Nuveen Investment Funds, Inc.
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 811-05309
Nuveen Investment Funds, Inc.
(Exact name of registrant as specified in
charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Christopher M. Rohrbacher
Vice President and Secretary
333 West Wacker Drive, Chicago, IL 60606
(Name and address of agent for
service)
Registrants telephone number, including area code: (312) 917-7700
Date of fiscal year end: October 31
Date of reporting period: April 30, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the
transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information
specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and
Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
Item 1. Reports to Stockholders.
Nuveen Equity Funds
Fund
Name |
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Nuveen
Dividend Value Fund |
FFEIX
|
FFECX
|
FEISX
|
FFEFX
|
FAQIX
|
Nuveen
Mid Cap Value Fund |
FASEX
|
FACSX
|
FMVSX
|
FMVQX
|
FSEIX
|
Nuveen
Small Cap Value Fund |
FSCAX
|
FSCVX
|
FSVSX
|
FSCWX
|
FSCCX
|
Beginning on January 1, 2021, as permitted by regulations
adopted by the Securities and Exchange Commission, paper copies of the Funds' annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made
available on the Funds' website (www.nuveen.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports
electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting the financial intermediary (such as a
broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.
You may elect to receive all future shareholder reports in
paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, by calling 800-257-8787 and selecting option #1. Your election to receive reports in paper will apply to all funds held in your account with
your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment companies.
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e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you
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If you receive your Nuveen Fund
distributions and statements from your financial professional or brokerage account.
or
www.nuveen.com/client-access
If you receive your Nuveen Fund
distributions and statements directly from Nuveen.
Must be preceded by or accompanied by a
prospectus.
NOT FDIC INSURED MAY
LOSE VALUE NO BANK GUARANTEE
Chair’s Letter to Shareholders
Dear Shareholders,
The COVID-19 crisis is taking an unprecedented toll on our
health, societies, economies and financial markets. Our thoughts are with all whose lives have been affected by the disease and its economic fallout. With some regions of the world having appeared to “flatten the curve” of infections,
governments and public health officials are now facing the extraordinary challenge of balancing the resumption of economic activity with public safety, in a way that minimizes the potential for a second wave of outbreaks. Markets have turned their
focus to the potential for an economic recovery the timing and magnitude of which remain highly uncertain. Elevated market volatility is likely to continue, with economic data, coronavirus infection rates and the upcoming U.S. presidential election
under scrutiny.
While we do not want to understate the
dampening effect on the global economy, it is important to differentiate short term interruptions from the longer-lasting implications to the economy. Some areas of the global economy were already on the mend prior to the coronavirus epidemic.
Temporary bans on movement and travel are being lifted, and some near-term economic indicators have shown modest improvement in countries that have reopened. Central banks and governments around the world have announced economic stimulus measures
and pledged to continue doing what it takes to support their economies. In the U.S., the Federal Reserve has cut its benchmark interest rate to near zero and introduced programs that helped revive the U.S. economy after the 2008 financial crisis.
The U.S. Government has approved three relief packages, including a $2 trillion-dollar package directly supporting businesses and individuals. The Coronavirus Aid, Relief and Economic Security Act, called the CARES Act, provides direct payments and
expanded unemployment benefits to individuals, loans and grants to small businesses, loans and other money to large corporations and funding for hospitals, public health, education and state and local governments.
In the meantime, patience and a long-term perspective are key
for investors. When market fluctuations are the leading headlines day after day, it’s tempting to “do something.” However, your long-term goals can’t be met with short-term thinking. We encourage you to talk to your financial
professional, who can review your time horizon, risk tolerance and investment goals. 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
Chair of the Board
June 23, 2020
Portfolio Managers’
Comments
Nuveen Dividend Value
Fund
Nuveen Mid Cap Value Fund
Nuveen Small Cap Value Fund
These Funds feature portfolio management by Nuveen Asset
Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Funds' investment adviser.
David Chalupnik, CFA, and Evan Staples, CFA, are the portfolio
managers for the Nuveen Dividend Value Fund. David assumed portfolio management responsibilities in 2015 and Evan joined the portfolio management team for the Fund in 2019.
Karen Bowie, CFA, is the portfolio manager for the Nuveen Mid
Cap Value Fund and the Nuveen Small Cap Value Fund. Karen assumed portfolio management responsibilities for the Nuveen Mid Cap Value Fund in 2012 and the Nuveen Small Cap Value Fund in 2006. David Johnson, CFA, and Andrew Rem, CFA, joined the
portfolio management team for the Nuveen Small Cap Value Fund in 2017.
During April 2020, the Funds’ Board of Directors
approved the merger of Nuveen Large Cap Value Fund to Nuveen Dividend Value Fund. The merger is pending shareholder approval.
On the following pages, the portfolio management teams for the
Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended April 30, 2020.
An Update on COVID-19 Coronavirus and its Impact on the
Securities Markets
With daily new COVID-19 coronavirus
cases now slowing across much of the world, economies are beginning to reopen and movement bans are easing. The focus is shifting to whether the resumption of activity triggers a second wave of infections and how quickly economies may rebound. Early
indications, first from China, South Korea and Hong Kong, and more recently from various U.S. states that opened their economies earlier and more thoroughly than others, showed there is a risk of new infection outbreaks. Economic indicators have
begun to reflect the severe supply and demand disruptions resulting from the shutdowns, and a more prolonged recovery looks more likely than a rapid snap-back to growth.
Although the detection of the virus in China was made public
in December 2019, markets did not start to fully acknowledge the risks and potential economic impact until the latter portion of February 2020, when outbreaks outside of China were first reported. Global stock markets sold off severely, with the
S&P 500® index reaching a bear market (a 20% drop from the previous high) within three weeks, the fastest bear market decline in history. Even
certain parts of the bond market suffered; below investment grade municipal and corporate bonds generally dropped the furthest, mostly out of concerns for the continued financial stability of lower quality issuers. Demand for safe-haven assets,
along with mounting recession fears, drove the yield on the 10-year U.S. Treasury note to 0.5% in March 2020, an all-time low. Additionally, oil prices collapsed to an 18-year low on supply glut concerns, as shutdowns across the global economy
sharply reduced oil demand, although oil prices have recovered to well above those lows..
This material is not intended to be a recommendation or investment advice,
does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular
investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
Certain statements in this report are forward-looking
statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of
the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other
factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Refer to the Glossary of Terms Used in this Report for further
definition of the terms used within this section.
Portfolio Managers’ Comments (continued)
Central banks and governments have responded with liquidity
injections to ease the strain on financial systems and stimulus measures to buffer the shock to businesses and consumers. These measures have helped stabilize the markets over the short term, and most markets have recovered most of their losses. But
volatility will likely remain elevated until the health crisis itself is under control (via fewer new cases, lower infection rates and/or verified treatments or vaccines). There are still many unknowns and new information is incoming daily,
compounding the difficulty of modeling outcomes for epidemiologists and economists alike.
Nuveen, LLC and our portfolio management teams are monitoring
the situation carefully and continuously refining our views and approaches to managing the Funds to best pursue investment objectives while mitigating risks through all market environments.
Nuveen Dividend Value Fund
How did the Fund perform during the six-month reporting period
ended April 30, 2020?
The tables in the Fund Performance
and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year, ten-year and/or since inception periods ended April 30, 2020. Comparative performance information is provided for the Fund’s
Class A Shares at net asset value (NAV) only. The Fund’s Class A Shares at NAV underperformed the Russell 1000® Value Index and the Lipper
Equity Income Funds Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the
reporting period and how did these strategies influence performance?
The Fund’s investment objective is long-term growth of
capital and income. During the reporting period, we continued to implement the Fund’s disciplined investment strategy. We seek to achieve consistent, long-term outperformance with lower volatility by building and managing a diversified
portfolio of stocks with a focus on what we believe are attractively valued companies with above average current income or dividend growth. We use an integrated, multi-perspective research and analysis approach that involves a team of portfolio
managers, fundamental research analysts and quantitative analysts. The Fund’s holdings exhibit attractive valuations and identifiable catalysts that we believe will offer the potential for future stock appreciation. The Fund is also actively
managed in an effort to minimize distributed capital gains and maximize after-tax returns using a typical investment horizon of at least two to three years. We adhere to portfolio guidelines to manage volatility and maintain diversification,
generally selling a security if it no longer is expected to meet our dividend growth or price appreciation expectations or if we find a better alternative in the marketplace.
The Fund’s underperformance versus the Russell 1000® Value benchmark and Lipper peers was primarily the result of stock selection in the financial, communication services and consumer discretionary
sectors. An underweight position in the consumer staples sector was also detrimental. On the other hand, the Fund saw favorable results from security selection in the health care and real estate sectors. An overweight position in information
technology also aided results.
The financial sector as a
whole was one of the hardest hit during the reporting period as credit risks escalated after many businesses were forced to shut down across the nation in an attempt to curb the COVID-19 crisis. Stock selection in the sector was the most significant
detractor in the Fund, including positions in Discover Financial Services and Capital One Financial Corp, which both offer credit cards, various types of auto, home equity and personal loans, banking and savings accounts. The firms reported
impressive results when they released fourth-quarter 2019 earnings earlier in the reporting period. However, both companies detracted because of stress on the consumer credit markets as many local businesses across the nation were forced to shut
down and lay off workers during March 2020. Despite the poor stock performance in the reporting period, we continued to hold both Discover Financial and Capital One because we believe the companies’ underwriting discipline continues to be
strong.
The Fund also saw weak results from a position
in Starwood Property Trust Inc., a leading non-bank commercial real estate finance company, as fears increased regarding the credit risk of its commercial loans. Fourth-quarter 2019 results were stable with earnings continuing to exceed dividend
payments. However, due to commercial credit exposure, liquidity concerns in the commercial mortgage-backed securities (CMBS) market and leverage in the business model, investors feared the company would be unable to meet margin calls along with
negative credit marks within its commercial lending portfolio. We continued to hold a position in Starwood Property because the company has a diverse portfolio and its stock trades at a large discount to its historic average.
Along with many other banks, our position in Citigroup Inc.
underperformed because of the impact from materially lower interest rates and fears of write-downs on loan products. Prior to the economic headwinds, Citigroup had posted strong fourth-quarter 2019 earnings showing strength in its Institutional
Clients Group and improved credit quality. We continued to hold Citigroup in the Fund’s portfolio because we believe the company is well positioned for a rebound in the financial markets.
The Fund also saw poor results from Hartford Financial
Services Group Inc., a provider of commercial and personal property and casualty insurance as well as wealth management products. The worker’s compensation business is facing headwinds with added claims related to the COVID-19 crisis, coupled
with lost premiums due to rising unemployment. However, on the positive side, the company’s auto insurance business is expected to benefit with fewer cars on the road due to business shutdowns. The integration of specialty insurer Navigators
Group has also been improving Hartford Financial’s underwriting margins and remains a long-term catalyst for the business. We continued to hold this position in the Fund’s portfolio.
The communication services sector also detracted from relative
performance during the reporting period. The Fund held an underweight position in Verizon Communications Inc. for much of the reporting period, however, the stock was a relative outperformer within the Russell 1000® Value Index. As of the end of the reporting period, we continued to hold Verizon given its attractive yield and lower risk profile, but remain
underweight in the uncertain environment. We view the position as a source of cash in the event we find more attractive opportunities and/or start to see a more robust cyclical rebound. Media and television giant Comcast Corp was also a detractor in
the communication services sector. The stock was a significant outperformer during March 2020 with the market favoring defensive names as the COVID-19 pandemic spread. However, the Fund had no exposure to the stock until we initiated a position at
the end of the reporting period in late March 2020. Comcast provided an update on the impact COVID-19 is having and outlined that the most significant impacts were on its smaller segments, while its cable business was performing well. We continued
to hold Comcast as a defensive play.
The consumer
discretionary sector detracted as our travel and leisure-related holdings were negatively impacted by the temporary closures of resorts and casinos and the near complete shutdown of air travel due to the COVID-19 crisis. Within the sector, the
Fund’s most significant detractors were high-end hotel and casino operator Wynn Resorts Limited and online travel agency Expedia Group Inc. Prior to the outbreak, Wynn Resorts had announced improving demand trends in China’s gaming
enclave of Macau. However, given the level of uncertainty around when travel would return to pre-virus levels, we exited the position. Expedia’s shares plunged in November 2019 after the company reported second-quarter 2019 results that were
generally below expectations and provided disappointing forward guidance. We exited the Fund’s position in Expedia earlier in the reporting period.
Although consumer discretionary detracted overall, the sector
was also home to one standout performer, Target Corporation, which has been a relative beneficiary of the COVID-19 crisis. Prior to the crisis, Target was demonstrating some weakness following softer holiday season comparisons in categories such as
toys and electronics. However, the stock rebounded as stay-at-home orders were implemented and sales in March and April 2020 were strong led by the food and essentials categories as well as the shift to online pickup and delivery orders. In the near
term, margins may be pressured slightly given the sales mix shift to food and essentials and short-term increases in wages. However, we view Target as a relative winner within retail given its market position, scale and online capabilities and
optimization efforts. We continue to hold Target in the Fund.
Within the energy sector, the Fund saw weak results from
Chevron Corporation, a producer and transporter of crude oil and natural gas, and Parsley Energy Inc., a Permian basin shale drilling company. The entire sector faced significant headwinds during the reporting period as demand for oil dropped
precipitously due to the shutdowns related to the crisis, while a price war erupted between Russia and Saudi Arabia that added to an already existing supply glut. The price of crude fell to multi-decade lows. We believed energy sector fundamentals
would remain challenged and given the heightened uncertainty and supply/demand headwinds, we eliminated the Fund’s positions in Chevron and Parsley Energy. The Fund had no exposure to energy at the end of the reporting period.
During this difficult and volatile time frame, the health care
sector was the standout performer in the index and the Fund’s holdings outpaced the sector. The majority of the outperformance occurred prior to the COVID-19 induced sell-off. Although health care was not immune from losses during the
sell-off, the defensive nature of the sector helped the group hold up better than the overall market. In particular, several of the Fund’s managed care holdings, which included Humana Inc., UnitedHealth Group Inc. and Cigna Corporation,
benefited from regulatory commentary out of Washington that was better than feared, which caused a rally in the sector. Humana
Portfolio Managers’ Comments (continued)
also posted a quarterly earnings report with management increasing its
expectations of individual Medicare Advantage membership growth. UnitedHealth reported fiscal third-quarter 2019 results that were ahead of Wall Street expectations, and management raised its outlook as the company’s medical loss ratio (MLR -
A basic financial measurement used in the Affordable Care Act to encourage health plans to provide value to enrollees.) came in better than expected. The company’s health services segment, Optum, is its fastest-growing segment and will soon be
its most profitable. Cigna also advanced following solid earnings results as the company beat expectations and raised guidance. The earnings beat was driven by a modest MLR beat and a ramp up in the company’s pharmacy benefit manager business.
We continued to hold positions in Humana, UnitedHealth Group and Cigna at the end of the reporting period.
Also in health care, the Fund benefited from positions in two
pharmaceutical firms, Gilead Sciences Inc. and AstraZeneca PLC. Gilead Sciences is a leader in the development and marketing of anti-infective drugs with approved products for the treatment of HIV/AIDS, hepatitis C, hepatitis B and pulmonology
diseases. Shares benefited from the COVID-19 crisis as the company worked on Remdesivir, an experimental antiviral drug that is supposed to help treat symptoms of the virus. The Fund no longer holds Gilead Sciences in the portfolio. AstraZeneca
initially reported a miss on earnings because of higher-than-expected expenses to support new product launches and one-time charges. However, the stock recovered quickly and ended up being a strong relative performer during the reporting period. We
continued to hold this stock in our portfolio.
In the
real estate sector, wireless infrastructure-based real estate investment trust (REIT) Crown Castle International Corp. performed strongly during the reporting period. The company reported mixed fourth-quarter 2019 revenue due to a new way it is
accounting for tower installation revenue. Although the stock dropped on the confusion initially, it was able to quickly recover as investors gained clarity and remained optimistic regarding the company’s deal with T-Mobile. At the end of the
reporting period, investors were encouraged after the company reported no material impact on its business from the COVID-19 crisis. We continued to hold Crown Castle in the Fund’s portfolio because the company is well positioned to benefit
from the continuing need for wireless capacity in the U.S.
In the information technology sector, the Fund’s
position in Fidelity National Information Services Inc. outperformed. Its Worldpay acquisition that closed in 2019 is providing both cost and revenue synergies, enhancing payment offerings and increasing the company’s overall distribution
footprint. Fidelity National is one of the more resilient financial technology organizations. Therefore, we have kept the company in the Fund’s portfolio.
We also saw favorable results from a position we initiated in
January 2020 in Intel Corporation, which designs, manufactures and sells computer components. Shares outperformed after the company posted solid fourth-quarter 2019 and first-quarter 2020 earnings reports. Intel continues to improve manufacturing
processes and see strength from data center and web scale demand for server chips. We continued to hold Intel in the Fund’s portfolio.
Nuveen Mid Cap Value Fund
How did the Fund perform during the six-month reporting period
ended April 30, 2020?
The tables in the Fund Performance
and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year, ten-year and/or since inception periods ended April 30, 2020. Comparative performance information is provided for the Fund’s
Class A Shares at net asset value (NAV) only. The Fund’s Class A Shares at NAV underperformed the Russell Midcap® Value Index and the Lipper
Mid-Cap Core Funds Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting
period and how did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by
investing primarily in the common stocks of companies with market capitalizations at the time of purchase between approximately $1 billion and $38 billion, which is based on the June 28, 2019 annual reconstitution of the Russell Midcap® Index. During the reporting period, we continued to implement the Fund’s investment process of selecting mid-cap companies that we believed were
undervalued relative to other companies in the same industry or market. These companies demonstrated or are expected to demonstrate improving fundamentals and have an identifiable catalyst that could close the gap between market value and our
perception of fair value. We look for companies that generate strong free cash flow, which allows them to pay down debt, increase dividends, repurchase shares or engage in merger and acquisition (M&A) activities. At the same
time, we identify a short- or long-term catalyst we can track and monitor over
time that could potentially propel each stock to realize its value. Generally, we sell a holding if the stock price reaches its target, the company’s fundamentals or competitive position significantly deteriorate or if a better alternative
exists in the marketplace.
The Fund’s
underperformance versus the Russell benchmark and Lipper peer was primarily due to stock selection in the industrials, energy and communication services sectors. An underweight position in consumer staples also detracted. In industrials, the entire
airline industry was significantly disrupted in early 2020 as the COVID-19 crisis caused unprecedented travel restrictions. In response, airline traffic fell roughly 90% compared to last year, forcing airlines to begin cutting capacity and
management to focus on liquidity. The Fund’s position in United Airlines Holdings Inc. was sold in late April 2020, to reduce exposure to travel-related stocks. Alaska Air, a major U.S. airline with a focus in the Pacific Northwest and Alaska,
guided to a loss of roughly $200 million per month by June 2020 with expectations of break even by year end. While expectations are for stabilization and even some recovery, Alaska Air is expected to report losses in 2020, however, we continued to
own Alaska Airlines given its geographical footprint, strong balance sheet position and lower cost profile compared to larger carriers.
In the energy sector, shares plunged across the sector as
lower global demand was exacerbated by the COVID-19 crisis, while Russia and Saudi Arabia engaged in a price war. As a result, crude oil prices dropped to their lowest level in nearly 20 years. Two of the Fund’s exploration and production
holdings, Marathon Oil Corporation and Devon Energy Corporation, were notable detractors within the sector. We sold the Fund’s positions in both Marathon Oil and Devon Energy.
In the communication services sector, a position in TEGNA,
Inc. detracted. The company owns and operates broadcast television stations in more than 50 markets throughout the U.S. Fundamentals proved resilient during the first quarter 2020 with positive contributions from political advertising spending, but
has since slowed with advertising spending in general decelerating. TEGNA has recently been an M&A target, receiving multiple bids from other media and private equity entities; however due to the economic uncertainty, these deals are currently
on hold. Additionally, the company has been in an ongoing battle with an activist investor. Although the stock outperformed during the March 2020 sell-off, the shares have not recovered with the market. We continued to own TEGNA given the
company’s strong portfolio of assets across top markets throughout the U.S. as well its strong digital business.
The financial sector as a whole was one of the hardest hit
sectors as credit risks escalated after many businesses were forced to shut down across the nation in an attempt to curb the COVID-19 crisis. The Fund saw weak results from a position in Starwood Property Trust Inc., a leading non-bank commercial
real estate finance company, as fears increased regarding the credit risk of its commercial loans. Fourth-quarter 2019 results were stable with earnings continuing to exceed dividend payments. However, due to commercial credit exposure, liquidity
concerns in the commercial mortgage-backed securities (CMBS) market and leverage in the business model, investors feared the company would be unable to meet margin calls along with negative credit marks within its commercial lending portfolio. We
continued to hold a position in Starwood Property because the company has a diverse portfolio and its stock trades at a large discount to its historic average.
The Fund also saw poor results from Radian Group Inc. due to
its private mortgage insurance exposure. The stock came under pressure as part of the broader COVID-19 related sell-off as investors considered the likelihood of a substantial gap in home buying, despite low interest rates. Expectations are for
lower earnings in 2020 because of lower growth and higher loss ratios due to the macroeconomic backdrop. Additionally, management has suspended current share repurchases for the remainder of 2020. Radian was a new position during the reporting
period, and we continued to own the stock given the steps management has taken to reduce economic risks and the company’s attractive valuation profile.
The financial sector was also home to one favorable performer,
Nasdaq Inc. The market services and exchange company performed well late in 2019 and into 2020 despite the broad market sell-off. Nasdaq reported fourth-quarter 2019 operating results that were well ahead of expectations and started 2020 with strong
operational momentum, listing 27 initial public offerings before the virus outbreak. Management anticipates the non-trading business to be met with short-term headwinds related to a slowdown of business-related investments from customers due to the
COVID-19 crisis. However, we continued to own Nasdaq in the Fund given our confidence in the longer-term strategy of the business.
Also on the positive side of the equation, the Fund benefited
from stock selection in the information technology, real estate and consumer discretionary sectors. The technology sector was the Fund’s top performing area, led by shares of Synopsys Inc., a software de-
Portfolio Managers’ Comments (continued)
veloper primarily for the semiconductor industry. The company reported a
strong first-quarter earnings result in February 2020 driven by its electronic design automation (EDA) segment, which management noted has experienced negligible effects from the COVID-19 crisis. We continued to own Synopsys.
Also, semiconductor manufacturer Marvell Technology Group Ltd.
contributed favorably to the Fund’s relative performance. The company reported a solid fourth-quarter 2019 earnings result driven by better-than-expected storage revenue and a strong 5G ramp into Samsung. Expectations for the storage business
remained strong given a PlayStation upgrade cycle later in the year. Additionally, the company announced a partnership with Nokia to continue expanding its 5G business. Given Marvell’s exposure to 5G, we continued to own shares.
The Fund also benefited from a position in VeriSign Inc., a
provider of domain registry services that enable security and stability of internet infrastructure. Although the domain business has reached a mature, steady growth rate, the company has been able to maintain pricing power. This factor, coupled with
margin expansion and share repurchases, allowed VeriSign to report more than 20% earnings growth in 2019. While the stock sold off with the broader market in March 2020, it was able to quickly recover as the domain business has so far been minimally
impacted by the coronavirus-related economic downturn. We continued to hold shares in VeriSign.
The Fund also experienced strength from Autodesk Inc., the
well-known designer of software for the architecture, engineering and manufacturing industries. The company wrapped up a strong 2019 with above-average fourth-quarter results, reporting revenue and earnings above consensus as well as accelerated
free cash flow growth. While management noted potential macroeconomic disruptions, investors likely believed that Autodesk’s long-term free cash flow growth opportunity outweighed the near-term uncertainty, and the stock recovered most of it
losses from the March 2020 sell-off. We sold the Fund’s position at the end of the reporting period given the stock’s premium valuation.
Stock selection in the real estate sector was strong, led by a
position in Digital Realty Trust Inc., a data center focused real estate investment trust (REIT). The data center industry was one of the top-performing industries during the reporting period because demand remained strong despite the economic
slowdown. The company closed on its planned acquisition of Interxion, a Netherlands-based data center company, which helps increase its European exposure. Given the secular demand for data centers, Digital Realty remained one of the Fund’s top
positions.
Unfortunately, the real estate sector was
also home to one detractor of note, New York-based SL Green Realty Corp. The company is heavily invested in the New York metro area, where investors were uncertain about future cash flows given the broad shutdown in the city due to COVID-19 crisis.
Despite the near-term headwinds, we continued to own SL Green given the company’s high quality and diversified portfolio and its strong liquidity position.
The consumer discretionary sector had several stocks that
contributed favorably to relative performance led by discount store operator Dollar General Corporation and electronics retailer Best Buy Co. Inc. Although shares of Dollar General were flat at the end of 2019 and into January 2020, they held up
well during the broad market sell-off. As a seller of both household products and food supplies at cheaper prices, the company benefited from purchasing shifts caused by the pandemic. Dollar General reported fourth-quarter 2019 results that were
ahead of consensus, while management also guided to the higher end of expectations and noted virtually no negative impact from the crisis. We continued to own shares given the company’s defensive business.
Despite concerns that tariffs and a late economic cycle could
potentially derail the company’s success, shares of Best Buy Co. Inc. rallied during the first half of the reporting period. Best Buy also raised its outlook for the holiday season as the company continued to gain market share. Although shares
sold off sharply in March 2020, they rallied back fairly strongly through the end of April 2020. We continued to own Best Buy in the Fund’s portfolio.
Although the Fund benefited from stock selection in the
consumer discretionary sector, travel related stocks such as Royal Caribbean Cruises Ltd. came under pressure due to the substantial drop in travel demand because of the ongoing coronavirus. We exited Royal Caribbean given the company’s
shutdown of all cruises for the foreseeable future.
The health care sector was home to several standouts,
including managed care provider Centene Corp. The stock held up well following an inline fourth-quarter 2019 earnings report. The company is levered toward Medicaid and the Health Insurance Marketplace, and may experience enrollment tailwinds in the
coming months given the large number of individuals being laid off as a result of the coronavirus crisis. The company is also experiencing near-term tailwinds, given a drop in elective procedures. We continued to own a significant position in
Centene given its underlying fundamentals and attractive valuation to peers.
Also within the health care sector, United Therapeutics
Corporation, a commercial-stage biotechnology company, contributed to relative performance. The company’s drug platform is focused on pulmonary arterial hypertension, interstitial lung disease and chronic obstructive pulmonary disease. The
stock has been under pressure for several years because the company’s primary drug, Remodulin, faced generic competition in 2019. However, with two new product line extensions expected in 2020, consensus expectations are for the Remodulin
franchise to grow at least through 2021. Also, the firm’s product pipeline is very active in 2020, which we continue to believe will serve as a positive catalyst. We also don’t believe the COVID-19 crisis will have a significant impact
on demand for its products. Given the expected pipeline extensions and compelling valuation, we continued to own United Therapeutics.
Nuveen Small Cap Value Fund
How did the Fund perform during the six-month reporting period
ended April 30, 2020?
The tables in the Fund Performance
and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year, ten-year and /or since inception periods ended April 30, 2020. Comparative performance information is provided for the Fund’s
Class A Shares at net asset value (NAV) only. The Fund’s Class A Shares at NAV underperformed the Russell 2000® Value Index and the Lipper
Small-Cap Value Funds Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting
period and how did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by
investing primarily in the common stocks of companies within the Russell 2000® Index, which has a market capitalization range of $40.0 million to
$10.3 billion based on the June 28, 2019 annual reconstitution. During the reporting period, we continued to focus on building a well-diversified portfolio of small-cap stocks from companies with strengthening balance sheets and free cash flow
characteristics. We also continued to target companies with sound business models and strong competitive advantages that we believe can gain market share opportunistically in the current environment. We remained committed to our approach of
investing in quality companies that are trading at a discount to both intrinsic and relative value metrics.
Shutting down the U.S. economy in an effort to stop the spread
of the COVID-19 coronavirus hit the small-cap segment hard, particularly the Russell 2000® Value benchmark. The value component of the Russell 2000® underperformed growth by nearly 16% during the reporting period for two main reasons. First, the top performing, while still negative health care
sector represents a significantly smaller weight in the value benchmark. Second, the value benchmark had more cyclical exposure, which was harmful as high yield fixed income spreads blew out to levels not witnessed since the 2008 financial crisis.
We also witnessed an unprecedented gap in valuations between small-cap value and small-cap growth stocks across all sectors. This valuation differential was due to uncertainty surrounding the depth and duration of the pandemic-induced downturn and
the timing and slope of the eventual economic recovery.
The Fund benefited from its focus on companies with larger
market caps, lower leverage and less volatility within the small-cap universe. However, stocks with lower price-earnings ratios did not hold up well during the reporting period, which hindered performance. Stock selection also detracted in the
financial, consumer discretionary and energy sectors.
The Fund’s financial services holdings bore the brunt of
the COVID-19 crisis, which brought relatively indiscriminate selling among regional banking shares and companies levered to consumer credit and housing finance. Two holdings in the mortgage real estate investment trust (REIT) area were the
Fund’s most significant detractors. The first, Invesco Mortgage Capital Inc., invests in an array of mortgage-backed securities across multiple asset classes backed by commercial and residential mortgage loans. Fourth-quarter 2019 results for
this firm were strong and management had recently increased the dividend by 11%. However, market disruptions due to
Portfolio Managers’ Comments (continued)
COVID-19 had a more severe impact on this company’s business model.
Liquidity requirements forced Invesco Mortgage to enter into short-term forbearance talks with its financing counterparties and delay payment of its quarterly dividend. We liquidated the Fund’s position as uncertainty regarding book value and
dividend clarity violated our catalyst thesis.
The
second holding in this area, Ladder Capital Corporation, maintains a commercial real estate portfolio consisting of direct loans, direct real estate investment and commercial mortgage-backed securities (CMBS). The company’s fourth-quarter 2019
results were stable with earnings exceeding the dividend by 15%. However, investors and exchange-traded funds (ETFs) feared that Ladder Capital would be unable to continue generating similar results because of its commercial credit exposure,
liquidity concerns in the CMBS market and leverage being utilized. The downside was exacerbated as levered ETFs were forced to liquidate positions into an illiquid market. Ladder Capital currently trades at a large discount to peers. We are
maintaining a small position in anticipation of improved confidence in the company’s ability to maintain both its portfolio liquidity and its dividend payout as the economy moves through this transitional down draft.
On the other hand, the financial sector was home to one
standout performer, AMERISAFE Inc., a property and casualty underwriter specializing in workers compensation. The company reported strong quarterly results with earnings beating street estimates. Also, commentary for the remainder of 2020 remained
upbeat, resulting in positive estimate revisions and potential for another sizable special dividend. AMERISAFE has weathered the COVID-19 market disruption well due to the company’s conservative balance sheet and reserving methodology,
resulting in outperformance of the shares. Therefore, we maintained our position given the company’s superior fundamentals relative to its peers.
In the consumer discretionary sector, two of the Fund’s
specialty retail positions underperformed. Aaron’s Inc., a rent-to-own retailer that offers short-term financing via its Progressive arm, saw its shares decline. Investors grew concerned about the impact of a weak energy market given the
company’s exposure to Texas and other oil-patch states, along with the impact of the shutdown on its key customers. Aaron’s has been active in updating investors on its credit portfolio performance along with general demand trends. Also,
its relationships with retailers Best Buy and Lowe’s are proving beneficial. We remained investors in Aaron’s because we believe the firm will manage successfully through this volatility given the government’s focus on assisting
lower-income consumers, the company’s key clientele.
Also, in the consumer discretionary sector, the Fund saw weak
results from G-III Apparel Group Ltd., a branded-specialty apparel and accessories wholesaler and retailer. The company underperformed during the reporting period due to the COVID-19 crisis impact as retailers closed throughout the nation. The
market is concerned that all retailers face difficult liquidity conditions given the uncertainty of the shutdown. However, G-III Apparel maintains a solid liquidity position, providing protection over the next two to three years. We remained holders
of G-III Apparel given the aggressive actions that the Federal Reserve and Congress have taken to provide a backstop during the shutdown, creating a bridge for U.S. consumers to recover and the potential for a rebound in this attractive
franchise’s valuation.
The energy sector was also
a source of weakness in the Fund. The oil industry was hammered as demand dropped precipitously due to the shutdowns related to the pandemic, while a price war erupted between Russia and Saudi Arabia that added to an already existing supply glut.
The price of West Texas Intermediate (WTI) crude fell to an 18-year low of around $20 per barrel. Two of the Fund’s holdings were particularly weak. Helix Energy Solutions Group Inc. is the leading provider of offshore well intervention rigs
and services that enable global exploration and production (E&P) operators to cost effectively improve the performance of existing offshore wells. We originally invested in the stock because the company was completing its final new rig
construction and showing solid utilization from its remaining six rigs. Capital expenditures were dropping dramatically with Helix’s newly minted rig showing backlog growth, leading to our strong conviction in the company’s future free
cash flow. However, we exited this position because our investment thesis of improving market positioning and cash flow growth deteriorated.
The second energy sector detractor, SM Energy Company, is a
diversified E&P firm with primary operations in Midland (Permian basin) and south Texas (Eagle Ford). Although the company demonstrated improvement in cash flow generation through increased efficiency in the Permian basin, its stock came under
pressure because SM Energy maintains above-average industry leverage. Despite having
hedged price protection in 2020, we were concerned about the company’s
ability to satisfy debt maturities in 2021, given the anticipated duration of the negative impact on oil prices from the dramatic supply/demand imbalance. Consequently, we sold SM Energy as part of our strategic plan to lower the Fund’s
exposure to levered business models in the energy sector.
The health care sector fared much better than the broad market
during the reporting period and was the best performing, although still negative, sector in the index and Fund. The Fund experienced relative strength from Prestige Consumer Healthcare Inc., an over-the-counter (OTC) specialty pharmaceutical company
focused on brand name solutions for acute health care issues. Some of the company’s key brands include Compound W for warts, Clear Eyes for dryness and redness and Luden’s for cough and cold symptoms. All of Prestige Consumer’s
primary distribution channels remained open during the COVID-19 crisis. We’ve continued to maintain the position.
Also within the health care sector, United Therapeutics
Corporation, a commercial-stage biotechnology company, contributed to relative performance. The company’s drug platform is focused on pulmonary arterial hypertension, interstitial lung disease and chronic obstructive pulmonary disease. The
stock has been under pressure for several years because the company’s primary drug, Remodulin, faced generic competition in 2019. However, with two new product line extensions expected in 2020, consensus expectations are for the Remodulin
franchise to grow at least through 2021. Also, the firm’s product pipeline is very active in 2020, which we continue to believe will serve as a positive catalyst. Within the context of the COVID-19 crisis, it is possible the company’s
business may experience some minimal disruption, but we don’t see it having a direct impact on demand for its products. Given these factors and the stock’s compelling valuation, we continued to own United Therapeutics.
The information technology sector was also home to two
standout performers. Radware Ltd. is a leading global provider of cyber security and web application delivery solutions to service provider and large enterprise clients. The stock outperformed on a relative basis due to the anticipated durability of
the firm’s business model. Radware is seeing increased demand for its network security and application delivery products to support the rapid increase in network traffic due to the transition of many employees and students to remote work
environments. The firm reported an inline fourth-quarter 2019 with guidance for continued double-digit growth in subscription revenue. Radware continues to generate solid margins and cash flow while returning excess capital to shareholders as it
transitions to a subscription-based model with increasing reoccurring revenue. Accordingly, we believed the market was continuing to overly discount the stock and remained invested.
Also in the technology sector, the Fund benefited from a
position in Alarm.com Holdings Inc., a leading provider of wireless and subscription-based security system technology primarily for the residential professionally installed security market. The company’s products, which are sold through home
security dealers, enable mobile access to home security systems and professional monitoring. The stock outperformed relative to the broader software and technology sectors because of stability of its model, continued double-digit growth in
subscribers and strong margin profile. We continued to hold Alarm.com based on its attractive relative value versus its secular growth profile, in conjunction with management showing traction in the exciting and emerging commercial security
market.
Performance results were mixed in the industrial
sector where the Fund saw favorable performance from Air Transport Services Group Inc., offset by weak results from SP Plus Corporation. Air Transport primarily leases aircrafts to airfreight companies and provides additional services around core
leasing. The company’s fourth-quarter 2019 report showed a constructive outlook for 2020 with cautious optimism from management. Air Transport’s business model is somewhat more defensive because it is less exposed to shipping volumes,
although decreased utilization will have some negative impact. The company’s military business may experience some near-term weakness as troop movement will decline while supply demand will be stable. Although we’ve maintained this
position, we are reassessing on an ongoing basis.
SP
Plus provides parking management, ground transportation and other ancillary services to commercial, institutional and municipal clients. The company’s fourth-quarter 2019 report was slightly short of expectations while guidance was inline.
Although the company’s business model has historically tended to be more defensive, shares have underperformed since the COVID-19 crisis. Management is lowering costs through a variety of ways. We believe SP Plus can weather the storm and have
maintained our position, but continue to monitor the situation.
Similarly in the materials sector, the Fund benefited from a
position in Minerals Technology Inc., offset by weakness from Allegheny Technologies Inc. Minerals Technology is a provider of specialty materials to a broad end market base on a global scale, from paper
Portfolio Managers’ Comments (continued)
and auto parts manufacturing to household and environmental remediation
products. The stock held up better than the overall materials segment because of the relative stability of the company’s end markets in conjunction with management’s continued ability to improve the margin and cash flow profile of the
business through cost efficiencies and debt reduction. Historically, management has been successful in acquiring businesses that enhance the overall business model while building product extensions from the company’s strong raw material
positioning in both bentonite and calcium carbonate. We remained invested in this long-term holding.
On the other hand, we saw weak results from Allegheny
Technologies, the leading provider of specialty alloy products to primarily the aerospace and defense industry. Despite improvements in its overall positioning and financial strength through the disposition of non-core assets for cash, the company
underperformed the broader materials sector because of exposure to the commercial aircraft engine market. Headwinds from the Boeing 737 Max production halt and COVID-19 crisis have caused Allegheny Technologies to shutter capacity and cut fixed cost
overhead. We trimmed the Fund's exposure and continue to monitor prospects for growth into 2021 and beyond.
In the real estate sector, the Fund saw positive results from
Lexington Realty Trust. This formerly diversified REIT has recently been shifting its focus toward industrial properties, which now represent more than 69% of rental income. We entered this position during the second half of 2019 given its improving
balance sheet, diversified client base and shift toward the highly valued industrial property segment. As investors sought out more defensive opportunities, this stock has outperformed. We have maintained the Fund’s position in Lexington
Realty. On the other hand, a position in Summit Hotel Properties Inc., a REIT focused on hotels and lodging, did not hold up well during the reporting period. While shares declined substantially in the face of dwindling occupancy and travel, we
continued to maintain the Fund’s position in light of the company’s high quality management team and its focus on value-based property acquisition and management.
Finally, in the communication services sector, the Fund
experienced poor results from Meredith Corporation, a publishing and broadcasting firm with key brands such as People, Better Homes & Garden, InStyle, Southern Living and Shape distributed via subscription, convenience locations and online. The
firm also owns 17 television stations. Given the shutdown of many outlets that distributed Meredith’s publications and softening in advertising revenues near term, we exited the position in 2020 to shift the Fund’s communication services
exposure to a pure-play broadcaster, TEGNA Inc.
Nuveen
Dividend Value Fund
Mutual fund investing involves risk;
principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Dividends are not guaranteed. Prices of equity securities may decline significantly over short or
extended periods of time. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are
magnified in emerging markets. These and other risk considerations, such as credit, derivatives, high yield securities, and interest rate risks, are described in detail in the Fund’s prospectus.
Nuveen Mid Cap Value Fund
Mutual fund investing involves risk; principal loss is
possible. There is no guarantee the Fund’s investment objectives will be achieved. Prices of equity securities may decline significantly over short or extended periods of time. Investments in mid-cap companies are subject to greater volatility than those of larger companies, but may be less volatile than investments in smaller companies. Non-U.S. investments involve
risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk
considerations, such as derivatives risk, are described in detail in the Fund’s prospectus.
Nuveen Small Cap Value Fund
Mutual fund investing involves risk; principal loss is
possible. There is no guarantee the Fund’s investment objectives will be achieved. Prices of equity securities may decline significantly over short or extended periods of time. Investments in smaller companies are subject to greater volatility than those of larger companies. Non-U.S. investments involve risks such as currency fluctuation, political and economic
instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk considerations, such as derivatives risk, are described in detail
in the Fund’s prospectus.
THIS PAGE INTENTIONALLY LEFT BLANK
Fund Performance and Expense Ratios
The Fund
Performance and Expense Ratios for each Fund are shown within this section of the report.
Fund Performance
Returns quoted represent past performance, which is no guarantee
of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the
performance shown.
Total returns for a period of
less than one year are not annualized (i.e. cumulative returns). Since inception returns are shown for share classes that have less than 10-years of performance. Returns at net asset value (NAV) would be lower if the sales charge were included.
Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund Shares.
Returns may reflect fee waivers and/or expense reimbursements
by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with
Affiliates for more information.
Returns reflect
differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided
for Class A Shares at NAV only.
Expense Ratios
The expense ratios shown are as of the Fund's most recent
prospectus. The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any). The expense ratios include management fees and other fees and expenses.
Fund Performance and Expense Ratios (continued)
Nuveen Dividend Value Fund
Refer
to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this
section.
Fund Performance and Expense Ratios
|
Total
Retuns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
10-Year
|
Expense
Ratios |
Class
A Shares at NAV |
12/18/92
|
(17.01)%
|
|
(14.35)%
|
3.09%
|
7.67%
|
1.11%
|
Class
A Shares at maximum Offering Price |
12/18/92
|
(21.80)%
|
|
(19.29)%
|
1.87%
|
7.04%
|
-
|
Russell
1000® Value Index |
-
|
(13.66)%
|
|
(11.01)%
|
3.90%
|
8.54%
|
-
|
S&P
500® Index |
-
|
(3.16)%
|
|
0.86%
|
9.12%
|
11.69%
|
-
|
Lipper
Equity Income Funds Classification Average |
-
|
(12.10)%
|
|
(9.35)%
|
4.19%
|
8.25%
|
-
|
Class
C Shares |
2/01/99
|
(17.36)%
|
|
(14.99)%
|
2.32%
|
6.87%
|
1.86%
|
Class
R3 Shares |
9/24/01
|
(17.15)%
|
|
(14.59)%
|
2.82%
|
7.41%
|
1.36%
|
Class
I Shares |
8/02/94
|
(16.98)%
|
|
(14.13)%
|
3.34%
|
7.94%
|
0.86%
|
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
|
Inception
date |
6-Month
|
|
1-Year
|
5-Year
|
Since
Inception |
Expense
Ratios |
Class
R6 Shares |
2/28/13
|
(16.85)%
|
|
(13.96)%
|
3.48%
|
6.84%
|
0.72%
|
*
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales
charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten
years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the
prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Nuveen Mid Cap Value Fund
Refer
to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this
section.
Fund Performance and Expense Ratios
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
10-Year
|
|
Gross
|
Net
|
Class
A Shares at NAV |
12/22/87
|
(19.74)%
|
|
(17.12)%
|
2.08%
|
6.47%
|
|
1.27%
|
1.17%
|
Class
A Shares at maximum Offering Price |
12/22/87
|
(24.36)%
|
|
(21.89)%
|
0.87%
|
5.85%
|
|
-
|
-
|
Russell
Midcap® Value Index |
-
|
(18.11)%
|
|
(16.74)%
|
1.99%
|
8.09%
|
|
-
|
-
|
Lipper
Mid-Cap Core Funds Classification Average |
-
|
(15.08)%
|
|
(13.87)%
|
1.76%
|
7.24%
|
|
-
|
-
|
Class
C Shares |
2/01/99
|
(20.05)%
|
|
(17.75)%
|
1.31%
|
5.68%
|
|
2.02%
|
1.92%
|
Class
R3 Shares |
9/24/01
|
(19.83)%
|
|
(17.31)%
|
1.82%
|
6.21%
|
|
1.52%
|
1.42%
|
Class
I Shares |
2/04/94
|
(19.64)%
|
|
(16.90)%
|
2.33%
|
6.74%
|
|
1.02%
|
0.92%
|
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
Since
Inception |
|
Gross
|
Net
|
Class
R6 Shares |
6/20/18
|
(19.58)%
|
|
(16.79)%
|
(10.61)%
|
|
0.87%
|
0.77%
|
*
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales
charge (CDSC) of 1%, if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares
ten years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in
the prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
**
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2021, so that total annual fund operating expenses (excluding 12b-1 distribution and/or service fees,
interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing or portfolio securities and extraordinary expenses) do not exceed 0.92% of the average daily net assets of any class of Fund shares. However, because
Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. This expense limitation may be terminated or modified prior to that
time without the approval of the Board of Directors of the Fund.
Fund Performance and Expense Ratios (continued)
Nuveen Small Cap Value Fund
Refer
to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this
section.
Fund Performance and Expense Ratios
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
10-Year
|
|
Gross
|
Net
|
Class
A Shares at NAV |
8/01/94
|
(28.60)%
|
|
(31.35)%
|
(2.45)%
|
5.19%
|
|
1.28%
|
1.20%
|
Class
A Shares at maximum Offering Price |
8/01/94
|
(32.70)%
|
|
(35.31)%
|
(3.60)%
|
4.57%
|
|
-
|
-
|
Russell
2000® Value Index |
-
|
(23.44)%
|
|
(23.84)%
|
0.30%
|
5.30%
|
|
-
|
-
|
Lipper
Small-Cap Value Funds Classification Average |
-
|
(24.08)%
|
|
(25.66)%
|
(1.54)%
|
4.69%
|
|
-
|
-
|
Class
C Shares |
2/01/99
|
(28.92)%
|
|
(31.89)%
|
(3.18)%
|
4.39%
|
|
2.03%
|
1.95%
|
Class
R3 Shares |
9/24/01
|
(28.72)%
|
|
(31.53)%
|
(2.70)%
|
4.92%
|
|
1.53%
|
1.45%
|
Class
I Shares |
8/01/94
|
(28.53)%
|
|
(31.19)%
|
(2.21)%
|
5.43%
|
|
1.03%
|
0.95%
|
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
Since
Inception |
|
Gross
|
Net
|
Class
R6 Shares |
6/30/16
|
(28.46)%
|
|
(31.06)%
|
(4.25)%
|
|
0.83%
|
0.75%
|
*
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales
charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten
years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories of investors as described in the
prospectus. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
**
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2021, so that the total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees,
interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.99% of the average daily net assets of any class of Fund shares. However, because
Class R6 shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 shares will be less than the expense limitation. This expense limitation may be terminated or modified prior to that
date only with the approval of the Board of Directors of the Fund.
Holding Summaries as of April 30, 2020
This data relates to the securities held in each Fund's
portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Nuveen Dividend Value Fund
Fund
Allocation (% of net assets) |
|
Common
Stocks |
99.7%
|
Money
Market Funds |
2.1%
|
Other
Assets Less Liabilities |
(1.8)%
|
Net
Assets |
100%
|
Portfolio
Composition (% of net assets) |
|
Health
Care Providers & Services |
10.1%
|
Semiconductors
& Semiconductor Equipment |
9.5%
|
Electric
Utilities |
8.0%
|
Diversified
Telecommunication Services |
8.0%
|
Insurance
|
5.4%
|
Capital
Markets |
5.2%
|
Consumer
Finance |
4.4%
|
Banks
|
4.2%
|
Pharmaceuticals
|
4.1%
|
Mortgage
Real Estate Investment Trust |
3.3%
|
Equity
Real Estate Investment Trust |
3.2%
|
Tobacco
|
3.2%
|
Multi-Utilities
|
2.8%
|
IT
Services |
2.8%
|
Multiline
Retail |
2.6%
|
Biotechnology
|
2.4%
|
Aerospace
& Defense |
2.3%
|
Other
|
18.2%
|
Money
Market Funds |
2.1%
|
Other
Assets Less Liabilities |
(1.8)%
|
Net
Assets |
100%
|
Top
Five Common Stock Holdings (% of net assets) |
|
Intel
Corp |
4.8%
|
Verizon
Communications Inc |
4.2%
|
AT&T
Inc |
3.8%
|
Philip
Morris International Inc |
3.2%
|
Dominion
Energy Inc |
2.8%
|
Holding Summaries as of April 30, 2020 (continued)
Nuveen Mid Cap Value Fund
Fund
Allocation (% of net assets) |
|
Common
Stocks |
98.3%
|
Investments
Purchased with Collateral from Securities Lending |
0.2%
|
Money
Market Funds |
1.4%
|
Other
Assets Less Liabilities |
0.1%
|
Net
Assets |
100%
|
Portfolio
Composition (% of net assets) |
|
Equity
Real Estate Investment Trust |
11.5%
|
Electric
Utilities |
6.3%
|
Banks
|
5.3%
|
Multi-Utilities
|
5.2%
|
Household
Durables |
5.0%
|
Insurance
|
4.6%
|
Capital
Markets |
4.2%
|
Oil,
Gas & Consumable Fuels |
3.7%
|
Chemicals
|
3.6%
|
Health
Care Equipment & Supplies |
3.0%
|
IT
Services |
2.6%
|
Machinery
|
2.4%
|
Mortgage
Real Estate Investment Trust |
2.3%
|
Electrical
Equipment |
2.3%
|
Semiconductors
& Semiconductor Equipment |
2.2%
|
Communications
Equipment |
2.2%
|
Health
Care Providers & Services |
2.0%
|
Diversified
Financial Services |
1.9%
|
Aerospace
& Defense |
1.9%
|
Biotechnology
|
1.9%
|
Leisure
Products |
1.8%
|
Food
Products |
1.8%
|
Electronic
Equipment, Instruments & Components |
1.8%
|
Other
|
18.8%
|
Investments
Purchased with Collateral from Securities Lending |
0.2%
|
Money
Market Funds |
1.4%
|
Other
Assets Less Liabilities |
0.1%
|
Net
Assets |
100%
|
Top
Five Common Stock Holdings (% of net assets) |
|
FirstEnergy
Corp |
2.5%
|
Marvell
Technology Group Ltd |
2.2%
|
Zimmer
Biomet Holdings Inc |
2.2%
|
First
Industrial Realty Trust Inc |
2.1%
|
Entergy
Corp |
2.0%
|
Nuveen Small Cap Value Fund
Fund
Allocation (% of net assets) |
|
Common
Stocks |
99.6%
|
Investments
Purchased with Collateral from Securities Lending |
0.0%
|
Money
Market Funds |
0.3%
|
Other
Assets Less Liabilities |
0.1%
|
Net
Assets |
100%
|
Portfolio
Composition (% of net assets) |
|
Banks
|
16.4%
|
Equity
Real Estate Investment Trust |
9.7%
|
Insurance
|
5.0%
|
Semiconductors
& Semiconductor Equipment |
4.2%
|
Thrifts
& Mortgage Finance |
4.1%
|
Electronic
Equipment, Instruments & Components |
3.5%
|
Gas
Utilities |
3.3%
|
Oil,
Gas & Consumable Fuels |
3.0%
|
Household
Durables |
2.9%
|
Software
|
2.9%
|
Capital
Markets |
2.9%
|
Communications
Equipment |
2.6%
|
Construction
& Engineering |
2.5%
|
Professional
Services |
2.5%
|
Auto
Components |
2.4%
|
Metals
& Mining |
2.0%
|
Building
Products |
1.9%
|
Commercial
Services & Supplies |
1.9%
|
Specialty
Retail |
1.9%
|
Multi-Utilities
|
1.8%
|
Food
Products |
1.7%
|
Air
Freight & Logistics |
1.6%
|
Other
|
18.9%
|
Investments
Purchased with Collateral from Securities Lending |
0.0%
|
Money
Market Funds |
0.3%
|
Other
Assets Less Liabilities |
0.1%
|
Net
Assets |
100%
|
Top
Five Common Stock Holdings (% of net assets) |
|
Radware
Ltd |
2.0%
|
Banner
Corp |
1.9%
|
Gibraltar
Industries Inc |
1.9%
|
Cathay
General Bancorp |
1.9%
|
J2
Global Inc |
1.8%
|
As a
shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution
and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in
other mutual funds.
The Examples below are based on an
investment of $1,000 invested at the beginning of the period and held through the period ended April 30, 2020.
The beginning of the period is November 1, 2019.
The information under “Actual Performance,”
together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by
the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,”
provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The
hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do
so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the following tables
are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different
funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Dividend Value Fund
|
Share
Class |
|
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Actual
Performance |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$
829.90 |
$
826.38 |
$
828.55 |
$
831.51 |
$
830.17 |
Expenses
Incurred During the Period |
$
4.96 |
$
8.36 |
$
6.09 |
$
3.14 |
$
3.82 |
Hypothetical
Performance (5% annualized return before expenses) |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,019.44
|
$1,015.71
|
$1,018.20
|
$1,021.43
|
$1,020.69
|
Expenses
Incurred During the Period |
$
5.47 |
$
9.22 |
$
6.72 |
$
3.47 |
$
4.22 |
For each class of the Fund, expenses are equal to the
Fund’s annualized net expense ratio of 1.09%, 1.84%, 1.34%, 0.69% and 0.84% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year
period).
Nuveen Mid Cap Value Fund
|
Share
Class |
|
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Actual
Performance |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$
802.59 |
$
799.47 |
$
801.69 |
$
804.16 |
$
803.58 |
Expenses
Incurred During the Period |
$
5.24 |
$
8.59 |
$
6.36 |
$
3.45 |
$
4.13 |
Hypothetical
Performance (5% annualized return before expenses) |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,019.05
|
$1,015.32
|
$1,017.80
|
$1,021.03
|
$1,020.29
|
Expenses
Incurred During the Period |
$
5.87 |
$
9.62 |
$
7.12 |
$
3.87 |
$
4.62 |
For each class of the Fund, expenses are equal to the
Fund’s annualized net expense ratio of 1.17%, 1.92%, 1.42%, 0.77% and 0.92% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year
period).
Nuveen Small Cap Value Fund
|
Share
Class |
|
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Actual
Performance |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$
713.99 |
$
710.75 |
$
712.77 |
$
715.39 |
$
714.70 |
Expenses
Incurred During the Period |
$
5.11 |
$
8.29 |
$
6.17 |
$
3.24 |
$
4.05 |
Hypothetical
Performance (5% annualized return before expenses) |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,018.90
|
$1,015.17
|
$1,017.65
|
$1,021.08
|
$1,020.14
|
Expenses
Incurred During the Period |
$
6.02 |
$
9.77 |
$
7.27 |
$
3.82 |
$
4.77 |
For each class of the Fund, expenses are equal to the
Fund’s annualized net expense ratio of 1.20%, 1.95%, 1.45%, 0.76% and 0.95% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year
period).
Nuveen Dividend Value Fund
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
LONG-TERM
INVESTMENTS – 99.7% |
|
|
|
|
|
|
COMMON
STOCKS – 99.7% |
|
|
|
|
|
|
Aerospace
& Defense – 2.3% |
|
|
|
|
216,116
|
|
L3Harris
Technologies Inc |
|
|
|
$
41,861,669 |
|
|
Banks – 4.2%
|
|
|
|
|
988,732
|
|
Citigroup
Inc |
|
|
|
48,012,826
|
1,272,761
|
|
KeyCorp
|
|
|
|
14,827,666
|
399,084
|
|
TCF
Financial Corp |
|
|
|
11,848,804
|
|
|
Total
Banks |
|
|
|
74,689,296
|
|
|
Beverages – 2.2%
|
|
|
|
|
1,501,545
|
|
Keurig
Dr Pepper Inc |
|
|
|
39,730,881
|
|
|
Biotechnology – 2.4%
|
|
|
|
|
514,976
|
|
AbbVie
Inc |
|
|
|
42,331,027
|
|
|
Capital
Markets – 5.2% |
|
|
|
|
728,378
|
|
Bank
of New York Mellon Corp |
|
|
|
27,343,310
|
552,814
|
|
Charles
Schwab Corp |
|
|
|
20,852,144
|
1,126,348
|
|
Morgan
Stanley |
|
|
|
44,411,902
|
|
|
Total
Capital Markets |
|
|
|
92,607,356
|
|
|
Chemicals – 1.0%
|
|
|
|
|
659,079
|
|
CF
Industries Holdings Inc |
|
|
|
18,124,673
|
|
|
Communications
Equipment – 1.3% |
|
|
|
|
164,010
|
|
Motorola
Solutions Inc |
|
|
|
23,586,278
|
|
|
Consumer
Finance – 4.4% |
|
|
|
|
344,704
|
|
American
Express Co |
|
|
|
31,454,240
|
417,187
|
|
Capital
One Financial Corp |
|
|
|
27,017,030
|
476,470
|
|
Discover
Financial Services |
|
|
|
20,473,916
|
|
|
Total
Consumer Finance |
|
|
|
78,945,186
|
|
|
Diversified
Financial Services – 1.0% |
|
|
|
|
402,096
|
|
Voya
Financial Inc |
|
|
|
18,162,676
|
|
|
Diversified
Telecommunication Services – 8.0% |
|
|
|
|
2,234,807
|
|
AT&T
Inc |
|
|
|
68,094,569
|
1,311,212
|
|
Verizon
Communications Inc |
|
|
|
75,329,130
|
|
|
Total
Diversified Telecommunication Services |
|
|
|
143,423,699
|
|
|
Electric
Utilities – 8.0% |
|
|
|
|
223,687
|
|
American
Electric Power Co Inc |
|
|
|
18,590,627
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Electric
Utilities (continued) |
|
|
|
|
187,617
|
|
Entergy
Corp |
|
|
|
$17,919,300 |
564,208
|
|
Evergy
Inc |
|
|
|
32,966,673
|
1,146,418
|
|
Exelon
Corp |
|
|
|
42,509,180
|
769,257
|
|
FirstEnergy
Corp |
|
|
|
31,747,236
|
|
|
Total
Electric Utilities |
|
|
|
143,733,016
|
|
|
Electrical
Equipment – 1.4% |
|
|
|
|
300,184
|
|
Eaton
Corp PLC |
|
|
|
25,065,364
|
|
|
Equity
Real Estate Investment Trust – 3.2% |
|
|
|
|
273,551
|
|
Crown
Castle International Corp |
|
|
|
43,612,236
|
514,037
|
|
Gaming
and Leisure Properties Inc |
|
|
|
14,516,405
|
|
|
Total
Equity Real Estate Investment Trust |
|
|
|
58,128,641
|
|
|
Food
Products – 2.1% |
|
|
|
|
619,339
|
|
Tyson
Foods Inc |
|
|
|
38,516,692
|
|
|
Health
Care Providers & Services – 10.1% |
|
|
|
|
156,324
|
|
Anthem
Inc |
|
|
|
43,884,837
|
215,178
|
|
Cigna
Corp |
|
|
|
42,127,549
|
123,699
|
|
Humana
Inc |
|
|
|
47,230,752
|
162,822
|
|
UnitedHealth
Group Inc |
|
|
|
47,620,550
|
|
|
Total
Health Care Providers & Services |
|
|
|
180,863,688
|
|
|
Hotels,
Restaurants & Leisure – 0.8% |
|
|
|
|
553,388
|
|
Wyndham
Destinations Inc |
|
|
|
14,150,131
|
|
|
Household
Durables – 1.3% |
|
|
|
|
1,718,462
|
|
Newell
Brands Inc |
|
|
|
23,852,253
|
|
|
Household
Products – 1.1% |
|
|
|
|
286,568
|
|
Colgate-Palmolive
Co |
|
|
|
20,137,133
|
|
|
Insurance – 5.4%
|
|
|
|
|
272,324
|
|
Allstate
Corp |
|
|
|
27,700,797
|
906,583
|
|
Hartford
Financial Services Group Inc |
|
|
|
34,441,088
|
362,011
|
|
Marsh
& McLennan Cos Inc |
|
|
|
35,234,531
|
|
|
Total
Insurance |
|
|
|
97,376,416
|
|
|
IT
Services – 2.8% |
|
|
|
|
374,315
|
|
Fidelity
National Information Services Inc |
|
|
|
49,368,405
|
|
|
Media – 1.1%
|
|
|
|
|
538,735
|
|
Comcast
Corp |
|
|
|
20,272,598
|
|
|
Mortgage
Real Estate Investment Trust – 3.3% |
|
|
|
|
2,145,587
|
|
AGNC
Investment Corp |
|
|
|
26,648,191
|
3,320,053
|
|
Annaly
Capital Management Inc |
|
|
|
20,750,331
|
Nuveen Dividend Value Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Mortgage
Real Estate Investment Trust (continued) |
|
|
|
|
917,750
|
|
Starwood
Property Trust Inc |
|
|
|
$
11,875,685 |
|
|
Total
Mortgage Real Estate Investment Trust |
|
|
|
59,274,207
|
|
|
Multiline
Retail – 2.6% |
|
|
|
|
422,414
|
|
Target
Corp |
|
|
|
46,355,712
|
|
|
Multi-Utilities – 2.8%
|
|
|
|
|
663,258
|
|
Dominion
Energy Inc |
|
|
|
51,157,090
|
|
|
Pharmaceuticals – 4.1%
|
|
|
|
|
841,282
|
|
AstraZeneca
PLC, Sponsored ADR |
|
|
|
43,982,223
|
494,134
|
|
Bristol-Myers
Squibb Co |
|
|
|
30,048,288
|
|
|
Total
Pharmaceuticals |
|
|
|
74,030,511
|
|
|
Road
& Rail – 1.5% |
|
|
|
|
201,560
|
|
Kansas
City Southern |
|
|
|
26,313,658
|
|
|
Semiconductors
& Semiconductor Equipment – 9.5% |
|
|
|
|
121,460
|
|
Broadcom
Inc |
|
|
|
32,990,965
|
1,431,363
|
|
Intel
Corp |
|
|
|
85,853,153
|
236,499
|
|
NXP
Semiconductors NV |
|
|
|
23,548,205
|
519,107
|
|
Taiwan
Semiconductor Manufacturing Co Ltd, Sponsored ADR |
|
|
|
27,580,155
|
|
|
Total
Semiconductors & Semiconductor Equipment |
|
|
|
169,972,478
|
|
|
Specialty
Retail – 1.7% |
|
|
|
|
139,046
|
|
Home
Depot Inc |
|
|
|
30,566,482
|
|
|
Technology
Hardware, Storage & Peripherals – 0.8% |
|
|
|
|
965,007
|
|
HP
Inc |
|
|
|
14,967,259
|
|
|
Tobacco – 3.2%
|
|
|
|
|
774,247
|
|
Philip
Morris International Inc |
|
|
|
57,758,826
|
|
|
Trading
Companies & Distributors – 0.9% |
|
|
|
|
101,306
|
|
Watsco
Inc |
|
|
|
16,309,253
|
|
|
Total
Long-Term Investments (cost $1,929,257,986) |
|
|
|
1,791,632,554
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
SHORT-TERM
INVESTMENTS – 2.1% |
|
|
|
|
|
|
MONEY
MARKET FUNDS – 2.1% |
|
|
|
|
37,191,047
|
|
First
American Treasury Obligation Fund, Class Z |
0.134%
(2) |
|
|
$
37,191,047 |
|
|
Total
Short-Term Investments (cost $37,191,047) |
|
|
|
37,191,047
|
|
|
Total
Investments (cost $1,966,449,033) – 101.8% |
|
|
|
1,828,823,601
|
|
|
Other
Assets Less Liabilities – (1.8)% |
|
|
|
(31,855,678)
|
|
|
Net
Assets – 100% |
|
|
|
$
1,796,967,923 |
|
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
rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
|
ADR
|
American
Depositary Receipt |
|
See accompanying notes to financial statements.
Nuveen Mid Cap Value Fund
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
LONG-TERM
INVESTMENTS – 98.3% |
|
|
|
|
|
|
COMMON
STOCKS – 98.3% |
|
|
|
|
|
|
Aerospace
& Defense – 1.9% |
|
|
|
|
26,541
|
|
L3Harris
Technologies Inc |
|
|
|
$
5,140,992 |
|
|
Airlines – 0.6%
|
|
|
|
|
50,613
|
|
Alaska
Air Group Inc, (2) |
|
|
|
1,645,935
|
|
|
Banks – 5.3%
|
|
|
|
|
98,689
|
|
East
West Bancorp Inc |
|
|
|
3,461,023
|
139,516
|
|
Fifth
Third Bancorp |
|
|
|
2,607,554
|
298,040
|
|
KeyCorp
|
|
|
|
3,472,166
|
10,665
|
|
SVB
Financial Group, (2) |
|
|
|
2,060,158
|
74,029
|
|
Western
Alliance Bancorp |
|
|
|
2,656,161
|
|
|
Total
Banks |
|
|
|
14,257,062
|
|
|
Biotechnology – 1.9%
|
|
|
|
|
46,509
|
|
United
Therapeutics Corp, (2) |
|
|
|
5,095,526
|
|
|
Building
Products – 1.2% |
|
|
|
|
36,171
|
|
Trane
Technologies PLC |
|
|
|
3,162,069
|
|
|
Capital
Markets – 4.2% |
|
|
|
|
50,922
|
|
Evercore
Inc |
|
|
|
2,627,575
|
44,902
|
|
Nasdaq
Inc |
|
|
|
4,924,402
|
59,030
|
|
Raymond
James Financial Inc |
|
|
|
3,891,258
|
|
|
Total
Capital Markets |
|
|
|
11,443,235
|
|
|
Chemicals – 3.6%
|
|
|
|
|
36,988
|
|
Celanese
Corp |
|
|
|
3,072,593
|
96,409
|
|
CF
Industries Holdings Inc |
|
|
|
2,651,248
|
229,852
|
|
Huntsman
Corp |
|
|
|
3,863,812
|
|
|
Total
Chemicals |
|
|
|
9,587,653
|
|
|
Communications
Equipment – 2.2% |
|
|
|
|
55,144
|
|
Ciena
Corp, (2) |
|
|
|
2,550,410
|
23,724
|
|
Motorola
Solutions Inc |
|
|
|
3,411,748
|
|
|
Total
Communications Equipment |
|
|
|
5,962,158
|
|
|
Construction
Materials – 1.5% |
|
|
|
|
276,916
|
|
Summit
Materials Inc, (2) |
|
|
|
4,184,201
|
|
|
Consumer
Finance – 0.9% |
|
|
|
|
96,680
|
|
OneMain
Holdings Inc |
|
|
|
2,340,623
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Diversified
Financial Services – 1.9% |
|
|
|
|
114,089
|
|
Voya
Financial Inc |
|
|
|
$
5,153,400 |
|
|
Electric
Utilities – 6.3% |
|
|
|
|
101,895
|
|
Alliant
Energy Corp |
|
|
|
4,947,002
|
57,044
|
|
Entergy
Corp |
|
|
|
5,448,273
|
161,396
|
|
FirstEnergy
Corp |
|
|
|
6,660,813
|
|
|
Total
Electric Utilities |
|
|
|
17,056,088
|
|
|
Electrical
Equipment – 2.3% |
|
|
|
|
42,112
|
|
AMETEK
Inc |
|
|
|
3,531,933
|
21,072
|
|
Hubbell
Inc |
|
|
|
2,621,989
|
|
|
Total
Electrical Equipment |
|
|
|
6,153,922
|
|
|
Electronic
Equipment, Instruments & Components – 1.8% |
|
|
|
|
158,757
|
|
Avnet
Inc |
|
|
|
4,765,885
|
|
|
Equity
Real Estate Investment Trust – 11.5% |
|
|
|
|
303,036
|
|
Brandywine
Realty Trust |
|
|
|
3,381,882
|
18,151
|
|
Digital
Realty Trust Inc |
|
|
|
2,713,393
|
11,142
|
|
Essex
Property Trust Inc |
|
|
|
2,719,762
|
147,904
|
|
First
Industrial Realty Trust Inc |
|
|
|
5,586,334
|
33,132
|
|
Mid-America
Apartment Communities Inc |
|
|
|
3,708,133
|
63,049
|
|
Regency
Centers Corp |
|
|
|
2,768,482
|
77,040
|
|
SL
Green Realty Corp |
|
|
|
4,086,972
|
639,937
|
|
VEREIT
Inc |
|
|
|
3,506,855
|
112,497
|
|
Washington
Real Estate Investment Trust |
|
|
|
2,623,430
|
|
|
Total
Equity Real Estate Investment Trust |
|
|
|
31,095,243
|
|
|
Food
Products – 1.8% |
|
|
|
|
77,758
|
|
Tyson
Foods Inc |
|
|
|
4,835,770
|
|
|
Health
Care Equipment & Supplies – 3.0% |
|
|
|
|
6,701
|
|
Teleflex
Inc |
|
|
|
2,247,515
|
48,901
|
|
Zimmer
Biomet Holdings Inc |
|
|
|
5,853,450
|
|
|
Total
Health Care Equipment & Supplies |
|
|
|
8,100,965
|
|
|
Health
Care Providers & Services – 2.0% |
|
|
|
|
81,805
|
|
Centene
Corp, (2) |
|
|
|
5,446,577
|
|
|
Hotels,
Restaurants & Leisure – 1.4% |
|
|
|
|
19,668
|
|
Hyatt
Hotels Corp |
|
|
|
1,106,522
|
85,317
|
|
MGM
Resorts International |
|
|
|
1,435,885
|
53,431
|
|
Wyndham
Destinations Inc |
|
|
|
1,366,230
|
|
|
Total
Hotels, Restaurants & Leisure |
|
|
|
3,908,637
|
|
|
Household
Durables – 5.0% |
|
|
|
|
111,873
|
|
DR
Horton Inc |
|
|
|
5,282,643
|
Nuveen Mid Cap Value Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Household
Durables (continued) |
|
|
|
|
45,837
|
|
Mohawk
Industries Inc, (2) |
|
|
|
$4,020,822 |
302,182
|
|
Newell
Brands Inc |
|
|
|
4,194,286
|
|
|
Total
Household Durables |
|
|
|
13,497,751
|
|
|
Household
Products – 1.2% |
|
|
|
|
80,894
|
|
Energizer
Holdings Inc |
|
|
|
3,151,630
|
|
|
Insurance – 4.6%
|
|
|
|
|
195,175
|
|
CNO
Financial Group Inc |
|
|
|
2,744,161
|
129,691
|
|
Hartford
Financial Services Group Inc |
|
|
|
4,926,961
|
26,059
|
|
Willis
Towers Watson PLC |
|
|
|
4,646,059
|
|
|
Total
Insurance |
|
|
|
12,317,181
|
|
|
IT
Services – 2.6% |
|
|
|
|
145,220
|
|
Perspecta
Inc |
|
|
|
3,132,395
|
19,099
|
|
VeriSign
Inc, (2) |
|
|
|
4,001,050
|
|
|
Total
IT Services |
|
|
|
7,133,445
|
|
|
Leisure
Products – 1.8% |
|
|
|
|
101,647
|
|
Brunswick
Corp/DE |
|
|
|
4,850,595
|
|
|
Machinery – 2.4%
|
|
|
|
|
63,710
|
|
Crane
Co |
|
|
|
3,469,009
|
26,768
|
|
Stanley
Black & Decker Inc |
|
|
|
2,949,834
|
|
|
Total
Machinery |
|
|
|
6,418,843
|
|
|
Media – 1.2%
|
|
|
|
|
294,300
|
|
TEGNA
Inc |
|
|
|
3,154,896
|
|
|
Metals
& Mining – 0.9% |
|
|
|
|
100,191
|
|
Steel
Dynamics Inc |
|
|
|
2,431,635
|
|
|
Mortgage
Real Estate Investment Trust – 2.3% |
|
|
|
|
226,728
|
|
AGNC
Investment Corp |
|
|
|
2,815,962
|
270,702
|
|
Starwood
Property Trust Inc |
|
|
|
3,502,884
|
|
|
Total
Mortgage Real Estate Investment Trust |
|
|
|
6,318,846
|
|
|
Multiline
Retail – 1.0% |
|
|
|
|
15,313
|
|
Dollar
General Corp |
|
|
|
2,684,369
|
|
|
Multi-Utilities – 5.2%
|
|
|
|
|
68,762
|
|
Ameren
Corp |
|
|
|
5,002,436
|
166,204
|
|
NiSource
Inc |
|
|
|
4,173,382
|
96,899
|
|
Public
Service Enterprise Group Inc |
|
|
|
4,913,748
|
|
|
Total
Multi-Utilities |
|
|
|
14,089,566
|
|
|
Oil,
Gas & Consumable Fuels – 3.7% |
|
|
|
|
56,062
|
|
Concho
Resources Inc |
|
|
|
3,179,837
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Oil,
Gas & Consumable Fuels (continued) |
|
|
|
|
251,400
|
|
Williams
Cos Inc |
|
|
|
$4,869,618 |
296,155
|
|
WPX
Energy Inc, (2) |
|
|
|
1,815,430
|
|
|
Total
Oil, Gas & Consumable Fuels |
|
|
|
9,864,885
|
|
|
Pharmaceuticals – 1.0%
|
|
|
|
|
24,907
|
|
Jazz
Pharmaceuticals PLC, (2), (3) |
|
|
|
2,745,997
|
|
|
Real
Estate Management & Development – 0.8% |
|
|
|
|
20,647
|
|
Jones
Lang LaSalle Inc |
|
|
|
2,179,910
|
|
|
Road
& Rail – 1.7% |
|
|
|
|
35,348
|
|
Kansas
City Southern |
|
|
|
4,614,681
|
|
|
Semiconductors
& Semiconductor Equipment – 2.2% |
|
|
|
|
227,152
|
|
Marvell
Technology Group Ltd |
|
|
|
6,074,044
|
|
|
Software – 1.8%
|
|
|
|
|
30,091
|
|
Synopsys
Inc, (2) |
|
|
|
4,727,898
|
|
|
Specialty
Retail – 1.2% |
|
|
|
|
43,297
|
|
Best
Buy Co Inc |
|
|
|
3,322,179
|
|
|
Thrifts
& Mortgage Finance – 1.2% |
|
|
|
|
211,913
|
|
Radian
Group Inc |
|
|
|
3,174,457
|
|
|
Water
Utilities – 1.2% |
|
|
|
|
25,761
|
|
American
Water Works Co Inc |
|
|
|
3,134,856
|
|
|
Total
Long-Term Investments (cost $280,752,555) |
|
|
|
265,223,605
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
INVESTMENTS
PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.2% |
|
|
|
|
|
MONEY
MARKET FUNDS – 0.2% |
|
|
|
|
548,725
|
|
First
American Government Obligations Fund, Class X, (4) |
0.252%
(5) |
|
|
$
548,725 |
|
|
Total
Investments Purchased with Collateral from Securities Lending (cost $548,725) |
|
|
548,725
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
SHORT-TERM
INVESTMENTS – 1.4% |
|
|
|
|
|
|
MONEY
MARKET FUNDS – 1.4% |
|
|
|
|
3,741,107
|
|
First
American Treasury Obligation Fund, Class Z |
0.134%
(5) |
|
|
$
3,741,107 |
|
|
Total
Short-Term Investments (cost $3,741,107) |
|
|
|
3,741,107
|
|
|
Total
Investments (cost $285,042,387) – 99.9% |
|
|
|
269,513,437
|
|
|
Other
Assets Less Liabilities – 0.1% |
|
|
|
239,269
|
|
|
Net
Assets – 100% |
|
|
|
$
269,752,706 |
Nuveen Mid Cap Value Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
|
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 a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $518,175. |
|
(4)
|
The
Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of
the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 4 – Portfolio Securities and Investments in Derivatives for more
information. |
|
(5)
|
The
rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
|
See accompanying notes to financial statements.
Nuveen Small Cap Value Fund
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
LONG-TERM
INVESTMENTS – 99.6% |
|
|
|
|
|
|
COMMON
STOCKS – 99.6% |
|
|
|
|
|
|
Aerospace
& Defense – 1.1% |
|
|
|
|
245,085
|
|
Parsons
Corp, (2) |
|
|
|
$
9,166,179 |
|
|
Air
Freight & Logistics – 1.6% |
|
|
|
|
654,452
|
|
Air
Transport Services Group Inc, (2) |
|
|
|
13,246,108
|
|
|
Airlines – 0.4%
|
|
|
|
|
215,691
|
|
Spirit
Airlines Inc, (2), (3) |
|
|
|
3,239,679
|
|
|
Auto
Components – 2.4% |
|
|
|
|
363,227
|
|
Cooper
Tire & Rubber Co |
|
|
|
7,696,780
|
1,004,668
|
|
Dana
Inc, (2) |
|
|
|
11,553,682
|
|
|
Total
Auto Components |
|
|
|
19,250,462
|
|
|
Banks – 16.4%
|
|
|
|
|
402,729
|
|
Banner
Corp |
|
|
|
15,476,875
|
385,953
|
|
Berkshire
Hills Bancorp Inc |
|
|
|
6,576,639
|
543,353
|
|
Cathay
General Bancorp |
|
|
|
15,170,416
|
643,219
|
|
First
Busey Corp |
|
|
|
11,848,094
|
375,163
|
|
Heartland
Financial USA Inc |
|
|
|
12,744,287
|
1,460,189
|
|
Investors
Bancorp Inc |
|
|
|
13,594,360
|
367,292
|
|
Pinnacle
Financial Partners Inc |
|
|
|
14,783,503
|
321,952
|
|
Preferred
Bank/Los Angeles CA |
|
|
|
12,282,469
|
427,438
|
|
Renasant
Corp |
|
|
|
11,211,699
|
303,412
|
|
Western
Alliance Bancorp |
|
|
|
10,886,422
|
217,471
|
|
Wintrust
Financial Corp |
|
|
|
9,112,035
|
|
|
Total
Banks |
|
|
|
133,686,799
|
|
|
Biotechnology – 1.5%
|
|
|
|
|
114,415
|
|
United
Therapeutics Corp |
|
|
|
12,535,307
|
|
|
Building
Products – 1.9% |
|
|
|
|
333,950
|
|
Gibraltar
Industries Inc, (2) |
|
|
|
15,461,885
|
|
|
Capital
Markets – 2.9% |
|
|
|
|
210,511
|
|
Evercore
Inc |
|
|
|
10,862,368
|
230,240
|
|
Piper
Sandler Cos |
|
|
|
12,412,238
|
|
|
Total
Capital Markets |
|
|
|
23,274,606
|
|
|
Chemicals – 1.5%
|
|
|
|
|
275,765
|
|
Minerals
Technologies Inc |
|
|
|
12,144,691
|
Nuveen Small Cap Value Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Commercial
Services & Supplies – 1.9% |
|
|
|
|
96,838
|
|
Brink's
Co |
|
|
|
$4,950,358 |
479,709
|
|
SP
Plus Corp, (2) |
|
|
|
10,117,063
|
|
|
Total
Commercial Services & Supplies |
|
|
|
15,067,421
|
|
|
Communications
Equipment – 2.6% |
|
|
|
|
199,873
|
|
NETGEAR
Inc, (2) |
|
|
|
4,792,955
|
690,455
|
|
Radware
Ltd, (2) |
|
|
|
16,356,879
|
|
|
Total
Communications Equipment |
|
|
|
21,149,834
|
|
|
Construction
& Engineering – 2.5% |
|
|
|
|
523,486
|
|
Aegion
Corp, (2) |
|
|
|
8,401,950
|
190,719
|
|
EMCOR
Group Inc |
|
|
|
12,116,378
|
|
|
Total
Construction & Engineering |
|
|
|
20,518,328
|
|
|
Construction
Materials – 0.8% |
|
|
|
|
443,153
|
|
Summit
Materials Inc |
|
|
|
6,696,042
|
|
|
Consumer
Finance – 0.6% |
|
|
|
|
205,253
|
|
OneMain
Holdings Inc |
|
|
|
4,969,175
|
|
|
Diversified
Telecommunication Services – 1.2% |
|
|
|
|
1,122,901
|
|
Vonage
Holdings Corp, (2) |
|
|
|
9,387,452
|
|
|
Electronic
Equipment, Instruments & Components – 3.5% |
|
|
|
|
421,047
|
|
Avnet
Inc |
|
|
|
12,639,831
|
88,575
|
|
SYNNEX
Corp, (2) |
|
|
|
7,755,627
|
666,268
|
|
TTM
Technologies Inc, (2) |
|
|
|
7,722,046
|
|
|
Total
Electronic Equipment, Instruments & Components |
|
|
|
28,117,504
|
|
|
Equity
Real Estate Investment Trust – 9.7% |
|
|
|
|
1,032,576
|
|
Brandywine
Realty Trust |
|
|
|
11,523,548
|
397,085
|
|
Kite
Realty Group Trust |
|
|
|
4,062,180
|
1,364,177
|
|
Lexington
Realty Trust |
|
|
|
14,255,650
|
754,694
|
|
Preferred
Apartment Communities Inc |
|
|
|
5,592,282
|
609,371
|
|
Retail
Opportunity Investments Corp |
|
|
|
5,913,946
|
742,442
|
|
RLJ
Lodging Trust |
|
|
|
6,897,286
|
513,793
|
|
STAG
Industrial Inc |
|
|
|
13,487,066
|
1,334,787
|
|
Summit
Hotel Properties Inc |
|
|
|
8,088,809
|
405,455
|
|
Washington
Real Estate Investment Trust |
|
|
|
9,455,211
|
|
|
Total
Equity Real Estate Investment Trust |
|
|
|
79,275,978
|
|
|
Food
Products – 1.7% |
|
|
|
|
1,116,816
|
|
Hostess
Brands Inc, (2) |
|
|
|
13,424,128
|
|
|
Gas
Utilities – 3.3% |
|
|
|
|
79,800
|
|
ONE
Gas Inc |
|
|
|
6,360,858
|
275,362
|
|
South
Jersey Industries Inc |
|
|
|
7,872,599
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Gas
Utilities (continued) |
|
|
|
|
176,635
|
|
Spire
Inc |
|
|
|
$
12,887,290 |
|
|
Total
Gas Utilities |
|
|
|
27,120,747
|
|
|
Health
Care Equipment & Supplies – 1.1% |
|
|
|
|
356,484
|
|
Natus
Medical Inc, (2) |
|
|
|
8,908,535
|
|
|
Health
Care Providers & Services – 0.9% |
|
|
|
|
163,862
|
|
AMN
Healthcare Services Inc, (2) |
|
|
|
7,698,237
|
|
|
Hotels,
Restaurants & Leisure – 1.2% |
|
|
|
|
162,776
|
|
Jack
in the Box Inc |
|
|
|
9,815,393
|
|
|
Household
Durables – 2.9% |
|
|
|
|
546,527
|
|
La-Z-Boy
Inc |
|
|
|
12,816,058
|
438,386
|
|
M/I
Homes Inc, (2) |
|
|
|
11,161,308
|
|
|
Total
Household Durables |
|
|
|
23,977,366
|
|
|
Insurance – 5.0%
|
|
|
|
|
153,918
|
|
AMERISAFE
Inc |
|
|
|
9,799,959
|
193,969
|
|
Argo
Group International Holdings Ltd, (2) |
|
|
|
6,858,744
|
557,226
|
|
BRP
Group Inc, (2) |
|
|
|
5,583,405
|
750,402
|
|
CNO
Financial Group Inc |
|
|
|
10,550,652
|
221,565
|
|
Horace
Mann Educators Corp |
|
|
|
7,790,225
|
|
|
Total
Insurance |
|
|
|
40,582,985
|
|
|
IT
Services – 0.5% |
|
|
|
|
188,240
|
|
Perspecta
Inc |
|
|
|
4,060,337
|
|
|
Leisure
Products – 1.2% |
|
|
|
|
199,965
|
|
Brunswick
Corp/DE |
|
|
|
9,542,330
|
|
|
Machinery – 1.4%
|
|
|
|
|
434,488
|
|
Kennametal
Inc |
|
|
|
11,127,238
|
|
|
Media – 0.6%
|
|
|
|
|
430,424
|
|
TEGNA
Inc |
|
|
|
4,614,145
|
|
|
Metals
& Mining – 2.0% |
|
|
|
|
437,657
|
|
Allegheny
Technologies Inc, (2) |
|
|
|
3,286,804
|
153,324
|
|
Compass
Minerals International Inc |
|
|
|
7,537,408
|
1,782,311
|
|
SunCoke
Energy Inc |
|
|
|
5,614,280
|
|
|
Total
Metals & Mining |
|
|
|
16,438,492
|
|
|
Mortgage
Real Estate Investment Trust – 1.2% |
|
|
|
|
1,230,832
|
|
Ladder
Capital Corp |
|
|
|
9,785,114
|
|
|
Multi-Utilities – 1.8%
|
|
|
|
|
241,192
|
|
Black
Hills Corp |
|
|
|
14,939,432
|
Nuveen Small Cap Value Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Oil,
Gas & Consumable Fuels – 3.0% |
|
|
|
|
541,043
|
|
Brigham
Minerals Inc |
|
|
|
$6,974,044 |
365,420
|
|
Delek
US Holdings Inc |
|
|
|
8,532,557
|
1,333,821
|
|
Magnolia
Oil & Gas Corp, (2) |
|
|
|
8,629,822
|
|
|
Total
Oil, Gas & Consumable Fuels |
|
|
|
24,136,423
|
|
|
Pharmaceuticals – 1.5%
|
|
|
|
|
303,552
|
|
Prestige
Consumer Healthcare Inc, (2) |
|
|
|
12,351,531
|
|
|
Professional
Services – 2.5% |
|
|
|
|
500,982
|
|
CBIZ
Inc, (2) |
|
|
|
11,898,322
|
286,397
|
|
Korn
Ferry |
|
|
|
8,256,826
|
|
|
Total
Professional Services |
|
|
|
20,155,148
|
|
|
Road
& Rail – 0.4% |
|
|
|
|
113,223
|
|
TFI
International Inc |
|
|
|
3,141,938
|
|
|
Semiconductors
& Semiconductor Equipment – 4.2% |
|
|
|
|
171,057
|
|
Diodes
Inc, (2) |
|
|
|
8,705,091
|
81,118
|
|
MKS
Instruments Inc |
|
|
|
8,130,457
|
159,413
|
|
Semtech
Corp, (2) |
|
|
|
7,211,844
|
150,786
|
|
Synaptics
Inc, (2) |
|
|
|
9,859,897
|
|
|
Total
Semiconductors & Semiconductor Equipment |
|
|
|
33,907,289
|
|
|
Software – 2.9%
|
|
|
|
|
194,191
|
|
Alarmcom
Holdings Inc, (2) |
|
|
|
8,686,163
|
186,068
|
|
J2
Global Inc, (2) |
|
|
|
15,004,524
|
|
|
Total
Software |
|
|
|
23,690,687
|
|
|
Specialty
Retail – 1.9% |
|
|
|
|
300,217
|
|
Aaron's
Inc |
|
|
|
9,579,924
|
96,789
|
|
Group
1 Automotive Inc, (2) |
|
|
|
5,477,290
|
|
|
Total
Specialty Retail |
|
|
|
15,057,214
|
|
|
Textiles,
Apparel & Luxury Goods – 0.7% |
|
|
|
|
27,952
|
|
Culp
Inc |
|
|
|
198,739
|
514,659
|
|
G-III
Apparel Group Ltd, (2) |
|
|
|
5,831,086
|
|
|
Total
Textiles, Apparel & Luxury Goods |
|
|
|
6,029,825
|
|
|
Thrifts
& Mortgage Finance – 4.1% |
|
|
|
|
468,759
|
|
Flagstar
Bancorp Inc |
|
|
|
12,145,546
|
844,114
|
|
Radian
Group Inc |
|
|
|
12,644,828
|
304,540
|
|
WSFS
Financial Corp |
|
|
|
8,886,477
|
|
|
Total
Thrifts & Mortgage Finance |
|
|
|
33,676,851
|
|
|
Water
Utilities – 1.1% |
|
|
|
|
201,104
|
|
California
Water Service Group |
|
|
|
9,033,592
|
|
|
Total
Long-Term Investments (cost $966,447,323) |
|
|
|
810,402,427
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
INVESTMENTS
PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 0.0% |
|
|
|
|
|
MONEY
MARKET FUNDS – 0.0% |
|
|
|
|
511,875
|
|
First
American Government Obligations Fund, Class X, (4) |
0.252%
(5) |
|
|
$
511,875 |
|
|
Total
Investments Purchased with Collateral from Securities Lending (cost $511,875) |
|
|
511,875
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
SHORT-TERM
INVESTMENTS – 0.3% |
|
|
|
|
|
|
MONEY
MARKET FUNDS – 0.3% |
|
|
|
|
2,318,774
|
|
First
American Treasury Obligation Fund, Class Z |
0.134%
(5) |
|
|
$
2,318,774 |
|
|
Total
Short-Term Investments (cost $2,318,774) |
|
|
|
2,318,774
|
|
|
Total
Investments (cost $969,277,972) – 99.9% |
|
|
|
813,233,076
|
|
|
Other
Assets Less Liabilities – 0.1% |
|
|
|
704,509
|
|
|
Net
Assets – 100% |
|
|
|
$
813,937,585 |
|
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 a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $488,150. |
|
(4)
|
The
Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of
the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 4 – Portfolio Securities and Investments in Derivatives for more
information. |
|
(5)
|
The
rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
|
See accompanying notes to financial statements.
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Assets
|
|
|
|
Long-term
investments, at value (cost $1,929,257,986, $280,752,555 and $966,447,323, respectively) |
$1,791,632,554
|
$265,223,605
|
$810,402,427
|
Investment
purchased with collateral from securities lending, at value (cost approximates value) |
—
|
548,725
|
511,875
|
Short-term
investments, at value (cost approximates value) |
37,191,047
|
3,741,107
|
2,318,774
|
Receivable
for: |
|
|
|
Dividends
|
4,042,007
|
139,645
|
266,330
|
Due
from affiliates |
187,493
|
28,101
|
128,542
|
Due
from broker |
—
|
198
|
234
|
Interest
|
5,682
|
616
|
189
|
Investments
sold |
—
|
7,577,012
|
9,601,662
|
Shares
sold |
119,165
|
938,506
|
2,423,064
|
Other
assets |
124,594
|
56,293
|
107,672
|
Total
assets |
1,833,302,542
|
278,253,808
|
825,760,769
|
Liabilities
|
|
|
|
Cash
overdraft |
—
|
—
|
1,581
|
Payable
for: |
|
|
|
Collateral
from securities lending program |
—
|
548,725
|
511,875
|
Interest
|
46,294
|
—
|
—
|
Investments
purchased - regular settlement |
21,442,941
|
7,319,074
|
2,509,089
|
Shares
redeemed |
13,112,073
|
265,874
|
7,080,601
|
Accrued
expenses: |
|
|
|
Directors
fees |
99,454
|
12,927
|
55,411
|
Management
fees |
920,588
|
117,206
|
594,639
|
Shareholder
servicing agent fees |
471,710
|
166,977
|
705,189
|
12b-1
distribution and service fees |
53,182
|
14,440
|
48,720
|
Other
|
188,377
|
55,879
|
316,079
|
Total
liabilities |
36,334,619
|
8,501,102
|
11,823,184
|
Net
assets |
$1,796,967,923
|
$269,752,706
|
$813,937,585
|
|
|
|
|
See accompanying notes to financial statements.
Statement of Assets and Liabilities (Unaudited) (continued)
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Class
A Shares |
|
|
|
Net
assets |
$
170,861,492 |
$
39,694,930 |
$
110,556,356 |
Shares
outstanding |
15,475,057
|
1,215,039
|
7,042,949
|
Net
asset value ("NAV") per share |
$
11.04 |
$
32.67 |
$
15.70 |
Offering
price per share (NAV per share plus maximum sales charge of 5.75% of offering price) |
$
11.71 |
$
34.66 |
$
16.66 |
Class
C Shares |
|
|
|
Net
assets |
$
16,210,153 |
$
5,056,086 |
$
26,142,287 |
Shares
outstanding |
1,499,082
|
164,651
|
1,978,486
|
NAV
and offering price per share |
$
10.81 |
$
30.71 |
$
13.21 |
Class
R3 Shares |
|
|
|
Net
assets |
$
17,203,843 |
$
7,745,217 |
$
23,372,159 |
Shares
outstanding |
1,566,182
|
239,158
|
1,522,664
|
NAV
and offering price per share |
$
10.98 |
$
32.39 |
$
15.35 |
Class
R6 Shares |
|
|
|
Net
assets |
$1,138,544,590
|
$
15,776,655 |
$
99,003,070 |
Shares
outstanding |
100,698,235
|
480,603
|
6,067,082
|
NAV
and offering price per share |
$
11.31 |
$
32.83 |
$
16.32 |
Class
I Shares |
|
|
|
Net
assets |
$
454,147,845 |
$201,479,818
|
$
554,863,713 |
Shares
outstanding |
40,535,596
|
6,149,217
|
34,144,464
|
NAV
and offering price per share |
$
11.20 |
$
32.77 |
$
16.25 |
Fund
level net assets consist of: |
|
|
|
Capital
paid-in |
$2,058,363,955
|
$300,574,838
|
$1,378,635,674
|
Total
distributable earnings |
(261,396,032)
|
(30,822,132)
|
(564,698,089)
|
Fund
level net assets |
$1,796,967,923
|
$269,752,706
|
$
813,937,585 |
Authorized
shares - per class |
2
billion |
2
billion |
2
billion |
Par
value per share |
$
0.0001 |
$
0.0001 |
$
0.0001 |
See accompanying notes to financial statements.
Statement of Operations
Six Months Ended April 30, 2020
(Unaudited)
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Investment
Income |
|
|
|
Dividends
|
$
29,997,139 |
$
3,170,674 |
$
9,977,184 |
Interest
|
208,817
|
19,803
|
66,262
|
Securities
lending income |
491
|
309
|
5,934
|
Payment
from affiliate |
187,493
|
28,101
|
128,542
|
Foreign
tax withheld on dividend income |
(130,934)
|
—
|
—
|
Total
investment income |
30,263,006
|
3,218,887
|
10,177,922
|
Expenses
|
|
|
|
Management
fees |
6,167,332
|
1,236,607
|
5,233,870
|
12b-1
service fees - Class A Shares |
250,878
|
61,045
|
209,893
|
12b-1
distribution and service fees - Class C Shares |
103,194
|
33,695
|
187,894
|
12b-1
distibution and service fees - Class R3 Shares |
51,649
|
22,805
|
78,042
|
Shareholder
servicing agent fees |
724,025
|
239,384
|
1,306,275
|
Custodian
fees |
91,917
|
29,589
|
89,102
|
Professional
fees |
29,901
|
17,931
|
40,949
|
Directors
fees |
22,253
|
3,296
|
13,511
|
Shareholder
reporting expenses |
51,399
|
29,909
|
176,033
|
Federal
and state registration fees |
159,901
|
47,640
|
52,903
|
Other
|
31,080
|
13,128
|
46,781
|
Total
expenses before fee waiver/expense reimbursement |
7,683,529
|
1,735,029
|
7,435,253
|
Fee
waiver/expense reimbursement |
—
|
(188,092)
|
(669,170)
|
Net
expenses |
7,683,529
|
1,546,937
|
6,766,083
|
Net
investment income (loss) |
22,579,477
|
1,671,950
|
3,411,839
|
Realized
and Unrealized Gain (Loss) |
|
|
|
Net
realized gain (loss) from investments and foreign currency |
(122,886,916)
|
(11,692,009)
|
(205,445,452)
|
Change
in net unrealized appreciation (depreciation) of investments and foreign currency |
(301,372,254)
|
(52,279,338)
|
(209,857,861)
|
Net
realized and unrealized gain (loss) |
(424,259,170)
|
(63,971,347)
|
(415,303,313)
|
Net
increase (decrease) in net assets from operations |
$(401,679,693)
|
$(62,299,397)
|
$(411,891,474)
|
See accompanying notes to financial statements.
Statement of Changes in Net Assets
(Unaudited)
|
Dividend
Value |
|
Mid
Cap Value |
|
Small
Cap Value |
|
Six
Months Ended 4/30/20 |
Year
Ended 10/31/19 |
|
Six
Months Ended 4/30/20 |
Year
Ended 10/31/19 |
|
Six
Months Ended 4/30/20 |
Year
Ended 10/31/19 |
Operations
|
|
|
|
|
|
|
|
|
Net
investment income (loss) |
$
22,579,477 |
$
22,778,456 |
|
$
1,671,950 |
$
3,804,104 |
|
$
3,411,839 |
$
19,186,671 |
Net
realized gain (loss) from investments and foreign currency |
(122,886,916)
|
136,560,082
|
|
(11,692,009)
|
(4,962,182)
|
|
(205,445,452)
|
(195,896,872)
|
Change
in net unrealized appreciation (depreciation) of investments and foreign currency |
(301,372,254)
|
(57,720,876)
|
|
(52,279,338)
|
36,915,276
|
|
(209,857,861)
|
168,775,638
|
Net
increase (decrease) in net assets from operations |
(401,679,693)
|
101,617,662
|
|
(62,299,397)
|
35,757,198
|
|
(411,891,474)
|
(7,934,563)
|
Distributions
to Shareholders |
|
|
|
|
|
|
|
|
Dividends:
|
|
|
|
|
|
|
|
|
Class
A Shares |
(13,840,560)
|
(21,478,363)
|
|
(508,084)
|
(2,090,136)
|
|
(1,836,890)
|
(9,218,363)
|
Class
C Shares |
(1,397,906)
|
(2,571,787)
|
|
(15,371)
|
(269,609)
|
|
(81,329)
|
(2,213,805)
|
Class
R3 Shares |
(1,423,416)
|
(2,421,158)
|
|
(67,895)
|
(305,976)
|
|
(244,673)
|
(1,486,198)
|
Class
R6 Shares |
(81,552,152)
|
(15,749,024)
|
|
(243,451)
|
(150,144)
|
|
(1,601,689)
|
(4,532,713)
|
Class
I Shares |
(42,448,579)
|
(59,923,827)
|
|
(2,966,388)
|
(7,324,416)
|
|
(13,780,598)
|
(59,648,995)
|
Decrease
in net assets from distributions to shareholders |
(140,662,613)
|
(102,144,159)
|
|
(3,801,189)
|
(10,140,281)
|
|
(17,545,179)
|
(77,100,074)
|
Fund
Share Transactions |
|
|
|
|
|
|
|
|
Proceeds
from sale of shares |
1,493,091,961
|
181,700,330
|
|
52,923,054
|
195,139,508
|
|
244,639,389
|
725,770,948
|
Proceeds
from shares issued to shareholders due to reinvestment of distributions |
134,943,908
|
89,885,116
|
|
3,481,369
|
9,082,541
|
|
14,169,324
|
61,854,103
|
|
1,628,035,869
|
271,585,446
|
|
56,404,423
|
204,222,049
|
|
258,808,713
|
787,625,051
|
Cost
of shares redeemed |
(264,823,804)
|
(407,594,403)
|
|
(64,077,418)
|
(92,882,064)
|
|
(674,452,336)
|
(1,386,388,541)
|
Net
increase (decrease) in net assets from Fund share transactions |
1,363,212,065
|
(136,008,957)
|
|
(7,672,995)
|
111,339,985
|
|
(415,643,623)
|
(598,763,490)
|
Net
increase (decrease) in net assets |
820,869,759
|
(136,535,454)
|
|
(73,773,581)
|
136,956,902
|
|
(845,080,276)
|
(683,798,127)
|
Net
assets at the beginning of period |
976,098,164
|
1,112,633,618
|
|
343,526,287
|
206,569,385
|
|
1,659,017,861
|
2,342,815,988
|
Net
assets at the end of period |
$1,796,967,923
|
$
976,098,164 |
|
$269,752,706
|
$343,526,287
|
|
$
813,937,585 |
$
1,659,017,861 |
See accompanying notes to financial statements.
Financial Highlights
(Unaudited)
Dividend Value
Selected data for a share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
Class
(Commencement Date) Year Ended October 31, |
Beginning
NAV |
Net
Investment Income (Loss)(a) |
Net
Realized/ Unrealized Gain (Loss) |
Total
|
|
From
Net Investment Income |
From
Accumulated Net Realized Gains |
Total
|
Ending
NAV |
Class
A (12/92) |
|
|
|
|
|
|
|
|
|
2020(e)
|
$14.21
|
$0.13
|
$(2.37)
|
$(2.24)
|
|
$(0.12)
|
$(0.81)
|
$(0.93)
|
$11.04
|
2019
|
14.32
|
0.26
|
0.96
|
1.22
|
|
(0.28)
|
(1.05)
|
(1.33)
|
14.21
|
2018
|
15.67
|
0.25
|
0.35
|
0.60
|
|
(0.24)
|
(1.71)
|
(1.95)
|
14.32
|
2017
|
15.12
|
0.22
|
2.72
|
2.94
|
|
(0.22)
|
(2.17)
|
(2.39)
|
15.67
|
2016
|
15.81
|
0.25
|
0.48
|
0.73
|
|
(0.30)
|
(1.12)
|
(1.42)
|
15.12
|
2015
|
17.44
|
0.28
|
(0.44)
|
(0.16)
|
|
(0.34)
|
(1.13)
|
(1.47)
|
15.81
|
Class
C (02/99) |
|
|
|
|
|
|
|
|
|
2020(e)
|
13.93
|
0.08
|
(2.33)
|
(2.25)
|
|
(0.06)
|
(0.81)
|
(0.87)
|
10.81
|
2019
|
14.06
|
0.16
|
0.93
|
1.09
|
|
(0.17)
|
(1.05)
|
(1.22)
|
13.93
|
2018
|
15.41
|
0.14
|
0.35
|
0.49
|
|
(0.13)
|
(1.71)
|
(1.84)
|
14.06
|
2017
|
14.90
|
0.11
|
2.68
|
2.79
|
|
(0.11)
|
(2.17)
|
(2.28)
|
15.41
|
2016
|
15.60
|
0.14
|
0.47
|
0.61
|
|
(0.19)
|
(1.12)
|
(1.31)
|
14.90
|
2015
|
17.23
|
0.16
|
(0.44)
|
(0.28)
|
|
(0.22)
|
(1.13)
|
(1.35)
|
15.60
|
Class
R3 (09/01) |
|
|
|
|
|
|
|
|
|
2020(e)
|
14.14
|
0.11
|
(2.36)
|
(2.25)
|
|
(0.10)
|
(0.81)
|
(0.91)
|
10.98
|
2019
|
14.26
|
0.23
|
0.94
|
1.17
|
|
(0.24)
|
(1.05)
|
(1.29)
|
14.14
|
2018
|
15.60
|
0.22
|
0.36
|
0.58
|
|
(0.21)
|
(1.71)
|
(1.92)
|
14.26
|
2017
|
15.08
|
0.18
|
2.71
|
2.89
|
|
(0.20)
|
(2.17)
|
(2.37)
|
15.60
|
2016
|
15.77
|
0.22
|
0.47
|
0.69
|
|
(0.26)
|
(1.12)
|
(1.38)
|
15.08
|
2015
|
17.41
|
0.24
|
(0.45)
|
(0.21)
|
|
(0.30)
|
(1.13)
|
(1.43)
|
15.77
|
Class
R6 (02/13) |
|
|
|
|
|
|
|
|
|
2020(e)
|
14.54
|
0.16
|
(2.43)
|
(2.27)
|
|
(0.15)
|
(0.81)
|
(0.96)
|
11.31
|
2019
|
14.61
|
0.32
|
0.99
|
1.31
|
|
(0.33)
|
(1.05)
|
(1.38)
|
14.54
|
2018
|
15.93
|
0.32
|
0.36
|
0.68
|
|
(0.29)
|
(1.71)
|
(2.00)
|
14.61
|
2017
|
15.32
|
0.25
|
2.79
|
3.04
|
|
(0.26)
|
(2.17)
|
(2.43)
|
15.93
|
2016
|
15.99
|
0.30
|
0.49
|
0.79
|
|
(0.34)
|
(1.12)
|
(1.46)
|
15.32
|
2015
|
17.62
|
0.34
|
(0.45)
|
(0.11)
|
|
(0.39)
|
(1.13)
|
(1.52)
|
15.99
|
Class
I (08/94) |
|
|
|
|
|
|
|
|
|
2020(e)
|
14.42
|
0.15
|
(2.42)
|
(2.27)
|
|
(0.14)
|
(0.81)
|
(0.95)
|
11.20
|
2019
|
14.51
|
0.30
|
0.98
|
1.28
|
|
(0.32)
|
(1.05)
|
(1.37)
|
14.42
|
2018
|
15.85
|
0.30
|
0.36
|
0.66
|
|
(0.29)
|
(1.71)
|
(2.00)
|
14.51
|
2017
|
15.27
|
0.26
|
2.75
|
3.01
|
|
(0.26)
|
(2.17)
|
(2.43)
|
15.85
|
2016
|
15.95
|
0.29
|
0.49
|
0.78
|
|
(0.34)
|
(1.12)
|
(1.46)
|
15.27
|
2015
|
17.60
|
0.33
|
(0.46)
|
(0.13)
|
|
(0.39)
|
(1.13)
|
(1.52)
|
15.95
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data |
|
|
Ratios
to Average Net Assets |
|
Total
Return(b), (c) |
Ending
Net Assets (000) |
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income(Loss) Excluding Payment From Affiliates |
Portfolio
Turnover Rate(d) |
|
|
|
|
|
|
(17.01)%
|
$
170,861 |
1.09%*
|
2.01%*
|
1.99%*
|
61%
|
9.81
|
215,710
|
1.11
|
1.94
|
N/A
|
93
|
3.72
|
264,271
|
1.08
|
1.68
|
N/A
|
68
|
20.95
|
269,063
|
1.08
|
1.46
|
N/A
|
56
|
5.33
|
259,457
|
1.14
|
1.69
|
N/A
|
67
|
(0.87)
|
310,055
|
1.15
|
1.72
|
N/A
|
53
|
|
|
|
|
|
|
(17.36)
|
16,210
|
1.84*
|
1.25*
|
1.23*
|
61
|
8.98
|
23,083
|
1.86
|
1.19
|
N/A
|
93
|
2.98
|
31,111
|
1.83
|
0.95
|
N/A
|
68
|
20.09
|
39,825
|
1.83
|
0.72
|
N/A
|
56
|
4.46
|
43,097
|
1.89
|
0.94
|
N/A
|
67
|
(1.59)
|
53,507
|
1.90
|
0.98
|
N/A
|
53
|
|
|
|
|
|
|
(17.15)
|
17,204
|
1.34*
|
1.75*
|
1.73*
|
61
|
9.50
|
23,091
|
1.36
|
1.68
|
N/A
|
93
|
3.53
|
27,927
|
1.33
|
1.44
|
N/A
|
68
|
20.64
|
33,639
|
1.33
|
1.21
|
N/A
|
56
|
5.01
|
31,758
|
1.39
|
1.49
|
N/A
|
67
|
(1.12)
|
42,618
|
1.40
|
1.45
|
N/A
|
53
|
|
|
|
|
|
|
(16.85)
|
1,138,545
|
0.69*
|
2.49*
|
2.47*
|
61
|
10.29
|
52,824
|
0.72
|
2.30
|
N/A
|
93
|
4.15
|
172,215
|
0.72
|
2.05
|
N/A
|
68
|
21.40
|
188,356
|
0.73
|
1.63
|
N/A
|
56
|
5.63
|
50,588
|
0.79
|
2.04
|
N/A
|
67
|
(0.51)
|
56,123
|
0.81
|
2.03
|
N/A
|
53
|
|
|
|
|
|
|
(16.98)
|
454,148
|
0.84*
|
2.25*
|
2.23*
|
61
|
10.14
|
661,390
|
0.86
|
2.18
|
N/A
|
93
|
4.02
|
617,086
|
0.83
|
1.94
|
N/A
|
68
|
21.25
|
561,047
|
0.83
|
1.73
|
N/A
|
56
|
5.56
|
654,967
|
0.89
|
1.95
|
N/A
|
67
|
(0.64)
|
930,850
|
0.90
|
1.99
|
N/A
|
53
|
(a)
|
Per share Net
Investment Income (Loss) is calculated using the average daily shares method. |
(b)
|
During the
current fiscal period, the Fund received voluntary compensation from the Adviser. The Fund's Total Return for each share would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded. See Note 7-Management Fees
and Other Transactions with Affiliates, for more information. |
(c)
|
Total
return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(d)
|
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
|
(e)
|
For the
six months ended April 30, 2020. |
*
|
Annualized.
|
N/A
|
Fund did
not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020. |
See accompanying notes to financial statements.
Financial Highlights (Unaudited) (continued)
Mid Cap Value
Selected data for a share
outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
Class
(Commencement Date) Year Ended October 31 |
Beginning
NAV |
Net
Investment Income (Loss)(a) |
Net
Realized/ Unrealized Gain (Loss) |
Total
|
|
From
Net Investment Income |
From
Accumulated Net Realized Gains |
Total
|
Ending
NAV |
Class
A (12/87) |
|
|
|
|
|
|
|
|
|
2020(f)
|
$41.07
|
$
0.17 |
$(8.19)
|
$(8.02)
|
|
$(0.38)
|
$
— |
$(0.38)
|
$32.67
|
2019
|
38.91
|
0.40
|
3.29
|
3.69
|
|
(0.09)
|
(1.44)
|
(1.53)
|
41.07
|
2018
|
42.32
|
0.29
|
(0.46)
|
(0.17)
|
|
(0.26)
|
(2.98)
|
(3.24)
|
38.91
|
2017
|
35.23
|
0.26
|
8.17
|
8.43
|
|
(0.32)
|
(1.02)
|
(1.34)
|
42.32
|
2016
|
35.39
|
0.30
|
0.72
|
1.02
|
|
(0.09)
|
(1.09)
|
(1.18)
|
35.23
|
2015
|
35.37
|
0.10
|
0.22
|
0.32
|
|
(0.30)
|
—
|
(0.30)
|
35.39
|
Class
C (02/99) |
|
|
|
|
|
|
|
|
|
2020(f)
|
38.49
|
0.03
|
(7.73)
|
(7.70)
|
|
(0.08)
|
—
|
(0.08)
|
30.71
|
2019
|
36.73
|
0.11
|
3.09
|
3.20
|
|
—
|
(1.44)
|
(1.44)
|
38.49
|
2018
|
40.17
|
(
—)* |
(0.46)
|
(0.46)
|
|
—
|
(2.98)
|
(2.98)
|
36.73
|
2017
|
33.50
|
(0.03)
|
7.78
|
7.75
|
|
(0.06)
|
(1.02)
|
(1.08)
|
40.17
|
2016
|
33.86
|
0.04
|
0.69
|
0.73
|
|
—
|
(1.09)
|
(1.09)
|
33.50
|
2015
|
33.86
|
(0.16)
|
0.20
|
0.04
|
|
(0.04)
|
—
|
(0.04)
|
33.86
|
Class
R3 (09/01) |
|
|
|
|
|
|
|
|
|
2020(f)
|
40.67
|
0.12
|
(8.12)
|
(8.00)
|
|
(0.28)
|
—
|
(0.28)
|
32.39
|
2019
|
38.55
|
0.31
|
3.25
|
3.56
|
|
—
|
(1.44)
|
(1.44)
|
40.67
|
2018
|
41.95
|
0.18
|
(0.44)
|
(0.26)
|
|
(0.16)
|
(2.98)
|
(3.14)
|
38.55
|
2017
|
34.94
|
0.17
|
8.09
|
8.26
|
|
(0.23)
|
(1.02)
|
(1.25)
|
41.95
|
2016
|
35.17
|
0.21
|
0.65
|
0.86
|
|
—
|
(1.09)
|
(1.09)
|
34.94
|
2015
|
35.15
|
0.02
|
0.21
|
0.23
|
|
(0.21)
|
—
|
(0.21)
|
35.17
|
Class
R6 (06/18) |
|
|
|
|
|
|
|
|
|
2020(f)
|
41.32
|
0.24
|
(8.21)
|
(7.97)
|
|
(0.52)
|
—
|
(0.52)
|
32.83
|
2019
|
39.10
|
0.55
|
3.30
|
3.85
|
|
(0.19)
|
(1.44)
|
(1.63)
|
41.32
|
2018(g)
|
42.86
|
0.11
|
(3.87)
|
(3.76)
|
|
—
|
—
|
—
|
39.10
|
Class
I (02/94) |
|
|
|
|
|
|
|
|
|
2020(f)
|
41.24
|
0.22
|
(8.21)
|
(7.99)
|
|
(0.48)
|
—
|
(0.48)
|
32.77
|
2019
|
39.08
|
0.51
|
3.28
|
3.79
|
|
(0.19)
|
(1.44)
|
(1.63)
|
41.24
|
2018
|
42.49
|
0.40
|
(0.47)
|
(0.07)
|
|
(0.36)
|
(2.98)
|
(3.34)
|
39.08
|
2017
|
35.36
|
0.36
|
8.20
|
8.56
|
|
(0.41)
|
(1.02)
|
(1.43)
|
42.49
|
2016
|
35.52
|
0.38
|
0.73
|
1.11
|
|
(0.18)
|
(1.09)
|
(1.27)
|
35.36
|
2015
|
35.50
|
0.20
|
0.20
|
0.40
|
|
(0.38)
|
—
|
(0.38)
|
35.52
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data |
|
|
Ratios
to Average Net Assets Before Waiver/Reimbursement |
|
Ratios
to Average Net Assets After Waiver/Reimbursement(d) |
|
Total
Return(b), (c) |
Ending
Net Assets (000) |
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
|
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
Portfolio
Turnover Rate(e) |
|
|
|
|
|
|
|
|
|
|
(19.74)%
|
$
39,695 |
1.29%***
|
0.77%***
|
0.75%***
|
|
1.17%***
|
0.90%***
|
0.88%***
|
12%
|
10.19
|
55,467
|
1.27
|
0.94
|
N/A
|
|
1.17
|
1.04
|
N/A
|
46
|
(0.65)
|
51,202
|
1.31
|
0.55
|
N/A
|
|
1.17
|
0.69
|
N/A
|
49
|
24.43
|
40,319
|
1.32
|
0.52
|
N/A
|
|
1.17
|
0.67
|
N/A
|
43
|
3.12
|
34,230
|
1.39
|
0.73
|
N/A
|
|
1.26
|
0.86
|
N/A
|
44
|
0.89
|
36,378
|
1.41
|
0.20
|
N/A
|
|
1.32
|
0.29
|
N/A
|
111
|
|
|
|
|
|
|
|
|
|
|
(20.05)
|
5,056
|
2.04***
|
0.03***
|
0.01***
|
|
1.92***
|
0.15***
|
0.13***
|
12
|
9.39
|
7,631
|
2.02
|
0.20
|
N/A
|
|
1.92
|
0.30
|
N/A
|
46
|
(1.41)
|
6,899
|
2.06
|
(0.14)
|
N/A
|
|
1.92
|
( —)**
|
N/A
|
49
|
23.52
|
7,474
|
2.07
|
(0.23)
|
N/A
|
|
1.92
|
(0.08)
|
N/A
|
43
|
2.32
|
6,529
|
2.14
|
(0.02)
|
N/A
|
|
2.01
|
0.11
|
N/A
|
44
|
0.15
|
7,379
|
2.16
|
(0.55)
|
N/A
|
|
2.07
|
(0.46)
|
N/A
|
111
|
|
|
|
|
|
|
|
|
|
|
(19.83)
|
7,745
|
1.54***
|
0.50***
|
0.48***
|
|
1.42***
|
0.62***
|
0.60***
|
12
|
9.92
|
10,230
|
1.52
|
0.70
|
N/A
|
|
1.42
|
0.81
|
N/A
|
46
|
(0.90)
|
7,670
|
1.56
|
0.30
|
N/A
|
|
1.42
|
0.44
|
N/A
|
49
|
24.11
|
5,284
|
1.57
|
0.28
|
N/A
|
|
1.42
|
0.43
|
N/A
|
43
|
2.86
|
5,206
|
1.64
|
0.48
|
N/A
|
|
1.51
|
0.61
|
N/A
|
44
|
0.65
|
6,942
|
1.66
|
(0.04)
|
N/A
|
|
1.57
|
0.05
|
N/A
|
111
|
|
|
|
|
|
|
|
|
|
|
(19.58)
|
15,777
|
0.89***
|
1.14***
|
1.12***
|
|
0.77***
|
1.26***
|
1.24***
|
12
|
10.63
|
19,481
|
0.87
|
1.29
|
N/A
|
|
0.77
|
1.39
|
N/A
|
46
|
(8.77)
|
958
|
0.93***
|
0.56***
|
N/A
|
|
0.79***
|
0.71***
|
N/A
|
49
|
|
|
|
|
|
|
|
|
|
|
(19.64)
|
201,480
|
1.04***
|
1.01***
|
0.99***
|
|
0.92***
|
1.12***
|
1.10***
|
12
|
10.48
|
250,717
|
1.02
|
1.20
|
N/A
|
|
0.92
|
1.30
|
N/A
|
46
|
(0.40)
|
139,841
|
1.07
|
0.80
|
N/A
|
|
0.92
|
0.95
|
N/A
|
49
|
24.75
|
57,365
|
1.07
|
0.77
|
N/A
|
|
0.92
|
0.92
|
N/A
|
43
|
3.38
|
53,631
|
1.14
|
0.98
|
N/A
|
|
1.01
|
1.11
|
N/A
|
44
|
1.12
|
67,834
|
1.16
|
0.46
|
N/A
|
|
1.07
|
0.55
|
N/A
|
111
|
(a)
|
Per share Net
Investment Income (Loss) is calculated using the average daily shares method. |
(b)
|
During the
current fiscal period, the Fund received voluntary compensation from the Adviser. The Fund's Total Return for each share would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded. See Note 7-Management Fees
and Other Transactions with Affiliates, for more information. |
(c)
|
Total
return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(d)
|
After fee
waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, for more information. |
(e)
|
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
|
(f)
|
For the
six months ended April 30, 2020. |
(g)
|
For the
period June 30, 2018 (commencement of operations) through October 31, 2018. |
*
|
Rounds to
more than $(0.01). |
**
|
Rounds to
less than 0.01%. |
***
|
Annualized.
|
N/A
|
Fund did
not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020. |
See accompanying notes to financial statements.
Financial Highlights (Unaudited) (continued)
Small Cap Value
Selected data for a share
outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
Class
(Commencement Date) Year Ended October 31 |
Beginning
NAV |
Net
Investment Income (Loss)(a) |
Net
Realized/ Unrealized Gain (Loss) |
Total
|
|
From
Net Investment Income |
From
Accumulated Net Realized Gains |
Total
|
Ending
NAV |
Class
A (08/94) |
|
|
|
|
|
|
|
|
|
2020(f)
|
$22.19
|
$
0.02 |
$(6.30)
|
$(6.28)
|
|
$(0.21)
|
$
— |
$(0.21)
|
$15.70
|
2019
|
22.96
|
0.18
|
(0.17)
|
0.01
|
|
(0.13)
|
(0.65)
|
(0.78)
|
22.19
|
2018
|
25.19
|
0.12
|
(2.15)
|
(2.03)
|
|
(0.10)
|
(0.10)
|
(0.20)
|
22.96
|
2017
|
20.98
|
0.11
|
4.70
|
4.81
|
|
(0.09)
|
(0.51)
|
(0.60)
|
25.19
|
2016
|
19.95
|
0.14
|
1.20
|
1.34
|
|
(0.01)
|
(0.30)
|
(0.31)
|
20.98
|
2015
|
18.55
|
0.07
|
1.40
|
1.47
|
|
(0.07)
|
—
|
(0.07)
|
19.95
|
Class
C (02/99) |
|
|
|
|
|
|
|
|
|
2020(f)
|
18.62
|
(0.05)
|
(5.32)
|
(5.37)
|
|
(0.04)
|
—
|
(0.04)
|
13.21
|
2019
|
19.39
|
0.01
|
(0.13)
|
(0.12)
|
|
—
|
(0.65)
|
(0.65)
|
18.62
|
2018
|
21.36
|
(0.06)
|
(1.81)
|
(1.87)
|
|
—
|
(0.10)
|
(0.10)
|
19.39
|
2017
|
17.92
|
(0.06)
|
4.01
|
3.95
|
|
—
|
(0.51)
|
(0.51)
|
21.36
|
2016
|
17.20
|
(0.01)
|
1.03
|
1.02
|
|
—
|
(0.30)
|
(0.30)
|
17.92
|
2015
|
16.06
|
(0.07)
|
1.21
|
1.14
|
|
—
|
—
|
—
|
17.20
|
Class
R3 (09/01) |
|
|
|
|
|
|
|
|
|
2020(f)
|
21.68
|
(0.01)
|
(6.17)
|
(6.18)
|
|
(0.15)
|
—
|
(0.15)
|
15.35
|
2019
|
22.43
|
0.12
|
(0.15)
|
(0.03)
|
|
(0.07)
|
(0.65)
|
(0.72)
|
21.68
|
2018
|
24.61
|
0.05
|
(2.09)
|
(2.04)
|
|
(0.04)
|
(0.10)
|
(0.14)
|
22.43
|
2017
|
20.51
|
0.05
|
4.60
|
4.65
|
|
(0.04)
|
(0.51)
|
(0.55)
|
24.61
|
2016
|
19.56
|
0.09
|
1.16
|
1.25
|
|
—
|
(0.30)
|
(0.30)
|
20.51
|
2015
|
18.19
|
0.02
|
1.38
|
1.40
|
|
(0.03)
|
—
|
(0.03)
|
19.56
|
Class
R6 (06/16) |
|
|
|
|
|
|
|
|
|
2020(f)
|
23.09
|
0.04
|
(6.52)
|
(6.48)
|
|
(0.29)
|
—
|
(0.29)
|
16.32
|
2019
|
23.83
|
0.29
|
(0.18)
|
0.11
|
|
(0.20)
|
(0.65)
|
(0.85)
|
23.09
|
2018
|
26.09
|
0.23
|
(2.22)
|
(1.99)
|
|
(0.17)
|
(0.10)
|
(0.27)
|
23.83
|
2017
|
21.71
|
0.21
|
4.84
|
5.05
|
|
(0.16)
|
(0.51)
|
(0.67)
|
26.09
|
2016(g)
|
21.08
|
0.07
|
0.56
|
0.63
|
|
—
|
—*
|
—*
|
21.71
|
Class
I (08/94) |
|
|
|
|
|
|
|
|
|
2020(f)
|
23.00
|
0.07
|
(6.55)
|
(6.48)
|
|
(0.27)
|
—
|
(0.27)
|
16.25
|
2019
|
23.79
|
0.24
|
(0.18)
|
0.06
|
|
(0.20)
|
(0.65)
|
(0.85)
|
23.00
|
2018
|
26.09
|
0.19
|
(2.22)
|
(2.03)
|
|
(0.17)
|
(0.10)
|
(0.27)
|
23.79
|
2017
|
21.70
|
0.17
|
4.88
|
5.05
|
|
(0.15)
|
(0.51)
|
(0.66)
|
26.09
|
2016
|
20.63
|
0.19
|
1.24
|
1.43
|
|
(0.06)
|
(0.30)
|
(0.36)
|
21.70
|
2015
|
19.18
|
0.12
|
1.45
|
1.57
|
|
(0.12)
|
—
|
(0.12)
|
20.63
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data |
|
|
Ratios
to Average Net Assets Before Waiver/Reimbursement |
|
Ratios
to Average Net Assets After Waiver/Reimbursement(d) |
|
Total
Return(b), (c) |
Ending
Net Assets (000) |
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
|
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
Portfolio
Turnover Rate(e) |
|
|
|
|
|
|
|
|
|
|
(28.60)%
|
$
110,556 |
1.30%**
|
0.11%**
|
0.09%**
|
|
1.20%**
|
0.21%**
|
0.19%**
|
16%
|
0.44
|
213,819
|
1.28
|
0.73
|
N/A
|
|
1.20
|
0.81
|
N/A
|
31
|
(8.12)
|
291,122
|
1.24
|
0.43
|
N/A
|
|
1.20
|
0.47
|
N/A
|
35
|
23.06
|
326,495
|
1.26
|
0.43
|
N/A
|
|
1.22
|
0.46
|
N/A
|
29
|
6.85
|
167,840
|
1.34
|
0.65
|
N/A
|
|
1.30
|
0.68
|
N/A
|
40
|
7.95
|
48,656
|
1.40
|
0.32
|
N/A
|
|
1.39
|
0.34
|
N/A
|
49
|
|
|
|
|
|
|
|
|
|
|
(28.92)
|
26,142
|
2.05**
|
(0.66)**
|
(0.68)**
|
|
1.95**
|
(0.56)**
|
(0.58)**
|
16
|
(0.28)
|
45,920
|
2.03
|
(0.01)
|
N/A
|
|
1.95
|
0.07
|
N/A
|
31
|
(8.80)
|
70,077
|
1.99
|
(0.32)
|
N/A
|
|
1.95
|
(0.28)
|
N/A
|
35
|
22.14
|
71,902
|
2.01
|
(0.33)
|
N/A
|
|
1.97
|
(0.29)
|
N/A
|
29
|
6.08
|
26,815
|
2.09
|
(0.11)
|
N/A
|
|
2.05
|
(0.08)
|
N/A
|
40
|
7.10
|
4,507
|
2.15
|
(0.44)
|
N/A
|
|
2.14
|
(0.42)
|
N/A
|
49
|
|
|
|
|
|
|
|
|
|
|
(28.72)
|
23,372
|
1.55**
|
(0.24)**
|
(0.26)**
|
|
1.45**
|
(0.15)**
|
(0.17)**
|
16
|
0.21
|
37,296
|
1.53
|
0.48
|
N/A
|
|
1.45
|
0.56
|
N/A
|
31
|
(8.34)
|
47,205
|
1.49
|
0.17
|
N/A
|
|
1.45
|
0.21
|
N/A
|
35
|
22.79
|
42,975
|
1.51
|
0.18
|
N/A
|
|
1.47
|
0.22
|
N/A
|
29
|
6.58
|
26,510
|
1.59
|
0.43
|
N/A
|
|
1.56
|
0.46
|
N/A
|
40
|
7.62
|
14,516
|
1.65
|
0.07
|
N/A
|
|
1.64
|
0.09
|
N/A
|
49
|
|
|
|
|
|
|
|
|
|
|
(28.46)
|
99,003
|
0.85**
|
0.30**
|
0.28**
|
|
0.76**
|
0.39**
|
0.37**
|
16
|
0.90
|
133,071
|
0.83
|
1.18
|
N/A
|
|
0.75
|
1.26
|
N/A
|
31
|
(7.73)
|
121,943
|
0.82
|
0.82
|
N/A
|
|
0.78
|
0.86
|
N/A
|
35
|
23.40
|
52,508
|
0.85
|
0.82
|
N/A
|
|
0.81
|
0.86
|
N/A
|
29
|
3.00
|
19,967
|
0.89**
|
0.85**
|
N/A
|
|
0.83**
|
0.91**
|
N/A
|
40
|
|
|
|
|
|
|
|
|
|
|
(28.53)
|
554,864
|
1.05**
|
0.53**
|
0.51**
|
|
0.95**
|
0.63**
|
0.61**
|
16
|
0.69
|
1,228,912
|
1.03
|
0.99
|
N/A
|
|
0.95
|
1.06
|
N/A
|
31
|
(7.88)
|
1,812,444
|
0.99
|
0.67
|
N/A
|
|
0.95
|
0.71
|
N/A
|
35
|
23.40
|
1,444,587
|
1.01
|
0.66
|
N/A
|
|
0.97
|
0.70
|
N/A
|
29
|
7.09
|
369,016
|
1.09
|
0.90
|
N/A
|
|
1.05
|
0.93
|
N/A
|
40
|
8.22
|
91,044
|
1.15
|
0.58
|
N/A
|
|
1.14
|
0.59
|
N/A
|
49
|
(a)
|
Per share Net
Investment Income (Loss) is calculated using the average daily shares method. |
(b)
|
During the
current fiscal period, the Fund received voluntary compensation from the Adviser. The Fund's Total Return for each share would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded. See Note 7-Management Fees
and Other Transactions with Affiliates, for more information. |
(c)
|
Total
return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(d)
|
After fee
waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, for more information. |
(e)
|
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
|
(f)
|
For the
six months ended April 30, 2020. |
(g)
|
For the
period June 30, 2016 (commencement of operations) through October 31, 2016. |
*
|
Rounds to
more than $(0.01). |
**
|
Annualized.
|
N/A
|
Fund did
not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020. |
See accompanying notes to financial statements.
Notes to Financial Statements
(Unaudited)
1. General Information
Trust and Fund Information
Nuveen Investment Funds, Inc. (the “Trust”), is an
open-end management investment company registered under the Investment Company Act of 1940 (the "1940 Act"), as amended. The Trust is comprised of Nuveen Dividend Value Fund (“Dividend Value”), Nuveen Mid Cap Value Fund (“Mid Cap
Value”) and Nuveen Small Cap Value Fund (“Small Cap Value”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August
20, 1987.
The end of the reporting period for the Funds
is April 30, 2020, and the period covered by these Notes to Financial Statements is the six months ended April 30, 2020 (the “current fiscal period”).
Investment Adviser and Sub-Adviser
The Funds’ investment adviser is Nuveen Fund Advisors,
LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of
the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has
entered into sub-advisory agreements with Nuveen Asset Management, LLC (the "Sub-Adviser"), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales
charge. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”) of 1% if redeemed within eighteen
months of purchase. Class C Shares are sold without an up-front sales charge but are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class C Shares automatically convert to Class A Shares ten years after purchase. Class R3, R6
and I Shares are sold without an upfront sales charge.
Fund Reorganizations
In April 2020 the Funds’ Board of Directors (the
“Board”) approved the reorganization of Nuveen Large Cap Value Fund (the “Acquired Fund”) Dividend Value (the “Acquiring Fund”), (the "Reorganization"), each a series of Nuveen Investment Trust and Nuveen
Investment Funds Inc., respectively, which are advised by the Adviser. The Reorganization is pending approval of the Acquired Fund shareholders.
Upon the closing of the Reorganization, the Acquired Fund will
transfer its assets to the Acquiring Fund in exchange for shares of the Acquiring Fund and the assumption by the Acquiring Fund of the liabilities of the Acquired Fund. The Acquired Fund will then be liquidated, dissolved and terminated in
accordance with its Declaration of Trust. Shareholders of the Acquired Fund will become shareholders of the Acquiring Fund. The Acquired Fund shareholders will receive shares of the Acquiring Fund, the aggregate NAV of which is equal to the
aggregate NAV of the shares of the Acquired Fund held immediately prior to the Reorganization (including for this purpose fractional Acquiring Fund shares to which shareholders would be entitled).
Other Matters
The outbreak of the novel coronavirus (“COVID-19”)
and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global
economy. The duration and extent of COVID-19 over the long-term cannot be reasonably estimated at this time. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have on
the Funds’ financial performance. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ normal course of business, results of operations, investments, and cash flows will depend on future developments, which
are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.
2. Significant Accounting Policies
The accompanying financial statements were prepared in
accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from
those estimates. Each Fund is an investment company and follows accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The NAV for
financial reporting purposes may differ from the NAV for
processing security and shareholder transactions. The NAV for financial
reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing security and shareholder transactions. The following is a summary of the significant
accounting policies consistently followed by the Funds.
Compensation
The Trust pays no compensation directly to those of its
directors who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board has adopted a deferred compensation plan for independent directors that
enables directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested
in shares of select Nuveen-advised funds.
Distributions
to Shareholders
Distributions to shareholders are
recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Foreign Currency Transactions and Translation
The books and records of the Funds are maintained in U.S.
dollars. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollars at the end of each day. Purchases and sales of securities, income and expenses are translated into U.S. dollars at each
prevailing exchange rate on the respective dates of the transactions.
Net realized foreign currency gains and losses resulting from
changes in exchange rates associated with (i) foreign currency, (ii) investments and (iii) derivatives include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the
difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received are recognized as a component of "Net realized gain (loss) from investments and foreign currency" on the Statement of
Operations, when applicable.
The unrealized gains and
losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments and (ii) other assets and liabilities are recognized as a component of “Change in net unrealized
appreciation (depreciation) of investments and foreign currency” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are
recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
Indemnifications
Under the Trust’s organizational documents, its officers
and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other
parties. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Investments and Investment Income
Securities transactions are accounted for as of the trade date
for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for 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. Securities lending income is comprised of fees earned from borrowers and
income earned on cash collateral investments.
Multiclass
Operations and Allocations
Income and expenses of the
Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets each class. Expenses directly attributable to a class of shares are recorded to the specific class. 12b-1
distribution and service fees are allocated on a class-specific basis.
Sub-transfer agent fees and similar fees, which are recognized
as a component of “Shareholder servicing agent fees” on the Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on their relative net assets.
Realized and unrealized capital gains and losses of the Funds
are prorated among the classes based on the relative net assets of each class.
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 4 – Portfolio Securities and Investments in Derivatives.
Notes to Financial Statements (Unaudited) (continued)
New Accounting Pronouncements and Rule Issuances
Fair Value Measurement: Disclosure Framework
During August 2018, the FASB issued Accounting Standards Update
("ASU") 2018-13 (“ASU 2018-13”), Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 modifies the
disclosures required by Topic 820, Fair Value Measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2019. Management has early implemented this guidance and it did not have a material impact on the Funds' financial statements.
Reference Rate Reform
In March 2020, FASB issued ASU 2020-04, Reference Rate Reform:
Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when
participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only change to existing contracts are a change to
an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December
31, 2022. Management has not yet elected to apply the amendments, but is currently assessing the impact of the ASU’s adoption to the Funds’ financial statements and various filings.
3. Investment Valuation and Fair Value
Measurements
The fair valuation input levels as described
below are for fair value measurement purposes.
The Funds'
investments in securities are recorded at their estimated fair value. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal
or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure
purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect
the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of
the three-tiered hierarchy of valuation input levels.
Level 1
– Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2
– Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3
– Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
Common stocks and other equity-type securities are valued at
the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the Nasdaq National Market (“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
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 New York Stock Exchange (“NYSE”), which may represent a transfer from a Level 1 to a Level 2 security.
Investments in investment companies are valued at their
respective NAVs on the valuation date and are generally classified as Level 1.
Investments initially valued in currencies other than the U.S.
dollar are converted to the U.S. dollar using exchange rates obtained from independent pricing services (“pricing service”). As a result, the NAV of the 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 Fund's NAV is determined, or if under the Fund's 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 materi-
ally 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:
Dividend
Value |
Level
1 |
Level
2 |
Level
3 |
Total
|
Long-Term
Investments*: |
|
|
|
|
Common
Stocks |
$1,791,632,554
|
$ —
|
$ —
|
$1,791,632,554
|
Short-Term
Investments: |
|
|
|
|
Money
Market Funds |
37,191,047
|
—
|
—
|
37,191,047
|
Total
|
$1,828,823,601
|
$ —
|
$ —
|
$1,828,823,601
|
Mid
Cap Value |
Level
1 |
Level
2 |
Level
3 |
Total
|
Long-Term
Investments*: |
|
|
|
|
Common
Stocks |
$265,223,605
|
$ —
|
$ —
|
$265,223,605
|
Investments
Purchased with Collateral from Securities Lending |
548,725
|
—
|
—
|
548,725
|
Short-Term
Investments: |
|
|
|
|
Money
Market Funds |
3,741,107
|
—
|
—
|
3,741,107
|
Total
|
$269,513,437
|
$ —
|
$ —
|
$269,513,437
|
Small
Cap Value |
Level
1 |
Level
2 |
Level
3 |
Total
|
Long-Term
Investments*: |
|
|
|
|
Common
Stocks |
$810,402,427
|
$ —
|
$ —
|
$810,402,427
|
Investments
Purchased with Collateral from Securities Lending |
511,875
|
—
|
—
|
511,875
|
Short-Term
Investments: |
|
|
|
|
Money
Market Funds |
2,318,774
|
—
|
—
|
2,318,774
|
Total
|
$813,233,076
|
$ —
|
$ —
|
$813,233,076
|
*
|
Refer
to the Fund's Portfolio of Investments for industry classifications. |
4. Portfolio Securities and Investments in
Derivatives
Securities Lending
In order to generate additional income, each Fund may lend
securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, each Fund retains the benefits of owning the
securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
Each Fund’s policy is to receive, at the inception of a
loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan
is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at
the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on
the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time
at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Fund securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned
securities, the Fund has the right to use the collateral to acquire identical securities. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Fund. Under the Funds’
securities lending agreement, however, the securities lending agent has
Notes to Financial Statements (Unaudited) (continued)
indemnified the Fund against losses resulting from borrower default, except to
the extent that those losses result from a decrease in the value of the collateral due to its investment by the Funds. The Funds bear the risk of loss with respect to the investment of collateral.
The Funds’ custodian, U.S. Bank National Association,
serves as their securities lending agent. Income earned from the securities lending program is paid to the Funds. Income from securities lending, is recognized as “Securities lending income” on the Statement of Operations.
The following table presents the securities out on loan for the
following Funds, and the collateral delivered related to those securities, as of the end of the reporting period.
Fund
|
Asset
Class out on Loan |
Long-Term
Investments, at Value |
Collateral
Pledged (From) Counterparty* |
Net
Exposure |
Mid
Cap Value |
Common
Stocks |
$518,175
|
$(518,175)
|
$ –
|
Small
Cap Value |
Common
Stocks |
488,150
|
(488,150)
|
–
|
* As of the end of the reporting
period, the value of the collateral pledged from the counterparty exceeded the value of the securities out on loan. Refer to the Fund’s Portfolio of Investments for details on the securities out on loan.
Investment Transactions
Long-term purchases and sales (excluding investments purchased
with collateral from securities lending, where applicable) during the current fiscal period were as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Purchases
|
$2,345,673,548
|
$37,409,886
|
$205,700,774
|
Sales
|
1,101,918,497
|
38,155,431
|
616,640,941
|
The Funds may purchase securities
on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market
fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. If a Fund has outstanding
when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.
Investments in Derivatives
Each Fund is authorized to invest in certain derivative
instruments. 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.
Although the Funds are authorized to invest in derivative
instruments, and may do so in the future, they did not make any such investments during the current fiscal period.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in
financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss
could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap
transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering
into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to
pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
5. Fund Shares
On December 12, 2018, Class T Shares were liquidated.
Transactions in Fund shares during the current and prior fiscal
period were as follows:
|
Six
Months Ended 4/30/20 |
|
Year
Ended 10/31/19 |
Dividend
Value |
Shares
|
Amount
|
|
Shares
|
Amount
|
Shares
sold: |
|
|
|
|
|
Class
A |
1,171,248
|
$
13,906,065 |
|
1,677,446
|
$
22,337,847 |
Class
A – automatic conversion of Class C Shares |
54
|
621
|
|
73
|
957
|
Class
C |
107,202
|
1,260,844
|
|
282,093
|
3,628,341
|
Class
R3 |
102,963
|
1,096,082
|
|
94,117
|
1,238,755
|
Class
R6 |
100,108,405
|
1,462,401,620
|
|
1,213,050
|
16,346,121
|
Class
I |
1,131,587
|
14,426,729
|
|
10,166,912
|
138,148,309
|
Shares
issued to shareholders due to reinvestment of distributions: |
|
|
|
|
|
Class
A |
969,001
|
13,296,096
|
|
1,576,032
|
19,941,966
|
Class
C |
93,369
|
1,268,305
|
|
190,846
|
2,353,410
|
Class
R3 |
100,990
|
1,383,786
|
|
183,244
|
2,302,765
|
Class
R6 |
5,851,098
|
81,541,770
|
|
1,204,312
|
15,528,414
|
Class
I |
2,686,035
|
37,453,951
|
|
3,866,297
|
49,758,561
|
|
112,321,952
|
1,628,035,869
|
|
20,454,422
|
271,585,446
|
Shares
redeemed: |
|
|
|
|
|
Class
A |
(1,840,234)
|
(23,341,988)
|
|
(6,531,277)
|
(90,310,449)
|
Class
C |
(358,423)
|
(4,404,322)
|
|
(1,029,242)
|
(13,485,277)
|
Class
C – automatic conversion to Class A Shares |
(55)
|
(621)
|
|
(75)
|
(957)
|
Class
R3 |
(270,303)
|
(3,454,088)
|
|
(603,862)
|
(8,169,371)
|
Class
R6 |
(8,895,460)
|
(118,132,955)
|
|
(10,573,604)
|
(150,778,977)
|
Class
I |
(9,163,096)
|
(115,489,830)
|
|
(10,684,542)
|
(144,825,589)
|
Class
T(1) |
—
|
—
|
|
(1,667)
|
(23,783)
|
|
(20,527,571)
|
(264,823,804)
|
|
(29,424,269)
|
(407,594,403)
|
Net
increase (decrease) |
91,794,381
|
$1,363,212,065
|
|
(8,969,847)
|
$(136,008,957)
|
(1)
|
Class T
Shares were not available for public offering. |
|
Six
Months Ended 4/30/20 |
|
Year
Ended 10/31/19 |
Mid
Cap Value |
Shares
|
Amount
|
|
Shares
|
Amount
|
Shares
sold: |
|
|
|
|
|
Class
A |
93,601
|
$
3,481,801 |
|
497,321
|
$
18,815,351 |
Class
A – automatic conversion of Class C Shares |
130
|
5,313
|
|
355
|
13,927
|
Class
C |
12,843
|
481,834
|
|
59,705
|
2,084,825
|
Class
R3 |
34,294
|
1,186,912
|
|
87,365
|
3,251,223
|
Class
R6 |
50,285
|
1,815,288
|
|
523,102
|
20,076,145
|
Class
I |
1,273,143
|
45,951,906
|
|
4,015,539
|
150,898,037
|
Shares
issued to shareholders due to reinvestment of distributions: |
|
|
|
|
|
Class
A |
11,554
|
493,467
|
|
57,804
|
2,013,596
|
Class
C |
377
|
15,175
|
|
8,113
|
266,263
|
Class
R3 |
1,602
|
67,895
|
|
8,859
|
305,976
|
Class
R6 |
5,674
|
243,148
|
|
4,274
|
149,193
|
Class
I |
62,189
|
2,661,684
|
|
181,850
|
6,347,513
|
|
1,545,692
|
56,404,423
|
|
5,444,287
|
204,222,049
|
Shares
redeemed: |
|
|
|
|
|
Class
A |
(240,639)
|
(9,582,937)
|
|
(520,883)
|
(20,059,388)
|
Class
C |
(46,715)
|
(1,614,592)
|
|
(56,974)
|
(2,072,802)
|
Class
C – automatic conversion to Class A Shares |
(139)
|
(5,313)
|
|
(378)
|
(13,927)
|
Class
R3 |
(48,243)
|
(1,945,194)
|
|
(43,711)
|
(1,650,505)
|
Class
R6 |
(46,831)
|
(1,809,784)
|
|
(80,400)
|
(3,177,406)
|
Class
I |
(1,265,736)
|
(49,119,598)
|
|
(1,695,877)
|
(65,908,036)
|
|
(1,648,303)
|
(64,077,418)
|
|
(2,398,223)
|
(92,882,064)
|
Net
increase (decrease) |
(102,611)
|
$
(7,672,995) |
|
3,046,064
|
$111,339,985
|
Notes to Financial Statements (Unaudited) (continued)
|
Six
Months Ended 4/30/20 |
|
Year
Ended 10/31/19 |
Small
Cap Value |
Shares
|
Amount
|
|
Shares
|
Amount
|
Shares
sold: |
|
|
|
|
|
Class
A |
916,847
|
$
16,332,084 |
|
2,967,618
|
$
64,293,133 |
Class
A – automatic conversion of Class C Shares |
24
|
484
|
|
13
|
286
|
Class
C |
123,616
|
1,998,797
|
|
288,301
|
5,290,745
|
Class
R3 |
211,244
|
3,588,971
|
|
362,916
|
7,727,713
|
Class
R6 |
2,483,218
|
50,513,275
|
|
3,301,739
|
75,508,622
|
Class
I |
9,155,317
|
172,205,778
|
|
25,415,266
|
572,950,449
|
Shares
issued to shareholders due to reinvestment of distributions: |
|
|
|
|
|
Class
A |
66,708
|
1,512,264
|
|
369,605
|
7,401,118
|
Class
C |
3,856
|
73,760
|
|
119,856
|
2,024,376
|
Class
R3 |
10,488
|
232,719
|
|
69,740
|
1,366,231
|
Class
R6 |
55,325
|
1,301,811
|
|
193,478
|
4,015,160
|
Class
I |
471,163
|
11,048,770
|
|
2,270,710
|
47,047,218
|
|
13,497,806
|
258,808,713
|
|
35,359,242
|
787,625,051
|
Shares
redeemed: |
|
|
|
|
|
Class
A |
(3,575,290)
|
(71,993,540)
|
|
(6,381,541)
|
(139,034,945)
|
Class
C |
(615,695)
|
(9,911,808)
|
|
(1,555,408)
|
(28,497,743)
|
Class
C – automatic conversion to Class A Shares |
(28)
|
(484)
|
|
(15)
|
(286)
|
Class
R3 |
(419,681)
|
(7,998,964)
|
|
(816,795)
|
(17,524,715)
|
Class
R6 |
(2,234,769)
|
(43,776,697)
|
|
(2,849,621)
|
(64,694,141)
|
Class
I |
(28,906,855)
|
(540,770,843)
|
|
(50,448,584)
|
(1,136,613,380)
|
Class
T(1) |
—
|
—
|
|
(1,036)
|
(23,331)
|
|
(35,752,318)
|
(674,452,336)
|
|
(62,053,000)
|
(1,386,388,541)
|
Net
increase (decrease) |
(22,254,512)
|
$(415,643,623)
|
|
(26,693,758)
|
$
(598,763,490) |
(1)
|
Class T
Shares were not available for public offering. |
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 income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated
investment companies. Therefore, no federal income tax provision is required.
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 recognizing certain gains and losses on investment transactions. To the
extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the
NAVs of the Funds.
The table below presents the cost and
unrealized appreciation (depreciation) of each Fund’s investment portfolio, as determined on a federal income tax basis, as of April 30, 2020.
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Tax
cost of investments |
$1,968,035,367
|
$285,028,270
|
$
986,129,674 |
Gross
unrealized: |
|
|
|
Appreciation
|
$
85,989,059 |
$
20,854,129 |
$
47,109,532 |
Depreciation
|
(225,200,825)
|
(36,917,687)
|
(220,518,005)
|
Net
unrealized appreciation (depreciation) of investments |
$
(139,211,766) |
$
(16,063,558) |
$(173,408,473)
|
Permanent differences, primarily
due to federal taxes paid and tax equalization, resulted in reclassifications among the Funds’ components of net assets as of October 31, 2019 the Funds’ last tax year end.
The tax components of undistributed net ordinary income and net
long-term capital gains as of October 31, 2019, the Funds' last tax year end, were as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Undistributed
net ordinary income1 |
$
3,019,511 |
$3,801,327
|
$11,967,251
|
Undistributed
net long-term capital gains |
115,850,017
|
—
|
—
|
1 |
Net ordinary
income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
The tax character of distributions paid during the
Funds’ last tax year ended October 31, 2019 was designated for purposes of the dividends paid deduction as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Distributions
from net ordinary income1 |
$23,543,456
|
$1,112,194
|
$25,173,480
|
Distributions
from net long-term capital gains |
78,600,703
|
9,028,087
|
51,926,594
|
1 |
Net
ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
As of October 31, 2019, the Funds’ last tax year end,
the following Funds had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
|
Mid
Cap Value |
Small
Cap Value |
Not
subject to expiration: |
|
|
Short-term
|
$4,728,314
|
$
79,696,445 |
Long-term
|
—
|
103,933,776
|
Total
|
$4,728,314
|
$183,630,221
|
7. Management Fees and
Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for
the overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components
– a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each
Fund’s 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 Net Assets |
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
For
the first $125 million |
0.5000%
|
0.6000%
|
0.6500%
|
For
the next $125 million |
0.4875
|
0.5875
|
0.6375
|
For
the next $250 million |
0.4750
|
0.5750
|
0.6250
|
For
the next $500 million |
0.4625
|
0.5625
|
0.6125
|
For
the next $1 billion |
0.4500
|
0.5500
|
0.6000
|
For
the next $3 billion |
0.4250
|
0.5250
|
0.5750
|
For
the next $2.5 billion |
0.4000
|
0.5000
|
0.5500
|
For
the next $2.5 billion |
0.3875
|
0.4875
|
0.5375
|
For
net assets over $10 billion |
0.3750
|
0.4750
|
0.5250
|
The annual complex-level fee,
payable monthly, for each Fund is determined by taking the complex-level free rate, which is based on the aggregate amount of “eligible assets” of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward
adjustment to that rate based upon the percentage of the particular fund’s assets that are not “eligible assets”. The complex-level fee schedule for each Fund is as follows:
Notes to Financial Statements (Unaudited) (continued)
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
|
*
The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen open-end and closed-end funds. Eligible assets do not include assets attributable to investments in other Nuveen funds or
assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do include certain
assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to certain types of
leverage. For these purposes, leverage includes the closed-end 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 eligible assets in certain circumstances. As of April 30, 2020, the complex-level fee rate for each Fund was as follows:
Fund
|
Complex-Level
Fee |
Dividend
Value |
0.1830%
|
Mid
Cap Value |
0.2000%
|
Small
Cap Value |
0.1640%
|
The Adviser has agreed to waive
fees and/or reimburse expenses (“Expense Cap”) of the following Funds so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees
incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table.
However, because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expense for the Class R6 Shares will be less than the expense limitation. The temporary expense limitations may be terminated or
modified prior to the expiration date only with the approval of the Board.
Fund
|
Expense
Cap |
Expense
Cap Expiration Date |
Mid
Cap Value |
0.92%
|
July
31, 2021 |
Small
Cap Value |
0.99
|
July
31, 2021 |
Distribution and Service
Fees
Each Fund has adopted a distribution and service
plan under rule 12b-1 under the 1940 Act. Class A Shares incur a 0.25% annual 12b-1 service fee. Class C Shares incur a 0.75% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class R3 Shares incur a 0.25% annual 12b-1 distribution
fee and a 0.25% annual 12b-1 service fee. Class R6 Shares and Class I Shares are not subject to 12b-1 distribution or service fees. The fees under this plan compensate Nuveen Securities, LLC, (the "Distributor"), a wholly-owned subsidiary of Nuveen,
for services provided and expenses incurred in distributing shares of the Funds and establishing and maintaining shareholder accounts.
Other Transactions with Affiliates
During February 2020, the Funds began receiving voluntary
compensation from the Adviser in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if the Adviser had purchased the research services directly. This income received by the Funds
is recognized as “Payment from affiliate” on the Statement of Operations.
During the current fiscal period, the Distributor, collected sales charges on
purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Sales
charges collected |
$44,460
|
$22,291
|
$43,377
|
Paid
to financial intermediaries |
39,521
|
19,567
|
38,156
|
The Distributor also received 12b-1
service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the current fiscal period, the Distributor compensated
financial intermediaries directly with commission advances at the time of purchase as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Commission
advances |
$11,785
|
$4,449
|
$16,906
|
To compensate for commissions
advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the current fiscal period, the Distributor retained such
12b-1 fees as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
12b-1
fees retained |
$6,267
|
$5,440
|
$15,141
|
The remaining 12b-1 fees charged to
each Fund were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share
redemptions during the current fiscal period, as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
CDSC
retained |
$387
|
$557
|
$2,491
|
8. Borrowing
Arrangements
Committed Line of Credit
The Funds, along with certain other funds managed by the
Adviser (“Participating Funds”), have established a 364-day, $2.65 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment
purposes. Each Participating Fund is allocated a designated proportion of the facility’s capacity (and its associated costs, as described below) based upon a multi-factor assessment of the likelihood and frequency of its need to draw on the
facility, the size of the Fund and its anticipated draws, and the potential importance of such draws to the operations and well-being of the Fund, relative to those of the other Funds. A Fund may effect draws on the facility in excess of its
designated capacity if and to the extent that other Participating Funds have undrawn capacity. The credit facility expires in June 2020 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per
annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. Participating Funds paid
administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the
relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, the Funds utilized the
facility. The Funds' maximum outstanding balance during the utilization period was as follows:
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Maximum
outstanding balance |
$8,300,000
|
$9,300,000
|
$21,700,000
|
During each Fund's utilization
period(s) during the current fiscal period, the average daily balance outstanding and average annual interest rate on the Borrowings were as follows:
Notes to Financial Statements (Unaudited) (continued)
|
Dividend
Value |
Mid
Cap Value |
Small
Cap Value |
Utilization
period (days outstanding) |
1
|
3
|
23
|
Average
daily balance outstanding |
$8,300,000
|
$9,300,000
|
$9,721,739
|
Average
annual interest rate |
2.67%
|
2.68%
|
1.95%
|
Borrowing outstanding as of the end
of the reporting period, if any, are recognized as "Borrowings" on the Statement of Assets and Liabilities, where applicable.
9. Subsequent Events
Expense Cap
During May 2020, the Board approved an extension of the Expense
Cap limitation for both Mid Cap Value and Small Cap Value to July 31, 2022.
Committed Line of Credit
During June 2020, the Participating Funds renewed the standby
credit facility through June 2021. In conjunction with this renewal the commitment amount decreased from $2.65 billion to $2.405 billion and the interest rate increased from LIBOR plus 1.00% to LIBOR plus 1.25%. The Participating Funds also incurred
a 0.10% upfront fee. All other terms remain unchanged.
Additional Fund Information
Investment Adviser
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Independent Registered
Public Accounting Firm
PricewaterhouseCoopers LLP
One North Wacker Drive
Chicago, IL 60606
Custodian
U.S. Bank National Association
1555 North RiverCenter Drive
Suite 302
Milwaukee, WI 53212
Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
Transfer Agent and
Shareholder Services
DST Asset Manager
Solutions, Inc. (DST)
P.O. Box 219140
Kansas City, MO 64121-9140
(800) 257-8787
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 as an exhibit to its report on Form N-PORT.
You may obtain this information on the SEC's website at http://www.sec.gov.
Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen
toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by
calling Nuveen toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
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.FINRA.org.
Glossary of Terms Used in this Report
Average
Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to
equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested distributions and capital gains, if any) over the time period being considered.
Lipper Equity Income Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Equity Income Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions
but do not reflect any applicable sales charges.
Lipper Mid-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions
but do not reflect any applicable sales charges.
Lipper Small-Cap Value Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Value Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of
distributions but do not reflect any applicable sales charges.
Market Capitalization: The
market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV
per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 1000® Value Index: An index that measures the performance of those Russell 1000® companies with lower price to- book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not
reflect any applicable sales charges or management fees.
Russell 2000® Value Index: An index that measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not
reflect any applicable sales charges or management fees.
Russell Midcap® Value Index: An index that measures the performance of the mid-cap value segment of the U.S. equity universe. It
includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management
fees.
Tax Equalization: The practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes.
Such amounts are referred to as the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
Liquidity Risk Management Program
Discussion
of the operation and effectiveness of the Funds’ liquidity risk management program
In compliance with Rule 22e-4 under the Investment Company Act
of 1940, as amended (the “Liquidity Rule”), each Fund covered in this Report (the “Funds”) has adopted and implemented a liquidity risk management program (the “Program”), which is designed to manage the
Fund’s liquidity risk. The Program consists of various protocols for assessing and managing each Fund’s liquidity risk. The Funds’ Board of Trustees previously designated Nuveen Fund Advisors, LLC, the Funds’ investment
adviser, as the Administrator of the Program. The adviser’s Liquidity Monitoring and Analysis Team (“LMAT”) carries out day-to-day Program management with oversight by the adviser’s Liquidity Oversight Sub-Committee (the
LOSC”). The LOSC is composed of personnel from the adviser and Teachers Advisors, LLC, an affiliate of the adviser.
At a May 20, 2020 meeting of the Board, the Administrator
provided the Board with a written report addressing the Program’s operation, adequacy and effectiveness of implementation for calendar year 2019 (the “Review Period”), as required under the Liquidity Rule. The report noted that the
Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to each Fund’s liquidity developments.
In accordance with the Program, the LMAT assesses each
Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash
equivalents, borrowing arrangements, and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four
liquidity categories (including the most liquid, “Highly Liquid”, and the least liquid, “Illiquid”, discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the
investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and
investment-specific considerations, as well as market depth, and use third-party vendor data.
Any Fund that does not primarily hold highly liquid
investments must, among other things, determine a minimum percentage of Fund assets that must be invested in highly liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, each Fund primarily held Highly
Liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.
The Liquidity Rule also limits a Fund’s investments in
Illiquid investments. Specifically, the Liquidity Rule prohibits a Fund from acquiring Illiquid investments if doing so would result in the Fund holding more than 15% of its net assets in Illiquid investments, and requires certain reporting to the
Fund Board and the Securities and Exchange Commission any time a Fund’s holdings of Illiquid investments exceeds 15% of net assets. During the Review Period, no Fund exceeded the 15% limit on Illiquid investments.
Nuveen:
Serving Investors for Generations
Since 1898, financial professionals 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 professional, 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/mutual-funds
Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive |
Chicago, IL 60606 | www.nuveen.com MSA-FSTK-0420P1210960-INV-B-06/21
Nuveen Equity Funds
Fund
Name |
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Nuveen
Mid Cap Growth Opportunities Fund |
FRSLX
|
FMECX
|
FMEYX
|
FMEFX
|
FISGX
|
Nuveen
Small Cap Growth Opportunities Fund |
FRMPX
|
FMPCX
|
FMPYX
|
FMPFX
|
FIMPX
|
Beginning on January 1, 2021, as permitted by regulations
adopted by the Securities and Exchange Commission, paper copies of the Funds' annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made
available on the Funds' website (www.nuveen.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports
electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting the financial intermediary (such as a
broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.
You may elect to receive all future shareholder reports in
paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, by calling 800-257-8787 and selecting option #1. Your election to receive reports in paper will apply to all funds held in your account with
your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment companies.
Life is Complex.
Nuveen makes things e-simple.
It only takes a minute to sign up for
e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you
wish.
Free e-Reports right to your
e-mail!
www.investordelivery.com
If you receive your Nuveen Fund
distributions and statements from your financial professional or brokerage account.
or
www.nuveen.com/client-access
If you receive your Nuveen Fund
distributions and statements directly from Nuveen.
Must be preceded by or accompanied by a
prospectus.
NOT FDIC INSURED MAY
LOSE VALUE NO BANK GUARANTEE
Chair’s Letter to Shareholders
Dear Shareholders,
The COVID-19 crisis is taking an unprecedented toll on our
health, societies, economies and financial markets. Our thoughts are with all whose lives have been affected by the disease and its economic fallout. With some regions of the world having appeared to “flatten the curve” of infections,
governments and public health officials are now facing the extraordinary challenge of balancing the resumption of economic activity with public safety, in a way that minimizes the potential for a second wave of outbreaks. Markets have turned their
focus to the potential for an economic recovery the timing and magnitude of which remain highly uncertain. Elevated market volatility is likely to continue, with economic data, coronavirus infection rates and the upcoming U.S. presidential election
under scrutiny.
While we do not want to understate the
dampening effect on the global economy, it is important to differentiate short term interruptions from the longer-lasting implications to the economy. Some areas of the global economy were already on the mend prior to the coronavirus epidemic.
Temporary bans on movement and travel are being lifted, and some near-term economic indicators have shown modest improvement in countries that have reopened. Central banks and governments around the world have announced economic stimulus measures
and pledged to continue doing what it takes to support their economies. In the U.S., the Federal Reserve has cut its benchmark interest rate to near zero and introduced programs that helped revive the U.S. economy after the 2008 financial crisis.
The U.S. Government has approved three relief packages, including a $2 trillion-dollar package directly supporting businesses and individuals. The Coronavirus Aid, Relief and Economic Security Act, called the CARES Act, provides direct payments and
expanded unemployment benefits to individuals, loans and grants to small businesses, loans and other money to large corporations and funding for hospitals, public health, education and state and local governments.
In the meantime, patience and a long-term perspective are key
for investors. When market fluctuations are the leading headlines day after day, it’s tempting to “do something.” However, your long-term goals can’t be met with short-term thinking. We encourage you to talk to your financial
professional, who can review your time horizon, risk tolerance and investment goals. 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
Chair of the Board
June 23, 2020
Portfolio Managers’
Comments
Nuveen Mid Cap Growth
Opportunities Fund
Nuveen Small Cap Growth Opportunities
Fund
These Funds feature portfolio management by Nuveen
Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Fund’s investment adviser.
Throughout the reporting period, Gregory Ryan, CFA, was
portfolio manager of the Nuveen Mid Cap Growth Opportunities Fund. He assumed portfolio management responsibilities in 2019. Effective February 28, 2020, Bihag Patel, CFA, was added as a portfolio manager.
Jon Loth, CFA, has been a portfolio manager for the Nuveen
Small Cap Growth Opportunities Fund since 2007.
On the
following pages, the portfolio management teams for the Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended April 30, 2020.
An Update on COVID-19 Coronavirus and its Impact on the
Securities Markets
With daily new COVID-19 coronavirus
cases now slowing across much of the world, economies are beginning to reopen and movement bans are easing. The focus is shifting to whether the resumption of activity triggers a second wave of infections and how quickly economies may rebound. Early
indications, first from China, South Korea and Hong Kong, and more recently from various U.S. states that opened their economies earlier and more thoroughly than others, showed there is a risk of new infection outbreaks. Economic indicators have
begun to reflect the severe supply and demand disruptions resulting from the shutdowns, and a more prolonged recovery looks more likely than a rapid snap-back to growth.
Although the detection of the virus in China was made public
in December 2019, markets did not start to fully acknowledge the risks and potential economic impact until the latter portion of February 2020, when outbreaks outside of China were first reported. Global stock markets sold off severely, with the
S&P 500® index reaching a bear market (a 20% drop from the previous high) within three weeks, the fastest bear market decline in history. Even
certain parts of the bond market suffered; below investment grade municipal and corporate bonds generally dropped the furthest, mostly out of concerns for the continued financial stability of lower quality issuers. Demand for safe-haven assets,
along with mounting recession fears, drove the yield on the 10-year U.S. Treasury note to 0.5% in March 2020, an all-time low. Additionally, oil prices collapsed to an 18-year low on supply glut concerns, as shutdowns across the global economy
sharply reduced oil demand, although oil prices have recovered to well above those lows..
Central banks and governments have responded with liquidity
injections to ease the strain on financial systems and stimulus measures to buffer the shock to businesses and consumers. These measures have helped stabilize the markets over the short term, and most markets have recovered most of their losses. But
volatility will likely remain elevated until the health crisis itself is under control (via fewer new cases, lower infection rates and/or verified treatments or vaccines). There are still many unknowns and new information is incoming daily,
compounding the difficulty of modeling outcomes for epidemiologists and economists alike.
Nuveen, LLC and our portfolio management teams are monitoring
the situation carefully and continuously refining our views and approaches to managing the Funds to best pursue investment objectives while mitigating risks through all market environments.
This material is not intended to be a recommendation or investment advice,
does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular
investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
Certain statements in this report are forward-looking
statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of
the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other
factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Refer to the Glossary of Terms Used in this Report for further
definition of the terms used within this section.
Portfolio Managers’ Comments (continued)
Nuveen Mid Cap Growth Opportunities
How did the Fund perform during the six-month reporting period
ended April 30, 2020?
The tables in the Fund Performance
and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended April 30, 2020. Comparative performance information is provided for the Fund’s Class A Shares at net
asset value (NAV). The Fund’s Class A Shares at NAV outperformed both the Russell Midcap® Growth Index and the Lipper Mid-Cap Growth Funds
Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the
reporting period and how did these strategies influence performance?
The Fund pursues a long-term capital appreciation strategy by
investing primarily in the common stocks of companies with market capitalizations at the time of purchase between approximately $1 billion and $38 billion, which is based on the June 28, 2019 annual reconstitution of the Russell Midcap® Index. We continue to focus on building a well-diversified portfolio of high quality, mid-cap growth companies. We target companies with sound
business models, strong competitive advantages, and where our expectations for earnings growth exceed consensus expectations. For each holding, we develop a proprietary growth thesis. We revisit the thesis on a quarterly basis to ensure that both
our short-term and long-term catalysts remain intact. When the growth thesis is validated, we hold or buy more; however, when our growth thesis is not validated, we sell the holding. Although we made individual position changes during the reporting
period, our underlying investment strategy remained consistent.
The Fund benefited from strong stock selection in two of its
primary growth sectors, information technology and health care, leading to its outperformance versus the Russell Midcap® Index and Lipper peer group
during this challenging reporting period. In technology, we continued to overweight the sector with an emphasis on companies with recurring revenue models and strong balance sheets. This positioning proved particularly beneficial in the software and
IT services industries and helped drive outperformance in the sector during the reporting period, particularly in software.
The Fund experienced outperformance from several holdings that
are considered beneficiaries of the COVID-19 crisis. The first, Everbridge Inc., provides communications and enterprise software applications to help organizations and governments respond to critical events. Earlier in the reporting period, the
company reported revenue and billings that exceeded investor expectations as well as large contract wins with California and Puerto Rico. Later in the reporting period, the company benefited from the launch of its COVID-19 Shield Software, which is
designed to help customers navigate the safety, supply and cost aspects of dealing with the crisis. We also saw strong performance from Inphi Corp, a manufacturer of optical and networking connectivity chips. The company benefited from rising
datacenter spending that is being further driven by increased work-from-home requirements and discussions regarding renewed focus on cloud and networking investment. In addition, the Fund experienced strength from Okta Inc., the leading cloud-based
provider of identity management solutions. Throughout the COVID-19 crisis, Okta has demonstrated the resilience of its business model. The company reiterated revenue guidance, which was driven by a strong subscription model that benefits from the
ratability of recognized contracts. We continued to own Everbridge, Inphi and Okta in the Fund’s portfolio.
Elsewhere in the technology sector, the Fund saw favorable
results from Trade Desk Inc., a leading technology platform for digital ad buyers. The company is a play on the transition to programmatic advertising through channels like connected TV and audio. Trade Desk continued to experience strong growth as
it saw momentum across mobile, connected TV and audio channels. In the near term, however, the company is being negatively impacted by reduced advertising spending due to COVID-19. Longer term, we believe Trade Desk is well positioned to take
advantage of the continued migration to programmatic advertising and maintained the Fund’s holding.
A position in Monolithic Power Systems Inc. also aided the
Fund’s results. This mixed signal semiconductor firm focuses on high performance power management for computing, consumer and communications markets. The company has continued its track record of strong execution as ongoing design wins
provided a tailwind to both top line growth and margin expansion. The Fund continues to hold its position in Monolithic.
In addition, Cadence Design Systems Inc. provided strong
results during the reporting period. The company provides electronic design automation (EDA) software and tools, which are used to design semiconductor chips and electronics systems. Despite the negative impact from the COVID-19 crisis, Cadence
Design has proven that its business model is very resilient, reporting impressive results during this uncertain timeframe. The company has a diversified customer base and healthy backlog that is tied to secular growth markets within technology
including artificial intelligence (AI), cloud and 5G. It remained a holding in the Fund’s portfolio.
Finally, in the communications and equipment area of
technology, the Fund benefited from a position in Lumentum Holdings Inc., a leading supplier of optical and photonic components for telecommunications, data communications and industrial applications. The company reported strong results as 3D
sensing revenue came in well above expectations. Lumentum also benefited from synergies gained from its recent Oclaro acquisition, which also helped to drive operating margins to 27%, nearly 4% above expectations. In addition, the company provided
positive commentary for 2020 driven by 3D sensing, Metro Core and 5G applications. We maintained the Fund’s position.
Although technology was a source of significant strength, the
sector was home to one detractor worth noting, Verra Mobility Corp. The company operates a commercial segment that provides automated tolling capability to rental car companies, and a government segment that delivers traffic law enforcement products
and services to local governments. Shares underperformed due to the negative impact from the COVID-19 crisis on the rental car industry as revenue is projected to be down more than 60% over the next quarter. Given the lack of visibility into when
car rental demand will begin to improve, we exited the Fund’s position in Verra Mobility.
During this volatile period, the health care sector was the
standout performer in the index and our portfolio holdings outpaced the sector. The majority of the outperformance occurred prior to the COVID-19 induced sell-off. Although health care was not immune from losses during the sell-off, the defensive
nature of the sector helped the group hold up better than the market. The Fund benefited from an overweight in biopharma with a focus on commercial stage companies in orphan indications where treatments continued to be essential during the pandemic.
Results were also aided by limited exposure to companies focused on deferrable health care procedures.
A position in DexCom Inc. was the Fund’s top performer
during the reporting period. The company sells a continuous glucose monitor to help Type 1 and Type 2 diabetic patients manage their diabetes with real-time glucose readings rather than periodic finger sticks. Shares advanced sharply due to strong
earnings reported and a continued delay in the FDA’s approval of Libre 2, a competitive product created by Abbott Laboratories. For the third quarter 2019, DexCom reported earnings that significantly beat expectations. The Fund continued to
hold DexCom.
Long-term holding Teladoc Health Inc., the
nation’s dominant provider of virtual medicine technology, was also a significant outperformer. Telemedicine has seen a boost in utilization during the stay-at-home guidelines, although the popularity of the industry has been on the rise for
several years. We believe this crisis will permanently change how care is delivered, benefiting telemedicine. Therefore, we have maintained the Fund’s position.
We also saw strong results from another long-term holding,
Centene Corp, a managed care insurer focused on government-sponsored programs including Medicaid, Affordable Care Act (ACA) exchanges and Medicare Advantage. The company benefited from the decline of the prospect of Medicare for All. Also, the
COVID-19 crisis may likely increase Medicaid enrollment due to higher unemployment. We continued to own Centene in the portfolio.
Although the financial sector underperformed the overall
market in the index, our portfolio’s lack of bank exposure helped it to outperform on a relative basis. The Fund also benefited from a position in MSCI Inc., the provider of investment decision support tools for asset managers, banks,
corporations, hedge funds and pension funds. The company’s products include benchmarking, portfolio risk management and index-linked product creation. MSCI is benefiting from a growing secular trend toward new product introductions linked to
environmental, social and governance (ESG), international and alternative strategies. We maintained the Fund’s position in MSCI at the end of the reporting period.
Portfolio Managers’ Comments (continued)
The Fund’s primary detractors were found in the energy
and consumer discretionary sectors. The oil industry was hammered as demand dropped precipitously due to the shutdowns related to the pandemic, while a price war erupted between Russia and Saudi Arabia that added to an already existing supply glut.
The price of West Texas Intermediate (WTI) crude fell to an 18-year low of around $20 per barrel. We believed the domestic energy market would have a lasting negative impact from the dramatic supply/demand imbalance. As a result, we reduced the
Fund’s energy exposure by selling shares of one of the Fund’s weaker performers, Permian basin shale drilling company Parsley Energy Inc.
The consumer discretionary sector was also a detractor for the
Fund. Our more highly levered travel and leisure related holdings were negatively impacted due to temporary closures of resorts and casinos, which caused concern over potential bankruptcies within the group. In addition, as retail stores were forced
to close due to shelter-in-place guidelines, several names sold off dramatically because of concerns over loss of revenue and earnings impacts. In the specialty retail area, lease-to-own company Aaron’s Inc. reported fourth-quarter 2019
results that included lower-than-expected guidance stemming from lease portfolio characteristics, incremental investments and weakness in the consumer electronics category. The stock underperformed due to concerns about its leverage and potential
credit issues driven by layoffs impacting customers’ ability to pay for items purchased. We also experienced underperformance from Five Below Inc., a fast-growing specialty retailer focused on discretionary merchandise priced at $5 or less.
The company reported fourth-quarter 2019 comparable store sales and earnings per share that were in line with expectations. However, the focus during the reporting period was on COVID-19 and the impact it would have on Five Below given that all its
stores would be temporarily closed. Because the concept is driven by discretionary merchandise and relies on foot traffic, the stock was severely punished. We decided to exit both Aaron’s and Five Below due to the lack of visibility regarding
the duration of the COVID-19 crisis and closures, and the resulting impact on these companies’ revenue and earnings.
The communication services sector also weighed on relative
performance, particularly Nexstar Media Group Inc., a large, pure-play television broadcaster. The company was caught up in concerns over COVID-19 and the impact it would have on advertising and on companies with leverage, despite Nexstar’s
strong fundamental profile and its ability to drive free cash flow. While discretionary spending will be deferred in 2020 and the Olympics will be delayed until 2021, we continue to believe the company will benefit from the upcoming election cycle
and a return to normal advertising spend as the economy recovers. Therefore, we maintained the Fund’s position.
Several holdings underperformed in the industrials sector.
Owens Corning, is a leading producer of glass fiber insulation, roofing shingles, processed asphalt and glass fiber composite materials, underperformed due to the potential negative impact on its business from the COVID-19 crisis. Fears about
project delays and slowing housing starts drove Owens Corning shares down sharply in March 2020. Although the stock has since rebounded, concerns remain about the timing of project demand. We have maintained our position. We also saw weakness from
TransDigm Group Inc., a leading producer of engineered aircraft components that are sold into the aerospace and defense industries. Some of the company’s products include ignition systems, pumps, valves, motors and actuators. TransDigm
maintains a balanced mix between the original equipment manufacturing (OEM) market and aftermarkets. However, given the significant decline in air travel due to the impact from COVID-19, the company is facing significant revenue headwinds. Because
of the uncertainty surrounding when air travel will return to normal levels, we exited our position shortly after the end of the reporting period.
The financial sector was also home to one laggard of note,
OneMain Holdings Inc., a consumer finance company that specializes in loans to non-prime customers. After performing well earlier in the reporting period, the company’s shares quickly turned negative due to fear of higher net charge-offs and
concerns over liquidity. We continued to hold and added to OneMain because the company has two to three years of liquidity.
The materials sector underperformed during the reporting
period and our portfolio holdings fell short of the sector in the benchmark. The Fund’s primary detractor was CF Industries Holdings Inc., one of the world’s largest global nitrogen fertilizer producers. The company was negatively
impacted by concerns about its leverage and falling demand after restaurants across the country were forced to close, resulting in lower corn prices during the reporting period. Due to the uncertain timing regarding the end of the COVID-19 crisis
and its impact on the restaurant industry, we decided to sell our position in CF Industries toward the end of the reporting period.
Nuveen Small Cap Growth Opportunities Fund
How did the Fund perform during the six-month reporting period
ended April 30, 2020?
The tables in the Fund Performance
and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended April 30, 2020. Comparative performance information is provided for the Fund’s Class A Shares at net
asset value (NAV). The Fund’s Class A Shares at NAV outperformed both the Russell 2000® Growth Index and the Lipper Small-Cap Growth Funds
Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting
period and how did these strategies influence performance?
The Fund pursues a long-term capital growth strategy by
investing primarily in equity securities of smaller-sized companies with market capitalizations within the market capitalization range of approximately $40 million to $10.3 billion at the time of purchase, which is based on the most recent annual
reconstitution of the Russell 2000® Index that occurred on June 28, 2019. The investment process employed in the management of the Fund seeks to
exploit secular growth trends that we believe will provide an investment tailwind to above average growth that should transcend the business cycle over the longer term. Importantly, our process also emphasizes a valuation discipline designed to find
attractive investment opportunities that should benefit from multiple expansion when particular investment catalysts become evident in the marketplace. The Fund’s portfolio typically features investments in high quality companies with
attractive or improving margin profiles, generally healthy balance sheets and prospects for above-average revenue and earnings growth.
The Fund’s modest cyclical tilt heading into the March
2020 market correction, coupled with its relative underweight in critical factors such as leverage, volatility and smaller capitalization size were all contributing elements in its outperformance versus the Russell 2000® Growth Index and Lipper peer group during this challenging period. Additionally, the Fund benefited from strong stock selection in the majority of its
primary growth sectors, including health care, information technology and industrials.
The Fund’s health care holdings were led by several
names seen as key small-cap beneficiaries of the COVID-19 crisis. These included Quidel Corp, a leading manufacturer of diagnostic and influenza tests required to monitor the rapidly evolving situation, and home health nursing companies such as
Amedisys Inc., that will be a critical player in caring for vulnerable patient populations outside of the hospital. The Fund continued to own both positions.
We also saw strength from several pharmaceutical firms,
including Horizon Therapeutics Plc, which focuses on treatments for orphan diseases (a condition that affects fewer than 200,000 people). Horizon has several drugs on the market that generate more than $1.2 billion in revenue. During the reporting
period, shares advanced strongly after the company reported third-quarter 2019 earnings that beat expectations and an FDA panel recommended the approval of teprotumumab in December 2019. Also, we initiated a position in biotechnology concern Momenta
Pharmaceuticals Inc., an emerging developer of therapeutics for immune-regulated conditions that subsequently performed well. Shares surged following promising early-stage data for a drug designed to treat an autoimmune condition called immune
thrombocytopenic purpura, a disease that attacks platelet cells. We maintained both positions.
In the medical technology group, shares of AtriCure Inc. were
particularly strong. At a major investor conference, management signaled that data for a promising new atrial fibrillation technology would be presented at a key upcoming medical meeting. Also in med tech, shares of iRhythm Technologies Inc. rose
strongly after the manufacturer of wearable cardiology-focused biosensor technology delivered robust fourth-quarter revenue growth exceeding 40%. This demonstrated the company’s ability to leverage its sales capabilities deeper into health
networks. Management also suggested optimism regarding a pending reimbursement update. We continued to hold both AtriCure and iRhythm in the portfolio.
The information technology sector had a number of standouts,
driven largely by the Fund’s overweight positioning in companies with recurring revenue models in the software and IT services industries. Shares of Everbridge Inc., a company that provides critical communications and enterprise software
applications to help organizations and governments respond to critical events, rose strongly. Earlier in the reporting period, the company reported revenue and billings that exceeded investor expectations as well as large contract wins
Portfolio Managers’ Comments (continued)
with California and Puerto Rico. Later in the reporting period, the company
benefited from the launch of its COVID-19 Shield Software to help customers navigate the safety, supply and cost aspects of dealing with the crisis. We continued to own Everbridge in the Fund’s portfolio but modestly reduced our position given
the valuation. However, we continue to believe the company’s critical events communications technology will be vital in the coming year.
We also added a position in Inphi Corp, a manufacturer of
optical and networking connectivity chips, during the reporting period and it subsequently performed well. The company has benefited from rising datacenter spending that is increasing more in the current environment given increased remote
work-from-home requirements and the discussion of renewed focus on cloud and networking investment. The company remained one of the Fund’s largest positions at end of the reporting period.
Although cyclical shares were battered during the March 2020
market correction, the Fund’s industrial holdings contributed to relative performance. In the aerospace and defense group, shares of Mercury Systems Inc. held up well. The company, a supplier of sensor and mission processing subsystems,
continued to benefit from defense prime contractors outsourcing key electronics products for military platforms as evidenced by strong order rates and a rising backlog. Mercury Systems also remained a significant holding for the Fund.
In the financial services sector, rising concerns over
anticipated credit losses made for a challenging environment in the banking space, an underweighted group for the Fund. Conversely, its growth-oriented holdings in the insurance sector, such as eHealth Inc., fared well by comparison. The company is
a private health insurance exchange that enables choice in the Medicare Advantage market. Partway through Medicare’s annual enrollment, insurance broker data suggested that the company would dramatically exceed its +40% consensus revenue
target and expand its meager 1.5% market share, suggesting considerable growth potential. We continued to maintain the Fund’s position in eHealth.
The Fund’s primary detractors were found in the
materials and communication services sectors. In materials, Ingevity Corporation, a provider of specialty chemicals, high performance carbon materials and emissions related products, underperformed during the reporting period. The company has
substantial exposure to the automotive industry, which experienced steep production cuts. Therefore, we exited the position in favor of better situated materials names. Also in the sector, Louisiana-Pacific Corporation entered 2020 in a position to
benefit from healthy demand and better pricing for oriented strand board on the back of a firm housing market. However, builders stepped back to assess the housing market, causing a rollover in volumes and pricing. We have maintained our position in
light of Louisiana-Pacific’s solid balance sheet and the potential for a robust earnings recovery, but are watching the situation closely.
The communication services sector also weighed on relative
performance, particularly Nexstar Media Group Inc., a large, pure-play television broadcaster. The company was caught up in concerns over COVID-19 and the impact it would have on advertising and on companies with leverage, despite Nexstar’s
strong fundamental profile and its ability to drive free cash flow. While discretionary spending will be deferred in 2020 and the Olympics will be delayed until 2021, we continue to believe the company will benefit from the upcoming election cycle
and a return to normal advertising spend as the economy recovers. Therefore, we maintained the Fund’s position.
As the economy shut down across the country, several of the
Fund’s consumer discretionary holdings also underperformed, particularly those with higher leverage profiles and where investors perceived that recovery would be protracted. In the specialty retail category, we saw weak results from
Aaron’s Inc., a leading provider in the lease-to-own category. The company reported disappointing guidance, partly as a result of higher write-offs, its smaller portfolio size and weakness in consumer electronics. We did not believe these
factors would improve in the coming year, which caused us to sell the stock and seek out better alternatives for the portfolio. The Fund also experienced poor results from a position in Boot Barn Holdings Inc., a specialty retailer focused on
western-themed footwear and fashion. The company pre-announced fourth-quarter 2019 earnings and provided guidance that missed investor expectations. Shares were further negatively impacted by falling oil prices and store closures later in the
reporting period. However, we believe Boot Barn remains an attractive name given its strong category presence that is driving healthy online sales growth.
Also in consumer discretionary sector, several holdings that
we added late in 2019 underperformed, including Penn National Gaming Inc. and Funko Inc. Earlier in the reporting period, Penn National benefited from strong state-level gaming trends and the closure of its investment in Barstool Sports. However,
shares fell after the company announced broad-based casino closures giving rise to liquidity concerns, which led us to sell the Fund’s position. We established a position in Funko, a marketer of consumer products fo-
cused on a wide array of pop culture, because we believed it would benefit
from a strong media slate in 2020. However, shares declined significantly after the company announced a fourth-quarter 2019 shortfall driven by poor retail performance and reorder shortfalls by a major customer, which led us to sell the
position.
On the other hand, the consumer discretionary
sector was home to several strong relative performers in the restaurant category including Wingstop Inc. and Papa John’s International Inc. Both quick-service restaurants benefited from their strong digital ordering platforms and capability
for take-out orders after other restaurants were closed due to the shelter-at-home initiatives. We maintained the Fund’s exposure to Wingstop, but sold Papa John’s after its strong advance.
Finally, despite the overall strength in industrials, the
sector also had several notable detractors including Chart Industries Inc., a manufacturer of equipment serving the industrial gas and liquefied natural gas (LNG) markets. The company’s shares suffered as falling oil and natural gas prices
called into question prospects for new, large-scale LNG projects. We exited the Fund’s position based on the belief that recovery in the energy markets will be protracted until global demand recovers. We also saw weak results from MasTec Inc.,
a leading engineering contractor focused on communications and energy-related projects. We added exposure early in the reporting period because we believed the company would benefit from the build out of 5G wireless capacity, an energy sector
recovery and any government infrastructure stimulus. However, shares lagged due to concerns about oil demand weakness that drove a substantial reduction in production activity for North American producers. We continued to hold MasTec based on the
favorable outlook for 5G wireless build out, a gradual recovery among drillers and processors and a very favorable risk/reward profile, particularly when considering the company’s strong free cash flow generation.
Nuveen Mid
Cap Growth Opportunities Fund
Mutual fund investing
involves risk; principal loss is possible. There is no guarantee that the Fund’s investment objectives will be achieved. Prices of equity securities may decline significantly over short or extended
periods of time. Investments in mid-cap companies are subject to greater volatility than those of larger companies, but may be less volatile than investments in smaller companies. These and other risk
considerations, such as derivatives, investment focus (growth style), and non-U.S./emerging markets risks, are described in detail in the Fund’s prospectus.
Nuveen Small Cap Growth Opportunities Fund
Mutual fund investing involves risk; principal loss is
possible. There is no guarantee that the Fund’s investment objectives will be achieved. Prices of equity securities may decline significantly over short or extended periods of time. Investments in smaller companies are subject to greater volatility than those of larger companies. These and other risk considerations, such as derivatives, investment focus (growth style), and non-U.S./emerging markets risks, are
described in detail in the Fund’s prospectus.
Fund Performance and Expense Ratios
The Fund
Performance and Expense Ratios for each Fund are shown within this section of the report.
Fund Performance
Returns quoted represent past performance, which is no guarantee
of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the
performance shown.
Total returns for a period of
less than one year are not annualized (i.e. cumulative returns). Since inception returns are shown for share classes that have less than 10-years of performance. Returns at net asset value (NAV) would be lower if the sales charge were included.
Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund Shares.
Returns may reflect fee waivers and/or expense reimbursements
by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with
Affiliates for more information.
Returns reflect
differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided
for Class A Shares at NAV only.
Expense Ratios
The expense ratios shown are as of the Fund's most recent
prospectus. The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any). The expense ratios include management fees and other fees and expenses.
Fund Performance and Expense Ratios (continued)
Nuveen Mid Cap Growth Opportunities Fund
Refer
to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this
section.
Fund Performance and Expense Ratios
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
10-Year
|
|
Gross
|
Net
|
Class
A Shares at NAV |
1/09/95
|
1.64%
|
|
0.92%
|
6.61%
|
10.78%
|
|
1.24%
|
1.17%
|
Class
A Shares at maximum Offering Price |
1/09/95
|
(4.19)%
|
|
(4.89)%
|
5.36%
|
10.13%
|
|
—
|
—
|
Russell
Midcap® Growth Index |
—
|
(1.78)%
|
|
0.23%
|
8.88%
|
12.19%
|
|
—
|
—
|
Lipper
Mid-Cap Growth Funds Classification Average |
—
|
(1.07)%
|
|
(0.20)%
|
8.45%
|
11.15%
|
|
—
|
—
|
Class
C Shares |
9/24/01
|
1.28%
|
|
0.20%
|
5.82%
|
9.96%
|
|
2.00%
|
1.92%
|
Class
R3 Shares |
12/11/00
|
1.53%
|
|
0.70%
|
6.35%
|
10.51%
|
|
1.50%
|
1.42%
|
Class
I Shares |
12/28/89
|
1.76%
|
|
1.19%
|
6.88%
|
11.06%
|
|
1.00%
|
0.92%
|
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
Since
Inception |
|
Gross
|
Net
|
Class
R6 Shares |
2/28/13
|
1.84%
|
|
1.32%
|
7.03%
|
10.62%
|
|
0.86%
|
0.79%
|
*
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Shares purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales
charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten
years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus.
Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
**
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse expenses through July 31, 2021, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expense,
taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.92% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares
are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. The expense limitation may be terminated or modified prior to that date only with the
approval of the Board of Directors of the Fund.
Nuveen Small Cap Growth Opportunities Fund
Refer
to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this
section.
Fund Performance and Expense Ratios
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
10-Year
|
|
Gross
|
Net
|
Class
A Shares at NAV |
8/01/95
|
1.00%
|
|
(0.38)%
|
6.87%
|
9.67%
|
|
1.40%
|
1.24%
|
Class
A Shares at maximum Offering Price |
8/01/95
|
(4.81)%
|
|
(6.12)%
|
5.61%
|
9.03%
|
|
—
|
—
|
Russel
2000® Growth Index |
—
|
(7.62)%
|
|
(9.22)%
|
5.19%
|
9.96%
|
|
—
|
—
|
Lipper
Small-Cap Growth Funds Classification Average |
—
|
(5.31)%
|
|
(7.20)%
|
6.62%
|
10.22%
|
|
—
|
—
|
Class
C Shares |
9/24/01
|
(0.60)%
|
|
(1.11)%
|
6.07%
|
8.86%
|
|
2.15%
|
1.99%
|
Class
R3 Shares |
12/11/00
|
0.87%
|
|
(0.61)%
|
6.60%
|
9.40%
|
|
1.65%
|
1.49%
|
Class
I Shares |
8/01/95
|
1.10%
|
|
(0.12)%
|
7.13%
|
9.95%
|
|
1.14%
|
0.99%
|
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
Since
Inception |
|
Gross
|
Net
|
Class
R6 Shares |
6/30/16
|
1.21%
|
|
0.27%
|
12.11%
|
|
1.02%
|
0.86%
|
*
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Shares purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales
charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten
years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus.
Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
**
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse expenses through July 31, 2021, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expense,
taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.99% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares
are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. The expense limitation may be terminated or modified prior to that date only with the
approval of the Board of Directors of the Fund.
Holding Summaries as of April 30, 2020
This data relates to the securities held in each Fund's
portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Nuveen Mid Cap Growth Opportunities Fund
Fund
Allocation (% of net assets) |
|
Common
Stocks |
99.1%
|
Investments
Purchased with Collateral from Securities Lending |
1.9%
|
Money
Market Funds |
1.2%
|
Other
Assets Less Liabilities |
(2.2)%
|
Net
Assets |
100%
|
Portfolio
Composition (% of net assets) |
|
Software
|
16.2%
|
IT
Services |
8.9%
|
Health
Care Equipment & Supplies |
6.7%
|
Hotels,
Restaurants & Leisure |
6.4%
|
Biotechnology
|
6.0%
|
Semiconductors
& Semiconductor Equipment |
5.3%
|
Specialty
Retail |
4.8%
|
Building
Products |
3.9%
|
Capital
Markets |
3.5%
|
Electronic
Equipment, Instruments & Components |
3.4%
|
Aerospace
& Defense |
3.0%
|
Equity
Real Estate Investment Trust |
3.0%
|
Health
Care Providers & Services |
2.7%
|
Multiline
Retail |
2.3%
|
Textiles,
Apparel & Luxury Goods |
2.0%
|
Communications
Equipment |
1.8%
|
Other
|
19.2%
|
Investments
Purchased with Collateral from Securities Lending |
1.9%
|
Money
Market Funds |
1.2%
|
Other
Assets Less Liabilities |
(2.2)%
|
Net
Assets |
100%
|
Top
Five Common Stock Holdings (% of net assets) |
|
Centene
Corp |
2.7%
|
MSCI
Inc |
2.5%
|
Chipotle
Mexican Grill Inc |
2.5%
|
Dollar
General Corp |
2.3%
|
O'Reilly
Automotive Inc |
2.1%
|
Nuveen Small Cap Growth Opportunities Fund
Fund
Allocation (% of net assets) |
|
Common
Stocks |
97.3%
|
Exchange-Traded
Funds |
2.6%
|
Investments
Purchased with Collateral from Securities Lending |
2.1%
|
Other
Assets Less Liabilities |
(2.0)%
|
Net
Assets |
100%
|
Portfolio
Composition (% of net assets) |
|
Software
|
10.8%
|
Biotechnology
|
8.5%
|
Health
Care Equipment & Supplies |
7.5%
|
Semiconductors
& Semiconductor Equipment |
5.2%
|
Hotels,
Restaurants & Leisure |
5.0%
|
Equity
Real Estate Investment Trust |
4.3%
|
Building
Products |
3.7%
|
Pharmaceuticals
|
3.5%
|
Machinery
|
3.5%
|
Aerospace
& Defense |
3.5%
|
Insurance
|
3.1%
|
Food
Products |
2.8%
|
Diversified
Financial Services |
2.6%
|
Health
Care Technology |
2.6%
|
Household
Durables |
2.6%
|
IT
Services |
2.5%
|
Health
Care Providers & Services |
2.4%
|
Commercial
Services & Supplies |
2.2%
|
Life
Sciences Tools & Services |
2.2%
|
Textiles,
Apparel & Luxury Goods |
2.1%
|
Other
|
19.3%
|
Investments
Purchased with Collateral from Securities Lending |
2.1%
|
Other
Assets Less Liabilities |
(2.0)%
|
Net
Assets |
100%
|
Top
Five Common Stock Holdings (% of net assets) |
|
Mercury
Systems Inc |
2.3%
|
Inphi
Corp |
2.0%
|
Horizon
Therapeutics Plc |
2.0%
|
Lattice
Semiconductor Corp |
1.7%
|
MAXIMUS
Inc |
1.7%
|
As a
shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution
and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in
other mutual funds.
The Examples below are based on an
investment of $1,000 invested at the beginning of the period and held through the period ended April 30, 2020.
The beginning of the period is November 1, 2019.
The information under “Actual Performance,”
together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by
the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,”
provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The
hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do
so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the following tables
are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different
funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Mid Cap Growth Opportunities Fund
|
Share
Class |
|
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Actual
Performance |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,016.42
|
$1,012.79
|
$1,015.29
|
$1,018.39
|
$1,017.63
|
Expenses
Incurred During the Period |
$
5.87 |
$
9.61 |
$
7.12 |
$
3.96 |
$
4.62 |
Hypothetical
Performance (5% annualized return before expenses) |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,019.05
|
$1,015.32
|
$1,017.80
|
$1,020.93
|
$1,020.29
|
Expenses
Incurred During the Period |
$
5.87 |
$
9.62 |
$
7.12 |
$
3.97 |
$
4.62 |
For each class of the Fund, expenses are equal to the
Fund’s annualized net expense ratio of 1.17%, 1.92%, 1.42%, 0.79% and 0.92% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year
period).
Nuveen Small Cap Growth Opportunities Fund
|
Share
Class |
|
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Actual
Performance |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,010.02
|
$1,006.00
|
$1,008.74
|
$1,012.07
|
$1,010.98
|
Expenses
Incurred During the Period |
$
6.10 |
$
9.83 |
$
7.34 |
$
4.00 |
$
4.85 |
Hypothetical
Performance (5% annualized return before expenses) |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,018.80
|
$1,015.07
|
$1,017.55
|
$1,020.89
|
$1,020.04
|
Expenses
Incurred During the Period |
$
6.12 |
$
9.87 |
$
7.37 |
$
4.02 |
$
4.87 |
For each class of the Fund, expenses are equal to the
Fund’s annualized net expense ratio of 1.22%, 1.97%, 1.47%, 0.80% and 0.97% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year
period).
Nuveen Mid Cap Growth Opportunities Fund
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
LONG-TERM
INVESTMENTS – 99.1% |
|
|
|
|
|
|
COMMON
STOCKS – 99.1% |
|
|
|
|
|
|
Aerospace
& Defense – 3.0% |
|
|
|
|
33,858
|
|
L3Harris
Technologies Inc |
|
|
|
$6,558,295 |
9,455
|
|
TransDigm
Group Inc, (2) |
|
|
|
3,432,921
|
|
|
Total
Aerospace & Defense |
|
|
|
9,991,216
|
|
|
Airlines – 0.8%
|
|
|
|
|
84,347
|
|
Alaska
Air Group Inc, (2) |
|
|
|
2,742,964
|
|
|
Biotechnology – 6.0%
|
|
|
|
|
63,228
|
|
BioMarin
Pharmaceutical Inc, (2) |
|
|
|
5,818,241
|
39,652
|
|
Exact
Sciences Corp, (2) |
|
|
|
3,131,715
|
22,053
|
|
Immunomedics
Inc, (2) |
|
|
|
669,970
|
35,074
|
|
Sarepta
Therapeutics Inc, (2) |
|
|
|
4,134,523
|
29,274
|
|
Seattle
Genetics Inc, (2) |
|
|
|
4,017,271
|
17,973
|
|
United
Therapeutics Corp, (2) |
|
|
|
1,969,122
|
|
|
Total
Biotechnology |
|
|
|
19,740,842
|
|
|
Building
Products – 3.9% |
|
|
|
|
77,614
|
|
Owens
Corning |
|
|
|
3,365,343
|
58,094
|
|
Trane
Technologies PLC |
|
|
|
5,078,577
|
46,190
|
|
Trex
Co Inc, (2) |
|
|
|
4,398,212
|
|
|
Total
Building Products |
|
|
|
12,842,132
|
|
|
Capital
Markets – 3.5% |
|
|
|
|
63,273
|
|
Evercore
Inc |
|
|
|
3,264,887
|
25,347
|
|
MSCI
Inc |
|
|
|
8,288,469
|
|
|
Total
Capital Markets |
|
|
|
11,553,356
|
|
|
Chemicals – 0.8%
|
|
|
|
|
127,927
|
|
Axalta
Coating Systems Ltd, (2) |
|
|
|
2,525,279
|
|
|
Communications
Equipment – 1.8% |
|
|
|
|
53,332
|
|
Ciena
Corp, (2) |
|
|
|
2,466,605
|
43,919
|
|
Lumentum
Holdings Inc, (2) |
|
|
|
3,553,486
|
|
|
Total
Communications Equipment |
|
|
|
6,020,091
|
|
|
Consumer
Finance – 1.2% |
|
|
|
|
165,636
|
|
OneMain
Holdings Inc |
|
|
|
4,010,048
|
|
|
Containers
& Packaging – 1.3% |
|
|
|
|
107,799
|
|
Berry
Global Group Inc, (2) |
|
|
|
4,289,322
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Electrical
Equipment – 1.8% |
|
|
|
|
71,153
|
|
AMETEK
Inc |
|
|
|
$
5,967,602 |
|
|
Electronic
Equipment, Instruments & Components – 3.4% |
|
|
|
|
51,570
|
|
CDW
Corp |
|
|
|
5,713,956
|
55,868
|
|
Keysight
Technologies Inc, (2) |
|
|
|
5,406,346
|
|
|
Total
Electronic Equipment, Instruments & Components |
|
|
|
11,120,302
|
|
|
Entertainment – 0.7%
|
|
|
|
|
17,559
|
|
Take-Two
Interactive Software Inc, (2) |
|
|
|
2,125,517
|
|
|
Equity
Real Estate Investment Trust – 3.0% |
|
|
|
|
29,137
|
|
CoreSite
Realty Corp |
|
|
|
3,531,113
|
21,687
|
|
SBA
Communications Corp |
|
|
|
6,287,495
|
|
|
Total
Equity Real Estate Investment Trust |
|
|
|
9,818,608
|
|
|
Food
& Staples Retailing – 0.9% |
|
|
|
|
55,181
|
|
Sysco
Corp |
|
|
|
3,105,035
|
|
|
Food
Products – 1.2% |
|
|
|
|
53,233
|
|
Freshpet
Inc, (2) |
|
|
|
4,014,301
|
|
|
Health
Care Equipment & Supplies – 6.7% |
|
|
|
|
15,567
|
|
Align
Technology Inc, (2) |
|
|
|
3,344,570
|
20,557
|
|
DexCom
Inc, (2) |
|
|
|
6,890,706
|
23,550
|
|
Insulet
Corp, (2) |
|
|
|
4,703,406
|
13,538
|
|
Teleflex
Inc |
|
|
|
4,540,645
|
21,007
|
|
Zimmer
Biomet Holdings Inc |
|
|
|
2,514,538
|
|
|
Total
Health Care Equipment & Supplies |
|
|
|
21,993,865
|
|
|
Health
Care Providers & Services – 2.7% |
|
|
|
|
135,182
|
|
Centene
Corp, (2) |
|
|
|
9,000,418
|
|
|
Health
Care Technology – 0.9% |
|
|
|
|
18,211
|
|
Teladoc
Health Inc, (2) |
|
|
|
2,997,349
|
|
|
Hotels,
Restaurants & Leisure – 6.4% |
|
|
|
|
9,343
|
|
Chipotle
Mexican Grill Inc, (2) |
|
|
|
8,208,293
|
44,188
|
|
Darden
Restaurants Inc, (2), (3) |
|
|
|
3,260,633
|
6,366
|
|
Domino's
Pizza Inc |
|
|
|
2,304,046
|
21,005
|
|
Vail
Resorts Inc, (2) |
|
|
|
3,591,855
|
43,765
|
|
Wynn
Resorts Ltd |
|
|
|
3,743,220
|
|
|
Total
Hotels, Restaurants & Leisure |
|
|
|
21,108,047
|
|
|
Household
Products – 1.6% |
|
|
|
|
73,098
|
|
Church
& Dwight Co Inc |
|
|
|
5,116,129
|
|
|
IT
Services – 8.9% |
|
|
|
|
52,983
|
|
Akamai
Technologies Inc, (2) |
|
|
|
5,176,969
|
Nuveen Mid Cap Growth Opportunities Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
IT
Services (continued) |
|
|
|
|
46,779
|
|
Euronet
Worldwide Inc, (2) |
|
|
|
$4,292,441 |
27,266
|
|
FleetCor
Technologies Inc, (2) |
|
|
|
6,577,922
|
56,392
|
|
MAXIMUS
Inc |
|
|
|
3,796,309
|
28,605
|
|
Okta
Inc, (2) |
|
|
|
4,327,937
|
23,895
|
|
VeriSign
Inc, (2) |
|
|
|
5,005,764
|
|
|
Total
IT Services |
|
|
|
29,177,342
|
|
|
Leisure
Products – 0.5% |
|
|
|
|
23,765
|
|
Polaris
Inc |
|
|
|
1,685,651
|
|
|
Life
Sciences Tools & Services – 0.6% |
|
|
|
|
178,413
|
|
Accelerate
Diagnostics Inc, (2) |
|
|
|
1,946,485
|
|
|
Machinery – 1.1%
|
|
|
|
|
23,518
|
|
Parker-Hannifin
Corp |
|
|
|
3,718,666
|
|
|
Media – 1.2%
|
|
|
|
|
58,130
|
|
Nexstar
Media Group Inc |
|
|
|
4,071,425
|
|
|
Multiline
Retail – 2.3% |
|
|
|
|
42,920
|
|
Dollar
General Corp |
|
|
|
7,523,876
|
|
|
Pharmaceuticals – 1.5%
|
|
|
|
|
132,914
|
|
Horizon
Therapeutics Plc, (2) |
|
|
|
4,790,221
|
|
|
Professional
Services – 0.7% |
|
|
|
|
33,989
|
|
IHS
Markit Ltd |
|
|
|
2,287,460
|
|
|
Road
& Rail – 1.1% |
|
|
|
|
92,387
|
|
Knight-Swift
Transportation Holdings Inc |
|
|
|
3,434,949
|
|
|
Semiconductors
& Semiconductor Equipment – 5.3% |
|
|
|
|
58,120
|
|
Inphi
Corp, (2) |
|
|
|
5,610,905
|
26,037
|
|
Lam
Research Corp |
|
|
|
6,646,725
|
25,730
|
|
Monolithic
Power Systems Inc |
|
|
|
5,143,684
|
|
|
Total
Semiconductors & Semiconductor Equipment |
|
|
|
17,401,314
|
|
|
Software – 16.2%
|
|
|
|
|
21,669
|
|
ANSYS
Inc, (2) |
|
|
|
5,673,594
|
40,571
|
|
Aspen
Technology Inc, (2) |
|
|
|
4,148,385
|
34,125
|
|
Atlassian
Corp PLC, (2) |
|
|
|
5,306,096
|
46,250
|
|
Avalara
Inc, (2) |
|
|
|
4,133,363
|
69,654
|
|
Cadence
Design Systems Inc, (2) |
|
|
|
5,651,029
|
41,756
|
|
Crowdstrike
Holdings Inc, (2) |
|
|
|
2,825,211
|
13,872
|
|
Everbridge
Inc, (2) |
|
|
|
1,545,063
|
23,482
|
|
HubSpot
Inc, (2) |
|
|
|
3,959,770
|
93,733
|
|
Rapid7
Inc, (2) |
|
|
|
4,269,538
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Software
(continued) |
|
|
|
|
79,025
|
|
RealPage
Inc, (2) |
|
|
|
$5,096,322 |
22,566
|
|
RingCentral
Inc, (2) |
|
|
|
5,157,008
|
18,701
|
|
Trade
Desk Inc, (2) |
|
|
|
5,471,539
|
|
|
Total
Software |
|
|
|
53,236,918
|
|
|
Specialty
Retail – 4.8% |
|
|
|
|
54,151
|
|
Best
Buy Co Inc |
|
|
|
4,155,006
|
18,079
|
|
O'Reilly
Automotive Inc, (2) |
|
|
|
6,984,641
|
47,113
|
|
Tractor
Supply Co |
|
|
|
4,778,672
|
|
|
Total
Specialty Retail |
|
|
|
15,918,319
|
|
|
Textiles,
Apparel & Luxury Goods – 2.0% |
|
|
|
|
29,077
|
|
Lululemon
Athletica Inc, (2), (3) |
|
|
|
6,498,128
|
|
|
Trading
Companies & Distributors – 1.3% |
|
|
|
|
26,061
|
|
Watsco
Inc |
|
|
|
4,195,560
|
|
|
Total
Long-Term Investments (cost $272,582,624) |
|
|
|
325,968,737
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
INVESTMENTS
PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 1.9% |
|
|
|
|
|
MONEY
MARKET FUNDS – 1.9% |
|
|
|
|
6,317,677
|
|
First
American Government Obligations Fund, Class X, (4) |
0.252%
(5) |
|
|
$
6,317,677 |
|
|
Total
Investments Purchased with Collateral from Securities Lending (cost $6,317,677) |
|
|
6,317,677
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
SHORT-TERM
INVESTMENTS – 1.2% |
|
|
|
|
|
|
MONEY
MARKET FUNDS – 1.2% |
|
|
|
|
3,976,296
|
|
First
American Treasury Obligation Fund, Class Z |
0.134%
(5) |
|
|
$
3,976,296 |
|
|
Total
Short-Term Investments (cost $3,976,296) |
|
|
|
3,976,296
|
|
|
Total
Investments (cost $282,876,597) – 102.2% |
|
|
|
336,262,710
|
|
|
Other
Assets Less Liabilities – (2.2)% |
|
|
|
(7,280,403)
|
|
|
Net
Assets – 100% |
|
|
|
$
328,982,307 |
|
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 a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $5,932,841. |
|
(4)
|
The
Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of
the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 4 – Portfolio Securities and Investments in Derivatives for more
information. |
|
(5)
|
The
rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
|
See accompanying notes to financial statements.
Nuveen Small Cap Growth Opportunities Fund
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
LONG-TERM
INVESTMENTS – 99.9% |
|
|
|
|
|
|
COMMON
STOCKS – 97.3% |
|
|
|
|
|
|
Aerospace
& Defense – 3.5% |
|
|
|
|
155,079
|
|
Kratos
Defense & Security Solutions Inc, (2) |
|
|
|
$2,329,286 |
46,998
|
|
Mercury
Systems Inc, (2) |
|
|
|
4,190,342
|
|
|
Total
Aerospace & Defense |
|
|
|
6,519,628
|
|
|
Air
Freight & Logistics – 1.3% |
|
|
|
|
49,489
|
|
Hub
Group Inc, (2) |
|
|
|
2,380,916
|
|
|
Banks – 1.0%
|
|
|
|
|
50,630
|
|
Preferred
Bank/Los Angeles CA |
|
|
|
1,931,534
|
|
|
Biotechnology – 8.5%
|
|
|
|
|
37,721
|
|
ACADIA
Pharmaceuticals Inc, (2) |
|
|
|
1,822,302
|
23,478
|
|
Arena
Pharmaceuticals Inc, (2) |
|
|
|
1,149,718
|
7,354
|
|
Argenx
SE, Sponsored ADR |
|
|
|
1,077,287
|
10,250
|
|
Ascendis
Pharma A/S, Sponsored ADR |
|
|
|
1,391,233
|
23,793
|
|
Blueprint
Medicines Corp, (2) |
|
|
|
1,399,742
|
17,923
|
|
Emergent
BioSolutions Inc, (2) |
|
|
|
1,325,406
|
49,667
|
|
Fate
Therapeutics Inc, (2) |
|
|
|
1,359,882
|
17,999
|
|
Global
Blood Therapeutics Inc, (2) |
|
|
|
1,377,283
|
56,691
|
|
Iovance
Biotherapeutics Inc, (2) |
|
|
|
1,822,616
|
69,519
|
|
Momenta
Pharmaceuticals Inc, (2) |
|
|
|
2,203,752
|
23,018
|
|
Zymeworks
Inc, (2) |
|
|
|
840,848
|
|
|
Total
Biotechnology |
|
|
|
15,770,069
|
|
|
Building
Products – 3.7% |
|
|
|
|
28,843
|
|
CSW
Industrials Inc |
|
|
|
1,910,560
|
40,070
|
|
Gibraltar
Industries Inc, (2) |
|
|
|
1,855,241
|
31,867
|
|
Trex
Co Inc, (2) |
|
|
|
3,034,376
|
|
|
Total
Building Products |
|
|
|
6,800,177
|
|
|
Capital
Markets – 1.1% |
|
|
|
|
38,210
|
|
Evercore
Inc |
|
|
|
1,971,636
|
|
|
Chemicals – 1.5%
|
|
|
|
|
118,947
|
|
PolyOne
Corp |
|
|
|
2,770,276
|
|
|
Commercial
Services & Supplies – 2.2% |
|
|
|
|
38,953
|
|
Casella
Waste Systems Inc, (2) |
|
|
|
1,806,640
|
31,074
|
|
Tetra
Tech Inc |
|
|
|
2,339,251
|
|
|
Total
Commercial Services & Supplies |
|
|
|
4,145,891
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Communications
Equipment – 1.0% |
|
|
|
|
23,139
|
|
Lumentum
Holdings Inc, (2) |
|
|
|
$
1,872,176 |
|
|
Construction
& Engineering – 1.7% |
|
|
|
|
66,391
|
|
MasTec
Inc, (2) |
|
|
|
2,383,437
|
23,433
|
|
MYR
Group Inc, (2) |
|
|
|
702,990
|
|
|
Total
Construction & Engineering |
|
|
|
3,086,427
|
|
|
Diversified
Consumer Services – 1.7% |
|
|
|
|
73,477
|
|
Chegg
Inc, (2) |
|
|
|
3,141,142
|
|
|
Electrical
Equipment – 1.3% |
|
|
|
|
32,939
|
|
Regal
Beloit Corp |
|
|
|
2,338,998
|
|
|
Equity
Real Estate Investment Trust – 4.3% |
|
|
|
|
70,790
|
|
Healthcare
Realty Trust Inc |
|
|
|
2,080,518
|
40,020
|
|
QTS
Realty Trust Inc |
|
|
|
2,502,451
|
80,356
|
|
STAG
Industrial Inc |
|
|
|
2,109,345
|
207,987
|
|
Summit
Hotel Properties Inc |
|
|
|
1,260,401
|
|
|
Total
Equity Real Estate Investment Trust |
|
|
|
7,952,715
|
|
|
Food
& Staples Retailing – 1.0% |
|
|
|
|
64,699
|
|
Performance
Food Group Co, (2) |
|
|
|
1,898,916
|
|
|
Food
Products – 2.8% |
|
|
|
|
32,750
|
|
Freshpet
Inc, (2) |
|
|
|
2,469,678
|
19,617
|
|
Sanderson
Farms Inc |
|
|
|
2,670,658
|
|
|
Total
Food Products |
|
|
|
5,140,336
|
|
|
Health
Care Equipment & Supplies – 7.5% |
|
|
|
|
43,596
|
|
AtriCure
Inc, (2) |
|
|
|
1,879,860
|
79,105
|
|
Establishment
Labs Holdings Inc, (2), (3) |
|
|
|
1,382,755
|
22,658
|
|
iRhythm
Technologies Inc, (2) |
|
|
|
2,393,591
|
8,697
|
|
Penumbra
Inc, (2) |
|
|
|
1,542,152
|
13,599
|
|
Quidel
Corp, (2) |
|
|
|
1,890,261
|
68,842
|
|
STAAR
Surgical Co, (2) |
|
|
|
2,638,025
|
44,688
|
|
Tactile
Systems Technology Inc, (2) |
|
|
|
2,306,795
|
|
|
Total
Health Care Equipment & Supplies |
|
|
|
14,033,439
|
|
|
Health
Care Providers & Services – 2.4% |
|
|
|
|
14,048
|
|
Amedisys
Inc, (2) |
|
|
|
2,587,080
|
14,159
|
|
LHC
Group Inc, (2) |
|
|
|
1,840,528
|
|
|
Total
Health Care Providers & Services |
|
|
|
4,427,608
|
|
|
Health
Care Technology – 2.6% |
|
|
|
|
32,154
|
|
Livongo
Health Inc, (2) |
|
|
|
1,286,482
|
20,680
|
|
Omnicell
Inc, (2) |
|
|
|
1,507,572
|
Nuveen Small Cap Growth Opportunities Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Health
Care Technology (continued) |
|
|
|
|
12,526
|
|
Teladoc
Health Inc, (2) |
|
|
|
$
2,061,654 |
|
|
Total
Health Care Technology |
|
|
|
4,855,708
|
|
|
Hotels,
Restaurants & Leisure – 5.0% |
|
|
|
|
34,640
|
|
Jack
in the Box Inc |
|
|
|
2,088,792
|
40,571
|
|
Planet
Fitness Inc, (2) |
|
|
|
2,447,648
|
46,096
|
|
Texas
Roadhouse Inc, (2) |
|
|
|
2,170,661
|
22,896
|
|
Wingstop
Inc, (3) |
|
|
|
2,685,014
|
|
|
Total
Hotels, Restaurants & Leisure |
|
|
|
9,392,115
|
|
|
Household
Durables – 2.6% |
|
|
|
|
44,710
|
|
Meritage
Homes Corp, (2) |
|
|
|
2,349,958
|
25,903
|
|
TopBuild
Corp, (2) |
|
|
|
2,413,900
|
|
|
Total
Household Durables |
|
|
|
4,763,858
|
|
|
Insurance – 3.1%
|
|
|
|
|
15,343
|
|
eHealth
Inc, (2), (3) |
|
|
|
1,637,098
|
13,946
|
|
Kinsale
Capital Group Inc |
|
|
|
1,514,815
|
44,170
|
|
Palomar
Holdings Inc, (2) |
|
|
|
2,583,945
|
|
|
Total
Insurance |
|
|
|
5,735,858
|
|
|
IT
Services – 2.5% |
|
|
|
|
47,110
|
|
MAXIMUS
Inc |
|
|
|
3,171,445
|
174,844
|
|
Verra
Mobility Corp, (2) |
|
|
|
1,566,602
|
|
|
Total
IT Services |
|
|
|
4,738,047
|
|
|
Leisure
Products – 1.3% |
|
|
|
|
175,985
|
|
Callaway
Golf Co |
|
|
|
2,520,105
|
|
|
Life
Sciences Tools & Services – 2.2% |
|
|
|
|
95,373
|
|
NeoGenomics
Inc, (2) |
|
|
|
2,607,498
|
12,733
|
|
Repligen
Corp, (2) |
|
|
|
1,478,938
|
|
|
Total
Life Sciences Tools & Services |
|
|
|
4,086,436
|
|
|
Machinery – 3.5%
|
|
|
|
|
24,206
|
|
ESCO
Technologies Inc |
|
|
|
1,846,918
|
32,395
|
|
John
Bean Technologies Corp |
|
|
|
2,485,992
|
57,611
|
|
SPX
Corp, (2) |
|
|
|
2,196,707
|
|
|
Total
Machinery |
|
|
|
6,529,617
|
|
|
Media – 1.3%
|
|
|
|
|
33,444
|
|
Nexstar
Media Group Inc |
|
|
|
2,342,418
|
|
|
Multiline
Retail – 1.2% |
|
|
|
|
32,753
|
|
Ollie's
Bargain Outlet Holdings Inc, (2) |
|
|
|
2,224,256
|
|
|
Paper
& Forest Products – 1.2% |
|
|
|
|
115,941
|
|
Louisiana-Pacific
Corp |
|
|
|
2,318,820
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Pharmaceuticals – 3.5%
|
|
|
|
|
97,111
|
|
Aerie
Pharmaceuticals Inc, (2), (3) |
|
|
|
$1,479,972 |
101,906
|
|
Horizon
Therapeutics Plc, (2) |
|
|
|
3,672,692
|
9,267
|
|
MyoKardia
Inc, (2) |
|
|
|
582,153
|
5,175
|
|
Reata
Pharmaceuticals Inc, (2) |
|
|
|
818,478
|
|
|
Total
Pharmaceuticals |
|
|
|
6,553,295
|
|
|
Road
& Rail – 1.0% |
|
|
|
|
48,148
|
|
Knight-Swift
Transportation Holdings Inc |
|
|
|
1,790,143
|
|
|
Semiconductors
& Semiconductor Equipment – 5.2% |
|
|
|
|
38,999
|
|
Inphi
Corp, (2) |
|
|
|
3,764,963
|
143,327
|
|
Lattice
Semiconductor Corp, (2) |
|
|
|
3,226,291
|
86,349
|
|
MACOM
Technology Solutions Holdings Inc, (2) |
|
|
|
2,647,460
|
|
|
Total
Semiconductors & Semiconductor Equipment |
|
|
|
9,638,714
|
|
|
Software – 10.8%
|
|
|
|
|
23,796
|
|
Avalara
Inc, (2) |
|
|
|
2,126,649
|
19,202
|
|
Blackline
Inc, (2) |
|
|
|
1,166,329
|
16,184
|
|
Everbridge
Inc, (2) |
|
|
|
1,802,574
|
37,700
|
|
J2
Global Inc, (2) |
|
|
|
3,040,128
|
25,436
|
|
Q2
Holdings Inc, (2) |
|
|
|
2,027,758
|
62,997
|
|
Rapid7
Inc, (2) |
|
|
|
2,869,513
|
42,131
|
|
RealPage
Inc, (2) |
|
|
|
2,717,028
|
129,242
|
|
Sailpoint
Technologies Holdings Inc, (2) |
|
|
|
2,402,609
|
28,654
|
|
Varonis
Systems Inc, (2) |
|
|
|
1,921,251
|
591,081
|
|
Videopropulsion
Inc, (2), (4) |
|
|
|
591
|
|
|
Total
Software |
|
|
|
20,074,430
|
|
|
Specialty
Retail – 0.9% |
|
|
|
|
88,784
|
|
Boot
Barn Holdings Inc, (2) |
|
|
|
1,638,953
|
|
|
Textiles,
Apparel & Luxury Goods – 2.1% |
|
|
|
|
14,440
|
|
Deckers
Outdoor Corp, (2) |
|
|
|
2,148,095
|
71,720
|
|
Steven
Madden Ltd |
|
|
|
1,798,020
|
|
|
Total
Textiles, Apparel & Luxury Goods |
|
|
|
3,946,115
|
|
|
Trading
Companies & Distributors – 0.8% |
|
|
|
|
29,046
|
|
Applied
Industrial Technology, Inc |
|
|
|
1,521,720
|
|
|
Total
Common Stocks (cost $160,872,198) |
|
|
|
180,852,492
|
Shares
|
|
Description
(1), (5) |
|
|
|
Value
|
|
|
EXCHANGE-TRADED
FUNDS – 2.6% |
|
|
|
|
52,460
|
|
SPDR
S&P Biotech ETF |
|
|
|
$
4,899,239 |
|
|
Total
Exchange-Traded Funds (cost $4,060,330) |
|
|
|
4,899,239
|
|
|
Total
Long-Term Investments (cost $164,932,528) |
|
|
|
185,751,731
|
Nuveen Small Cap Growth Opportunities Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
INVESTMENTS
PURCHASED WITH COLLATERAL FROM SECURITIES LENDING – 2.1% |
|
|
|
|
|
MONEY
MARKET FUNDS – 2.1% |
|
|
|
|
3,858,037
|
|
First
American Government Obligations Fund, Class X, (6) |
0.252%
(7) |
|
|
$
3,858,037 |
|
|
Total
Investments Purchased with Collateral from Securities Lending (cost $3,858,037) |
|
|
3,858,037
|
|
|
Total
Investments (cost $168,790,565) – 102.0% |
|
|
|
189,609,768
|
|
|
Other
Assets Less Liabilities – (2.0)% |
|
|
|
(3,712,122)
|
|
|
Net
Assets – 100% |
|
|
|
$
185,897,646 |
|
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 a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $3,715,032. |
|
(4)
|
Investment
valued at fair value using methods determined in good faith by, or at the discretion of, the Board. For fair value measurement disclosure purposes, investment classified as Level 3. See Notes to Financial Statements, Note 3 - Investment Valuation
and Fair Value Measurements for more information. |
|
(5)
|
A
copy of the most recent financial statements for the exchange-traded funds in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
|
(6)
|
The
Fund may loan securities representing up to one third of the fair value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The Fund maintains collateral equal to at least 100% of
the fair value of the securities loaned. The cash collateral received by the Fund is invested in this money market fund. See Notes to Financial Statements, Note 4 – Portfolio Securities and Investments in Derivatives for more
information. |
|
(7)
|
The
rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
|
ADR
|
American
Depositary Receipt |
|
ETF
|
Exchange-Traded
Fund |
|
SPDR
|
Standard
& Poor's Depositary Receipt |
|
See accompanying notes to financial statements.
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Assets
|
|
|
Long-term
investments, at value (cost $272,582,624 and $164,932,528, respectively) |
$325,968,737
|
$185,751,731
|
Investment
purchased with collateral from securities lending, at value (cost approximates value) |
6,317,677
|
3,858,037
|
Short-term
investments, at value (cost approximates value) |
3,976,296
|
—
|
Receivable
for: |
|
|
Dividends
|
5,778
|
19,814
|
Due
from affiliates |
30,529
|
19,221
|
Due
from broker |
609
|
1,193
|
Interest
|
449
|
221
|
Investments
sold |
2,411,186
|
5,377,106
|
Shares
sold |
492,931
|
94,608
|
Other
assets |
102,642
|
42,794
|
Total
assets |
339,306,834
|
195,164,725
|
Liabilities
|
|
|
Cash
overdraft |
—
|
1,146,419
|
Payable
for: |
|
|
Collateral
from securities lending program |
6,317,677
|
3,858,037
|
Investments
purchased - regular settlement |
3,108,232
|
3,002,076
|
Shares
redeemed |
384,066
|
988,564
|
Accrued
expenses: |
|
|
Directors
fees |
68,059
|
1,453
|
Management
fees |
168,420
|
75,810
|
12b-1
distribution and service fees |
40,951
|
7,567
|
Other
|
237,122
|
187,153
|
Total
liabilities |
10,324,527
|
9,267,079
|
Net
assets |
$328,982,307
|
$185,897,646
|
|
|
|
See accompanying notes to financial statements.
Statement of Assets and Liabilities (Unaudited) (continued)
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Class
A Shares |
|
|
Net
assets |
$159,026,902
|
$
32,750,402 |
Shares
outstanding |
5,851,891
|
1,547,848
|
Net
asset value ("NAV") per share |
$
27.18 |
$
21.16 |
Offering
price per share (NAV per share plus maximum sales charge of 5.75% of offering price) |
$
28.84 |
$
22.45 |
Class
C Shares |
|
|
Net
assets |
$
4,985,647 |
$
1,441,868 |
Shares
outstanding |
322,304
|
95,513
|
NAV
and offering price per share |
$
15.47 |
$
15.10 |
Class
R3 Shares |
|
|
Net
assets |
$
18,096,302 |
$
1,210,309 |
Shares
outstanding |
755,511
|
61,702
|
NAV
and offering price per share |
$
23.95 |
$
19.62 |
Class
R6 Shares |
|
|
Net
assets |
$
23,931,148 |
$
2,662,999 |
Shares
outstanding |
650,037
|
102,419
|
NAV
and offering price per share |
$
36.82 |
$
26.00 |
Class
I Shares |
|
|
Net
assets |
$122,942,308
|
$147,832,068
|
Shares
outstanding |
3,395,762
|
5,732,286
|
NAV
and offering price per share |
$
36.20 |
$
25.79 |
Fund
level net assets consist of: |
|
|
Capital
paid-in |
$270,486,509
|
$169,511,468
|
Total
distributable earnings |
58,495,798
|
16,386,178
|
Fund
level net assets |
$328,982,307
|
$185,897,646
|
Authorized
shares - per class |
2
billion |
2
billion |
Par
value per share |
$
0.0001 |
$
0.0001 |
See accompanying notes to financial statements.
Statement of Operations
Six Months Ended April 30, 2020
(Unaudited)
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Investment
Income |
|
|
Dividends
|
$1,911,633
|
$
517,638 |
Interest
|
15,057
|
12,833
|
Securities
lending income |
13,101
|
13,938
|
Payment
from affiliate |
30,529
|
19,221
|
Total
investment income |
1,970,320
|
563,630
|
Expenses
|
|
|
Management
fees |
1,400,428
|
888,156
|
12b-1
service fees - Class A Shares |
207,760
|
42,488
|
12b-1
distribution and service fees - Class C Shares |
26,082
|
7,858
|
12b-1
distibution and service fees - Class R3 Shares |
50,000
|
3,231
|
Shareholder
servicing agent fees |
257,844
|
197,617
|
Custodian
fees |
25,390
|
19,226
|
Professional
fees |
32,319
|
21,225
|
Directors
fees |
3,718
|
2,355
|
Shareholder
reporting expenses |
18,646
|
58,511
|
Federal
and state registration fees |
41,373
|
46,045
|
Other
|
4,195
|
1,670
|
Total
expenses before fee waiver/expense reimbursement |
2,067,755
|
1,288,382
|
Fee
waiver/expense reimbursement |
(165,173)
|
(195,114)
|
Net
expenses |
1,902,582
|
1,093,268
|
Net
investment income (loss) |
67,738
|
(529,638)
|
Realized
and Unrealized Gain (Loss) |
|
|
Net
realized gain (loss) from investments |
8,065,200
|
(2,267,503)
|
Change
in net unrealized appreciation (depreciation) of investments |
(781,838)
|
2,518,517
|
Net
realized and unrealized gain (loss) |
7,283,362
|
251,014
|
Net
increase (decrease) in net assets from operations |
$7,351,100
|
$
(278,624) |
See accompanying notes to financial statements.
Statement of Changes in Net Assets
(Unaudited)
|
Mid
Cap Growth Opportunities |
|
Small
Cap Growth Opportunities |
|
Six
Months Ended 4/30/20 |
Year
Ended 10/31/19 |
|
Six
Months Ended 4/30/20 |
Year
Ended 10/31/19 |
Operations
|
|
|
|
|
|
Net
investment income (loss) |
$
67,738 |
$
(1,147,939) |
|
$
(529,638) |
$
(728,025) |
Net
realized gain (loss) from investments |
8,065,200
|
84,972,569
|
|
(2,267,503)
|
(842,975)
|
Change
in net unrealized appreciation (depreciation) of investments |
(781,838)
|
(27,405,591)
|
|
2,518,517
|
7,571,292
|
Net
increase (decrease) in net assets from operations |
7,351,100
|
56,419,039
|
|
(278,624)
|
6,000,292
|
Distributions
to Shareholders |
|
|
|
|
|
Dividends:
|
|
|
|
|
|
Class
A Shares |
(36,832,892)
|
(33,688,438)
|
|
—
|
(5,069,832)
|
Class
C Shares |
(1,779,313)
|
(1,845,779)
|
|
—
|
(375,076)
|
Class
R3 Shares |
(5,055,764)
|
(4,617,499)
|
|
—
|
(170,130)
|
Class
R6 Shares |
(4,121,288)
|
(7,948,731)
|
|
—
|
(1,183,722)
|
Class
I Shares |
(25,757,305)
|
(42,429,100)
|
|
—
|
(6,735,701)
|
Decrease
in net assets from distributions to shareholders |
(73,546,562)
|
(90,529,547)
|
|
—
|
(13,534,461)
|
Fund
Share Transactions |
|
|
|
|
|
Proceeds
from sale of shares |
18,732,890
|
45,420,126
|
|
31,459,917
|
141,918,570
|
Proceeds
from shares issued to shareholders due to reinvestment of distributions |
68,352,667
|
82,717,140
|
|
—
|
10,691,877
|
|
87,085,557
|
128,137,266
|
|
31,459,917
|
152,610,447
|
Cost
of shares redeemed |
(84,611,739)
|
(319,546,880)
|
|
(54,802,547)
|
(46,024,192)
|
Net
increase (decrease) in net assets from Fund share transactions |
2,473,818
|
(191,409,614)
|
|
(23,342,630)
|
106,586,255
|
Net
increase (decrease) in net assets |
(63,721,644)
|
(225,520,122)
|
|
(23,621,254)
|
99,052,086
|
Net
assets at the beginning of period |
392,703,951
|
618,224,073
|
|
209,518,900
|
110,466,814
|
Net
assets at the end of period |
$328,982,307
|
$
392,703,951 |
|
$185,897,646
|
$209,518,900
|
See accompanying notes to financial statements.
THIS PAGE INTENTIONALLY LEFT BLANK
Financial Highlights
(Unaudited)
Mid Cap Growth
Opportunities
Selected data for a share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
Class
(Commencement Date) Year Ended October 31 |
Beginning
NAV |
Net
Investment Income (Loss)(a) |
Net
Realized/ Unrealized Gain (Loss) |
Total
|
|
From
Net Investment Income |
From
Accumulated Net Realized Gains |
Total
|
Ending
NAV |
Class
A (01/95) |
|
|
|
|
|
|
|
|
|
2020(f)
|
$33.66
|
$(0.01)
|
$
0.87 |
$
0.86 |
|
$ —
|
$(7.34)
|
$(7.34)
|
$27.18
|
2019
|
36.79
|
(0.12)
|
3.48
|
3.36
|
|
—
|
(6.49)
|
(6.49)
|
33.66
|
2018
|
43.45
|
(0.20)
|
1.16
|
0.96
|
|
—
|
(7.62)
|
(7.62)
|
36.79
|
2017
|
36.09
|
(0.17)
|
9.20
|
9.03
|
|
—
|
(1.67)
|
(1.67)
|
43.45
|
2016
|
40.91
|
(0.12)
|
(1.36)
|
(1.48)
|
|
—
|
(3.34)
|
(3.34)
|
36.09
|
2015
|
47.67
|
(0.31)
|
1.72
|
1.41
|
|
—
|
(8.17)
|
(8.17)
|
40.91
|
Class
C (09/01) |
|
|
|
|
|
|
|
|
|
2020(f)
|
22.20
|
(0.07)
|
0.68
|
0.61
|
|
—
|
(7.34)
|
(7.34)
|
15.47
|
2019
|
26.85
|
(0.24)
|
2.08
|
1.84
|
|
—
|
(6.49)
|
(6.49)
|
22.20
|
2018
|
33.94
|
(0.36)
|
0.89
|
0.53
|
|
—
|
(7.62)
|
(7.62)
|
26.85
|
2017
|
28.74
|
(0.36)
|
7.23
|
6.87
|
|
—
|
(1.67)
|
(1.67)
|
33.94
|
2016
|
33.50
|
(0.31)
|
(1.11)
|
(1.42)
|
|
—
|
(3.34)
|
(3.34)
|
28.74
|
2015
|
40.77
|
(0.52)
|
1.42
|
0.90
|
|
—
|
(8.17)
|
(8.17)
|
33.50
|
Class
R3 (12/00) |
|
|
|
|
|
|
|
|
|
2020(f)
|
30.52
|
(0.04)
|
0.81
|
0.77
|
|
—
|
(7.34)
|
(7.34)
|
23.95
|
2019
|
34.10
|
(0.18)
|
3.09
|
2.91
|
|
—
|
(6.49)
|
(6.49)
|
30.52
|
2018
|
40.90
|
(0.28)
|
1.10
|
0.82
|
|
—
|
(7.62)
|
(7.62)
|
34.10
|
2017
|
34.14
|
(0.25)
|
8.68
|
8.43
|
|
—
|
(1.67)
|
(1.67)
|
40.90
|
2016
|
38.98
|
(0.20)
|
(1.30)
|
(1.50)
|
|
—
|
(3.34)
|
(3.34)
|
34.14
|
2015
|
45.90
|
(0.40)
|
1.65
|
1.25
|
|
—
|
(8.17)
|
(8.17)
|
38.98
|
Class
R6 (02/13) |
|
|
|
|
|
|
|
|
|
2020(f)
|
43.07
|
0.06
|
1.03
|
1.09
|
|
—
|
(7.34)
|
(7.34)
|
36.82
|
2019
|
44.94
|
0.01
|
4.61
|
4.62
|
|
—
|
(6.49)
|
(6.49)
|
43.07
|
2018
|
51.24
|
(0.05)
|
1.37
|
1.32
|
|
—
|
(7.62)
|
(7.62)
|
44.94
|
2017
|
42.11
|
(0.02)
|
10.82
|
10.80
|
|
—
|
(1.67)
|
(1.67)
|
51.24
|
2016
|
47.00
|
0.06
|
(1.61)
|
(1.55)
|
|
—
|
(3.34)
|
(3.34)
|
42.11
|
2015
|
53.36
|
(0.16)
|
1.97
|
1.81
|
|
—
|
(8.17)
|
(8.17)
|
47.00
|
Class
I (12/89) |
|
|
|
|
|
|
|
|
|
2020(f)
|
42.49
|
0.04
|
1.01
|
1.05
|
|
—
|
(7.34)
|
(7.34)
|
36.20
|
2019
|
44.49
|
(0.05)
|
4.54
|
4.49
|
|
—
|
(6.49)
|
(6.49)
|
42.49
|
2018
|
50.85
|
(0.12)
|
1.38
|
1.26
|
|
—
|
(7.62)
|
(7.62)
|
44.49
|
2017
|
41.87
|
(0.08)
|
10.73
|
10.65
|
|
—
|
(1.67)
|
(1.67)
|
50.85
|
2016
|
46.81
|
(0.04)
|
(1.56)
|
(1.60)
|
|
—
|
(3.34)
|
(3.34)
|
41.87
|
2015
|
53.24
|
(0.23)
|
1.97
|
1.74
|
|
—
|
(8.17)
|
(8.17)
|
46.81
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data |
|
|
Ratios
to Average Net Assets Before Waiver/Reimbursement |
|
Ratios
to Average Net Assets After Waiver/Reimbursement(d) |
|
Total
Return(b), (c) |
Ending
Net Assets (000) |
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
|
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
Portfolio
Turnover Rate(e) |
|
|
|
|
|
|
|
|
|
|
1.64%
|
$159,027
|
1.26%*
|
(0.16)%*
|
(0.18)%*
|
|
1.17%*
|
(0.07)%*
|
(0.08)%*
|
37%
|
13.43
|
172,912
|
1.24
|
(0.42)
|
N/A
|
|
1.17
|
(0.35)
|
N/A
|
90
|
2.35
|
196,212
|
1.23
|
(0.56)
|
N/A
|
|
1.17
|
(0.51)
|
N/A
|
106
|
25.89
|
250,908
|
1.23
|
(0.48)
|
N/A
|
|
1.17
|
(0.43)
|
N/A
|
136
|
(3.78)
|
280,681
|
1.29
|
(0.35)
|
N/A
|
|
1.27
|
(0.33)
|
N/A
|
89
|
3.68
|
365,394
|
1.30
|
(0.72)
|
N/A
|
|
1.30
|
(0.72)
|
N/A
|
118
|
|
|
|
|
|
|
|
|
|
|
1.28
|
4,986
|
2.01*
|
(0.91)*
|
(0.93)*
|
|
1.92*
|
(0.82)*
|
(0.84)*
|
37
|
12.58
|
5,664
|
2.00
|
(1.18)
|
N/A
|
|
1.92
|
(1.11)
|
N/A
|
90
|
1.60
|
7,936
|
1.98
|
(1.30)
|
N/A
|
|
1.92
|
(1.25)
|
N/A
|
106
|
24.95
|
16,278
|
1.98
|
(1.23)
|
N/A
|
|
1.92
|
(1.18)
|
N/A
|
136
|
(4.50)
|
16,956
|
2.04
|
(1.10)
|
N/A
|
|
2.02
|
(1.08)
|
N/A
|
89
|
2.91
|
22,284
|
2.05
|
(1.47)
|
N/A
|
|
2.05
|
(1.47)
|
N/A
|
118
|
|
|
|
|
|
|
|
|
|
|
1.53
|
18,096
|
1.51*
|
(0.40)*
|
(0.41)*
|
|
1.42*
|
(0.30)*
|
(0.32)*
|
37
|
13.15
|
22,135
|
1.50
|
(0.68)
|
N/A
|
|
1.42
|
(0.61)
|
N/A
|
90
|
2.09
|
26,098
|
1.48
|
(0.81)
|
N/A
|
|
1.42
|
(0.76)
|
N/A
|
106
|
25.60
|
35,402
|
1.48
|
(0.72)
|
N/A
|
|
1.42
|
(0.66)
|
N/A
|
136
|
(4.04)
|
55,093
|
1.54
|
(0.59)
|
N/A
|
|
1.52
|
(0.57)
|
N/A
|
89
|
3.43
|
54,866
|
1.55
|
(0.98)
|
N/A
|
|
1.55
|
(0.98)
|
N/A
|
118
|
|
|
|
|
|
|
|
|
|
|
1.84
|
23,931
|
0.88*
|
0.22*
|
0.20*
|
|
0.79*
|
0.31*
|
0.29*
|
37
|
13.85
|
26,329
|
0.86
|
(0.05)
|
N/A
|
|
0.79
|
0.02
|
N/A
|
90
|
2.75
|
56,250
|
0.84
|
(0.17)
|
N/A
|
|
0.78
|
(0.11)
|
N/A
|
106
|
26.41
|
72,703
|
0.84
|
(0.09)
|
N/A
|
|
0.78
|
(0.03)
|
N/A
|
136
|
(3.41)
|
50,677
|
0.89
|
0.12
|
N/A
|
|
0.86
|
0.14
|
N/A
|
89
|
4.09
|
31,167
|
0.92
|
(0.33)
|
N/A
|
|
0.92
|
(0.33)
|
N/A
|
118
|
|
|
|
|
|
|
|
|
|
|
1.76
|
122,942
|
1.01*
|
0.10*
|
0.09*
|
|
0.92*
|
0.19*
|
0.18*
|
37
|
13.73
|
165,663
|
1.00
|
(0.19)
|
N/A
|
|
0.92
|
(0.12)
|
N/A
|
90
|
2.61
|
331,728
|
0.98
|
(0.31)
|
N/A
|
|
0.92
|
(0.26)
|
N/A
|
106
|
26.20
|
425,158
|
0.98
|
(0.23)
|
N/A
|
|
0.92
|
(0.18)
|
N/A
|
136
|
(3.54)
|
491,747
|
1.04
|
(0.10)
|
N/A
|
|
1.02
|
(0.08)
|
N/A
|
89
|
3.95
|
730,560
|
1.05
|
(0.47)
|
N/A
|
|
1.05
|
(0.47)
|
N/A
|
118
|
(a)
|
Per share Net
Investment Income (Loss) is calculated using the average daily shares method. |
(b)
|
During the
current fiscal period, the Fund received voluntary compensation from the Adviser. The Fund's Total Return for each share would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded. See Note 7-Management Fees
and Other Transactions with Affiliates, for more information. |
(c)
|
Total
return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(d)
|
After fee
waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, for more information. |
(e)
|
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
|
(f)
|
For the
six months ended April 30, 2020. |
*
|
Annualized.
|
N/A
|
Fund did
not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020. |
See accompanying notes to financial statements.
Financial Highlights (Unaudited) (continued)
Small Cap Growth Opportunities
Selected
data for a share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
Class
(Commencement Date) Year Ended October 31 |
Beginning
NAV |
Net
Investment Income (Loss)(a) |
Net
Realized/ Unrealized Gain (Loss) |
Total
|
|
From
Net Investment Income |
From
Accumulated Net Realized Gains |
Total
|
Ending
NAV |
Class
A (08/95) |
|
|
|
|
|
|
|
|
|
2020(f)
|
$20.96
|
$(0.08)
|
$0.28
|
$
0.20 |
|
$ —
|
$
— |
$
— |
$21.16
|
2019
|
23.54
|
(0.14)
|
0.84
|
0.70
|
|
—
|
(3.28)
|
(3.28)
|
20.96
|
2018
|
24.78
|
(0.17)
|
1.94
|
1.77
|
|
—
|
(3.01)
|
(3.01)
|
23.54
|
2017
|
19.90
|
(0.16)
|
5.14
|
4.98
|
|
—
|
(0.10)
|
(0.10)
|
24.78
|
2016
|
21.57
|
(0.10)
|
0.45
|
0.35
|
|
—
|
(2.02)
|
(2.02)
|
19.90
|
2015
|
24.41
|
(0.22)
|
0.33
|
0.11
|
|
—
|
(2.95)
|
(2.95)
|
21.57
|
Class
C (09/01) |
|
|
|
|
|
|
|
|
|
2020(f)
|
15.01
|
(0.11)
|
0.20
|
0.09
|
|
—
|
—
|
—
|
15.10
|
2019
|
18.01
|
(0.21)
|
0.49
|
0.28
|
|
—
|
(3.28)
|
(3.28)
|
15.01
|
2018
|
19.79
|
(0.27)
|
1.50
|
1.23
|
|
—
|
(3.01)
|
(3.01)
|
18.01
|
2017
|
16.02
|
(0.26)
|
4.13
|
3.87
|
|
—
|
(0.10)
|
(0.10)
|
19.79
|
2016
|
17.89
|
(0.20)
|
0.35
|
0.15
|
|
—
|
(2.02)
|
(2.02)
|
16.02
|
2015
|
20.89
|
(0.33)
|
0.28
|
(0.05)
|
|
—
|
(2.95)
|
(2.95)
|
17.89
|
Class
R3 (12/00) |
|
|
|
|
|
|
|
|
|
2020(f)
|
19.45
|
(0.09)
|
0.26
|
0.17
|
|
—
|
—
|
—
|
19.62
|
2019
|
22.16
|
(0.18)
|
0.75
|
0.57
|
|
—
|
(3.28)
|
(3.28)
|
19.45
|
2018
|
23.56
|
(0.22)
|
1.83
|
1.61
|
|
—
|
(3.01)
|
(3.01)
|
22.16
|
2017
|
18.97
|
(0.21)
|
4.90
|
4.69
|
|
—
|
(0.10)
|
(0.10)
|
23.56
|
2016
|
20.71
|
(0.14)
|
0.42
|
0.28
|
|
—
|
(2.02)
|
(2.02)
|
18.97
|
2015
|
23.60
|
(0.27)
|
0.33
|
0.06
|
|
—
|
(2.95)
|
(2.95)
|
20.71
|
Class
R6 (06/16) |
|
|
|
|
|
|
|
|
|
2020(f)
|
25.69
|
(0.03)
|
0.34
|
0.31
|
|
—
|
—
|
—
|
26.00
|
2019
|
27.88
|
(0.05)
|
1.14
|
1.09
|
|
—
|
(3.28)
|
(3.28)
|
25.69
|
2018
|
28.72
|
(0.10)
|
2.27
|
2.17
|
|
—
|
(3.01)
|
(3.01)
|
27.88
|
2017
|
22.96
|
(0.08)
|
5.94
|
5.86
|
|
—
|
(0.10)
|
(0.10)
|
28.72
|
2016
|
21.63
|
(0.02)
|
1.35
|
1.33
|
|
—
|
—
|
—
|
22.96
|
Class
I (08/95) |
|
|
|
|
|
|
|
|
|
2020(f)
|
25.51
|
(0.06)
|
0.34
|
0.28
|
|
—
|
—
|
—
|
25.79
|
2019
|
27.79
|
(0.10)
|
1.10
|
1.00
|
|
—
|
(3.28)
|
(3.28)
|
25.51
|
2018
|
28.66
|
(0.13)
|
2.27
|
2.14
|
|
—
|
(3.01)
|
(3.01)
|
27.79
|
2017
|
22.94
|
(0.12)
|
5.94
|
5.82
|
|
—
|
(0.10)
|
(0.10)
|
28.66
|
2016
|
24.51
|
(0.06)
|
0.51
|
0.45
|
|
—
|
(2.02)
|
(2.02)
|
22.94
|
2015
|
27.26
|
(0.19)
|
0.39
|
0.20
|
|
—
|
(2.95)
|
(2.95)
|
24.51
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data |
|
|
Ratios
to Average Net Assets Before Waiver/Reimbursement |
|
Ratios
to Average Net Assets After Waiver/Reimbursement(d) |
|
Total
Return(b), (c) |
Ending
Net Assets (000) |
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
|
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
Portfolio
Turnover Rate(e) |
|
|
|
|
|
|
|
|
|
|
1.00%
|
$
32,750 |
1.40%*
|
(0.89)%*
|
(0.90)%*
|
|
1.22%*
|
(0.70)%*
|
(0.72)%*
|
51%
|
5.47
|
34,249
|
1.39
|
(0.84)
|
N/A
|
|
1.23
|
(0.68)
|
N/A
|
104
|
7.89
|
36,452
|
1.38
|
(0.86)
|
N/A
|
|
1.24
|
(0.72)
|
N/A
|
139
|
25.07
|
34,934
|
1.41
|
(0.80)
|
N/A
|
|
1.30
|
(0.69)
|
N/A
|
95
|
1.90
|
31,255
|
1.48
|
(0.58)
|
N/A
|
|
1.42
|
(0.52)
|
N/A
|
106
|
0.72
|
33,922
|
1.50
|
(1.00)
|
N/A
|
|
1.47
|
(0.97)
|
N/A
|
128
|
|
|
|
|
|
|
|
|
|
|
0.60
|
1,442
|
2.15*
|
(1.63)*
|
(1.65)*
|
|
1.97*
|
(1.45)*
|
(1.46)*
|
51
|
4.74
|
1,631
|
2.14
|
(1.59)
|
N/A
|
|
1.98
|
(1.43)
|
N/A
|
104
|
7.05
|
2,141
|
2.13
|
(1.60)
|
N/A
|
|
1.99
|
(1.46)
|
N/A
|
139
|
24.21
|
2,181
|
2.16
|
(1.55)
|
N/A
|
|
2.05
|
(1.44)
|
N/A
|
95
|
1.10
|
1,971
|
2.23
|
(1.32)
|
N/A
|
|
2.18
|
(1.27)
|
N/A
|
106
|
(0.03)
|
2,278
|
2.25
|
(1.75)
|
N/A
|
|
2.22
|
(1.72)
|
N/A
|
128
|
|
|
|
|
|
|
|
|
|
|
0.87
|
1,210
|
1.65*
|
(1.13)*
|
(1.15)*
|
|
1.47*
|
(0.95)*
|
(0.97)*
|
51
|
5.23
|
1,253
|
1.64
|
(1.10)
|
N/A
|
|
1.48
|
(0.94)
|
N/A
|
104
|
7.60
|
1,206
|
1.63
|
(1.11)
|
N/A
|
|
1.49
|
(0.97)
|
N/A
|
139
|
24.77
|
1,608
|
1.66
|
(1.05)
|
N/A
|
|
1.55
|
(0.94)
|
N/A
|
95
|
1.62
|
1,631
|
1.73
|
(0.83)
|
N/A
|
|
1.67
|
(0.78)
|
N/A
|
106
|
0.50
|
1,439
|
1.75
|
(1.26)
|
N/A
|
|
1.72
|
(1.23)
|
N/A
|
128
|
|
|
|
|
|
|
|
|
|
|
1.21
|
2,663
|
0.97*
|
(0.42)*
|
(0.43)*
|
|
0.80*
|
(0.25)*
|
(0.26)*
|
51
|
6.13
|
144
|
1.01
|
(0.35)
|
N/A
|
|
0.85
|
(0.19)
|
N/A
|
104
|
8.24
|
14,475
|
1.03
|
(0.50)
|
N/A
|
|
0.88
|
(0.35)
|
N/A
|
139
|
25.56
|
19,108
|
1.04
|
(0.43)
|
N/A
|
|
0.93
|
(0.32)
|
N/A
|
95
|
6.15
|
19,524
|
1.02*
|
(0.29)*
|
N/A
|
|
0.96*
|
(0.23)*
|
N/A
|
106
|
|
|
|
|
|
|
|
|
|
|
1.10
|
147,832
|
1.15*
|
(0.63)*
|
(0.65)*
|
|
0.97*
|
(0.45)*
|
(0.46)*
|
51
|
5.78
|
172,242
|
1.13
|
(0.56)
|
N/A
|
|
0.98
|
(0.41)
|
N/A
|
104
|
8.14
|
56,194
|
1.13
|
(0.60)
|
N/A
|
|
0.99
|
(0.46)
|
N/A
|
139
|
25.41
|
43,557
|
1.16
|
(0.56)
|
N/A
|
|
1.05
|
(0.44)
|
N/A
|
95
|
2.10
|
34,468
|
1.24
|
(0.32)
|
N/A
|
|
1.19
|
(0.26)
|
N/A
|
106
|
1.00
|
62,403
|
1.25
|
(0.75)
|
N/A
|
|
1.22
|
(0.71)
|
N/A
|
128
|
(a)
|
Per share Net
Investment Income (Loss) is calculated using the average daily shares method. |
(b)
|
During the
current fiscal period, the Fund received voluntary compensation from the Adviser. The Fund's Total Return for each share would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded. See Note 7-Management Fees
and Other Transactions with Affiliates, for more information. |
(c)
|
Total
return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(d)
|
After fee
waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, for more information. |
(e)
|
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
|
(f)
|
For the
six months ended April 30, 2020. |
*
|
Annualized.
|
N/A
|
Fund did
not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020. |
See accompanying notes to financial statements.
Notes to Financial Statements
(Unaudited)
1. General Information
Trust and Fund Information
Nuveen Investment Funds, Inc. (the “Trust”), is an
open-end management investment company registered under the Investment Company Act of 1940 (the "1940 Act"), as amended. The Trust is comprised of Nuveen Mid Cap Growth Opportunities Fund (“Mid Cap Growth Opportunities”) and Nuveen Small
Cap Growth Opportunities Fund (“Small Cap Growth Opportunities”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August
20, 1987.
The end of the reporting period for the Funds
is April 30, 2020 , and the period covered by these Notes to Financial Statements is the six months ended April 30, 2020 (the “current fiscal period”).
Investment Adviser and Sub-Adviser
The Funds' investment adviser is Nuveen Fund Advisors, LLC (the
“Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds,
oversees the management of the Funds' portfolios, manages the Funds' business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into
sub-advisory agreements with Nuveen Asset Management, LLC, (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge
and incur a 0.25% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”)
of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but incur a 0.75% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if
redeemed within twelve months of purchase. Class C Shares automatically convert to Class A Shares ten years after purchase. Class R3 Shares are sold without an up-front sales charge but incur a 0.25% annual 12b-1 distribution fee and a 0.25% annual
12b-1 service fee. Class R6 Shares and Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Other Matters
The outbreak of the novel coronavirus (“COVID-19”)
and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global
economy. The duration and extent of COVID-19 over the long-term cannot be reasonably estimated at this time. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have on
the Funds’ Company’s financial performance. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ Company’s normal course of business, results of operations, investments, and cash flows will
depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.
2. Significant Accounting Policies
The accompanying financial statements were prepared in
accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from
those estimates. Each Fund is an investment company and follows accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The NAV for
financial reporting purposes may differ from the NAV for processing security and shareholder transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is
computed based on the NAV used for processing security and shareholder transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Compensation
The Trust pays no compensation directly to those of its
directors who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board has adopted a deferred compensation plan for independent directors that
enables directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested
in shares of select Nuveen-advised funds.
Distributions to Shareholders
Distributions to shareholders are recorded on the ex-dividend
date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications
Under the Trust’s organizational documents, its officers
and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other
parties. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Investments and Investment Income
Securities transactions are accounted for as of the trade date
for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when information is
available. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded at fair value. Interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting
purposes and is recorded on an accrual basis. Interest income also reflects payment-in-kind ("PIK") interest and fee income, if any. PIK interest represents income received in the form of securities in lieu of cash. Securities lending income is
comprised of fees earned from borrowers and income earned on cash collateral investments.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly
attributable to a specific class of shares are prorated among the classes based on the relative net assets each class. Expenses directly attributable to a class of shares are recorded to the specific class. 12b-1 distribution and service fees are
allocated on a class-specific basis.
Sub-transfer agent
fees and similar fees, which are recognized as a component of “Shareholder servicing agent fees” on the Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on their relative net
assets.
Realized and unrealized capital gains and losses
of the Funds are prorated among the classes based on the relative net assets of each class.
Netting Agreements
In the ordinary course of business, the Funds may enter into
transactions subject to enforceable 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 4 - Portfolio Securities and Investments in Derivatives.
New Accounting Pronouncements and Rule Issuances
Fair Value Measurement: Disclosure Framework
During August 2018, the FASB issued Accounting Standards Update
("ASU") 2018-13 (“ASU 2018-13”), Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 modifies the
disclosures required by Topic 820, Fair Value Measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2019. Management has early implemented this guidance and it did not have a material impact on the Funds' financial statements.
Reference Rate Reform
In March 2020, FASB issued ASU 2020-04, Reference Rate Reform:
Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when
participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only change to existing contracts are a change to
an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December
31, 2022. Management has not yet elected to apply the amendments, but is currently assessing the impact of the ASU’s adoption to the Funds’ financial statements and various filings.
3. Investment Valuation and Fair Value
Measurements
The fair valuation input levels as described
below are for fair value measurement purposes.
The Funds'
investments in securities are recorded at their estimated fair value. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal
or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification
Notes to Financial Statements (Unaudited) (continued)
of fair value measurements for disclosure purposes. Observable inputs reflect
the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own
assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of
valuation input levels.
Level 1
– Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2
– Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3
– Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
Common stocks and other equity-type securities are valued at
the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the Nasdaq National Market ("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 quoted bid
price and are generally classified as Level 2.
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.
Investments in investment companies are valued at their
respective NAVs on the valuation date and are generally classified as Level 1.
Certain securities may not be able to be priced by the
pre-established pricing methods as described above. Such securities may be valued by the 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 an independent pricing service ("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:
Mid
Cap Growth Opportunities |
Level
1 |
Level
2 |
Level
3 |
Total
|
Long-Term
Investments*: |
|
|
|
|
Common
Stocks |
$325,968,737
|
$ —
|
$ —
|
$325,968,737
|
Investments
Purchased with Collateral from Securities Lending |
6,317,677
|
—
|
—
|
6,317,677
|
Short-Term
Investments: |
|
|
|
|
Money
Market Funds |
3,976,296
|
—
|
—
|
3,976,296
|
Total
|
$336,262,710
|
$ —
|
$ —
|
$336,262,710
|
Small
Cap Growth Opportunities |
Level
1 |
Level
2 |
Level
3 |
Total
|
Long-Term
Investments*: |
|
|
|
|
Common
Stocks |
$180,851,901
|
$ —
|
$
591** |
$180,852,492
|
Exchange-Traded
Funds |
4,899,239
|
—
|
—
|
4,899,239
|
Investments
Purchased with Collateral from Securities Lending |
3,858,037
|
—
|
—
|
3,858,037
|
Total
|
$189,609,177
|
$ —
|
$
591 |
$189,609,768
|
*
|
Refer to the
Fund's Portfolio of Investments for industry classifications. |
**
|
Refer
to the Fund's Portfolio of Investments for securities classified as Level 3. |
4. Portfolio Securities and Investments in Derivatives
Securities Lending
In order to generate additional income, each Fund may lend
securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, each Fund retains the benefits of owning the
securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
Each Fund’s policy is to receive, at the inception of a
loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan
is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at
the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on
the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time
at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Fund securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned
securities, the Fund has the right to use the collateral to acquire identical securities. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Fund. Under the Funds’
securities lending agreement, however, the securities lending agent has indemnified the Fund against losses resulting from borrower default, except to the extent that those losses result from a decrease in the value of the collateral due to its
investment by the Funds. The Funds bear the risk of loss with respect to the investment of collateral.
The Funds’ custodian, U.S. Bank National Association,
serves as their securities lending agent. Income earned from the securities lending program is paid to the Funds. Income from securities lending, is recognized as “Securities lending income” on the Statement of Operations.
The following table presents the securities out on loan for the
following Funds, and the collateral delivered related to those securities, as of the end of the reporting period.
Fund
|
Asset
Class out on Loan |
Long-Term
Investments, at Value |
Collateral
Pledged (From) Counterparty* |
Net
Exposure |
Mid
Cap Growth Opportunities |
Common
Stocks |
$5,932,841
|
$(5,932,841)
|
$ —
|
Small
Cap Growth Opportunities |
Common
Stocks |
$3,715,032
|
$(3,715,032)
|
$ —
|
* As of the end of the reporting
period, the value of the collateral pledged from the counterparty exceeded the value of the securities out on loan. Refer to the Fund’s Portfolio of Investments for details on the securities out on loan.
InvestmentTransactions
Long-term purchases and sales (excluding investments purchased
with collateral from securities lending) during the current fiscal period were as follows:
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Purchases
|
$130,214,280
|
$108,863,002
|
Sales
|
201,519,416
|
132,276,115
|
The Funds may purchase securities
on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market
fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/ delayed-delivery purchase commitments. If a Fund has outstanding
when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.
Investments in Derivatives
Each Fund is authorized to invest in certain derivative
instruments. 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.
Although the Funds are authorized to invest in derivative
instruments, and may do so in the future, they did not make any such investments during the current fiscal period.
Notes to Financial Statements (Unaudited) (continued)
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in
financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss
could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap
transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering
into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to
pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
5. Fund Shares
Transactions in Fund shares during the current and prior fiscal
period were as follows:
|
Six
Months Ended 4/30/20 |
|
Year
Ended 10/31/19 |
Mid
Cap Growth Opportunities |
Shares
|
Amount
|
|
Shares
|
Amount
|
Shares
sold: |
|
|
|
|
|
Class
A |
181,268
|
$
5,026,466 |
|
381,375
|
$
12,098,040 |
Class
A – automatic conversion of Class C Shares |
583
|
17,452
|
|
998
|
34,101
|
Class
C |
30,039
|
483,579
|
|
47,996
|
973,428
|
Class
R3 |
75,966
|
1,812,135
|
|
161,505
|
4,630,162
|
Class
R6 |
29,634
|
1,119,889
|
|
75,575
|
3,119,375
|
Class
I |
273,455
|
10,273,369
|
|
606,951
|
24,565,020
|
Shares
issued to shareholders due to reinvestment of distributions: |
|
|
|
|
|
Class
A |
1,279,600
|
36,289,441
|
|
1,226,272
|
33,170,652
|
Class
C |
105,468
|
1,707,529
|
|
99,901
|
1,794,220
|
Class
R3 |
202,069
|
5,055,764
|
|
184,336
|
4,530,984
|
Class
R6 |
107,409
|
4,121,288
|
|
230,398
|
7,948,731
|
Class
I |
561,023
|
21,178,645
|
|
1,034,993
|
35,272,553
|
|
2,846,514
|
87,085,557
|
|
4,050,300
|
128,137,266
|
Shares
redeemed: |
|
|
|
|
|
Class
A |
(747,320)
|
(21,541,111)
|
|
(1,803,821)
|
(58,701,202)
|
Class
C |
(67,368)
|
(1,200,572)
|
|
(186,840)
|
(3,953,792)
|
Class
C – automatic conversion to Class A Shares |
(979)
|
(17,452)
|
|
(1,478)
|
(34,101)
|
Class
R3 |
(247,869)
|
(6,223,994)
|
|
(385,941)
|
(11,739,558)
|
Class
R6 |
(98,358)
|
(4,064,564)
|
|
(946,169)
|
(35,233,404)
|
Class
I |
(1,337,421)
|
(51,564,046)
|
|
(5,199,942)
|
(209,884,823)
|
|
(2,499,315)
|
(84,611,739)
|
|
(8,524,191)
|
(319,546,880)
|
Net
increase (decrease) |
347,199
|
$
2,473,818 |
|
(4,473,891)
|
$(191,409,614)
|
|
Six
Months Ended 4/30/20 |
|
Year
Ended 10/31/19 |
Small
Cap Growth Opportunities |
Shares
|
Amount
|
|
Shares
|
Amount
|
Shares
sold: |
|
|
|
|
|
Class
A |
55,586
|
$
1,135,828 |
|
86,241
|
$
1,757,412 |
Class
A – automatic conversion of Class C Shares |
76
|
1,647
|
|
86
|
1,959
|
Class
C |
9,771
|
138,470
|
|
25,260
|
374,828
|
Class
R3 |
8,031
|
158,610
|
|
68,017
|
1,198,396
|
Class
R6 |
273,080
|
7,172,986
|
|
397
|
10,095
|
Class
I |
879,886
|
22,852,376
|
|
5,485,979
|
138,575,880
|
Shares
issued to shareholders due to reinvestment of distributions: |
|
|
|
|
|
Class
A |
—
|
—
|
|
278,640
|
4,940,279
|
Class
C |
—
|
—
|
|
29,198
|
373,153
|
Class
R3 |
—
|
—
|
|
10,176
|
167,910
|
Class
R6 |
—
|
—
|
|
54,751
|
1,183,722
|
Class
I |
—
|
—
|
|
186,946
|
4,026,813
|
|
1,226,430
|
31,459,917
|
|
6,225,691
|
152,610,447
|
Shares
redeemed: |
|
|
|
|
|
Class
A |
(142,214)
|
(3,072,783)
|
|
(279,297)
|
(5,605,855)
|
Class
C |
(22,824)
|
(345,006)
|
|
(64,540)
|
(982,334)
|
Class
C – automatic conversion to Class A Shares |
(107)
|
(1,647)
|
|
(113)
|
(1,959)
|
Class
R3 |
(10,761)
|
(210,125)
|
|
(68,171)
|
(1,262,093)
|
Class
R6 |
(176,255)
|
(4,861,755)
|
|
(568,741)
|
(14,947,424)
|
Class
I |
(1,899,385)
|
(46,311,231)
|
|
(943,081)
|
(23,224,527)
|
|
(2,251,546)
|
(54,802,547)
|
|
(1,923,943)
|
(46,024,192)
|
Net
increase (decrease) |
(1,025,116)
|
$(23,342,630)
|
|
4,301,748
|
$106,586,255
|
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 income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies. Therefore, no federal income tax provision is required.
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 recognizing certain gains and losses on investment transactions. To the
extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the
NAVs of the Funds.
The table below presents the cost and
unrealized appreciation (depreciation) of each Fund's investment portfolio, as determined on a federal income tax basis, as of April 30, 2020.
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Tax
cost of investments |
$285,121,385
|
$169,135,530
|
Gross
unrealized: |
|
|
Appreciation
|
$
67,469,512 |
$
32,356,358 |
Depreciation
|
(16,328,187)
|
(11,882,120)
|
Net
unrealized appreciation (depreciation) of investments |
$
51,141,325 |
$
20,474,238 |
Permanent differences, primarily due to net operating losses,
tax equalization and federal taxes paid, resulted in reclassifications among the Funds' components of net assets as of October 31, 2019, the Funds' last tax year end.
The tax components of undistributed net ordinary income and net
long-term capital gains as of October 31, 2019, the Funds' last tax year end, were as follows:
Notes to Financial Statements (Unaudited) (continued)
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Undistributed
net ordinary income1 |
$
— |
$ —
|
Undistributed
net long-term capital gains |
73,785,007
|
—
|
1 |
Net ordinary
income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
The tax character of distributions paid during the
Funds’ last tax year ended October 31, 2019 was designated for purposes of the dividends paid deduction as follows:
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Distributions
from net ordinary income1 |
$14,130,332
|
$
2,671,096 |
Distributions
from net long-term capital gains |
76,399,215
|
10,863,365
|
1 |
Net
ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
As of October 31, 2019, the Funds' last tax year end, the
following Fund had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
|
Small
Cap Growth Opportunities |
Not
subject to expiration: |
|
Short-term
|
$674,567
|
Long-term
|
—
|
Total
|
$674,567
|
The Funds have elected to defer
late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the current fiscal year. The Funds have elected to defer losses as follows:
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Post-October
capital losses2 |
$
— |
$
— |
Late-year
ordinary losses3 |
951,826
|
616,369
|
2 |
Capital
losses incurred from November 1, 2018 through October 31, 2019, the Funds' last tax year end. |
3 |
Ordinary
losses incurred from January 1, 2019 through October 31, 2019 and/or specified losses incurred from November 1, 2018 through October 31, 2019. |
7. Management Fees and Other Transactions with
Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for
the overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components
– a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each
Fund’s 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 Net Assets |
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
For
the first $125 million |
0.6000%
|
0.6500%
|
For
the next $125 million |
0.5875
|
0.6375
|
For
the next $250 million |
0.5750
|
0.6250
|
For
the next $500 million |
0.5625
|
0.6125
|
For
the next $1 billion |
0.5500
|
0.6000
|
For
the next $3 billion |
0.5250
|
0.5750
|
For
the next $2.5 billion |
0.5000
|
0.5500
|
For
the next $2.5 billion |
0.4875
|
0.5375
|
For
net assets over $10 billion |
0.4750
|
0.5250
|
The annual complex-level fee,
payable monthly, for each Fund is determined by taking the complex-level fee rate, which is based on the aggregate amount of "eligible assets" of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment
to that rate based upon the percentage of the particular fund's assets that are not "eligible assets". The complex-level fee schedule for each Fund is as follows:
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
|
*
The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen open-end and closed-end funds. Eligible assets do not include assets attributable to investments in other Nuveen
funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do
include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to
certain types of leverage. For these purposes, leverage includes the closed-end 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 eligible assets in certain circumstances. As of April 30, 2020, the complex-level fee for each Fund was as follows:
Fund
|
Complex-Level
Fee |
Mid
Cap Growth Opportunities |
0.2000%
|
Small
Cap Growth Opportunities |
0.1864%
|
The Adviser has agreed to waive
fees and/or reimburse expenses (“Expense Cap”) of each Fund so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in
acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed the percentages of the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table. However,
because Class R6 Shares are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. The expense limitation in effect thereafter may be terminated
or modified only with the approval of the Board.
Fund
|
Expense
Cap |
Expense
Cap Expiration Date |
Mid
Cap Growth Opportunities |
0.92%
|
July
31, 2021 |
Small
Cap Growth Opportunities |
0.99%
|
July
31, 2021 |
Notes to Financial Statements (Unaudited) (continued)
Other Transactions with Affiliates
During February 2020, the Funds began receiving voluntary
compensation from the Adviser in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if the Adviser had purchased the research services directly. This income received by the Funds
is recognized as “Payment from affiliate” on the Statement of Operations.
During the current fiscal period, the Distributor, collected
sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Sales
charges collected |
$29,683
|
$4,559
|
Paid
to financial intermediaries |
26,500
|
3,978
|
The Distributor also received 12b-1
service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the current fiscal period, the Distributor compensated
financial intermediaries directly with commission advances at the time of purchase as follows:
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
Commission
advances |
$3,146
|
$858
|
To compensate for commissions
advanced to financial intermediaries, all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the current fiscal period, the Distributor retained such
12b-1 fees as follows:
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
12b-1
fees retained |
$1,132
|
$1,021
|
The remaining 12b-1 fees charged to
each Fund were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share
redemptions during the current fiscal period, as follows:
|
Mid
Cap Growth Opportunities |
Small
Cap Growth Opportunities |
CDSC
retained |
$ —
|
$1,057
|
8. Borrowing
Arrangements
Committed Line of Credit
The Fund, along with certain other funds managed by the Adviser
(“Participating Funds”), have established a 364-day, $2.65 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. Each
Participating Fund is allocated a designated proportion of the facility’s capacity (and its associated costs, as described below) based upon a multi-factor assessment of the likelihood and frequency of its need to draw on the facility, the
size of the Fund and its anticipated draws, and the potential importance of such draws to the operations and well-being of the Fund, relative to those of the other Funds. A Fund may effect draws on the facility in excess of its designated capacity
if and to the extent that other Participating Funds have undrawn capacity. The credit facility expires in June 2020 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per
annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. Participating Funds paid
administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the
relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, Mid Cap Growth Opportunities utilized this
facility for nineteen days. The Fund’s utilization period (days outstanding), average daily balance outstanding and average annual interest rate during the utilization period(s) was 1 day, $7,300,000 and 2.76%, respectively. The Fund’s
maximum outstanding daily balance during the utilization period was $7,300,000. Borrowings outstanding as of the end of the reporting period, if any, are recognized as "Borrowings" on the Statement of Assets and Liabilities.
During the current fiscal period, Small Cap Growth
Opportunities did not utilize this facility.
9. Subsequent Events
Expense Cap
During May 2020, the Board approved an extension of the Expense
Cap limitation for both Mid Cap Growth Opportunities and Small Cap Growth Opportunities to July 31, 2022.
Committed Line of Credit
During June 2020, the Participating Funds renewed the standby
credit facility through June 2021. In conjunction with this renewal the commitment amount decreased from $2.65 billion to $2.405 billion and the interest rate increased from LIBOR plus 1.00% to LIBOR plus 1.25%. The Participating Funds also incurred
a 0.10% upfront fee. All other terms remain unchanged.
Additional Fund Information
Investment Adviser
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Independent Registered
Public Accounting Firm
PricewaterhouseCoopers LLP
One North Wacker Drive
Chicago, IL 60606
Custodian
U.S. Bank National Association
1555 North RiverCenter Drive
Suite 302
Milwaukee, WI 53212
Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
Transfer Agent and
Shareholder Services
DST Asset Manager
Solutions, Inc. (DST)
P.O. Box 219140
Kansas City, MO 64121-9140
(800) 257-8787
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 as an exhibit to its report on Form N-PORT.
You may obtain this information on the SEC's website at http://www.sec.gov.
Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen
toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by
calling Nuveen toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
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.FINRA.org.
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.
Lipper Mid-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Growth Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions
but do not reflect any applicable sales charges.
Lipper Small-Cap Growth Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Growth Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of
distributions but do not reflect any applicable sales charges.
Market Capitalization: The
market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV
per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 2000® Index: An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index
representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The index returns assume
reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Russell Midcap® Index: An index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap
Index measures the performance of the smallest 800 companies in the Russell 1000® Index. The index returns assume reinvestment of distributions, but
do not reflect any applicable sales charges or management fees.
Tax Equalization: The
practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as
the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
Liquidity Risk Management Program
Discussion
of the operation and effectiveness of the Funds’ liquidity risk management program
In compliance with Rule 22e-4 under the Investment Company Act
of 1940, as amended (the “Liquidity Rule”), each Fund covered in this Report (the “Funds”) has adopted and implemented a liquidity risk management program (the “Program”), which is designed to manage the
Fund’s liquidity risk. The Program consists of various protocols for assessing and managing each Fund’s liquidity risk. The Funds’ Board of Trustees previously designated Nuveen Fund Advisors, LLC, the Funds’ investment
adviser, as the Administrator of the Program. The adviser’s Liquidity Monitoring and Analysis Team (“LMAT”) carries out day-to-day Program management with oversight by the adviser’s Liquidity Oversight Sub-Committee (the
LOSC”). The LOSC is composed of personnel from the adviser and Teachers Advisors, LLC, an affiliate of the adviser.
At a May 20, 2020 meeting of the Board, the Administrator
provided the Board with a written report addressing the Program’s operation, adequacy and effectiveness of implementation for calendar year 2019 (the “Review Period”), as required under the Liquidity Rule. The report noted that the
Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to each Fund’s liquidity developments.
In accordance with the Program, the LMAT assesses each
Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash
equivalents, borrowing arrangements, and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four
liquidity categories (including the most liquid, “Highly Liquid”, and the least liquid, “Illiquid”, discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the
investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and
investment-specific considerations, as well as market depth, and use third-party vendor data.
Any Fund that does not primarily hold highly liquid
investments must, among other things, determine a minimum percentage of Fund assets that must be invested in highly liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, each Fund primarily held Highly
Liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.
The Liquidity Rule also limits a Fund’s investments in
Illiquid investments. Specifically, the Liquidity Rule prohibits a Fund from acquiring Illiquid investments if doing so would result in the Fund holding more than 15% of its net assets in Illiquid investments, and requires certain reporting to the
Fund Board and the Securities and Exchange Commission any time a Fund’s holdings of Illiquid investments exceeds 15% of net assets. During the Review Period, no Fund exceeded the 15% limit on Illiquid investments.
Nuveen:
Serving Investors for Generations
Since 1898, financial professionals 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 professional, 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/mutual-funds
Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive |
Chicago, IL 60606 | www.nuveen.com MSA-FCGO-0420P1210963-INV-B-06/21
Nuveen Equity Funds
Fund
Name |
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Nuveen
Large Cap Select Fund |
FLRAX
|
FLYCX
|
—
|
—
|
FLRYX
|
Nuveen
Small Cap Select Fund |
EMGRX
|
FHMCX
|
ASEIX
|
ASEFX
|
ARSTX
|
Beginning on January 1, 2021, as permitted by regulations
adopted by the Securities and Exchange Commission, paper copies of the Funds' annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made
available on the Funds' website (www.nuveen.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports
electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting the financial intermediary (such as a
broker-dealer or bank) through which you hold your Fund shares or, if you are a direct investor, by enrolling at www.nuveen.com/e-reports.
You may elect to receive all future shareholder reports in
paper free of charge at any time by contacting your financial intermediary or, if you are a direct investor, by calling 800-257-8787 and selecting option #1. Your election to receive reports in paper will apply to all funds held in your account with
your financial intermediary or, if you are a direct investor, to all your directly held Nuveen Funds and any other directly held funds within the same group of related investment companies.
Life is Complex.
Nuveen makes things e-simple.
It only takes a minute to sign up for
e-Reports. Once enrolled, you’ll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you
wish.
Free e-Reports right to your
e-mail!
www.investordelivery.com
If you receive your Nuveen Fund
distributions and statements from your financial professional or brokerage account.
or
www.nuveen.com/client-access
If you receive your Nuveen Fund
distributions and statements directly from Nuveen.
Must be preceded by or accompanied by a
prospectus.
NOT FDIC INSURED MAY
LOSE VALUE NO BANK GUARANTEE
Chair’s Letter to Shareholders
Dear Shareholders,
The COVID-19 crisis is taking an unprecedented toll on our
health, societies, economies and financial markets. Our thoughts are with all whose lives have been affected by the disease and its economic fallout. With some regions of the world having appeared to “flatten the curve” of infections,
governments and public health officials are now facing the extraordinary challenge of balancing the resumption of economic activity with public safety, in a way that minimizes the potential for a second wave of outbreaks. Markets have turned their
focus to the potential for an economic recovery the timing and magnitude of which remain highly uncertain. Elevated market volatility is likely to continue, with economic data, coronavirus infection rates and the upcoming U.S. presidential election
under scrutiny.
While we do not want to understate the
dampening effect on the global economy, it is important to differentiate short term interruptions from the longer-lasting implications to the economy. Some areas of the global economy were already on the mend prior to the coronavirus epidemic.
Temporary bans on movement and travel are being lifted, and some near-term economic indicators have shown modest improvement in countries that have reopened. Central banks and governments around the world have announced economic stimulus measures
and pledged to continue doing what it takes to support their economies. In the U.S., the Federal Reserve has cut its benchmark interest rate to near zero and introduced programs that helped revive the U.S. economy after the 2008 financial crisis.
The U.S. Government has approved three relief packages, including a $2 trillion-dollar package directly supporting businesses and individuals. The Coronavirus Aid, Relief and Economic Security Act, called the CARES Act, provides direct payments and
expanded unemployment benefits to individuals, loans and grants to small businesses, loans and other money to large corporations and funding for hospitals, public health, education and state and local governments.
In the meantime, patience and a long-term perspective are key
for investors. When market fluctuations are the leading headlines day after day, it’s tempting to “do something.” However, your long-term goals can’t be met with short-term thinking. We encourage you to talk to your financial
professional, who can review your time horizon, risk tolerance and investment goals. 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
Chair of the Board
June 23, 2020
Portfolio Managers’
Comments
Nuveen Large Cap Select
Fund
Nuveen Small Cap Select Fund
These Funds feature portfolio management by Nuveen Asset
Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Fund’s investment adviser.
David Chalupnik, CFA, and Evan Staples, CFA, are the portfolio
managers for the Nuveen Large Cap Select Fund. David assumed portfolio management responsibilities in 2003 and Evan joined the portfolio management team for the Fund in 2017.
Gregory Ryan, CFA, and Jon Loth, CFA, are the portfolio
managers for the Nuveen Small Cap Select Fund. Greg assumed portfolio management responsibilities in 2013 and Jon joined the portfolio management team for the Fund in 2019.
On the following pages, the portfolio management teams for the
Funds discuss key investment strategies and the Funds’ performance for the six-month reporting period ended April 30, 2020.
An Update on COVID-19 Coronavirus and its Impact on the
Securities Markets
With daily new COVID-19 coronavirus
cases now slowing across much of the world, economies are beginning to reopen and movement bans are easing. The focus is shifting to whether the resumption of activity triggers a second wave of infections and how quickly economies may rebound. Early
indications, first from China, South Korea and Hong Kong, and more recently from various U.S. states that opened their economies earlier and more thoroughly than others, showed there is a risk of new infection outbreaks. Economic indicators have
begun to reflect the severe supply and demand disruptions resulting from the shutdowns, and a more prolonged recovery looks more likely than a rapid snap-back to growth.
Although the detection of the virus in China was made public
in December 2019, markets did not start to fully acknowledge the risks and potential economic impact until the latter portion of February 2020, when outbreaks outside of China were first reported. Global stock markets sold off severely, with the
S&P 500® index reaching a bear market (a 20% drop from the previous high) within three weeks, the fastest bear market decline in history. Even
certain parts of the bond market suffered; below investment grade municipal and corporate bonds generally dropped the furthest, mostly out of concerns for the continued financial stability of lower quality issuers. Demand for safe-haven assets,
along with mounting recession fears, drove the yield on the 10-year U.S. Treasury note to 0.5% in March 2020, an all-time low. Additionally, oil prices collapsed to an 18-year low on supply glut concerns, as shutdowns across the global economy
sharply reduced oil demand, although oil prices have recovered to well above those lows..
Central banks and governments have responded with liquidity
injections to ease the strain on financial systems and stimulus measures to buffer the shock to businesses and consumers. These measures have helped stabilize the markets over the short term, and most markets have recovered most of their losses. But
volatility will likely remain elevated until the health crisis itself is under control (via fewer new cases, lower infection rates and/or verified treatments or vaccines). There are still many unknowns and new information is incoming daily,
compounding the difficulty of modeling outcomes for epidemiologists and economists alike.
Nuveen, LLC and our portfolio management teams are monitoring
the situation carefully and continuously refining our views and approaches to managing the Funds to best pursue investment objectives while mitigating risks through all market environments.
This material is not intended to be a recommendation or investment advice,
does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular
investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
Certain statements in this report are forward-looking
statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of
the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other
factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Refer to the Glossary of Terms Used in this Report for further
definition of the terms used within this section.
Portfolio Managers’ Comments (continued)
Nuveen Large Cap Select Fund
How did the Fund perform during the six-month reporting period
ended April 30, 2020?
The tables in the Fund Performance
and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended April 30, 2020. Comparative performance information is provided for the Fund’s Class A Shares at net
asset value (NAV) only. The Fund’s Class A Shares at NAV underperformed the S&P 500® and the Lipper Large-Cap Core Funds Classification
Average during the six-month reporting period.
What
strategies were used to manage the Fund during the reporting period and how did these strategies influence performance?
The Fund pursues long-term capital appreciation by investing
primarily in the common stocks of companies that have market capitalizations of $5 billion or greater at the time of purchase. During the reporting period, we continued to employ our deep, rigorous research approach to find and invest in stocks that
we believed had strong and/or improving fundamentals, attractive valuations and a catalyst to drive future performance. Our process focuses on constructing a portfolio that we believe offers the best opportunity to achieve superior, risk-adjusted
returns over the long term. During the six-month reporting period, we took on a more defensive posture compared to the Fund’s history; however, overall positioning remained fairly neutral. We reduced the Fund’s exposure in industrials by
about 3%, financials by 2% and real estate by 2%. We ended the reporting period underweight in all three of these sectors. Additionally, we increased consumer discretionary exposure by 5% and are now overweight in the sector. We also increased the
Fund’s weighting in utilities by adding 2% to the sector. At the end of the reporting period, the Fund’s largest overweights versus the S&P
500® benchmark were in the health care and communication services sectors, while its largest underweights were in industrials and energy.
The Fund’s underperformance versus the S&P 500® benchmark and Lipper peers was primarily the result of stock selection in the financial, information technology and consumer discretionary sectors. On
the other hand, the Fund saw favorable results from security selection in the health care and real estate sectors.
The financial sector as a whole was one of the hardest hit
during the reporting period as credit risks escalated after numerous businesses were forced to shut down across the nation in an attempt to curb the COVID-19 crisis. Stock selection in the sector was the most significant detractor in the Fund,
including a position in Capital One Financial Corp, one of the largest bank holding companies in the U.S. specializing in credit cards, auto loans, banking and savings accounts. The company reported impressive results when it released fourth-quarter
2019 earnings earlier in the reporting period. However, Capital One detracted because of stress on the consumer credit markets as many local businesses closed down and laid off workers during March 2020. Despite the poor stock performance during the
reporting period, we continued to hold the position because we believe the company’s underwriting discipline is among the best in the business.
Along with many other banks, Citigroup Inc. underperformed
because of the impact from materially lower interest rates and fears of write-downs on loan products. Prior to the economic headwinds, Citigroup had posted strong fourth-quarter 2019 earnings showing strength in its Institutional Clients Group and
improved credit quality. We continued to hold Citigroup in the Fund’s portfolio because we believe the company is well positioned for a rebound in the financial markets.
The Fund also saw weak results from Hartford Financial
Services Group Inc., a provider of commercial and personal property and casualty insurance as well as wealth management products. The worker’s compensation business is facing headwinds with added claims related to the COVID-19 crisis, coupled
with lost premiums due to rising unemployment. However, on the positive side, the company’s auto insurance business is expected to benefit with fewer cars on the road due to business shutdowns. The integration of specialty insurer Navigators
Group has also been improving Hartford Financial’s underwriting margins and remains a long-term catalyst for the business. We continued to hold this position in our portfolio.
In addition, financial services provider Charles Schwab
Corporation underperformed as the COVID-19 crisis hit the sector hard. The Federal Reserve’s rate cut to near zero negatively impacted Schwab’s net interest income. We no longer hold this position in the Fund’s portfolio.
In the information technology sector, the only detractor of
note was the Fund’s underweight position in software product and service developer Microsoft Corp, which represents close to a 5% weighting in the benchmark. Microsoft recorded a strong earnings beat with the company continuing to build
momentum in the cloud as its Azure product took market share from market leader Amazon Web Services (AWS). However, Microsoft faces increased pressure in 2020 as it competes with some of the world’s largest technology companies for market
share. For these and other reasons, we decided to sell our stake in the company.
Although technology detracted from performance overall, the
sector was home to two standouts. Chip supplier NVIDIA Corp was one of the Fund’s strongest performing companies, reporting earnings above estimates driven by its data center products. While results in the company’s gaming products
segment missed expectations slightly, the broader gaming industry trends remained strong. NVIDIA’s diversified product portfolio continues to give it exposure to multiple high growth industries. For example, the company announced a partnership
with Tencent to bring cloud gaming to China, the largest gaming market globally. We continued to hold this position in the portfolio.
Another top performer in the information technology sector was
ServiceNow Inc., an enterprise cloud computing solution provider. The company reported a solid first quarter 2020 across the board as subscription revenues were strong and it continued to close deals despite coronavirus headwinds. Many companies
have actually accelerated their digital transformation in response to disruptions in their business, benefiting ServiceNow. Although the stock fell as the COVID-19 crisis shook the market, the price recovered because investors remained confident in
the business. We continued to hold ServiceNow in the Fund’s portfolio.
The consumer discretionary sector detracted mainly because our
travel and leisure-related holdings were negatively impacted by the temporary closures of resorts and casinos due to the COVID-19 crisis. Within the sector, the Fund’s most significant laggards were Wynn Resorts Limited, a high-end hotel and
casino operator, and Wyndham Destinations Inc., the world’s largest vacation ownership company. Prior to the COVID-19 crisis, Wynn Resorts had announced improving demand trends in China’s gaming enclave of Macau. However, given the level
of uncertainty around when travel would return to pre-virus levels, we exited this position in March 2020. In terms of Wyndham Destinations, the company was forced to cancel all reservations until May 2020. Despite expectations for a slow return to
travel, Wyndham’s management believes the company will have positive cash flows for the year. We believe this factor, coupled with an already strong balance sheet, is setting the company up for success despite being in an industry with many
headwinds. We continued to hold a position in the company.
On the positive side in the consumer discretionary sector, the
Fund’s position in Amazon.com Inc. contributed during the reporting period. This multi-national technology company has broad exposure across e-commerce, cloud computing, digital streaming and artificial intelligence. Consumers flocked to the
online giant to stock up on essentials during the shelter-at-home orders. The company reported quarterly sales of $87.4 billion, exceeding the top end of its guidance and consensus expectations. We continued to own Amazon in the Fund’s
portfolio.
Within the energy sector, Permian basin shale
drilling company Parsley Energy Inc. detracted. The oil industry was hammered as demand dropped precipitously due to the shutdowns related to the COVID-19 crisis, while a price war erupted between Russia and Saudi Arabia that added to an already
existing supply glut. The price of crude fell to multi-decade lows. When Parsley Energy reported earnings, it lowered capital expenditures on the same production outlook, which boosted free cash flow. While the fundamentals of its business are
typically strong, the industry faces many headwinds due to drastically declining oil prices. Therefore, we decided to exit the Fund’s position in Parsley Energy.
The industrial sector was home to one laggard of note, Stanley
Black & Decker Inc., a leading global tool and hardware manufacturer. During the early stages of the COVID-19 crisis, the stock price was hit hard after the company’s chief financial officer announced that Chinese production facilities
were operating at around half of their normal capacity. These facilities made up a little under half of the overall production for the manufacturer. Because of these supply chain issues, we decided to exit our position in Stanley Black & Decker
and reduce the Fund’s overall exposure to the industrial sector.
During this difficult and volatile period, the health care
sector was the standout performer in the index and the Fund’s holdings outpaced the sector. However, the majority of the outperformance occurred prior to the COVID-19 induced sell-off. Although health care was not immune from losses during the
sell-off, the defensive nature of the sector helped the group hold up better than the overall market. In particular, several of the Fund’s managed care holdings, which included Humana Inc., Cigna Corporation and UnitedHealth
Portfolio Managers’ Comments (continued)
Group Inc., benefited from regulatory commentary out of Washington that was
better than feared, which caused a rally in the sector. We continued to hold positions in Humana, Cigna and UnitedHealth at the end of the reporting period.
Also in health care, the Fund benefited from positions in two
pharmaceutical firms, Gilead Sciences Inc. and Vertex Pharmaceuticals Inc. Gilead Sciences is a leader in the development and marketing of anti-infective drugs with approved products for the treatment of HIV/AIDS, hepatitis C, hepatitis B and
pulmonology diseases. Shares benefited from the COVID-19 crisis as the company worked on remdesivir, an experimental antiviral drug that is supposed to help treat symptoms of the virus. Results from the first clinical trial should be released during
the second quarter 2020. We sold the Fund's holding in Gilead Sciences at the end of the reporting period. Shares of Vertex Pharmaceuticals initially rallied based on the FDA’s early approval of its drug Trikafta for treating cystic fibrosis,
which subsequently hit the market with impressive sales. The company also reported phenomenal quarterly results with earnings well exceeding expectations. Along with the proven success of Trikafta, Vertex Pharmaceuticals has a pipeline of other
products to help propel future growth. We continued to hold the company in the portfolio.
Nuveen Small Cap Select Fund
How did the Fund perform during the six-month reporting period
ended April 30, 2020?
The tables in the Fund Performance
and Expense Ratios section of this report provide total returns for the Fund for the six-month, one-year, five-year and ten-year periods ended April 30, 2020. Comparative performance information is provided for the Fund’s Class A Shares at net
asset value (NAV) only. The Fund’s Class A Shares at NAV outperformed the Russell 2000® Index and the Lipper Small-Cap Core Funds
Classification Average during the six-month reporting period.
What strategies were used to manage the Fund during the reporting
period and how did these strategies influence performance?
The Fund seeks to provide long-term capital appreciation by
investing primarily in the common stocks of companies with market capitalizations of $40.0 million to $10.3 billion at the time of purchase, which is based on the most recent annual reconstitution of the Russell 2000® Index that occurred on June 28, 2019. During the reporting period, we continued to focus on building a well-diversified portfolio of small-cap stocks
from companies with strengthening balance sheets and free cash flow characteristics. We also continued to target companies with sound business models and strong competitive advantages that we believe can gain market share opportunistically in the
current environment. We remained committed to our approach of investing in quality companies that are trading at a discount to both intrinsic and relative value metrics.
The Fund’s outperformance versus the Russell benchmark
and Lipper peers was primarily due to stock selection in the industrials, information technology and health care sectors. The technology sector had a number of standouts, driven largely by the Fund’s overweight positioning in companies with
recurring revenue models in the software and IT services industries. Shares of Everbridge Inc., a company that provides critical communications and enterprise software applications to help organizations and governments respond to critical events,
rose strongly. The company benefited from the launch of its COVID-19 Shield Software to help customers navigate the safety, supply and cost aspects of dealing with the crisis. We continued to own Everbridge in the Fund’s portfolio.
The Fund also saw favorable results from a position in MACOM
Technology Solutions Holdings Inc., a provider of analog semiconductor solutions for use in wireless and wireline applications. The company is a leading supplier of optical and networking connectivity chip solutions for higher transmission speeds in
the datacenter and telecommunication markets. Shares rallied after new management delivered on restructuring cost benefits, demonstrated by operating profit recovery from around breakeven levels in 2019 toward the mid-to-high teen level as a
percentage of sales in 2020 estimates. In addition, the datacenter investment growth recovery has provided a strong end market tailwind. We maintained the Fund’s position.
Also in technology, performance was enhanced by Lattice
Semiconductor Corp, a designer and developer of programmable logic products. Lattice has benefited as the addressable market it serves for its specialized chips has doubled, driven by secular growth tailwinds in 5G, edge artificial intelligence and
security. The company’s recent fundamental momentum has remained intact, with in-line first-quarter 2020 results in a challenged macro backdrop and forward guidance suggesting continued growth in the Computing and Communication markets and
higher gross margin expectations. We believe the company’s mix of higher margin end markets will contribute more strongly as new product architectures (Nexus) also start ramping up moving forward.
In addition, the Fund saw solid results from Lumentum Holdings
Inc., a leading supplier of optical and photonic components for telecommunication, data communication and industrial applications worldwide. The company reported strong revenue results coming in well above expectations. Lumentum also benefited from
synergies gained from its Oclaro acquisition, which together helped to drive operating margins to 27%, nearly 4% above expectations. We continued to own Lumentum at the end of the reporting period.
In the health care sector, the Fund experienced strength from
several pharmaceutical firms, including Horizon Therapeutics Plc, which focuses on treatments for orphan diseases (a condition that affects fewer than 200,000 people). Horizon has several drugs on the market that generate more than $1.2 billion in
revenue. During the reporting period, shares advanced strongly after the company reported third-quarter 2019 earnings that beat expectations and an FDA panel recommended the approval of teprotumumab in December 2019. Also, we initiated a position in
biotechnology concern Momenta Pharmaceuticals Inc., an emerging developer of therapeutics for immune-regulated conditions, which subsequently performed well. Shares surged following promising early-stage data for a drug designed to treat an
autoimmune condition called immune thrombocytopenic purpura, a disease that attacks platelet cells. We continue to hold both positions.
In the medical technology group, shares of AtriCure Inc. were
particularly strong. At a major early-year investor conference, management signaled that data for a promising new atrial fibrillation technology would be presented at a key upcoming medical meeting. We continued to hold AtriCure in the portfolio.
Also in the medical technology group, the Fund benefited from Wright Medical Group NV, a manufacturer of medical devices and equipment for the treatment of musculoskeletal disorders. In November 2019, Stryker announced an agreement to acquire Wright
Medical in an all-cash transaction, causing us to exit the position.
The Fund also saw favorable results from several names that
were seen as potential small-cap beneficiaries of the COVID-19 crisis including LHC Group Inc. This home nursing company is seen as a key player in caring for vulnerable patient populations outside of the hospital. Prestige Consumer Healthcare Inc.
is an over-the-counter (OTC) specialty pharmaceutical company focused on brand name solutions for acute health care issues. All of Prestige Consumer’s primary distribution channels remained open during the COVID-19 crisis, plus the focus of
some of its OTC product portfolio may marginally benefit. We continue to maintain both positions.
The Fund’s stock selection detracted in the financial,
energy and consumer discretionary sectors. The Fund’s financial services holdings bore the brunt of the COVID-19 downdraft, which brought relatively indiscriminate selling among regional banking shares and companies levered to consumer credit
and housing finance. Shares of MFA Financial Inc. were pummeled after the mortgage real estate investment trust (REIT) encountered uncertainties over the health of its balance sheet and the integrity of its dividend. Although we believed the firm
was stronger than others in the group, we sold our shares because we assumed the dividend would ultimately be cut and the company would need to consider forbearance agreements. Similarly, Radian Financial Inc., with its exposure to mortgage
insurance, became a less desirable investment alternative as we considered the likelihood of a substantial gap in home buying, despite low interest rates. Therefore, we sold the position. On the other hand, the Fund’s insurance holdings fared
well by comparison, particularly eHealth Inc., a private health insurance exchange enabling choice in the Medicare Advantage market. Partway through Medicare’s annual enrollment, insurance broker data suggested that the company would
dramatically exceed its +40% consensus revenue target and expand on its meager 1.5% market share, suggesting considerable growth potential in the years ahead. We continued to maintain the Fund’s position in eHealth.
The energy sector was also a source of weakness in the Fund.
The oil industry was hammered as demand dropped precipitously due to the shutdowns related to the COVID-19 crisis, while a price war erupted between Russia and Saudi Arabia that added to an already existing supply glut. The price of West Texas
Intermediate (WTI) crude fell to an 18-year low of around $20 per barrel. We believed the domestic energy market would have a lasting negative impact from the dramatic supply/demand imbalance. As a result, we reduced the Fund’s energy exposure
by selling shares of two of the Fund’s weaker performers, Cactus Inc., a leading wellhead manufacturer, and Matador Resources Company, a Permian-focused oil producer.
In consumer discretionary, two of the Fund’s specialty
retail positions underperformed. Lease-to-own company Aaron’s Inc. saw its shares decline following fourth-quarter 2019 results that included lower-than-expected guidance stemming from lease portfolio characteristics, incremental investments
and weakness in the consumer electronics category. We continued to believe that write-offs would be contained and that lease-to-own will be an attractive alternative for a growing number of consumers coming out of the crisis. Also in the leisure
sector, shares of Callaway Golf Company underperformed during the reporting period after sales of its clothing brand
Portfolio Managers’ Comments (continued)
Jack Wolfskin were adversely impacted and its Asia Pacific golf club supply
chain came into question. We are encouraged by early indications of improved volumes in the Asia Pacific region and believe that these trends may begin to gradually make their way across Europe and North America as the year progresses. We maintained
the Fund’s positions in both Aaron’s and Callaway Golf.
As the economy shut down across the country, companies with
higher leverage profiles and more protracted outlooks for recovery underperformed. Earlier in the reporting period, Penn National Gaming Inc. benefited from strong state-level gaming trends and the closure of its investment in Barstool Sports.
However, shares fell after the company announced broad-based casino closures giving rise to liquidity concerns, which led us to sell the Fund’s position.
Finally, in the consumer discretionary area, shares of Papa
John’s International Inc. aided the Fund’s performance. The pizza chain held up better and recovered more quickly as investors began to consider the benefit to take out and delivery during the shelter-in-place environment. The
quick-service pizza chain had a strong digital ordering platform and the capability for take-out orders while other restaurants were closed. We sold the Fund’s position in Papa John’s after the stock’s strong advance.
While typically defensive in nature, the Fund’s real
estate exposure did not hold up well by comparison largely due to its position in Summit Hotel Properties Inc., a REIT focused on hotels and lodging. While shares declined substantially in the face of dwindling occupancy and travel, we continued to
hold our position in light of the company’s high quality management team and its focus on value-based property acquisition and management.
In the industrial sector, the Fund saw poor results from
Harsco Corporation, a specialty environmental services company with a presence in clean earth, rail, health care and the environment. Shares slumped after the company pre-released weaker volumes and slightly lower cash flow guidance, causing us to
sell the Fund’s position.
Nuveen
Large Cap Select Fund
Mutual fund investing involves
risk; principal loss is possible. Equity investments, such as those held by the Fund, are subject to market risk, derivatives risk, and common stock risk. Foreign investments involve additional risks including currency fluctuations, political and
economic instability, and lack of liquidity. These risks are magnified in emerging markets.
Nuveen Small Cap Select Fund
Mutual fund investing involves risk; principal loss is
possible. There is no guarantee the Fund’s investment objectives will be achieved. Prices of equity securities may decline significantly over short or extended periods of time. Investments in smaller companies are subject to greater volatility than those of larger companies. Non-U.S. investments involve risks such as currency fluctuation, political and economic
instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. These and other risk considerations, such as derivatives and growth stock risks, are
described in the Fund’s prospectus.
THIS PAGE INTENTIONALLY LEFT BLANK
Fund Performance and Expense Ratios
The Fund
Performance and Expense Ratios for each Fund are shown within this section of the report.
Fund Performance
Returns quoted represent past performance, which is no guarantee
of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the
performance shown.
Total returns for a period of
less than one year are not annualized (i.e. cumulative returns). Since inception returns are shown for share classes that have less than 10-years of performance. Returns at net asset value (NAV) would be lower if the sales charge were included.
Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit nuveen.com or call (800) 257-8787.
Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund Shares.
Returns may reflect fee waivers and/or expense reimbursements
by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with
Affiliates for more information.
Returns reflect
differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided
for Class A Shares at NAV only.
Expense Ratios
The expense ratios shown are as of the Fund's most recent
prospectus. The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any). The expense ratios include management fees and other fees and expenses.
Fund Performance and Expense Ratios (continued)
Nuveen Large Cap Select Fund
Refer
to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this
section.
Fund Performance and Expense Ratios
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
10-Year
|
|
Gross
|
Net
|
Class
A Shares at NAV |
1/31/03
|
(4.87)%
|
|
(2.59)%
|
7.94%
|
10.25%
|
|
1.20%
|
1.06%
|
Class
A Shares at maximum Offering Price |
1/31/03
|
(10.33)%
|
|
(8.19)%
|
6.67%
|
9.60%
|
|
—
|
—
|
S&P
500® Index |
—
|
(3.16)%
|
|
0.86%
|
9.12%
|
11.69%
|
|
—
|
—
|
Lipper
Large-Cap Core Funds Classification Average |
—
|
(4.31)%
|
|
(1.14)%
|
7.43%
|
10.18%
|
|
—
|
—
|
Class
C Shares |
1/31/03
|
(5.21)%
|
|
(3.33)%
|
7.14%
|
9.43%
|
|
1.95%
|
1.81%
|
Class
I Shares |
1/31/03
|
(4.74)%
|
|
(2.34)%
|
8.21%
|
10.52%
|
|
0.95%
|
0.81%
|
*
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales
charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten
years after purchase. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
**
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through July 31, 2022, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees,
interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.80% of the average daily net assets of any class of Fund shares. This expense
limitation may be terminated or modified prior to that date only with the approval of the Board of Directors of the Fund.
Nuveen Small Cap Select Fund
Refer
to the first page of this Fund Performance and Expense Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this
section.
Fund Performance and Expense Ratios
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
5-Year
|
10-Year
|
|
Gross
|
Net
|
Class
A Shares at NAV |
5/06/92
|
(15.19)%
|
|
(14.85)%
|
3.06%
|
7.28%
|
|
1.42%
|
1.24%
|
Class
A Shares at maximum Offering Price |
5/06/92
|
(20.06)%
|
|
(19.76)%
|
1.84%
|
6.65%
|
|
—
|
—
|
Russell
2000® Index |
—
|
(15.47)%
|
|
(16.39)%
|
2.88%
|
7.69%
|
|
—
|
—
|
Lipper
Small-Cap Core Funds Classification Average |
—
|
(19.34)%
|
|
(19.88)%
|
0.83%
|
6.36%
|
|
—
|
—
|
Class
C Shares |
9/24/01
|
(15.51)%
|
|
(15.51)%
|
2.27%
|
6.48%
|
|
2.17%
|
1.99%
|
Class
R3 Shares |
1/03/94
|
(15.28)%
|
|
(15.16)%
|
2.79%
|
7.01%
|
|
1.68%
|
1.49%
|
Class
I Shares |
5/06/92
|
(14.98)%
|
|
(14.66)%
|
3.31%
|
7.56%
|
|
1.17%
|
0.99%
|
|
Total
Returns as of April 30, 2020* |
|
|
|
|
Cumulative
|
|
Average
Annual |
|
Expense
Ratios** |
|
Inception
Date |
6-Month
|
|
1-Year
|
Since
Inception |
|
Gross
|
Net
|
Class
R6 Shares |
2/28/18
|
(14.91)%
|
|
(14.50)%
|
(3.96)%
|
|
1.03%
|
0.85%
|
*
Class A Shares have a maximum 5.75% sales charge (Offering Price). Class A Shares purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales
charge (CDSC) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the total returns. Class C Shares automatically convert to Class A Shares ten
years after purchase. Class R3 Shares have no sales charge and are only available for purchase by eligible retirement plans. Class R6 Shares have no sales charge and are available only to certain limited categories as described in the prospectus.
Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
**
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse expenses through July 31, 2021, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expense,
taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed 0.99% of the average daily net assets of any class of Fund shares. However, because Class R6 Shares
are not subject to sub-transfer agent and similar fees, the total annual Fund operating expenses for the Class R6 Shares will be less than the expense limitation. The expense limitation may be terminated or modified prior to that date only with the
approval of the Board of Directors of the Fund.
Holding Summaries as of April 30, 2020
This data relates to the securities held in each Fund's
portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Nuveen Large Cap Select Fund
Fund
Allocation (% of net assets) |
|
Common
Stocks |
100.1%
|
Money
Market Funds |
0.1%
|
Other
Assets Less Liabilities |
(0.2)%
|
Net
Assets |
100%
|
Portfolio
Composition (% of net assets) |
|
Interactive
Media & Services |
9.6%
|
Health
Care Providers & Services |
9.4%
|
Semiconductors
& Semiconductor Equipment |
8.5%
|
Internet
& Direct Marketing Retail |
8.0%
|
IT
Services |
7.8%
|
Software
|
5.7%
|
Biotechnology
|
5.2%
|
Insurance
|
4.0%
|
Electric
Utilities |
4.0%
|
Pharmaceuticals
|
3.9%
|
Capital
Markets |
2.9%
|
Beverages
|
2.4%
|
Multiline
Retail |
2.4%
|
Tobacco
|
2.3%
|
Wireless
Telecommunication Services |
2.2%
|
Specialty
Retail |
2.2%
|
Other
|
19.6%
|
Money
Market Funds |
0.1%
|
Other
Assets Less Liabilities |
(0.2)%
|
Net
Assets |
100%
|
Top
Five Common Stock Holdings (% of net assets) |
|
Amazoncom
Inc |
6.5%
|
Alphabet
Inc |
5.4%
|
Facebook
Inc |
4.2%
|
Mastercard
Inc |
3.9%
|
UnitedHealth
Group Inc |
3.6%
|
Nuveen Small Cap Select Fund
Fund
Allocation (% of net assets) |
|
Common
Stocks |
98.7%
|
Exchange-Traded
Funds |
1.0%
|
Money
Market Funds |
1.2%
|
Other
Assets Less Liabilities |
(0.9)%
|
Net
Assets |
100%
|
Portfolio
Composition (% of net assets) |
|
Banks
|
8.5%
|
Equity
Real Estate Investment Trust |
7.1%
|
Software
|
6.7%
|
Biotechnology
|
6.7%
|
Pharmaceuticals
|
5.1%
|
Health
Care Equipment & Supplies |
4.1%
|
Semiconductors
& Semiconductor Equipment |
4.0%
|
IT
Services |
2.8%
|
Machinery
|
2.8%
|
Commercial
Services & Supplies |
2.7%
|
Food
Products |
2.6%
|
Household
Durables |
2.5%
|
Capital
Markets |
2.5%
|
Construction
& Engineering |
2.4%
|
Gas
Utilities |
2.4%
|
Hotels,
Restaurants & Leisure |
2.4%
|
Chemicals
|
2.2%
|
Building
Products |
2.2%
|
Insurance
|
2.1%
|
Health
Care Technology |
2.0%
|
Multi-Utilities
|
1.7%
|
Textiles,
Apparel & Luxury Goods |
1.6%
|
Specialty
Retail |
1.6%
|
Electrical
Equipment |
1.5%
|
Other
|
19.5%
|
Money
Market Funds |
1.2%
|
Other
Assets Less Liabilities |
(0.9)%
|
Net
Assets |
100%
|
Top
Five Common Stock Holdings (% of net assets) |
|
Horizon
Therapeutics Plc |
2.6%
|
Lattice
Semiconductor Corp |
2.1%
|
MAXIMUS
Inc |
1.9%
|
MACOM
Technology Solutions Holdings Inc |
1.9%
|
STAG
Industrial Inc |
1.9%
|
As a
shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution
and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in
other mutual funds.
The Examples below are based on an
investment of $1,000 invested at the beginning of the period and held through the period ended April 30, 2020.
The beginning of the period is November 1, 2019.
The information under “Actual Performance,”
together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by
the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,”
provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The
hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do
so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the following tables
are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different
funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Large Cap Select Fund
|
Share
Class |
|
Class
A |
Class
C |
Class
I |
Actual
Performance |
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$
951.25 |
$
947.94 |
$
952.60 |
Expenses
Incurred During the Period |
$
5.53 |
$
9.15 |
$
4.32 |
Hypothetical
Performance (5% annualized return before expenses) |
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,019.19
|
$1,015.47
|
$1,020.44
|
Expenses
Incurred During the Period |
$
5.72 |
$
9.47 |
$
4.47 |
For each class of the Fund, expenses are equal to the Fund's
annualized net expense ratio of 1.14%, 1.89%, and 0.89% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Nuveen Small Cap Select Fund
|
Share
Class |
|
Class
A |
Class
C |
Class
R3 |
Class
R6 |
Class
I |
Actual
Performance |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$
848.15 |
$
844.87 |
$
847.18 |
$
850.91 |
$
850.18 |
Expenses
Incurred During the Period |
$
5.70 |
$
9.13 |
$
6.84 |
$
3.82 |
$
4.55 |
Hypothetical
Performance (5% annualized return before expenses) |
|
|
|
|
|
Beginning
Account Value |
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
$1,000.00
|
Ending
Account Value |
$1,018.70
|
$1,014.97
|
$1,017.45
|
$1,020.74
|
$1,019.94
|
Expenses
Incurred During the Period |
$
6.22 |
$
9.97 |
$
7.47 |
$
4.17 |
$
4.97 |
For each class of the Fund, expenses are equal to the
Fund’s annualized net expense ratio of 1.24%, 1.99%, 1.49%, 0.83% and 0.99% for Classes A, C, R3, R6 and I, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year
period).
Nuveen Large Cap Select Fund
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
LONG-TERM
INVESTMENTS – 100.1% |
|
|
|
|
|
|
COMMON
STOCKS – 100.1% |
|
|
|
|
|
|
Aerospace
& Defense – 2.0% |
|
|
|
|
4,228
|
|
L3Harris
Technologies Inc |
|
|
|
$
818,964 |
|
|
Banks – 1.4%
|
|
|
|
|
12,007
|
|
Citigroup
Inc |
|
|
|
583,060
|
|
|
Beverages – 2.4%
|
|
|
|
|
10,692
|
|
Keurig
Dr Pepper Inc |
|
|
|
282,910
|
11,055
|
|
Monster
Beverage Corp, (2) |
|
|
|
683,310
|
|
|
Total
Beverages |
|
|
|
966,220
|
|
|
Biotechnology – 5.2%
|
|
|
|
|
11,891
|
|
AbbVie
Inc |
|
|
|
977,440
|
1,530
|
|
Biogen
Inc, (2) |
|
|
|
454,150
|
2,592
|
|
Vertex
Pharmaceuticals Inc, (2) |
|
|
|
651,110
|
|
|
Total
Biotechnology |
|
|
|
2,082,700
|
|
|
Capital
Markets – 2.9% |
|
|
|
|
13,981
|
|
Bank
of New York Mellon Corp |
|
|
|
524,847
|
16,527
|
|
Morgan
Stanley |
|
|
|
651,659
|
|
|
Total
Capital Markets |
|
|
|
1,176,506
|
|
|
Chemicals – 1.0%
|
|
|
|
|
14,578
|
|
CF
Industries Holdings Inc |
|
|
|
400,895
|
|
|
Communications
Equipment – 1.5% |
|
|
|
|
4,091
|
|
Motorola
Solutions Inc |
|
|
|
588,327
|
|
|
Consumer
Finance – 1.1% |
|
|
|
|
7,094
|
|
Capital
One Financial Corp |
|
|
|
459,407
|
|
|
Diversified
Financial Services – 0.9% |
|
|
|
|
7,889
|
|
Voya
Financial Inc |
|
|
|
356,346
|
|
|
Diversified
Telecommunication Services – 1.0% |
|
|
|
|
7,197
|
|
Verizon
Communications Inc |
|
|
|
413,468
|
|
|
Electric
Utilities – 4.0% |
|
|
|
|
8,996
|
|
American
Electric Power Co Inc |
|
|
|
747,658
|
22,752
|
|
Exelon
Corp |
|
|
|
843,644
|
|
|
Total
Electric Utilities |
|
|
|
1,591,302
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Equity
Real Estate Investment Trust – 1.7% |
|
|
|
|
4,270
|
|
Crown
Castle International Corp |
|
|
|
$
680,766 |
|
|
Food
Products – 1.8% |
|
|
|
|
11,988
|
|
Tyson
Foods Inc |
|
|
|
745,534
|
|
|
Health
Care Providers & Services – 9.4% |
|
|
|
|
6,756
|
|
Cigna
Corp |
|
|
|
1,322,689
|
2,618
|
|
Humana
Inc |
|
|
|
999,605
|
4,991
|
|
UnitedHealth
Group Inc |
|
|
|
1,459,718
|
|
|
Total
Health Care Providers & Services |
|
|
|
3,782,012
|
|
|
Hotels,
Restaurants & Leisure – 1.0% |
|
|
|
|
15,519
|
|
Wyndham
Destinations Inc |
|
|
|
396,821
|
|
|
Household
Durables – 1.2% |
|
|
|
|
34,438
|
|
Newell
Brands Inc |
|
|
|
477,999
|
|
|
Insurance – 4.0%
|
|
|
|
|
5,568
|
|
Allstate
Corp |
|
|
|
566,377
|
14,953
|
|
Hartford
Financial Services Group Inc |
|
|
|
568,064
|
4,844
|
|
Marsh
& McLennan Cos Inc |
|
|
|
471,467
|
|
|
Total
Insurance |
|
|
|
1,605,908
|
|
|
Interactive
Media & Services – 9.6% |
|
|
|
|
1,622
|
|
Alphabet
Inc, (2) |
|
|
|
2,184,347
|
8,171
|
|
Facebook
Inc, (2) |
|
|
|
1,672,686
|
|
|
Total
Interactive Media & Services |
|
|
|
3,857,033
|
|
|
Internet
& Direct Marketing Retail – 8.0% |
|
|
|
|
2,936
|
|
Alibaba
Group Holding Ltd, Sponsored ADR |
|
|
|
595,039
|
1,059
|
|
Amazoncom
Inc, (2) |
|
|
|
2,619,966
|
|
|
Total
Internet & Direct Marketing Retail |
|
|
|
3,215,005
|
|
|
IT
Services – 7.8% |
|
|
|
|
11,480
|
|
Fiserv
Inc, (2) |
|
|
|
1,183,129
|
6,841
|
|
GDS
Holdings Ltd, ADR |
|
|
|
392,126
|
5,743
|
|
Mastercard
Inc |
|
|
|
1,579,153
|
|
|
Total
IT Services |
|
|
|
3,154,408
|
|
|
Media – 1.4%
|
|
|
|
|
21,775
|
|
Altice
USA Inc, (2) |
|
|
|
565,497
|
|
|
Mortgage
Real Estate Investment Trust – 0.5% |
|
|
|
|
17,334
|
|
AGNC
Investment Corp |
|
|
|
215,288
|
|
|
Multiline
Retail – 2.4% |
|
|
|
|
8,792
|
|
Target
Corp |
|
|
|
964,834
|
Nuveen Large Cap Select Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Multi-Utilities – 1.8%
|
|
|
|
|
9,250
|
|
Dominion
Energy Inc |
|
|
|
$
713,452 |
|
|
Pharmaceuticals – 3.9%
|
|
|
|
|
16,129
|
|
AstraZeneca
PLC, Sponsored ADR |
|
|
|
843,224
|
12,186
|
|
Bristol-Myers
Squibb Co |
|
|
|
741,031
|
|
|
Total
Pharmaceuticals |
|
|
|
1,584,255
|
|
|
Road
& Rail – 1.3% |
|
|
|
|
3,934
|
|
Kansas
City Southern |
|
|
|
513,584
|
|
|
Semiconductors
& Semiconductor Equipment – 8.5% |
|
|
|
|
20,393
|
|
Intel
Corp |
|
|
|
1,223,172
|
3,051
|
|
NVIDIA
Corp |
|
|
|
891,746
|
5,890
|
|
NXP
Semiconductors NV |
|
|
|
586,467
|
13,368
|
|
Taiwan
Semiconductor Manufacturing Co Ltd, Sponsored ADR |
|
|
|
710,242
|
|
|
Total
Semiconductors & Semiconductor Equipment |
|
|
|
3,411,627
|
|
|
Software – 5.7%
|
|
|
|
|
1,872
|
|
Adobe
Inc, (2) |
|
|
|
662,014
|
3,338
|
|
Proofpoint
Inc, (2) |
|
|
|
406,335
|
4,257
|
|
salesforcecom
Inc, (2) |
|
|
|
689,421
|
1,567
|
|
ServiceNow
Inc, (2) |
|
|
|
550,863
|
|
|
Total
Software |
|
|
|
2,308,633
|
|
|
Specialty
Retail – 2.2% |
|
|
|
|
4,017
|
|
Home
Depot Inc |
|
|
|
883,057
|
|
|
Tobacco – 2.3%
|
|
|
|
|
12,186
|
|
Philip
Morris International Inc |
|
|
|
909,076
|
|
|
Wireless
Telecommunication Services – 2.2% |
|
|
|
|
10,133
|
|
T-Mobile
US Inc, (2) |
|
|
|
889,677
|
|
|
Total
Long-Term Investments (cost $36,434,708) |
|
|
|
40,311,661
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
SHORT-TERM
INVESTMENTS – 0.1% |
|
|
|
|
|
|
MONEY
MARKET FUNDS – 0.1% |
|
|
|
|
40,676
|
|
First
American Treasury Obligation Fund, Class Z |
0.134%
(3) |
|
|
$
40,676 |
|
|
Total
Short-Term Investments (cost $40,676) |
|
|
|
40,676
|
|
|
Total
Investments (cost $36,475,384) – 100.2% |
|
|
|
40,352,337
|
|
|
Other
Assets Less Liabilities – (0.2)% |
|
|
|
(80,916)
|
|
|
Net
Assets – 100% |
|
|
|
$
40,271,421 |
|
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)
|
The
rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
|
ADR
|
American
Depositary Receipt |
|
See accompanying notes to financial statements.
Nuveen Small Cap Select Fund
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
LONG-TERM
INVESTMENTS – 99.7% |
|
|
|
|
|
|
COMMON
STOCKS – 98.7% |
|
|
|
|
|
|
Aerospace
& Defense – 1.3% |
|
|
|
|
62,524
|
|
Kratos
Defense & Security Solutions Inc, (2) |
|
|
|
$
939,111 |
|
|
Air
Freight & Logistics – 1.4% |
|
|
|
|
20,983
|
|
Hub
Group Inc, (2) |
|
|
|
1,009,492
|
|
|
Airlines – 0.7%
|
|
|
|
|
16,529
|
|
Alaska
Air Group Inc, (2) |
|
|
|
537,523
|
|
|
Auto
Components – 1.2% |
|
|
|
|
39,970
|
|
Cooper
Tire & Rubber Co |
|
|
|
846,964
|
|
|
Banks – 8.5%
|
|
|
|
|
22,994
|
|
Banner
Corp |
|
|
|
883,659
|
54,090
|
|
Home
BancShares Inc/AR |
|
|
|
829,200
|
22,316
|
|
Preferred
Bank/Los Angeles CA |
|
|
|
851,355
|
43,304
|
|
Renasant
Corp |
|
|
|
1,135,864
|
61,562
|
|
Sterling
Bancorp/DE |
|
|
|
759,060
|
24,880
|
|
Western
Alliance Bancorp |
|
|
|
892,694
|
22,870
|
|
Wintrust
Financial Corp |
|
|
|
958,253
|
|
|
Total
Banks |
|
|
|
6,310,085
|
|
|
Biotechnology – 6.7%
|
|
|
|
|
9,076
|
|
ACADIA
Pharmaceuticals Inc, (2) |
|
|
|
438,461
|
12,372
|
|
Arena
Pharmaceuticals Inc, (2) |
|
|
|
605,857
|
4,449
|
|
Ascendis
Pharma A/S, Sponsored ADR |
|
|
|
603,863
|
7,135
|
|
Blueprint
Medicines Corp, (2) |
|
|
|
419,752
|
6,448
|
|
Emergent
BioSolutions Inc, (2) |
|
|
|
476,830
|
17,597
|
|
Fate
Therapeutics Inc, (2) |
|
|
|
481,806
|
5,986
|
|
Global
Blood Therapeutics Inc, (2) |
|
|
|
458,049
|
14,140
|
|
Iovance
Biotherapeutics Inc, (2) |
|
|
|
454,601
|
22,038
|
|
Momenta
Pharmaceuticals Inc, (2) |
|
|
|
698,605
|
8,418
|
|
Zymeworks
Inc, (2) |
|
|
|
307,509
|
|
|
Total
Biotechnology |
|
|
|
4,945,333
|
|
|
Building
Products – 2.2% |
|
|
|
|
12,391
|
|
CSW
Industrials Inc |
|
|
|
820,780
|
16,935
|
|
Gibraltar
Industries Inc, (2) |
|
|
|
784,090
|
|
|
Total
Building Products |
|
|
|
1,604,870
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Capital
Markets – 2.5% |
|
|
|
|
19,559
|
|
Evercore
Inc |
|
|
|
$1,009,244 |
15,436
|
|
Piper
Sandler Cos |
|
|
|
832,155
|
|
|
Total
Capital Markets |
|
|
|
1,841,399
|
|
|
Chemicals – 2.2%
|
|
|
|
|
34,796
|
|
Kraton
Corp, (2) |
|
|
|
543,166
|
47,876
|
|
PolyOne
Corp |
|
|
|
1,115,032
|
|
|
Total
Chemicals |
|
|
|
1,658,198
|
|
|
Commercial
Services & Supplies – 2.7% |
|
|
|
|
21,276
|
|
Casella
Waste Systems Inc, (2) |
|
|
|
986,781
|
12,897
|
|
Tetra
Tech Inc |
|
|
|
970,886
|
|
|
Total
Commercial Services & Supplies |
|
|
|
1,957,667
|
|
|
Communications
Equipment – 1.3% |
|
|
|
|
12,224
|
|
Lumentum
Holdings Inc, (2) |
|
|
|
989,044
|
|
|
Construction
& Engineering – 2.4% |
|
|
|
|
26,498
|
|
MasTec
Inc, (2) |
|
|
|
951,278
|
28,451
|
|
MYR
Group Inc, (2) |
|
|
|
853,530
|
|
|
Total
Construction & Engineering |
|
|
|
1,804,808
|
|
|
Construction
Materials – 0.9% |
|
|
|
|
45,668
|
|
Summit
Materials Inc, (2) |
|
|
|
690,043
|
|
|
Electrical
Equipment – 1.5% |
|
|
|
|
15,673
|
|
Regal
Beloit Corp |
|
|
|
1,112,940
|
|
|
Electronic
Equipment, Instruments & Components – 1.3% |
|
|
|
|
32,910
|
|
Methode
Electronics Inc |
|
|
|
987,958
|
|
|
Equity
Real Estate Investment Trust – 7.1% |
|
|
|
|
91,430
|
|
Brandywine
Realty Trust |
|
|
|
1,020,359
|
46,269
|
|
CareTrust
REIT Inc |
|
|
|
762,513
|
47,792
|
|
Industrial
Logistics Properties Trust |
|
|
|
893,232
|
52,596
|
|
STAG
Industrial Inc |
|
|
|
1,380,645
|
191,584
|
|
Summit
Hotel Properties Inc |
|
|
|
1,160,999
|
|
|
Total
Equity Real Estate Investment Trust |
|
|
|
5,217,748
|
|
|
Food
& Staples Retailing – 1.0% |
|
|
|
|
26,179
|
|
Performance
Food Group Co, (2) |
|
|
|
768,354
|
|
|
Food
Products – 2.6% |
|
|
|
|
44,104
|
|
Nomad
Foods Ltd, (2) |
|
|
|
908,984
|
7,603
|
|
Sanderson
Farms Inc |
|
|
|
1,035,072
|
|
|
Total
Food Products |
|
|
|
1,944,056
|
Nuveen Small Cap Select Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Gas
Utilities – 2.4% |
|
|
|
|
16,500
|
|
Southwest
Gas Holdings Inc |
|
|
|
$1,250,700 |
7,445
|
|
Spire
Inc |
|
|
|
543,187
|
|
|
Total
Gas Utilities |
|
|
|
1,793,887
|
|
|
Health
Care Equipment & Supplies – 4.1% |
|
|
|
|
16,632
|
|
AtriCure
Inc, (2) |
|
|
|
717,172
|
28,569
|
|
Establishment
Labs Holdings Inc, (2) |
|
|
|
499,386
|
5,053
|
|
Penumbra
Inc, (2) |
|
|
|
895,998
|
17,703
|
|
Tactile
Systems Technology Inc, (2) |
|
|
|
913,829
|
|
|
Total
Health Care Equipment & Supplies |
|
|
|
3,026,385
|
|
|
Health
Care Providers & Services – 1.2% |
|
|
|
|
6,542
|
|
LHC
Group Inc, (2) |
|
|
|
850,395
|
|
|
Health
Care Technology – 2.0% |
|
|
|
|
67,261
|
|
Change
Healthcare Inc, (2) |
|
|
|
782,918
|
6,624
|
|
Livongo
Health Inc, (2) |
|
|
|
265,026
|
2,649
|
|
Teladoc
Health Inc, (2) |
|
|
|
435,999
|
|
|
Total
Health Care Technology |
|
|
|
1,483,943
|
|
|
Hotels,
Restaurants & Leisure – 2.4% |
|
|
|
|
16,295
|
|
Jack
in the Box Inc |
|
|
|
982,588
|
17,109
|
|
Texas
Roadhouse Inc, (2) |
|
|
|
805,663
|
|
|
Total
Hotels, Restaurants & Leisure |
|
|
|
1,788,251
|
|
|
Household
Durables – 2.5% |
|
|
|
|
41,572
|
|
La-Z-Boy
Inc |
|
|
|
974,863
|
16,487
|
|
Meritage
Homes Corp, (2) |
|
|
|
866,557
|
|
|
Total
Household Durables |
|
|
|
1,841,420
|
|
|
Insurance – 2.1%
|
|
|
|
|
7,375
|
|
eHealth
Inc, (2) |
|
|
|
786,913
|
7,397
|
|
Primerica
Inc |
|
|
|
768,622
|
|
|
Total
Insurance |
|
|
|
1,555,535
|
|
|
IT
Services – 2.8% |
|
|
|
|
21,392
|
|
MAXIMUS
Inc |
|
|
|
1,440,109
|
68,427
|
|
Verra
Mobility Corp, (2) |
|
|
|
613,106
|
|
|
Total
IT Services |
|
|
|
2,053,215
|
|
|
Leisure
Products – 1.1% |
|
|
|
|
58,346
|
|
Callaway
Golf Co |
|
|
|
835,515
|
|
|
Life
Sciences Tools & Services – 0.7% |
|
|
|
|
4,295
|
|
Repligen
Corp, (2) |
|
|
|
498,864
|
|
|
Machinery – 2.8%
|
|
|
|
|
38,384
|
|
Altra
Industrial Motion Corp |
|
|
|
1,071,298
|
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Machinery
(continued) |
|
|
|
|
25,278
|
|
SPX
Corp, (2) |
|
|
|
$
963,850 |
|
|
Total
Machinery |
|
|
|
2,035,148
|
|
|
Media – 1.1%
|
|
|
|
|
11,997
|
|
Nexstar
Media Group Inc |
|
|
|
840,270
|
|
|
Mortgage
Real Estate Investment Trust – 0.8% |
|
|
|
|
72,269
|
|
Ladder
Capital Corp |
|
|
|
574,539
|
|
|
Multiline
Retail – 0.5% |
|
|
|
|
17,872
|
|
Nordstrom
Inc, (2) |
|
|
|
335,636
|
|
|
Multi-Utilities – 1.7%
|
|
|
|
|
20,326
|
|
Black
Hills Corp |
|
|
|
1,258,992
|
|
|
Paper
& Forest Products – 1.3% |
|
|
|
|
49,079
|
|
Louisiana-Pacific
Corp |
|
|
|
981,580
|
|
|
Pharmaceuticals – 5.1%
|
|
|
|
|
24,131
|
|
Aerie
Pharmaceuticals Inc, (2), (3) |
|
|
|
367,756
|
52,519
|
|
Horizon
Therapeutics Plc, (2) |
|
|
|
1,892,785
|
2,665
|
|
MyoKardia
Inc, (2) |
|
|
|
167,415
|
22,276
|
|
Prestige
Consumer Healthcare Inc, (2) |
|
|
|
906,411
|
2,624
|
|
Reata
Pharmaceuticals Inc, (2) |
|
|
|
415,012
|
|
|
Total
Pharmaceuticals |
|
|
|
3,749,379
|
|
|
Road
& Rail – 1.3% |
|
|
|
|
25,924
|
|
Knight-Swift
Transportation Holdings Inc |
|
|
|
963,854
|
|
|
Semiconductors
& Semiconductor Equipment – 4.0% |
|
|
|
|
69,592
|
|
Lattice
Semiconductor Corp, (2) |
|
|
|
1,566,516
|
45,909
|
|
MACOM
Technology Solutions Holdings Inc, (2) |
|
|
|
1,407,570
|
|
|
Total
Semiconductors & Semiconductor Equipment |
|
|
|
2,974,086
|
|
|
Software – 6.7%
|
|
|
|
|
5,700
|
|
Everbridge
Inc, (2) |
|
|
|
634,866
|
16,033
|
|
J2
Global Inc, (2) |
|
|
|
1,292,901
|
20,555
|
|
Rapid7
Inc, (2) |
|
|
|
936,280
|
18,717
|
|
RealPage
Inc, (2) |
|
|
|
1,207,060
|
49,141
|
|
Sailpoint
Technologies Holdings Inc, (2) |
|
|
|
913,531
|
|
|
Total
Software |
|
|
|
4,984,638
|
|
|
Specialty
Retail – 1.6% |
|
|
|
|
13,912
|
|
Aaron's
Inc |
|
|
|
443,932
|
38,547
|
|
Boot
Barn Holdings Inc, (2) |
|
|
|
711,578
|
|
|
Total
Specialty Retail |
|
|
|
1,155,510
|
Nuveen Small Cap Select Fund (continued)
Portfolio of Investments April 30, 2020
(Unaudited)
Shares
|
|
Description
(1) |
|
|
|
Value
|
|
|
Textiles,
Apparel & Luxury Goods – 1.6% |
|
|
|
|
5,567
|
|
Deckers
Outdoor Corp, (2) |
|
|
|
$828,147 |
33,131
|
|
G-III
Apparel Group Ltd, (2) |
|
|
|
375,374
|
|
|
Total
Textiles, Apparel & Luxury Goods |
|
|
|
1,203,521
|
|
|
Trading
Companies & Distributors – 1.4% |
|
|
|
|
20,085
|
|
Applied
Industrial Technology, Inc |
|
|
|
1,052,253
|
|
|
Total
Common Stocks (cost $71,816,393) |
|
|
|
73,002,409
|
Shares
|
|
Description
(1), (4) |
|
|
|
Value
|
|
|
EXCHANGE-TRADED
FUNDS – 1.0% |
|
|
|
|
7,612
|
|
SPDR
S&P Biotech ETF |
|
|
|
$
710,885 |
|
|
Total
Exchange-Traded Funds (cost $588,576) |
|
|
|
710,885
|
|
|
Total
Long-Term Investments (cost $72,404,969) |
|
|
|
73,713,294
|
Shares
|
|
Description
(1) |
Coupon
|
|
|
Value
|
|
|
SHORT-TERM
INVESTMENTS – 1.2% |
|
|
|
|
|
|
MONEY
MARKET FUNDS – 1.2% |
|
|
|
|
918,332
|
|
First
American Treasury Obligation Fund, Class Z |
0.134%
(5) |
|
|
$
918,332 |
|
|
Total
Short-Term Investments (cost $918,332) |
|
|
|
918,332
|
|
|
Total
Investments (cost $73,323,301) – 100.9% |
|
|
|
74,631,626
|
|
|
Other
Assets Less Liabilities – (0.9)% |
|
|
|
(697,731)
|
|
|
Net
Assets – 100% |
|
|
|
$
73,933,895 |
|
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 a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $364,068. |
|
(4)
|
A
copy of the most recent financial statements for the exchange-traded funds in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov. |
|
(5)
|
The
rate shown is the annualized seven-day subsidized yield as of the end of the reporting period. |
|
ADR
|
American
Depositary Receipt |
|
ETF
|
Exchange-Traded
Fund |
|
REIT
|
Real
Estate Investment Trust |
|
SPDR
|
Standard
& Poor's Depositary Receipt |
|
See accompanying notes to financial statements.
Statement of Assets and Liabilities
April 30, 2020
(Unaudited)
|
Large
Cap Select |
Small
Cap Select |
Assets
|
|
|
Long-term
investments, at value (cost $36,434,708 and $72,404,969, respectively) |
$40,311,661
|
$73,713,293
|
Investment
purchased with collateral from securities lending, at value (cost approximates value) |
—
|
376,252
|
Short-term
investments, at value (cost approximates value) |
40,676
|
918,332
|
Receivable
for: |
|
|
Dividends
|
47,384
|
29,809
|
Due
from affiliates |
3,827
|
7,870
|
Due
from broker |
29
|
132
|
Interest
|
65
|
123
|
Investments
sold |
604,536
|
1,270,311
|
Shares
sold |
10,637
|
79,541
|
Other
assets |
22,366
|
51,774
|
Total
assets |
41,041,181
|
76,447,437
|
Liabilities
|
|
|
Payable
for: |
|
|
Collateral
from securities lending program |
—
|
376,252
|
Investments
purchased - regular settlement |
540,108
|
1,410,633
|
Shares
redeemed |
174,708
|
590,330
|
Accrued
expenses: |
|
|
Directors
fees |
287
|
19,118
|
Management
fees |
13,571
|
20,453
|
12b-1
distribution and service fees |
6,005
|
10,498
|
Other
|
35,081
|
86,258
|
Total
liabilities |
769,760
|
2,513,542
|
Net
assets |
$40,271,421
|
$73,933,895
|
|
|
|
See accompanying notes to financial statements.
Statement of Assets and Liabilities (Unaudited) (continued)
|
Large
Cap Select |
Small
Cap Select |
Class
A Shares |
|
|
Net
assets |
$22,929,827
|
$44,390,063
|
Shares
outstanding |
793,617
|
6,795,064
|
Net
asset value ("NAV") per share |
$
28.89 |
$
6.53 |
Offering
price per share (NAV per share plus maximum sales charge of 5.75% of offering price) |
$
30.65 |
$
6.93 |
Class
C Shares |
|
|
Net
assets |
$
1,993,249 |
$
769,074 |
Shares
outstanding |
74,685
|
217,070
|
NAV
and offering price per share |
$
26.69 |
$
3.54 |
Class
R3 Shares |
|
|
Net
assets |
$
— |
$
4,564,203 |
Shares
outstanding |
—
|
798,905
|
NAV
and offering price per share |
$
— |
$
5.71 |
Class
R6 Shares |
|
|
Net
assets |
$
— |
$
1,821,789 |
Shares
outstanding |
—
|
205,196
|
NAV
and offering price per share |
$
— |
$
8.88 |
Class
I Shares |
|
|
Net
assets |
$15,348,345
|
$22,388,766
|
Shares
outstanding |
527,077
|
2,526,933
|
NAV
and offering price per share |
$
29.12 |
$
8.86 |
Fund
level net assets consist of: |
|
|
Capital
paid-in |
$37,469,863
|
$76,595,696
|
Total
distributable earnings |
2,801,558
|
(2,661,801)
|
Fund
level net assets |
$40,271,421
|
$73,933,895
|
Authorized
shares - per class |
2
billion |
2
billion |
Par
value per share |
$
0.0001 |
$
0.0001 |
See accompanying notes to financial statements.
Statement of Operations
Six Months Ended April 30, 2020
(Unaudited)
|
Large
Cap Select |
Small
Cap Select |
Investment
Income |
|
|
Dividends
|
$
372,272 |
$
527,914 |
Interest
|
1,652
|
5,531
|
Securities
lending income |
29
|
3,123
|
Payment
from affiliate |
3,827
|
7,870
|
Tax
withheld |
(3,228)
|
—
|
Total
investment income |
374,552
|
544,438
|
Expenses
|
|
|
Management
fees |
153,531
|
367,709
|
12b-1
service fees - Class A Shares |
30,183
|
64,346
|
12b-1
distribution and service fees - Class C Shares |
10,513
|
4,897
|
12b-1
distibution and service fees - Class R3 Shares |
—
|
11,719
|
Shareholder
servicing agent fees |
16,861
|
85,093
|
Custodian
fees |
8,768
|
12,143
|
Professional
fees |
15,349
|
20,004
|
Trustees
fees |
435
|
895
|
Shareholder
reporting expenses |
6,540
|
14,026
|
Federal
and state registration fees |
26,784
|
39,942
|
Other
|
1,555
|
2,017
|
Total
expenses before fee waiver/expense reimbursement |
270,519
|
622,791
|
Fee
waiver/expense reimbursement |
(34,387)
|
(114,686)
|
Net
expenses |
236,132
|
508,105
|
Net
investment income (loss) |
138,420
|
36,333
|
Realized
and Unrealized Gain (Loss) |
|
|
Net
realized gain (loss) from investments |
(86,106)
|
(2,845,204)
|
Change
in net unrealized appreciation (depreciation) of investments |
(2,176,124)
|
(10,404,723)
|
Net
realized and unrealized gain (loss) |
(2,262,230)
|
(13,249,927)
|
Net
increase (decrease) in net assets from operations |
$(2,123,810)
|
$(13,213,594)
|
See accompanying notes to financial statements.
Statement of Changes in Net Assets
(Unaudited)
|
Large
Cap Select |
|
Small
Cap Select |
|
Six
Months Ended 4/30/20 |
Year
Ended 10/31/19 |
|
Six
Months Ended 4/30/20 |
Year
Ended 10/31/19 |
Operations
|
|
|
|
|
|
Net
investment income (loss) |
$
138,420 |
$
561,103 |
|
$
36,333 |
$
84,809 |
Net
realized gain (loss) from investments |
(86,106)
|
(1,025,607)
|
|
(2,845,204)
|
(209,980)
|
Change
in net unrealized appreciation (depreciation) of investments |
(2,176,124)
|
6,416,434
|
|
(10,404,723)
|
6,331,612
|
Net
increase (decrease) in net assets from operations |
(2,123,810)
|
5,951,930
|
|
(13,213,594)
|
6,206,441
|
Distributions
to Shareholders |
|
|
|
|
|
Dividends:
|
|
|
|
|
|
Class
A Shares |
(288,657)
|
(894,093)
|
|
(81,269)
|
(11,801,893)
|
Class
C Shares |
(9,872)
|
(80,595)
|
|
—
|
(422,601)
|
Class
R3 Shares |
—
|
—
|
|
—
|
(1,142,174)
|
Class
R6 Shares |
—
|
—
|
|
(11,344)
|
(1,031,249)
|
Class
I Shares |
(256,895)
|
(1,910,495)
|
|
(116,045)
|
(5,461,767)
|
Decrease
in net assets from distributions to shareholders |
(555,424)
|
(2,885,183)
|
|
(208,658)
|
(19,859,684)
|
Fund
Share Transactions |
|
|
|
|
|
Proceeds
from sale of shares |
3,754,848
|
8,928,213
|
|
5,368,055
|
15,825,165
|
Proceeds
from shares issued to shareholders due to reinvestment of distributions |
417,962
|
2,490,169
|
|
197,955
|
19,068,666
|
|
4,172,810
|
11,418,382
|
|
5,566,010
|
34,893,831
|
Cost
of shares redeemed |
(6,109,225)
|
(43,341,723)
|
|
(12,460,749)
|
(38,571,414)
|
Net
increase (decrease) in net assets from Fund share transactions |
(1,936,415)
|
(31,923,341)
|
|
(6,894,739)
|
(3,677,583)
|
Net
increase (decrease) in net assets |
(4,615,649)
|
(28,856,594)
|
|
(20,316,991)
|
(17,330,826)
|
Net
assets at the beginning of period |
44,887,070
|
73,743,664
|
|
94,250,886
|
111,581,712
|
Net
assets at the end of period |
$40,271,421
|
$
44,887,070 |
|
$
73,933,895 |
$
94,250,886 |
See accompanying notes to financial statements.
THIS PAGE INTENTIONALLY LEFT BLANK
Financial Highlights
(Unaudited)
Large Cap Select
Selected data for a share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
Class
(Commencement Date) Year Ended October 31 |
Beginning
NAV |
Net
Investment Income (Loss)(a) |
Net
Realized/ Unrealized Gain (Loss) |
Total
|
|
From
Net Investment Income |
From
Accumulated Net Realized Gains |
Total
|
Ending
NAV |
Class
A (01/03) |
|
|
|
|
|
|
|
|
|
2020
|
$30.71
|
$
0.09 |
$(1.54)
|
$(1.45)
|
|
$(0.37)
|
$
— |
$(0.37)
|
$28.89
|
2019
|
28.87
|
0.21
|
2.72
|
2.93
|
|
(0.10)
|
(0.99)
|
(1.09)
|
30.71
|
2018
|
27.50
|
0.12
|
1.38
|
1.50
|
|
(0.13)
|
—
|
(0.13)
|
28.87
|
2017
|
21.24
|
0.10
|
6.25
|
6.35
|
|
(0.09)
|
—
|
(0.09)
|
27.50
|
2016
|
20.59
|
0.09
|
0.61
|
0.70
|
|
(0.05)
|
—
|
(0.05)
|
21.24
|
2015
|
20.13
|
0.08
|
0.46
|
0.54
|
|
(0.08)
|
—
|
(0.08)
|
20.59
|
Class
C (01/03) |
|
|
|
|
|
|
|
|
|
2020
|
28.28
|
(0.03)
|
(1.43)
|
(1.46)
|
|
(0.13)
|
—
|
(0.13)
|
26.69
|
2019
|
26.77
|
(
—)* |
2.50
|
2.50
|
|
—
|
(0.99)
|
(0.99)
|
28.28
|
2018
|
25.57
|
(0.10)
|
1.30
|
1.20
|
|
—
|
—
|
—
|
26.77
|
2017
|
19.82
|
(0.08)
|
5.83
|
5.75
|
|
—
|
—
|
—
|
25.57
|
2016
|
19.31
|
(0.06)
|
0.57
|
0.51
|
|
—
|
—
|
—
|
19.82
|
2015
|
18.96
|
(0.07)
|
0.42
|
0.35
|
|
—
|
—
|
—
|
19.31
|
Class
I (01/03) |
|
|
|
|
|
|
|
|
|
2020
|
30.98
|
0.13
|
(1.55)
|
(1.42)
|
|
(0.44)
|
—
|
(0.44)
|
29.12
|
2019
|
29.13
|
0.28
|
2.73
|
3.01
|
|
(0.17)
|
(0.99)
|
(1.16)
|
30.98
|
2018
|
27.74
|
0.19
|
1.40
|
1.59
|
|
(0.20)
|
—
|
(0.20)
|
29.13
|
2017
|
21.42
|
0.16
|
6.30
|
6.46
|
|
(0.14)
|
—
|
(0.14)
|
27.74
|
2016
|
20.76
|
0.14
|
0.62
|
0.76
|
|
(0.10)
|
—
|
(0.10)
|
21.42
|
2015
|
20.30
|
0.13
|
0.46
|
0.59
|
|
(0.13)
|
—
|
(0.13)
|
20.76
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data |
|
|
Ratios
to Average Net Assets Before Waiver/Reimbursement |
|
Ratios
to Average Net Assets After Waiver/Reimbursement(d) |
|
Total
Return(b), (c) |
Ending
Net Assets (000) |
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
|
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
Portfolio
Turnover Rate(e) |
|
|
|
|
|
|
|
|
|
|
(4.87)%
|
$22,930
|
1.30%**
|
0.41%**
|
0.39%**
|
|
1.14%**
|
0.57%**
|
0.55%**
|
53%
|
10.86
|
24,224
|
1.20
|
0.68
|
N/A
|
|
1.15
|
0.73
|
N/A
|
108
|
5.47
|
23,030
|
1.16
|
0.37
|
N/A
|
|
1.14
|
0.39
|
N/A
|
101
|
29.99
|
14,778
|
1.19
|
0.36
|
N/A
|
|
1.14
|
0.40
|
N/A
|
276
|
3.40
|
7,983
|
1.22
|
0.44
|
N/A
|
|
1.21
|
0.45
|
N/A
|
116
|
2.66
|
7,383
|
1.25
|
0.36
|
N/A
|
|
1.25
|
0.36
|
N/A
|
124
|
|
|
|
|
|
|
|
|
|
|
(5.21)
|
1,993
|
2.05**
|
(0.34)**
|
(0.36)**
|
|
1.89**
|
(0.19)**
|
(0.20)**
|
53
|
10.02
|
2,097
|
1.95
|
(0.07)
|
N/A
|
|
1.90
|
(0.02)
|
N/A
|
108
|
4.65
|
2,145
|
1.91
|
(0.39)
|
N/A
|
|
1.89
|
(0.37)
|
N/A
|
101
|
29.06
|
1,389
|
1.94
|
(0.39)
|
N/A
|
|
1.89
|
(0.34)
|
N/A
|
276
|
2.64
|
1,074
|
1.97
|
(0.32)
|
N/A
|
|
1.96
|
(0.31)
|
N/A
|
116
|
1.85
|
684
|
2.00
|
(0.38)
|
N/A
|
|
2.00
|
(0.38)
|
N/A
|
124
|
|
|
|
|
|
|
|
|
|
|
(4.74)
|
15,348
|
1.05**
|
0.66**
|
0.64**
|
|
0.89**
|
0.82**
|
0.80**
|
53
|
11.13
|
18,567
|
0.95
|
0.93
|
N/A
|
|
0.90
|
0.98
|
N/A
|
108
|
5.74
|
48,569
|
0.91
|
0.63
|
N/A
|
|
0.89
|
0.65
|
N/A
|
101
|
30.31
|
45,599
|
0.94
|
0.61
|
N/A
|
|
0.89
|
0.66
|
N/A
|
276
|
3.69
|
37,597
|
0.97
|
0.69
|
N/A
|
|
0.96
|
0.70
|
N/A
|
116
|
2.88
|
34,615
|
1.00
|
0.63
|
N/A
|
|
1.00
|
0.63
|
N/A
|
124
|
(a)
|
Per share Net
Investment Income (Loss) is calculated using the average daily shares method. |
(b)
|
During the
current fiscal period, the Fund received voluntary compensation from the Adviser. The Fund's Total Return for each share would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded. See Note 7-Management Fees
and Other Transactions with Affiliates, for more information. |
(c)
|
Total
return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(d)
|
After fee
waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, for more information. |
(e)
|
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
|
*
|
Rounds to
less than $.01 per share. |
**
|
Annualized.
|
N/A
|
Fund did
not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020. |
See accompanying notes to financial statements.
Financial Highlights (Unaudited) (continued)
Small Cap Select
Selected data for a
share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Operations |
|
Less
Distributions |
|
Class
(Commencement Date) Year Ended October 31 |
Beginning
NAV |
Net
Investment Income (Loss)(a) |
Net
Realized/ Unrealized Gain (Loss) |
Total
|
|
From
Net Investment Income |
From
Accumulated Net Realized Gains |
Total
|
Ending
NAV |
Class
A (05/92) |
|
|
|
|
|
|
|
|
|
2020
|
$
7.71 |
$
—** |
$(1.17)
|
$(1.17)
|
|
$
(0.01) |
$
— |
$(0.01)
|
$
6.53 |
2019
|
9.26
|
(
—)** |
0.28
|
0.28
|
|
(
—)*** |
(1.83)
|
(1.83)
|
7.71
|
2018
|
10.13
|
(0.01)
|
0.35
|
0.34
|
|
—
|
(1.21)
|
(1.21)
|
9.26
|
2017
|
9.21
|
(0.02)
|
1.97
|
1.95
|
|
(0.01)
|
(1.02)
|
(1.03)
|
10.13
|
2016
|
11.01
|
0.01
|
0.30
|
0.31
|
|
—
|
(2.11)
|
(2.11)
|
9.21
|
2015
|
14.48
|
(0.02)
|
0.37
|
0.35
|
|
—
|
(3.82)
|
(3.82)
|
11.01
|
Class
C (09/01) |
|
|
|
|
|
|
|
|
|
2020
|
4.19
|
(0.01)
|
(0.64)
|
(0.65)
|
|
—
|
—
|
—
|
3.54
|
2019
|
6.00
|
(0.03)
|
0.05
|
0.02
|
|
—
|
(1.83)
|
(1.83)
|
4.19
|
2018
|
7.02
|
(0.05)
|
0.24
|
0.19
|
|
—
|
(1.21)
|
(1.21)
|
6.00
|
2017
|
6.70
|
(0.06)
|
1.40
|
1.34
|
|
—
|
(1.02)
|
(1.02)
|
7.02
|
2016
|
8.64
|
(0.04)
|
0.21
|
0.17
|
|
—
|
(2.11)
|
(2.11)
|
6.70
|
2015
|
12.28
|
(0.08)
|
0.26
|
0.18
|
|
—
|
(3.82)
|
(3.82)
|
8.64
|
Class
R3 (01/94) |
|
|
|
|
|
|
|
|
|
2020
|
6.74
|
(0.01)
|
(1.02)
|
(1.03)
|
|
—
|
—
|
—
|
5.71
|
2019
|
8.37
|
(0.02)
|
0.22
|
0.20
|
|
—
|
(1.83)
|
(1.83)
|
6.74
|
2018
|
9.28
|
(0.03)
|
0.33
|
0.30
|
|
—
|
(1.21)
|
(1.21)
|
8.37
|
2017
|
8.53
|
(0.04)
|
1.81
|
1.77
|
|
—
|
(1.02)
|
(1.02)
|
9.28
|
2016
|
10.38
|
(0.01)
|
0.27
|
0.26
|
|
—
|
(2.11)
|
(2.11)
|
8.53
|
2015
|
13.91
|
(0.04)
|
0.33
|
0.29
|
|
—
|
(3.82)
|
(3.82)
|
10.38
|
Class
R6 (02/18) |
|
|
|
|
|
|
|
|
|
2020
|
10.49
|
0.02
|
(1.57)
|
(1.55)
|
|
(0.06)
|
—
|
(0.06)
|
8.88
|
2019
|
11.87
|
0.04
|
0.44
|
0.48
|
|
(0.03)
|
(1.83)
|
(1.86)
|
10.49
|
2018
|
11.82
|
0.02
|
0.03
|
0.05
|
|
—
|
—
|
—
|
11.87
|
Class
I (05/92) |
|
|
|
|
|
|
|
|
|
2020
|
10.46
|
0.01
|
(1.57)
|
(1.56)
|
|
(0.04)
|
—
|
(0.04)
|
8.86
|
2019
|
11.85
|
0.03
|
0.44
|
0.47
|
|
(0.03)
|
(1.83)
|
(1.86)
|
10.46
|
2018
|
12.60
|
0.03
|
0.43
|
0.46
|
|
—
|
(1.21)
|
(1.21)
|
11.85
|
2017
|
11.24
|
0.01
|
2.40
|
2.41
|
|
(0.03)
|
(1.02)
|
(1.05)
|
12.60
|
2016
|
12.93
|
0.04
|
0.38
|
0.42
|
|
—
|
(2.11)
|
(2.11)
|
11.24
|
2015
|
16.30
|
0.02
|
0.43
|
0.45
|
|
—
|
(3.82)
|
(3.82)
|
12.93
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data |
|
|
Ratios
to Average Net Assets Before Waiver/Reimbursement |
|
Ratios
to Average Net Assets After Waiver/Reimbursement(d) |
|
Total
Return(b), (c) |
Ending
Net Assets (000) |
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
|
Expenses
|
Net
Investment Income (Loss) |
Net
Investment Income (Loss) Excluding Payment From Affiliates |
Portfolio
Turnover Rate(e) |
|
|
|
|
|
|
|
|
|
|
(15.19)%
|
$44,390
|
1.51%*
|
(0.25)%*
|
(0.27)%*
|
|
1.24%*
|
0.02%*
|
( —)%****
|
37%
|
6.95
|
55,849
|
1.42
|
(0.17)
|
N/A
|
|
1.24
|
0.01
|
N/A
|
70
|
3.48
|
60,930
|
1.43
|
(0.24)
|
N/A
|
|
1.24
|
(0.06)
|
N/A
|
95
|
21.76
|
67,405
|
1.41
|
(0.24)
|
N/A
|
|
1.33
|
(0.16)
|
N/A
|
66
|
4.05
|
67,428
|
1.44
|
0.10
|
N/A
|
|
1.44
|
0.10
|
N/A
|
66
|
4.08
|
82,080
|
1.42
|
(0.14)
|
N/A
|
|
1.42
|
(0.14)
|
N/A
|
75
|
|
|
|
|
|
|
|
|
|
|
(15.51)
|
769
|
2.25*
|
(0.97)*
|
(0.98)*
|
|
1.99*
|
(0.70)*
|
(0.72)*
|
37
|
6.09
|
1,029
|
2.17
|
(0.92)
|
N/A
|
|
1.99
|
(0.74)
|
N/A
|
70
|
2.78
|
1,436
|
2.18
|
(1.00)
|
N/A
|
|
1.99
|
(0.81)
|
N/A
|
95
|
20.75
|
4,913
|
2.16
|
(0.99)
|
N/A
|
|
2.09
|
(0.91)
|
N/A
|
66
|
3.37
|
5,625
|
2.19
|
(0.65)
|
N/A
|
|
2.19
|
(0.65)
|
N/A
|
66
|
3.19
|
8,036
|
2.17
|
(0.88)
|
N/A
|
|
2.17
|
(0.88)
|
N/A
|
75
|
|
|
|
|
|
|
|
|
|
|
(15.28)
|
4,564
|
1.76*
|
(0.53)*
|
(0.55)*
|
|
1.49*
|
(0.26)*
|
(0.28)*
|
37
|
6.65
|
5,194
|
1.68
|
(0.42)
|
N/A
|
|
1.49
|
(0.24)
|
N/A
|
70
|
3.34
|
5,264
|
1.68
|
(0.50)
|
N/A
|
|
1.49
|
(0.31)
|
N/A
|
95
|
21.40
|
5,381
|
1.66
|
(0.49)
|
N/A
|
|
1.59
|
(0.41)
|
N/A
|
66
|
3.76
|
5,310
|
1.69
|
(0.12)
|
N/A
|
|
1.69
|
(0.12)
|
N/A
|
66
|
3.75
|
7,794
|
1.67
|
(0.38)
|
N/A
|
|
1.67
|
(0.38)
|
N/A
|
75
|
|
|
|
|
|
|
|
|
|
|
(14.91)
|
1,822
|
1.10*
|
0.13*
|
0.12*
|
|
0.83*
|
0.40*
|
0.38*
|
37
|
7.22
|
2,070
|
1.03
|
0.17
|
N/A
|
|
0.85
|
0.36
|
N/A
|
70
|
0.42
|
6,532
|
1.03*
|
0.06*
|
N/A
|
|
0.85*
|
0.24*
|
N/A
|
95
|
|
|
|
|
|
|
|
|
|
|
(14.98)
|
22,389
|
1.26*
|
0.01*
|
(0.01)*
|
|
0.99*
|
0.27*
|
0.26*
|
37
|
7.13
|
30,109
|
1.17
|
0.08
|
N/A
|
|
0.99
|
0.26
|
N/A
|
70
|
3.77
|
37,420
|
1.18
|
0.02
|
N/A
|
|
0.99
|
0.21
|
N/A
|
95
|
22.03
|
49,150
|
1.16
|
0.01
|
N/A
|
|
1.08
|
0.09
|
N/A
|
66
|
4.33
|
45,574
|
1.19
|
0.36
|
N/A
|
|
1.19
|
0.36
|
N/A
|
66
|
4.29
|
96,071
|
1.17
|
0.11
|
N/A
|
|
1.17
|
0.11
|
N/A
|
75
|
(a)
|
Per share Net
Investment Income (Loss) is calculated using the average daily shares method. |
(b)
|
During the
current fiscal period, the Fund received voluntary compensation from the Adviser. The Fund's Total Return for each share would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded. See Note 7-Management Fees
and Other Transactions with Affiliates, for more information. |
(c)
|
Total
return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
(d)
|
After fee
waiver and/or expense reimbursement from the Adviser, where applicable. See Note 7 – Management Fees and Other Transactions with Affiliates, for more information. |
(e)
|
Portfolio
Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 4 – Portfolio Securities and Investments in Derivatives) divided by the average long-term market value during the period.
|
*
|
Annualized.
|
**
|
Rounds to
less than $.01 per share. |
***
|
Rounds to
more than $(.01) per share. |
****
|
Annualized
ratio rounds to less than .01%. |
N/A
|
Fund did
not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020. |
See accompanying notes to financial statements.
Notes to Financial Statements
(Unaudited)
1. General Information
Trust and Fund Information
Nuveen Investment Funds, Inc. (the “Trust”), is an
open-end management investment company registered under the Investment Company Act of 1940 (the "1940 Act"), as amended. The Trust is comprised of Nuveen Large Cap Select Fund (“Large Cap Select”) and Nuveen Small Cap Select Fund
(“Small Cap Select”), (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was incorporated in the State of Maryland on August 20, 1987.
The end of the reporting period for the Funds is April 30,
2020, and the period covered by these Notes to Financial Statements is the six months ended April 30, 2020 (the “current fiscal period”).
Investment Adviser and Sub-Adviser
The Funds' investment adviser is Nuveen Fund Advisors, LLC (the
“Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds,
oversees the management of the Funds' portfolios, manages the Funds' business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into
sub-advisory agreements with Nuveen Asset Management, LLC, (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge
and incur a 0.25% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value (“NAV”) without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”)
of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but incur a 0.75% annual 12b-1 distribution fee and a 0.25% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if
redeemed within twelve months of purchase. Class C Shares automatically convert to Class A Shares ten years after purchase. Class R3 Shares are sold without an up-front sales charge but incur a 0.25% annual 12b-1 distribution fee and a 0.25% annual
12b-1 service fee. Class R6 Shares and Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Other Matters
The outbreak of the novel coronavirus (“COVID-19”)
and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global
economy. The duration and extent of COVID-19 over the long-term cannot be reasonably estimated at this time. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have on
the Funds’ Company’s financial performance. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ Company’s normal course of business, results of operations, investments, and cash flows will
depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.
2. Significant Accounting Policies
The accompanying financial statements were prepared in
accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from
those estimates. Each Fund is an investment company and follows accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The NAV for
financial reporting purposes may differ from the NAV for processing security and shareholder transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is
computed based on the NAV used for processing security and shareholder transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Compensation
The Trust pays no compensation directly to those of its
directors who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board has adopted a deferred compensation plan for independent directors that
enables directors to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested
in shares of select Nuveen-advised funds.
Distributions to Shareholders
Distributions to shareholders are recorded on the ex-dividend
date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications
Under the Trust’s organizational documents, its officers
and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other
parties. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Investments and investment Income
Securities transactions are accounted for as of the trade date
for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when information is
available. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded at fair value. Interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting
purposes and is recorded on an accrual basis. Interest income also reflects payment-in-kind ("PIK") interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Securities lending
income is comprised of fees earned from borrowers and income earned on cash collateral investments.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly
attributable to a specific class of shares are prorated among the classes based on the relative net assets each class. Expenses directly attributable to a class of shares are recorded to the specific class. 12b-1 distribution and service fees are
allocated on a class-specific basis.
Sub-transfer agent
fees and similar fees, which are recognized as a component of “Shareholder servicing agent fees” on the Statement of Operations, are not charged to Class R6 Shares and are prorated among the other classes based on their relative net
assets.
Realized and unrealized capital gains and losses
of the Funds are prorated among the classes based on the relative net assets of each class.
Netting Agreements
In the ordinary course of business, the Funds may enter into
transactions subject to enforceable 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 4 - Portfolio Securities and Investments in Derivatives.
New Accounting Pronouncements and Rule Issuances
Fair Value Measurement: Disclosure Framework
During August 2018, the FASB issued Accounting Standards Update
("ASU") 2018-13 (“ASU 2018-13”), Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 modifies the
disclosures required by Topic 820, Fair Value Measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2019. Management has early implemented this guidance and it did not have a material impact on the Funds' financial statements.
Reference Rate Reform
In March 2020, FASB issued ASU 2020-04, Reference Rate Reform:
Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when
participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only change to existing contracts are a change to
an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December
31, 2022. Management has not yet elected to apply the amendments, but is currently assessing the impact of the ASU’s adoption to the Funds’ financial statements and various filings.
3. Investment Valuation and Fair Value
Measurements
The fair valuation input levels as described
below are for fair value measurement purposes.
The Funds'
investments in securities are recorded at their estimated fair value. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal
or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification
Notes to Financial Statements (Unaudited) (continued)
of fair value measurements for disclosure purposes. Observable inputs reflect
the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own
assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of
valuation input levels.
Level 1
– Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2
– Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3
– Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
Common stocks and other equity-type securities are valued at
the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the Nasdaq National Market ("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 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 New York Stock Exchange, which may represent a transfer from a Level 1 to a Level 2 security.
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.
Investments in investment companies are valued at their
respective NAVs on the valuation date and are generally classified as Level 1.
Certain securities may not be able to be priced by the
pre-established pricing methods as described above. Such securities may be valued by the 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 an independent pricing service ("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:
Large
Cap Select |
Level
1 |
Level
2 |
Level
3 |
Total
|
Long-Term
Investments*: |
|
|
|
|
Common
Stocks |
$40,311,661
|
$ —
|
$ —
|
$40,311,661
|
Short-Term
Investments: |
|
|
|
|
Money
Market Funds |
40,676
|
—
|
—
|
40,676
|
Total
|
$40,352,337
|
$ —
|
$ —
|
$40,352,337
|
Small
Cap Select |
Level
1 |
Level
2 |
Level
3 |
Total
|
Long-Term
Investments*: |
|
|
|
|
Common
Stocks |
$73,002,409
|
$ —
|
$ —
|
$73,002,409
|
Exchange-Traded
Funds |
710,885
|
—
|
—
|
710,885
|
Short-Term
Investments: |
|
|
|
|
Money
Market Funds |
918,332
|
—
|
—
|
918,332
|
Total
|
$74,631,626
|
$ —
|
$ —
|
$74,631,626
|
*
|
Refer
to the Fund's Portfolio of Investments for industry classifications. |
4. Portfolio Securities and Investments in Derivatives
Securities Lending
In order to generate additional income, the Funds may lend
securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks or other institutions. When loaning securities, each Fund retains the benefits of owning the
securities, including the economic equivalent of dividends or interest generated by the security. The Funds also have the ability to recall the securities on loan at any time.
Each Fund’s policy is to receive, at the inception of a
loan, cash collateral equal to at least 102% of the value of securities loaned, which is recognized as “Payable for collateral from securities lending program” on the Statement of Assets and Liabilities. Collateral for securities on loan
is invested in a money market fund, which is recognized as “Investments purchased with collateral from securities lending, at value” on the Statement of Assets and Liabilities. The market value of the securities loaned is determined at
the close of each business day in order to determine the adequacy of the collateral. If the value of the securities on loan increases such that the level of collateralization falls below 100%, additional collateral is received from the borrower on
the next business day, which is recognized as “Due from broker” on the Statement of Assets and Liabilities.
Securities out on loan are subject to termination at any time
at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Fund securities identical to the securities loaned. Generally, in the event the borrower defaults on its obligation to return the loaned
securities, the Fund has the right to use the collateral to acquire identical securities. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a loss to the Fund. Under the Funds’
securities lending agreement, however, the securities lending agent has indemnified the Fund against losses resulting from borrower default, except to the extent that those losses result from a decrease in the value of the collateral due to its
investment by the Funds. The Funds bear the risk of loss with respect to the investment of collateral.
The Funds’ custodian, U.S. Bank National Association,
serves as their securities lending agent. Income earned from the securities lending program is paid to the Funds. Income from securities lending, is recognized as “Securities lending income” on the Statement of Operations.
The following table presents the securities out on loan for the
following Fund, and the collateral delivered related to those securities, as of the end of the reporting period.
Fund
|
Asset
Class out on Loan |
Long-Term
Investments, at Value |
Collateral
Pledged (From) Counterparty* |
Net
Exposure |
Small
Cap Select |
Common
Stocks |
$364,068
|
$(364,068)
|
$ —
|
* As of the end of the reporting
period, the value of the collateral pledged from the counterparty exceeded the value of the securities out on loan. Refer to the Fund’s Portfolio of Investments for details on the securities out on loan.
Investment Transactions
Long-term purchases and sales (excluding investments purchased
with collateral from securities lending, where applicable) during the current fiscal period were as follows:
|
Large
Cap Select |
Small
Cap Select |
Purchases
|
$22,850,529
|
$31,705,900
|
Sales
|
25,152,919
|
37,497,740
|
The Funds may purchase securities
on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market
fluctuation during this period. The Funds have earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/ delayed-delivery purchase commitments. If a Fund has outstanding
when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.
Investments in Derivatives
Each Fund is authorized to invest in certain derivative
instruments. 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.
Although the Funds are authorized to invest in derivative
instruments, and may do so in the future, they did not make any such investments during the current fiscal period.
Notes to Financial Statements (Unaudited) (continued)
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in
financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss
could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap
transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering
into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to
pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
5. Fund Shares
Transactions in Fund shares during the current and prior fiscal
period were as follows:
|
Six
Months Ended 4/30/20 |
|
Year
Ended 10/31/19 |
Large
Cap Select |
Shares
|
Amount
|
|
Shares
|
Amount
|
Shares
sold: |
|
|
|
|
|
Class
A |
85,471
|
$
2,654,123 |
|
177,515
|
$
4,930,221 |
Class
A – automatic conversion of Class C Shares |
115
|
3,344
|
|
486
|
13,884
|
Class
C |
6,711
|
171,982
|
|
24,930
|
643,351
|
Class
I |
30,946
|
925,399
|
|
120,055
|
3,340,757
|
Shares
issued to shareholders due to reinvestment of distributions: |
|
|
|
|
|
Class
A |
8,421
|
275,945
|
|
32,369
|
835,988
|
Class
C |
304
|
9,233
|
|
3,148
|
75,284
|
Class
I |
4,024
|
132,784
|
|
60,673
|
1,578,897
|
|
135,992
|
4,172,810
|
|
419,176
|
11,418,382
|
Shares
redeemed: |
|
|
|
|
|
Class
A |
(89,195)
|
(2,663,903)
|
|
(219,203)
|
(6,275,373)
|
Class
C |
(6,338)
|
(171,590)
|
|
(33,536)
|
(894,697)
|
Class
C – automatic conversion to Class A Shares |
(125)
|
(3,344)
|
|
(526)
|
(13,884)
|
Class
I |
(107,187)
|
(3,270,388)
|
|
(1,248,745)
|
(36,157,769)
|
|
(202,845)
|
(6,109,225)
|
|
(1,502,010)
|
(43,341,723)
|
Net
increase (decrease) |
(66,853)
|
$(1,936,415)
|
|
(1,082,834)
|
$(31,923,341)
|
|
Six
Months Ended 4/30/20 |
|
Year
Ended 10/31/19 |
Small
Cap Select |
Shares
|
Amount
|
|
Shares
|
Amount
|
Shares
sold: |
|
|
|
|
|
Class
A |
173,230
|
$
1,223,786 |
|
482,537
|
$
3,499,928 |
Class
A – automatic conversion of Class C Shares |
490
|
3,918
|
|
1,287
|
10,280
|
Class
C |
46,360
|
185,368
|
|
43,704
|
181,629
|
Class
R3 |
172,851
|
885,785
|
|
256,759
|
1,677,173
|
Class
R6 |
43,510
|
407,284
|
|
202,682
|
2,051,384
|
Class
I |
277,313
|
2,661,914
|
|
843,491
|
8,404,771
|
Shares
issued to shareholders due to reinvestment of distributions: |
|
|
|
|
|
Class
A |
9,868
|
80,423
|
|
1,813,633
|
11,697,567
|
Class
C |
—
|
—
|
|
119,270
|
421,025
|
Class
R3 |
—
|
—
|
|
201,838
|
1,140,383
|
Class
R6 |
1,026
|
11,344
|
|
117,392
|
1,031,249
|
Class
I |
9,610
|
106,188
|
|
545,179
|
4,778,442
|
|
734,258
|
5,566,010
|
|
4,627,772
|
34,893,831
|
Shares
redeemed: |
|
|
|
|
|
Class
A |
(636,016)
|
(4,611,254)
|
|
(1,629,812)
|
(12,135,488)
|
Class
C |
(73,980)
|
(288,280)
|
|
(154,537)
|
(622,536)
|
Class
C – automatic conversion to Class A Shares |
(902)
|
(3,918)
|
|
(2,231)
|
(10,280)
|
Class
R3 |
(144,870)
|
(981,547)
|
|
(316,677)
|
(2,085,951)
|
Class
R6 |
(36,613)
|
(352,243)
|
|
(673,304)
|
(6,773,557)
|
Class
I |
(637,867)
|
(6,223,507)
|
|
(1,668,575)
|
(16,943,602)
|
|
(1,530,248)
|
(12,460,749)
|
|
(4,445,136)
|
(38,571,414)
|
Net
increase (decrease) |
(795,990)
|
$
(6,894,739) |
|
182,636
|
$
(3,677,583) |
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 income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated
investment companies. Therefore, no federal income tax provision is required.
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 recognizing certain gains and losses on investment transactions. To the
extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the
NAVs of the Funds.
The table below presents the cost and
unrealized appreciation (depreciation) of each Fund's investment portfolio, as determined on a federal income tax basis, as of April 30, 2020.
|
Large
Cap Select |
Small
Cap Select |
Tax
cost of investments |
$36,703,966
|
$74,013,733
|
Gross
unrealized: |
|
|
Appreciation
|
$
5,641,601 |
$
9,383,570 |
Depreciation
|
(1,993,230)
|
(8,389,426)
|
Net
unrealized appreciation (depreciation) of investments |
$
3,648,371 |
$
994,144 |
Permanent differences, primarily due to federal taxes paid and
distribution reallocations, resulted in reclassifications among the Funds' components of net assets as of October 31, 2019, the Funds' last tax year end.
The tax components of undistributed net ordinary income and net
long-term capital gains as of October 31, 2019, the Funds' last tax year end, were as follows:
Notes to Financial Statements (Unaudited) (continued)
|
Large
Cap Select |
Small
Cap Select |
Undistributed
net ordinary income1 |
$512,223
|
$62,715
|
Undistributed
net long-term capital gains |
—
|
—
|
1 |
Net ordinary
income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
The tax character of distributions paid during the
Funds’ last tax year ended October 31, 2019 was designated for purposes of the dividends paid deduction as follows:
|
Large
Cap Select |
Small
Cap Select |
Distributions
from net ordinary income1 |
$2,753,146
|
$
5,582,744 |
Distributions
from net long-term capital gains |
132,037
|
14,276,940
|
1 |
Net
ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
As of October 31, 2019, the Funds’ last tax year end,
the Funds had unused capital losses carrying forward available for federal income tax purposes to be applied against future capital gains, if any. The capital losses are not subject to expiration.
|
Large
Cap Select |
Small
Cap Select |
Not
subject to expiration: |
|
|
Short-term
|
$328,832
|
$263,821
|
Long-term
|
527,111
|
419,464
|
Total
|
$855,943
|
$683,285
|
7. Management Fees and
Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for
the overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components
– a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each
Fund’s 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 Net Assets |
Large
Cap Select |
Small
Cap Select |
For
the first $125 million |
0.5000%
|
0.6500%
|
For
the next $125 million |
0.4875
|
0.6375
|
For
the next $250 million |
0.4750
|
0.6250
|
For
the next $500 million |
0.4625
|
0.6125
|
For
the next $1 billion |
0.4500
|
0.6000
|
For
the next $3 billion |
0.4250
|
0.5750
|
For
the next $2.5 billion |
0.4000
|
0.5500
|
For
the next $2.5 billion |
0.3875
|
0.5375
|
For
net assets over $10 billion |
0.3750
|
0.5250
|
The annual complex-level fee,
payable monthly, for each Fund is determined by taking the complex-level fee rate, which is based on the aggregate amount of "eligible assets" of all Nuveen funds as set forth in the schedule below, and making, as appropriate, an upward adjustment
to that rate based upon the percentage of the particular fund's assets that are not "eligible assets". The complex-level fee schedule for each Fund is as follows:
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
|
*
The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen open-end and closed-end funds. Eligible assets do not include assets attributable to investments in other Nuveen
funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do
include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to
certain types of leverage. For these purposes, leverage includes the closed-end 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 eligible assets in certain circumstances. As of April 30, 2020, the complex-level fee rate for each Fund was 0.2000%.
The Adviser has agreed to waive fees and/or reimburse expenses
(“Expense Cap”) of each Fund so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio
securities and extraordinary expenses) do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time period stated in the following table. However, because Class R6 Shares are not subject to sub-transfer
agent and similar fees, the total annual fund operating expenses for the Class R6 Shares will not be less than the expense limitation. The expense limitation in effect thereafter may be terminated or modified only with the approval of the
Board.
Fund
|
Expense
Cap |
Expense
Cap Expiration Date |
Large
Cap Select |
0.89%
|
July
31, 2021 |
Small
Cap Select |
0.99
|
July
31, 2021 |
Other Transactions with
Affiliates
During February 2020, the Funds began
receiving voluntary compensation from the Adviser in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if the Adviser had purchased the research services directly. This income
received by the Funds is recognized as “Payment from affiliate” on the Statement of Operations.
During the current fiscal period, the Distributor, collected
sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
|
Large
Cap Select |
Small
Cap Select |
Sales
charges collected |
$6,128
|
$5,440
|
Paid
to financial intermediaries |
5,449
|
4,759
|
The Distributor also received 12b-1
service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the current fiscal period, the Distributor compensated
financial intermediaries directly with commission advances at the time of purchase as follows:
|
Large
Cap Select |
Small
Cap Select |
Commission
advances |
$592
|
$1,260
|
Notes to Financial Statements (Unaudited) (continued)
To compensate for commissions advanced to financial intermediaries, all 12b-1
service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the current fiscal period, the Distributor retained such 12b-1 fees as follows:
|
Large
Cap Select |
Small
Cap Select |
12b-1
fees retained |
$1,242
|
$761
|
The remaining 12b-1 fees charged to
each Fund were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share
redemptions during the current fiscal period, as follows:
|
Large
Cap Select |
Small
Cap Select |
CDSC
retained |
$14
|
$33
|
8. Borrowings
Arrangements
Committed Line of Credit
The Funds, along with certain other funds managed by the
Adviser (“Participating Funds”), have established a 364-day, $2.65 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment
purposes. Each Participating Fund is allocated a designated proportion of the facility’s capacity (and its associated costs, as described below) based upon a multi-factor assessment of the likelihood and frequency of its need to draw on the
facility, the size of the Fund and its anticipated draws, and the potential importance of such draws to the operations and well-being of the Fund, relative to those of the other Funds. A Fund may effect draws on the facility in excess of its
designated capacity if and to the extent that other Participating Funds have undrawn capacity. The credit facility expires in June 2020 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per
annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. Participating Funds paid
administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the
relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, none of the Funds utilized
this facility.
9. Subsequent Events
Expense Cap
During May 2020, the Board approved an extension of the Expense
Cap limitation for both Large Cap Select and Small Cap Select to July 31, 2022.
Committed Line of Credit
During June 2020, the Participating Funds renewed the standby
credit facility through June 2021. In conjunction with this renewal the commitment amount decreased from $2.65 billion to $2.405 billion and the interest rate increased from LIBOR plus 1.00% to LIBOR plus 1.25%. The Participating Funds also incurred
a 0.10% upfront fee. All other terms remain unchanged.
Additional Fund Information
Investment Adviser
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Independent Registered
Public Accounting Firm
PricewaterhouseCoopers LLP
One North Wacker Drive
Chicago, IL 60606
Custodian
U.S. Bank National Association
1555 North RiverCenter Drive
Suite 302
Milwaukee, WI 53212
Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
Transfer Agent and
Shareholder Services
DST Asset Manager
Solutions, Inc. (DST)
P.O. Box 219140
Kansas City, MO 64121-9140
(800) 257-8787
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 as an exhibit to its report on Form N-PORT.
You may obtain this information on the SEC's website at http://www.sec.gov.
Nuveen Funds’ Proxy Voting Information: You may obtain (i) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request by calling Nuveen
toll-free at (800) 257-8787 or 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.
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.FINRA.org.
Glossary of Terms Used in this Report
Average
Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to
equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested distributions and capital gains, if any) over the time period being considered.
Lipper Large-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of
distributions but do not reflect any applicable sales charges.
Lipper Small-Cap Core Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of
distributions but do not reflect any applicable sales charges.
Market Capitalization: The
market capitalization of a company is equal to the number of the company’s common shares outstanding multiplied by the current price of the company’s stock.
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV
per share is equal to the fund’s (or share class’) Net Assets divided by its number of shares outstanding.
Russell 2000® Index: An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000
Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes
approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 3000® Index
measures the performance of the 3,000 largest companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The index returns assume reinvestment of distributions, but do not reflect any
applicable sales charges or management fees.
S&P 500®: An unmanaged index generally considered representative of the U.S. stock market. The index returns assume
reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Tax Equalization: The
practice of treating a portion of the distribution made to a redeeming shareholder, which represents his proportionate part of undistributed net investment income and capital gain as a distribution for tax purposes. Such amounts are referred to as
the equalization debits (or payments) and will be considered a distribution to the shareholder of net investment income and capital gain for calculation of the fund’s dividends paid deduction.
Liquidity Risk Management Program
Discussion
of the operation and effectiveness of the Funds’ liquidity risk management program
In compliance with Rule 22e-4 under the Investment Company Act
of 1940, as amended (the “Liquidity Rule”), each Fund covered in this Report (the “Funds”) has adopted and implemented a liquidity risk management program (the “Program”), which is designed to manage the
Fund’s liquidity risk. The Program consists of various protocols for assessing and managing each Fund’s liquidity risk. The Funds’ Board of Trustees previously designated Nuveen Fund Advisors, LLC, the Funds’ investment
adviser, as the Administrator of the Program. The adviser’s Liquidity Monitoring and Analysis Team (“LMAT”) carries out day-to-day Program management with oversight by the adviser’s Liquidity Oversight Sub-Committee (the
LOSC”). The LOSC is composed of personnel from the adviser and Teachers Advisors, LLC, an affiliate of the adviser.
At a May 20, 2020 meeting of the Board, the Administrator
provided the Board with a written report addressing the Program’s operation, adequacy and effectiveness of implementation for calendar year 2019 (the “Review Period”), as required under the Liquidity Rule. The report noted that the
Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to each Fund’s liquidity developments.
In accordance with the Program, the LMAT assesses each
Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash
equivalents, borrowing arrangements, and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four
liquidity categories (including the most liquid, “Highly Liquid”, and the least liquid, “Illiquid”, discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the
investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and
investment-specific considerations, as well as market depth, and use third-party vendor data.
Any Fund that does not primarily hold highly liquid
investments must, among other things, determine a minimum percentage of Fund assets that must be invested in highly liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, each Fund primarily held Highly
Liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.
The Liquidity Rule also limits a Fund’s investments in
Illiquid investments. Specifically, the Liquidity Rule prohibits a Fund from acquiring Illiquid investments if doing so would result in the Fund holding more than 15% of its net assets in Illiquid investments, and requires certain reporting to the
Fund Board and the Securities and Exchange Commission any time a Fund’s holdings of Illiquid investments exceeds 15% of net assets. During the Review Period, no Fund exceeded the 15% limit on Illiquid investments.
Nuveen:
Serving Investors for Generations
Since 1898, financial professionals 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 professional, 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/mutual-funds
Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive |
Chicago, IL 60606 | www.nuveen.com MSA-FSLCT-0420P1210966-INV-B-06/21
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 registrant.
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 registrant.
Item 8. Portfolio Managers of Closed-End Management
Investment Companies.
Not applicable to this registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to this registrant.
Item 10. Submission of Matters to a Vote of Security
Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the
registrants Board implemented after the registrant last provided disclosure in response to this Item.
Item 11. Controls and
Procedures.
(a) |
The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the
registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of a
date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940
Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the Exchange Act) (17 CFR 240.13a-15(b) or
240.15d-15(b)). |
(b) |
There were no changes in the registrants internal control over financial reporting (as defined in Rule
30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants
internal control over financial reporting. |
Item 12. 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 to this registrant.
(a)(4) Change in the registrants independent public accountant. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required
by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an
Exhibit. A certification furnished pursuant to this paragraph will not be deemed filed for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be
deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the 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 Investment Funds, Inc.
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By |
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(Signature and Title) |
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/s/ Christopher M. Rohrbacher |
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Christopher M. Rohrbacher
Vice President and Secretary |
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Date: July 7, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
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By |
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(Signature and Title) |
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/s/ Greg A. Bottjer |
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Greg A. Bottjer
Chief Administrative Officer
(principal executive officer) |
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Date: July 7, 2020
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By |
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(Signature and Title) |
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/s/ E. Scott Wickerham |
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E. Scott Wickerham
Vice President and Controller
(principal financial officer) |
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Date: July 7, 2020