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 | 811-22970 |
Nuveen Dow 30SM 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: June 30, 2018
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Closed-End Funds
30 June 2018
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 |
Semiannual Report
IMPORTANT DISTRIBUTION NOTICE
for Shareholders of the Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)
Semi-Annual Shareholder Report for the period ending June 30, 2018
The Nuveen S&P 500 Dynamic Overwrite Fund and Nuveen Nasdaq 100 Dynamic Overwrite Fund seeks to offer attractive cash flow to its 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 Fund use to achieve this.
Each Fund pays quarterly common share distributions that seek to convert the Funds’ expected long-term total return potential into regular cash flow. As a result, the Funds’ regular common share distributions (presently $0.4200 and $0.2800 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 Funds’ 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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Chairman’s Letter to Shareholders
Dear Shareholders,
I am honored to serve as the new independent chairman of the Nuveen Fund Board, effective July 1, 2018. I’d like to gratefully acknowledge the stewardship of my predecessor William J. Schneider and, on behalf of my fellow Board members, reinforce our commitment to the legacy of strong, independent oversight of your Funds.
The increase in market volatility this year reflects greater uncertainty among investors. The global economic outlook is less clear cut than it was in 2017. U.S. growth is again decoupling from that of the rest of the world, and the U.S. dollar and interest rates have risen in response. Trade concern rhetoric and the imposition of tariffs between the U.S. and its major trading partners has recently dampened business sentiment and could pose a risk to growth expectations going forward. A host of other geopolitical concerns, including the ongoing Brexit and North American Free Trade Agreement negotiations, North Korea relations and rising populism around the world, remain on the horizon.
Despite these risks, global growth remains intact, albeit at a slower pace, providing support to corporate earnings. Fiscal stimulus, an easing regulatory environment and robust consumer spending recently helped boost the U.S. economy’s momentum. Subdued inflation pressures have kept central bank policy accommodative, even as Europe moves closer to winding down its monetary stimulus and the Federal Reserve remains on a moderate tightening course.
Headlines and political noise will continue to obscure underlying fundamentals at times and cause temporary bouts of volatility. We encourage you to work with your financial advisor to evaluate your goals, timeline and risk tolerance if short-term market fluctuations are a concern. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Terence J. Toth
Chairman of the Board
August 24, 2018
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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, LLC. Keith B. Hembre, CFA, and David Friar serve as portfolio managers for the Funds.
Effective 8/31/18 (subsequent to the close of the reporting period), Keith Hembre will no longer be a portfolio manager of DIAX, SPXX, QQQX and Jody I. Hrazanek will be added to the NAM portfolio management team.
Here the portfolio managers discuss their management strategies and the performance of the Funds for the six-month reporting period ended June 30, 2018.
What key strategies were used to manage the Funds during six-month reporting period ended June 30, 2018?
BXMX
BXMX seeks attractive total return with less volatility than the S&P 500® Index. During the six-month reporting period ended June 30, 2018, the Fund invested in an equity portfolio which sought to track the price movements 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. The portion of the Fund subject to the overwrite potentially forgoes some of its upside equity return in exchange for the cash premiums received for the written index call options. In addition, market declines are typically buffered by the amount of the cash premium BXMX receives. 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 options may reduce the Fund’s total return relative to the S&P 500® Index.
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This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, 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.
Portfolio Managers’ Comments (continued)
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 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® Index 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 six-month reporting period ended June 30, 2018?
The tables in the Performance Overview and Holding Summaries section of this report provide total return for the six-month, one-year, five-year and ten-year periods ended June 30, 2018. 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.
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For the six-month reporting period ended June 30, 2018, BXMX’s shares at NAV underperformed the CBOE S&P 500®BuyWrite Index (BXMSM) its primary index and 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.
BXMX
BXMX seeks attractive total return with less volatility than the S&P 500® Index. During the six-month reporting period ended June 30, 2018, the Fund invested in an equity portfolio which sought to track the price movements 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 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. This index call writing activity contributed positively to the Fund’s return in February and March 2018 when equity market returns were negative and in April 2018 when the equity market had a positive, but relatively low return. Additionally, index call writing provided effective risk reduction throughout the reporting period. Specifically, the Fund’s annualized standard deviation of daily returns for the reporting period was 11.65% as compared to 13.84% for the BXMSM and 16.71% for the S&P 500® Index. Despite strong performance in the second quarter of 2018 in which the Fund outperformed the BXMSM, underperformance in the first quarter resulted in overall Fund underperformance for the reporting period. The Fund’s underperformance relative to the BXMSM for the first quarter was primarily due to the equity market’s strong advance from February 8th to March 9th with the BXMSM nearly matching the return of the S&P 500® Index and outperforming the Fund’s. The January 26th through February 8th equity market correction that occurred prior to this advance resulted in the Fund and the BXMSM having different amounts of market exposure. The static approach of the BXMSM resulted in its written index call option being very far out-of-the money when the equity market began its recovery giving the BXMSM nearly full market exposure, while the Fund’s active approach gradually lowered the strike prices of its diversified portfolio of written call options as the market declined. This resulted in the Fund having less market exposure than the BXMSM when the market began its recovery and, thus, less participation in the market advance.
DIAX
DIAX seeks to dampen the beta (a measure of price volatility) of the overall portfolio by selling call options on a portion of the Fund’s underlying equity portfolio. 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.
The Fund’s equity portfolio had positive returns for the reporting period. It is important to note the relationship between the market’s implied volatility that is measured by the 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.
After nearly two years of near record low volatility, the market’s implied volatility, as measured by the VIX, came roaring back during the first quarter of 2018, but eased during the second quarter, averaging 16.6 with a range between 11.0 and 37.3. The rising volatility, combined with fluctuating equity markets and increased premiums for call options,
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Portfolio Managers’ Comments (continued)
created an active environment for option writing. We kept the Fund’s option overwrite level near that of the DIAX Blended Benchmark, which hindered performance during the reporting period. The option overwrite level ranged from 37% to 66%, but averaged 54% for the reporting period.
A contributor to the Fund’s underperformance was the steep drop in the Index on February 5, 2018, which declined 1600 points intra-day and ended the day down nearly 1,175 points, or approximately 4.6%. The Fund’s cash flow from premiums was not enough to offset the significant decline in the index and the Fund’s underlying equity portfolio. Since then, the Fund has rebounded, but not enough to overcome the steep one day drop.
During the reporting period, NAM remained very tactical with their trades. NAM did hold a few single-name options. Those held included options on a health care exchange-traded fund (ETF), utilities ETF and silver ETFs. These positions also contributed to performance. Options on the S&P 500® Index, the VIX, Russell 2000 ® Index, Nasdaq-100 Index and MSCI EAFE Index nominally contributed to performance.
SPXX
SPXX seeks to dampen the beta (a measure of price volatility) of the overall portfolio by selling call options on a portion of the Fund’s underlying equity portfolio. 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.
The Fund’s equity portfolio had positive returns for the reporting period. It is important to note the relationship between market’s implied volatility that is measured by the 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.
After nearly two years of near record low volatility, the market’s implied volatility, as measured by the VIX, came roaring back during the first quarter of 2018, but eased during the second quarter, averaging 16.6 with a range between 11.0 and 37.3. The rising volatility, combined with fluctuating equity markets and increased premiums for call options, created an active environment for option writing. We kept the Fund’s option overwrite level near that of the SPXX Blended Benchmark for the reporting period, which hindered performance. The option overwrite level ranged from 37% to 66%, but averaged 54% for the reporting period.
A contributor to the Fund’s underperformance was the steep drop in the Index on February 5, 2018, which closed the day down 113 points or approximately 4.1%. The Fund’s cash flow from premiums was not enough to offset the significant decline in the index and the Fund’s underlying equity portfolio. Since then, the Fund has rebounded, but not enough to overcome the steep one day drop.
NAM did hold a few single-name options. Those held included options on a health care exchange-traded fund (ETF), utilities ETF and silver ETFs. These positions also contributed to performance. Options on the S&P 500® Index, the VIX, Russell 2000 ® Index, Nasdaq-100 Index and MSCI EAFE Index nominally contributed to performance.
QQQX
QQQX seeks to dampen the beta (a measure of price volatility) of the overall portfolio by selling call options on a portion of the Fund’s underlying equity portfolio. 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.
8
The Fund’s equity portfolio had positive returns for the reporting period. It is important to note the relationship between market’s implied volatility that is measured by the 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.
After nearly two years of near record low volatility, the market’s implied volatility, as measured by the VIX, came roaring back during the first quarter of 2018, but eased during the second quarter, averaging 16.6 with a range between 11.0 and 37.3. The rising volatility, combined with fluctuating equity markets and increased premiums for call options, created an active environment for option writing. We kept the Fund’s option overwrite level near that of the QQQX Blended Benchmark for the reporting period, which hindered performance. The option overwrite level ranged from 37% to 66%, but averaged 54% for the reporting period.
A contributor to the Fund’s underperformance was the steep drop in the Index on February 5, 2018, which closed the day down 273 points or approximately 3.8%. The Fund’s cash flow from premiums was not enough to offset the significant decline in the index and the Fund’s underlying equity portfolio. Since then, the Fund has rebounded, but not enough to overcome the steep one day drop.
NAM did hold a few single-name options. Those held included options on a health care exchange-traded fund (ETF), utilities ETF and silver ETFs. These positions also contributed to performance. Options on the S&P 500® Index, the VIX, Russell 2000 ® Index, Nasdaq-100 Index, MSCI EAFE Index and MSCI Emerging Market Index nominally contributed to performance.
For the reporting period, the Fund’s equity portfolio had a less than 70% overlap with the Index due to its tax constraints. The tax rule that applies to the Fund is that the Index option sold must have less than 70% of its weight in names held by the underlying account for the premium collected to be taxed as capital gains. If it exceeds this limit, the premium is classified as ordinary income. This detracted from performance for the reporting period because the names in the Index not held by the Fund’s portfolio performed particularly well.
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DISTRIBUTION INFORMATION
The following information regarding each Fund’s distributions is current as of May 31, 2018, the date of the distribution data included within the Funds’ most recent distribution notice at the time this report was prepared. Each Fund’s distribution level may vary over time based on the Fund’s investment activities and portfolio investment value changes.
Each Fund has adopted a managed distribution program. The goal of a Fund’s managed distribution program is to provide shareholders relatively consistent and predictable cash flow by systematically converting its expected long-term return potential into regular distributions. As a result, regular distributions throughout the year will likely include a portion of expected long-term and/or short-term gains (both realized and unrealized), along with net investment income.
Important points to understand about Nuveen fund managed distributions are:
• | Each Fund seeks to establish a relatively stable common share distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about a Fund’s past or future investment performance from its current distribution rate. |
• | Actual share returns will differ from projected long-term returns (and therefore a Fund’s distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value. |
• | Each period’s distributions are expected to be paid from some or all of the following sources: |
• | net investment income consisting of regular interest and dividends, |
• | net realized gains from portfolio investments, and |
• | unrealized gains, or, in certain cases, a return of principal (non-taxable distributions). |
• | A non-taxable distribution is a payment of a portion of a Fund’s capital. When a Fund’s returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when the Fund’s returns fall short of distributions, it will represent a portion of your original principal unless the shortfall is offset during other time periods over the life of your investment (previous or subsequent) when the Fund’s total return exceeds distributions. |
• | Because distribution source estimates are updated throughout the current fiscal year based on a Fund’s performance, these estimates may differ from both the tax information reported to you in each Fund’s 1099 statement, as well as the ultimate economic sources of distributions over the life of your investment. |
The following table provides information regarding each Fund’s distributions and total return performance over various time periods. This information is intended to help you better understand whether each Fund’s returns for the specified time periods were sufficient to meet their distributions.
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DISTRIBUTION INFORMATION FOR BXMX AND DIAX
Data as of May 31, 2018
Per Share Distributions |
Annualized Total Return on NAV |
|||||||||||||||||||||||||||||||||||||||||||
Fund | Inception Date |
Quarterly | Monthly Equivalent |
Monthly Net Investment Income1 |
YTD Net Realized Gain/Loss2 |
Inception Unrealized Gain/Loss2 |
Current Distribution Rate on NAV3 |
1-Year | 5-Year | YTD | YTD Distribution Rate on NAV4 |
|||||||||||||||||||||||||||||||||
BXMX |
10/2004 | $ | 0.2450 | $ | 0.0817 | $ | 0.0110 | $ | (0.1797 | ) | $ | 6.9937 | 7.01 | % | 6.24 | % | 7.85 | % | (0.72 | )% | 3.50 | % | ||||||||||||||||||||||
DIAX |
04/2005 | $ | 0.3100 | $ | 0.1033 | $ | 0.0193 | $ | (0.1348 | ) | $ | 9.5806 | 6.70 | % | 13.77 | % | 9.99 | % | (1.20 | )% | 3.35 | % |
1 | Net investment income is expressed as a monthly amount using a six-month average. |
2 | These are approximations. Actual amounts may be more or less than amounts listed above. |
3 | Current distribution, annualized, expressed over the most recent month-end NAV. |
4 | Sum of year-to-date distributions expressed over the most recent month-end NAV. |
The following table provides estimates of the Fund’s distribution sources, reflecting year-to-date cumulative experience through the latest month-end. These estimates are for informational purposes only. The 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.
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year-end. More details about the Fund’s distributions and the basis for these estimates are available on www.nuveen.com/cef.
Data as of May 31, 2018
Current Quarter | Calendar YTD | |||||||||||||||||||||||||||||||
Estimated Source of Distribution | Estimated Per Share Amounts | |||||||||||||||||||||||||||||||
Fund | Per Share Distribution |
Net Investment Income1 |
Realized Gains |
Return of Capital2 |
Distributions3 | Net Investment Income1 |
Realized Gains |
Return of Capital2 |
||||||||||||||||||||||||
BXMX |
$ | 0.2450 | 14.3 | % | 0.0 | % | 85.7 | % | $ | 0.4900 | $ | 0.0698 | $ | — | $ | 0.4202 | ||||||||||||||||
DIAX |
$ | 0.3100 | 22.0 | % | 21.7 | % | 56.2 | % | $ | 0.6200 | $ | 0.1366 | $ | 0.1348 | $ | 0.3486 |
1 | Net investment income is a projection through the end of the current quarter based on the most recent month-end data. |
2 | 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. |
3 | Includes the most recent quarterly distribution declaration. |
DISTRIBUTION INFORMATION FOR SPXX AND QQQX
This notice provides shareholders with information regarding fund distributions, as required by current securities laws. You should not draw any conclusions about the Fund’s 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, although the Funds currently estimate that they have not 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 a Fund is paid back to you. A return of capital distribution does not necessarily reflect a Fund’s 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 each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
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Share Information (continued)
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 Fund’s distributions and the basis for these estimates are available on www.nuveen.com/cef.
The following table provides estimates of each Fund’s 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.
Data as of May 31, 2018
Estimated Per Share Sources of Distribution1 | Estimated Percentage of the Distribution | |||||||||||||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||||||||||
SPXX |
11/2005 | |||||||||||||||||||||||||||||||||||||||
Current Quarter |
$ | 0.2800 | $ | 0.0432 | $ | 0.2368 | $ | 0.0000 | $ | 0.0000 | 15.4 | % | 84.6 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||
Fiscal YTD |
$ | 0.5600 | $ | 0.0865 | $ | 0.4735 | $ | 0.0000 | $ | 0.0000 | 15.4 | % | 84.6 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||
QQQX |
01/2007 | |||||||||||||||||||||||||||||||||||||||
Current Quarter |
$ | 0.4200 | $ | 0.0174 | $ | 0.1773 | $ | 0.2253 | $ | 0.0000 | 4.1 | % | 42.2 | % | 53.7 | % | 0.0 | % | ||||||||||||||||||||||
Fiscal YTD |
$ | 0.8400 | $ | 0.0347 | $ | 0.3547 | $ | 0.4506 | $ | 0.0000 | 4.1 | % | 42.2 | % | 53.7 | % | 0.0 | % |
1 | Net investment income 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 Funds own REIT securities which attribute their distributions to various sources including net investment income, gains and return of capital. These estimated per share sources above include an allocation of the net investment income 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 May 31, 2018
Annualized | Cumulative | |||||||||||||||||||||||||||||||
Fund | Inception Date |
Quarterly Distribution |
Fiscal YTD Distribution |
Net Asset Value (NAV) |
5-Year Return on NAV |
Fiscal YTD Distribution Rate on NAV1 |
5-Year Return on NAV |
Fiscal YTD Distribution Rate on NAV1 |
||||||||||||||||||||||||
SPXX |
11/2005 | $0.2800 | $0.5600 | $16.38 | 8.43 | % | 6.84 | % | 1.25 | % | 3.42 | % | ||||||||||||||||||||
QQQX |
01/2007 | $0.4200 | $0.8400 | $23.62 | 15.24 | % | 7.11 | % | 5.41 | % | 3.56 | % |
1 | As a percentage of 5/31/2018 NAV. |
The Tax Cuts and Jobs Act
A large portion of the Fund’s portfolio holdings consist of Real Estate Investment Trusts (REITs). For tax years beginning after December 31, 2017, The Tax Cuts and Jobs Act generally would allow a non-corporate taxpayer a deduction of 20% of the investor’s domestic qualified business income received from certain pass-through entities, including REITs. However, Regulated Investment Companies (RICs) such as the Fund are not explicitly given the ability to pass the deduction through to their non-corporate shareholders. Treasury has been approached to provide RICs the ability to report a portion of their distributions as qualified business income eligible for the 20% deduction. However, until such relief is provided, non-corporate investors will not be able to receive the tax benefit that they would otherwise receive investing directly in the individual REIT securities.
12
EQUITY SHELF PROGRAMS
During the current reporting period, SPXX and QQQX were authorized by the Securities and Exchange Commission to issue additional shares through an equity shelf program (Shelf Offering). Under these programs, SPXX and QQQX, 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 share. The total amount of shares authorized under these Shelf Offerings are as shown in the accompanying table.
SPXX | QQQX | |||||||
Additional authorized shares |
1,600,000 | 3,700,000 |
During the current reporting period, the following Funds sold shares through their Shelf Offerings at a weighted average premium to their NAV per share as shown in the accompanying table.
SPXX | QQQX | |||||||
Shares sold through shelf offering |
145,078 | 17,500 | ||||||
Weighted average premium to NAV per share sold |
5.87 | % | 13.55 | % |
Refer to Notes to Financial Statements, Note 4 – Fund Shares, Equity Shelf Programs and Offering Costs for further details of Shelf Offerings and each Fund’s respective transactions.
SHARE REPURCHASES
During August 2018 (subsequent to the close of the reporting period), 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 shares.
As of June 30, 2018, and since the inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their outstanding shares as shown in the accompanying table.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Shares cumulatively repurchased and retired |
460,238 | 0 | 383,763 | 0 | ||||||||||||
Shares authorized for repurchase |
10,355,000 | 3,610,000 | 1,615,000 | 3,660,000 |
During the current reporting period, the Funds did not repurchase any of their outstanding shares.
OTHER SHARE INFORMATION
As of June 30, 2018, and during the current reporting period, the Funds’ share prices were trading at a premium/(discount) to their NAVs as shown in the accompanying table.
BXMX | DIAX | SPXX | QQQX | |||||||||||||
NAV |
$13.80 | $ | 18.04 | $ | 16.10 | $ | 23.03 | |||||||||
Share price |
$14.09 | $ | 18.48 | $ | 16.70 | $ | 26.18 | |||||||||
Premium/(Discount) to NAV |
2.10 | % | 2.44 | % | 3.73 | % | 13.68 | % | ||||||||
6-month average premium/(discount) to NAV |
(0.78 | )% | (0.76 | )% | 9.20 | % | 9.61 | % |
13
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.
14
BXMX | Nuveen S&P 500 Buy-Write Income Fund Performance Overview and Holding Summaries as of June 30, 2018 |
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 June 30, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
BXMX at NAV | (0.33)% | 5.99% | 8.06% | 6.36% | ||||||||||||
BXMX at Share Price | 2.45% | 8.86% | 10.17% | 8.42% | ||||||||||||
CBOE S&P 500® BuyWrite Index (BXMSM) | 1.78% | 7.28% | 8.14% | 5.71% | ||||||||||||
S&P 500® Index | 2.65% | 14.37% | 13.42% | 10.17% |
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.
Share Price Performance — Weekly Closing Price
15
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 | 99.4% | |||
Repurchase Agreements | 3.2% | |||
Other Assets Less Liabilities | (2.6)% | |||
Net Assets |
100% |
Top Five Issuers
(% of total long-term investments)
Apple, Inc. | 4.2% | |||
Microsoft Corporation | 3.4% | |||
Amazon.com, Inc. | 3.1% | |||
Facebook Inc., Class A | 2.3% | |||
Berkshire Hathaway Inc., Class B | 1.9% |
Portfolio Composition
(% of total investments)
16
DIAX | Nuveen Dow 30SM Dynamic Overwrite Fund Performance Overview and Holding Summaries as of June 30, 2018 |
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 June 30, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
DIAX at NAV | (2.00)% | 11.03% | 10.04% | 9.02% | ||||||||||||
DIAX at Share Price | 1.50% | 19.34% | 12.13% | 9.26% | ||||||||||||
Dow Jones Industrial Average (DJIA) | (0.73)% | 16.31% | 12.96% | 10.78% | ||||||||||||
DIAX Blended Benchmark | 0.38% | 11.90% | 9.07% | 8.20% |
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.
Share Price Performance — Weekly Closing Price
17
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.
18
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund Performance Overview and Holding Summaries as of June 30, 2018 |
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 June 30, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
SPXX at NAV | 1.25% | 9.47% | 8.59% | 6.86% | ||||||||||||
SPXX at Share Price | (0.24)% | 15.99% | 11.55% | 9.23% | ||||||||||||
S&P 500® Index | 2.65% | 14.37% | 13.42% | 10.17% | ||||||||||||
SPXX Blended Benchmark | 2.19% | 10.45% | 10.52% | 7.82% |
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.
Share Price Performance — Weekly Closing Price
19
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 | 98.9% | |||
Exchange-Traded Funds | 1.9% | |||
Repurchase Agreements | 1.1% | |||
Other Assets Less Liabilities | (1.9)% | |||
Net Assets | 100% |
Top Five Issuers
(% of total long-term investments)
Apple, Inc. | 3.9% | |||
Microsoft Corporation | 3.4% | |||
Amazon.com Inc. | 3.3% | |||
Facebook Inc., Class A | 2.2% | |||
JPMorgan Chase & Co. | 2.1% |
Portfolio Composition
(% of total investments)
20
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund Performance Overview and Holding Summaries as of June 30, 2018 |
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 June 30, 2018
Cumulative | Average Annual | |||||||||||||||
6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
QQQX at NAV | 4.65% | 17.05% | 15.63% | 12.01% | ||||||||||||
QQQX at Share Price | 11.89% | 28.91% | 18.99% | 14.90% | ||||||||||||
Nasdaq 100® Index | 10.65% | 26.01% | 20.80% | 15.62% | ||||||||||||
QQQX Blended Benchmark | 7.04% | 18.73% | 14.85% | 10.74% |
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.
Share Price Performance — Weekly Closing Price
21
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.
22
The annual meeting of shareholders was held in the offices of Nuveen on April 11, 2018 for BXMX, SPXX, DIAX and QQQX; at this meeting the shareholders were asked to elect Board Members.
BXMX | SPXX | DIAX | QQQX | |||||||||||||
Common Shares |
Common Shares |
Common Shares |
Common Shares |
|||||||||||||
Approval of the Board Members was reached as follows: |
||||||||||||||||
Margo L. Cook |
||||||||||||||||
For |
94,741,324 | 14,939,431 | 32,382,828 | 32,374,237 | ||||||||||||
Withhold |
1,686,470 | 205,072 | 771,814 | 643,582 | ||||||||||||
Total |
96,427,794 | 15,144,503 | 33,154,642 | 33,017,819 | ||||||||||||
Jack B. Evans |
||||||||||||||||
For |
93,110,213 | 14,903,826 | 32,358,956 | 32,302,844 | ||||||||||||
Withhold |
3,317,581 | 240,677 | 795,686 | 714,975 | ||||||||||||
Total |
96,427,794 | 15,144,503 | 33,154,642 | 33,017,819 | ||||||||||||
Albin F. Moschner |
||||||||||||||||
For |
94,687,982 | 14,910,407 | 32,238,079 | 32,256,439 | ||||||||||||
Withhold |
1,739,812 | 234,096 | 916,563 | 761,380 | ||||||||||||
Total |
96,427,794 | 15,144,503 | 33,154,642 | 33,017,819 | ||||||||||||
William J. Schneider |
||||||||||||||||
For |
93,145,160 | 14,923,130 | 32,364,931 | 32,293,855 | ||||||||||||
Withhold |
3,282,634 | 221,373 | 789,711 | 723,964 | ||||||||||||
Total |
96,427,794 | 15,144,503 | 33,154,642 | 33,017,819 |
23
BXMX | Nuveen S&P 500 Buy-Write
| |
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 99.4% |
||||||||||||||||
COMMON STOCKS – 99.4% (2) |
||||||||||||||||
Aerospace & Defense – 2.7% | ||||||||||||||||
50,341 | Arconic, Inc. |
$ | 856,300 | |||||||||||||
41,239 | Boeing Company |
13,836,097 | ||||||||||||||
8,874 | Huntington Ingalls Industries Inc. |
1,923,794 | ||||||||||||||
20,529 | Northrop Grumman Corporation |
6,316,773 | ||||||||||||||
36,057 | Raytheon Company |
6,965,491 | ||||||||||||||
63,296 | United Technologies Corporation |
7,913,899 | ||||||||||||||
Total Aerospace & Defense |
37,812,354 | |||||||||||||||
Air Freight & Logistics – 0.5% | ||||||||||||||||
66,528 | United Parcel Service, Inc., Class B |
7,067,269 | ||||||||||||||
Airlines – 0.3% | ||||||||||||||||
70,378 | United Continental Holdings Inc., (3) |
4,907,458 | ||||||||||||||
Auto Components – 0.1% | ||||||||||||||||
20,894 | Cooper Tire & Rubber Company |
549,512 | ||||||||||||||
67,376 | Gentex Corporation |
1,550,996 | ||||||||||||||
Total Auto Components |
2,100,508 | |||||||||||||||
Automobiles – 0.4% | ||||||||||||||||
324,831 | Ford Motor Company |
3,595,879 | ||||||||||||||
35,947 | Harley-Davidson, Inc. |
1,512,650 | ||||||||||||||
2,190 | Tesla Inc., (3) |
751,061 | ||||||||||||||
Total Automobiles |
5,859,590 | |||||||||||||||
Banks – 6.5% | ||||||||||||||||
671,300 | Bank of America Corporation |
18,923,947 | ||||||||||||||
182,533 | Citigroup Inc. |
12,215,108 | ||||||||||||||
43,122 | Comerica Incorporated |
3,920,652 | ||||||||||||||
76,490 | Fifth Third Bancorp. |
2,195,263 | ||||||||||||||
108,513 | First Horizon National Corporation |
1,935,872 | ||||||||||||||
245,988 | JPMorgan Chase & Co. |
25,631,950 | ||||||||||||||
20,320 | M&T Bank Corporation |
3,457,448 | ||||||||||||||
156,274 | U.S. Bancorp |
7,816,825 | ||||||||||||||
291,120 | Wells Fargo & Company |
16,139,693 | ||||||||||||||
Total Banks |
92,236,758 | |||||||||||||||
Beverages – 1.9% | ||||||||||||||||
257,560 | Coca-Cola Company |
11,296,582 | ||||||||||||||
51,957 | Monster Beverage Corporation, (3) |
2,977,136 | ||||||||||||||
115,876 | PepsiCo, Inc. |
12,615,420 | ||||||||||||||
Total Beverages |
26,889,138 | |||||||||||||||
Biotechnology – 3.1% | ||||||||||||||||
117,241 | AbbVie Inc. |
10,862,379 | ||||||||||||||
3,485 | Alnylam Pharmaceuticals, Inc., (3) |
343,238 | ||||||||||||||
60,381 | Amgen Inc. |
11,145,729 | ||||||||||||||
20,370 | Biogen Inc., (3) |
5,912,189 | ||||||||||||||
11,841 | BioMarin Pharmaceutical Inc., (3) |
1,115,422 | ||||||||||||||
74,331 | Celgene Corporation, (3) |
5,903,368 | ||||||||||||||
105,356 | Gilead Sciences, Inc. |
7,463,419 | ||||||||||||||
9,661 | Seattle Genetics, Inc., (3) |
641,394 |
24
Shares | Description (1) | Value | ||||||||||||||
Biotechnology (continued) | ||||||||||||||||
5,986 | Shire plc, ADR |
$ | 1,010,437 | |||||||||||||
Total Biotechnology |
44,397,575 | |||||||||||||||
Building Products – 0.4% | ||||||||||||||||
28,365 | Allegion PLC |
2,194,316 | ||||||||||||||
88,587 | Masco Corporation |
3,314,926 | ||||||||||||||
Total Building Products |
5,509,242 | |||||||||||||||
Capital Markets – 2.3% | ||||||||||||||||
118,312 | Charles Schwab Corporation |
6,045,743 | ||||||||||||||
31,680 | CME Group, Inc. |
5,192,986 | ||||||||||||||
28,291 | Eaton Vance Corporation |
1,476,507 | ||||||||||||||
32,519 | Goldman Sachs Group, Inc. |
7,172,716 | ||||||||||||||
73,621 | Intercontinental Exchange, Inc. |
5,414,825 | ||||||||||||||
31,797 | Legg Mason, Inc. |
1,104,310 | ||||||||||||||
126,664 | Morgan Stanley |
6,003,874 | ||||||||||||||
17,078 | Waddell & Reed Financial, Inc., Class A |
306,892 | ||||||||||||||
Total Capital Markets |
32,717,853 | |||||||||||||||
Chemicals – 1.5% | ||||||||||||||||
4,418 | AdvanSix, Inc., (3) |
161,831 | ||||||||||||||
11,094 | Chemours Company |
492,130 | ||||||||||||||
192,245 | DowDuPont, Inc. |
12,672,790 | ||||||||||||||
32,774 | Eastman Chemical Company |
3,276,089 | ||||||||||||||
25,424 | Olin Corporation |
730,177 | ||||||||||||||
80,712 | RPM International, Inc. |
4,707,124 | ||||||||||||||
Total Chemicals |
22,040,141 | |||||||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||||||||
14,145 | Deluxe Corporation |
936,540 | ||||||||||||||
26,475 | Pitney Bowes Inc. |
226,891 | ||||||||||||||
56,182 | Waste Management, Inc. |
4,569,844 | ||||||||||||||
Total Commercial Services & Supplies |
5,733,275 | |||||||||||||||
Communications Equipment – 1.3% | ||||||||||||||||
24,808 | Ciena Corporation, (3) |
657,660 | ||||||||||||||
328,765 | Cisco Systems, Inc. |
14,146,758 | ||||||||||||||
5,462 | Lumentum Holdings Inc., (3) |
316,250 | ||||||||||||||
21,003 | Motorola Solutions Inc. |
2,444,119 | ||||||||||||||
3,531 | Palo Alto Networks, Inc., (3) |
725,515 | ||||||||||||||
27,916 | Viavi Solutions Inc., (3) |
285,860 | ||||||||||||||
Total Communications Equipment |
18,576,162 | |||||||||||||||
Consumer Finance – 0.9% | ||||||||||||||||
70,454 | American Express Company |
6,904,492 | ||||||||||||||
60,037 | Discover Financial Services |
4,227,205 | ||||||||||||||
35,850 | Navient Corporation |
467,126 | ||||||||||||||
93,115 | SLM Corporation (3) |
1,066,167 | ||||||||||||||
Total Consumer Finance |
12,664,990 | |||||||||||||||
Containers & Packaging – 0.3% | ||||||||||||||||
20,788 | Avery Dennison Corporation |
2,122,455 | ||||||||||||||
21,019 | Packaging Corporation of America |
2,349,714 | ||||||||||||||
5,718 | Sonoco Products Company |
300,195 | ||||||||||||||
Total Containers & Packaging |
4,772,364 | |||||||||||||||
Distributors – 0.1% | ||||||||||||||||
20,796 | Genuine Parts Company |
1,908,865 | ||||||||||||||
Diversified Financial Services – 2.0% | ||||||||||||||||
142,972 | Berkshire Hathaway Inc., Class B, (3) |
26,685,724 |
25
BXMX | Nuveen S&P 500 Buy-Write Income Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Diversified Financial Services (continued) | ||||||||||||||||
53,398 | Jefferies Financial Group Inc. |
$ | 1,214,271 | |||||||||||||
Total Diversified Financial Services |
27,899,995 | |||||||||||||||
Diversified Telecommunication Services – 1.9% | ||||||||||||||||
390,223 | AT&T Inc. |
12,530,061 | ||||||||||||||
47,582 | CenturyLink Inc. |
886,928 | ||||||||||||||
269,870 | Verizon Communications Inc. |
13,577,160 | ||||||||||||||
Total Diversified Telecommunication Services |
26,994,149 | |||||||||||||||
Electric Utilities – 1.4% | ||||||||||||||||
72,631 | Duke Energy Corporation |
5,743,659 | ||||||||||||||
48,432 | Evergy Inc. |
2,719,457 | ||||||||||||||
57,526 | OGE Energy Corp. |
2,025,490 | ||||||||||||||
76,389 | Pinnacle West Capital Corporation |
6,153,898 | ||||||||||||||
79,367 | Southern Company |
3,675,486 | ||||||||||||||
Total Electric Utilities |
20,317,990 | |||||||||||||||
Electrical Equipment – 0.8% | ||||||||||||||||
36,128 | Eaton Corporation PLC |
2,700,207 | ||||||||||||||
59,195 | Emerson Electric Company |
4,092,742 | ||||||||||||||
11,240 | Hubbell Inc. |
1,188,518 | ||||||||||||||
19,742 | Rockwell Automation, Inc. |
3,281,713 | ||||||||||||||
Total Electrical Equipment |
11,263,180 | |||||||||||||||
Electronic Equipment, Instruments & Components – 0.2% | ||||||||||||||||
125,399 | Corning Incorporated |
3,449,726 | ||||||||||||||
Energy Equipment & Services – 0.9% | ||||||||||||||||
13,789 | Diamond Offshore Drilling, Inc. (3) |
287,639 | ||||||||||||||
99,917 | Halliburton Company |
4,502,260 | ||||||||||||||
45,801 | Patterson-UTI Energy, Inc. |
824,418 | ||||||||||||||
113,482 | Schlumberger Limited |
7,606,698 | ||||||||||||||
Total Energy Equipment & Services |
13,221,015 | |||||||||||||||
Equity Real Estate Investment Trusts – 2.3% | ||||||||||||||||
80,655 | Apartment Investment & Management Company, Class A |
3,411,706 | ||||||||||||||
109,496 | Brandywine Realty Trust |
1,848,292 | ||||||||||||||
34,687 | CBL & Associates Properties Inc. |
193,207 | ||||||||||||||
70,636 | CubeSmart |
2,275,892 | ||||||||||||||
80,911 | DCT Industrial Trust Inc. |
5,399,191 | ||||||||||||||
117,785 | Equity Commonwealth (3) |
3,710,227 | ||||||||||||||
68,970 | Healthcare Realty Trust, Inc. |
2,005,648 | ||||||||||||||
111,415 | Lexington Realty Trust |
972,653 | ||||||||||||||
55,742 | Liberty Property Trust |
2,471,043 | ||||||||||||||
11,918 | Sabra Health Care REIT Inc. |
258,978 | ||||||||||||||
26,716 | Senior Housing Properties Trust |
483,292 | ||||||||||||||
49,503 | Ventas Inc. |
2,819,196 | ||||||||||||||
58,810 | Welltower Inc. |
3,686,799 | ||||||||||||||
80,210 | Weyerhaeuser Company |
2,924,457 | ||||||||||||||
Total Equity Real Estate Investment Trusts |
32,460,581 | |||||||||||||||
Food & Staples Retailing – 1.2% | ||||||||||||||||
111,846 | Kroger Co. |
3,182,019 | ||||||||||||||
81,324 | Walgreens Boots Alliance Inc. |
4,880,660 | ||||||||||||||
101,024 | Wal-Mart, Inc. |
8,652,706 | ||||||||||||||
Total Food & Staples Retailing |
16,715,385 | |||||||||||||||
Food Products – 0.7% | ||||||||||||||||
42,672 | Lamb Weston Holdings, Inc. |
2,923,459 | ||||||||||||||
185,795 | Mondelez International Inc., Class A |
7,617,595 | ||||||||||||||
Total Food Products |
10,541,054 |
26
Shares | Description (1) | Value | ||||||||||||||
Gas Utilities – 0.2% | ||||||||||||||||
13,073 | Atmos Energy Corporation |
$ | 1,178,400 | |||||||||||||
23,200 | National Fuel Gas Company |
1,228,672 | ||||||||||||||
Total Gas Utilities |
2,407,072 | |||||||||||||||
Health Care Equipment & Supplies – 2.6% | ||||||||||||||||
138,570 | Abbott Laboratories |
8,451,384 | ||||||||||||||
64,582 | Baxter International, Inc. |
4,768,735 | ||||||||||||||
13,397 | Halyard Health Inc., (3) |
766,978 | ||||||||||||||
23,920 | Hill-Rom Holdings Inc. |
2,089,173 | ||||||||||||||
67,993 | Hologic Inc., (3) |
2,702,722 | ||||||||||||||
15,051 | Intuitive Surgical, Inc., (3) |
7,201,602 | ||||||||||||||
130,959 | Medtronic, PLC |
11,211,400 | ||||||||||||||
Total Health Care Equipment & Supplies |
37,191,994 | |||||||||||||||
Health Care Providers & Services – 3.3% | ||||||||||||||||
37,494 | Aetna Inc. |
6,880,149 | ||||||||||||||
25,973 | Anthem Inc. |
6,182,353 | ||||||||||||||
86,288 | CVS Health Corporation |
5,552,633 | ||||||||||||||
60,826 | Express Scripts Holding Company, (3) |
4,696,375 | ||||||||||||||
38,587 | HCA Healthcare Inc. |
3,959,026 | ||||||||||||||
39,932 | Henry Schein Inc., (3) |
2,900,660 | ||||||||||||||
71,270 | UnitedHealth Group Incorporated |
17,485,382 | ||||||||||||||
Total Health Care Providers & Services |
47,656,578 | |||||||||||||||
Health Care Technology – 0.2% | ||||||||||||||||
47,111 | Cerner Corporation, (3) |
2,816,767 | ||||||||||||||
Hotels, Restaurants & Leisure – 1.6% | ||||||||||||||||
51,356 | Carnival Corporation |
2,943,212 | ||||||||||||||
5,428 | Domino’s Pizza Inc. |
1,531,619 | ||||||||||||||
34,368 | ILG, Inc. |
1,135,175 | ||||||||||||||
3,590 | Las Vegas Sands Corporation |
274,132 | ||||||||||||||
32,679 | Marriott International, Inc., Class A |
4,137,161 | ||||||||||||||
72,444 | McDonald’s Corporation |
11,351,250 | ||||||||||||||
9,084 | Wynn Resorts Ltd |
1,520,117 | ||||||||||||||
Total Hotels, Restaurants & Leisure |
22,892,666 | |||||||||||||||
Household Durables – 0.5% | ||||||||||||||||
13,039 | Garmin Limited |
795,379 | ||||||||||||||
49,084 | KB Home |
1,337,048 | ||||||||||||||
54,363 | Newell Brands Inc. |
1,402,022 | ||||||||||||||
400 | NVR Inc., (3) |
1,188,140 | ||||||||||||||
15,291 | TopBuild Corporation, (3) |
1,197,897 | ||||||||||||||
11,087 | Whirlpool Corporation |
1,621,252 | ||||||||||||||
Total Household Durables |
7,541,738 | |||||||||||||||
Household Products – 1.5% | ||||||||||||||||
101,528 | Colgate-Palmolive Company |
6,580,030 | ||||||||||||||
181,042 | Procter & Gamble Company |
14,132,139 | ||||||||||||||
Total Household Products |
20,712,169 | |||||||||||||||
Industrial Conglomerates – 1.8% | ||||||||||||||||
47,999 | 3M Co. |
9,442,363 | ||||||||||||||
537,749 | General Electric Company |
7,318,764 | ||||||||||||||
65,868 | Honeywell International Inc. |
9,488,285 | ||||||||||||||
Total Industrial Conglomerates |
26,249,412 | |||||||||||||||
Insurance – 2.3% | ||||||||||||||||
50,492 | Allstate Corporation |
4,608,405 | ||||||||||||||
86,956 | American International Group, Inc. |
4,610,407 | ||||||||||||||
47,396 | Arthur J. Gallagher & Co. |
3,094,011 |
27
BXMX | Nuveen S&P 500 Buy-Write Income Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Insurance (continued) | ||||||||||||||||
40,755 | CNO Financial Group Inc. |
$ | 775,975 | |||||||||||||
26,175 | FNF Group |
984,703 | ||||||||||||||
65,958 | Genworth Financial Inc., Class A, (3) |
296,811 | ||||||||||||||
74,204 | Hartford Financial Services Group, Inc. |
3,794,051 | ||||||||||||||
2,764 | Kemper Corporation |
209,097 | ||||||||||||||
51,264 | Lincoln National Corporation |
3,191,184 | ||||||||||||||
73,231 | Marsh & McLennan Companies, Inc. |
6,002,745 | ||||||||||||||
41,075 | Travelers Companies, Inc. |
5,025,116 | ||||||||||||||
Total Insurance |
32,592,505 | |||||||||||||||
Internet and Direct Marketing Retail – 4.4% | ||||||||||||||||
26,053 | Amazon.com, Inc., (3) |
44,284,889 | ||||||||||||||
3,418 | Booking Holdings Inc., (3) |
6,928,594 | ||||||||||||||
29,411 | Netflix.com Inc., (3) |
11,512,348 | ||||||||||||||
11,216 | Qurate Retail Inc., (3) |
238,004 | ||||||||||||||
Total Internet and Direct Marketing Retail |
62,963,835 | |||||||||||||||
Internet Software & Services – 6.2% | ||||||||||||||||
26,791 | Akamai Technologies, Inc., (3) |
1,961,905 | ||||||||||||||
23,112 | Alphabet Inc., Class A, (3) |
26,097,839 | ||||||||||||||
17,079 | Alphabet Inc., Class C, (3) |
19,054,186 | ||||||||||||||
83,385 | eBay Inc., (3) |
3,023,540 | ||||||||||||||
169,390 | Facebook Inc., Class A, (3) |
32,915,865 | ||||||||||||||
10,286 | IAC/InterActiveCorp (3) |
1,568,512 | ||||||||||||||
26,317 | VeriSign, Inc., (3) |
3,616,482 | ||||||||||||||
Total Internet Software & Services |
88,238,329 | |||||||||||||||
IT Services – 3.5% | ||||||||||||||||
7,370 | Alliance Data Systems Corporation |
1,718,684 | ||||||||||||||
38,161 | Automatic Data Processing, Inc. |
5,118,917 | ||||||||||||||
9,010 | Black Knight, Inc., (3) |
482,485 | ||||||||||||||
21,471 | Broadridge Financial Solutions, Inc. |
2,471,312 | ||||||||||||||
46,407 | Fidelity National Information Services, Inc. |
4,920,534 | ||||||||||||||
58,645 | International Business Machines Corporation |
8,192,706 | ||||||||||||||
91,531 | PayPal Holdings, Inc., (3) |
7,621,786 | ||||||||||||||
148,696 | Visa Inc., Class A |
19,694,785 | ||||||||||||||
Total IT Services |
50,221,209 | |||||||||||||||
Leisure Products – 0.1% | ||||||||||||||||
40,361 | Mattel, Inc. |
662,728 | ||||||||||||||
7,753 | Polaris Industries Inc. |
947,262 | ||||||||||||||
Total Leisure Products |
1,609,990 | |||||||||||||||
Machinery – 1.9% | ||||||||||||||||
46,143 | Caterpillar Inc. |
6,260,221 | ||||||||||||||
20,180 | Cummins Inc. |
2,683,940 | ||||||||||||||
27,031 | Deere & Company |
3,778,934 | ||||||||||||||
33,165 | Graco Inc. |
1,499,721 | ||||||||||||||
21,850 | Hillenbrand Inc. |
1,030,227 | ||||||||||||||
33,984 | Ingersoll-Rand PLC |
3,049,384 | ||||||||||||||
16,893 | Parker Hannifin Corporation |
2,632,774 | ||||||||||||||
10,877 | Snap-on Incorporated |
1,748,151 | ||||||||||||||
24,818 | Stanley Black & Decker Inc. |
3,296,079 | ||||||||||||||
10,383 | Timken Company |
452,180 | ||||||||||||||
Total Machinery |
26,431,611 | |||||||||||||||
Media – 2.4% | ||||||||||||||||
51,987 | CBS Corporation, Class B |
2,922,709 | ||||||||||||||
355,115 | Comcast Corporation, Class A |
11,651,323 | ||||||||||||||
32,173 | DISH Network Corporation, Class A, (3) |
1,081,335 | ||||||||||||||
50,485 | New York Times Company (The), Class A |
1,307,561 | ||||||||||||||
90,019 | News Corporation, Class A |
1,395,295 | ||||||||||||||
40,559 | Omnicom Group, Inc. |
3,093,435 |
28
Shares | Description (1) | Value | ||||||||||||||
Media (continued) | ||||||||||||||||
126,999 | Walt Disney Company |
$ | 13,310,765 | |||||||||||||
Total Media |
34,762,423 | |||||||||||||||
Metals & Mining – 0.3% | ||||||||||||||||
24,264 | Barrick Gold Corporation |
318,586 | ||||||||||||||
53,920 | Newmont Mining Corporation |
2,033,323 | ||||||||||||||
27,776 | Nucor Corporation |
1,736,000 | ||||||||||||||
3,526 | Southern Copper Corporation |
165,264 | ||||||||||||||
Total Metals & Mining |
4,253,173 | |||||||||||||||
Mortgage Real Estate Investment Trusts – 0.0% | ||||||||||||||||
10,398 | Annaly Capital Management Inc. |
106,995 | ||||||||||||||
Multiline Retail – 0.6% | ||||||||||||||||
28,794 | Dollar Tree Inc., (3) |
2,447,490 | ||||||||||||||
30,302 | Macy’s, Inc. |
1,134,204 | ||||||||||||||
20,068 | Nordstrom, Inc. |
1,039,121 | ||||||||||||||
46,125 | Target Corporation |
3,511,035 | ||||||||||||||
Total Multiline Retail |
8,131,850 | |||||||||||||||
Multi-Utilities – 1.4% | ||||||||||||||||
54,853 | Ameren Corporation |
3,337,805 | ||||||||||||||
57,390 | Consolidated Edison, Inc. |
4,475,272 | ||||||||||||||
17,519 | NorthWestern Corporation |
1,002,963 | ||||||||||||||
87,538 | Public Service Enterprise Group Incorporated |
4,739,307 | ||||||||||||||
103,223 | WEC Energy Group, Inc. |
6,673,367 | ||||||||||||||
Total Multi-Utilities |
20,228,714 | |||||||||||||||
Oil, Gas & Consumable Fuels – 5.4% | ||||||||||||||||
56,617 | Cenovus Energy Inc. |
587,684 | ||||||||||||||
7,267 | Cheniere Energy Inc., (3) |
473,736 | ||||||||||||||
128,763 | Chevron Corporation |
16,279,506 | ||||||||||||||
123,285 | ConocoPhillips |
8,583,102 | ||||||||||||||
44,565 | CNX Resources Corporation, (3) |
792,366 | ||||||||||||||
3,556 | CONSOL Energy Inc., (3) |
136,373 | ||||||||||||||
41,570 | Continental Resources Inc., (3) |
2,692,073 | ||||||||||||||
130,219 | Encana Corporation |
1,699,358 | ||||||||||||||
278,131 | Exxon Mobil Corporation |
23,009,778 | ||||||||||||||
54,788 | Hess Corporation |
3,664,769 | ||||||||||||||
80,979 | Occidental Petroleum Corporation |
6,776,323 | ||||||||||||||
31,741 | ONEOK, Inc. |
2,216,474 | ||||||||||||||
51,298 | Phillips 66 |
5,761,278 | ||||||||||||||
5,635 | Suncor Energy, Inc. |
229,232 | ||||||||||||||
42,524 | Valero Energy Corporation |
4,712,935 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
77,614,987 | |||||||||||||||
Pharmaceuticals – 4.5% | ||||||||||||||||
24,807 | Allergan PLC |
4,135,823 | ||||||||||||||
114,169 | Bristol-Myers Squibb Company |
6,318,112 | ||||||||||||||
76,503 | Eli Lilly and Company |
6,528,001 | ||||||||||||||
178,541 | Johnson & Johnson |
21,664,165 | ||||||||||||||
183,791 | Merck & Co. Inc. |
11,156,114 | ||||||||||||||
407,766 | Pfizer Inc. |
14,793,750 | ||||||||||||||
Total Pharmaceuticals |
64,595,965 | |||||||||||||||
Professional Services – 0.1% | ||||||||||||||||
9,803 | ManpowerGroup Inc. |
843,646 | ||||||||||||||
Road & Rail – 0.9% | ||||||||||||||||
9,740 | Canadian Pacific Railway Limited |
1,782,615 | ||||||||||||||
49,980 | Norfolk Southern Corporation |
7,540,483 |
29
BXMX | Nuveen S&P 500 Buy-Write Income Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Road & Rail (continued) | ||||||||||||||||
23,216 | Old Dominion Freight Line, Inc. |
$ | 3,458,255 | |||||||||||||
Total Road & Rail |
12,781,353 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 4.1% | ||||||||||||||||
56,912 | Analog Devices, Inc. |
5,458,999 | ||||||||||||||
33,786 | Broadcom Inc. |
8,197,835 | ||||||||||||||
315,944 | Intel Corporation |
15,705,576 | ||||||||||||||
31,154 | Lam Research Corporation |
5,384,969 | ||||||||||||||
45,874 | Microchip Technology Incorporated |
4,172,240 | ||||||||||||||
44,646 | NVIDIA Corporation |
10,576,637 | ||||||||||||||
12,918 | NXP Semiconductors NV, (3) |
1,411,550 | ||||||||||||||
45,403 | ON Semiconductor Corporation, (3) |
1,009,536 | ||||||||||||||
110,103 | QUALCOMM, Inc. |
6,178,980 | ||||||||||||||
Total Semiconductors & Semiconductor Equipment |
58,096,322 | |||||||||||||||
Software – 6.5% | ||||||||||||||||
70,580 | Activision Blizzard Inc. |
5,386,666 | ||||||||||||||
47,875 | Adobe Systems Incorporated, (3) |
11,672,404 | ||||||||||||||
26,327 | Autodesk, Inc., (3) |
3,451,206 | ||||||||||||||
24,616 | CDK Global Inc. |
1,601,271 | ||||||||||||||
6,526 | Dell Technologies Inc., Class V, (3) |
551,969 | ||||||||||||||
493,436 | Microsoft Corporation |
48,657,724 | ||||||||||||||
225,796 | Oracle Corporation |
9,948,572 | ||||||||||||||
73,974 | salesforce.com, inc., (3) |
10,090,054 | ||||||||||||||
9,494 | ServiceNow Inc., (3) |
1,637,430 | ||||||||||||||
Total Software |
92,997,296 | |||||||||||||||
Specialty Retail – 2.7% | ||||||||||||||||
32,842 | American Eagle Outfitters, Inc. |
763,577 | ||||||||||||||
26,472 | Best Buy Co., Inc. |
1,974,282 | ||||||||||||||
26,410 | CarMax, Inc., (3) |
1,924,497 | ||||||||||||||
22,213 | Gap, Inc. |
719,479 | ||||||||||||||
83,604 | Home Depot, Inc. |
16,311,140 | ||||||||||||||
24,188 | L Brands Inc. |
892,053 | ||||||||||||||
67,148 | Lowe’s Companies, Inc. |
6,417,334 | ||||||||||||||
32,953 | Ross Stores, Inc. |
2,792,767 | ||||||||||||||
16,022 | Tiffany & Co. |
2,108,495 | ||||||||||||||
45,234 | TJX Companies, Inc. |
4,305,372 | ||||||||||||||
Total Specialty Retail |
38,208,996 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 4.6% | ||||||||||||||||
321,468 | Apple, Inc. |
59,506,941 | ||||||||||||||
152,670 | HP Inc. |
3,464,082 | ||||||||||||||
32,286 | NetApp, Inc. |
2,535,420 | ||||||||||||||
Total Technology Hardware, Storage & Peripherals |
65,506,443 | |||||||||||||||
Textiles, Apparel & Luxury Goods – 0.4% | ||||||||||||||||
10,340 | lululemon athletica inc., (3) |
1,290,949 | ||||||||||||||
56,389 | VF Corporation |
4,596,831 | ||||||||||||||
Total Textiles, Apparel & Luxury Goods |
5,887,780 | |||||||||||||||
Thrifts & Mortgage Finance – 0.1% | ||||||||||||||||
64,339 | MGIC Investment Corporation, (3) |
689,714 | ||||||||||||||
Tobacco – 1.2% | ||||||||||||||||
140,222 | Altria Group, Inc. |
7,963,207 | ||||||||||||||
105,991 | Philip Morris International |
8,557,713 | ||||||||||||||
22,323 | Vector Group Ltd. |
425,923 | ||||||||||||||
Total Tobacco |
16,946,843 |
30
Shares | Description (1) | Value | ||||||||||||||
Wireless Telecommunication Services – 0.0% | ||||||||||||||||
41,446 | Sprint Corporation, (3) |
$ | 225,466 | |||||||||||||
Total Long-Term Investments (cost $696,290,964) |
1,419,460,458 | |||||||||||||||
Principal Amount (000) |
Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 3.2% |
||||||||||||||||
REPURCHASE AGREEMENTS – 3.2% | ||||||||||||||||
$ | 46,194 | Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/18, repurchase price $46,197,483, collateralized by $49,165,000 U.S. Treasury Notes, 2.000%, due 2/15/25, value $47,120,523 |
0.900% | 7/02/18 | $ | 46,194,018 | ||||||||||
Total Short-Term Investments (cost $46,194,018) |
46,194,018 | |||||||||||||||
Total Investments (cost $742,484,982) – 102.6% |
1,465,654,476 | |||||||||||||||
Other Assets Less Liabilities – (2.6)% (4) |
(37,074,235 | ) | ||||||||||||||
Net Assets – 100% |
$ | 1,428,580,241 |
Investments in Derivatives
Options Written
Description (5) | Type | Number of Contracts |
Notional Amount (6) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||
S&P 500® Index | Call | (582 | ) | $ | (160,632,000 | ) | $ | 2,760 | 7/13/18 | $ | (474,330 | ) | ||||||||||
S&P 500® Index | Call | (572 | ) | (158,730,000 | ) | 2,775 | 7/20/18 | (431,860 | ) | |||||||||||||
S&P 500® Index | Call | (605 | ) | (163,350,000 | ) | 2,700 | 7/20/18 | (2,786,025 | ) | |||||||||||||
S&P 500® Index | Call | (577 | ) | (161,560,000 | ) | 2,800 | 7/20/18 | (163,003 | ) | |||||||||||||
S&P 500® Index | Call | (554 | ) | (150,965,000 | ) | 2,725 | 7/20/18 | (1,642,610 | ) | |||||||||||||
S&P 500® Index | Call | (581 | ) | (159,194,000 | ) | 2,740 | 7/27/18 | (1,536,745 | ) | |||||||||||||
S&P 500® Index | Call | (571 | ) | (158,452,500 | ) | 2,775 | 8/17/18 | (1,139,145 | ) | |||||||||||||
S&P 500® Index | Call | (583 | ) | (163,240,000 | ) | 2,800 | 8/17/18 | (658,790 | ) | |||||||||||||
S&P 500® Index | Call | (547 | ) | (147,690,000 | ) | 2,700 | 8/17/18 | (3,426,955 | ) | |||||||||||||
Total Options Written (premiums received $24,035,850) | (5,172 | ) | $ | (1,423,813,500 | ) | $ | (12,259,463 | ) |
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. |
(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. |
ADR | American Depositary Receipt. |
See accompanying notes to financial statements.
31
DIAX | Nuveen Dow 30SM
Dynamic
Portfolio of Investments June 30, 2018 | |
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||||||
LONG-TERM INVESTMENTS – 100.9% |
|
|||||||||||||||||||
COMMON STOCKS – 99.0% |
|
|||||||||||||||||||
Aerospace & Defense – 12.7% | ||||||||||||||||||||
180,000 | Boeing Company, (2) |
$ | 60,391,800 | |||||||||||||||||
180,000 | United Technologies Corporation, (2) |
22,505,400 | ||||||||||||||||||
Total Aerospace & Defense |
82,897,200 | |||||||||||||||||||
Banks – 2.9% | ||||||||||||||||||||
180,000 | JPMorgan Chase & Co. |
18,756,000 | ||||||||||||||||||
Beverages – 1.2% | ||||||||||||||||||||
180,000 | Coca-Cola Company |
7,894,800 | ||||||||||||||||||
Capital Markets – 6.1% | ||||||||||||||||||||
180,000 | Goldman Sachs Group, Inc. |
39,702,600 | ||||||||||||||||||
Chemicals – 1.8% | ||||||||||||||||||||
180,000 | DowDuPont, Inc. |
11,865,600 | ||||||||||||||||||
Communications Equipment – 1.2% | ||||||||||||||||||||
180,000 | Cisco Systems, Inc. |
7,745,400 | ||||||||||||||||||
Consumer Finance – 2.7% | ||||||||||||||||||||
180,000 | American Express Company, (2) |
17,640,000 | ||||||||||||||||||
Diversified Telecommunication Services – 1.4% | ||||||||||||||||||||
180,000 | Verizon Communications Inc., (2) |
9,055,800 | ||||||||||||||||||
Food & Staples Retailing – 4.0% | ||||||||||||||||||||
180,000 | Walgreens Boots Alliance Inc. |
10,802,700 | ||||||||||||||||||
180,000 | Wal-Mart, Inc., (2) |
15,417,000 | ||||||||||||||||||
Total Food & Staples Retailing |
26,219,700 | |||||||||||||||||||
Health Care Providers & Services – 6.8% | ||||||||||||||||||||
180,000 | UnitedHealth Group Inc., (2) |
44,161,200 | ||||||||||||||||||
Hotels, Restaurants & Leisure – 4.3% | ||||||||||||||||||||
180,000 | McDonald’s Corporation, (2) |
28,204,200 | ||||||||||||||||||
Household Products – 2.2% | ||||||||||||||||||||
180,000 | Procter & Gamble Company, (2) |
14,050,800 | ||||||||||||||||||
Industrial Conglomerates – 5.5% | ||||||||||||||||||||
180,000 | 3M Co., (2) |
35,409,600 | ||||||||||||||||||
Insurance – 3.4% | ||||||||||||||||||||
180,000 | Travelers Companies, Inc., (2) |
22,021,200 | ||||||||||||||||||
IT Services – 7.5% | ||||||||||||||||||||
180,000 | International Business Machines Corporation, (2) |
25,146,000 | ||||||||||||||||||
180,000 | Visa Inc., Class A, (2) |
23,841,000 | ||||||||||||||||||
Total IT Services |
48,987,000 |
32
Shares | Description (1) | Value | ||||||||||||||||||
Machinery – 3.8% | ||||||||||||||||||||
180,000 | Caterpillar Inc. |
$ | 24,420,600 | |||||||||||||||||
Media – 2.9% | ||||||||||||||||||||
180,000 | Walt Disney Company |
18,865,800 | ||||||||||||||||||
Oil, Gas & Consumable Fuels – 5.8% | ||||||||||||||||||||
180,000 | Chevron Corporation, (2) |
22,757,400 | ||||||||||||||||||
180,000 | Exxon Mobil Corporation |
14,891,400 | ||||||||||||||||||
Total Oil, Gas & Consumable Fuels |
37,648,800 | |||||||||||||||||||
Pharmaceuticals – 6.0% | ||||||||||||||||||||
180,000 | Johnson & Johnson |
21,841,200 | ||||||||||||||||||
180,000 | Merck & Co. Inc. |
10,926,000 | ||||||||||||||||||
180,000 | Pfizer Inc., (2) |
6,530,400 | ||||||||||||||||||
Total Pharmaceuticals |
39,297,600 | |||||||||||||||||||
Semiconductors & Semiconductor Equipment – 1.4% | ||||||||||||||||||||
180,000 | Intel Corporation |
8,947,800 | ||||||||||||||||||
Software – 2.7% | ||||||||||||||||||||
180,000 | Microsoft Corporation |
17,749,800 | ||||||||||||||||||
Specialty Retail – 5.4% | ||||||||||||||||||||
180,000 | Home Depot, Inc. |
35,118,000 | ||||||||||||||||||
Technology Hardware, Storage & Peripherals – 5.1% | ||||||||||||||||||||
180,000 | Apple, Inc., (2) |
33,319,800 | ||||||||||||||||||
Textiles, Apparel & Luxury Goods – 2.2% | ||||||||||||||||||||
180,000 | Nike, Inc., Class B |
14,342,400 | ||||||||||||||||||
Total Common Stocks (cost $307,191,290) |
644,321,700 | |||||||||||||||||||
Shares | Description (1), (3) | Value | ||||||||||||||||||
EXCHANGE-TRADED FUNDS – 1.9% |
||||||||||||||||||||
4,000 | SPDR® S&P 500® Trust ETF |
$ | 1,085,120 | |||||||||||||||||
81,000 | Vanguard Total Stock Market ETF |
11,374,830 | ||||||||||||||||||
Total Exchange-Traded Funds (cost $12,659,363) |
12,459,950 | |||||||||||||||||||
Total Long-Term Investments (cost $319,850,653) |
656,781,650 | |||||||||||||||||||
Principal Amount (000) |
Description (1) | Coupon | Maturity | Ratings (4) | Value | |||||||||||||||
SHORT-TERM INVESTMENTS – 1.0% |
||||||||||||||||||||
REPURCHASE AGREEMENTS – 0.2% | ||||||||||||||||||||
$ | 1,585 | Repurchase Agreement with Fixed Income Clearing
Corporation, |
0.900% | 7/02/18 | N/A | $ | 1,585,334 | |||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS – 0.8% | ||||||||||||||||||||
5,000 | U.S. Treasury Bills |
0.000% | 7/19/18 | N/R | 4,995,930 | |||||||||||||||
Total Short-Term Investments (cost $6,581,358) |
6,581,264 | |||||||||||||||||||
Total Investments (cost $326,432,011) – 101.9% |
663,362,914 | |||||||||||||||||||
Other Assets Less Liabilities – (1.9)% (5) |
(12,550,985 | ) | ||||||||||||||||||
Net Assets – 100% |
$ | 650,811,929 |
33
DIAX | Nuveen Dow 30SM Dynamic Overwrite Fund (continued) Portfolio of Investments June 30, 2018 | |
(Unaudited) |
Investments in Derivatives
Options Purchased
Description (6) | Type | Number of Contracts |
Notional Amount (7) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||
iShares Silver Trust | Call |
400 | $ | 600,000 | $ | 15 | 7/20/18 | $ | 12,600 | |||||||||||||
iShares U.S. Real Estate ETF | Put |
400 | 3,080,000 | 77 | 7/20/18 | 8,200 | ||||||||||||||||
Total Options Purchased (premiums paid $38,202) | 800 | $ | 3,680,000 | $ | 20,800 |
Options Written
Description (6) | Type | Number of Contracts |
Notional Amount (7) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||
S&P 500® Index | Call |
(815 | ) | $ | (226,162,500 | ) | $ | 2,775 | 7/20/18 | $ | (615,325 | ) | ||||||||||
S&P 500® Index | Call |
(500 | ) | (138,500,000 | ) | 2,770 | 7/20/18 | (447,500 | ) | |||||||||||||
Total Options Written (premiums received $3,974,770) | (1,315 | ) | $ | (364,662,500 | ) | $ | (1,062,825 | ) |
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. |
(2) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. |
(3) | A copy of the most recent financial statements for these exchange-traded funds can be obtained directly from the Securities and Exchange Commission or on its website http://www.sec.gov. |
(4) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(5) | 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. |
(6) | Exchange-traded, unless otherwise noted. |
(7) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100. |
N/A | Not applicable. |
See accompanying notes to financial statements.
34
SPXX | Nuveen S&P 500 Dynamic
Portfolio of Investments June 30, 2018 | |
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 100.8% |
||||||||||||||||
COMMON STOCKS – 98.9% |
||||||||||||||||
Aerospace & Defense – 2.7% | ||||||||||||||||
9,029 | Boeing Company |
$ | 3,029,320 | |||||||||||||
4,586 | Lockheed Martin Corporation |
1,354,842 | ||||||||||||||
6,482 | Raytheon Company |
1,252,193 | ||||||||||||||
12,389 | United Technologies Corporation, (2) |
1,548,997 | ||||||||||||||
Total Aerospace & Defense |
7,185,352 | |||||||||||||||
Air Freight & Logistics – 0.6% | ||||||||||||||||
15,294 | United Parcel Service, Inc., Class B |
1,624,682 | ||||||||||||||
Airlines – 0.3% | ||||||||||||||||
9,086 | Alaska Air Group, Inc. |
548,704 | ||||||||||||||
7,542 | JetBlue Airways Corporation, (3) |
143,147 | ||||||||||||||
Total Airlines |
691,851 | |||||||||||||||
Auto Components – 0.1% | ||||||||||||||||
8,062 | Cooper Tire & Rubber Company |
212,031 | ||||||||||||||
Automobiles – 0.3% | ||||||||||||||||
81,119 | Ford Motor Company, (2) |
897,987 | ||||||||||||||
Banks – 6.8% | ||||||||||||||||
122,906 | Bank of America Corporation, (2) |
3,464,720 | ||||||||||||||
31,389 | Citigroup Inc. |
2,100,552 | ||||||||||||||
12,885 | Comerica Incorporated |
1,171,504 | ||||||||||||||
13,028 | Fifth Third Bancorp. |
373,904 | ||||||||||||||
50,044 | Huntington BancShares Inc. |
738,649 | ||||||||||||||
52,383 | JPMorgan Chase & Co. |
5,458,309 | ||||||||||||||
34,317 | Regions Financial Corporation |
610,156 | ||||||||||||||
32,275 | U.S. Bancorp |
1,614,395 | ||||||||||||||
43,823 | Wells Fargo & Company |
2,429,547 | ||||||||||||||
Total Banks |
17,961,736 | |||||||||||||||
Beverages – 2.2% | ||||||||||||||||
7,182 | Brown-Forman Corporation |
351,990 | ||||||||||||||
59,211 | Coca-Cola Company, (2) |
2,596,994 | ||||||||||||||
25,275 | PepsiCo, Inc. |
2,751,689 | ||||||||||||||
Total Beverages |
5,700,673 | |||||||||||||||
Biotechnology – 2.3% | ||||||||||||||||
20,383 | AbbVie Inc. |
1,888,485 | ||||||||||||||
11,823 | Amgen Inc., (2) |
2,182,408 | ||||||||||||||
14,064 | Celgene Corporation, (3) |
1,116,963 | ||||||||||||||
12,943 | Gilead Sciences, Inc., (2) |
916,882 | ||||||||||||||
Total Biotechnology |
6,104,738 | |||||||||||||||
Capital Markets – 3.1% | ||||||||||||||||
24,052 | Charles Schwab Corporation |
1,229,057 | ||||||||||||||
8,042 | CME Group, Inc. |
1,318,245 | ||||||||||||||
16,320 | Federated Investors Inc. |
380,582 | ||||||||||||||
7,714 | Goldman Sachs Group, Inc. |
1,701,477 | ||||||||||||||
13,881 | Intercontinental Exchange, Inc. |
1,020,948 | ||||||||||||||
30,608 | Morgan Stanley |
1,450,819 |
35
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Capital Markets (continued) | ||||||||||||||||
8,152 | T. Rowe Price Group Inc. |
$ | 946,366 | |||||||||||||
Total Capital Markets |
8,047,494 | |||||||||||||||
Chemicals – 2.1% | ||||||||||||||||
37,452 | DowDuPont, Inc. |
2,468,836 | ||||||||||||||
8,959 | Eastman Chemical Company |
895,542 | ||||||||||||||
7,316 | Ecolab Inc. |
1,026,654 | ||||||||||||||
8,384 | Olin Corporation |
240,788 | ||||||||||||||
2,038 | Sherwin-Williams Company |
830,628 | ||||||||||||||
Total Chemicals |
5,462,448 | |||||||||||||||
Communications Equipment – 1.8% | ||||||||||||||||
79,492 | Cisco Systems, Inc., (2) |
3,420,541 | ||||||||||||||
2,038 | F5 Networks, Inc., (3) |
351,453 | ||||||||||||||
8,400 | Motorola Solutions Inc. |
977,508 | ||||||||||||||
Total Communications Equipment |
4,749,502 | |||||||||||||||
Consumer Finance – 0.6% | ||||||||||||||||
15,667 | American Express Company |
1,535,366 | ||||||||||||||
Containers & Packaging – 0.6% | ||||||||||||||||
9,305 | Avery Dennison Corporation |
950,041 | ||||||||||||||
10,192 | International Paper Company |
530,799 | ||||||||||||||
Total Containers & Packaging |
1,480,840 | |||||||||||||||
Diversified Financial Services – 1.3% | ||||||||||||||||
18,344 | Berkshire Hathaway Inc., Class B, (3) |
3,423,908 | ||||||||||||||
Diversified Telecommunication Services – 1.8% | ||||||||||||||||
76,842 | AT&T Inc., (2) |
2,467,397 | ||||||||||||||
44,842 | Verizon Communications Inc., (2) |
2,256,001 | ||||||||||||||
Total Diversified Telecommunication Services |
4,723,398 | |||||||||||||||
Electric Utilities – 0.7% | ||||||||||||||||
15,287 | Duke Energy Corporation |
1,208,896 | ||||||||||||||
3,596 | Evergy Inc. |
201,915 | ||||||||||||||
2,956 | IDACORP, INC |
272,661 | ||||||||||||||
6,523 | PNM Resources Inc. |
253,745 | ||||||||||||||
Total Electric Utilities |
1,937,217 | |||||||||||||||
Electrical Equipment – 1.0% | ||||||||||||||||
6,727 | Eaton Corporation PLC |
502,776 | ||||||||||||||
10,294 | Emerson Electric Company |
711,727 | ||||||||||||||
9,734 | nVent Electric PLC |
244,323 | ||||||||||||||
6,930 | Rockwell Automation, Inc. |
1,151,974 | ||||||||||||||
Total Electrical Equipment |
2,610,800 | |||||||||||||||
Electronic Equipment, Instruments & Components – 0.4% | ||||||||||||||||
36,145 | Corning Incorporated |
994,349 | ||||||||||||||
Energy Equipment & Services – 0.6% | ||||||||||||||||
6,931 | Diamond Offshore Drilling, Inc. (3) |
144,581 | ||||||||||||||
17,021 | Ensco PLC |
123,572 | ||||||||||||||
18,351 | Schlumberger Limited |
1,230,068 | ||||||||||||||
7,543 | Superior Energy Services, Inc. |
73,469 | ||||||||||||||
Total Energy Equipment & Services |
1,571,690 | |||||||||||||||
Equity Real Estate Investment Trusts – 1.2% | ||||||||||||||||
4,587 | Corporate Office Properties |
132,977 | ||||||||||||||
2,039 | CyrusOne Inc. |
118,996 |
36
Shares | Description (1) | Value | ||||||||||||||
Equity Real Estate Investment Trusts (continued) | ||||||||||||||||
3,669 | DCT Industrial Trust Inc. |
$ | 244,832 | |||||||||||||
4,587 | Douglas Emmett Inc. |
184,306 | ||||||||||||||
3,873 | Education Realty Trust Inc. |
160,730 | ||||||||||||||
2,956 | Entertainment Properties Trust |
191,519 | ||||||||||||||
5,198 | Healthcare Realty Trust, Inc. |
151,158 | ||||||||||||||
3,669 | JBG Smith Properties |
133,808 | ||||||||||||||
1,733 | Life Storage, Inc. |
168,638 | ||||||||||||||
3,873 | National Retail Properties, Inc. |
170,257 | ||||||||||||||
13,861 | Sabra Health Care REIT Inc. |
301,200 | ||||||||||||||
9,988 | Tanger Factory Outlet Centers |
234,618 | ||||||||||||||
3,466 | Taubman Centers Inc. |
203,662 | ||||||||||||||
3,669 | Uniti Group, Inc. |
73,490 | ||||||||||||||
6,319 | Urban Edge Properties |
144,516 | ||||||||||||||
19,467 | Washington Prime Group, Inc. |
157,877 | ||||||||||||||
8,969 | Weingarten Realty Trust |
276,335 | ||||||||||||||
Total Equity Real Estate Investment Trusts |
3,048,919 | |||||||||||||||
Food & Staples Retailing – 0.5% | ||||||||||||||||
15,899 | Wal-Mart, Inc. |
1,361,749 | ||||||||||||||
Food Products – 0.5% | ||||||||||||||||
14,268 | Archer-Daniels-Midland Company |
653,902 | ||||||||||||||
17,966 | ConAgra Foods, Inc. |
641,925 | ||||||||||||||
Total Food Products |
1,295,827 | |||||||||||||||
Health Care Equipment & Supplies – 2.5% | ||||||||||||||||
27,600 | Abbott Laboratories |
1,683,324 | ||||||||||||||
42,042 | Boston Scientific Corporation, (2), (3) |
1,374,773 | ||||||||||||||
2,587 | Intuitive Surgical, Inc., (3) |
1,237,828 | ||||||||||||||
25,478 | Medtronic, PLC |
2,181,172 | ||||||||||||||
Total Health Care Equipment & Supplies |
6,477,097 | |||||||||||||||
Health Care Providers & Services – 3.8% | ||||||||||||||||
1,631 | Acadia Healthcare Company Inc., (3) |
66,724 | ||||||||||||||
9,435 | Aetna Inc. |
1,731,322 | ||||||||||||||
4,736 | Anthem Inc. |
1,127,310 | ||||||||||||||
8,153 | CVS Health Corporation |
524,646 | ||||||||||||||
2,951 | Humana Inc. |
878,306 | ||||||||||||||
7,107 | Laboratory Corporation of America Holdings, (3) |
1,275,920 | ||||||||||||||
4,908 | McKesson HBOC Inc. |
654,727 | ||||||||||||||
3,466 | Tenet Healthcare Corporation, (3) |
116,354 | ||||||||||||||
14,063 | UnitedHealth Group Incorporated |
3,450,216 | ||||||||||||||
Total Health Care Providers & Services |
9,825,525 | |||||||||||||||
Hotels, Restaurants & Leisure – 1.8% | ||||||||||||||||
4,077 | Darden Restaurants, Inc. |
436,484 | ||||||||||||||
2,117 | Domino’s Pizza Inc. |
597,354 | ||||||||||||||
15,287 | McDonald’s Corporation |
2,395,320 | ||||||||||||||
28,136 | Starbucks Corporation |
1,374,444 | ||||||||||||||
Total Hotels, Restaurants & Leisure |
4,803,602 | |||||||||||||||
Household Durables – 0.5% | ||||||||||||||||
7,542 | KB Home |
205,444 | ||||||||||||||
13,110 | Newell Brands Inc. |
338,107 | ||||||||||||||
1,223 | Tempur Sealy International, Inc., (3) |
58,765 | ||||||||||||||
4,221 | Whirlpool Corporation |
617,237 | ||||||||||||||
Total Household Durables |
1,219,553 | |||||||||||||||
Household Products – 1.7% | ||||||||||||||||
17,564 | Colgate-Palmolive Company |
1,138,323 | ||||||||||||||
9,924 | Kimberly-Clark Corporation |
1,045,394 | ||||||||||||||
28,536 | Procter & Gamble Company |
2,227,520 | ||||||||||||||
Total Household Products |
4,411,237 |
37
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Industrial Conglomerates – 2.1% | ||||||||||||||||
10,602 | 3M Co. |
$ | 2,085,625 | |||||||||||||
94,043 | General Electric Company, (2) |
1,279,925 | ||||||||||||||
14,246 | Honeywell International Inc. |
2,052,136 | ||||||||||||||
Total Industrial Conglomerates |
5,417,686 | |||||||||||||||
Insurance – 2.3% | ||||||||||||||||
15,779 | Arthur J. Gallagher & Co. |
1,030,053 | ||||||||||||||
8,719 | FNF Group |
328,009 | ||||||||||||||
17,710 | Marsh & McLennan Companies, Inc. |
1,451,689 | ||||||||||||||
15,287 | MetLife, Inc. |
666,513 | ||||||||||||||
10,384 | Prudential Financial, Inc. |
971,008 | ||||||||||||||
1,733 | Reinsurance Group of America Inc. |
231,321 | ||||||||||||||
11,211 | Travelers Companies, Inc. |
1,371,554 | ||||||||||||||
Total Insurance |
6,050,147 | |||||||||||||||
Internet and Direct Marketing Retail – 4.9% | ||||||||||||||||
5,095 | Amazon.com, Inc., (3) |
8,660,481 | ||||||||||||||
805 | Booking Holdings Inc., (3) |
1,631,807 | ||||||||||||||
6,420 | NetFlix.com Inc., (3) |
2,512,981 | ||||||||||||||
Total Internet and Direct Marketing Retail |
12,805,269 | |||||||||||||||
Internet Software & Services – 6.1% | ||||||||||||||||
6,330 | Akamai Technologies, Inc., (3) |
463,546 | ||||||||||||||
2,980 | Alphabet Inc., Class A, (3) |
3,364,986 | ||||||||||||||
3,760 | Alphabet Inc., Class C, (3) |
4,194,844 | ||||||||||||||
2,760 | Cars.com Incorporated, (3) |
78,356 | ||||||||||||||
23,338 | eBay Inc., (3) |
846,236 | ||||||||||||||
30,573 | Facebook Inc., Class A, (2), (3) |
5,940,945 | ||||||||||||||
10,192 | Twitter Inc., (3) |
445,085 | ||||||||||||||
5,096 | VeriSign, Inc., (3) |
700,292 | ||||||||||||||
Total Internet Software & Services |
16,034,290 | |||||||||||||||
IT Services – 4.9% | ||||||||||||||||
2,674 | Black Knight, Inc., (3) |
143,193 | ||||||||||||||
2,625 | DXC Technology Company |
211,601 | ||||||||||||||
13,212 | Fidelity National Information Services, Inc. |
1,400,868 | ||||||||||||||
2,039 | Henry Jack and Associates, Inc. |
265,804 | ||||||||||||||
8,764 | International Business Machines Corporation, (2) |
1,224,331 | ||||||||||||||
19,567 | MasterCard, Inc. |
3,845,307 | ||||||||||||||
16,935 | PayPal Holdings, Inc., (3) |
1,410,177 | ||||||||||||||
1,312 | Perspecta Inc. |
26,962 | ||||||||||||||
32,918 | Visa Inc., Class A |
4,359,989 | ||||||||||||||
Total IT Services |
12,888,232 | |||||||||||||||
Life Sciences Tools & Services – 0.8% | ||||||||||||||||
2,021 | Bio-Techne Corporation |
299,007 | ||||||||||||||
8,842 | Thermo Fisher Scientific, Inc. |
1,831,532 | ||||||||||||||
Total Life Sciences Tools & Services |
2,130,539 | |||||||||||||||
Machinery – 2.3% | ||||||||||||||||
12,628 | Caterpillar Inc. |
1,713,241 | ||||||||||||||
4,127 | Cummins Inc. |
548,891 | ||||||||||||||
7,283 | Deere & Company |
1,018,163 | ||||||||||||||
10,032 | Illinois Tool Works, Inc., (2) |
1,389,833 | ||||||||||||||
9,734 | Pentair Limited |
409,607 | ||||||||||||||
3,364 | Snap-on Incorporated |
540,662 | ||||||||||||||
3,058 | Stanley Black & Decker Inc. |
406,133 | ||||||||||||||
Total Machinery |
6,026,530 | |||||||||||||||
Media – 2.1% | ||||||||||||||||
12,784 | CBS Corporation, Class B |
718,716 |
38
Shares | Description (1) | Value | ||||||||||||||
Media (continued) | ||||||||||||||||
77,342 | Comcast Corporation, Class A, (2) |
$ | 2,537,591 | |||||||||||||
8,283 | TEGNA Inc. |
89,871 | ||||||||||||||
20,383 | Walt Disney Company |
2,136,342 | ||||||||||||||
Total Media |
5,482,520 | |||||||||||||||
Metals & Mining – 0.3% | ||||||||||||||||
37,677 | Freeport-McMoRan, Inc. |
650,305 | ||||||||||||||
1,020 | Royal Gold, Inc. |
94,697 | ||||||||||||||
3,401 | Southern Copper Corporation |
159,405 | ||||||||||||||
Total Metals & Mining |
904,407 | |||||||||||||||
Multiline Retail – 0.4% | ||||||||||||||||
14,480 | Target Corporation |
1,102,218 | ||||||||||||||
Multi-Utilities – 0.4% | ||||||||||||||||
13,938 | Consolidated Edison, Inc. |
1,086,885 | ||||||||||||||
Oil, Gas & Consumable Fuels – 6.5% | ||||||||||||||||
10,451 | Anadarko Petroleum Corporation |
765,536 | ||||||||||||||
24,969 | Chevron Corporation, (2) |
3,156,831 | ||||||||||||||
22,168 | ConocoPhillips |
1,543,336 | ||||||||||||||
11,182 | EOG Resources, Inc. |
1,391,376 | ||||||||||||||
45,861 | Exxon Mobil Corporation, (2) |
3,794,081 | ||||||||||||||
5,607 | Gulfport Energy Corporation, (3) |
70,480 | ||||||||||||||
8,153 | Hess Corporation |
545,354 | ||||||||||||||
31,593 | Marathon Oil Corporation |
659,030 | ||||||||||||||
11,720 | Marathon Petroleum Corporation |
822,275 | ||||||||||||||
16,323 | Occidental Petroleum Corporation |
1,365,909 | ||||||||||||||
7,238 | ONEOK, Inc. |
505,430 | ||||||||||||||
9,481 | Phillips 66 |
1,064,811 | ||||||||||||||
8,969 | QEP Resources Inc. |
109,960 | ||||||||||||||
3,160 | SM Energy Company |
81,180 | ||||||||||||||
9,277 | Southwestern Energy Company, (3) |
49,168 | ||||||||||||||
9,740 | Valero Energy Corporation |
1,079,484 | ||||||||||||||
6,931 | WPX Energy Inc., (3) |
124,966 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
17,129,207 | |||||||||||||||
Pharmaceuticals – 4.3% | ||||||||||||||||
3,400 | Allergan PLC, (2) |
566,848 | ||||||||||||||
9,079 | Bristol-Myers Squibb Company |
502,432 | ||||||||||||||
15,185 | Eli Lilly and Company |
1,295,736 | ||||||||||||||
2,038 | Jazz Pharmaceuticals, Inc., (3) |
351,147 | ||||||||||||||
30,574 | Johnson & Johnson |
3,709,849 | ||||||||||||||
30,700 | Merck & Co. Inc. |
1,863,490 | ||||||||||||||
80,307 | Pfizer Inc., (2) |
2,913,538 | ||||||||||||||
Total Pharmaceuticals |
11,203,040 | |||||||||||||||
Real Estate Management & Development – 0.1% | ||||||||||||||||
1,937 | Jones Lang LaSalle Inc. |
321,523 | ||||||||||||||
Road & Rail – 0.9% | ||||||||||||||||
1,937 | Avis Budget Group Inc., (3) |
62,953 | ||||||||||||||
16,454 | Union Pacific Corporation, (2) |
2,331,203 | ||||||||||||||
Total Road & Rail |
2,394,156 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 4.4% | ||||||||||||||||
12,933 | Analog Devices, Inc. |
1,240,533 | ||||||||||||||
63,186 | Intel Corporation, (2) |
3,140,976 | ||||||||||||||
12,453 | Microchip Technology Incorporated |
1,132,600 | ||||||||||||||
9,391 | NVIDIA Corporation |
2,224,728 | ||||||||||||||
23,232 | QUALCOMM, Inc. |
1,303,780 | ||||||||||||||
22,201 | Texas Instruments Incorporated |
2,447,660 | ||||||||||||||
Total Semiconductors & Semiconductor Equipment |
11,490,277 |
39
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Software – 5.1% | ||||||||||||||||
7,134 | Autodesk, Inc., (3) |
$ | 935,196 | |||||||||||||
5,762 | CDK Global Inc. |
374,818 | ||||||||||||||
6,964 | Electronic Arts Inc., (3) |
982,063 | ||||||||||||||
91,721 | Microsoft Corporation, (2) |
9,044,608 | ||||||||||||||
35,975 | Oracle Corporation, (2) |
1,585,058 | ||||||||||||||
2,547 | ServiceNow Inc., (3) |
439,281 | ||||||||||||||
Total Software |
13,361,024 | |||||||||||||||
Specialty Retail – 3.2% | ||||||||||||||||
6,938 | Best Buy Co., Inc. |
517,436 | ||||||||||||||
6,013 | Dick’s Sporting Goods Inc. |
211,958 | ||||||||||||||
20,382 | Home Depot, Inc., (2) |
3,976,528 | ||||||||||||||
20,383 | Lowe’s Companies, Inc. |
1,948,003 | ||||||||||||||
5,020 | Tiffany & Co. |
660,632 | ||||||||||||||
11,178 | TJX Companies, Inc. |
1,063,922 | ||||||||||||||
2,956 | Urban Outfitters, Inc., (3) |
131,690 | ||||||||||||||
Total Specialty Retail |
8,510,169 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 3.9% | ||||||||||||||||
55,032 | Apple, Inc. |
10,186,974 | ||||||||||||||
Textiles, Apparel & Luxury Goods – 0.8% | ||||||||||||||||
11,720 | Nike, Inc., Class B |
933,850 | ||||||||||||||
16,106 | Under Armour Inc., Class C Shares, (3) |
339,514 | ||||||||||||||
10,754 | VF Corporation, (2) |
876,666 | ||||||||||||||
Total Textiles, Apparel & Luxury Goods |
2,150,030 | |||||||||||||||
Tobacco – 0.9% | ||||||||||||||||
20,383 | Altria Group, Inc. |
1,157,551 | ||||||||||||||
13,952 | Philip Morris International |
1,126,484 | ||||||||||||||
Total Tobacco |
2,284,035 | |||||||||||||||
Trading Companies & Distributors – 0.4% | ||||||||||||||||
3,682 | W.W. Grainger, Inc. |
1,135,529 | ||||||||||||||
Total Common Stocks (cost $136,087,083) |
259,454,258 | |||||||||||||||
Shares | Description (1), (4) | Value | ||||||||||||||
EXCHANGE-TRADED FUNDS – 1.9% | ||||||||||||||||
10,000 | iShares NASDAQ Biotechnology ETF |
$ | 1,098,200 | |||||||||||||
5,000 | SPDR® S&P 500® Trust ETF |
1,356,400 | ||||||||||||||
18,000 | Vanguard Total Stock Market ETF |
2,527,740 | ||||||||||||||
Total Exchange-Traded Funds (cost $4,959,149) |
4,982,340 | |||||||||||||||
Total Long-Term Investments (cost $141,046,232) |
264,436,598 | |||||||||||||||
Principal Amount (000) |
Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 1.1% | ||||||||||||||||
REPURCHASE AGREEMENTS – 1.1% | ||||||||||||||||
$ | 2,929 | Repurchase Agreement with Fixed Income Clearing
Corporation, |
0.900% | 7/02/18 | $ | 2,929,089 | ||||||||||
Total Short-Term Investments (cost $2,929,089) |
2,929,089 | |||||||||||||||
Total Investments (cost $143,975,321) – 101.9% |
267,365,687 | |||||||||||||||
Other Assets Less Liabilities – (1.9)% (5) |
(4,900,335 | ) | ||||||||||||||
Net Assets – 100% |
$ | 262,465,352 |
40
Investments in Derivatives
Options Purchased
Description (6) | Type | Number of Contracts |
Notional Amount (7) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||||
iShares Silver Trust |
Call | 200 | $ | 300,000 | $ | 15 | 7/20/18 | $ | 6,300 | |||||||||||||||
iShares U.S. Real Estate ETF |
Put | 200 | 1,540,000 | 77 | 7/20/18 | 4,100 | ||||||||||||||||||
Total Options Purchased (premiums paid $19,101) | 400 | $ | 1,840,000 | $ | 10,400 |
Options Written
Description (6) | Type | Number of Contracts |
Notional Amount (7) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||||
S&P 500® Index |
Call | (325 | ) | $ | (90,187,500 | ) | $ | 2,775 | 7/20/18 | $ | (245,375 | ) | ||||||||||||
S&P 500® Index |
Call | (200 | ) | (55,400,000 | ) | 2,770 | 7/20/18 | (179,000 | ) | |||||||||||||||
Total Options Written (premiums received $1,580,380) | (525 | ) | $ | (145,587,500 | ) | $ | (424,375 | ) |
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 in the Portfolio of Investments are based on net assets. |
(2) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. |
(3) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(4) | A copy of the most recent financial statements for these exchange-traded funds can be obtained directly from the Securities and Exchange Commission or on its website http://www.sec.gov. |
(5) | 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. |
(6) | Exchange-traded, unless otherwise noted. |
(7) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100. |
See accompanying notes to financial statements.
41
QQQX | Nuveen Nasdaq 100 Dynamic
Portfolio of Investments June 30, 2018 | |
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 102.1% |
||||||||||||||||
COMMON STOCKS – 98.4% |
||||||||||||||||
Air Freight & Logistics – 0.1% | ||||||||||||||||
2,768 | FedEx Corporation |
$ | 628,502 | |||||||||||||
Airlines – 0.4% | ||||||||||||||||
31,000 | Delta Air Lines, Inc. |
1,535,740 | ||||||||||||||
6,742 | Ryanair Holdings PLC, Sponsored ADR |
770,139 | ||||||||||||||
26,300 | Southwest Airlines Co. |
1,338,144 | ||||||||||||||
Total Airlines |
3,644,023 | |||||||||||||||
Auto Components – 0.2% | ||||||||||||||||
26,602 | American Axle and Manufacturing Holdings Inc. |
413,927 | ||||||||||||||
21,986 | Gentex Corporation |
506,118 | ||||||||||||||
4,227 | Lear Corporation |
785,419 | ||||||||||||||
Total Auto Components |
1,705,464 | |||||||||||||||
Automobiles – 1.0% | ||||||||||||||||
49,165 | Ford Motor Company |
544,257 | ||||||||||||||
23,900 | Tesla Inc., (2) |
8,196,505 | ||||||||||||||
Total Automobiles |
8,740,762 | |||||||||||||||
Banks – 0.1% | ||||||||||||||||
5,000 | JPMorgan Chase & Co. |
521,000 | ||||||||||||||
Beverages – 0.7% | ||||||||||||||||
22,798 | Brown-Forman Corporation |
1,117,330 | ||||||||||||||
91,000 | Monster Beverage Corporation, (2) |
5,214,300 | ||||||||||||||
Total Beverages |
6,331,630 | |||||||||||||||
Biotechnology – 7.6% | ||||||||||||||||
8,300 | Agios Pharmaceutical Inc., (2) |
699,109 | ||||||||||||||
14,052 | Alkermes PLC, (2) |
578,380 | ||||||||||||||
114,700 | Amgen Inc. |
21,172,473 | ||||||||||||||
28,366 | Biogen Inc., (2) |
8,232,948 | ||||||||||||||
125,700 | Celgene Corporation, (2), (3) |
9,983,094 | ||||||||||||||
206,900 | Gilead Sciences, Inc., (3) |
14,656,796 | ||||||||||||||
61,949 | Immunogen, Inc., (2) |
602,764 | ||||||||||||||
10,536 | Ionis Pharmaceuticals, Inc., (2) |
439,035 | ||||||||||||||
12,904 | Myriad Genetics Inc., (2) |
482,222 | ||||||||||||||
17,600 | Regeneron Pharmaceuticals, Inc., (2) |
6,071,824 | ||||||||||||||
12,177 | Seattle Genetics, Inc., (2) |
808,431 | ||||||||||||||
3,617 | United Therapeutics Corporation, (2) |
409,264 | ||||||||||||||
Total Biotechnology |
64,136,340 | |||||||||||||||
Capital Markets – 0.5% | ||||||||||||||||
9,902 | Moody’s Corporation |
1,688,885 | ||||||||||||||
24,475 | Morgan Stanley |
1,160,115 | ||||||||||||||
11,627 | SEI Investments Company |
726,920 | ||||||||||||||
7,303 | T. Rowe Price Group Inc. |
847,805 | ||||||||||||||
Total Capital Markets |
4,423,725 | |||||||||||||||
Chemicals – 0.2% | ||||||||||||||||
5,892 | Ecolab Inc. |
826,824 | ||||||||||||||
2,000 | Sherwin-Williams Company |
815,140 | ||||||||||||||
Total Chemicals |
1,641,964 |
42
Shares | Description (1) | Value | ||||||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||||||||
10,324 | Copart Inc., (2) |
$ | 583,925 | |||||||||||||
7,605 | KAR Auction Services Inc. |
416,754 | ||||||||||||||
15,000 | Tetra Tech, Inc. |
877,500 | ||||||||||||||
7,182 | Waste Connections Inc. |
540,661 | ||||||||||||||
9,417 | Waste Management, Inc. |
765,979 | ||||||||||||||
Total Commercial Services & Supplies |
3,184,819 | |||||||||||||||
Communications Equipment – 4.2% | ||||||||||||||||
810,000 | Cisco Systems, Inc., (3) |
34,854,300 | ||||||||||||||
5,000 | F5 Networks, Inc., (2) |
862,250 | ||||||||||||||
Total Communications Equipment |
35,716,550 | |||||||||||||||
Containers & Packaging – 0.1% | ||||||||||||||||
4,000 | Ball Corporation |
142,200 | ||||||||||||||
10,000 | International Paper Company |
520,800 | ||||||||||||||
Total Containers & Packaging |
663,000 | |||||||||||||||
Distributors – 0.2% | ||||||||||||||||
3,449 | Genuine Parts Company |
316,584 | ||||||||||||||
7,800 | Pool Corporation |
1,181,700 | ||||||||||||||
Total Distributors |
1,498,284 | |||||||||||||||
Diversified Consumer Services – 0.2% | ||||||||||||||||
43,200 | Service Corporation International |
1,546,128 | ||||||||||||||
Electrical Equipment – 0.2% | ||||||||||||||||
9,400 | Rockwell Automation, Inc. |
1,562,562 | ||||||||||||||
Electronic Equipment, Instruments & Components – 0.4% | ||||||||||||||||
12,148 | Amphenol Corporation, Class A |
1,058,698 | ||||||||||||||
3,675 | Arrow Electronics, Inc., (2) |
276,654 | ||||||||||||||
5,960 | Avnet Inc. |
255,624 | ||||||||||||||
30,310 | Corning Incorporated |
833,828 | ||||||||||||||
7,692 | Keysight Technologies, Inc., (2) |
454,059 | ||||||||||||||
13,756 | National Instruments Corporation |
577,477 | ||||||||||||||
Total Electronic Equipment, Instruments & Components |
3,456,340 | |||||||||||||||
Energy Equipment & Services – 0.1% | ||||||||||||||||
32,600 | Nabors Industries Inc. |
208,966 | ||||||||||||||
37,300 | Transocean Inc. |
501,312 | ||||||||||||||
Total Energy Equipment & Services |
710,278 | |||||||||||||||
Equity Real Estate Investment Trusts – 0.4% | ||||||||||||||||
18,413 | Apartment Investment & Management Company, Class A |
778,870 | ||||||||||||||
54,600 | CubeSmart |
1,759,212 | ||||||||||||||
29,800 | DDR Corp |
533,420 | ||||||||||||||
Total Equity Real Estate Investment Trusts |
3,071,502 | |||||||||||||||
Food & Staples Retailing – 0.3% | ||||||||||||||||
3,800 | Casey’s General Stores, Inc. |
399,304 | ||||||||||||||
25,300 | Kroger Co. |
719,785 | ||||||||||||||
8,700 | Sysco Corporation |
594,123 | ||||||||||||||
20,300 | US Foods Holding Corporation, (2) |
767,746 | ||||||||||||||
Total Food & Staples Retailing |
2,480,958 | |||||||||||||||
Food Products – 0.2% | ||||||||||||||||
15,200 | ConAgra Foods, Inc. |
543,096 | ||||||||||||||
5,300 | Hain Celestial Group Inc., (2) |
157,940 | ||||||||||||||
11,000 | Pilgrim’s Pride Corporation, (2) |
221,430 | ||||||||||||||
3,800 | Post Holdings Inc., (2) |
326,876 | ||||||||||||||
Total Food Products |
1,249,342 |
43
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Health Care Equipment & Supplies – 1.1% | ||||||||||||||||
68,600 | Abbott Laboratories |
$ | 4,183,914 | |||||||||||||
3,650 | Becton, Dickinson and Company, (3) |
874,394 | ||||||||||||||
16,000 | Danaher Corporation |
1,578,880 | ||||||||||||||
8,434 | Hill-Rom Holdings Inc. |
736,626 | ||||||||||||||
3,714 | Stryker Corporation, (3) |
627,146 | ||||||||||||||
11,100 | Zimmer Biomet Holdings, Inc., (3) |
1,236,984 | ||||||||||||||
Total Health Care Equipment & Supplies |
9,237,944 | |||||||||||||||
Health Care Providers & Services – 0.2% | ||||||||||||||||
4,093 | McKesson HBOC Inc., (3) |
546,006 | ||||||||||||||
7,946 | Universal Health Services, Inc., Class B |
885,502 | ||||||||||||||
Total Health Care Providers & Services |
1,431,508 | |||||||||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||||||||||
20,714 | Carnival Corporation |
1,187,119 | ||||||||||||||
10,000 | Darden Restaurants, Inc. |
1,070,600 | ||||||||||||||
3,000 | Domino’s Pizza Inc. |
846,510 | ||||||||||||||
29,200 | Restaurant Brands International Inc. |
1,760,760 | ||||||||||||||
Total Hotels, Restaurants & Leisure |
4,864,989 | |||||||||||||||
Household Durables – 0.1% | ||||||||||||||||
41,536 | KB Home |
1,131,441 | ||||||||||||||
Industrial Conglomerates – 0.1% | ||||||||||||||||
5,740 | Honeywell International Inc. |
826,847 | ||||||||||||||
Insurance – 0.2% | ||||||||||||||||
23,648 | FNF Group |
889,638 | ||||||||||||||
12,000 | Torchmark Corporation |
976,920 | ||||||||||||||
Total Insurance |
1,866,558 | |||||||||||||||
Internet and Direct Marketing Retail – 13.5% | ||||||||||||||||
57,000 | Amazon.com, Inc., (2) |
96,888,600 | ||||||||||||||
8,500 | Booking Holdings Inc., (2) |
17,230,265 | ||||||||||||||
Total Internet and Direct Marketing Retail |
114,118,865 | |||||||||||||||
Internet Software & Services – 18.2% | ||||||||||||||||
32,000 | Alphabet Inc., Class A, (2) |
36,134,080 | ||||||||||||||
33,000 | Alphabet Inc., Class C, (2), (3) |
36,816,450 | ||||||||||||||
43,000 | Baidu Inc., ADR, (2), (3) |
10,449,000 | ||||||||||||||
210,000 | eBay Inc., (2), (3) |
7,614,600 | ||||||||||||||
300,000 | Facebook Inc., Class A, (2), (3) |
58,296,000 | ||||||||||||||
17,600 | IAC/InterActiveCorp (2) |
2,683,824 | ||||||||||||||
4,807 | J2 Global Inc., (3) |
416,334 | ||||||||||||||
30,000 | Twitter Inc., (2) |
1,310,100 | ||||||||||||||
Total Internet Software & Services |
153,720,388 | |||||||||||||||
IT Services – 3.6% | ||||||||||||||||
7,251 | Black Knight, Inc., (2) |
388,291 | ||||||||||||||
12,340 | DXC Technology Company |
994,727 | ||||||||||||||
23,800 | Fidelity National Information Services |
2,523,514 | ||||||||||||||
19,208 | Genpact Limited |
555,687 | ||||||||||||||
16,316 | Global Payments Inc. |
1,819,071 | ||||||||||||||
45,000 | Henry Jack and Associates Inc. |
5,866,200 | ||||||||||||||
29,448 | Infosys Technologies Limited, Sponsored ADR |
572,175 | ||||||||||||||
5,008 | Leidos Holdings Inc. |
295,472 | ||||||||||||||
195,477 | PayPal Holdings, Inc., (2), (3) |
16,277,370 | ||||||||||||||
6,170 | Perspecta Inc. |
126,794 | ||||||||||||||
8,580 | Total System Services Inc. |
725,182 | ||||||||||||||
Total IT Services |
30,144,483 |
44
Shares | Description (1) | Value | ||||||||||||||
Life Sciences Tools & Services – 0.5% | ||||||||||||||||
58,000 | Agilent Technologies, Inc. |
$ | 3,586,720 | |||||||||||||
4,788 | Charles River Laboratories International, Inc., (2) |
537,501 | ||||||||||||||
Total Life Sciences Tools & Services |
4,124,221 | |||||||||||||||
Machinery – 0.2% | ||||||||||||||||
9,526 | Caterpillar Inc. |
1,292,392 | ||||||||||||||
8,005 | Fortive Corporation |
617,266 | ||||||||||||||
Total Machinery |
1,909,658 | |||||||||||||||
Media – 3.2% | ||||||||||||||||
4,900 | AMC Networks Inc., Class A Shares, (2) |
304,780 | ||||||||||||||
19,200 | CBS Corporation, Class B |
1,079,424 | ||||||||||||||
9,700 | Cinemark Holdings Inc. |
340,276 | ||||||||||||||
680,000 | Comcast Corporation, Class A, (3) |
22,310,800 | ||||||||||||||
66,088 | News Corporation, Class B |
1,047,495 | ||||||||||||||
79,632 | News Corporation, Class A |
1,234,296 | ||||||||||||||
6,836 | WPP Group PLC, Sponsored ADR |
537,173 | ||||||||||||||
Total Media |
26,854,244 | |||||||||||||||
Multiline Retail – 0.2% | ||||||||||||||||
63,700 | J.C. Penney Company, Inc. |
149,058 | ||||||||||||||
6,900 | Kohl’s Corporation |
503,010 | ||||||||||||||
10,100 | Target Corporation |
768,812 | ||||||||||||||
Total Multiline Retail |
1,420,880 | |||||||||||||||
Oil, Gas & Consumable Fuels – 0.5% | ||||||||||||||||
19,902 | Anadarko Petroleum Corporation |
1,457,821 | ||||||||||||||
11,800 | Antero Resources Corporation, (2) |
251,930 | ||||||||||||||
8,700 | Continental Resources Inc., (2) |
563,412 | ||||||||||||||
9,300 | Devon Energy Corporation |
408,828 | ||||||||||||||
23,900 | Marathon Oil Corporation |
498,554 | ||||||||||||||
11,300 | Noble Energy, Inc. |
398,664 | ||||||||||||||
25,700 | QEP Resources Inc. |
315,082 | ||||||||||||||
15,400 | Range Resources Corporation |
257,642 | ||||||||||||||
Total Oil, Gas & Consumable Fuels |
4,151,933 | |||||||||||||||
Pharmaceuticals – 0.1% | ||||||||||||||||
5,960 | Jazz Pharmaceuticals, Inc., (2) |
1,026,908 | ||||||||||||||
Professional Services – 0.3% | ||||||||||||||||
10,307 | IHS Markit Limited, (2) |
531,738 | ||||||||||||||
11,461 | ManpowerGroup Inc. |
986,334 | ||||||||||||||
19,598 | Robert Half International Inc. |
1,275,830 | ||||||||||||||
Total Professional Services |
2,793,902 | |||||||||||||||
Semiconductors & Semiconductor Equipment – 10.9% | ||||||||||||||||
92,000 | Analog Devices, Inc. |
8,824,640 | ||||||||||||||
313,316 | Applied Materials, Inc., (3) |
14,472,066 | ||||||||||||||
17,789 | Integrated Device Technology, Inc., (2) |
567,113 | ||||||||||||||
650,100 | Intel Corporation, (3) |
32,316,471 | ||||||||||||||
82,500 | NVIDIA Corporation |
19,544,250 | ||||||||||||||
27,886 | ON Semiconductor Corporation, (2) |
620,045 | ||||||||||||||
5,933 | Power Integrations Inc. |
433,406 | ||||||||||||||
236,000 | QUALCOMM, Inc., (3) |
13,244,320 | ||||||||||||||
10,146 | Silicon Laboratories Inc., (2) |
1,010,542 | ||||||||||||||
20,000 | Taiwan Semiconductor Manufacturing Company Limited, Sponsored ADR |
731,200 | ||||||||||||||
Total Semiconductors & Semiconductor Equipment |
91,764,053 | |||||||||||||||
Software – 13.4% | ||||||||||||||||
18,000 | Ansys Inc., (2) |
3,135,240 | ||||||||||||||
54,000 | Autodesk, Inc., (2) |
7,078,860 |
45
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued) | |
Portfolio of Investments June 30, 2018 | ||
(Unaudited) |
Shares | Description (1) | Value | ||||||||||||||
Software (continued) | ||||||||||||||||
11,986 | CDK Global Inc. |
$ | 779,689 | |||||||||||||
16,040 | Imperva Incorporated, (2) |
773,930 | ||||||||||||||
940,000 | Microsoft Corporation, (3) |
92,693,400 | ||||||||||||||
1,584 | Microstrategy Inc., (2), (3) |
202,356 | ||||||||||||||
22,224 | Open Text Corporation |
782,063 | ||||||||||||||
40,000 | Oracle Corporation |
1,762,400 | ||||||||||||||
12,402 | Parametric Technology Corporation, (2) |
1,163,432 | ||||||||||||||
16,000 | Red Hat, Inc., (2) |
2,149,920 | ||||||||||||||
7,500 | ServiceNow Inc., (2) |
1,293,525 | ||||||||||||||
76,447 | Snap Incorporated, (2) |
1,000,691 | ||||||||||||||
Total Software |
112,815,506 | |||||||||||||||
Specialty Retail – 0.7% | ||||||||||||||||
14,900 | Aaron Rents Inc. |
647,405 | ||||||||||||||
4,472 | Advance Auto Parts, Inc. |
606,850 | ||||||||||||||
800 | AutoZone, Inc., (2) |
536,744 | ||||||||||||||
16,500 | Bed Bath and Beyond Inc. |
328,763 | ||||||||||||||
20,000 | CarMax, Inc., (2) |
1,457,400 | ||||||||||||||
17,540 | Dick’s Sporting Goods Inc. |
618,285 | ||||||||||||||
9,300 | Foot Locker, Inc. |
489,645 | ||||||||||||||
14,500 | Michaels Cos Inc., (2) |
277,965 | ||||||||||||||
14,000 | Sally Beauty Holdings Inc., (2) |
224,420 | ||||||||||||||
17,800 | Urban Outfitters, Inc., (2) |
792,990 | ||||||||||||||
Total Specialty Retail |
5,980,467 | |||||||||||||||
Technology Hardware, Storage & Peripherals – 12.8% | ||||||||||||||||
578,000 | Apple, Inc., (3) |
106,993,580 | ||||||||||||||
19,045 | Hewlett Packard Enterprise Co |
278,247 | ||||||||||||||
8,000 | NetApp, Inc. |
628,240 | ||||||||||||||
Total Technology Hardware, Storage & Peripherals |
107,900,067 | |||||||||||||||
Textiles, Apparel & Luxury Goods – 0.4% | ||||||||||||||||
7,396 | PVH Corporation |
1,107,329 | ||||||||||||||
3,800 | Ralph Lauren Corporation |
477,736 | ||||||||||||||
17,800 | Skechers USA Inc., (2) |
534,178 | ||||||||||||||
26,889 | Under Armour Inc., Class C Shares, (2) |
566,820 | ||||||||||||||
42,700 | Under Armour, Inc., (2) |
959,896 | ||||||||||||||
Total Textiles, Apparel & Luxury Goods |
3,645,959 | |||||||||||||||
Wireless Telecommunication Services – 0.1% | ||||||||||||||||
28,600 | Sprint Corporation, (2) |
155,584 | ||||||||||||||
19,244 | Telephone and Data Systems Inc. |
527,670 | ||||||||||||||
13,012 | United States Cellular Corporation, (2) |
481,964 | ||||||||||||||
Total Wireless Telecommunication Services |
1,165,218 | |||||||||||||||
Total Common Stocks (cost $272,750,742) |
829,809,212 | |||||||||||||||
Shares | Description (1), (4) | Value | ||||||||||||||
EXCHANGE-TRADED FUNDS – 3.7% | ||||||||||||||||
77,000 | iShares Nasdaq Biotechnology ETF |
$ | 8,456,140 | |||||||||||||
166,000 | Vanguard Total Stock Market ETF |
23,311,380 | ||||||||||||||
Total Exchange-Traded Funds (cost $31,676,743) |
31,767,520 | |||||||||||||||
Total Long-Term Investments (cost $304,427,485) |
861,576,732 |
46
Principal Amount (000) |
Description (1) | Coupon | Maturity | Value | ||||||||||||
SHORT-TERM INVESTMENTS – 0.0% |
||||||||||||||||
REPURCHASE AGREEMENTS – 0.0% | ||||||||||||||||
$ | 301 | Repurchase Agreement with Fixed Income Clearing
Corporation, |
0.900% | 7/02/18 | $ | 301,363 | ||||||||||
Total Short-Term Investments (cost $301,363) |
301,363 | |||||||||||||||
Total Investments (cost $304,728,848) – 102.1% |
861,878,095 | |||||||||||||||
Other Assets Less Liabilities – (2.1)% (5) |
(17,460,699 | ) | ||||||||||||||
Net Assets – 100% |
$ | 844,417,396 |
Investments in Derivatives
Options Purchased
Description (6) | Type | Number of Contracts |
Notional Amount (7) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||
iShares Silver Trust | Call |
400 | $ | 600,000 | $ | 15 | 7/20/18 | $ | 12,600 | |||||||||||||
iShares U.S. Real Estate ETF | Put |
400 | 3,080,000 | 77 | 7/20/18 | 8,200 | ||||||||||||||||
Total Options Purchased (premiums paid $38,202) | 800 | $ | 3,680,000 | $ | 20,800 |
Options Written
Description (6) | Type | Number of Contracts |
Notional Amount (7) |
Exercise Price |
Expiration Date |
Value | ||||||||||||||||
Nasdaq 100® Index | Call |
(570 | ) | $ | (413,250,000 | ) | $ | 7,250 | 7/20/18 | $ | (2,020,650 | ) | ||||||||||
Nasdaq 100® Index | Call |
(85 | ) | (61,837,500 | ) | 7,275 | 7/20/18 | (243,100 | ) | |||||||||||||
Total Options Written (premiums received $7,529,974) | (655 | ) | $ | (475,087,500 | ) | $ | (2,263,750 | ) |
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. |
(2) | Non-income producing; issuer has not declared a dividend within the past twelve months. |
(3) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. |
(4) | A copy of the most recent financial statements for these exchange-traded funds can be obtained directly from the Securities and Exchange Commission or on its website http://www.sec.gov. |
(5) | 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. |
(6) | Exchange-traded, unless otherwise noted. |
(7) | For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100. |
ADR | American Depositary Receipt. |
See accompanying notes to financial statements.
47
Statement of Assets and Liabilities
June 30, 2018
(Unaudited)
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Assets |
||||||||||||||||
Long-term investments, at value (cost $696,290,964, $319,850,653, $141,046,232 and $304,427,485, respectively) |
$ | 1,419,460,458 | $ | 656,781,650 | $ | 264,436,598 | $ | 861,576,732 | ||||||||
Short-term investments, at value ($46,194,018, $6,581,358, $2,929,089 and $301,363, respectively) |
46,194,018 | 6,581,264 | 2,929,089 | 301,363 | ||||||||||||
Cash |
24,736 | — | — | 15,424 | ||||||||||||
Options purchased, at value (premiums paid $—, $38,202, $19,101 and $38,202, respectively) |
— | 20,800 | 10,400 | 20,800 | ||||||||||||
Receivable for: |
||||||||||||||||
Dividends |
1,166,698 | 240,079 | 192,227 | 168,515 | ||||||||||||
Interest |
2,310 | 79 | 146 | 15 | ||||||||||||
Investments sold |
— | — | — | 1,863,187 | ||||||||||||
Reclaims |
— | — | — | 329 | ||||||||||||
Shares sold |
— | — | 89,925 | 452,674 | ||||||||||||
Deferred offering costs |
— | — | 146,137 | — | ||||||||||||
Other assets |
249,718 | 36,428 | 40,020 | 79,210 | ||||||||||||
Total assets |
1,467,097,938 | 663,660,300 | 267,844,542 | 864,478,249 | ||||||||||||
Liabilities |
||||||||||||||||
Options written, at value (premiums received $24,035,850, $3,974,770, $1,580,380 and $7,529,974, respectively) |
12,259,463 | 1,062,825 | 424,375 | 2,263,750 | ||||||||||||
Payable for: |
||||||||||||||||
Dividends |
24,481,160 | 11,007,530 | 4,460,954 | 14,968,831 | ||||||||||||
Investments purchased |
— | — | — | 1,872,632 | ||||||||||||
Accrued expenses: |
||||||||||||||||
Management fees |
993,242 | 468,211 | 179,081 | 596,968 | ||||||||||||
Trustees fees |
243,680 | 35,146 | 37,839 | 84,125 | ||||||||||||
Shelf offering costs |
— | — | 160,000 | — | ||||||||||||
Other |
540,152 | 274,659 | 116,941 | 274,547 | ||||||||||||
Total liabilities |
38,517,697 | 12,848,371 | 5,379,190 | 20,060,853 | ||||||||||||
Net assets |
$ | 1,428,580,241 | $ | 650,811,929 | $ | 262,465,352 | $ | 844,417,396 | ||||||||
Shares outstanding |
103,554,549 | 36,085,350 | 16,304,618 | 36,661,625 | ||||||||||||
Net asset value (“NAV”) per share outstanding |
$ | 13.80 | $ | 18.04 | $ | 16.10 | $ | 23.03 | ||||||||
Net assets consist of: |
||||||||||||||||
Shares, $0.01 par value per share |
$ | 1,035,545 | $ | 360,854 | $ | 163,046 | $ | 366,616 | ||||||||
Paid-in surplus |
763,081,870 | 332,919,710 | 148,094,399 | 308,371,153 | ||||||||||||
Undistributed (Over-distribution of) net investment income |
(43,821,337 | ) | (17,990,465 | ) | (7,779,289 | ) | (30,227,126 | ) | ||||||||
Accumulated net realized gain (loss) |
(26,661,754 | ) | (4,303,616 | ) | (2,550,474 | ) | 3,508,684 | |||||||||
Net unrealized appreciation (depreciation) |
734,945,917 | 339,825,446 | 124,537,670 | 562,398,069 | ||||||||||||
Net assets |
$ | 1,428,580,241 | $ | 650,811,929 | $ | 262,465,352 | $ | 844,417,396 | ||||||||
Authorized shares |
Unlimited | Unlimited | Unlimited | Unlimited |
See accompanying notes to financial statements.
48
Six Months Ended June 30, 2018
(Unaudited)
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Investment Income |
||||||||||||||||
Dividends |
$ | 13,317,606 | $ | 7,460,572 | $ | 2,470,237 | $ | 4,471,157 | ||||||||
Foreign tax withheld on dividend income |
(3,728 | ) | — | — | (10,840 | ) | ||||||||||
Interest |
119,779 | 42,354 | 3,914 | 9,041 | ||||||||||||
Total investment income |
13,433,657 | 7,502,926 | 2,474,151 | 4,469,358 | ||||||||||||
Expenses |
||||||||||||||||
Management fees |
6,004,999 | 2,861,054 | 1,076,291 | 3,557,828 | ||||||||||||
Custodian fees |
70,028 | 36,619 | 25,786 | 47,856 | ||||||||||||
Trustees fees |
17,035 | 8,219 | 3,160 | 10,390 | ||||||||||||
Professional fees |
40,220 | 28,828 | 23,256 | 30,679 | ||||||||||||
Shareholder reporting expenses |
110,064 | 47,494 | 23,972 | 77,086 | ||||||||||||
Shareholder servicing agent fees |
677 | 227 | 78 | 283 | ||||||||||||
Stock exchange listing fees |
14,256 | 4,967 | 3,358 | — | ||||||||||||
Investor relations expenses |
117,815 | 52,264 | 21,179 | 67,082 | ||||||||||||
Other |
138,171 | 80,802 | 28,078 | 131,593 | ||||||||||||
Total expenses |
6,513,265 | 3,120,474 | 1,205,158 | 3,922,797 | ||||||||||||
Net investment income (loss) |
6,920,392 | 4,382,452 | 1,268,993 | 546,561 | ||||||||||||
Realized and Unrealized Gain (Loss) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments and foreign currency |
40,155,629 | 16,566,398 | 11,508,556 | 59,148,220 | ||||||||||||
Options purchased |
— | 160,092 | 69,162 | 125,665 | ||||||||||||
Options written |
(55,386,230 | ) | (10,131,697 | ) | (3,881,066 | ) | (40,743,530 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||
Investments and foreign currency |
(15,818,912 | ) | (27,520,263 | ) | (6,964,367 | ) | 17,429,522 | |||||||||
Options purchased |
— | 1,510 | 755 | 1,510 | ||||||||||||
Options written |
17,447,747 | 2,147,181 | 845,613 | 1,316,407 | ||||||||||||
Net realized and unrealized gain (loss) |
(13,601,766 | ) | (18,776,779 | ) | 1,578,653 | 37,277,794 | ||||||||||
Net increase (decrease) in net assets from operations |
$ | (6,681,374 | ) | $ | (14,394,327 | ) | $ | 2,847,646 | $ | 37,824,355 |
See accompanying notes to financial statements.
49
Statement of Changes in Net Assets
(Unaudited)
BXMX | DIAX | |||||||||||||||
Six Months Ended 6/30/18 |
Year |
Six Months Ended 6/30/18 |
Year |
|||||||||||||
Operations |
||||||||||||||||
Net investment income (loss) |
$ | 6,920,392 | $ | 16,209,183 | $ | 4,382,452 | $ | 9,311,808 | ||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments and foreign currency |
40,155,629 | 89,274,302 | 16,566,398 | 27,135,983 | ||||||||||||
Options purchased |
— | — | 160,092 | (99,286 | ) | |||||||||||
Options written |
(55,386,230 | ) | (103,033,365 | ) | (10,131,697 | ) | (24,033,896 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||
Investments and foreign currency |
(15,818,912 | ) | 181,708,801 | (27,520,263 | ) | 117,436,071 | ||||||||||
Options purchased |
— | — | 1,510 | (18,912 | ) | |||||||||||
Options written |
17,447,747 | (3,370,050 | ) | 2,147,181 | (1,082,222 | ) | ||||||||||
Net increase (decrease) in net assets from operations |
(6,681,374 | ) | 180,788,871 | (14,394,327 | ) | 128,649,546 | ||||||||||
Distributions to Shareholders |
||||||||||||||||
From and in excess of net investment income |
(50,741,729 | ) | — | (22,372,917 | ) | — | ||||||||||
From net investment income |
— | (16,033,153 | ) | — | (9,224,043 | ) | ||||||||||
From accumulated net realized gains |
— | — | — | — | ||||||||||||
Return of capital |
— | (78,615,705 | ) | — | (29,062,514 | ) | ||||||||||
Decrease in net assets from distributions to shareholders |
(50,741,729 | ) | (94,648,858 | ) | (22,372,917 | ) | (38,286,557 | ) | ||||||||
Capital Share Transactions |
||||||||||||||||
Proceeds from shelf offering |
— | — | — | — | ||||||||||||
Proceeds from shares issued to shareholders to reinvestment of distributions |
— | — | — | — | ||||||||||||
Increase in net assets from capital share transactions |
— | — | — | — | ||||||||||||
Net increase (decrease) in net assets |
(57,423,103 | ) | 86,140,013 | (36,767,244 | ) | 90,362,989 | ||||||||||
Net assets at the beginning of period |
1,486,003,344 | 1,399,863,331 | 687,579,173 | 597,216,184 | ||||||||||||
Net assets at the end of period |
$ | 1,428,580,241 | $ | 1,486,003,344 | $ | 650,811,929 | $ | 687,579,173 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period |
$ | (43,821,337 | ) | $ | — | $ | (17,990,465 | ) | $ | — |
See accompanying notes to financial statements.
50
SPXX | QQQX | |||||||||||||||
Six Months Ended 6/30/18 |
Year Ended 12/31/17 |
Six Months Ended 6/30/18 |
Year Ended 12/31/17 |
|||||||||||||
Operations |
||||||||||||||||
Net investment income (loss) |
$ | 1,268,993 | $ | 3,011,853 | $ | 546,561 | $ | 1,322,508 | ||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments and foreign currency |
11,508,556 | 12,006,073 | 59,148,220 | 69,815,738 | ||||||||||||
Options purchased |
69,162 | (48,818 | ) | 125,665 | (96,536 | ) | ||||||||||
Options written |
(3,881,066 | ) | (9,881,969 | ) | (40,743,530 | ) | (50,862,476 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: |
||||||||||||||||
Investments and foreign currency |
(6,964,367 | ) | 35,334,907 | 17,429,522 | 151,119,627 | |||||||||||
Options purchased |
755 | (9,456 | ) | 1,510 | (18,912 | ) | ||||||||||
Options written |
845,613 | (439,624 | ) | 1,316,407 | 739,291 | |||||||||||
Net increase (decrease) in net assets from operations |
2,847,646 | 39,972,966 | 37,824,355 | 172,019,240 | ||||||||||||
Distributions to Shareholders |
||||||||||||||||
From and in excess of net investment income |
(9,048,282 | ) | — | (30,773,687 | ) | — | ||||||||||
From net investment income |
— | (2,959,348 | ) | — | (1,398,915 | ) | ||||||||||
From accumulated net realized gains |
— | — | — | (18,260,334 | ) | |||||||||||
Return of capital |
— | (12,950,942 | ) | — | (33,027,683 | ) | ||||||||||
Decrease in net assets from distributions to shareholders |
(9,048,282 | ) | (15,910,290 | ) | (30,773,687 | ) | (52,686,932 | ) | ||||||||
Capital Share Transactions |
||||||||||||||||
Proceeds from shelf offering |
2,486,059 | — | 452,674 | — | ||||||||||||
Proceeds from shares issued to shareholders to reinvestment of distributions |
114,535 | — | 753,140 | 993,258 | ||||||||||||
Increase in net assets from capital share transactions |
2,600,594 | — | 1,205,814 | 993,258 | ||||||||||||
Net increase (decrease) in net assets |
(3,600,042 | ) | 24,062,676 | 8,256,482 | 120,325,566 | |||||||||||
Net assets at the beginning of period |
266,065,394 | 242,002,718 | 836,160,914 | 715,835,348 | ||||||||||||
Net assets at the end of period |
$ | 262,465,352 | $ | 266,065,394 | $ | 844,417,396 | $ | 836,160,914 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period |
$ | (7,779,289 | ) | $ | — | $ | (30,227,126 | ) | $ | — |
See accompanying notes to financial statements.
51
(Unaudited)
Selected data for a share outstanding throughout each period:
Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||||||||||||
Beginning 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 | Premium from Shares Sold through Shelf Offering |
Ending NAV |
Ending Share Price |
||||||||||||||||||||||||||||||||||
BXMX |
| |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||
2018(d) |
$ | 14.35 | $ | 0.07 | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.49 | )**** | $ | — | $ | — | $ | (0.49 | ) | $ | — | $ | 13.80 | $ | 14.09 | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
2014 |
13.81 | 0.17 | 0.67 | 0.84 | (0.19 | ) | — | (0.81 | ) | (1.00 | ) | — | 13.65 | 12.11 | ||||||||||||||||||||||||||||||
2013 |
13.13 | 0.20 | 1.56 | 1.76 | (0.20 | ) | — | (0.88 | ) | (1.08 | ) | — | 13.81 | 12.55 | ||||||||||||||||||||||||||||||
DIAX |
| |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||
2018(d) |
19.05 | 0.12 | (0.51 | ) | (0.39 | ) | (0.62 | )**** | — | — | (0.62 | ) | — | 18.04 | 18.48 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
2014 |
16.62 | 0.18 | 1.09 | 1.27 | (0.22 | ) | (0.09 | ) | (0.75 | ) | (1.06 | ) | — | 16.83 | 15.42 | |||||||||||||||||||||||||||||
2013 |
14.34 | 0.22 | 3.12 | 3.34 | (0.54 | ) | (0.43 | ) | (0.09 | ) | (1.06 | ) | — | 16.62 | 15.57 | |||||||||||||||||||||||||||||
SPXX |
| |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||
2018(d) |
16.47 | 0.07 | 0.11 | 0.18 | (0.56 | )**** | — | — | (0.56 | ) | 0.01 | 16.10 | 16.70 | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
2014 |
15.68 | 0.19 | 0.78 | 0.97 | (0.19 | ) | — | (0.85 | ) | (1.04 | ) | — | 15.61 | 14.30 | ||||||||||||||||||||||||||||||
2013 |
14.36 | 0.22 | 2.22 | 2.44 | (0.22 | ) | — | (0.90 | ) | (1.12 | ) | — | 15.68 | 14.12 | ||||||||||||||||||||||||||||||
QQQX |
| |||||||||||||||||||||||||||||||||||||||||||
Year Ended 12/31: |
| |||||||||||||||||||||||||||||||||||||||||||
2018(d) |
22.84 | 0.02 | 1.01 | 1.03 | (0.84 | )**** | — | — | (0.84 | ) | — | ** | 23.03 | 26.18 | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
2014 |
18.54 | 0.06 | 2.62 | 2.68 | (0.07 | ) | (0.48 | ) | (0.81 | ) | (1.36 | ) | — | 19.86 | 19.25 | |||||||||||||||||||||||||||||
2013 |
15.17 | 0.07 | 4.51 | 4.58 | (0.07 | ) | — | (1.14 | ) | (1.21 | ) | — | 18.54 | 17.80 |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total Return Based on NAV is the combination of changes in NAV, reinvested dividend income at 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 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.
52
Ratios/Supplemental Data | ||||||||||||||||||||||
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) |
|||||||||||||||||
(0.33 | )% | 2.45 | % | $ | 1,428,580 | 0.91 | %*** | 0.96 | %*** | 1 | % | |||||||||||
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 | |||||||||||||||||
6.20 | 4.31 | 1,413,549 | 1.02 | 1.21 | 14 | |||||||||||||||||
13.85 | 15.53 | 531,112 | 0.96 | 1.48 | — | * | ||||||||||||||||
(2.00 | ) | 1.50 | 650,812 | 0.93 | *** | 1.31 | *** | 6 | ||||||||||||||
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 | |||||||||||||||||
7.93 | 5.89 | 607,309 | 1.12 | 1.08 | 6 | |||||||||||||||||
23.93 | 26.09 | 199,699 | 1.01 | 1.42 | 21 | |||||||||||||||||
1.25 | (0.24 | ) | 262,465 | 0.92 | *** | 0.97 | *** | 12 | ||||||||||||||
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 | |||||||||||||||||
6.37 | 8.88 | 252,080 | 0.96 | 1.23 | 8 | |||||||||||||||||
17.47 | 18.32 | 253,216 | 0.96 | 1.43 | 1 | |||||||||||||||||
4.65 | 11.89 | 844,417 | 0.93 | *** | 0.13 | *** | 10 | |||||||||||||||
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 | |||||||||||||||||
14.94 | 16.12 | 726,282 | 1.00 | 0.32 | 17 | |||||||||||||||||
31.30 | 27.04 | 343,130 | 1.00 | 0.44 | 9 |
(c) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
(d) | For the six months ended June 30, 2018. |
* | Rounds to less than 1%. |
** | Rounds to less than $0.01 per share. |
*** | Annualized. |
**** | Represents distributions paid “From and in excess of net investment income” for the six months ended June 30, 2018 (as described in Note 1 – General Information and Significant Accounting Policies, Dividends and Distributions to Shareholders). |
See accompanying notes to financial statements.
53
(Unaudited)
1. General Information and Significant Accounting Policies
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, 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 June 30, 2018, and the period covered by these Notes to Financial Statements is the six months ended June 30, 2018 (the “current fiscal period”).
Investment 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.
Investment Objectives and Principal Investment Strategies
BXMX’s investment objective is to seek attractive total return with less volatility than the S&P 500 Index. The Fund invests its managed assets in a diversified equity portfolio that seeks to substantially replicate price movements of the S&P 500 Buy-Write Index (BXM). The Fund also uses an index option strategy of writing (selling) index call options in seeking to moderate the volatility of returns relative to an all equity portfolio.
DIAX’s investment objective is to seek attractive total return with less volatility than the Dow Jones Industrial AverageSM (“DJIA”). The Fund pursues its investment strategy by emphasizing single name options on individual stocks in the DJIA, as well as a range of options including index options on the DJIA and other broad-based indexes and options on custom baskets of stocks in addition to exchange-traded funds (ETFs). The Fund uses a dynamic call option overwrite strategy within a range of approximately 35% to 75%, with a long-run target of 55% overwrite of the value of the Fund’s equity portfolio, in seeking to enhance the portfolio’s risk-adjusted returns.
SPXX’s investment objective is to seek attractive total returns with less volatility than the S&P 500® Index. The Fund pursues its investment strategy by emphasizing index call options on the S&P 500® Index, as well as a range of options including index options on other broad-based indexes and options on custom baskets of stocks in addition to exchange-traded funds (ETFs). The Fund uses a dynamic call option overwrite strategy within a range of approximately 35% to 75%, with a long-run target of 55% overwrite of the value of the Fund’s equity portfolio, in seeking to enhance the portfolio’s risk-adjusted returns.
QQQX’s investment objective is to seek attractive total return with less volatility than the Nasdaq 100® Index. The Fund pursues its investment strategy by emphasizing index call options on the Nasdaq-100® Index, as well other broad-based indexes and options on a variety of other equity market indexes and options on custom baskets of stocks in addition to exchange-traded funds (ETFs) and single name options. The Fund uses a dynamic call option overwrite strategy within a range of approximately 35% to 75%, with a long-run target of 55% overwrite of the value of the Fund’s equity portfolio, in seeking to enhance the portfolio’s risk-adjusted returns. The Fund also has the opportunity to utilize call spread strategies and sell put options on a portion of the underlying equity portfolio.
54
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) Topic 946 “Financial Services – Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the Funds did not have any outstanding when-issued/delayed delivery purchase commitments.
Investment Income
Dividend income is recorded on the ex-dividend date or, for 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.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
Dividends and Distributions to Shareholders
Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from 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 Funds’ Board of Trustees (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 purposes. In the event that total distributions during a calendar year exceed a Fund’s total return on net asset value (“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 (“REIT”) 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 of the calendar year. 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. For the current fiscal period, dividend income, net realized gain (loss) and unrealized appreciation (depreciation) recognized on the Statement of Operations reflect the amounts of ordinary income, capital gain, and/or return of capital as reported by the issuers of such securities as of the last calendar year end.
The distributions made by the Fund during the current fiscal period are provisionally classified as being “From and in excess of net investment income,” and those distributions will be classified as being from net investment income, net realized capital gains and/or a return of capital for tax purposes after the fiscal year end. For purposes of calculating “Undistributed (Overdistribution of) net investment income” as of the end of the reporting period, the distribution amounts provisionally classified as “From and in excess of net investment income” were treated as being entirely from net investment income. Consequently, the financial statements as of the end of the reporting period, reflect an over-distribution of net investment income.
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 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.
55
Notes to Financial Statements (continued)
(Unaudited)
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.
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.
The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 – Portfolio Securities and Investments in Derivatives.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the current fiscal period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
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, prepayment speeds, credit risk, 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.
56
Exchange-traded funds 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.
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.
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 |
$ | 1,419,460,458 | $ | — | $ | — | $ | 1,419,460,458 | ||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 46,194,018 | — | 46,194,018 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Written |
(12,259,463 | ) | — | — | (12,259,463 | ) | ||||||||||
Total |
$ | 1,407,200,995 | $ | 46,194,018 | $ | — | $ | 1,453,395,013 | ||||||||
DIAX | ||||||||||||||||
Long-Term Investments*: |
||||||||||||||||
Common Stocks |
$ | 644,321,700 | $ | — | $ | — | $ | 644,321,700 | ||||||||
Exchange-Traded Funds |
12,459,950 | — | — | 12,459,950 | ||||||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 1,585,334 | — | 1,585,334 | ||||||||||||
U.S. Government and Agency Obligations |
— | 4,995,930 | — | 4,995,930 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Purchased |
20,800 | — | — | 20,800 | ||||||||||||
Options Written |
(1,062,825 | ) | — | — | (1,062,825 | ) | ||||||||||
Total |
$ | 655,739,625 | $ | 6,581,264 | $ | — | $ | 662,320,889 |
57
Notes to Financial Statements (continued)
(Unaudited)
SPXX | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: |
||||||||||||||||
Common Stocks |
$ | 259,454,258 | $ | — | $ | — | $ | 259,454,258 | ||||||||
Exchange-Traded Funds |
4,982,340 | — | — | 4,982,340 | ||||||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 2,929,089 | — | 2,929,089 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Purchased |
10,400 | — | — | 10,400 | ||||||||||||
Options Written |
(424,375 | ) | — | — | (424,375 | ) | ||||||||||
Total |
$ | 264,022,623 | $ | 2,929,089 | $ | — | $ | 266,951,712 | ||||||||
QQQX | ||||||||||||||||
Long-Term Investments*: |
||||||||||||||||
Common Stocks |
$ | 829,809,212 | $ | — | $ | — | $ | 829,809,212 | ||||||||
Exchange-Traded Funds |
31,767,520 | — | — | 31,767,520 | ||||||||||||
Short-Term Investments: |
||||||||||||||||
Repurchase Agreements |
— | 301,363 | — | 301,363 | ||||||||||||
Investments in Derivatives: |
||||||||||||||||
Options Purchased |
20,800 | — | — | 20,800 | ||||||||||||
Options Written |
(2,263,750 | ) | — | — | (2,263,750 | ) | ||||||||||
Total |
$ | 859,333,782 | $ | 301,363 | $ | — | $ | 859,635,145 |
* | Refer to the Fund’s Portfolio of Investments for industry classifications, when applicable. |
The Board is responsible for the valuation process and has appointed the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board, is responsible for making fair value determinations, evaluating the effectiveness of the Funds’ pricing policies and reporting to the Board. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
(i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
(ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Foreign Currency Transactions
To the extent that the Funds may 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
58
worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. ET. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received.
The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) foreign currency, (ii) investments, (iii) investments in derivatives and (iv) other assets and liabilities 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 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.
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 |
$ | 46,194,018 | $ | (46,194,018 | ) | $ | — | ||||||
DIAX | Fixed Income Clearing Corporation |
1,585,334 | (1,585,334 | ) | — | |||||||||
SPXX | Fixed Income Clearing Corporation |
2,929,089 | (2,929,089 | ) | — | |||||||||
QQQX | Fixed Income Clearing Corporation |
301,363 | (301,363 | ) | — |
* | 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.
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
59
Notes to Financial Statements (continued)
(Unaudited)
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 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 averaging 55% of each Fund’s assets. Each Fund also purchased 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* |
$ | 706,667 | $ | 353,333 | $ | 706,667 | ||||||||||
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Average notional amount of outstanding call options written* |
$ | (1,431,435,333 | ) | $ | (346,614,833 | ) | $ | (135,881,000 | ) | $ | (442,112,500 | ) | ||||
DIAX | SPXX | QQQX | ||||||||||||||
Average notional amount of outstanding put options purchased* |
$ | 1,800,000 | $ | 900,000 | $ | 1,800,000 |
* | 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. |
The following table presents the fair value of all options purchased and 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 | — | $ | — | Options written, at value | $ | (12,259,463 | ) | ||||||||||
DIAX |
| |||||||||||||||||
Equity price | Options | Options purchased, at value | $ | 20,800 | Options written, at value | $ | (1,062,825 | ) | ||||||||||
SPXX |
| |||||||||||||||||
Equity price | Options | Options purchased, at value | $ | 10,400 | Options written, at value | $ | (424,375 | ) | ||||||||||
QQQX |
| |||||||||||||||||
Equity price | Options | Options purchased, at value | $ | 20,800 | Options written, at value | $ | (2,263,750 | ) |
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 | $ | (55,386,230 | ) | $ | 17,447,747 | |||||
DIAX | Equity price | Options Purchased | 160,092 | 1,510 | ||||||||
DIAX | Equity price | Options Written | (10,131,697 | ) | 2,147,181 | |||||||
SPXX | Equity price | Options Purchased | 69,162 | 755 | ||||||||
SPXX | Equity price | Options Written | (3,881,066 | ) | 845,613 | |||||||
QQQX | Equity price | Options Purchased | 125,665 | 1,510 | ||||||||
QQQX | Equity price | Options Written | (40,743,530 | ) | 1,316,407 |
60
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.
4. Fund Shares
Share Equity Shelf Programs and Offering Costs
SPXX and QQQX 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 current 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 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 shares, 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:
SPXX | QQQX | |||||||||||||||
Six Months Ended 6/30/2018* |
Year Ended 12/31/2017 |
Six Months Ended 6/30/2018** |
Year Ended 12/31/2017 |
|||||||||||||
Additional authorized shares |
1,600,000 | — | 3,700,000 | — | ||||||||||||
Shares sold |
145,078 | — | 17,500 | — | ||||||||||||
Offering proceeds, net of offering costs |
$ | 2,486,059 | $ | — | $ | 452,674 | $ | — |
* | Represents total additional authorized shares for the period June 14, 2018 through June 30, 2018. |
** | Represents total additional authorized shares for the period June 28, 2018 through June 30, 2018. |
Costs incurred by the Funds in connection with its 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 “Other expenses” on the Statement of Operations.
Share Transactions
Transactions in shares for the Funds during the current and prior fiscal period, where applicable, were as follows:
SPXX | QQQX | |||||||||||||||
Six Month Ended |
Year Ended |
Six Month Ended |
Year Ended |
|||||||||||||
Shares: |
||||||||||||||||
Sold through shelf offering |
145,078 | — | 17,500 | — | ||||||||||||
Issued to shareholders due to reinvestment of distributions |
6,961 | — | 32,810 | 46,901 | ||||||||||||
Total |
152,039 | — | 50,310 | 46,901 | ||||||||||||
Weighted average share: |
||||||||||||||||
Premium to NAV per shelf offering sold |
5.87 | % | — | % | 13.55 | % | — | % |
61
Notes to Financial Statements (continued)
(Unaudited)
5. Investment Transactions
Long-term purchases and sales (excluding derivative transactions) during the current reporting period were as follows:
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Purchases |
$ | 21,251,761 | $ | 43,803,674 | $ | 30,575,479 | $ | 87,118,751 | ||||||||
Sales |
113,458,669 | 61,811,649 | 37,295,722 | 140,404,735 |
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 tables below present the cost and unrealized appreciation (depreciation) of each Fund’s investment portfolio, as determined on a federal income tax basis, as of June 30, 2018.
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 |
$ | 743,019,676 | $ | 326,647,715 | $ | 143,975,385 | $ | 304,785,532 | ||||||||
Gross unrealized: |
||||||||||||||||
Appreciation |
$ | 749,767,510 | $ | 338,587,280 | $ | 130,406,972 | $ | 561,280,332 | ||||||||
Depreciation |
(27,132,710 | ) | (1,872,081 | ) | (7,016,670 | ) | (4,187,769 | ) | ||||||||
Net unrealized appreciation (depreciation) of investments |
$ | 722,634,800 | $ | 336,715,199 | $ | 123,390,302 | $ | 557,092,563 | ||||||||
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Tax cost of options purchased |
$ | — | $ | 38,202 | $ | 19,101 | $ | 38,202 | ||||||||
Net unrealized appreciation (depreciation) of options purchased |
— | (17,402 | ) | (8,701 | ) | (17,402 | ) | |||||||||
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Tax cost of options written |
$ | (12,259,463 | ) | $ | (1,062,825 | ) | $ | (424,375 | ) | $ | (2,263,750 | ) | ||||
Net unrealized appreciation (depreciation) of options written |
— | — | — | — | ||||||||||||
Permanent differences, primarily due to foreign currency transactions, nondeductible reorganization expenses, real estate investment trust adjustments and expiration of capital loss carryforwards, resulted in reclassifications among the Funds’ components of net assets as of December 31, 2017, the Funds’ last tax year end, as follows: |
| |||||||||||||||
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Paid-in surplus |
$ | — | $ | 87,765 | $ | (11,865,274 | ) | $ | (183 | ) | ||||||
Undistributed (Over-distribution of) net investment income |
(176,030 | ) | (87,765 | ) | (52,505 | ) | 76,407 | |||||||||
Accumulated net realized gain (loss) |
176,030 | — | 11,917,779 | (76,224 | ) |
62
The tax components of undistributed net ordinary income and net long-term capital gains as of December 31, 2017, the Funds’ last 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’ last tax year ended December 31, 2017, was designated for purposes of the dividends paid deduction as follows: |
| |||||||||||||||
BXMX | DIAX | SPXX | QQQX | |||||||||||||
Distributions from net ordinary income1 |
16,033,153 | 9,224,043 | 2,959,348 | 1,398,915 | ||||||||||||
Distributions from net long-term capital gains |
— | — | — | 18,260,334 | ||||||||||||
Return of capital |
78,615,705 | 29,062,514 | 12,950,942 | 33,027,683 | ||||||||||||
1 Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. |
|
As of December 31, 2017, the Funds’ last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
BXMX | DIAX | SPXX | ||||||||||
Expiration: |
||||||||||||
December 31, 2018 |
$ | — | $ | — | $ | 7,655,485 | ||||||
Not subject to expiration |
17,000,365 | 9,810,078 | 2,342,691 | |||||||||
Total |
$ | 17,000,365 | $ | 9,810,078 | $ | 9,998,176 |
During the Funds’ last tax year ended December 31, 2017, DIAX utilized $2,028,457 of its capital loss carryforwards.
As of December 31, 2017, the Funds’ last tax year end, $11,865,274 of SPXX’s capital loss carryforwards expired.
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 the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their 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 |
63
Notes to Financial Statements (continued)
(Unaudited)
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. As of June 30, 2018, the complex-level fee rate for each Fund was 0.1591%. |
8. Borrowing Arrangements
Inter-Fund Borrowing and Lending
The Securities and Exchange Commission (“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, 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 interfund 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 May 2017, the Board approved the Nuveen funds participation in the Inter-Fund Program. During the current reporting period, the Funds did not enter into any inter-fund loan activity.
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Board of Trustees | ||||||||||
Margo Cook* |
Jack B. Evans |
William C. Hunter |
Albin F. Moschner |
John K. Nelson |
William J. Schneider | |||||
Judith M. Stockdale |
Carole E. Stone |
Terence J. Toth |
Margaret L. Wolff |
Robert C. Young |
* | Interested Board Member. |
Fund Manager 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. 250 Royal Street Canton, MA 02021 (800) 257-8787 |
Quarterly Form N-Q Portfolio of Investments Information
Each 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 on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
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.
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 | |||||||||||||
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.
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Glossary of Terms Used in this Report
∎ | Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or 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. Index returns assume reinvestment of distributions, but do not include the effects of any applicable sales charges or management fees. |
∎ | Chicago Board of Exchange (CBOE) Volatility Index® (VIX®): An index that is a key measure of market expectations of near-term volatility conveyed by S&P 500® Index 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 of 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 of 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. |
∎ | Effective Leverage: Effective leverage is a fund’s effective economic leverage, and includes both regulatory leverage (see below) and the leverage effects of certain derivative investments in the fund’s portfolio that increase the fund’s investment exposure. |
∎ | Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. |
∎ | 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. |
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∎ | 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 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. |
∎ | Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund’s capital structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of 1940. |
∎ | S&P 500® Index: 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® Index and 2) 45% S&P 500® Index, 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. |
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Reinvest Automatically, Easily and Conveniently
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Annual Investment Management Agreement Approval Process
(Unaudited)
At a meeting held on May 22-24, 2018 (the “May Meeting”), the Board of Trustees (each, a “Board,” and each Trustee, a “Board Member”) of each Fund, including the Board Members who are not “interested persons” (as defined under the Investment Company Act of 1940 (the “1940 Act”)) (the “Independent Board Members”), approved, for its respective Fund, the renewal of the management agreement (the “Investment Management Agreement”) with Nuveen Fund Advisors, LLC (the “Adviser”) pursuant to which the Adviser serves as investment adviser to such Fund and the sub-advisory agreement (the “Sub-Advisory Agreement”) with (a) in the case of Nuveen S&P 500 Buy-Write Income Fund (the “S&P Buy-Write Fund”), Gateway Investment Advisers, LLC (“Gateway”), pursuant to which Gateway serves as investment sub-adviser to such Fund and (b) in the case of Nuveen Dow 30sm Dynamic Overwrite Fund (the “Dow Fund”), Nuveen S&P 500 Dynamic Overwrite Fund (the “S&P Dynamic Fund”) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (the “Nasdaq Fund”), Nuveen Asset Management, LLC (“NAM”), pursuant to which NAM serves as investment sub-adviser to each such Fund. Gateway and NAM are collectively referred to as the “Sub-Advisers” and each, a “Sub-Adviser.” The Adviser and the Sub-Advisers are collectively referred to as the “Fund Advisers” and each, a “Fund Adviser.” Following an initial two-year period, the Board, including the Independent Board Members, is required under the 1940 Act to review and approve each Investment Management Agreement and Sub-Advisory Agreement on behalf of the applicable Fund on an annual basis. The Investment Management Agreements and Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements.”
In response to a request on behalf of the Independent Board Members by independent legal counsel, the Board received and reviewed prior to the May Meeting extensive materials specifically prepared for the annual review of Advisory Agreements by the Adviser as well as by Broadridge Financial Solutions, Inc. (“Broadridge” or “Lipper”), an independent provider of investment company data. The materials provided in connection with the annual review covered a breadth of subject matter including, but not limited to, a description of the nature, extent and quality of services provided by each Fund Adviser; a review of each Sub-Adviser and the applicable investment team(s); an analysis of fund performance in absolute terms and as compared to the performance of certain peer funds and benchmarks with a focus on any performance outliers; an analysis of the fees and expense ratios of the Nuveen funds in absolute terms and as compared to those of certain peer funds with a focus on any expense outliers; a description of portfolio manager compensation; a review of the secondary market for Nuveen closed-end funds (including, among other things an analysis of performance, distribution and valuation and capital raising trends in the broader closed-end fund market and in particular to Nuveen closed-end funds; a review of the leverage management actions taken on behalf of the Nuveen closed-end funds and the resulting impact on performance; and a description of the distribution management process and any capital management activities); a review of the performance of various service providers; a description of various initiatives Nuveen had undertaken or continued during the year for the benefit of particular Nuveen fund(s) and/or the complex; a description of the profitability or financial data of Nuveen and the various sub-advisers to the Nuveen funds; and a description of indirect benefits received by the Fund Advisers as a result of their relationships with the Nuveen funds. The Independent Board Members also received a memorandum from independent legal counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements. The Board Members held an in-person meeting on April 10-11, 2018 (the “April Meeting”), in part, to review and discuss the performance of the Nuveen funds and the Adviser’s evaluation of the various sub-advisers to the Nuveen funds. Prior to the May Meeting, the Board Members also received and reviewed supplemental information provided in response to questions posed by the Board Members.
The information prepared specifically for the annual review of the Advisory Agreements supplemented the information provided to the Board and its committees throughout the year. The Board and its committees met regularly during the year and the information provided and topics discussed were relevant to the review of the Advisory Agreements. Some of these reports and other data included, among other things, materials that outlined the investment performance of the Nuveen funds; strategic plans of the Adviser which may impact the services it provides to the Nuveen funds; the review of the Nuveen funds and applicable investment teams; the management of leveraging financing for the Nuveen closed-end funds; the secondary market trading of the Nuveen closed-end funds and any actions to address discounts; compliance, regulatory and risk management matters; the trading practices of the various sub-advisers; valuation of securities; fund expenses; and overall market and regulatory developments. The Board further continued its practice of seeking to meet periodically with the various sub-advisers to the Nuveen funds and their
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Annual Investment Management Agreement Approval Process (continued)
(Unaudited)
investment teams, when feasible. As a result, the Independent Board Members considered the review of the Advisory Agreements to be an ongoing process and employed the accumulated information, knowledge, and experience the Board Members had gained during their tenure on the boards governing the Nuveen funds and working with the Fund Advisers in their review of the Advisory Agreements. Throughout the year and during the annual review of Advisory Agreements, the Independent Board Members met in executive sessions with independent legal counsel and had the benefit of counsel’s advice.
In deciding to renew the Advisory Agreements, the Independent Board Members did not identify a particular factor as determinative, but rather the decision reflected the comprehensive consideration of all the information provided, and each Board Member may have attributed different levels of importance to the various factors and information considered in connection with the approval process. The following summarizes the principal factors, but not all the factors, the Board considered in deciding to renew the Advisory Agreements and its conclusions.
A. | Nature, Extent and Quality of Services |
In evaluating the renewal of the Advisory Agreements, the Independent Board Members received and considered information regarding the nature, extent and quality of the applicable Fund Adviser’s services provided to the respective Fund and the resulting performance of each Fund. With respect to the Adviser, the Board recognized the comprehensive set of management, oversight and administrative services the Adviser and its affiliates provided to manage and operate the Nuveen funds in a highly regulated industry. As illustrative, these services included, but were not limited to, product management; investment oversight, risk management and securities valuation services; fund accounting and administration services; board support and administration services; compliance and regulatory oversight services; legal support; and with respect to closed-end funds, leverage, capital and distribution management services.
In addition to the services necessary to operate and maintain the Nuveen funds, the Board recognized the Adviser’s continued program of improvements and innovations to make the Nuveen fund complex more relevant and attractive to existing and new investors and to accommodate the new and changing regulatory requirements in an increasingly complex regulatory environment. The Board noted that some of the initiatives the Adviser had taken over recent years to benefit the complex and particular Nuveen funds included, among other things:
• | Fund Rationalizations – continuing efforts to rationalize the product line through mergers, liquidations and repositionings in seeking to enhance shareholder value over the years through increased efficiency, reduced costs, improved performance and revised investment approaches more relevant to current shareholder needs; |
• | Product Innovations – developing product innovations and launching new products that will help the Nuveen fund complex offer a variety of products that will attract new investors and retain existing investors, such as launching the target term funds, exchange-traded funds (“ETFs”) and multi-asset class funds; |
• | Risk Management Enhancements – continuing efforts to enhance risk management, including enhancing reporting to increase the efficiency of risk monitoring, implementing programs to strengthen the ability to detect and mitigate operational risks, dedicating resources and staffing necessary to create standards to help ensure compliance with new liquidity requirements, and implementing a price verification system; |
• | Additional Compliance Services – the continuing investment of significant resources, time and additional staffing to meet the various new regulatory requirements affecting the Nuveen funds over the past several years, the further implementation of unified compliance policies and processes, the development of additional compliance training modules, and the reorganization of the compliance team adding further depth to its senior leadership; |
• | Expanded Dividend Management Services – as the Nuveen fund complex has grown, the additional services necessary to manage the distributions of the varied funds offered and investing in automated systems to assist in this process; and |
• | with respect specifically to closed-end funds, such initiatives also included: |
•• | Leverage Management Services – continuing activities to expand financing relationships and develop new product structures to lower fund leverage expenses and to manage associated risks, particularly in an interest rate increasing environment; |
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•• | Capital Management Services – continuing capital management activities through the share repurchase program and additional equity offerings in seeking to increase net asset value and/or improve fund performance for the respective Nuveen funds; |
•• | Data and Market Analytics – continuing development of databases that help with obtaining and analyzing ownership data of closed-end funds; |
•• | Enhanced Secondary Market Reporting – providing enhanced reporting and commentary on the secondary market trading of closed-end funds which permit more efficient analysis of the performance of the Nuveen funds compared to peers and of trends in the marketplace; and |
•• | Tender Option Bond Services – providing the additional support services necessary for Nuveen funds that seek to use tender option bonds to meet new regulatory requirements. |
The Board also recognized the Adviser’s investor relations program which seeks to advance the Nuveen closed-end funds through, among other things, raising awareness and delivering education regarding closed-end funds to investors and financial advisors and promoting the Nuveen closed-end funds with such investors.
In addition to the services provided by the Adviser, the Board also noted the business related risks the Adviser incurred in managing the Nuveen funds, including entrepreneurial, legal and litigation risks.
The Board further considered the division of responsibilities between the Adviser and the Sub-Advisers and the investment and compliance oversight over the Sub-Advisers provided by the Adviser. The Board recognized that the Sub-Advisers generally provided the portfolio advisory services for the applicable Fund(s). The Board reviewed the Adviser’s analysis of each Sub-Adviser which evaluated, among other things, the investment team, the members’ experience and any changes to the team during the year, the team’s assets under management, the stability and history of the organization, the team’s investment approach and the performance of the Funds over various periods. The Board noted that the Adviser recommended the renewal of the Sub-Advisory Agreements.
Based on its review, the Board determined, in the exercise of its reasonable business judgment, that it was satisfied with the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement.
B. | The Investment Performance of the Funds and Fund Advisers |
As part of its evaluation of the services provided by the Fund Advisers, the Board considered the investment performance of each Fund. In this regard, the Board reviewed fund performance over the quarter, one-, three- and five-year periods ending December 31, 2017, as well as performance data for the first quarter of 2018 ending March 31, 2018. The Independent Board Members noted that they reviewed and discussed fund performance over various time periods with management at their quarterly meetings throughout the year and their review and analysis of performance during the annual review of Advisory Agreements incorporated such discussions.
The Board reviewed performance on an absolute basis and in comparison to the performance of peer funds (the “Performance Peer Group”) and recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks). The Board considered the Adviser’s analysis of each Nuveen fund’s performance, including, in particular, an analysis of the Nuveen funds determined to be performance outliers and the factors contributing to their underperformance. In addition to the foregoing, in recognizing the importance of secondary market trading to shareholders of closed-end funds, the Board reviewed, among other things, the premium or discount to net asset value of the Nuveen closed-end funds as of a specified date as well as relative to the premiums or discounts of certain peers and the funds’ total return based on net asset value and market price over various periods. The Board considers the review of premiums and discounts of the closed-end funds to be a continuing priority and as such, the Board and/or its Closed-end Fund Committee also receives an update on the secondary closed-end fund market and evaluates the premiums and discounts of the Nuveen closed-end funds at each quarterly meeting, reviewing, among other things, the premium and discount trends in the broader closed-end fund market, by asset category and by closed-end fund; the historical total return performance data for the Nuveen closed-end funds based on net asset value and price over various periods; the volatility trends in the market; the
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Annual Investment Management Agreement Approval Process (continued)
(Unaudited)
distribution data of the Nuveen closed-end funds and as compared to peer averages; and a summary of the common share shelf offerings and share repurchase activity during the applicable quarter. As the Board’s Closed-end Fund Committee oversees matters particularly impacting the closed-end fund product line, the committee further engages in more in-depth discussions of the premiums and discounts of the Nuveen closed-end funds at each of its quarterly meetings.
In reviewing performance data, the Independent Board Members appreciated some of the inherent limitations of such data. In this regard, the Independent Board Members recognized that there may be limitations with the comparative data of certain peer groups or benchmarks as they may pursue objective(s), strategies or have other characteristics that are different from the respective Nuveen fund and therefore the performance results necessarily are different and limit the value of the comparisons. As an example, some funds may utilize leverage which may add to or detract from performance compared to an unlevered benchmark. The Independent Board Members also noted that management had ranked the relevancy of the peer group as low, medium or high to help the Board evaluate the value of the comparative peer performance data. The Board was aware that the performance data was measured as of a specific date and a different time period may reflect significantly different results and a period of underperformance can significantly impact long term performance figures. The Board further recognized that a shareholder’s experience in a Fund depends on his or her own holding period which may differ from that reviewed by the Independent Board Members.
In their review of performance, the Independent Board Members focused, in particular, on the Adviser’s analysis of Nuveen funds determined to be underperforming performance outliers. The Independent Board Members noted that only a limited number of the Nuveen funds appeared to be underperforming performance outliers at the end of 2017 and considered the factors contributing to the respective fund’s performance and whether there were any performance concerns that needed to be addressed. The Board recognized that some periods of underperformance may only be temporary while other periods of underperformance may indicate a broader issue that may require a corrective action. Accordingly, with respect to any Nuveen funds for which the Board had identified performance issues, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers whether any steps are necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
For the Dow Fund, the Board noted that the Fund performed in the first quartile of its Performance Peer Group in the one-, three- and five-year periods. The Fund also outperformed its blended benchmark over such periods. The Board was satisfied with the Fund’s overall performance.
For the Nasdaq Fund, the Board noted that the Fund performed in the first quartile of its Performance Peer Group over the one-, three- and five-year periods. Although the Fund’s performance was below its blended benchmark over the one- and three-year periods, the Fund outperformed its blended benchmark over the five-year period. The Board was satisfied with the Fund’s overall performance.
For the S&P Buy-Write Fund, the Board noted that although the Fund ranked in the fourth quartile of its Performance Peer Group in the one-year period, the Fund ranked in the second quartile in the three-year period and the third quartile in the five-year period. The Fund also outperformed its primary buy-write benchmark for the one-, three- and five-year periods. The Board was satisfied with the Fund’s overall performance.
For the S&P Dynamic Fund, the Board noted that although the Fund’s performance was below its blended benchmark in the three- and five-year periods, the Fund essentially matched the blended benchmark’s performance in the one-year period and ranked in the third quartile of its Performance Peer Group in the one-year period and the second quartile in the three- and five-year periods. Notwithstanding the foregoing, the Board recognized that the Fund was repositioned and the sub-adviser changed in 2014 and therefore the past performance prior to such time reflected performance under a different sub-adviser and investment parameters. The Board was satisfied with the Fund’s overall performance.
C. | Fees, Expenses and Profitability |
1. | Fees and Expenses |
In its annual review, the Board considered the fees paid to the Fund Advisers and the total operating expense ratio of each Fund. More specifically, the Independent Board Members reviewed, among other things, each Fund’s gross and net
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management fee rates and net total expense ratio in relation to those of a comparable universe of funds (the “Peer Universe”) established by Broadridge. The Independent Board Members reviewed the methodology Broadridge employed to establish its Peer Universe and recognized that differences between the applicable fund and its respective Peer Universe may limit some of the value of the comparative data. The Independent Board Members also considered a fund’s operating expense ratio as it more directly reflected the shareholder’s costs in investing in the respective fund. In their review, the Independent Board Members considered, in particular, each fund with a net expense ratio (excluding investment-related costs of leverage for closed-end funds) of six basis points or higher compared to that of its peer average (each an “Expense Outlier Fund”). The Board noted that the number of Nuveen funds classified as an Expense Outlier Fund pursuant to the foregoing criteria had decreased over the past few years with only a limited number of the Nuveen funds identified as Expense Outlier Funds in 2017. The Independent Board Members reviewed an analysis as to the factors contributing to each such fund’s higher relative net expense ratio. In addition, although the Board reviewed a fund’s total net expenses both including and excluding investment-related expenses (i.e., leverage costs) and taxes for certain of the Nuveen closed-end funds, the Board recognized that leverage expenses will vary across funds and in comparison to peers because of differences in the forms and terms of leverage employed by the respective fund. Accordingly, in reviewing the comparative data between a fund and its peers, the Board generally considered the fund’s net expense ratio and fees (excluding leverage costs and leveraged assets for the closed-end funds) to be higher if they were over 10 basis points higher, slightly higher if they were 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Universe.
In their review of the fee arrangements for the Nuveen funds, the Independent Board Members considered the management fee schedules, including the complex-wide and fund-level breakpoint schedules, as applicable. The Board considered that across the Nuveen fund complex, the complex-wide fee breakpoints reduced fees by $47.4 million and fund-level breakpoints reduced fees by $54.6 million in 2017.
The Board considered the sub-advisory fees paid to the Sub-Advisers, including any breakpoint schedule, and as described below, comparative data of the fees the Sub-Advisers charge to other clients.
The Independent Board Members noted that each Fund had a net management fee and net expense ratio below the respective peer averages.
Based on their review of the information provided, the Board determined that each Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. | Comparisons with the Fees of Other Clients |
In determining the appropriateness of fees, the Board also reviewed information regarding the fee rates the respective Fund Advisers charged for certain other types of clients and the type of services provided to these other clients. With respect to the Adviser and/or NAM, such other clients may include retail and institutional managed accounts, investment companies outside the Nuveen family, foreign investment companies offered by Nuveen and collective investment trusts. The Board further noted that the Adviser also advised certain ETFs sponsored by Nuveen.
The Board recognized that the Dow Fund, the S&P Dynamic Fund and the Nasdaq Fund had an affiliated sub-adviser (i.e., NAM) and reviewed, among other things, the range of fees assessed for managed accounts and foreign investment companies. The Board also reviewed the fee range and average fee rate of certain selected investment strategies offered in retail and institutional managed accounts by such Sub-Adviser and of the non-Nuveen investment companies sub-advised by affiliated sub-advisers. In addition to the comparative fee data, the Board also reviewed, among other things, a description of the different levels of services provided to other clients of the Adviser and/or its affiliated sub-advisers compared to the services provided to the Nuveen funds as well as the differences in portfolio investment policies, investor profiles, account sizes and regulatory requirements, all of which contribute to variations in the fee schedules. With respect to ETFs, the Board considered the differences in the passive management of Nuveen’s Nushares ETFs compared to the active management of other Nuveen funds which also contributed to differing management fee levels compared to the other Nuveen funds. In general, the Board noted that the higher fee levels reflect higher levels of services provided by Nuveen, increased investment management complexity, greater product management requirements and higher levels of business risk or some combination
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Annual Investment Management Agreement Approval Process (continued)
(Unaudited)
of these factors. The Board further considered that NAM’s fee is essentially for portfolio management services and therefore more comparable to the fees it receives for retail wrap accounts and other external sub-advisory mandates. The Board concluded the varying levels of fees were justified given, among other things, the inherent differences in the products and the level of services provided to the Nuveen funds versus other clients, the differing regulatory requirements and legal liabilities and the entrepreneurial risks incurred in sponsoring and advising a registered investment company.
The Board recognized that the S&P Buy-Write Fund had an unaffiliated sub-adviser (i.e., Gateway) and considered that such Sub-Adviser’s fee is essentially for portfolio management services. The Independent Board Members reviewed the pricing schedule or average fee rates that Gateway charges for other clients. The Independent Board Members noted that the sub-advisory fees with respect to the Fund were the result of arm’s length negotiations and were reasonable in relation to the fees assessed other clients.
3. | Profitability of Fund Advisers |
In conjunction with their review of fees, the Independent Board Members considered Nuveen’s level of profitability for its advisory services to the Nuveen funds for the calendar years 2017 and 2016. In considering profitability, the Independent Board Members reviewed the level of profitability realized by Nuveen including and excluding any distribution expenses incurred by Nuveen from its own resources. The Independent Board Members also reviewed a description of the expense allocation methodology employed to develop the financial information and a summary of the history of changes to the methodology over the years. For comparability purposes, the Board recognized that a prior year’s profitability would be restated to reflect any refinements to the methodology. The Independent Board Members were aware of the inherent limitations in calculating profitability as the use of different reasonable allocation methodologies may lead to significantly different results and in reviewing profitability margins over extended periods given the refinements to the methodology over time. The Board noted that two Independent Board Members, along with independent counsel, serve as the Board’s liaisons to review and discuss any proposed changes to the methodology prior to the full Board’s review.
In their review, the Independent Board Members evaluated, among other things, Nuveen’s adjusted operating margins, gross and net revenue margins (pre-tax and after-tax) for advisory activities for the Nuveen funds, and the revenues, expenses, and net income (pre-tax and after-tax and before distribution) of Nuveen for fund advisory services for each of the last two calendar years. The Independent Board Members also reviewed an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2017 versus 2016. The Board noted that Nuveen recently launched its ETF product line in 2016 and reviewed the revenues, expenses and operating margin from this product line.
In addition to reviewing Nuveen’s profitability in absolute terms, the Independent Board Members also examined comparative profitability data reviewing, among other things, the revenues, expenses and adjusted total company margins of other advisory firms that had publicly available information and comparable assets under management (based on asset size and asset composition) for 2017 and as compared to their adjusted operating margins for 2016. The Independent Board Members, however, recognized the difficulty in comparing the profitability of various fund managers given the limited public information available and the subjective nature of calculating profitability which may be affected by numerous factors including the fund manager’s organizational structure, types of funds, other lines of business, methodology used to allocate expenses and cost of capital. Nevertheless, considering such limitations and based on the information provided, the Board noted that Nuveen’s adjusted operating margins appeared reasonable when compared to the adjusted margins of the peers.
Aside from Nuveen’s profitability, the Board recognized that the Adviser is a subsidiary of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA”). As such, the Board also reviewed a balance sheet for TIAA reflecting its assets, liabilities and capital and contingency reserves for the 2017 and 2016 calendar years to consider the financial strength of TIAA.
In reviewing profitability, the Independent Board Members also considered the profitability of the various sub-advisers from their relationships with the respective Nuveen fund(s). With respect to NAM, the Independent Board Members reviewed such Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2017. The Independent Board Members also reviewed a profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for NAM for the calendar year ending December 31, 2017 and
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the pre- and post-tax revenue margin from 2017 and 2016. With respect to Gateway, the Independent Board Members considered a profitability and margin analysis, generally including revenues, expenses and operating margins for its advisory services to the S&P Buy-Write Fund for the calendar years 2017 and 2016.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered any other ancillary benefits derived by the respective Fund Adviser from its relationship with the Nuveen funds as discussed in further detail below.
Based on a consideration of all the information provided, the Board noted that Nuveen’s and each Sub-Adviser’s level of profitability was acceptable and not unreasonable in light of the services provided.
D. | Economies of Scale and Whether Fee Levels Reflect These Economies of Scale |
The Independent Board Members considered the extent to which economies of scale may be achieved as a Fund grows and whether these economies of scale have been shared with shareholders. Although the Board recognized that economies of scale are difficult to measure, the Independent Board Members noted that there are several methods that may be used in seeking to share economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waivers and/or expense limitation agreements and the Adviser’s investment in its business which can enhance the services provided to the Nuveen funds. With respect to breakpoint schedules, because the Board had previously recognized that economies of scale may occur not only when the assets of a particular fund grow but also when the assets in the complex grow, the Nuveen funds generally pay the Adviser a management fee comprised of a fund-level component and a complex-level component each with its own breakpoint schedule, subject to certain exceptions. In general terms, the breakpoint schedule at the fund level reduces fees as assets in the particular fund pass certain thresholds and the breakpoint schedule at the complex level reduces fees on certain funds as the eligible assets in the complex pass certain thresholds. Subject to exceptions for certain Nuveen funds, the Independent Board Members reviewed the fund-level and complex-level fee schedules and any resulting savings in fees. In addition, with respect to closed-end funds, the Independent Board Members noted that, although such funds may from time-to-time make additional share offerings, the growth of their assets would occur primarily through the appreciation of such funds’ investment portfolios. Further, the Independent Board Members recognized the Adviser’s continued reinvestment in its business through, among other things, improvements in technology, additional staffing, product innovations and other organizational changes designed to expand or enhance the services provided to the benefit of all of the Nuveen funds.
Based on its review, the Board concluded that the current fee arrangements together with the Adviser’s reinvestment in its business appropriately shared any economies of scale with shareholders.
E. | Indirect Benefits |
The Independent Board Members received and considered information regarding other benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Nuveen funds. The Independent Board Members reviewed the revenues that an affiliate of the Adviser received in 2017 as a result of serving as co-manager in the initial public offerings of new closed-end funds and as the underwriter on shelf offerings of existing closed-end funds.
In addition to the above, the Independent Board Members considered whether the Sub-Advisers use commissions paid by the applicable Fund(s) on portfolio transactions to obtain research products and other services (“soft dollar transactions”). The Board recognized that NAM may benefit from research received from broker-dealers that execute Fund portfolio transactions. The Board, however, noted that the benefits for sub-advisers transacting in fixed-income securities may be more limited as such securities generally trade on a principal basis and therefore do not generate brokerage commissions. Further, the Board noted that although NAM may benefit from the receipt of research and other services that it may otherwise have to pay for out of its own resources, the research may also benefit the applicable Funds to the extent it enhances the ability of NAM to manage such Funds or is acquired through the commissions paid on portfolio transactions of other funds or clients.
With regard to the S&P Buy-Write Fund, Gateway, the Sub-Adviser of such Fund, does not participate in soft dollar arrangements with respect to Fund portfolio transactions.
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Annual Investment Management Agreement Approval Process (continued)
(Unaudited)
Based on their review, the Board concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. | Other Considerations |
The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, concluded that the terms of each Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
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
Securities offered through Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com |
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ESA-D-0618D 569802-INV-B-08/19 |
Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this filing.
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.
Not applicable to this filing.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to this filing.
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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. 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 to this filing.
(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: See EX-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2 (b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See 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 Dow 30SM Dynamic Overwrite Fund
By (Signature and Title) | /s/ Gifford R. Zimmerman |
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Gifford R. Zimmerman | ||||
Vice President and Secretary |
Date: September 6, 2018
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: September 6, 2018
By (Signature and Title) | /s/ Stephen D. Foy |
|||
Stephen D. Foy | ||||
Vice President and Controller | ||||
(principal financial officer) |
Date: September 6, 2018