordance with the Sub-Adviser’s policies and procedures. The Adviser periodically monitors the Sub-Adviser’s voting to ensure that it is carrying out its duties. The Sub-Adviser’s proxy voting policies and procedures are attached to this filing as an exhibit.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, LLC is the registrant’s investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” 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:
Item 8(a)(1). PORTFOLIO MANAGER BIOGRAPHIES
As of the date of filing this report, the following individuals at the Sub-Adviser have primary responsibility for the day-to-day implementation of the Fund’s investment strategy:
David Friar, Managing Director and Portfolio Manager (since 2011) of Nuveen Asset Management, entered the financial services industry in 1998. He is the lead manager of the equity index, mid cap index, small cap index and enhanced equity index strategies and related institutional portfolios. He joined the team managing the Equity, mid cap and small cap Index Strategies in 2000 and became part of the enhanced equity index team in 2007. He joined the firm in 1999 as a member of the performance measurement group.
Jody Hrazanek joined Nuveen in May 2018 from Voya Investment Management (2005 to 2018) where she was head of Strategy Design and Implementation. In this role, she was portfolio manager for a number of multi-asset strategies including target date, portable alpha and option overlay strategies. Ms. Hrazanek has been a portfolio manager of the Fund since September 1, 2018. She is the lead portfolio manager in Nuveen’s multi asset and strategic solutions investment team. She leads structured investments strategies, including volatility management, option overlay and related portfolios.
Item 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS
In addition to the Fund, as of December 31, 2019, the portfolio managers are also primarily responsible for the day-to-day portfolio management of the following accounts:
(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 |
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(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 |
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David Friar |
4 | $ | 2.14 billion | 0 | $ | 0 | 0 | $ | 0 | N/A | N/A | N/A | ||||||||||||||||||||||||
1 | * | $ | 95 million | |||||||||||||||||||||||||||||||||
Jody Hrazanek |
4 | $ | 2.14 billion | 0 | $ | 0 | 6 | $ | 72.4 million | N/A | N/A | N/A | ||||||||||||||||||||||||
1 | * | $ | 71 million |
* | Other Accounts-overlay strategies – The portfolio manager is responsible for the management of overlay strategies employed by this account that use derivative instruments either to obtain, offset or substitute for certain portfolio exposures beyond those provided by the account’s underlying portfolios. |
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented a number of potential conflicts, including, among others, those discussed below.
The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Nuveen Asset Management seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.
If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Nuveen Asset Management has adopted procedures for allocating limited opportunities across multiple accounts.
With respect to many of its clients’ accounts, Nuveen Asset Management determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, Nuveen Asset Management may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Nuveen Asset Management may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.
Some clients are subject to different regulations. As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques or transactions or to engage in these transactions to the same extent as the other accounts managed by the portfolio manager. Finally, the appearance of a conflict of interest may arise where Nuveen Asset Management has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.
Conflicts of interest may also arise when the Sub-Adviser invests one or more of its client accounts in different or multiple parts of the same issuer’s capital structure, including investments in public versus private securities, debt versus equity, or senior versus junior/subordinated debt, or otherwise where there are different or inconsistent rights or benefits. Decisions or actions such as investing, trading, proxy voting, exercising, waiving or amending rights or covenants, workout activity, or serving on a board, committee or other involvement in governance may result in conflicts of interest between clients holding different securities or investments. Generally, individual portfolio managers will seek to act in a manner that they
believe serves the best interest of the accounts they manage. In cases where a portfolio manager or team faces a conflict among its client accounts, it will seek to act in a manner that it believes best reflects its overall fiduciary duty, which may result in relative advantages or disadvantages for particular accounts.
Nuveen Asset Management has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
Item 8(a)(3). FUND MANAGER COMPENSATION
As of the most recently completed fiscal year end, the primary portfolio managers compensation is as follows:
Portfolio manager compensation consists primarily of base salary and variable components consisting of (i) a cash bonus; (ii) a long-term performance award; and (iii) participation in a profits interest plan.
Base salary. A portfolio manager’s base salary is determined based upon an analysis of the portfolio manager’s general performance, experience and market levels of base pay for such position.
Cash bonus. A portfolio manager is eligible to receive an annual cash bonus that is based on three variables: risk-adjusted investment performance relative to benchmark generally measured over the most recent three and five year periods (unless the portfolio manager’s tenure is shorter), ranking versus Morningstar peer funds generally measured over the most recent three and five year periods (unless the portfolio manager’s tenure is shorter), and management and peer reviews.
Long-term performance award. A portfolio manager is eligible to receive a long-term performance award that vests after three years. The amount of the award when granted is based on the same factors used in determining the cash bonus. The value of the award at the completion of the three-year vesting period is adjusted based on the risk-adjusted investment performance of Fund(s) managed by the portfolio manager during the vesting period and the performance of the TIAA organization as a whole.
Profits interest plan. Portfolio managers are eligible to receive profits interests in Nuveen Asset Management and its affiliate, Teachers Advisors, LLC, which vest over time and entitle their holders to a percentage of the firms’ annual profits. Profits interests are allocated to each portfolio manager based on such person’s overall contribution to the firms.
There are generally no differences between the methods used to determine compensation with respect to the Fund and the Other Accounts shown in the table above.
Item 8(a)(4). OWNERSHIP OF QQQX SECURITIES AS OF December 31, 2019
Name of Portfolio Manager |
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 |
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David Friar |
X | |||||||||||||||||||||||||
Jody Hrazanek |
X |
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15 (b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15 (b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/fund-governance and there were no amendments during the period covered by this report. (To view the code, click on 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.
(a)(4) Change in registrant’s independent public accountant. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the 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) Nuveen NASDAQ 100 Dynamic Overwrite Fund
By (Signature and Title) | /s/ Gifford R. Zimmerman |
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Gifford R. Zimmerman | ||||
Vice President and Secretary | ||||
Date: March 6, 2020 |
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/ Cedric H. Antosiewicz |
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Cedric H. Antosiewicz | ||||
Chief Administrative Officer | ||||
(principal executive officer) | ||||
Date: March 6, 2020 | ||||
By (Signature and Title) | /s/ E. Scott Wickerham |
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E. Scott Wickerham | ||||
Vice President and Controller | ||||
(principal financial officer) | ||||
Date: March 6, 2020 |