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~</div><div style="display:none">~ http://www.nuveen.com/role/ExpenseExampleNuveenSmallCapSelectFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/ExpenseExampleNoRedemptionNuveenSmallCapSelectFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/AnnualTotalReturnsBarChartNuveenSmallCapSelectFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/AverageAnnualTotalReturnsTransposedNuveenSmallCapSelectFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/ShareholderFeesNuveenSmallCapValueFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/AnnualFundOperatingExpensesNuveenSmallCapValueFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/ExpenseExampleNuveenSmallCapValueFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/ExpenseExampleNoRedemptionNuveenSmallCapValueFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/AnnualTotalReturnsBarChartNuveenSmallCapValueFund column period compact * ~</div><div style="display:none">~ http://www.nuveen.com/role/AverageAnnualTotalReturnsTransposedNuveenSmallCapValueFund column period compact * ~</div>The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).Includes interest expense and fees related to Fund borrowing arrangements.Fee Waivers and/or Expense Reimbursements have been restated to reflect current fees.The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 0.74% 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 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.The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 0.92% 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 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.The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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.The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 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.The performance of the other share classes will differ due to their different expense structures.An index that measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values.Represents the average annualized total return for all reporting funds in the Lipper Equity Income Funds Category.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.Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Value Funds Category.An unmanaged index generally considered representative of the U.S. stock market.Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Core Funds Category.An index that measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values.Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Growth Funds Category.An index that measures the performance of those Russell 2000® companies with higher price-to-book ratios and higher forecasted growth values.Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Growth Funds Category.An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® 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.Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Category.An index that measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values.Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Value Funds Category. 0000820892 2021-02-26 2021-02-26 0000820892 nifi:S000005579Member 2021-02-26 2021-02-26 0000820892 nifi:S000005556Member 2021-02-26 2021-02-26 0000820892 nifi:S000005551Member 2021-02-26 2021-02-26 0000820892 nifi:S000005553Member 2021-02-26 2021-02-26 0000820892 nifi:S000005567Member 2021-02-26 2021-02-26 0000820892 nifi:S000005569Member 2021-02-26 2021-02-26 0000820892 nifi:S000005570Member 2021-02-26 2021-02-26 0000820892 nifi:C000015208Member nifi:S000005579Member 2021-02-26 2021-02-26 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As filed with the Securities and Exchange Commission on February 26, 2021
1933 Act Registration
No. 033-16905
1940 Act Registration
No. 811-05309
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Form
N-1A
 
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
  
☐
Pre-Effective
Amendment No.
        
  
☐
Post-Effective Amendment No. 245
  
☑
and/or
  
 
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
  
 
Amendment No. 245
  
☑
 
 
Nuveen Investment Funds, Inc.
(Exact Name of Registrant as Specified in Charter)
 
333 West Wacker Drive, Chicago, Illinois
  
60606
(Address of Principal Executive Offices)
  
(Zip Code)
Registrant’s Telephone Number, Including Area Code: (312) 917-7700
 
Mark J. Czarniecki
Vice President and Secretary
901 Marquette Avenue
Minneapolis, MN 55402
(Name and Address of Agent for Service)
  
Copies to:
Eric F. Fess
Chapman and Cutler LLP
111 West Monroe Street
Chicago, Illinois 60603
Approximate Date of Proposed Public Offering:
As soon as practicable after effectiveness.
Title of Securities Being Registered:
Common Stock.
It is proposed that this filing will become effective (check appropriate box):
 
☒
 
immediately upon filing pursuant to paragraph (b)
 
☐
 
on (date) pursuant to paragraph (a)(1)
☐
 
on (date) pursuant to paragraph (b)
 
☐
 
75 days after filing pursuant to paragraph (a)(2)
☐
 
60 days after filing pursuant to paragraph (a)(1)
 
☐
 
on (date) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
 
☐
This post-effective amendment designates a new effective date for a previously filed post-effective amendment.
 
 
 
 
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 245
This Post-Effective Amendment to the Registration Statement comprises the following papers and contents:
The Facing Sheet
  
Part A—The Prospectus for Nuveen Dividend Value Fund
, 
Nuveen Large Cap Select Fund
, 
Nuveen Mid Cap Growth Opportunities Fund
, 
Nuveen Mid Cap Value Fund
, 
Nuveen Small Cap Growth Opportunities Fund
, 
Nuveen Small Cap Select Fund
 
and
 
Nuveen Small Cap Value Fund.
 
Part B—The Statement of Additional Information for Nuveen Dividend Value Fund
, 
Nuveen Large Cap Select Fund
, 
Nuveen Mid Cap Growth Opportunities Fund
, 
Nuveen Mid Cap Value Fund
, 
Nuveen Small Cap Growth Opportunities Fund
, 
Nuveen Small Cap Select Fund
 
and
 
Nuveen Small Cap Value Fund.
 
Part C—Other Information
  
Signatures
  
Exhibit Index
  
Exhibits
  
 
 
 
 
 
 
IMG_FF81DA7520CE4.JPG
 
Mutual Funds
 
26 February
2021
 
 
 
 
 
 
Fund Name
Class A
Class C
Class R3
Class R6
Class I
Nuveen Dividend Value Fund
FFEIX
FFECX
FEISX
FFEFX
FAQIX
Nuveen Large Cap Select Fund
FLRAX
FLYCX
—
—
FLRYX
Nuveen Mid Cap Growth Opportunities Fund
FRSLX
FMECX
FMEYX
FMEFX
FISGX
Nuveen Mid Cap Value Fund
FASEX
FACSX
FMVSX
FMVQX
FSEIX
Nuveen Small Cap Growth Opportunities Fund
FRMPX
FMPCX
FMPYX
FMPFX
FIMPX
Nuveen Small Cap Select Fund
EMGRX
FHMCX
ASEIX
ASEFX
ARSTX
Nuveen Small Cap Value Fund
FSCAX
FSCVX
FSVSX
FSCWX
FSCCX
 
The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will not be sent to you 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.
You may elect to receive shareholder reports and other communications from the Funds electronically at any time 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.
Prospectus
   
 
Table of Contents
   
 
Section 1
 
Fund Summaries
Section 2
 
How We Manage Your Money
     
47
Section 3
 
How
You Can Buy and Sell Shares
     
63
     
64
     
66
Section 4
 
General Information
     
72
     
73
Section 5
 
Financial Highlights
Appendix—Variations in Sales Charge Reductions and
Waivers Available Through Certain Intermediaries
 
A-1
   
 
 
NOT FDIC OR GOVERNMENT INSURED
 
MAY LOSE VALUE
 
 
NO BANK GUARANTEE
Section 1
Fund Summaries
Nuveen Dividend Value Fund
Investment Objective
The investment objective of the Fund is long-term growth of capital and income.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in “How You Can Buy and Sell Shares” on page 56 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-69 of the Fund’s statement of additional information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in the appendix to the Fund’s prospectus entitled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
The tables and examples below do not reflect any commissions that shareholders may be required to pay directly to their financial intermediaries when buying or selling Class I shares.
Shareholder Fees
(fees paid directly from your investment)
                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
5.75%
 
None
 
None
 
None
 
None
 
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
None
 
1.00%
 
None
 
None
 
None
 
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
None
 
None
 
None
 
None
 
None
 
Exchange Fee
None
 
None
 
None
 
None
 
None
 
Annual Low Balance Account Fee (for accounts under $1,000)
2
$15
 
$15
 
None
 
None
 
$15
 
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
                                         
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Management Fees
 
0.64
%
 
0.64
%
 
0.64
%
 
0.64
%
 
0.64
%
Distribution and/or Service (12b-1) Fees
 
0.25
%
 
1.00
%
 
0.50
%
 
0.00
%
 
0.00
%
Other Expenses
 
0.20
%
 
0.20
%
 
0.20
%
 
0.06
%
 
0.20
%
Total Annual Fund Operating Expenses
 
1.09
%
 
1.84
%
 
1.34
%
 
0.70
%
 
0.84
%
Fee Waivers and/or Expense Reimbursements
3,4
 
(0.12
)%
 
(0.12
)%
 
(0.12
)%
 
(0.12
)%
 
(0.12
)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
 
0.97
%
 
1.72
%
 
1.22
%
 
0.58
%
 
0.72
%
1
 
The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.
2
 
Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3
 
Fee Waivers and/or Expense Reimbursements have been restated to reflect current fees.
4
 
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 0.74% 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 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.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a period. The example also assumes that your investment has a 5% return each year, that the Fund’s operating expenses remain the same and that the fee waivers currently in place are not renewed beyond July 31, 2022. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
   
2
Section 1
Fund Summaries
                                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
1 Year
$
668
 
$
175
 
$
124
 
$
59
 
$
74
 
3 Years
$
886
 
$
562
 
$
408
 
$
207
 
$
251
 
5 Years
$
1,126
 
$
980
 
$
718
 
$
373
 
$
449
 
10 Years
$
1,813
 
$
2,144
 
$
1,598
 
$
854
 
$
1,021
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 117% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in equity securities. In selecting securities, the Fund’s sub-adviser will invest in companies that it believes have the ability to pay above average dividends and finance expected growth and are trading at attractive valuations. The Fund’s sub-adviser will generally sell a security if the security is no longer expected to meet the sub-adviser’s dividend or growth expectations or if a better alternative exists in the marketplace.
The Fund will attempt to maintain a dividend that will grow over time. As a result, higher-yielding equity securities will generally represent the core holdings of the Fund. However, the Fund also may invest in lower-yielding, higher-growth equity securities if the sub-adviser believes they will help balance the portfolio. The Fund’s equity securities include common stocks, convertible preferred stocks, and corporate debt securities that are convertible into common stocks. All such equity securities will provide current income at the time of purchase.
The Fund invests in convertible securities in pursuit of both long-term growth of capital and income. The securities’ conversion features provide long-term growth potential, while interest payments on the securities provide income. The Fund may invest in convertible securities without regard to their ratings, and therefore may hold convertible securities which are rated lower than investment grade.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
The Fund may utilize options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts (“
derivatives
”). The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
Principal Risks
The value of your investment in this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund listed below are presented alphabetically to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.
Active Management Risk
—The Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the Fund is subject to the risk that the investment techniques and risk analyses employed by the Fund’s sub-adviser may not produce the desired results. This could cause the Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
Convertible Security Risk
—Convertible securities are subject to certain risks of both equity and debt securities. The value of convertible securities may decline in response to such factors as rising interest rates and fluctuations in the market price of the common stock underlying the convertible securities.
Credit Risk
—Credit risk is the risk that an issuer or other obligated party of a debt security may be unable or unwilling to make interest and principal payments when due and the related risk that the value of a debt security may decline because of concerns about the issuer’s ability or willingness to make such payments.
   
Section 1
Fund Summaries
3
Currency Risk
—Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund’s portfolio.
Cybersecurity Risk
—Cybersecurity risk is the risk of an unauthorized breach and access to Fund assets, customer data (including private shareholder information), or proprietary information, or the risk of an incident occurring that causes the Fund, its investment adviser or sub-adviser, custodian, transfer agent, distributor or other service provider or a financial intermediary to suffer a data breach, data corruption or lose operational functionality. Successful cyber-attacks or other cyber-failures or events affecting the Fund or its service providers may adversely impact the Fund or its shareholders. Additionally, a cybersecurity breach could affect the issuers in which the Fund invests, which may cause the Fund’s investments to lose value.
Derivatives Risk
—The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.
Dividend-Paying Security Risk
—The Fund’s investment in dividend-paying stocks could cause the Fund to underperform similar funds that invest without consideration of a company’s track record of paying dividends. Stocks of companies with a history of paying dividends may not participate in a broad market advance to the same degree as most other stocks, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. There is no guarantee that the issuers of the stocks held by the Fund will declare dividends in the future or that, if declared, they will remain at their current levels or increase over time.
Emerging Markets Risk
—The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries and their economies may be based on only a few industries. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may have lower overall liquidity than those of issuers in more developed countries. Financial and other reporting by companies and government entities also may be less reliable or difficult to obtain in emerging market countries. In addition, foreign investors such as the Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims and regulatory actions that are available in the U.S. may be difficult or impossible to pursue in emerging market countries.
Equity Security Risk
—Equity securities in the Fund’s portfolio may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. Given the Fund's focus on dividend-paying securities, the Fund may, from time to time, have a greater exposure to higher dividend-yield sectors and industries than the broad equity market which would make the Fund more vulnerable to adverse developments affecting such sectors or industries.
Financial Services Sector Risk
—The Fund currently invests a significant portion of its assets in the financial services sector, although this may change over time. Financial services companies are particularly sensitive to the adverse effects of economic recession; changes in government regulation; the availability of capital; volatile interest rates; and the health of the commercial and residential real estate markets.
Foreign Investment Risk
—Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to those of issuers located in or that principally operate in the United States as a result of, among other things, political, social and economic developments abroad and different legal, regulatory and tax environments. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it may be more susceptible to adverse conditions affecting that country or region.
Frequent Trading Risk
—The Fund's portfolio turnover rate may exceed 100%. Frequent trading of portfolio securities may produce capital gains, which are taxable to shareholders when distributed. Frequent trading may also increase the
   
4
Section 1
Fund Summaries
amount of commissions or mark-ups to broker-dealers that the Fund pays when it buys and sells securities, which may detract from the Fund’s performance.
High Yield Securities Risk
—High yield securities, which are rated below investment grade and commonly referred to as “junk” bonds, are high risk investments that may cause income and principal losses for the Fund. They generally are considered to be speculative with respect to the ability to pay interest and repay principal, have greater credit risk, are less liquid and have more volatile prices than investment grade securities.
Interest Rate Risk
—Interest rate risk is the risk that the value of the Fund’s fixed-rate securities will decline because of rising interest rates. Very low or negative interest rates may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, result in heightened market volatility and detract from the Fund’s performance to the extent that it is exposed to such interest rates. Fixed-rate securities may be subject to a greater risk of rising interest rates than would normally be the case due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. When interest rates change, the values of longer-duration fixed-rate securities usually change more than the values of shorter-duration fixed-rate securities. Conversely, fixed-rate securities with shorter durations or maturities will be less volatile but may provide lower returns than fixed-rate securities with longer durations or maturities. Rising interest rates also may lengthen the duration of securities with call features, since exercise of the call becomes less likely as interest rates rise, which in turn will make the securities more sensitive to changes in interest rates and result in even steeper price declines in the event of further interest rate increases.
Market Risk
—The market value of the Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time, due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact the value of the Fund’s investments whether or not the Fund invests in such country or region. Events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may have a severe negative impact on the global economy, could cause financial markets to experience extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments.
Fund Performance
The following bar chart and table provide some indication of the potential risks of investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at www.nuveen.com/performance or by calling (800) 257-8787.
   
Section 1
Fund Summaries
5
The bar chart below shows the variability of the Fund’s performance from year to year for Class A shares. The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were reflected, the returns would be less than those shown.
 
 
Class A Annual Total Return*
PERFORMANCEBARCHARTDATA(2011:2.14,2012:14.32,2013:30.37,2014:8.41,2015:-5,2016:18.07,2017:17.05,2018:-9.35,2019:26.12,2020:-4.5)
*
 
 
The performance of the other share classes will differ due to their different expense structures.
During the ten-year period ended
December 31, 2020
, the Fund’s highest and lowest quarterly returns were 15.48%
and -29.03%, respectively, for the quarters ended December 31, 2020 and March 31, 2020.
The table below shows the variability of the Fund’s average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Your own actual after-tax returns will depend on your specific tax situation and may differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs or employer-sponsored retirement plans.
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers, if any, in effect during the periods presented. If any such waivers had not been in place, returns would have been reduced.
                                 
 
 
 
 
 
Average Annual Total Returns
 
 
 
 
 
for the Periods Ended
 
 
 
 
 
December 31, 2020
 
 
Inception
Date
1 Year
5 Years
10 Years
Since
Inception
(Class R6)
Class A (return before taxes)
 
12/18/92
 
 
(10.00
)%
 
7.29
%
 
8.34
%
 
N/A
 
Class A (return after taxes on distributions)
 
 
 
 
(10.41
)%
 
4.93
%
 
6.26
%
 
N/A
 
Class A (return after taxes on distributions and sale of Fund shares)
 
 
 
 
(5.72
)%
 
5.44
%
 
6.43
%
 
N/A
 
Class C (return before taxes)
 
2/1/99
 
 
(5.24
)%
 
7.76
%
 
8.18
%
 
N/A
 
Class R3 (return before taxes)
 
9/24/01
 
 
(4.76
)%
 
8.30
%
 
8.73
%
 
N/A
 
Class R6 (return before taxes)
 
2/28/13
 
 
(4.13
)%
 
9.00
%
 
N/A
 
 
9.04
%
Class I (return before taxes)
 
8/2/94
 
 
(4.26
)%
 
8.85
%
 
9.26
%
 
N/A
 
Russell 1000
®
Value Index
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for fees, expenses or taxes)
 
 
 
 
2.80
%
 
9.74
%
 
10.50
%
 
10.13
%
Lipper Equity Income Funds Category Average
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for taxes or sales loads)
 
 
 
 
4.43
%
 
9.90
%
 
9.80
%
 
9.68
%
   
                                 
1
An index that measures the performance of those Russell 1000
®
companies with lower price-to-book ratios and lower forecasted growth values.
2
Represents the average annualized total return for all reporting funds in the Lipper Equity Income Funds Category.
   
6
Section 1
Fund Summaries
Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Managers
     
Name
Title
Portfolio Manager of Fund Since
David A. Chalupnik, CFA
Managing Director
October 2015
Evan F. Staples, CFA
Managing Director
March 2019
Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day through a financial advisor or other financial intermediary. The Fund’s initial and subsequent investment minimums generally are as follows, although certain financial intermediaries may impose their own investment minimums and the Fund may reduce or waive the minimums in some cases:
         
 
Class A and Class C
Class R3
Class R6
Class I
Eligibility and Minimum Initial Investment
$3,000 for all accounts except:
•
 
$2,500 for Traditional/
Roth IRA accounts.
•
 
$2,000 for Coverdell
Education Savings
Accounts.
•
 
$250 for accounts opened through fee-based programs.
•
 
No minimum for retirement plans.
Available only through certain retirement plans.
No minimum.
Available only to certain qualified retirement plans and other investors as described in the prospectus and through fee-based programs.
$1 million for all accounts except:
•
 
$100,000 for clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services.
•
 
No minimum for certain qualified retirement plans and certain other categories of eligible investors as described in the prospectus.
Available only through fee-based programs and certain retirement plans, and to other limited categories of investors as described in the prospectus.
$100,000 for all accounts except:
•
 
$250 for clients of financial intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
•
 
No minimum for eligible retirement plans and certain other categories of eligible investors as described in the prospectus.
Minimum
Additional
Investment
$100
No minimum.
No minimum.
No minimum.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
   
Section 1
Fund Summaries
7
Nuveen Large Cap Select Fund
Investment Objective
The investment objective of the Fund is capital appreciation.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in “How You Can Buy and Sell Shares” on page 56 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-69 of the Fund’s statement of additional information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in the appendix to the Fund’s prospectus entitled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
The tables and examples below do not reflect any commissions that shareholders may be required to pay directly to their financial intermediaries when buying or selling Class I shares.
Shareholder Fees
(fees paid directly from your investment)
                 
     
Class A
 
Class C
 
Class I
 
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   
5.75%
 
None
 
None
 
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
   
None
 
1.00%
 
None
 
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
   
None
 
None
 
None
 
Exchange Fee
   
None
 
None
 
None
 
Annual Low Balance Account Fee (for accounts under $1,000)
2
   
$15
 
$15
 
$15
 
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
                                 
     
Class A
 
Class C
 
Class I
 
Management Fees
       
0.70
%
 
0.70
%
 
0.70
%
Distribution and/or Service (12b-1) Fees
       
0.25
%
 
1.00
%
 
0.00
%
Other Expenses
                       
Interest and Related Expenses
3
       
0.01
%
 
0.01
%
 
0.01
%
Remainder of Other Expenses
       
0.34
%
 
0.34
%
 
0.34
%
Total Annual Fund Operating Expenses
       
1.30
%
 
2.05
%
 
1.05
%
Fee Waivers and/or Expense Reimbursements
4,5
       
(0.24
)%
 
(0.24
)%
 
(0.24
)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
       
1.06
%
 
1.81
%
 
0.81
%
1
 
The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.
2
 
Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3
 
Includes interest expense and fees related to Fund borrowing arrangements.
4
 
Fee Waivers and/or Expense Reimbursements have been restated to reflect current fees.
5
 
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a period. The example also assumes that your investment has a 5% return each year, that the Fund’s operating expenses remain the same and that the fee waivers currently in place are not renewed beyond July 31, 2022. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
   
8
Section 1
Fund Summaries
                           
     
Class A
 
Class C
 
Class I
 
1 Year
     
$
677
 
$
184
 
$
83
 
3 Years
     
$
931
 
$
610
 
$
300
 
5 Years
     
$
1,216
 
$
1,072
 
$
546
 
10 Years
     
$
2,024
 
$
2,352
 
$
1,252
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 101% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of large-capitalization companies, defined as companies that have market capitalizations of $5 billion or greater.
The sub-adviser will select companies based on a combination of value and growth objectives, seeking companies that meet at least two of the following criteria:
·
 
Attractively valued relative to other companies in the same industry or market.
·
 
Strong or improving cash flows, revenue and earnings growth, or other fundamentals.
·
 
Strong competitive position.
·
 
An identifiable catalyst that could increase the value of the company’s stock over the next one or two years.
The Fund’s sub-adviser will generally sell a stock if the stock hits its price target, the company’s fundamentals or competitive position significantly deteriorate, or if a better alternative exists in the marketplace.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
The Fund may utilize options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts (“
derivatives
”). The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
Principal Risks
The value of your investment in this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund listed below are presented alphabetically to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.
Active Management Risk
—The Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the Fund is subject to the risk that the investment techniques and risk analyses employed by the Fund’s sub-adviser may not produce the desired results. This could cause the Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
Currency Risk
—Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund’s portfolio.
Cybersecurity Risk
—Cybersecurity risk is the risk of an unauthorized breach and access to Fund assets, customer data (including private shareholder information), or proprietary information, or the risk of an incident occurring that causes the Fund, its investment adviser or sub-adviser, custodian, transfer agent, distributor or other service provider or a financial intermediary to suffer a data breach, data corruption or lose operational functionality. Successful cyber-attacks or other
   
Section 1
Fund Summaries
9
cyber-failures or events affecting the Fund or its service providers may adversely impact the Fund or its shareholders. Additionally, a cybersecurity breach could affect the issuers in which the Fund invests, which may cause the Fund’s investments to lose value.
Derivatives Risk
—The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.
Emerging Markets Risk
—The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries and their economies may be based on only a few industries. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may have lower overall liquidity than those of issuers in more developed countries. Financial and other reporting by companies and government entities also may be less reliable or difficult to obtain in emerging market countries. In addition, foreign investors such as the Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims and regulatory actions that are available in the U.S. may be difficult or impossible to pursue in emerging market countries.
Equity Security Risk
—Equity securities in the Fund’s portfolio may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. From time to time, the Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries.
Foreign Investment Risk
—Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to those of issuers located in or that principally operate in the United States as a result of, among other things, political, social and economic developments abroad and different legal, regulatory and tax environments. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it may be more susceptible to adverse conditions affecting that country or region.
Frequent Trading Risk
—The Fund's portfolio turnover rate may exceed 100%. Frequent trading of portfolio securities may produce capital gains, which are taxable to shareholders when distributed. Frequent trading may also increase the amount of commissions or mark-ups to broker-dealers that the Fund pays when it buys and sells securities, which may detract from the Fund’s performance.
Information Technology Sector Risk
—The Fund currently invests a significant portion of its assets in the information technology sector, although this may change over time. The information technology sector can be significantly affected by changes in, among other things, the supply and demand for specific products and services, the pace of technological development and product obsolescence, market competition, government regulation, and patent and intellectual property rights.
Large-Cap Company Risk
—Because it invests primarily in securities of large-capitalization companies, the Fund may underperform funds that invest primarily in securities of smaller capitalization companies during periods when the securities of such companies are in favor.
Market Risk
—The market value of the Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time, due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact the value of the Fund’s investments whether or not the Fund invests in such country or region. Events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may have a severe negative impact on the global economy, could cause financial markets to experience extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments.
   
10
Section 1
Fund Summaries
Fund Performance
The following bar chart and table provide some indication of the potential risks of investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at www.nuveen.com/performance or by calling (800) 257-8787.
The bar chart below shows the variability of the Fund’s performance from year to year for Class A shares. The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were reflected, the returns would be less than those shown.
 
Class A Annual Total Return*
PERFORMANCEBARCHARTDATA(2011:-8.49,2012:18.26,2013:37.59,2014:10.03,2015:-1.8,2016:14.87,2017:24.65,2018:-7.89,2019:30.98,2020:12.34)
*
 
 
The performance of the other share classes will differ due to their different expense structures.
During the ten-year period ended December 31, 2020, the Fund’s highest and lowest quarterly returns were 18.17%
and -21.33%, respectively, for the quarters ended June 30, 2020 and March 31, 2020.
The table below shows the variability of the Fund’s average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Your own actual after-tax returns will depend on your specific tax situation and may differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs or employer-sponsored retirement plans.​​​​​​​
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers, if any, in effect during the periods presented. If any such waivers had not been in place, returns would have been reduced.
                     
 
 
Average Annual Total Returns
 
 
for the Periods Ended
 
 
December 31, 2020
 
 
1 Year
5 Years
10 Years
Class A (return before taxes)
 
5.89
%
 
12.84
%
 
11.39
%
Class A (return after taxes on distributions)
 
5.70
%
 
12.38
%
 
11.14
%
Class A (return after taxes on distributions and sale of Fund shares)
 
3.62
%
 
10.12
%
 
9.41
%
Class C (return before taxes)
 
11.45
%
 
13.32
%
 
11.21
%
Class I (return before taxes)
 
12.63
%
 
14.46
%
 
12.33
%
S&P 500
®
Index
1
 
 
 
 
 
 
 
 
 
(reflects no deduction for fees, expenses or taxes)
 
18.40
%
 
15.22
%
 
13.88
%
Lipper Large-Cap Core Funds Category Average
2
 
 
 
 
 
 
 
 
 
(reflects no deduction for taxes or sales loads)
 
16.68
%
 
13.66
%
 
12.38
%
 
                     
1
An unmanaged index generally considered representative of the U.S. stock market.
2
Represents the average annualized total return for all reporting funds in the Lipper Large-Cap Core Funds Category.
   
Section 1
Fund Summaries
11
Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Managers
     
Name
Title
Portfolio Manager of Fund Since
David A. Chalupnik, CFA
Senior Managing Director
January 2003
Evan F. Staples, CFA
Managing Director
April 2017
Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day through a financial advisor or other financial intermediary. The Fund’s initial and subsequent investment minimums generally are as follows, although certain financial intermediaries may impose their own investment minimums and the Fund may reduce or waive the minimums in some cases:
       
 
Class A and Class C
 
Class I
Eligibility and Minimum Initial Investment
$3,000 for all accounts except:
•
 
$2,500 for Traditional/
Roth IRA accounts.
•
 
$2,000 for Coverdell
Education Savings
Accounts.
•
 
$250 for accounts opened through fee-based programs.
•
 
No minimum for retirement plans.
 
Available only through fee-based programs and certain retirement plans, and to other limited categories of investors as described in the prospectus.
$100,000 for all accounts except:
•
 
$250 for clients of financial intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
•
 
No minimum for eligible retirement plans and certain other categories of eligible investors as described in the prospectus.
Minimum Additional
Investment
$100
 
No minimum.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
   
12
Section 1
Fund Summaries
Nuveen Mid Cap Growth Opportunities Fund
Investment Objective
The investment objective of the Fund is capital appreciation.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in “How You Can Buy and Sell Shares” on page 56 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-69 of the Fund’s statement of additional information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in the appendix to the Fund’s prospectus entitled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
The tables and examples below do not reflect any commissions that shareholders may be required to pay directly to their financial intermediaries when buying or selling Class I shares.
Shareholder Fees
(fees paid directly from your investment)
                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
5.75%
 
None
 
None
 
None
 
None
 
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
None
 
1.00%
 
None
 
None
 
None
 
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
None
 
None
 
None
 
None
 
None
 
Exchange Fee
None
 
None
 
None
 
None
 
None
 
Annual Low Balance Account Fee (for accounts under $1,000)
2
$15
 
$15
 
None
 
None
 
$15
 
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
                                           
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Management Fees
 
0.79
%
 
0.79
%
 
0.79
%
 
0.79
%
 
0.79
%
Distribution and/or Service (12b-1) Fees
 
0.25
%
 
1.00
%
 
0.50
%
 
0.00
%
 
0.00
%
Other Expenses
 
0.20
%
 
0.20
%
 
0.20
%
 
0.09
%
 
0.20
%
Total Annual Fund Operating Expenses
 
1.24
%
 
1.99
%
 
1.49
%
 
0.88
%
 
0.99
%
Fee Waivers and/or Expense Reimbursements
3
 
(0.07
)%
 
(0.07
)%
 
(0.07
)%
 
(0.07
)%
 
(0.07
)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
 
1.17
%
 
1.92
%
 
1.42
%
 
0.81
%
 
0.92
%
1
 
The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.
2
 
Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3
 
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 0.92% 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 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.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a period. The example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that the fee waivers currently in place are not renewed beyond July 31, 2022. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
   
Section 1
Fund Summaries
13
                                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
1 Year
$
687
 
$
195
 
$
145
 
$
83
 
$
94
 
3 Years
$
936
 
$
615
 
$
461
 
$
271
 
$
305
 
5 Years
$
1,208
 
$
1,063
 
$
804
 
$
478
 
$
537
 
10 Years
$
1,980
 
$
2,309
 
$
1,771
 
$
1,075
 
$
1,204
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 89% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of mid-capitalization companies. Mid-capitalization companies are defined as companies that have market capitalizations within the market capitalization range of the companies in the Russell Midcap
®
Index on the last business day of the month in which its most recent reconstitution was completed. Reconstitution of the index currently is completed in June of each year. On June 30, 2020, the range of the index was $557 million to $48 billion.
In selecting stocks, the Fund’s sub-adviser invests in companies that it believes exhibit the potential for superior growth based on factors such as above-average growth in revenue and earnings, strong competitive position, strong management, and sound financial condition. The Fund’s sub-adviser will generally sell a stock if the stock hits its price target, the company’s fundamentals or competitive position significantly deteriorate, or if a better alternative exists in the marketplace.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
The Fund may utilize options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts (“
derivatives
”). The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
Principal Risks
The value of your investment in this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund listed below are presented alphabetically to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.
Active Management Risk
—The Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the Fund is subject to the risk that the investment techniques and risk analyses employed by the Fund’s sub-adviser may not produce the desired results. This could cause the Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
Currency Risk
—Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund’s portfolio.
Cybersecurity Risk
—Cybersecurity risk is the risk of an unauthorized breach and access to Fund assets, customer data (including private shareholder information), or proprietary information, or the risk of an incident occurring that causes the Fund, its investment adviser or sub-adviser, custodian, transfer agent, distributor or other service provider or a financial intermediary to suffer a data breach, data corruption or lose operational functionality. Successful cyber-attacks or other cyber-failures or events affecting the Fund or its service providers may adversely impact the Fund or its shareholders.
   
14
Section 1
Fund Summaries
Additionally, a cybersecurity breach could affect the issuers in which the Fund invests, which may cause the Fund’s investments to lose value.
Derivatives Risk
—The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.
Emerging Markets Risk
—The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries and their economies may be based on only a few industries. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may have lower overall liquidity than those of issuers in more developed countries. Financial and other reporting by companies and government entities also may be less reliable or difficult to obtain in emerging market countries. In addition, foreign investors such as the Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims and regulatory actions that are available in the U.S. may be difficult or impossible to pursue in emerging market countries.
Equity Security Risk
—Equity securities in the Fund’s portfolio may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. From time to time, the Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries.
Foreign Investment Risk
—Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to those of issuers located in or that principally operate in the United States as a result of, among other things, political, social and economic developments abroad and different legal, regulatory and tax environments. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it may be more susceptible to adverse conditions affecting that country or region.
Growth Stock Risk
—Growth stocks tend to be more volatile than certain other types of stocks and their prices usually fluctuate more dramatically than the overall stock market. A stock with growth characteristics can have sharp price declines due to decreases in current or expected earnings and may lack dividends that can help cushion its share price in a declining market.
Health Care Sector Risk
—The Fund currently invests a significant portion of its assets in the health care sector, although this may change over time. Health care companies may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services, changes in patent and intellectual property rights and product liability claims, among other factors.
Information Technology Sector Risk
—The Fund currently invests a significant portion of its assets in the information technology sector, although this may change over time. The information technology sector can be significantly affected by changes in, among other things, the supply and demand for specific products and services, the pace of technological development and product obsolescence, market competition, government regulation, and patent and intellectual property rights.
Market Risk
—The market value of the Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time, due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact the value of the Fund’s investments whether or not the Fund invests in such country or region. Events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may have a severe negative impact on the global economy, could cause financial markets to experience extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments.
   
Section 1
Fund Summaries
15
Mid-Cap Company Risk
—Securities of mid-cap companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or broader market averages in general.
Fund Performance
The following bar chart and table provide some indication of the potential risks of investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at www.nuveen.com/performance or by calling (800) 257-8787.
The bar chart below shows the variability of the Fund’s performance from year to year for Class A shares. The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were reflected, the returns would be less than those shown.
 
Class A Annual Total Return*
PERFORMANCEBARCHARTDATA(2011:-2.95,2012:14.83,2013:36.52,2014:8.32,2015:-0.99,2016:1.17,2017:24.47,2018:-9.13,2019:33.4,2020:45.95)
*
 
 
The performance of the other share classes will differ due to their different expense structures.
During the ten-year period ended December 31, 2020, the Fund’s highest and lowest quarterly returns were 32.26%
and -19.08%, respectively, for the quarters ended June 30, 2020 and December 31, 2018.
The table below shows the variability of the Fund’s average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary.​​​​​​​ Your own actual after-tax returns will depend on your specific tax situation and may differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs or employer-sponsored retirement plans.
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers, if any, in effect during the periods presented. If any such waivers had not been in place, returns would have been reduced.
   
16
Section 1
Fund Summaries
                                 
 
 
 
 
 
Average Annual Total Returns
 
 
 
 
 
for the Periods Ended
 
 
 
 
 
December 31, 2020
 
 
Inception
Date
1 Year
5 Years
10 Years
Since
Inception
(Class R6)
Class A (return before taxes)
 
1/9/95
 
 
37.57
%
 
16.00
%
 
13.11
%
 
N/A
 
Class A (return after taxes on distributions)
 
 
 
 
33.31
%
 
11.65
%
 
9.54
%
 
N/A
 
Class A (return after taxes on distributions and sale of Fund shares)
 
 
 
 
24.79
%
 
11.50
%
 
9.58
%
 
N/A
 
Class C (return before taxes)
 
9/24/01
 
 
44.87
%
 
16.50
%
 
12.93
%
 
N/A
 
Class R3 (return before taxes)
 
12/11/00
 
 
45.57
%
 
17.09
%
 
13.49
%
 
N/A
 
Class R6 (return before taxes)
 
2/28/13
 
 
46.43
%
 
17.82
%
 
N/A
 
 
15.85
%
Class I (return before taxes)
 
12/28/89
 
 
46.33
%
 
17.68
%
 
14.06
%
 
N/A
 
Russell Midcap
®
Growth Index
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for fees, expenses or taxes)
 
 
 
 
35.59
%
 
18.66
%
 
15.04
%
 
16.57
%
Lipper Mid-Cap Growth Funds Category Average
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for taxes or sales loads)
 
 
 
 
41.42
%
 
18.85
%
 
14.53
%
 
16.30
%
   
                                 
1
An index that measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap
®
Index companies with higher price-to-book ratios and higher forecasted growth values.
2
Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Growth Funds Category.
Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Managers
     
Name
Title
Portfolio Manager of Fund Since
Gregory J. Ryan, CFA
Managing Director
March 2019
Bihag N. Patel, CFA
Managing Director
February 2020
   
Section 1
Fund Summaries
17
Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day through a financial advisor or other financial intermediary. The Fund’s initial and subsequent investment minimums generally are as follows, although certain financial intermediaries may impose their own investment minimums and the Fund may reduce or waive the minimums in some cases:
         
 
Class A and Class C
Class R3
Class R6
Class I
Eligibility and Minimum Initial Investment
$3,000 for all accounts except:
•
 
$2,500 for Traditional/
Roth IRA accounts.
•
 
$2,000 for Coverdell
Education Savings
Accounts.
•
 
$250 for accounts opened through fee-based programs.
•
 
No minimum for retirement plans.
Available only through certain retirement plans.
No minimum.
Available only to certain qualified retirement plans and other investors as described in the prospectus and through fee-based programs.
$1 million for all accounts except:
•
 
$100,000 for clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services.
•
 
No minimum for certain qualified retirement plans and certain other categories of eligible investors as described in the prospectus.
Available only through fee-based programs and certain retirement plans, and to other limited categories of investors as described in the prospectus.
$100,000 for all accounts except:
•
 
$250 for clients of financial intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
•
 
No minimum for eligible retirement plans and certain other categories of eligible investors as described in the prospectus.
Minimum
Additional
Investment
$100
No minimum.
No minimum.
No minimum.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
   
18
Section 1
Fund Summaries
Nuveen Mid Cap Value Fund
Investment Objective
The investment objective of the Fund is capital appreciation.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in “How You Can Buy and Sell Shares” on page 56 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-69 of the Fund’s statement of additional information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in the appendix to the Fund’s prospectus entitled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
The tables and examples below do not reflect any commissions that shareholders may be required to pay directly to their financial intermediaries when buying or selling Class I shares.
Shareholder Fees
(fees paid directly from your investment)
                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
5.75%
 
None
 
None
 
None
 
None
 
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
None
 
1.00%
 
None
 
None
 
None
 
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
None
 
None
 
None
 
None
 
None
 
Exchange Fee
None
 
None
 
None
 
None
 
None
 
Annual Low Balance Account Fee (for accounts under $1,000)
2
$15
 
$15
 
None
 
None
 
$15
 
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
                                           
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Management Fees
 
0.79
%
 
0.79
%
 
0.79
%
 
0.79
%
 
0.79
%
Distribution and/or Service (12b-1) Fees
 
0.25
%
 
1.00
%
 
0.50
%
 
0.00
%
 
0.00
%
Other Expenses
 
0.23
%
 
0.23
%
 
0.23
%
 
0.10
%
 
0.23
%
Total Annual Fund Operating Expenses
 
1.27
%
 
2.02
%
 
1.52
%
 
0.89
%
 
1.02
%
Fee Waivers and/or Expense Reimbursements
3
 
(0.10
)%
 
(0.10
)%
 
(0.10
)%
 
(0.11
)%
 
(0.10
)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
 
1.17
%
 
1.92
%
 
1.42
%
 
0.78
%
 
0.92
%
1
 
The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.
2
 
Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3
 
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 0.92% 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 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.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a period. The example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that the fee waivers currently in place are not renewed beyond July 31, 2022. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
   
Section 1
Fund Summaries
19
                                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
1 Year
$
687
 
$
195
 
$
145
 
$
80
 
$
94
 
3 Years
$
941
 
$
620
 
$
466
 
$
268
 
$
310
 
5 Years
$
1,219
 
$
1,075
 
$
815
 
$
478
 
$
549
 
10 Years
$
2,009
 
$
2,337
 
$
1,800
 
$
1,082
 
$
1,235
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 56% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of mid-capitalization companies. Mid-capitalization companies are defined as companies that have market capitalizations within the market capitalization range of the companies in the Russell Midcap
®
Index on the last business day of the month in which its most recent reconstitution was completed. Reconstitution of the index currently is completed in June of each year. On June 30, 2020, the range of the index was $557 million to $48 billion.
In selecting stocks, the Fund’s sub-adviser invests in companies that it believes are undervalued relative to other companies in the same industry or market, exhibit good or improving fundamentals, and exhibit an identifiable catalyst that could close the gap between market value and fair value over the next one to two years. The Fund’s sub-adviser will generally sell a stock if the stock hits its price target, the company’s fundamentals or competitive position significantly deteriorate, or if a better alternative exists in the marketplace.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
The Fund may utilize options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts (“
derivatives
”). The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
Principal Risks
The value of your investment in this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund listed below are presented alphabetically to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.
Active Management Risk
—The Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the Fund is subject to the risk that the investment techniques and risk analyses employed by the Fund’s sub-adviser may not produce the desired results. This could cause the Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
Currency Risk
—Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund’s portfolio.
Cybersecurity Risk
—Cybersecurity risk is the risk of an unauthorized breach and access to Fund assets, customer data (including private shareholder information), or proprietary information, or the risk of an incident occurring that causes the Fund, its investment adviser or sub-adviser, custodian, transfer agent, distributor or other service provider or a financial intermediary to suffer a data breach, data corruption or lose operational functionality. Successful cyber-attacks or other cyber-failures or events affecting the Fund or its service providers may adversely impact the Fund or its shareholders.
   
20
Section 1
Fund Summaries
Additionally, a cybersecurity breach could affect the issuers in which the Fund invests, which may cause the Fund’s investments to lose value.
Derivatives Risk
—The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.
Emerging Markets Risk
—The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries and their economies may be based on only a few industries. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may have lower overall liquidity than those of issuers in more developed countries. Financial and other reporting by companies and government entities also may be less reliable or difficult to obtain in emerging market countries. In addition, foreign investors such as the Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims and regulatory actions that are available in the U.S. may be difficult or impossible to pursue in emerging market countries.
Equity Security Risk
—Equity securities in the Fund’s portfolio may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. From time to time, the Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries.
Foreign Investment Risk
—Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to those of issuers located in or that principally operate in the United States as a result of, among other things, political, social and economic developments abroad and different legal, regulatory and tax environments. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it may be more susceptible to adverse conditions affecting that country or region.
Market Risk
—The market value of the Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time, due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact the value of the Fund’s investments whether or not the Fund invests in such country or region. Events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may have a severe negative impact on the global economy, could cause financial markets to experience extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments.
Mid-Cap Company Risk
—Securities of mid-cap companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or broader market averages in general.
Value Stock Risk
—Value stocks are securities of companies that typically trade at a perceived discount to their intrinsic value and at valuation discounts relative to companies in the same industry. Value stocks often times are also in sectors that trade at a discount to the broader market. The reasons for their discount may vary greatly, but some examples may include adverse business, industry or other developments that may cause the company to be subject to special risks. The intrinsic value of a stock with value characteristics may be difficult to identify and may not be fully recognized by the market for a long time or a stock identified to be undervalued may actually be appropriately priced at a low level.
Fund Performance
The following bar chart and table provide some indication of the potential risks of investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.​​​​​​​ Updated performance information is available at www.nuveen.com/performance or by calling (800) 257-8787.
   
Section 1
Fund Summaries
21
The bar chart below shows the variability of the Fund’s performance from year to year for Class A shares. The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were reflected, the returns would be less than those shown.
 
Class A Annual Total Return*
PERFORMANCEBARCHARTDATA(2011:-7.42,2012:9.93,2013:38.68,2014:9.43,2015:-3.55,2016:15.81,2017:19.16,2018:-12.91,2019:26.69,2020:1.18)
*
 
 
The performance of the other share classes will differ due to their different expense structures.
During the ten-year period ended December 31, 2020, the Fund’s highest and lowest quarterly returns were 20.78%
and -32.55%, respectively, for the quarters ended December 31, 2020 and March 31, 2020.
The table below shows the variability of the Fund’s average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Your own actual after-tax returns will depend on your specific tax situation and may differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs or employer-sponsored retirement plans.
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers, if any, in effect during the periods presented. If any such waivers had not been in place, returns would have been reduced.
                                 
 
 
 
 
 
Average Annual Total Returns
 
 
 
 
 
for the Periods Ended
 
 
 
 
 
December 31, 2020
 
 
Inception
Date
1 Year
5 Years
10 Years
Since
Inception
(Class R6)
Class A (return before taxes)
 
12/22/87
 
 
(4.63
)%
 
7.74
%
 
8.02
%
 
N/A
 
Class A (return after taxes on distributions)
 
 
 
 
(4.87
)%
 
6.86
%
 
7.41
%
 
N/A
 
Class A (return after taxes on distributions and sale of Fund shares)
 
 
 
 
(2.57
)%
 
5.98
%
 
6.44
%
 
N/A
 
Class C (return before taxes)
 
2/1/99
 
 
0.41
%
 
8.21
%
 
7.85
%
 
N/A
 
Class R3 (return before taxes)
 
9/24/01
 
 
0.92
%
 
8.75
%
 
8.39
%
 
N/A
 
Class R6 (return before taxes)
 
6/20/18
 
 
1.55
%
 
N/A
 
 
N/A
 
 
3.05
%
Class I (return before taxes)
 
2/4/94
 
 
1.42
%
 
9.29
%
 
8.93
%
 
N/A
 
Russell Midcap
®
Value Index
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for fees, expenses or taxes)
 
 
 
 
4.96
%
 
9.73
%
 
10.49
%
 
5.93
%
Lipper Mid-Cap Value Funds Category Average
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for taxes or sales loads)
 
 
 
 
2.51
%
 
7.83
%
 
8.76
%
 
2.67
%
   
                                 
1
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.
2
Represents the average annualized total return for all reporting funds in the Lipper Mid-Cap Value Funds Category.
   
22
Section 1
Fund Summaries
Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Manager
     
Name
Title
Portfolio Manager of Fund Since
Karen L. Bowie, CFA
Managing Director
April 2012
Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day through a financial advisor or other financial intermediary. The Fund’s initial and subsequent investment minimums generally are as follows, although certain financial intermediaries may impose their own investment minimums and the Fund may reduce or waive the minimums in some cases:
         
 
Class A and Class C
Class R3
Class R6
Class I
Eligibility and Minimum Initial Investment
$3,000 for all accounts except:
•
 
$2,500 for Traditional/
Roth IRA accounts.
•
 
$2,000 for Coverdell
Education Savings
Accounts.
•
 
$250 for accounts opened through fee-based programs.
•
 
No minimum for retirement plans.
Available only through certain retirement plans.
No minimum.
Available only to certain qualified retirement plans and other investors as described in the prospectus and through fee-based programs.
$1 million for all accounts except:
•
 
$100,000 for clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services.
•
 
No minimum for certain qualified retirement plans and certain other categories of eligible investors as described in the prospectus.
Available only through fee-based programs and certain retirement plans, and to other limited categories of investors as described in the prospectus.
$100,000 for all accounts except:
•
 
$250 for clients of financial intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
•
 
No minimum for eligible retirement plans and certain other categories of eligible investors as described in the prospectus.
Minimum
Additional
Investment
$100
No minimum.
No minimum.
No minimum.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
   
Section 1
Fund Summaries
23
Nuveen Small Cap Growth Opportunities Fund
Investment Objective
The investment objective of the Fund is growth of capital.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in “How You Can Buy and Sell Shares” on page 56 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-69 of the Fund’s statement of additional information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in the appendix to the Fund’s prospectus entitled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
The tables and examples below do not reflect any commissions that shareholders may be required to pay directly to their financial intermediaries when buying or selling Class I shares.
Shareholder Fees
(fees paid directly from your investment)
                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
5.75%
 
None
 
None
 
None
 
None
 
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
None
 
1.00%
 
None
 
None
 
None
 
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
None
 
None
 
None
 
None
 
None
 
Exchange Fee
None
 
None
 
None
 
None
 
None
 
Annual Low Balance Account Fee (for accounts under $1,000)
2
$15
 
$15
 
None
 
None
 
$15
 
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
                                           
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Management Fees
 
0.83
%
 
0.83
%
 
0.83
%
 
0.83
%
 
0.83
%
Distribution and/or Service (12b-1) Fees
 
0.25
%
 
1.00
%
 
0.50
%
 
0.00
%
 
0.00
%
Other Expenses
 
0.34
%
 
0.34
%
 
0.34
%
 
0.15
%
 
0.34
%
Acquired Fund Fees and Expenses
 
0.01
%
 
0.01
%
 
0.01
%
 
0.01
%
 
0.01
%
Total Annual Fund Operating Expenses
 
1.43
%
 
2.18
%
 
1.68
%
 
0.99
%
 
1.18
%
Fee Waivers and/or Expense Reimbursements
3
 
(0.20
)%
 
(0.20
)%
 
(0.20
)%
 
(0.20
)%
 
(0.20
)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
 
1.23
%
 
1.98
%
 
1.48
%
 
0.79
%
 
0.98
%
1
 
The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.
2
 
Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3
 
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 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.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a period. The example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that the fee waivers currently in place are not renewed beyond July 31, 2022. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
   
24
Section 1
Fund Summaries
                                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
1 Year
$
693
 
$
201
 
$
151
 
$
81
 
$
100
 
3 Years
$
975
 
$
655
 
$
502
 
$
287
 
$
346
 
5 Years
$
1,286
 
$
1,143
 
$
886
 
$
519
 
$
621
 
10 Years
$
2,166
 
$
2,491
 
$
1,963
 
$
1,187
 
$
1,406
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 105% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of small-capitalization companies. Small-capitalization companies are defined as companies that have market capitalizations within the market capitalization range of the companies in the Russell 2000
®
Index on the last business day of the month in which its most recent reconstitution was completed. Reconstitution of the index currently is completed in June of each year. On June 30, 2020, the range of the index was $41 million to $12.4 billion.
In selecting stocks, the Fund’s sub-adviser invests in companies that it believes exhibit the potential for superior growth based on factors such as above-average growth in revenue and earnings, strong competitive position, strong management, and sound financial condition. The Fund’s sub-adviser will generally sell a stock if the stock hits its price target, the company’s fundamentals or competitive position significantly deteriorate, or if a better alternative exists in the marketplace.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
The Fund may utilize options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts (“
derivatives
”). The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
Principal Risks
The value of your investment in this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund listed below are presented alphabetically to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.
Active Management Risk
—The Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the Fund is subject to the risk that the investment techniques and risk analyses employed by the Fund’s sub-adviser may not produce the desired results. This could cause the Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
Currency Risk
—Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund’s portfolio.
Cybersecurity Risk
—Cybersecurity risk is the risk of an unauthorized breach and access to Fund assets, customer data (including private shareholder information), or proprietary information, or the risk of an incident occurring that causes the Fund, its investment adviser or sub-adviser, custodian, transfer agent, distributor or other service provider or a financial intermediary to suffer a data breach, data corruption or lose operational functionality. Successful cyber-attacks or other cyber-failures or events affecting the Fund or its service providers may adversely impact the Fund or its shareholders.
   
Section 1
Fund Summaries
25
Additionally, a cybersecurity breach could affect the issuers in which the Fund invests, which may cause the Fund’s investments to lose value.
Derivatives Risk
—The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.
Emerging Markets Risk
—The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries and their economies may be based on only a few industries. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may have lower overall liquidity than those of issuers in more developed countries. Financial and other reporting by companies and government entities also may be less reliable or difficult to obtain in emerging market countries. In addition, foreign investors such as the Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims and regulatory actions that are available in the U.S. may be difficult or impossible to pursue in emerging market countries.
Equity Security Risk
—Equity securities in the Fund’s portfolio may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. From time to time, the Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries.
Foreign Investment Risk
—Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to those of issuers located in or that principally operate in the United States as a result of, among other things, political, social and economic developments abroad and different legal, regulatory and tax environments. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it may be more susceptible to adverse conditions affecting that country or region.
Frequent Trading Risk
—The Fund's portfolio turnover rate may exceed 100%. Frequent trading of portfolio securities may produce capital gains, which are taxable to shareholders when distributed. Frequent trading may also increase the amount of commissions or mark-ups to broker-dealers that the Fund pays when it buys and sells securities, which may detract from the Fund’s performance.
Growth Stock Risk
—Growth stocks tend to be more volatile than certain other types of stocks and their prices usually fluctuate more dramatically than the overall stock market. A stock with growth characteristics can have sharp price declines due to decreases in current or expected earnings and may lack dividends that can help cushion its share price in a declining market.
Health Care Sector Risk
—The Fund currently invests a significant portion of its assets in the health care sector, although this may change over time. Health care companies may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services, changes in patent and intellectual property rights and product liability claims, among other factors.
Information Technology Sector Risk
—The Fund currently invests a significant portion of its assets in the information technology sector, although this may change over time. The information technology sector can be significantly affected by changes in, among other things, the supply and demand for specific products and services, the pace of technological development and product obsolescence, market competition, government regulation, and patent and intellectual property rights.
Market Risk
—The market value of the Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time, due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact the value of the Fund’s investments whether or not the Fund invests in such country or region. Events such as war, terrorism, natural and
   
26
Section 1
Fund Summaries
environmental disasters and the spread of infectious illnesses or other public health emergencies may have a severe negative impact on the global economy, could cause financial markets to experience extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments.
Small-Cap Company Risk
—Securities of small-cap companies involve substantial risk. Prices of small-cap securities may be subject to more abrupt or erratic movements, and to wider fluctuations, than security prices of larger, more established companies or broader market averages in general. It may be difficult to sell small-cap securities at the desired time and price.
Fund Performance
The following bar chart and table provide some indication of the potential risks of investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at www.nuveen.com/performance or by calling (800) 257-8787.
The bar chart below shows the variability of the Fund’s performance from year to year for Class A shares. The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were reflected, the returns would be less than those shown.
 
Class A Annual Total Return*
PERFORMANCEBARCHARTDATA(2011:-5.16,2012:10.99,2013:40.66,2014:6.67,2015:-4.03,2016:11.66,2017:16.52,2018:-5.46,2019:29.6,2020:47.34)
*
 
 
The performance of the other share classes will differ due to their different expense structures.
During the ten-year period ended December 31, 2020, the Fund’s highest and lowest quarterly returns were 34.53%
and -22.43%, respectively, for the quarters ended June 30, 2020 and September 30, 2011.
The table below shows the variability of the Fund’s average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary.​​​​​​​ Your own actual after-tax returns will depend on your specific tax situation and may differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs or employer-sponsored retirement plans.
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers, if any, in effect during the periods presented. If any such waivers had not been in place, returns would have been reduced.
   
Section 1
Fund Summaries
27
                                 
 
 
 
 
 
Average Annual Total Returns
 
 
 
 
 
for the Periods Ended
 
 
 
 
 
December 31, 2020
 
 
Inception
Date
1 Year
5 Years
10 Years
Since
Inception
(Class R6)
Class A (return before taxes)
 
8/1/95
 
 
38.85
%
 
17.23
%
 
12.87
%
 
N/A
 
Class A (return after taxes on distributions)
 
 
 
 
34.56
%
 
14.59
%
 
10.03
%
 
N/A
 
Class A (return after taxes on distributions and sale of Fund shares)
 
 
 
 
25.08
%
 
12.94
%
 
9.35
%
 
N/A
 
Class C (return before taxes)
 
9/24/01
 
 
46.25
%
 
17.75
%
 
12.69
%
 
N/A
 
Class R3 (return before taxes)
 
12/11/00
 
 
46.95
%
 
18.32
%
 
13.25
%
 
N/A
 
Class R6 (return before taxes)
 
6/30/16
 
 
48.05
%
 
N/A
 
 
N/A
 
 
22.34
%
Class I (return before taxes)
 
8/1/95
 
 
47.69
%
 
18.92
%
 
13.82
%
 
N/A
 
Russell 2000
®
Growth Index
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for fees, expenses or taxes)
 
 
 
 
34.63
%
 
16.36
%
 
13.48
%
 
18.75
%
Lipper Small-Cap Growth Funds Category Average
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for taxes or sales loads)
 
 
 
 
38.35
%
 
17.68
%
 
13.52
%
 
20.05
%
   
                                 
1
An index that measures the performance of those Russell 2000
®
companies with higher price-to-book ratios and higher forecasted growth values.
2
Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Growth Funds Category.
Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Manager
     
Name
Title
Portfolio Manager of Fund Since
Jon A. Loth, CFA
Managing Director
October 2007
   
28
Section 1
Fund Summaries
Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day through a financial advisor or other financial intermediary. The Fund’s initial and subsequent investment minimums generally are as follows, although certain financial intermediaries may impose their own investment minimums and the Fund may reduce or waive the minimums in some cases:
         
 
Class A and Class C
Class R3
Class R6
Class I
Eligibility and Minimum Initial Investment
$3,000 for all accounts except:
•
 
$2,500 for Traditional/
Roth IRA accounts.
•
 
$2,000 for Coverdell
Education Savings
Accounts.
•
 
$250 for accounts opened through fee-based programs.
•
 
No minimum for retirement plans.
Available only through certain retirement plans.
No minimum.
Available only to certain qualified retirement plans and other investors as described in the prospectus and through fee-based programs.
$1 million for all accounts except:
•
 
$100,000 for clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services.
•
 
No minimum for certain qualified retirement plans and certain other categories of eligible investors as described in the prospectus.
Available only through fee-based programs and certain retirement plans, and to other limited categories of investors as described in the prospectus.
$100,000 for all accounts except:
•
 
$250 for clients of financial intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
•
 
No minimum for eligible retirement plans and certain other categories of eligible investors as described in the prospectus.
Minimum
Additional
Investment
$100
No minimum.
No minimum.
No minimum.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
   
Section 1
Fund Summaries
29
Nuveen Small Cap Select Fund
Investment Objective
The investment objective of the Fund is capital appreciation.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in “How You Can Buy and Sell Shares” on page 56 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-69 of the Fund’s statement of additional information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in the appendix to the Fund’s prospectus entitled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
The tables and examples below do not reflect any commissions that shareholders may be required to pay directly to their financial intermediaries when buying or selling Class I shares.
Shareholder Fees
(fees paid directly from your investment)
                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
5.75%
 
None
 
None
 
None
 
None
 
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
None
 
1.00%
 
None
 
None
 
None
 
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
None
 
None
 
None
 
None
 
None
 
Exchange Fee
None
 
None
 
None
 
None
 
None
 
Annual Low Balance Account Fee (for accounts under $1,000)
2
$15
 
$15
 
None
 
None
 
$15
 
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
                                           
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Management Fees
 
0.85
%
 
0.85
%
 
0.85
%
 
0.85
%
 
0.85
%
Distribution and/or Service (12b-1) Fees
 
0.25
%
 
1.00
%
 
0.50
%
 
0.00
%
 
0.00
%
Other Expenses
 
0.38
%
 
0.38
%
 
0.38
%
 
0.24
%
 
0.38
%
Total Annual Fund Operating Expenses
 
1.48
%
 
2.23
%
 
1.73
%
 
1.09
%
 
1.23
%
Fee Waivers and/or Expense Reimbursements
3
 
(0.24
)%
 
(0.24
)%
 
(0.24
)%
 
(0.23
)%
 
(0.24
)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
 
1.24
%
 
1.99
%
 
1.49
%
 
0.86
%
 
0.99
%
1
 
The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.
2
 
Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3
 
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 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.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a period. The example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that the fee waivers currently in place are not renewed beyond July 31, 2022. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
   
30
Section 1
Fund Summaries
                                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
1 Year
$
694
 
$
202
 
$
152
 
$
88
 
$
101
 
3 Years
$
984
 
$
664
 
$
511
 
$
314
 
$
356
 
5 Years
$
1,306
 
$
1,164
 
$
906
 
$
569
 
$
643
 
10 Years
$
2,214
 
$
2,538
 
$
2,012
 
$
1,299
 
$
1,458
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 90% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of small-capitalization companies. Small-capitalization companies are defined as companies that have market capitalizations within the market capitalization range of the companies in the Russell 2000
®
Index on the last business day of the month in which its most recent reconstitution was completed. Reconstitution of the index currently is completed in June of each year. On June 30, 2020, the range of the index was $41 million to $12.4 billion.
In selecting stocks, the Fund’s sub-adviser invests in companies that it believes meet one or more of the following criteria:
·
 
Attractively valued relative to other companies in the same industry or market.
·
 
Strong or improving cash flows, revenue and earnings growth, or other fundamentals.
·
 
An identifiable catalyst that could increase the value of the company’s stock over the next one or two years.
The Fund’s sub-adviser will generally sell a stock if the stock hits its price target, the company’s fundamentals or competitive position significantly deteriorate, or if a better alternative exists in the marketplace.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
The Fund may utilize options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts (“
derivatives
”). The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
Principal Risks
The value of your investment in this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund listed below are presented alphabetically to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.
Active Management Risk
—The Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the Fund is subject to the risk that the investment techniques and risk analyses employed by the Fund’s sub-adviser may not produce the desired results. This could cause the Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
Currency Risk
—Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund’s portfolio.
Cybersecurity Risk
—Cybersecurity risk is the risk of an unauthorized breach and access to Fund assets, customer data (including private shareholder information), or proprietary information, or the risk of an incident occurring that causes the Fund, its investment adviser or sub-adviser, custodian, transfer agent, distributor or other service provider or a financial
   
Section 1
Fund Summaries
31
intermediary to suffer a data breach, data corruption or lose operational functionality. Successful cyber-attacks or other cyber-failures or events affecting the Fund or its service providers may adversely impact the Fund or its shareholders. Additionally, a cybersecurity breach could affect the issuers in which the Fund invests, which may cause the Fund’s investments to lose value.
Derivatives Risk
—The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.
Emerging Markets Risk
—The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries and their economies may be based on only a few industries. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may have lower overall liquidity than those of issuers in more developed countries. Financial and other reporting by companies and government entities also may be less reliable or difficult to obtain in emerging market countries. In addition, foreign investors such as the Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims and regulatory actions that are available in the U.S. may be difficult or impossible to pursue in emerging market countries.
Equity Security Risk
—Equity securities in the Fund’s portfolio may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. From time to time, the Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries.
Foreign Investment Risk
—Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to those of issuers located in or that principally operate in the United States as a result of, among other things, political, social and economic developments abroad and different legal, regulatory and tax environments. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it may be more susceptible to adverse conditions affecting that country or region.
Health Care Sector Risk
—The Fund currently invests a significant portion of its assets in the health care sector, although this may change over time. Health care companies may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services, changes in patent and intellectual property rights and product liability claims, among other factors.
Market Risk
—The market value of the Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time, due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact the value of the Fund’s investments whether or not the Fund invests in such country or region. Events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may have a severe negative impact on the global economy, could cause financial markets to experience extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments.
Small-Cap Company Risk
—Securities of small-cap companies involve substantial risk. Prices of small-cap securities may be subject to more abrupt or erratic movements, and to wider fluctuations, than security prices of larger, more established companies or broader market averages in general. It may be difficult to sell small-cap securities at the desired time and price.
Fund Performance
The following bar chart and table provide some indication of the potential risks of investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at www.nuveen.com/performance or by calling (800) 257-8787.
   
32
Section 1
Fund Summaries
The bar chart below shows the variability of the Fund’s performance from year to year for Class A shares.​​​​​​​ The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were reflected, the returns would be less than those shown.
 
Class A Annual Total Return*
PERFORMANCEBARCHARTDATA(2011:-2.03,2012:12.07,2013:31.92,2014:5.44,2015:-2.08,2016:21.31,2017:9.75,2018:-11.2,2019:28.64,2020:18.34)
*
 
 
The performance of the other share classes will differ due to their different expense structures.
During the ten-year period ended December 31, 2020, the Fund’s highest and lowest quarterly returns were 27.55%
and -31.33%, respectively, for the quarters ended December 31, 2020 and March 31, 2020.
The table below shows the variability of the Fund’s average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary.​​​​​​​ Your own actual after-tax returns will depend on your specific tax situation and may differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs or employer-sponsored retirement plans.
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers, if any, in effect during the periods presented. If any such waivers had not been in place, returns would have been reduced.
   
Section 1
Fund Summaries
33
                                 
 
 
 
 
 
Average Annual Total Returns
 
 
 
 
 
for the Periods Ended
 
 
 
 
 
December 31, 2020
 
 
 
Inception
Date
1 Year
5 Years
10 Years
Since
Inception
(Class R6)
Class A (return before taxes)
 
5/6/92
 
 
11.52
%
 
11.14
%
 
9.75
%
 
N/A
 
Class A (return after taxes on distributions)
 
 
 
 
11.14
%
 
8.34
%
 
6.30
%
 
N/A
 
Class A (return after taxes on distributions and sale of Fund shares)
 
 
 
 
7.08
%
 
7.91
%
 
6.67
%
 
N/A
 
Class C (return before taxes)
 
9/24/01
 
 
17.50
%
 
11.62
%
 
9.58
%
 
N/A
 
Class R3 (return before taxes)
 
1/3/94
 
 
18.11
%
 
12.20
%
 
10.14
%
 
N/A
 
Class R6 (return before taxes)
 
2/28/18
 
 
18.72
%
 
N/A
 
 
N/A
 
 
11.40
%
Class I (return before taxes)
 
5/6/92
 
 
18.65
%
 
12.74
%
 
10.68
%
 
N/A
 
Russell 2000
®
Index
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for fees, expenses or taxes)
 
 
 
 
19.96
%
 
13.26
%
 
11.20
%
 
11.39
%
Lipper Small-Cap Core Funds Category Average
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for taxes or sales loads)
 
 
 
 
9.22
%
 
9.88
%
 
9.28
%
 
6.69
%
   
                                 
1
An index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000
®
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.
2
Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Core Funds Category.
Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Managers
     
Name
Title
Portfolio Manager of Fund Since
Gregory J. Ryan, CFA
Managing Director
August 2013
Jon A. Loth, CFA
Managing Director
March 2019
   
34
Section 1
Fund Summaries
Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day through a financial advisor or other financial intermediary. The Fund’s initial and subsequent investment minimums generally are as follows, although certain financial intermediaries may impose their own investment minimums and the Fund may reduce or waive the minimums in some cases:
         
 
Class A and Class C
Class R3
Class R6
Class I
Eligibility and Minimum Initial Investment
$3,000 for all accounts except:
•
 
$2,500 for Traditional/
Roth IRA accounts.
•
 
$2,000 for Coverdell
Education Savings
Accounts.
•
 
$250 for accounts opened through fee-based programs.
•
 
No minimum for retirement plans.
Available only through certain retirement plans.
No minimum.
Available only to certain qualified retirement plans and other investors as described in the prospectus and through fee-based programs.
$1 million for all accounts except:
•
 
$100,000 for clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services.
•
 
No minimum for certain qualified retirement plans and certain other categories of eligible investors as described in the prospectus.
Available only through fee-based programs and certain retirement plans, and to other limited categories of investors as described in the prospectus.
$100,000 for all accounts except:
•
 
$250 for clients of financial intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
•
 
No minimum for eligible retirement plans and certain other categories of eligible investors as described in the prospectus.
Minimum
Additional
Investment
$100
No minimum.
No minimum.
No minimum.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
   
Section 1
Fund Summaries
35
Nuveen Small Cap Value Fund
Investment Objective
The investment objective of the Fund is capital appreciation.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in “How You Can Buy and Sell Shares” on page 56 of the Fund’s prospectus and “Purchase and Redemption of Fund Shares” on page S-69 of the Fund’s statement of additional information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in the appendix to the Fund’s prospectus entitled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
The tables and examples below do not reflect any commissions that shareholders may be required to pay directly to their financial intermediaries when buying or selling Class I shares.
Shareholder Fees
(fees paid directly from your investment)
                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
5.75%
 
None
 
None
 
None
 
None
 
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
None
 
1.00%
 
None
 
None
 
None
 
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
None
 
None
 
None
 
None
 
None
 
Exchange Fee
None
 
None
 
None
 
None
 
None
 
Annual Low Balance Account Fee (for accounts under $1,000)
2
$15
 
$15
 
None
 
None
 
$15
 
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
                                           
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
Management Fees
 
0.78
%
 
0.78
%
 
0.78
%
 
0.78
%
 
0.78
%
Distribution and/or Service (12b-1) Fees
 
0.25
%
 
1.00
%
 
0.50
%
 
0.00
%
 
0.00
%
Other Expenses
 
0.27
%
 
0.27
%
 
0.27
%
 
0.08
%
 
0.27
%
Total Annual Fund Operating Expenses
 
1.30
%
 
2.05
%
 
1.55
%
 
0.86
%
 
1.05
%
Fee Waivers and/or Expense Reimbursements
3
 
(0.10
)%
 
(0.10
)%
 
(0.10
)%
 
(0.10
)%
 
(0.10
)%
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements
 
1.20
%
 
1.95
%
 
1.45
%
 
0.76
%
 
0.95
%
1
 
The contingent deferred sales charge on Class C shares applies only to redemptions within 12 months of purchase.
2
 
Fee applies to the following types of accounts under $1,000 held directly with the Fund: individual retirement accounts (IRAs), Coverdell Education Savings Accounts and accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
3
 
The Fund’s investment adviser has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual operating expenses of the Fund (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 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.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a period. The example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that the fee waivers currently in place are not renewed beyond July 31, 2022. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
   
36
Section 1
Fund Summaries
                                     
 
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
 
1 Year
$
690
 
$
198
 
$
148
 
$
78
 
$
97
 
3 Years
$
950
 
$
629
 
$
476
 
$
260
 
$
320
 
5 Years
$
1,234
 
$
1,090
 
$
831
 
$
463
 
$
565
 
10 Years
$
2,041
 
$
2,368
 
$
1,833
 
$
1,048
 
$
1,270
 
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 30% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of small-capitalization companies. Small-capitalization companies are defined as companies that have market capitalizations within the market capitalization range of the companies in the Russell 2000
®
Index on the last business day of the month in which its most recent reconstitution was completed. Reconstitution of the index currently is completed in June of each year. On June 30, 2020, the range of the index was $41 million to $12.4 billion.
In selecting stocks, the Fund’s sub-adviser invests in companies that it believes meet at least two of the following criteria:
·
 
Undervalued relative to other companies in the same industry or market.
·
 
Good or improving fundamentals.
·
 
An identifiable catalyst that could close the gap between market value and fair value over the next one to two years.
The Fund’s sub-adviser will generally sell a stock if the stock hits its price target, the company’s fundamentals or competitive position significantly deteriorate, or if a better alternative exists in the marketplace.
The Fund may invest up to 15% of its total assets in non-dollar denominated equity securities of non-U.S. issuers. In addition, the Fund may invest up to 25% of its assets, collectively, in non-dollar denominated equity securities of non-U.S. issuers and in dollar-denominated equity securities of non-U.S. issuers that are either listed on a U.S. stock exchange or represented by depositary receipts that may or may not be sponsored by a domestic bank. Up to 15% of the Fund’s total assets may be invested in equity securities of emerging market issuers.
The Fund may utilize options, futures contracts, options on futures contracts, and forward foreign currency exchange contracts (“
derivatives
”). The Fund may use these derivatives to manage market or business risk, enhance the Fund’s return, or hedge against adverse movements in currency exchange rates.
Principal Risks
The value of your investment in this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund listed below are presented alphabetically to facilitate your ability to find particular risks and compare them with the risks of other funds. Each risk summarized below is considered a "principal risk" of investing in the Fund, regardless of the order in which it appears.
Active Management Risk
—The Fund’s sub-adviser actively manages the Fund’s investments. Consequently, the Fund is subject to the risk that the investment techniques and risk analyses employed by the Fund’s sub-adviser may not produce the desired results. This could cause the Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
Currency Risk
—Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund’s portfolio.
Cybersecurity Risk
—Cybersecurity risk is the risk of an unauthorized breach and access to Fund assets, customer data (including private shareholder information), or proprietary information, or the risk of an incident occurring that causes the
   
Section 1
Fund Summaries
37
Fund, its investment adviser or sub-adviser, custodian, transfer agent, distributor or other service provider or a financial intermediary to suffer a data breach, data corruption or lose operational functionality. Successful cyber-attacks or other cyber-failures or events affecting the Fund or its service providers may adversely impact the Fund or its shareholders. Additionally, a cybersecurity breach could affect the issuers in which the Fund invests, which may cause the Fund’s investments to lose value.
Derivatives Risk
—The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty.
Emerging Markets Risk
—The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries and their economies may be based on only a few industries. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may have lower overall liquidity than those of issuers in more developed countries. Financial and other reporting by companies and government entities also may be less reliable or difficult to obtain in emerging market countries. In addition, foreign investors such as the Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims and regulatory actions that are available in the U.S. may be difficult or impossible to pursue in emerging market countries.
Equity Security Risk
—Equity securities in the Fund’s portfolio may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. From time to time, the Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries.
Financial Services Sector Risk
—The Fund currently invests a significant portion of its assets in the financial services sector, although this may change over time. Financial services companies are particularly sensitive to the adverse effects of economic recession; changes in government regulation; the availability of capital; volatile interest rates; and the health of the commercial and residential real estate markets.
Foreign Investment Risk
—Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to those of issuers located in or that principally operate in the United States as a result of, among other things, political, social and economic developments abroad and different legal, regulatory and tax environments. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it may be more susceptible to adverse conditions affecting that country or region.
Market Risk
—The market value of the Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time, due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact the value of the Fund’s investments whether or not the Fund invests in such country or region. Events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may have a severe negative impact on the global economy, could cause financial markets to experience extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments.
Small-Cap Company Risk
—Securities of small-cap companies involve substantial risk. Prices of small-cap securities may be subject to more abrupt or erratic movements, and to wider fluctuations, than security prices of larger, more established companies or broader market averages in general. It may be difficult to sell small-cap securities at the desired time and price.
Value Stock Risk
—Value stocks are securities of companies that typically trade at a perceived discount to their intrinsic value and at valuation discounts relative to companies in the same industry. Value stocks often times are also in sectors that trade at a discount to the broader market. The reasons for their discount may vary greatly, but some examples may
   
38
Section 1
Fund Summaries
include adverse business, industry or other developments that may cause the company to be subject to special risks. The intrinsic value of a stock with value characteristics may be difficult to identify and may not be fully recognized by the market for a long time or a stock identified to be undervalued may actually be appropriately priced at a low level.
Fund Performance
The following bar chart and table provide some indication of the potential risks of investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at www.nuveen.com/performance or by calling (800) 257-8787.
The bar chart below shows the variability of the Fund’s performance from year to year for Class A shares.​​​​​​​ The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were reflected, the returns would be less than those shown.
 
Class A Annual Total Return*
PERFORMANCEBARCHARTDATA(2011:-0.09,2012:14.16,2013:38.67,2014:4.86,2015:2.73,2016:30.83,2017:6.08,2018:-20.81,2019:16.99,2020:-4.44)
*
 
 
The performance of the other share classes will differ due to their different expense structures.
During the ten-year period ended December 31, 2020, the Fund’s highest and lowest quarterly returns were 32.00%
and -39.15%, respectively, for the quarters ended December 31, 2020 and March 31, 2020.
The table below shows the variability of the Fund’s average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Your own actual after-tax returns will depend on your specific tax situation and may differ from what is shown here. After-tax returns are not relevant to investors who hold Fund shares in tax-deferred accounts such as IRAs or employer-sponsored retirement plans.
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers, if any, in effect during the periods presented. If any such waivers had not been in place, returns would have been reduced.
   
Section 1
Fund Summaries
39
                                 
 
 
 
 
 
Average Annual Total Returns
 
 
 
 
 
for the Periods Ended
 
 
 
 
 
December 31, 2020
 
 
 
Inception
Date
1 Year
5 Years
10 Years
Since
Inception
(Class R6)
Class A (return before taxes)
 
8/1/94
 
 
(9.95
)%
 
2.97
%
 
7.03
%
 
N/A
 
Class A (return after taxes on distributions)
 
 
 
 
(10.02
)%
 
2.52
%
 
6.74
%
 
N/A
 
Class A (return after taxes on distributions and sale of Fund shares)
 
 
 
 
(5.84
)%
 
2.25
%
 
5.67
%
 
N/A
 
Class C (return before taxes)
 
2/1/99
 
 
(5.11
)%
 
3.43
%
 
6.87
%
 
N/A
 
Class R3 (return before taxes)
 
9/24/01
 
 
(4.70
)%
 
3.94
%
 
7.40
%
 
N/A
 
Class R6 (return before taxes)
 
6/30/16
 
 
(4.00
)%
 
N/A
 
 
N/A
 
 
3.62
%
Class I (return before taxes)
 
8/1/94
 
 
(4.21
)%
 
4.46
%
 
7.94
%
 
N/A
 
Russell 2000
®
Value Index
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for fees, expenses or taxes)
 
 
 
 
4.63
%
 
9.65
%
 
8.66
%
 
9.33
%
Lipper Small-Cap Value Funds Category Average
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(reflects no deduction for taxes or sales loads)
 
 
 
 
3.60
%
 
7.99
%
 
7.81
%
 
7.80
%
   
                                 
1
An index that measures the performance of those Russell 2000
®
companies with lower price-to-book ratios and lower forecasted growth values.
2
Represents the average annualized total return for all reporting funds in the Lipper Small-Cap Value Funds Category.
Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Managers
     
Name
Title
Portfolio Manager of Fund Since
Karen L. Bowie, CFA
Managing Director
July 2005
David F. Johnson, CFA
Senior Director and Senior Research Analyst
April 2017
   
40
Section 1
Fund Summaries
Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day through a financial advisor or other financial intermediary. The Fund’s initial and subsequent investment minimums generally are as follows, although certain financial intermediaries may impose their own investment minimums and the Fund may reduce or waive the minimums in some cases:
         
 
Class A and Class C
Class R3
Class R6
Class I
Eligibility and Minimum Initial Investment
$3,000 for all accounts except:
•
 
$2,500 for Traditional/
Roth IRA accounts.
•
 
$2,000 for Coverdell
Education Savings
Accounts.
•
 
$250 for accounts opened through fee-based programs.
•
 
No minimum for retirement plans.
Available only through certain retirement plans.
No minimum.
Available only to certain qualified retirement plans and other investors as described in the prospectus and through fee-based programs.
$1 million for all accounts except:
•
 
$100,000 for clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services.
•
 
No minimum for certain qualified retirement plans and certain other categories of eligible investors as described in the prospectus.
Available only through fee-based programs and certain retirement plans, and to other limited categories of investors as described in the prospectus.
$100,000 for all accounts except:
•
 
$250 for clients of financial intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
•
 
No minimum for eligible retirement plans and certain other categories of eligible investors as described in the prospectus.
Minimum
Additional
Investment
$100
No minimum.
No minimum.
No minimum.
Tax Information
The Fund’s distributions are taxable and will generally be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred account, such as an IRA or 401(k) plan (in which case you may be taxed upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.
   
Section 1
Fund Summaries
41
Section 2
How We Manage Your Money
To help you better understand the Funds, this section includes a detailed discussion of the Funds’ investment and risk management strategies. For a more complete discussion of these matters, please see the statement of additional information, which is available by calling (800) 257-8787 or by visiting Nuveen’s website at www.nuveen.com.
 
Who Manages the Funds
Nuveen Fund Advisors, LLC (“
Nuveen Fund Advisors
”), the Funds’ investment adviser, offers advisory and investment management services to a broad range of clients, including investment companies and other pooled investment vehicles. Nuveen Fund Advisors 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. Nuveen Fund Advisors is located at 333 West Wacker Drive, Chicago, Illinois 60606. Nuveen Fund Advisors is a subsidiary of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“
TIAA
”). TIAA is a life insurance company founded in 1918 by the Carnegie Foundation for the Advancement of Teaching and is the companion organization of College Retirement Equities Fund. As of December 31, 2020, Nuveen, LLC managed approximately $1.2 trillion in assets, of which approximately $156.5 billion was managed by Nuveen Fund Advisors.
Nuveen Fund Advisors has selected its affiliate, Nuveen Asset Management, LLC (
“Nuveen Asset Management”
), located at 333 West Wacker Drive, Chicago, Illinois 60606, to serve as sub-adviser to each Fund. Nuveen Asset Management manages the investment of the Funds' assets on a discretionary basis, subject to the supervision of Nuveen Fund Advisors.
The Funds are managed by multiple portfolio managers, who are responsible for the day-to-day management of the Funds, with expertise in the area applicable to the Funds’ investments. Each portfolio manager may be responsible for different aspects of a Fund’s management. For example, one manager may be principally responsible for selecting appropriate investments for a Fund, while another may be principally responsible for asset allocation. The following is a list of the portfolio managers primarily responsible for managing each Fund’s investments, along with their relevant experience. The Funds’ portfolio managers may change from time to time.
       
   
Total Experience
(since dates
specified below)
Name & Title
Experience Over Past Five Years
At Nuveen Asset Management
*
Total
 
     
NUVEEN DIVIDEND VALUE FUND
 
     
David A. Chalupnik, CFA

Head of Equities
Nuveen Asset Management (equity portfolio management)
2002
1984
 
     
Evan F. Staples, CFA

Managing Director
Nuveen Asset Management (equity portfolio management and research)
2010
2005
       
       
   
42
Section 2
How We Manage Your Money
       
   
Total Experience
(since dates
specified below)
Name & Title
Experience Over Past Five Years
At Nuveen Asset Management
*
Total
 
     
NUVEEN LARGE CAP SELECT FUND
 
     
David A. Chalupnik, CFA

Head of Equities
Nuveen Asset Management (equity portfolio management)
2002
1984
 
     
Evan F. Staples, CFA

Managing Director
Nuveen Asset Management (equity portfolio management and research)
2010
2005
       
       
NUVEEN MID CAP GROWTH OPPORTUNITIES FUND
 
     
Gregory J. Ryan, CFA

Managing Director
Nuveen Asset Management (equity portfolio management and research)
2007
1998
 
     
Bihag N. Patel, CFA

Managing Director
Nuveen Asset Management (equity portfolio management and research)
2014
1998
       
       
NUVEEN MID CAP VALUE FUND
 
     
Karen L. Bowie, CFA

Managing Director
Nuveen Asset Management (equity portfolio management)
1984
1984
       
       
NUVEEN SMALL CAP GROWTH OPPORTUNITIES FUND
 
     
Jon A. Loth, CFA

Managing Director
Nuveen Asset Management (equity portfolio management)
2004
1994
       
       
NUVEEN SMALL CAP SELECT FUND
 
     
Gregory J. Ryan, CFA

Managing Director
Nuveen Asset Management (equity portfolio management and research)
2007
1998
 
     
Jon A. Loth, CFA

Managing Director
Nuveen Asset Management (equity portfolio management)
2004
1994
       
       
NUVEEN SMALL CAP VALUE FUND
 
     
Karen L. Bowie, CFA

Managing Director
Nuveen Asset Management (equity portfolio management)
1984
1984
 
     
David F. Johnson, CFA

Managing Director
Nuveen Asset Management (equity portfolio management and research)
1997
1990
       
       
* Including tenure at affiliate or predecessor firms, as applicable
Additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers and the portfolio managers’ ownership of securities in the Funds is provided in the statement of additional information.
Management Fees
The management fee schedule for each Fund consists of two components: a Fund-level fee, based only on the amount of assets within a Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by Nuveen Fund Advisors.
The annual Fund-level fee, payable monthly, is based upon the average daily net assets of each Fund as follows:
   
Section 2
How We Manage Your Money
43
         
Average Daily Net Assets
Nuveen Dividend
Value
Fund
Nuveen
Large Cap Select
Fund
Nuveen
Mid Cap
Growth
Opportunities
Fund
Nuveen
Mid Cap
Value
Fund
For the first $125 million
0.5000%
0.5000%
0.6000%
0.6000%
For the next $125 million
0.4875%
0.4875%
0.5875%
0.5875%
For the next $250 million
0.4750%
0.4750%
0.5750%
0.5750%
For the next $500 million
0.4625%
0.4625%
0.5625%
0.5625%
For the next $1 billion
0.4500%
0.4500%
0.5500%
0.5500%
For the next $3 billion
0.4250%
0.4250%
0.5250%
0.5250%
For the next $2.5 billion
0.4000%
0.4000%
0.5000%
0.5000%
For the next $2.5 billion
0.3875%
0.3875%
0.4875%
0.4875%
For net assets over $10 billion
0.3750%
0.3750%
0.4750%
0.4750%
         
Average Daily Net Assets
 
Nuveen
Small Cap Growth Opportunities
Fund
Nuveen
Small Cap
Select
Fund
Nuveen
Small Cap
Value
Fund
For the first $125 million
 
0.6500%
0.6500%
0.6500%
For the next $125 million
 
0.6375%
0.6375%
0.6375%
For the next $250 million
 
0.6250%
0.6250%
0.6250%
For the next $500 million
 
0.6125%
0.6125%
0.6125%
For the next $1 billion
 
0.6000%
0.6000%
0.6000%
For the next $3 billion
 
0.5750%
0.5750%
0.5750%
For the next $2.5 billion
 
0.5500%
0.5500%
0.5500%
For the next $2.5 billion
 
0.5375%
0.5375%
0.5375%
For net assets over $10 billion
 
0.5250%
0.5250%
0.5250%
Each Fund’s complex-level fee rate is determined by taking the current overall complex-level fee rate, which is based on the aggregate amount of the “eligible assets” of all Nuveen funds, 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 maximum overall complex-level fee rate is 0.2000% of a Fund’s average daily net assets, which is based upon complex-level eligible assets of $55 billion, with the complex-level fee rate decreasing incrementally for eligible assets above that level. Fund-specific complex-level fee rates will not exceed the maximum overall complex-level fee rate of 0.2000%. As of December 31, 2020, the Funds’ effective complex-level fee rates were as follows:
   
 
Complex-Level
Fee Rate
Nuveen Dividend Value Fund
0.1676%
Nuveen Large Cap Select Fund
0.2000%
Nuveen Mid Cap Growth Opportunities Fund
0.2000%
Nuveen Mid Cap Value Fund
0.1962%
Nuveen Small Cap Growth Opportunities Fund
0.1773%
Nuveen Small Cap Select Fund
0.2000%
Nuveen Small Cap Value Fund
0.1608%
For the most recent fiscal year, each Fund paid Nuveen Fund Advisors the following management fees (net of fee waivers and expense reimbursements, where applicable) as a percentage of average daily net assets:
   
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Nuveen Dividend Value Fund
0.64%
Nuveen Large Cap Select Fund
0.50%
Nuveen Mid Cap Growth Opportunities Fund
0.72%
Nuveen Mid Cap Value Fund
0.68%
Nuveen Small Cap Growth Opportunities Fund
0.63%
Nuveen Small Cap Select Fund
0.61%
Nuveen Small Cap Value Fund
0.68%
Nuveen Fund Advisors has agreed to waive fees and/or reimburse expenses through July 31, 2022 so that the total annual 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) for the following Funds do not exceed the percentages of the average daily net assets listed below of any class of Fund shares. However, because Class R6 shares are not subject to sub-transfer agent and similar fees, the total annual operating expenses for the Class R6 shares will be less than the expense limitation.
   
Nuveen Dividend Value Fund
0.74%
Nuveen Large Cap Select Fund
0.80%
Nuveen Mid Cap Growth Opportunities Fund
0.92%
Nuveen Mid Cap Value Fund
0.92%
Nuveen Small Cap Growth Opportunities Fund
0.99%
Nuveen Small Cap Select Fund
0.99%
Nuveen Small Cap Value Fund
0.99%
The expense limitations described above may be terminated or modified prior to July 31, 2022 only with the approval of the Board of Directors of the Funds.
Information regarding the Board of Directors’ approval of the investment management agreements is available in the Funds’ annual reports for the fiscal year ended October 31, 2020.
 
More About Our Investment Strategies
The Funds’ investment objectives, which are described in the “Fund Summaries” section, may be changed without shareholder approval. If a Fund’s investment objective changes, you will be notified at least 60 days in advance.
Certain Funds have adopted a non-fundamental investment policy (a “
Name Policy
”). Nuveen Large Cap Select Fund, under normal market conditions, will invest at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of large-capitalization companies. Each of Nuveen Mid Cap Growth Opportunities Fund and Nuveen Mid Cap Value Fund, under normal market conditions, will invest at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of mid-capitalization companies. Each of Nuveen Small Cap Growth Opportunities Fund, Nuveen Small Cap Select Fund and Nuveen Small Cap Value Fund, under normal market conditions, will invest at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of small-capitalization companies. The Funds will consider both direct investments and indirect investments (e.g., investments in other investment companies, derivatives and synthetic instruments with economic characteristics similar to the direct investments that meet the Name Policy) when determining compliance with the Name Policy. For purposes of the Name Policy, a Fund will value eligible derivatives at fair value or market value instead of notional value. As a result of having a Name Policy,
   
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45
each Fund must provide shareholders with a notice at least 60 days prior to any change of the Fund’s Name Policy.
The Funds’ investment policies may be changed by the Board of Directors without shareholder approval unless otherwise noted in this prospectus or the statement of additional information.
The Funds’ principal investment strategies are discussed in the “Fund Summaries” section. These are the strategies that the Funds’ investment adviser and sub-adviser believe are most likely to be important in trying to achieve the Funds’ investment objectives. This section provides more information about these strategies, as well as information about some additional strategies that the Funds’ sub-adviser uses, or may use, to achieve the Funds’ objectives. You should be aware that each Fund may also use strategies and invest in securities that are not described in this prospectus, but that are described in the statement of additional information. For a copy of the statement of additional information, call Nuveen Funds at (800) 257-8787 or visit Nuveen’s website at www.nuveen.com.
Equity Securities
The Funds invest in equity securities. Equity securities generally include common stocks; preferred securities; warrants to purchase common stocks and preferred securities; convertible debt securities that are either in the money or immediately convertible into common stocks or preferred securities; common and preferred securities issued by master limited partnerships and real estate investment trusts; depositary receipts; and other securities with equity characteristics.
Non-U.S. Investments
The Funds will classify an issuer of a security as being a U.S. or non-U.S. issuer based on the determination of an unaffiliated, recognized financial data provider. Such determinations are based on a number of criteria, such as the issuer’s country of domicile, the primary exchange on which the security trades, the location from which the majority of the issuer’s revenue comes, and the issuer’s reporting currency. The Funds’ investment in non-U.S. equity securities may include direct investment in securities of non-U.S. companies traded overseas as well as American Depositary Receipts (“
ADRs
”) and other types of depositary receipts.
The Funds may invest in issuers located in emerging markets. Emerging market countries include any country other than Canada, the United States and the countries comprising the MSCI EAFE
®
Index (currently, Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom).
Cash Equivalents and Short-Term Investments
As a non-principal investment strategy, the Funds may invest in cash and in U.S. dollar-denominated high-quality money market instruments and other short-term securities, including money market funds, in such proportions as warranted by prevailing market conditions and the Funds’ principal investment strategies. The Funds may temporarily invest without limit in such holdings for liquidity purposes, or in an attempt to respond to adverse market, economic, political or other conditions. Being invested in these securities may keep a Fund from participating in a market upswing and prevent a Fund from achieving its investment objective.
   
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ETFs and Other Investment Companies
As a non-principal investment strategy, the Funds may invest in securities of other open-end or closed-end investment companies, such as exchange-traded funds (“
ETFs
”), that invest primarily in securities of the types in which the Funds may invest directly.
An ETF is an investment company that holds a portfolio of securities generally designed to track the performance of a securities index, including industry, sector, country and region indexes. ETFs trade on a securities exchange and their shares may, at times, trade at a premium or discount to their net asset value.
As a shareholder in an investment company, the Funds will bear their ratable share of that vehicle’s expenses, and would remain subject to payment of the Funds’ advisory and administrative fees with respect to assets so invested. Shareholders would therefore be subject to duplicative expenses to the extent the Funds invest in an investment company. In addition, the Funds will incur brokerage costs when purchasing and selling shares of ETFs. The Funds will not invest in leveraged ETFs.
Generally, investments in other investment companies (including ETFs) are subject to statutory limitations prescribed by the Investment Company Act of 1940, as amended (the “
1940 Act
”). These limitations include a prohibition on a Fund acquiring more than 3% of the voting shares of any other investment company, and a prohibition on investing more than 5% of the Fund’s total assets in the securities of any one investment company or more than 10% of its total assets, in the aggregate, in investment company securities. Subject to certain conditions, the Funds may invest in money market funds beyond the statutory limits described above.
Disclosure of Portfolio Holdings
A description of the Funds’ policies and procedures with respect to the disclosure of the Funds’ portfolio holdings is available in the Funds’ statement of additional information. A list of each Fund’s portfolio holdings is available on the Funds’ website—www.nuveen.com/mutual-funds—by navigating to your Fund’s web page and clicking on the “Characteristics” link. By following this link, you can obtain a list of your Fund’s top ten holdings as of the end of the most recent month. A complete list of portfolio holdings information is generally made available on the Funds’ website ten business days after the end of the month. This information will remain available on the website until the Funds file with the Securities and Exchange Commission their annual, semi-annual or quarterly holdings report for the fiscal period that includes the date(s) as of which the website information is current.
 
What the Risks Are
Risk is inherent in all investing. Investing in a mutual fund involves risk, including the risk that you may receive little or no return on your investment or even that you may lose part or all of your investment. Therefore, before investing you should consider carefully the principal risks and certain other risks that you assume when you invest in the Funds. See the “Fund Summaries” section for a description of the principal risks of investing in a particular Fund. Additional information about these risks is listed alphabetically below. Because of these risks, you should consider an investment in the Funds to be a long-term investment.
Principal Risks
Active management risk:
The Funds’ sub-adviser actively manages each Fund’s investments. Consequently, the Funds are subject to the risk that the investment techniques and risk analyses employed by the Funds’ sub-adviser may not produce the
   
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47
desired results. This could cause a Fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives. Additionally, legislative, regulatory or tax developments may affect the investment techniques available to the Funds’ sub-adviser in connection with managing a Fund and such developments, as well as any deficiencies in the operating systems or controls of the sub-adviser or a Fund service provider, may also adversely affect the ability of a Fund to achieve its investment goal.
Convertible security risk:
Convertible securities in which Nuveen Dividend Value Fund invests are subject to certain risks of both equity and debt securities. The market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, a convertible security’s market value also tends to reflect the market price of the common stock of the issuing company. Convertible securities are also exposed to the risk that an issuer is unable to meet its obligation to make dividend or interest and principal payments when due as a result of changing financial or market conditions.
Mandatory convertible securities are distinguished as a subset of convertible securities because the conversion is not optional and the conversion price at maturity is based solely upon the market price of the underlying common stock, which may be significantly less than par or the price (above or below par) paid. Mandatory convertible securities generally do not limit the potential for loss to the same extent as securities convertible at the option of the holder.
Credit risk:
Nuveen Dividend Value Fund is subject to the risk that an issuer of a debt security held by the Fund may be unable or unwilling to make interest and principal payments and the related risk that the value of a debt security may decline because of concerns about the issuer’s ability or willingness to make such payments. Debt securities are subject to varying degrees of credit risk, which are often reflected in credit ratings. The credit rating of a debt security may be lowered if the issuer suffers adverse changes in its financial condition, which can lead to greater volatility in the price of the security and in shares of the Fund, and can also affect the security’s liquidity and make it more difficult for the Fund to sell. When the Fund purchases unrated securities, it will depend on the sub-adviser’s analysis of credit risk without the assessment of an independent rating organization, such as Moody’s or Standard & Poor’s.
To the extent that the Fund holds debt securities that are secured or guaranteed by financial institutions, changes in the credit quality of such financial institutions could cause the values of these debt securities to decline.
Currency risk:
Changes in currency exchange rates will affect the value of non-U.S. securities, the value of dividends and interest earned from such securities, gains and losses realized on the sale of such securities, and derivative transactions tied to such securities, and hence will affect the net asset value of a Fund that invests in such securities. A strong U.S. dollar relative to these other currencies will adversely affect the value of a Fund to the extent it invests in such non-U.S. securities.
Cybersecurity risk:
Intentional cybersecurity breaches include: unauthorized access to systems, networks or devices (such as through “hacking” activity); infection from computer viruses or other malicious software code; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. In addition, unintentional incidents can occur, such as the inadvertent release of confidential information (possibly resulting in the violation of applicable privacy laws).
   
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A cybersecurity breach could result in the loss or theft of customer data or funds, the inability to access electronic systems (“denial of services”), loss or theft of proprietary information or corporate data, physical damage to a computer or network system, or costs associated with system repairs. Such incidents could cause a Fund, a Fund’s adviser or sub-adviser, a financial intermediary, or other service providers to incur regulatory penalties, reputational damage, additional compliance costs or financial loss. Negative impacts on a Fund could include the inability to calculate net asset value, transact business, process transactions on behalf of shareholders or safeguard data. In addition, such incidents could affect issuers in which a Fund invests, and thereby cause the Fund’s investments to lose value.
Derivatives risk:
The use of derivatives presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Derivatives can be highly volatile, illiquid and difficult to value, and there is the risk that changes in the value of a derivative held by a Fund will not correlate with the asset, index or rate underlying the derivative contract.
The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the contract. A derivative transaction also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. These risks are heightened when the management team uses derivatives to enhance a Fund’s return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the Fund.
In addition, when a Fund engages in certain derivative transactions, it is effectively leveraging its investments, which could result in exaggerated changes in the net asset value of the Fund’s shares and can result in losses that exceed the amount originally invested. The success of a Fund’s derivatives strategies will depend on the sub-adviser’s ability to assess and predict the impact of market or economic developments on the underlying asset, index or rate and the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions.
A Fund may also enter into over-the-counter (“
OTC
”) transactions in derivatives. Transactions in the OTC markets generally are conducted on a principal-to-principal basis. The terms and conditions of these instruments generally are not standardized and tend to be more specialized or complex, and the instruments may be harder to value. In general, there is less governmental regulation and supervision of transactions in the OTC markets than of transactions entered into on organized exchanges. In addition, certain derivative instruments and markets may not be liquid, which means a Fund may not be able to close out a derivatives transaction in a cost-efficient manner.
Short positions in derivatives may involve greater risks than long positions, as the risk of loss on short positions is theoretically unlimited (unlike a long position, in which the risk of loss may be limited to the notional amount of the instrument).
Futures contracts are subject to the risk that an exchange may impose price fluctuation limits, which may make it difficult or impossible for a Fund to close out a position when desired.
Options contracts may expire unexercised, which may cause a Fund to realize a capital loss equal to the premium paid on a purchased option or a capital gain equal to the premium received on a written option.
Dividend-paying security risk:
Nuveen Dividend Value Fund’s investment in dividend-paying stocks could cause the Fund to underperform similar funds that invest without
   
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49
consideration of a company’s track record of paying dividends. Stocks of companies with a history of paying dividends may not participate in a broad market advance to the same degree as most other stocks, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. There is no guarantee that the issuers of the stocks held by the Fund will declare dividends in the future or that, if declared, they will remain at their current levels or increase over time. The Fund may also be harmed by changes to the favorable federal income tax treatment generally afforded to dividends.
Emerging markets risk:
The risk of foreign investment often increases in countries with emerging markets. Emerging markets generally do not have the level of market efficiency and strict standards in accounting and securities regulation to be on par with advanced economies. Obtaining disclosures comparable to frequency, availability and quality of disclosures required by securities in the U.S. may be difficult. Investments in emerging markets come with much greater risk due to political instability, domestic infrastructure problems and currency volatility. Because their financial markets may be very small, prices of financial instruments in emerging market countries may be volatile and difficult to determine. In addition, foreign investors such as a Fund are subject to a variety of special restrictions in many emerging market countries. Shareholder claims that are available in the U.S., as well as regulatory oversight, authority and enforcement actions that are common in the U.S. by regulators, may be difficult or impossible for shareholders of securities in emerging market countries or for U.S. authorities to pursue.
Equity security risk:
Equity securities in a Fund’s portfolio may decline significantly in price over short or extended periods of time. Even a long-term investment approach cannot guarantee a profit. Price changes may occur in the market as a whole, or they may occur in only a particular country, company, industry, or sector of the market. From time to time, a Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries. Adverse events in any part of the U.S. and global financial markets may have unexpected negative effects on equity markets. These events may at times result in unusually high market volatility, including short-term volatility, which could negatively affect Fund performance.
A variety of factors can negatively affect the price of a particular company's equity securities. These factors may include, but are not limited to: poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of the company's sector or industry, or changes in government regulations affecting the company or its industry.
Financial services sector risk:
Nuveen Dividend Value Fund and Nuveen Small Cap Value Fund currently invest a significant portion of their assets in the information technology sector, although this may change over time. Securities of companies in the financial services sector can be significantly affected by changes in, among other things, interest rates, currency exchange rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, portfolio concentrations in geographic markets, industries or products (such as commercial and residential real estate loans) and competition from new entrants.
Foreign investment risk:
Non-U.S. issuers or U.S. issuers with significant non-U.S. operations may be subject to risks in addition to or different than those of issuers that are located in or principally operated in the United States due to political, social and economic developments abroad, different regulatory environments and laws, potential seizure by the government of company assets, higher taxation, withholding taxes on dividends and interest and limitations on the use or transfer of portfolio assets. If any of
   
50
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these events were to occur, the affected security may experience drastic declines. In the event of a seizure of assets by a non-U.S. government, a Fund could lose its entire investment in that particular country.
To the extent a Fund invests in depositary receipts, the Fund will be subject to many of the same risks as when investing directly in non-U.S. securities. The holder of an unsponsored depositary receipt may have limited voting rights and may not receive as much information about the issuer of the underlying securities as would the holder of a sponsored depositary receipt.
Other non-U.S. investment risks include the following:
·
 
Enforcing legal rights may be difficult, costly and slow in non-U.S. countries, and there may be special problems enforcing claims against non-U.S. governments.
·
 
Non-U.S. companies may not be subject to accounting standards or governmental supervision comparable to U.S. companies, and there may be less public information about their operations.
·
 
Non-U.S. markets may be less liquid and more volatile than U.S. markets.
·
 
The U.S. and non-U.S. markets often rise and fall at different times or by different amounts due to economic or other developments particular to a given country or region. This phenomenon would tend to lower the overall price volatility of a portfolio that included both U.S. and non-U.S. securities. Sometimes, however, global trends will cause the U.S. and non-U.S. markets to move in the same direction, reducing or eliminating the risk reduction benefit of international investing.
·
 
Non-U.S. securities traded on foreign exchanges may be subject to further risks due to the inexperience of local investment professionals and financial institutions, the possibility of permanent or temporary termination of trading, and greater spreads between bid and asked prices for securities. In addition, non-U.S. exchanges and investment professionals are subject to less governmental regulation, and commissions may be higher than in the United States. Also, there may be delays in the settlement of non-U.S. exchange transactions.
·
 
A Fund’s income from non-U.S. issuers may be subject to non-U.S. withholding taxes. In some countries, the Fund also may be subject to taxes on trading profits and, on certain securities transactions, transfer or stamp duties tax. To the extent non-U.S. income taxes are paid by the Fund, U.S. shareholders may be entitled to a credit or deduction for U.S. tax purposes.
Some countries restrict to varying degrees foreign investment in their securities markets. In some circumstances, these restrictions may limit or preclude investment in certain countries or may increase the cost of investing in securities of particular companies.
Frequent trading risk:
A Fund's portfolio turnover rate may exceed 100%. Frequent trading of portfolio securities may produce capital gains, which are taxable to shareholders when distributed. Frequent trading may also increase the amount of commissions or mark-ups to broker-dealers that a Fund pays when it buys and sells securities, which may detract from the Fund’s performance.
Growth stock risk:
Nuveen Mid Cap Growth Opportunities Fund and Nuveen Small Cap Growth Opportunities Fund invest primarily in securities of companies with growth characteristics. Growth stocks tend to be more volatile than certain other types of stocks and their prices usually fluctuate more dramatically than the overall stock market. Growth stocks may be more expensive relative to their earnings or assets compared to other types of equity securities. Accordingly, a stock with growth characteristics can
   
Section 2
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51
have sharp price declines due to decreases in current or expected earnings and may lack dividends that can help cushion its share price in a declining market. In addition, growth stocks, at times, may not perform as well as value stocks or the stock market in general, and may be out of favor with investors for varying periods of time. Growth companies may be newer or smaller companies and may retain a large part of their earnings for research, development or investments in capital assets.
Health care sector risk:
Nuveen Mid Cap Growth Opportunities Fund, Nuveen Small Cap Growth Opportunities Fund and Nuveen Small Cap Select Fund currently invest a significant portion of their assets in the health care sector, although this may change over time. Health care companies may be affected by government regulations and government health care programs, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are heavily dependent on patent protection, and the expiration of a company’s patent may adversely affect that company’s profitability.
High yield securities risk:
Nuveen Dividend Value Fund may invest in securities that are rated below-investment grade, which are commonly referred to as “high yield” securities or “junk” bonds. High yield securities usually offer higher yields than investment grade securities, but also involve more risk. Analysis of the creditworthiness of issuers of high yield securities may be more complex than for issuers of higher rated debt securities. High yield securities are considered to be speculative with respect to the ability to pay interest and repay principal. High yield securities may be more susceptible to real or perceived adverse economic conditions than investment grade securities, and they generally have more volatile prices and carry more risk to principal. In addition, high yield securities generally are less liquid than investment grade securities. Any investment in distressed or defaulted securities subjects the Fund to even greater credit risk than investments in other below-investment grade securities.
Information technology sector risk:
Nuveen Large Cap Select Fund, Nuveen Mid Cap Growth Opportunities Fund and Nuveen Small Cap Growth Opportunities Fund currently invest a significant portion of their assets in the information technology sector, although this may change over time. Securities of companies in the information technology sector can be significantly affected by changes in, among other things, the supply and demand for specific products and services, the pace of technological development and product obsolescence, market competition, government regulation, and patent and intellectual property rights.
Interest rate risk:
Fixed-rate securities held by Nuveen Dividend Value Fund will fluctuate in value with changes in interest rates. In general, fixed-rate securities will increase in value when interest rates fall and decrease in value when interest rates rise. Short-term and long-term interest rates do not necessarily move in the same amount or in the same direction. Very low or negative interest rates may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, result in heightened market volatility and detract from the Fund’s performance to the extent that it is exposed to such interest rates. Under certain circumstances, very low or negative interest rates may cause the Fund to have very low or negative yields on some of its securities. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Longer-term fixed-rate securities are generally more sensitive to interest rate changes. Therefore, a fund that has a portfolio with a longer weighted average maturity or effective duration may be impacted to a greater degree than a fund that has a portfolio with a shorter weighted average maturity or effective duration. Conversely,
   
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fixed-rate securities with shorter durations or maturities will be less volatile but may provide lower returns than fixed-rate securities with longer durations or maturities. Rising interest rates also may lengthen the duration of securities with call features, since exercise of the call becomes less likely as interest rates rise, which in turn will make the securities more sensitive to changes in interest rates and result in even steeper price declines in the event of further interest rate increases.
Large-cap company risk:
Nuveen Large Cap Select Fund invests primarily in securities of large-capitalization companies. While large-cap companies may be less volatile than those of mid- and small-cap companies, they still involve risk. The Fund may underperform funds that invest primarily in securities of smaller capitalization companies during periods when the securities of such companies are in favor. Large-capitalization companies may be unable to respond as quickly as smaller capitalization companies to competitive challenges or to changes in business, product, financial or other market conditions.
Market risk:
The market value of a Fund’s investments may go up or down, sometimes rapidly or unpredictably and for short or extended periods of time. Market values may change due to the particular circumstances of individual issuers or due to general conditions impacting issuers more broadly within a specific country, region, industry, sector or asset class. Global economies and financial markets have become highly interconnected, and thus economic, market or political conditions or events in one country or region might adversely impact issuers in a different country or region. As a result, the value of a Fund’s investments may be negatively affected whether or not the Fund invests in a country or region directly impacted by such conditions or events.
Additionally, unexpected events and their aftermaths, including broad financial dislocations (such as the “great recession” of 2008-09), war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies (such as the COVID-19 coronavirus pandemic first detected in December of 2019), may adversely affect the global economy and the markets and issuers in which a Fund invests. These events could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, or widespread unemployment, and generally have a severe negative impact on the global economy. Such events could also impair the information technology and other operational systems upon which a Fund’s service providers, including the investment adviser and sub-adviser, rely, and could otherwise disrupt the ability of employees of a Fund’s service providers to perform essential tasks on behalf of a Fund. Furthermore, such events could cause financial markets to experience elevated or even extreme volatility and losses, and could result in the disruption of trading and the reduction of liquidity in many instruments. Governmental and quasi-governmental authorities and regulators throughout the world have in the past responded to major economic disruptions with a variety of significant fiscal and monetary policy changes, including but not limited to, direct capital infusions into companies, new monetary programs and dramatically lower interest rates. An unexpected or quick reversal of these policies, or the ineffectiveness of these policies, could increase volatility in securities markets, which could adversely affect the value of a Fund’s investments.
Mid-cap company risk:
Nuveen Mid Cap Growth Opportunities Fund and Nuveen Mid Cap Value Fund invest primarily in securities of mid-capitalization companies. While securities of mid-cap companies may be slightly less volatile than those of small-cap companies, they still involve substantial risk. Mid-cap companies may have limited product lines, markets or financial resources, and they may be dependent on a limited management group. Securities of mid-cap companies may be subject to more abrupt or
   
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53
erratic market movements than those of larger, more established companies or broader market averages in general.
Small-cap company risk:
Nuveen Small Cap Growth Opportunities Fund, Nuveen Small Cap Select Fund and Nuveen Small Cap Value Fund invest primarily in securities of small-capitalization companies. Securities of small-cap companies involve substantial risk. These companies may lack the management expertise, product diversification, and competitive strengths of larger companies. They may have limited access to financial resources and may not have the financial strength to sustain them through business downturns or adverse market conditions. Since small-cap companies typically reinvest a high proportion of their earnings in their business, they may not pay dividends for some time, particularly if they are newer companies. Prices of small-cap securities may be subject to more abrupt or erratic movements than security prices of larger, more established companies or broader market averages in general. In addition, the frequency and volume of their trading may be less than is typical of larger companies, making them subject to wider price fluctuations. In some cases, there could be difficulties in selling the securities of small-cap companies at the desired time and price, especially in situations of increased market volatility where a Fund may experience high levels of shareholder redemptions. Securities at the bottom end of the capitalization range of small-cap companies sometimes are referred to as “micro-cap” securities. These securities may be subject to extreme price volatility, as well as limited liquidity and limited research.
Value stock risk:
Nuveen Mid Cap Value Fund and Nuveen Small Cap Value Fund invest primarily in securities of companies with value characteristics. Value stocks are securities of companies that typically trade at a perceived discount to their intrinsic value and at valuation discounts relative to companies in the same industry. Value stocks often times are also in sectors that trade at a discount to the broader market. The reasons for their discount may vary greatly, but some examples may include adverse business, industry or other developments that may cause the company to be subject to special risks. Finding undervalued stocks requires considerable research to identify the particular company, analyze its financial condition and prospects, and assess the likelihood that the stock’s underlying value will be recognized by the market and reflected in its price. The intrinsic value of a stock with value characteristics in which a Fund invests may be difficult to identify and may not be fully recognized by the market for a long time or a stock identified to be undervalued may actually be appropriately priced at a low level. Value investing has gone in and out of favor during past market cycles and when value investing is out of favor the securities of value companies may underperform the securities of other companies.
Non-Principal Risks
Large transactions risk:
A Fund may experience adverse effects due to large purchases or redemptions of Fund shares. A large redemption by an individual shareholder, or an increase in redemptions generally by Fund shareholders, may cause a Fund to sell portfolio securities at times when it would not otherwise do so, which may negatively impact the Fund’s net asset value and liquidity. If a Fund has difficulty selling portfolio securities in a timely manner to meet redemption requests, the Fund may have to borrow money to do so. In such an instance, a Fund’s remaining shareholders would bear the costs of such borrowings, and such costs could reduce the Fund’s returns. In addition, until a Fund is able to sell securities to meet redemption requests, the Fund’s market exposure may be greater than it ordinarily would be, which would magnify the impact of any market movements on the Fund’s performance. Similarly, large Fund share purchases may adversely affect a Fund’s performance to the extent that the Fund is delayed in investing new cash and is required to maintain a larger cash position than it
   
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ordinarily would, reducing the Fund’s market exposure. Increased redemption activity may also result in unexpected taxable distributions to shareholders if such sales of investments resulted in gains and thereby accelerated the realization of taxable income. In addition, large redemptions could result in a Fund’s current expenses being allocated over a smaller asset base, leading to an increase in the Fund’s expense ratio.
Other investment companies risk:
When a Fund invests in other investment companies, such as ETFs, shareholders bear both their proportionate share of Fund expenses and, indirectly, the expenses of the other investment companies. Furthermore, each Fund is exposed to the risks to which the other investment companies may be subject. For index-based ETFs, while such ETFs seek to achieve the same returns as a particular market index, the performance of an ETF may diverge from the performance of such index (commonly known as tracking error).
   
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Section 3
How You Can Buy and Sell Shares
The Funds offer multiple classes of shares, each with a different combination of sales charges, fees, eligibility requirements and other features. Your financial advisor can help you determine which class is best for you. For further details, please see the statement of additional information. Because the prospectus and the statement of additional information are available free of charge on Nuveen’s website at www.nuveen.com, we do not disclose the following share class information separately on the website.
 
What Share Classes We Offer
The different share classes offered by the Funds are described below. You will pay up-front or contingent deferred sales charges on some of these share classes. In addition, some share classes are subject to annual distribution and/or service fees in the amounts described below, which are paid out of a Fund’s assets. These fees are paid to Nuveen Securities, LLC (the
“Distributor”
), a subsidiary of Nuveen, LLC and the distributor of the Funds, and are used primarily for providing compensation to financial intermediaries in connection with the distribution of Fund shares and for providing ongoing account services to shareholders. The Funds have adopted a distribution and service plan under Rule 12b-1 under the 1940 Act that allows each Fund to pay these distribution and service fees. More information on this plan can be found under “Distribution and Service Payments—Distribution and Service Plan.” Because fees paid under the plan are paid out of a Fund’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.
Class A Shares
You can purchase Class A shares at the offering price, which is the net asset value per share plus an up-front sales charge. You may qualify for a reduced sales charge, or the sales charge may be waived, as described in “How to Reduce Your Sales Charge.” Class A shares are also subject to an annual service fee of 0.25% of your Fund’s average daily net assets, which compensates your financial advisor or other financial intermediary for providing ongoing service to you. The Distributor retains the service fee on accounts with no financial intermediary of record. The up-front Class A sales charges for the Funds are as follows:
                 
Amount of Purchase
Sales Charge as
% of Public
Offering Price
 
Sales Charge as
% of Net
Amount Invested
 
Maximum Financial Intermediary Commission as % of Public Offering Price
Less than $50,000
5.75
%
 
6.10
%
 
5.00
%
$50,000 but less than $100,000
4.50
   
4.71
   
4.00
 
$100,000 but less than $250,000
3.75
   
3.90
   
3.25
 
$250,000 but less than $500,000
2.75
   
2.83
   
2.50
 
$500,000 but less than $1,000,000
2.00
   
2.04
   
1.75
 
$1,000,000 and over*
—
   
—
   
1.00
 
*
 
You can purchase $1 million or more of Class A shares at net asset value without an up-front sales charge. The Distributor pays financial intermediaries of record at a rate of 1.00% of the first $2.5 million, plus 0.75% of the next $2.5 million, plus 0.50% of the amount over $5 million, which includes an advance of the first year’s service fee. Unless you are eligible for a waiver, you may be assessed a contingent deferred sales charge (“
CDSC
”) of 1.00% if you redeem any of your shares within 18 months of purchase. See “Contingent Deferred Sales Charges” below for information concerning the CDSC and “How to Reduce Your Sales Charge—CDSC Waivers and Reductions” below for information concerning CDSC waivers and reductions.
   
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Investors may purchase Class A shares only for Fund accounts held with a financial advisor or other financial intermediary, and not directly with a Fund. In addition, Class A shares may not be available through certain financial intermediaries. Please consult with your financial intermediary to determine whether their policies allow for an investment in Class A shares.
Class C Shares
You can purchase Class C shares at the offering price, which is the net asset value per share without any up-front sales charge. Class C shares are subject to annual distribution and service fees of 1.00% of your Fund’s average daily net assets. The annual 0.25% service fee compensates your financial advisor or other financial intermediary for providing ongoing service to you. The annual 0.75% distribution fee compensates the Distributor for paying your financial advisor or other financial intermediary an ongoing sales commission as well as an advance of the first year's service and distribution fees. The Distributor retains the service and distribution fees on accounts with no financial intermediary of record. If you redeem your shares within 12 months of purchase, you will normally pay a 1.00% CDSC, which is calculated on the lower of your purchase price or redemption proceeds. You do not pay a CDSC on any Class C shares you purchase by reinvesting dividends. You may qualify for a reduced CDSC, or the CDSC may be waived, as described in “How to Reduce Your Sales Charge” below.
Investors purchasing Class C shares should consider whether they would qualify for a reduced or eliminated sales charge on Class A shares that would make purchasing Class A shares a better choice. Class A share sales charges can be reduced or eliminated based on the size of the purchase, or pursuant to a letter of intent or rights of accumulation. See “How to Reduce Your Sales Charge” below.
Class C share purchase orders equaling or exceeding $1,000,000 will not be accepted. In addition, the Funds limit the cumulative amount of Class C shares that may be purchased by a single purchaser. Your financial intermediary may set lower maximum purchase limits for Class C shares. See the statement of additional information for more information.
Class C shares automatically convert to Class A shares after 10 years (effective March 1, 2021, 8 years), thus reducing future annual expenses. Conversions occur during the month in which the 10-year (effective March 1, 2021, 8-year) anniversary of the purchase occurs. Class C shares that have been held for longer than 8 years as of March 1, 2021 will convert to Class A shares in March 2021. The automatic conversion is based on the relative net asset values of the two share classes without the imposition of a sales charge or fee. The automatic conversion of Class C shares to Class A shares may not apply to shares held through group retirement plan recordkeeping platforms of certain financial intermediaries who hold such shares in an omnibus account and do not track participant level share lot aging to facilitate such a conversion. Furthermore, the availability of the automatic Class C share conversion and the terms under which the conversion takes place may depend on the policies and/or system limitations of the financial intermediary through which you hold your shares. Information on intermediaries’ variations from the Class C share conversion discussed above is disclosed in the appendix to this prospectus, “Variations in Sales Charge Reductions and Waivers Through Certain Intermediaries.” Also, see “How to Reduce Your Sales Charge” below.
Investors may purchase Class C shares only for Fund accounts held with a financial advisor or other financial intermediary, and not directly with a Fund. In addition, Class C shares may not be available through certain financial intermediaries. Please consult with
   
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57
your financial intermediary to determine whether their policies allow for an investment in Class C shares.
Class R3 Shares
You can purchase Class R3 shares at the offering price, which is the net asset value per share without any up-front sales charge. Class R3 shares are subject to annual distribution and service fees of 0.50% of your Fund’s average daily net assets.
Investors may purchase Class R3 shares only for Fund accounts held with a financial advisor or other financial intermediary, and not directly with a Fund.
Class R3 shares are only available for purchase by eligible retirement plans. Class R3 shares are not available to traditional and Roth IRAs, Coverdell Education Savings Accounts, SEPs, SAR-SEPs, SIMPLE IRAs or individual 403(b) plans. See the statement of additional information for more information.
Nuveen Large Cap Select Fund does not issue Class R3 shares.
Class R6 Shares
Eligible investors can purchase Class R6 shares at the offering price, which is the net asset value per share without any up-front sales charge. As Class R6 shares are not subject to sales charges or ongoing service or distribution fees, they have lower ongoing expenses than the other classes.
Class R6 shares are available to certain qualified retirement plans and other investors. There is no minimum initial investment for qualified retirement plans, health savings accounts and 529 savings plans; however, the shares must be held through plan-level or omnibus accounts held on the books of a Fund. Class R6 shares are also available for purchase by clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services. Such clients may include individuals, corporations, endowments and foundations. The minimum initial investment for such clients is $100,000, but this minimum will be waived for clients of financial intermediaries that have accounts holding Class R6 shares with an aggregate value of at least $100,000. The Distributor may also waive the minimum for clients of financial intermediaries anticipated to reach this Class R6 share holdings level. All other eligible investors must meet a minimum initial investment of at least $1,000,000 in a Fund. Such minimum investment requirement may be applied collectively to affiliated accounts, in the discretion of the Distributor. Class R6 shares may be purchased through financial intermediaries only if such intermediaries have entered into an agreement with the Distributor to offer Class R6 shares. Class R6 shares are only available in cases where neither the investor nor the intermediary will receive any commission payments, account servicing fees, record keeping fees, 12b-1 fees, sub-transfer agent fees, so called “finder’s fees,” administration fees or similar fees with respect to Class R6 shares. Provided they meet the minimum investment and other eligibility requirements, eligible investors include:
·
 
Qualified retirement plans held in plan-level or omnibus accounts;
·
 
Foundations and endowment funds;
·
 
Any state, county, or city, or its instrumentality, department, authority or agency;
·
 
457 plans, including 457(b) governmental entity plans and tax exempt plans;
·
 
Omnibus or other pooled accounts registered to insurance companies, trust companies, bank trust departments, registered investment advisor firms and family offices;
   
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·
 
Investment companies;
·
 
Corporations, including corporate non-qualified deferred compensation plans of such corporations;
·
 
Collective investment trusts;
·
 
529 savings plans held in plan-level or omnibus accounts;
·
 
Health savings accounts held in plan-level or omnibus accounts; and
·
 
Discretionary accounts managed by Nuveen Fund Advisors or its affiliates.
Class R6 shares are also available for purchase, with no minimum initial investment, by the following categories of investors:
·
 
Current and former trustees/directors of any Nuveen Fund, and their immediate family members (as defined in the statement of additional information).
·
 
Officers of Nuveen, LLC and its affiliates, and their immediate family members.
·
 
Full-time and retired employees of Nuveen, LLC and its affiliates, and their immediate family members.
Class R6 shares are not available directly to traditional or Roth IRAs, Coverdell Savings Accounts, Keoghs, SEPs, SARSEPs, or SIMPLE IRAs.
Nuveen Large Cap Select Fund does not issue Class R6 shares.
Class I Shares
You can purchase Class I shares at the offering price, which is the net asset value per share without any up-front sales charge. As Class I shares are not subject to sales charges or ongoing service or distribution fees, they have lower ongoing expenses than the other classes.
Class I shares are available for purchase by clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services. Such clients may include individuals, corporations, endowments and foundations. The minimum initial investment for such clients is $100,000, but this minimum will be lowered to $250 for clients of financial intermediaries that have accounts holding Class I shares with an aggregate value of at least $100,000. The Distributor may also lower the minimum to $250 for clients of financial intermediaries anticipated to reach this Class I share holdings level.
Class I shares are also available for purchase by family offices and their clients. A family office is a company that provides certain financial and other services to a high net worth family or families. The minimum initial investment for family offices and their clients is $100,000, but this minimum will be lowered to $250 for clients of family offices that have accounts holding Class I shares with an aggregate value of at least $100,000. The Distributor may also lower the minimum to $250 for clients of family offices anticipated to reach this Class I share holdings level.
Class I shares are also available for purchase, with no minimum initial investment, by the following categories of investors:
·
 
Certain employer-sponsored retirement plans.
·
 
Certain bank or broker-affiliated trust departments.
·
 
Advisory accounts of Nuveen Fund Advisors and its affiliates.
   
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59
·
 
Investors purchasing through a brokerage platform of a financial intermediary that has an agreement with the Distributor to offer such shares solely when acting as an agent for such investors. Investors transacting through a financial intermediary’s brokerage platform may be required to pay a commission directly to the intermediary.
·
 
Current and former trustees/directors of any Nuveen Fund, and their immediate family members (as defined in the statement of additional information).
·
 
Officers of Nuveen, LLC and its affiliates, and their immediate family members.
·
 
Full-time and retired employees of Nuveen, LLC and its affiliates, and their immediate family members.
·
 
Certain financial intermediary personnel, and their immediate family members.
·
 
Certain other institutional investors described in the statement of additional information.
A financial intermediary through which you hold Class I shares may have the authority under its account agreement to exchange your Class I shares for another class of Fund shares having higher expenses than Class I shares if you withdraw from or are no longer eligible for the intermediary's fee-based program or under other circumstances. You may be subject to the sales charges and service and/or distribution fees applicable to the share class that you receive in such an exchange. You should contact your financial intermediary for more information about your eligibility to purchase Class I shares and the class of shares you would receive in an exchange if you no longer meet Class I eligibility requirements.
Please refer to the statement of additional information for more information about Class A, Class C, Class R3, Class R6 and Class I shares, including more detailed program descriptions and eligibility requirements. Additional information is also available from your financial advisor, who can also help you prepare any necessary application forms.
Contingent Deferred Sales Charges
If you redeem Class A or Class C shares that are subject to a CDSC, you may be assessed a CDSC upon redemption. When you redeem Class A or Class C shares subject to a CDSC, your Fund will first redeem any shares that are not subject to a CDSC, and then redeem the shares you have owned for the longest period of time, unless you ask the Fund to redeem your shares in a different order. No CDSC is imposed on shares you buy through the reinvestment of dividends and capital gains. The CDSC holding period is calculated on a monthly basis and begins on the first day of the month in which the purchase was made. When you redeem shares subject to a CDSC, the CDSC is calculated on the lower of your purchase price or redemption proceeds, deducted from your redemption proceeds, and paid to the Distributor. The CDSC may be waived under certain special circumstances as described below under “How You Can Buy and Sell Shares—How to Reduce Your Sales Charge—CDSC Waivers and Reductions,” in the appendix to this prospectus titled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries,” and in the statement of additional information.
 
How to Reduce Your Sales Charge
The Funds offer a number of ways to reduce or eliminate the up-front sales charge on Class A shares. In addition, under certain circumstances, the Funds will waive or reduce the CDSC imposed on redemptions of Class C shares and certain Class A shares
   
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purchased at net asset value.
The availability of the sales charge reductions and waivers discussed below will depend on the policies of the financial intermediary through which you purchase your shares. Information on intermediaries’ variations from the reductions and waivers discussed below are disclosed in the appendix to this prospectus, “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
In all instances, it is your responsibility to notify your financial intermediary at the time of purchase of any relationship or other facts qualifying you for sales charge waivers or discounts.
In order to obtain waivers and discounts that are not available through your intermediary, you will have to purchase Fund shares through another intermediary.
Class A Sales Charge Reductions
·
 
Rights of Accumulation.
In calculating the appropriate sales charge on a purchase of Class A shares of a Fund, you may be able to add the amount of your purchase to the value, based on the current net asset value per share, of all of your prior purchases of any Nuveen Mutual Fund.
·
 
Letter of Intent.
Subject to certain requirements, you may purchase Class A shares of a Fund at the sales charge rate applicable to the total amount of the purchases you intend to make over a 13-month period.
For purposes of calculating the appropriate sales charge as described under
Rights of Accumulation
and
Letter of Intent
above, you may include purchases by (i) you, (ii) your spouse or domestic partner and children under the age of 21 years, and (iii) a corporation, partnership or sole proprietorship that is 100% owned by any of the persons in (i) or (ii). In addition, a trustee or other fiduciary can count all shares purchased for a single trust, estate or other single fiduciary account that has multiple accounts (including one or more employee benefit plans of the same employer).
Class A Sales Charge Waivers
Class A shares of a Fund may be purchased at net asset value without a sales charge as follows:
·
 
Purchases of $1,000,000 or more (although such purchases may be subject to a CDSC in certain circumstances, see “What Share Classes We Offer—Contingent Deferred Sales Charges” above).
·
 
Shares purchased through the reinvestment of Nuveen Mutual Fund dividends and capital gain distributions.
·
 
Shares purchased for accounts held directly with a Fund that do not have a financial intermediary of record.
·
 
Certain employer-sponsored retirement plans.
Purchases by employer-sponsored retirement plans (“
ESRPs
”) as defined below, except that, in the case of ESRPs held through a brokerage account, Class A shares will be available at net asset value without a sales charge only if the broker-dealer has entered into an agreement with the Distributor that allows for such purchases. Intermediaries that have entered into such an agreement are listed in the appendix to this prospectus, “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
For this purpose, ESRPs include, but are not limited to, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans, health savings accounts, defined benefit plans, non-qualified deferred compensation plans, Roth 401(k) plans and Roth 403(b) plans, and do not include SEPs, SAR-SEPs, SIMPLE IRAs (other than SIMPLE IRAs opened before January 1, 2011 where the Distributor is the broker of record), SIMPLE 401(k) plans, Solo 401(k)
   
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plans, KEOGH plans, non-qualified deferred compensation plans and single defined benefit plans.
·
 
Employees of Nuveen, LLC and its affiliates.
Purchases by current and retired employees of Nuveen, LLC and its affiliates and such employees’ immediate family members (as defined in the statement of additional information).
·
 
Current and former trustees/directors of the Nuveen Funds.
·
 
Financial intermediary personnel.
Purchases by any person who, for at least the last 90 days, has been an officer, director, or employee of any financial intermediary or any such person’s immediate family member.
·
 
Certain trust departments.
Purchases by bank or broker-affiliated trust departments investing funds over which they exercise exclusive discretionary investment authority and that are held in a fiduciary, agency, advisory, custodial or similar capacity.
·
 
Additional categories of investors.
Purchases made (i) by investors purchasing on a periodic fee, asset-based fee or no transaction fee basis through a broker-dealer sponsored mutual fund purchase program; (ii) by clients of investment advisers, financial planners or other financial intermediaries that charge periodic or asset-based fees for their services; and (iii) through a financial intermediary that has entered into an agreement with the Distributor to offer the Funds’ shares to self-directed investment brokerage accounts and that may or may not charge a transaction fee to its customers. Intermediaries that have entered into such an agreement are listed in the appendix to this prospectus, “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
In order to obtain a sales charge reduction or waiver on Class A share purchases, it may be necessary at the time of purchase for you to inform the Funds or your financial advisor of the existence of other accounts in which there are holdings eligible to be aggregated for such purposes. You may need to provide the Funds or your financial advisor information or records, such as account statements, in order to verify your eligibility for a sales charge reduction or waiver. This may include account statements of family members and information regarding Nuveen Mutual Fund shares held in accounts with other financial advisors. You or your financial advisor must notify the Distributor at the time of each purchase if you are eligible for any of these programs. The Funds may modify or discontinue these programs at any time.
CDSC Waivers and Reductions
The CDSC payable upon the redemption of Class C shares, and on Class A shares that were purchased at net asset value without a sales charge because the purchase amount exceeded $1,000,000, may be waived or reduced under the following circumstances:
·
 
In the event of total disability of the shareholder.
·
 
In the event of death of the shareholder.
·
 
For certain redemptions made pursuant to a systematic withdrawal plan.
·
 
For redemptions in connection with a payment of account or plan fees.
·
 
For redemptions of accounts not meeting required minimum balances.
·
 
Upon an optional conversion by a Fund of Class C shares held in an account which no longer has a financial intermediary of record into Class A shares.
·
 
For redemptions of Class C shares where the Distributor did not advance the first year’s service and distribution fees to the intermediary.
   
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·
 
For redemptions of Class A shares where the Distributor did not pay a sales charge to the intermediary when the shares were purchased.
·
 
For certain redemptions of shares held by an employer-sponsored qualified defined contribution plan.
·
 
For certain redemptions of shares held in an IRA account, including redemptions to satisfy required minimum distributions from the account due to the shareholder reaching the qualified age based on applicable laws and regulations.
More information on these and other available CDSC waivers and reductions can be found in the appendix to this prospectus, “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries,” and in the statement of additional information.
 
How to Buy Shares
Fund shares may be purchased on any business day, which is any day the New York Stock Exchange (the “
NYSE
”) is open for business. Generally, the NYSE is closed on weekends and national holidays. The share price you pay depends on when the Distributor receives your order and on the share class you are purchasing. Orders received before the close of trading on a business day (normally, 4:00 p.m. New York time) will receive that day’s closing share price; otherwise, you will receive the next business day’s price.
You may purchase Fund shares (1) through a financial advisor or other financial intermediary or (2) directly from the Funds. Class A and Class C shares may not be purchased directly from a Fund. In addition, the availability of Class A and Class C shares through a financial intermediary will depend on the policies of the intermediary.
Through a Financial Advisor
You may buy shares through your financial advisor, who can handle all the details for you, including opening a new account. Financial advisors can also help you review your financial needs and formulate long-term investment goals and objectives. In addition, financial advisors generally can help you develop a customized financial plan, select investments and monitor and review your portfolio on an ongoing basis to help assure your investments continue to meet your needs as circumstances change. Financial advisors (including brokers or agents) are paid for providing ongoing investment advice and services, either from Fund sales charges and fees or by charging you a separate fee in lieu of a sales charge.
Financial advisors or other dealer firms may charge their customers a processing or service fee in connection with the purchase or redemption of Fund shares. The amount and applicability of such a fee is determined and disclosed to customers by each individual dealer. Processing or service fees typically are fixed, nominal dollar amounts and are in addition to the sales and other charges described in this prospectus and the statement of additional information. Your dealer will provide you with specific information about any processing or service fees you will be charged. Shares you purchase through your financial advisor or other intermediary will normally be held with that firm. For more information, please contact your financial advisor.
   
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63
Directly from the Funds
Eligible investors may purchase shares directly from the Funds.
·
 
By wire.
You can purchase shares by making a wire transfer from your bank. Before making an initial investment by wire, you must submit a new account form to a Fund. After receiving your form, a service representative will contact you with your account number and wiring instructions. Your order will be priced at the next closing share price based on the share class of your Fund, calculated after your Fund’s custodian receives your payment by wire. Wired funds must be received prior to 4:00 p.m. New York time to be eligible for same day pricing. Neither your Fund nor the transfer agent is responsible for the consequences of delays resulting from the banking or Federal Reserve wire system, or from incomplete wiring instructions. Before making any additional purchases by wire, you should call Nuveen Funds at (800) 257-8787. You cannot purchase shares by wire on days when federally chartered banks are closed.
·
 
By mail.
You may open an account directly with the Funds and buy shares by completing an application and mailing it along with your check to: Nuveen Funds, P.O. Box 219140, Kansas City, Missouri 64121-9140. Applications may be obtained at www.nuveen.com or by calling (800) 257-8787. No third party checks will be accepted.
Purchase orders and redemption requests are not processed until received in proper form by the transfer agent of a Fund.
·
 
On-line.
Existing shareholders with direct accounts may process certain account transactions on-line. You may purchase additional shares or exchange shares between existing, identically registered direct accounts. You can also look up your account balance, history and dividend information, as well as order duplicate account statements and tax forms from the Funds’ website. To access your account, click on the “Online Account Access” link under the “Individual Investors—Mutual Fund Account Access” heading at www.nuveen.com/client-access. The system will walk you through the log-in process. To purchase shares on-line, you must have established Fund Direct privileges on your account prior to the requested transaction. See “Special Services—Fund Direct” below.
·
 
By telephone.
Existing shareholders with direct accounts may also process account transactions via the Funds’ automated information line. Simply call (800) 257-8787, press 1 for mutual funds and the voice menu will walk you through the process. To purchase shares by telephone, you must have established Fund Direct privileges on your account prior to the requested transaction. See “Special Services—Fund Direct” below.
The Distributor does not have a customer relationship with you solely by virtue of acting as principal underwriter and distributor for your Fund. The Distributor does not offer or provide investment monitoring, make investment decisions for you, or hold customer accounts or assets. You make the ultimate decision regarding whether to buy or sell any Nuveen Fund.
 
Special Services
To help make your investing with us easy and efficient, we offer you the following services at no extra cost. Your financial advisor can help you complete the forms for these services, or you can call Nuveen Funds at (800) 257-8787 for copies of the necessary forms.
   
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Systematic Investing
Once you have opened an account satisfying the applicable investment minimum, systematic investing allows you to make regular additional investments through automatic deductions from your bank account, directly from your paycheck or from exchanging shares from another mutual fund account. The minimum automatic deduction is $100 per month. There is no charge to participate in your Fund’s systematic investment plan. You can stop the deductions at any time by notifying your Fund in writing.
·
 
From your bank account.
You can make systematic investments of $100 or more per month by authorizing your Fund to draw pre-authorized checks on your bank account.
·
 
From your paycheck.
With your employer’s consent, you can make systematic investments each pay period (collectively meeting the monthly minimum of $100) by authorizing your employer to deduct monies from your paycheck.
·
 
Systematic exchanging.
You can make systematic investments by authorizing the Distributor to exchange shares from one Nuveen Mutual Fund account into another identically registered Nuveen Mutual Fund account of the same share class.
Your Fund may cancel your participation in its systematic investment plan if it is unable to deliver a current prospectus to you because of an incorrect or invalid mailing address.
Systematic Withdrawal
If the value of your Fund account is at least $10,000, you may request to have $50 or more withdrawn automatically from your account. You may elect to receive payments monthly, quarterly, semi-annually or annually, and may choose to receive a check, have the monies transferred directly into your bank account (see “Fund Direct” below), paid to a third party or sent payable to you at an address other than your address of record. You must complete the appropriate section of the account application or Account Update Form to participate in each Fund’s systematic withdrawal plan.
You should not establish systematic withdrawals if you intend to make concurrent purchases of Class A or Class C shares because you may unnecessarily pay a sales charge or CDSC on these purchases.
Exchanging Shares
You may exchange Fund shares into an identically registered account for the same class of another Nuveen Mutual Fund available in your state. Your exchange must meet the minimum purchase requirements of the fund into which you are exchanging. You may also, under certain limited circumstances, exchange between certain classes of shares of the same fund, subject to the payment of any applicable CDSC. Please consult the statement of additional information for details.
Each Fund reserves the right to revise or suspend the exchange privilege, limit the amount or number of exchanges, or reject any exchange. In the event that a Fund rejects an exchange request, neither the redemption nor the purchase side of the exchange will be processed. If you would like the redemption request to be processed even if the purchase order is rejected, you may submit a separate redemption request (see “How to Sell Shares” below). Shareholders will be provided with at least 60 days’ notice of any material revision to or termination of the exchange privilege.
Because an exchange between funds is treated for tax purposes as a purchase and sale, any gain may be subject to tax. An exchange between classes of shares of the
   
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65
same fund may not be considered a taxable event. You should consult your tax advisor about the tax consequences of exchanging your shares.
Fund Direct
SM
The Fund Direct Program allows you to link your Fund account to your bank account, transfer money electronically between these accounts and perform a variety of account transactions, including purchasing shares by telephone and investing through a systematic investment plan. You may also have dividends, distributions, redemption payments or systematic withdrawal plan payments sent directly to your bank account.
Reinstatement Privilege
If you redeem Class A or Class C shares, you may reinvest all or part of your redemption proceeds up to one year later without incurring any additional charges. You may only reinvest into the same share class you redeemed. If you paid a CDSC, any shares purchased pursuant to the reinstatement privilege will not be subject to a CDSC. You may use this reinstatement privilege only once for any redemption.
 
How to Sell Shares
You may sell (redeem) your shares on any business day, which is any day the NYSE is open for business. You will receive the share price next determined after your Fund has received your properly completed redemption request. Your redemption request must be received before the close of trading (normally, 4:00 p.m. New York time) for you to receive that day’s price. The Fund will normally mail your check the next business day after a redemption request is received, but in no event more than seven days after your request is received. If you are selling shares purchased recently with a check, your redemption proceeds will not be mailed until your check has cleared, which may take up to ten business days from your purchase date.
You may sell your shares (1) through a financial advisor or (2) directly to the Funds.
Through a Financial Advisor
You may sell your shares through your financial advisor, who can prepare the necessary documentation. Your financial advisor may charge for this service.
Directly to the Funds
·
 
By mail.
You can sell your shares at any time by sending a written request to the appropriate Fund, c/o Nuveen Funds, P.O. Box 219140, Kansas City, Missouri 64121-9140. Your request must include the following information:
·
 
The Fund’s name;
·
 
Your name and account number;
·
 
The dollar or share amount you wish to redeem;
·
 
The signature of each owner exactly as it appears on the account;
·
 
The name of the person to whom you want your redemption proceeds paid (if other than to the shareholder of record);
·
 
The address where you want your redemption proceeds sent (if other than the address of record); and
·
 
Any required signature guarantees.
   
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After you have established your account, signatures on a written request must be guaranteed if:
·
 
You would like redemption proceeds payable or sent to any person, address or bank account other than that on record;
·
 
You have changed the address on your Fund’s records within the last 30 days;
·
 
Your redemption request is in excess of $50,000; or
·
 
You are requesting a change in ownership on your account.
Non-financial transactions, including establishing or modifying certain services such as changing bank information on an account, will require a signature guarantee or signature verification from a Medallion Signature Guarantee Program member or other acceptable form of authentication from a financial institution source. In addition to the situations described above, the Funds reserve the right to require a signature guarantee, or another acceptable form of signature verification, in other instances based on the circumstances of a particular situation.
A signature guarantee assures that a signature is genuine and protects shareholders from unauthorized account transfers. Banks, savings and loan associations, trust companies, credit unions, broker-dealers and member firms of a national securities exchange may guarantee signatures. Call your financial intermediary to determine if it has this capability. A notary public is not an acceptable signature guarantor. Proceeds from a written redemption request will be sent to you by check unless another form of payment is requested.
·
 
On-line.
You may redeem shares or exchange shares between existing, identically registered accounts on-line. To access your account, click on the “Online Account Access” link under the “Individual Investors—Mutual Fund Account Access” heading at www.nuveen.com/client-access. The system will walk you through the log-in process. Redemptions where the proceeds are payable by check may not exceed $50,000. Checks will only be issued to you as the shareholder of record and mailed to your address of record. If you have established Fund Direct privileges, you may have redemption proceeds transferred electronically to your bank account. In this case, the redemption proceeds will be transferred to your bank on the next business day after the redemption request is received. You should contact your bank for further information concerning the timing of the credit of the redemption proceeds in your bank account.
·
 
By telephone.
If your account is held with your Fund and not in your brokerage account, and you have authorized telephone redemption privileges, call (800) 257-8787 to redeem your shares, press 1 for mutual funds and the voice menu will walk you through the process. Redemptions where the proceeds are payable by check may not exceed $50,000. Checks will only be issued to you as the shareholder of record and mailed to your address of record, normally the next business day after the redemption request is received. If you have established Fund Direct privileges, you may have redemption proceeds transferred electronically to your bank account. In this case, the redemption proceeds will be transferred to your bank on the next business day after the redemption request is received. You should contact your bank for further information concerning the timing of the credit of the redemption proceeds in your bank account.
   
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An Important Note About Telephone Transactions
Although Nuveen Funds has certain safeguards and procedures to confirm the identity of callers, it will not be liable for losses resulting from following telephone instructions it reasonably believes to be genuine.
Also, you should verify your trade confirmations immediately upon receipt.
Accounts with Low Balances
A Fund reserves the right to liquidate or assess a low balance fee on any account (other than accounts holding Class R3 or Class R6 shares) held directly with the Fund that has a balance that has fallen below the account balance minimum of $1,000 for any reason, including market fluctuations.
If a Fund elects to exercise the right to assess a low balance fee, then annually the Fund will assess a $15 low balance account fee on certain accounts with balances under the account balance minimum that are IRAs, Coverdell Education Savings Accounts or accounts established pursuant to the UTMA or UGMA. At the same time, other accounts with balances under the account balance minimum will be liquidated, with proceeds being mailed to the address of record. Prior to the assessment of any low balance fee or liquidation of low balance accounts, affected shareholders will receive a communication notifying them of the pending action, thereby providing time for shareholders to bring their accounts up to the account balance minimum prior to any fee assessment or account liquidation. You will not be assessed a CDSC if your account is liquidated.
Meeting Redemption Requests
Each Fund typically will pay redemption proceeds using cash reserves maintained in the Fund’s portfolio, or using the proceeds from sales of portfolio securities. The Funds also may meet redemption requests through overdrafts at the Funds’ custodian, by borrowing under a credit agreement to which the Funds are parties, or by borrowing from another Nuveen Fund under an inter-fund lending program maintained by the Nuveen Funds pursuant to exemptive relief granted by the Securities and Exchange Commission. See “Investment Policies and Techniques—Borrowing” in the statement of additional information. These additional methods are more likely to be used to meet large redemption requests or in times of stressed market conditions.
Although the Funds generally pay redemption proceeds in cash, if a Fund determines that it would be detrimental to its remaining shareholders to make payment of a redemption order wholly in cash, that Fund may pay a portion of your redemption proceeds in securities or other Fund assets. In this situation, you would generally receive a proportionate distribution of each security held by the Fund to the extent practicable. Although it is unlikely that your shares would be redeemed in-kind, you would probably have to pay brokerage costs to sell the securities or other assets distributed to you, as well as taxes on any capital gains from that sale. Until they are sold, any securities or other assets distributed to you as part of a redemption in-kind may be subject to market risk.
   
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Section 4
 
General Information
To help you understand the tax implications of investing in the Funds, this section includes important details about how the Funds make distributions to shareholders. We discuss some other Fund policies as well. Please consult the statement of additional information and your tax advisor for more information about taxes.
 
Dividends, Distributions and Taxes
Dividends from net investment income are normally declared and paid quarterly for Nuveen Dividend Value Fund. For each other Fund, dividends from net investment income, if any, are normally declared and paid annually. For each of the Funds, any capital gains are normally distributed at least once each year. The Funds may declare and pay dividends, capital gains or other taxable distributions more frequently, if necessary or appropriate in the Board's discretion.
Payment and Reinvestment Options
The Funds automatically reinvest your dividends in additional Fund shares unless you request otherwise. You may request to have your dividends paid to you by check, sent via electronic funds transfer through Automated Clearing House network or reinvested in shares of another Nuveen Mutual Fund. For further information, contact your financial advisor or call Nuveen Funds at (800) 257-8787. If you request that your distributions be paid by check but those distributions cannot be delivered because of an incorrect mailing address, or if a distribution check remains uncashed for six months, the undelivered or uncashed distributions and all future distributions will be reinvested in Fund shares at the current net asset value.
Non-U.S. Income Tax Considerations
Investment income that a Fund receives from its non-U.S. investments may be subject to non-U.S. income taxes, which generally will reduce Fund distributions. However, the United States has entered into tax treaties with many non-U.S. countries that may entitle you to certain tax benefits.
If a Fund has more than 50% of the value of its assets in stock or other securities of non-U.S. corporations at the close of a taxable year, the Fund may, for such taxable year, elect to pass its non-U.S. tax credits through to shareholders.
Taxes and Tax Reporting
The Funds will make distributions that may be taxed as ordinary income (which may be taxable at different rates, depending on the sources of the distributions) or capital gains (which may be taxable at different rates, depending on the length of time a Fund holds its assets). Distributions from a Fund’s long-term capital gains are generally taxable as capital gains, while distributions from short-term capital gains and net investment income are generally taxable as ordinary income. However, certain ordinary income distributions received from a Fund that are determined to be qualified dividend income may be taxed at tax rates equal to those applicable to long-term capital gains. The tax you pay on a given capital gain distribution depends generally on how long the Fund has held the portfolio securities it sold and not on how long you have owned your Fund shares. Distributions generally do not qualify for a dividends received deduction if you are a corporate shareholder.
   
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Early in each year, you will receive a statement detailing the amount and nature of all distributions that you were paid during the prior year. If you hold your investment at the firm where you purchased your Fund shares, you will receive the statement from that firm. If you hold your shares directly with the Fund, the Distributor will send you the statement. The tax status of your distributions is the same whether you reinvest them or elect to receive them in cash. The sale of shares in your account may produce a gain or loss, and is a taxable event. For tax purposes, an exchange of shares between funds is generally the same as a sale.
Please note that if you do not furnish your Fund with your correct Social Security number or employer identification number, you fail to provide certain certifications to your Fund, you fail to certify whether you are a U.S. citizen or a U.S. resident alien, or the Internal Revenue Service notifies the Fund to withhold, federal law requires your Fund to withhold federal income tax from your distributions and redemption proceeds at the applicable withholding rate.
Buying or Selling Shares Close to a Record Date
Buying Fund shares shortly before the record date for a taxable dividend or capital gain distribution is commonly known as “buying the dividend.” The entire distribution may be taxable to you even though a portion of the distribution effectively represents a return of your purchase price.
Non-U.S. Investors
The Funds are offered for sale in the United States and are not widely available outside the United States. Non-U.S. investors should be aware that U.S. withholding and estate taxes and certain U.S. tax reporting requirements may apply to any investment in a Fund.
Cost Basis Method
For shares acquired on or after January 1, 2012, you may elect a cost basis method to apply to all existing and future accounts you may establish. The cost basis method you select will determine the order in which shares are redeemed and how your cost basis information is calculated and subsequently reported to you and to the Internal Revenue Service. Please consult your tax advisor to determine which cost basis method best suits your specific situation. If you hold your account directly with a Fund, please contact Nuveen Funds at (800) 257-8787 for instructions on how to make your election. If you hold your account with a financial intermediary, please contact that financial intermediary for instructions on how to make your election. If you hold your account directly with a Fund and do not elect a cost basis method, your account will default to the average cost basis method. The average cost basis method generally calculates cost basis by determining the average price paid for Fund shares that may have been purchased at different times for different prices. Financial intermediaries choose their own default cost basis method.
 
Distribution and Service Payments
Distribution and Service Plan
The Distributor serves as the selling agent and distributor of the Funds’ shares. In this capacity, the Distributor manages the offering of the Funds’ shares and is responsible for all sales and promotional activities. In order to reimburse the Distributor for its costs in connection with these activities, including compensation paid to financial intermediaries, each Fund has adopted a distribution and service plan under Rule 12b-1 under the 1940
   
70
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Act (the “
Plan
”). See “How You Can Buy and Sell Shares—What Share Classes We Offer” for a description of the distribution and service fees paid under the Plan.
Under the Plan, the Distributor receives a distribution fee for Class C and Class R3 shares primarily for providing compensation to financial intermediaries, including the Distributor, in connection with the distribution of shares. The Distributor receives a service fee for Class A, Class C and Class R3 shares to compensate financial intermediaries, including the Distributor, for providing ongoing account services to shareholders. These services may include establishing and maintaining shareholder accounts, answering shareholder inquiries and providing other personal services to shareholders. Fees paid under the Plan also compensate the Distributor for other expenses, including printing and distributing prospectuses to persons other than shareholders, and preparing, printing, and distributing advertising materials, sales literature and reports to shareholders used in connection with the sale of shares. Because fees paid under the Plan are paid out of a Fund’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges. Long-term holders of Class C and Class R3 shares may pay more in distribution and service fees and CDSCs (Class C shares only) than the economic equivalent of the maximum front-end sales charge permitted under the Financial Industry Regulatory Authority Conduct Rules.
Other Payments by the Funds
In addition to the distribution and service fees the Funds pay under the Plan and fees the Funds pay to their transfer agent, the Distributor or Nuveen Fund Advisors, on behalf of the Funds, may enter into non-Plan agreements with financial intermediaries pursuant to which the Funds will pay financial intermediaries for administrative, networking, recordkeeping, sub-transfer agency and shareholder services. These non-Plan payments are generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a financial intermediary or (2) a fixed dollar amount for each account serviced by a financial intermediary. The aggregate amount of these payments may be substantial and may vary significantly among intermediaries.
Other Payments by the Distributor and Nuveen Fund Advisors
In addition to the sales commissions and payments from distribution and service fees made to financial intermediaries as previously described, the Distributor and Nuveen Fund Advisors may from time to time make additional payments, out of their own resources, to certain financial intermediaries that sell shares of Nuveen Mutual Funds in order to promote the sales and retention of Fund shares by those firms and their customers. The amounts of these payments vary by financial intermediary and, with respect to a given firm, are typically calculated by reference to the amount of the firm’s recent gross sales of Nuveen Mutual Fund shares and/or total assets of Nuveen Mutual Funds held by the firm’s customers. The level of payments that the Distributor and/or Nuveen Fund Advisors is willing to provide to a particular financial intermediary may be affected by, among other factors, the firm’s total assets held in and recent net investments into Nuveen Mutual Funds, the firm’s level of participation in Nuveen Mutual Fund sales and marketing programs, the firm’s compensation program for its registered representatives who sell Nuveen Mutual Fund shares and provide services to Nuveen Mutual Fund shareholders, and the asset class of the Nuveen Mutual Funds for which these payments are provided. The statement of additional information contains additional information about these payments, including the names of the firms to which payments are made. The Distributor may also make payments to financial intermediaries in connection with sales meetings, due diligence meetings, prospecting seminars and other meetings at which the Distributor promotes its products and services.
   
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In connection with the availability of Nuveen Mutual Funds within selected mutual fund no-transaction fee institutional platforms and fee-based wrap programs at certain financial intermediaries, the Distributor and Nuveen Fund Advisors also make payments out of their own assets to those firms as compensation for certain recordkeeping, shareholder communications and other account administration services provided to Nuveen Mutual Fund shareholders who own their Fund shares through these platforms or programs. These payments are in addition to the service fee and any applicable sub-transfer agency or similar fees paid to these firms with respect to these services by the Nuveen Mutual Funds out of Fund assets.
The amounts of payments to a financial intermediary could be significant, and may create an incentive for the intermediary or its representatives to recommend or offer shares of the Funds to you. The intermediary may elevate the prominence or profile of the Funds within the intermediary’s organization by, for example, placing the Funds on a list of preferred or recommended funds and/or granting the Distributor and/or its affiliates preferential or enhanced opportunities to promote the Funds in various ways within the intermediary’s organization.
There is some uncertainty concerning whether the types of payments described above may be made to or received by a financial intermediary with respect to Class I shares offered through the intermediary’s brokerage platform where the intermediary imposes commissions on purchases and redemptions of such shares. Such payments may be terminated in light of future regulatory developments.
 
Net Asset Value
The price you pay for your shares or the amount you receive upon redemption of your shares is based on your Fund’s net asset value per share, which is determined as of the close of trading (normally 4:00 p.m. New York time) on each day the NYSE is open for business. Each Fund’s latest net asset value per share is available on the Funds’ website at www.nuveen.com. Net asset value is calculated for each class of each Fund by taking the value of the class’s total assets, including interest or dividends accrued but not yet collected, less all liabilities, and dividing by the total number of shares outstanding. The result, rounded to the nearest cent, is the net asset value per share.
In determining net asset value, portfolio instruments generally are valued using prices provided by independent pricing services or obtained from other sources, such as broker-dealer quotations. Exchange-traded instruments generally are valued at the last reported sales price or official closing price on an exchange, if available. Independent pricing services typically value non-exchange-traded instruments utilizing a range of market-based inputs and assumptions. For example, when available, pricing services may utilize inputs such as benchmark yields, reported trades, broker-dealer quotes, spreads, and transactions for comparable instruments. In pricing certain instruments, the pricing services may consider information about an instrument’s issuer or market activity provided by the Funds’ investment adviser or sub-adviser. Pricing service valuations of non-exchange-traded instruments represent the service’s good faith opinion as to what the holder of an instrument would receive in an orderly transaction for an institutional round lot position under current market conditions. It is possible that these valuations could be materially different from the value that a Fund realizes upon the sale of an instrument. Non-U.S. securities and currency are valued in U.S. dollars based on non-U.S. currency exchange rate quotations supplied by an independent quotation service.
For non-U.S. traded securities whose principal local markets close before the close of the NYSE, a Fund may adjust the local closing price based upon such factors as
   
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developments in non-U.S. markets, the performance of U.S. securities markets and the performance of instruments trading in U.S. markets that represent non-U.S. securities. A Fund may rely on an independent fair valuation service in making any such fair value determinations. If a Fund holds portfolio instruments that are primarily listed on non-U.S. exchanges, the value of such instruments may change on days when shareholders will not be able to purchase or redeem the Fund’s shares.
If a price cannot be obtained from a pricing service or other pre-approved source, or if, in the judgment of Nuveen Fund Advisors, a price is unreliable, a portfolio instrument will be valued at its fair value as determined in good faith by the Board of Directors or its appointee. Nuveen Fund Advisors may determine that a price is unreliable in various circumstances. For example, a price may be deemed unreliable if it has not changed for an identified period of time, or has changed from the previous day’s price by more than a threshold amount, and recent transactions and/or broker dealer price quotations differ materially from the price in question.
The Board of Directors has adopted valuation procedures for the Funds and has appointed the Nuveen Fund Advisors’ Valuation Committee with the day-to-day responsibility for fair value determinations. All fair value determinations made by the Valuation Committee are subject to review and ratification by the Board of Directors. As a general principle, the fair value of a portfolio instrument is the amount that an owner might reasonably expect to receive upon the instrument’s current sale. A range of factors and analysis may be considered when determining fair value, including relevant market data, interest rates, credit considerations and/or issuer specific news. However, fair valuation involves subjective judgments and it is possible that the fair value determined for a portfolio instrument may be materially different from the value that could be realized upon the sale of that instrument.
 
Frequent Trading
The Funds are intended for long-term investment and should not be used for excessive trading. Excessive trading in the Funds’ shares can disrupt portfolio management, lead to higher operating costs, and cause other operating inefficiencies for the Funds. However, the Funds are also mindful that shareholders may have valid reasons for periodically purchasing and redeeming Fund shares.
Accordingly, the Funds have adopted a Frequent Trading Policy that seeks to balance the Funds’ need to prevent excessive trading in Fund shares while offering investors the flexibility in managing their financial affairs to make periodic purchases and redemptions of Fund shares.
The Funds’ Frequent Trading Policy generally limits an investor to two “round trip” trades in a 60-day period. A “round trip” is the purchase and subsequent redemption of Fund shares, including by exchange. Each side of a round trip may be comprised of either a single transaction or a series of closely-spaced transactions.
The Funds primarily receive share purchase and redemption orders through third-party financial intermediaries, some of whom rely on the use of omnibus accounts. An omnibus account typically includes multiple investors and provides the Funds only with a net purchase or redemption amount on any given day where multiple purchases, redemptions and exchanges of shares occur in the account. The identity of individual purchasers, redeemers and exchangers whose orders are aggregated in omnibus accounts, and the size of their orders, will generally not be known by the Funds. Despite the Funds’ efforts to detect and prevent frequent trading, the Funds may be unable to
   
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identify frequent trading because the netting effect in omnibus accounts often makes it more difficult to identify frequent traders. The Distributor has entered into agreements with financial intermediaries that maintain omnibus accounts with the Funds’ transfer agent. Under the terms of these agreements, the financial intermediaries undertake to cooperate with the Distributor in monitoring purchase, exchange and redemption orders by their customers in order to detect and prevent frequent trading in the Funds through such accounts. Pursuant to these agreements, financial intermediaries may disclose to a Fund an investor’s taxpayer identification number and a record of the investor’s transactions at the request of the Fund. Technical limitations in operational systems at such intermediaries or at the Distributor may also limit the Funds’ ability to detect and prevent frequent trading. In addition, the Funds may permit certain financial intermediaries, including broker-dealer and retirement plan administrators, among others, to enforce their own internal policies and procedures concerning frequent trading. Such policies may differ from the Funds’ Frequent Trading Policy and may be approved for use in instances where the Funds reasonably believe that the intermediary’s policies and procedures effectively discourage inappropriate trading activity. Shareholders holding their accounts with such intermediaries may wish to contact the intermediary for information regarding its frequent trading policy. Although the Funds do not knowingly permit frequent trading, they cannot guarantee that they will be able to identify and restrict all frequent trading activity.
The Funds reserve the right in their sole discretion to waive unintentional or minor violations (including transactions below certain dollar thresholds) if they determine that doing so would not harm the interests of Fund shareholders. In addition, certain categories of redemptions may be excluded from the application of the Frequent Trading Policy, as described in more detail in the statement of additional information. These include, among others, redemptions pursuant to systematic withdrawal plans, redemptions in connection with the total disability or death of the investor, involuntary redemptions by operation of law, redemptions in payment of account or plan fees, and certain redemptions by retirement plans, including redemptions in connection with qualifying loans or hardship withdrawals, termination of plan participation, return of excess contributions, and required minimum distributions. The Funds may also modify or suspend the Frequent Trading Policy without notice during periods of market stress or other unusual circumstances.
The Funds reserve the right to impose restrictions on purchases or exchanges that are more restrictive than those stated above if they determine, in their sole discretion, that a transaction or a series of transactions involves market timing or excessive trading that may be detrimental to Fund shareholders. The Funds also reserve the right to reject any purchase order, including exchange purchases, for any reason. For example, a Fund may refuse purchase orders if the Fund would be unable to invest the proceeds from the purchase order in accordance with the Fund’s investment policies and/or objective, or if the Fund would be adversely affected by the size of the transaction, the frequency of trading in the account or various other factors. For more information about the Funds’ Frequent Trading Policy and its enforcement, see “Purchase and Redemption of Fund Shares—Frequent Trading Policy” in the statement of additional information.
 
Fund Service Providers
The custodian of the assets of the Funds is State Street Bank and Trust Company, One Lincoln Street, Boston, Massachusetts 02111. The custodian also provides certain accounting services to the Funds. The Funds’ transfer, shareholder services and dividend paying agent, DST Asset Manager Solutions, Inc., P.O. Box 219140, Kansas
   
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City, Missouri 64121-9140, performs bookkeeping, data processing and administrative services for the maintenance of shareholder accounts.
   
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75
Section 5
 
Financial Highlights
The financial highlights table is intended to help you understand a Fund’s financial performance for the past five fiscal years or, if shorter, the period of operations for the class of shares. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in a Fund (assuming reinvestment of all dividends and distributions). The information has been derived from the Funds’ financial statements, which have been audited by PricewaterhouseCoopers LLP, whose report for the most recent fiscal year, along with the Funds’ financial statements, are included in the annual report, which is available upon request.
Nuveen Dividend Value Fund
                                                                         
Class (Commencement Date)
 
Investment Operations
 
Less Distributions
   
Ratios/Supplemental Data
         
 
             
Ratios of
 
         
 
             
Net
 
         
 
           
Ratios of
Investment
 
   
Net
Net
 
 
From
From
     
Ending
Expenses
Income (Loss)
 
   
Investment
Realized/
 
 
Net
Accumulated
     
Net
to Average
to Average
Portfolio
Year Ended
Beginning
Income
Unrealized
 
 
Investment
Net Realized
 
Ending
Total
Assets
Net
Net
Turnover
October 31:
NAV
(Loss)(a)
Gain (Loss)
Total
 
Income
Gains
Total
NAV
Return(b)(c)
(000)
Assets
Assets(d)
Rate(e)
Class A (12/92)
2020
$
14.21
 
$
0.25
 
$
(1.98
)
$
(1.73
)
 
$
(0.23
)
$
(0.81
)
$
(1.04
)
$
11.44
 
(13.12
)%
$
158,645
1.09
%
2.00
%
117
%
2019
 
14.32
 
 
0.26
 
 
0.96
 
 
1.22
 
 
 
(0.28
)
 
(1.05
)
 
(1.33
)
 
14.21
 
9.81
 
 
215,710
1.11
 
1.94
 
93
 
2018
 
15.67
 
 
0.25
 
 
0.35
 
 
0.60
 
 
 
(0.24
)
 
(1.71
)
 
(1.95
)
 
14.32
 
3.72
 
 
264,271
1.08
 
1.68
 
68
 
2017
 
15.12
 
 
0.22
 
 
2.72
 
 
2.94
 
 
 
(0.22
)
 
(2.17
)
 
(2.39
)
 
15.67
 
20.95
 
 
269,063
1.08
 
1.46
 
56
 
2016
 
15.81
 
 
0.25
 
 
0.48
 
 
0.73
 
 
 
(0.30
)
 
(1.12
)
 
(1.42
)
 
15.12
 
5.33
 
 
259,457
1.14
 
1.69
 
67
 
Class C (2/99)
2020
 
13.93
 
 
0.15
 
 
(1.92
)
 
(1.77
)
 
 
(0.14
)
 
(0.81
)
 
(0.95
)
 
11.21
 
(13.75
)
 
11,881
1.84
 
1.24
 
117
 
2019
 
14.06
 
 
0.16
 
 
0.93
 
 
1.09
 
 
 
(0.17
)
 
(1.05
)
 
(1.22
)
 
13.93
 
8.98
 
 
23,083
1.86
 
1.19
 
93
 
2018
 
15.41
 
 
0.14
 
 
0.35
 
 
0.49
 
 
 
(0.13
)
 
(1.71
)
 
(1.84
)
 
14.06
 
2.98
 
 
31,111
1.83
 
0.95
 
68
 
2017
 
14.90
 
 
0.11
 
 
2.68
 
 
2.79
 
 
 
(0.11
)
 
(2.17
)
 
(2.28
)
 
15.41
 
20.09
 
 
39,825
1.83
 
0.72
 
56
 
2016
 
15.60
 
 
0.14
 
 
0.47
 
 
0.61
 
 
 
(0.19
)
 
(1.12
)
 
(1.31
)
 
14.90
 
4.46
 
 
43,097
1.89
 
0.94
 
67
 
Class R3 (9/01)
2020
 
14.14
 
 
0.21
 
 
(1.95
)
 
(1.74
)
 
 
(0.20
)
 
(0.81
)
 
(1.01
)
 
11.39
 
(13.28
)
 
16,717
1.34
 
1.75
 
117
 
2019
 
14.26
 
 
0.23
 
 
0.94
 
 
1.17
 
 
 
(0.24
)
 
(1.05
)
 
(1.29
)
 
14.14
 
9.50
 
 
23,091
1.36
 
1.68
 
93
 
2018
 
15.60
 
 
0.22
 
 
0.36
 
 
0.58
 
 
 
(0.21
)
 
(1.71
)
 
(1.92
)
 
14.26
 
3.53
 
 
27,927
1.33
 
1.44
 
68
 
2017
 
15.08
 
 
0.18
 
 
2.71
 
 
2.89
 
 
 
(0.20
)
 
(2.17
)
 
(2.37
)
 
15.60
 
20.64
 
 
33,639
1.33
 
1.21
 
56
 
2016
 
15.77
 
 
0.22
 
 
0.47
 
 
0.69
 
 
 
(0.26
)
 
(1.12
)
 
(1.38
)
 
15.08
 
5.01
 
 
31,758
1.39
 
1.49
 
67
 
Class R6 (2/13)
2020
 
14.54
 
 
0.30
 
 
(2.02
)
 
(1.72
)
 
 
(0.29
)
 
(0.81
)
 
(1.10
)
 
11.72
 
(12.80
)
 
2,025,717
0.70
 
2.41
 
117
 
2019
 
14.61
 
 
0.32
 
 
0.99
 
 
1.31
 
 
 
(0.33
)
 
(1.05
)
 
(1.38
)
 
14.54
 
10.29
 
 
52,824
0.72
 
2.30
 
93
 
2018
 
15.93
 
 
0.32
 
 
0.36
 
 
0.68
 
 
 
(0.29
)
 
(1.71
)
 
(2.00
)
 
14.61
 
4.15
 
 
172,215
0.72
 
2.05
 
68
 
2017
 
15.32
 
 
0.25
 
 
2.79
 
 
3.04
 
 
 
(0.26
)
 
(2.17
)
 
(2.43
)
 
15.93
 
21.40
 
 
188,356
0.73
 
1.63
 
56
 
2016
 
15.99
 
 
0.30
 
 
0.49
 
 
0.79
 
 
 
(0.34
)
 
(1.12
)
 
(1.46
)
 
15.32
 
5.63
 
 
50,588
0.79
 
2.04
 
67
 
Class I (8/94)
2020
 
14.42
 
 
0.28
 
 
(2.01
)
 
(1.73
)
 
 
(0.27
)
 
(0.81
)
 
(1.08
)
 
11.61
 
(12.96
)
 
408,828
0.84
 
2.25
 
117
 
2019
 
14.51
 
 
0.30
 
 
0.98
 
 
1.28
 
 
 
(0.32
)
 
(1.05
)
 
(1.37
)
 
14.42
 
10.14
 
 
661,390
0.86
 
2.18
 
93
 
2018
 
15.85
 
 
0.30
 
 
0.36
 
 
0.66
 
 
 
(0.29
)
 
(1.71
)
 
(2.00
)
 
14.51
 
4.02
 
 
617,086
0.83
 
1.94
 
68
 
2017
 
15.27
 
 
0.26
 
 
2.75
 
 
3.01
 
 
 
(0.26
)
 
(2.17
)
 
(2.43
)
 
15.85
 
21.25
 
 
561,047
0.83
 
1.73
 
56
 
2016
 
15.95
 
 
0.29
 
 
0.49
 
 
0.78
 
 
 
(0.34
)
 
(1.12
)
 
(1.46
)
 
15.27
 
5.56
 
 
654,967
0.89
 
1.95
 
67
 
                                         
(a)
Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b)
During the fiscal year ended October 31, 2020, the Fund began receiving voluntary compensation from Nuveen Fund Advisors. The Fund's Total Return for each share class would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded.
(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)
Ratios reflect voluntary compensation from Nuveen Fund Advisors in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if Nuveen Fund Advisors had purchased the research services directly. Each Ratio of Net Investment Income (Loss) to Average Net Assets includes the effect of the payments from Nuveen Fund Advisors for each share class as follows:
       
 
 
 
 
 
 
 
 
 
 
 
Ratios of Payments from Nuveen Fund Advisors to Average Net Assets
 
 
Year Ended October 31:
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
   
 
2020
 
—
%
—
%
0.01
%
0.01
%
0.01
%
 
 
2019
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2018
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2017
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2016
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
(e)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period.
N/A
Fund did not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020.
 
 
 
 
 
 
 
   
76
Section 5
Financial Highlights
Nuveen Large Cap Select Fund
                                                                         
Class (Commencement Date)
 
Investment Operations
 
Less Distributions
 
 
Ratios/Supplemental Data
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratios of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratios of
Investment
 
 
 
Net
Net
 
 
From
From
 
 
 
Ending
Expenses
Income (Loss)
 
 
 
Investment
Realized/
 
 
Net
Accumulated
 
 
 
Net
to Average
to Average
Portfolio
Year Ended
Beginning
Income
Unrealized
 
 
Investment
Net Realized
 
Ending
Total
Assets
Net
Net
Turnover
October 31:
NAV
(Loss)(a)
Gain (Loss)
Total
 
Income
Gains
Total
NAV
Return(b)(c)
(000)
Assets(d)
Assets(d)
Rate(e)
Class A (1/03)
2020
$
30.71
 
$
0.17
 
$
1.61
 
$
1.78
 
 
$
(0.37
)
$
—
 
$
(0.37
)
$
32.12
 
5.76
%
$
24,135
1.11
%
0.54
%
101
%
2019
 
28.87
 
 
0.21
 
 
2.72
 
 
2.93
 
 
 
(0.10
)
 
(0.99
)
 
(1.09
)
 
30.71
 
10.86
 
 
24,224
1.15
 
0.73
 
108
 
2018
 
27.50
 
 
0.12
 
 
1.38
 
 
1.50
 
 
 
(0.13
)
 
—
 
 
(0.13
)
 
28.87
 
5.47
 
 
23,030
1.14
 
0.39
 
101
 
2017
 
21.24
 
 
0.10
 
 
6.25
 
 
6.35
 
 
 
(0.09
)
 
—
 
 
(0.09
)
 
27.50
 
29.99
 
 
14,778
1.14
 
0.40
 
276
 
2016
 
20.59
 
 
0.09
 
 
0.61
 
 
0.70
 
 
 
(0.05
)
 
—
 
 
(0.05
)
 
21.24
 
3.40
 
 
7,983
1.21
 
0.45
 
116
 
Class C (1/03)
2020
 
28.28
 
 
(0.06
)
 
1.47
 
 
1.41
 
 
 
(0.13
)
 
—
 
 
(0.13
)
 
29.56
 
4.99
 
 
1,743
1.86
 
(0.21
)
101
 
2019
 
26.77
 
 
—
* 
 
2.50
 
 
2.50
 
 
 
—
 
 
(0.99
)
 
(0.99
)
 
28.28
 
10.02
 
 
2,097
1.90
 
(0.02
)
108
 
2018
 
25.57
 
 
(0.10
)
 
1.30
 
 
1.20
 
 
 
—
 
 
—
 
 
—
 
 
26.77
 
4.65
 
 
2,145
1.89
 
(0.37
)
101
 
2017
 
19.82
 
 
(0.08
)
 
5.83
 
 
5.75
 
 
 
—
 
 
—
 
 
—
 
 
25.57
 
29.06
 
 
1,389
1.89
 
(0.34
)
276
 
2016
 
19.31
 
 
(0.06
)
 
0.57
 
 
0.51
 
 
 
—
 
 
—
 
 
—
 
 
19.82
 
2.64
 
 
1,074
1.96
 
(0.31
)
116
 
Class I (1/03)
2020
 
30.98
 
 
0.25
 
 
1.62
 
 
1.87
 
 
 
(0.44
)
 
—
 
 
(0.44
)
 
32.41
 
6.02
 
 
16,030
0.86
 
0.79
 
101
 
2019
 
29.13
 
 
0.28
 
 
2.73
 
 
3.01
 
 
 
(0.17
)
 
(0.99
)
 
(1.16
)
 
30.98
 
11.13
 
 
18,567
0.90
 
0.98
 
108
 
2018
 
27.74
 
 
0.19
 
 
1.40
 
 
1.59
 
 
 
(0.20
)
 
—
 
 
(0.20
)
 
29.13
 
5.74
 
 
48,569
0.89
 
0.65
 
101
 
2017
 
21.42
 
 
0.16
 
 
6.30
 
 
6.46
 
 
 
(0.14
)
 
—
 
 
(0.14
)
 
27.74
 
30.31
 
 
45,599
0.89
 
0.66
 
276
 
2016
 
20.76
 
 
0.14
 
 
0.62
 
 
0.76
 
 
 
(0.10
)
 
—
 
 
(0.10
)
 
21.42
 
3.69
 
 
37,597
0.96
 
0.70
 
116
 
   
(a)
Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b)
During the fiscal year ended October 31, 2020, the Fund began receiving voluntary compensation from Nuveen Fund Advisors. The Fund's Total Return for each share class would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded.
(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 Nuveen Fund Advisors, where applicable.
(e)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period.
*
Rounds to less than $0.01 per share.
   
Section 5
Financial Highlights
77
Nuveen Mid Cap Growth Opportunities Fund
                                                                         
Class (Commencement Date)
 
Investment Operations
 
Less Distributions
   
Ratios/Supplemental Data
         
 
             
Ratios of
 
         
 
             
Net
 
         
 
           
Ratios of
Investment
 
   
Net
Net
 
 
From
From
     
Ending
Expenses
Income (Loss)
 
   
Investment
Realized/
 
 
Net
Accumulated
     
Net
to Average
to Average
Portfolio
Year Ended
Beginning
Income
Unrealized
 
 
Investment
Net Realized
 
Ending
Total
Assets
Net
Net
Turnover
October 31:
NAV
(Loss)(a)
Gain (Loss)
Total
 
Income
Gains
Total
NAV
Return(b)(c)
(000)
Assets(d)
Assets(d)(e)
Rate(f)
Class A (1/95)
2020
$
33.66
 
$
(0.09
)
$
8.01
 
$
7.92
 
 
$
—
 
 
(7.34
)
$
(7.34
)
$
34.24
 
28.09
%
$
185,219
1.17
%
(0.29
)%
89
%
2019
 
36.79
 
 
(0.12
)
 
3.48
 
 
3.36
 
 
 
—
 
 
(6.49
)
 
(6.49
)
 
33.66
 
13.43
 
 
172,912
1.17
 
(0.35
)
90
 
2018
 
43.45
 
 
(0.20
)
 
1.16
 
 
0.96
 
 
 
—
 
 
(7.62
)
 
(7.62
)
 
36.79
 
2.35
 
 
196,212
1.17
 
(0.51
)
106
 
2017
 
36.09
 
 
(0.17
)
 
9.20
 
 
9.03
 
 
 
—
 
 
(1.67
)
 
(1.67
)
 
43.45
 
25.89
 
 
250,908
1.17
 
(0.43
)
136
 
2016
 
40.91
 
 
(0.12
)
 
(1.36
)
 
(1.48
)
 
 
—
 
 
(3.34
)
 
(3.34
)
 
36.09
 
(3.78
)
 
280,681
1.27
 
(0.33
)
89
 
Class C (9/01)
2020
 
22.20
 
 
(0.18
)
 
4.74
 
 
4.56
 
 
 
—
 
 
(7.34
)
 
(7.34
)
 
19.42
 
27.07
 
 
5,208
1.92
 
(1.04
)
89
 
2019
 
26.85
 
 
(0.24
)
 
2.08
 
 
1.84
 
 
 
—
 
 
(6.49
)
 
(6.49
)
 
22.20
 
12.58
 
 
5,664
1.92
 
(1.11
)
90
 
2018
 
33.94
 
 
(0.36
)
 
0.89
 
 
0.53
 
 
 
—
 
 
(7.62
)
 
(7.62
)
 
26.85
 
1.60
 
 
7,936
1.92
 
(1.25
)
106
 
2017
 
28.74
 
 
(0.36
)
 
7.23
 
 
6.87
 
 
 
—
 
 
(1.67
)
 
(1.67
)
 
33.94
 
24.95
 
 
16,278
1.92
 
(1.18
)
136
 
2016
 
33.50
 
 
(0.31
)
 
(1.11
)
 
(1.42
)
 
 
—
 
 
(3.34
)
 
(3.34
)
 
28.74
 
(4.50
)
 
16,956
2.02
 
(1.08
)
89
 
Class R3 (12/00)
2020
 
30.52
 
 
(0.14
)
 
7.10
 
 
6.96
 
 
 
—
 
 
(7.34
)
 
(7.34
)
 
30.14
 
27.77
 
 
16,742
1.42
 
(0.52
)
89
 
2019
 
34.10
 
 
(0.18
)
 
3.09
 
 
2.91
 
 
 
—
 
 
(6.49
)
 
(6.49
)
 
30.52
 
13.15
 
 
22,135
1.42
 
(0.61
)
90
 
2018
 
40.90
 
 
(0.28
)
 
1.10
 
 
0.82
 
 
 
—
 
 
(7.62
)
 
(7.62
)
 
34.10
 
2.09
 
 
26,098
1.42
 
(0.76
)
106
 
2017
 
34.14
 
 
(0.25
)
 
8.68
 
 
8.43
 
 
 
—
 
 
(1.67
)
 
(1.67
)
 
40.90
 
25.60
 
 
35,402
1.42
 
(0.66
)
136
 
2016
 
38.98
 
 
(0.20
)
 
(1.30
)
 
(1.50
)
 
 
—
 
 
(3.34
)
 
(3.34
)
 
34.14
 
(4.04
)
 
55,093
1.52
 
(0.57
)
89
 
Class R6 (2/13)
2020
 
43.07
 
 
0.03
 
 
10.70
 
 
10.73
 
 
 
—
 
 
(7.34
)
 
(7.34
)
 
46.46
 
28.54
 
 
28,966
0.81
 
0.06
 
89
 
2019
 
44.94
 
 
0.01
 
 
4.61
 
 
4.62
 
 
 
—
 
 
(6.49
)
 
(6.49
)
 
43.07
 
13.85
 
 
26,329
0.79
 
0.02
 
90
 
2018
 
51.24
 
 
(0.05
)
 
1.37
 
 
1.32
 
 
 
—
 
 
(7.62
)
 
(7.62
)
 
44.94
 
2.75
 
 
56,250
0.78
 
(0.11
)
106
 
2017
 
42.11
 
 
(0.02
)
 
10.82
 
 
10.80
 
 
 
—
 
 
(1.67
)
 
(1.67
)
 
51.24
 
26.41
 
 
72,703
0.78
 
(0.03
)
136
 
2016
 
47.00
 
 
0.06
 
 
(1.61
)
 
(1.55
)
 
 
—
 
 
(3.34
)
 
(3.34
)
 
42.11
 
(3.41
)
 
50,677
0.86
 
0.14
 
89
 
Class I (12/89)
2020
 
42.49
 
 
(0.01
)
 
10.53
 
 
10.52
 
 
 
—
 
 
(7.34
)
 
(7.34
)
 
45.67
 
28.38
 
 
150,875
0.92
 
(0.03
)
89
 
2019
 
44.49
 
 
(0.05
)
 
4.54
 
 
4.49
 
 
 
—
 
 
(6.49
)
 
(6.49
)
 
42.49
 
13.73
 
 
165,663
0.92
 
(0.12
)
90
 
2018
 
50.85
 
 
(0.12
)
 
1.38
 
 
1.26
 
 
 
—
 
 
(7.62
)
 
(7.62
)
 
44.49
 
2.61
 
 
331,728
0.92
 
(0.26
)
106
 
2017
 
41.87
 
 
(0.08
)
 
10.73
 
 
10.65
 
 
 
—
 
 
(1.67
)
 
(1.67
)
 
50.85
 
26.20
 
 
425,158
0.92
 
(0.18
)
136
 
2016
 
46.81
 
 
(0.04
)
 
(1.56
)
 
(1.60
)
 
 
—
 
 
(3.34
)
 
(3.34
)
 
41.87
 
(3.54
)
 
491,747
1.02
 
(0.08
)
89
 
                                                     
(a)
Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b)
During the fiscal year ended October 31, 2020, the Fund began receiving voluntary compensation from Nuveen Fund Advisors. The Fund's Total Return for each share class would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded.
(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 Nuveen Fund Advisors, where applicable.
(e)
Ratios reflect voluntary compensation from Nuveen Fund Advisors in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if Nuveen Fund Advisors had purchased the research services directly. Each Ratio of Net Investment Income (Loss) to Average Net Assets includes the effect of the payments from Nuveen Fund Advisors for each share class as follows:
       
 
 
 
 
 
 
 
 
 
 
 
Ratios of Payments from Nuveen Fund Advisors to Average Net Assets
 
 
Year Ended October 31:
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
   
 
2020
 
0.01
%
0.01
%
0.01
%
0.01
%
0.01
%
 
 
2019
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2018
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2017
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2016
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
(f)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period.
N/A
Fund did not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020.
 
 
 
 
 
 
 
   
78
Section 5
Financial Highlights
Nuveen Mid Cap Value Fund
                                                                         
Class (Commencement Date)
 
Investment Operations
 
Less Distributions
   
Ratios/Supplemental Data
         
 
             
Ratios of
 
         
 
             
Net
 
         
 
           
Ratios of
Investment
 
   
Net
Net
 
 
From
From
     
Ending
Expenses
Income (Loss)
 
   
Investment
Realized/
 
 
Net
Accumulated
     
Net
to Average
to Average
Portfolio
Year Ended
Beginning
Income
Unrealized
 
 
Investment
Net Realized
 
Ending
Total
Assets
Net
Net
Turnover
October 31:
NAV
(Loss)(a)
Gain (Loss)
Total
 
Income
Gains
Total
NAV
Return(b)(c)
(000)
Assets(d)
Assets(d)(e)
Rate(f)
Class A (12/87)
2020
$
41.07
 
$
0.43
 
$
(4.59
)
$
(4.16
)
 
$
(0.38
)
$
—
 
$
(0.38
)
$
36.53
 
(10.26
)%
$
41,258
1.17
%
1.16
%
56
%
2019
 
38.91
 
 
0.40
 
 
3.29
 
 
3.69
 
 
 
(0.09
)
 
(1.44
)
 
(1.53
)
 
41.07
 
10.19
 
 
55,467
1.17
 
1.04
 
46
 
2018
 
42.32
 
 
0.29
 
 
(0.46
)
 
(0.17
)
 
 
(0.26
)
 
(2.98
)
 
(3.24
)
 
38.91
 
(0.65
)
 
51,202
1.17
 
0.69
 
49
 
2017
 
35.23
 
 
0.26
 
 
8.17
 
 
8.43
 
 
 
(0.32
)
 
(1.02
)
 
(1.34
)
 
42.32
 
24.43
 
 
40,319
1.17
 
0.67
 
43
 
2016
 
35.39
 
 
0.30
 
 
0.72
 
 
1.02
 
 
 
(0.09
)
 
(1.09
)
 
(1.18
)
 
35.23
 
3.12
 
 
34,230
1.26
 
0.86
 
44
 
Class C (2/99)
2020
 
38.49
 
 
0.14
 
 
(4.34
)
 
(4.20
)
 
 
(0.08
)
 
—
 
 
(0.08
)
 
34.21
 
(10.94
)
 
4,649
1.92
 
0.40
 
56
 
2019
 
36.73
 
 
0.11
 
 
3.09
 
 
3.20
 
 
 
—
 
 
(1.44
)
 
(1.44
)
 
38.49
 
9.39
 
 
7,631
1.92
 
0.30
 
46
 
2018
 
40.17
 
 
—
*
 
(0.46
)
 
(0.46
)
 
 
—
 
 
(2.98
)
 
(2.98
)
 
36.73
 
(1.41
)
 
6,899
1.92
 
—
**
49
 
2017
 
33.50
 
 
(0.03
)
 
7.78
 
 
7.75
 
 
 
(0.06
)
 
(1.02
)
 
(1.08
)
 
40.17
 
23.52
 
 
7,474
1.92
 
(0.08
)
43
 
2016
 
33.86
 
 
0.04
 
 
0.69
 
 
0.73
 
 
 
—
 
 
(1.09
)
 
(1.09
)
 
33.50
 
2.32
 
 
6,529
2.01
 
0.11
 
44
 
Class R3 (9/01)
2020
 
40.67
 
 
0.33
 
 
(4.55
)
 
(4.22
)
 
 
(0.28
)
 
—
 
 
(0.28
)
 
36.17
 
(10.47
)
 
8,182
1.42
 
0.91
 
56
 
2019
 
38.55
 
 
0.31
 
 
3.25
 
 
3.56
 
 
 
—
 
 
(1.44
)
 
(1.44
)
 
40.67
 
9.92
 
 
10,230
1.42
 
0.81
 
46
 
2018
 
41.95
 
 
0.18
 
 
(0.44
)
 
(0.26
)
 
 
(0.16
)
 
(2.98
)
 
(3.14
)
 
38.55
 
(0.90
)
 
7,670
1.42
 
0.44
 
49
 
2017
 
34.94
 
 
0.17
 
 
8.09
 
 
8.26
 
 
 
(0.23
)
 
(1.02
)
 
(1.25
)
 
41.95
 
24.11
 
 
5,284
1.42
 
0.43
 
43
 
2016
 
35.17
 
 
0.21
 
 
0.65
 
 
0.86
 
 
 
—
 
 
(1.09
)
 
(1.09
)
 
34.94
 
2.86
 
 
5,206
1.51
 
0.61
 
44
 
Class R6 (6/18)
2020
 
41.32
 
 
0.57
 
 
(4.59
)
 
(4.02
)
 
 
(0.52
)
 
—
 
 
(0.52
)
 
36.78
 
(9.91
)
 
16,762
0.78
 
1.54
 
56
 
2019
 
39.10
 
 
0.55
 
 
3.30
 
 
3.85
 
 
 
(0.19
)
 
(1.44
)
 
(1.63
)
 
41.32
 
10.63
 
 
19,481
0.77
 
1.39
 
46
 
2018(g)
 
42.86
 
 
0.11
 
 
(3.87
)
 
(3.76
)
 
 
—
 
 
—
 
 
—
 
 
39.10
 
(8.77
)
 
958
0.79
***
0.71
***
49
 
Class I (2/94)
2020
 
41.24
 
 
0.52
 
 
(4.59
)
 
(4.07
)
 
 
(0.48
)
 
—
 
 
(0.48
)
 
36.69
 
(10.03
)
 
214,089
0.92
 
1.41
 
56
 
2019
 
39.08
 
 
0.51
 
 
3.28
 
 
3.79
 
 
 
(0.19
)
 
(1.44
)
 
(1.63
)
 
41.24
 
10.48
 
 
250,717
0.92
 
1.30
 
46
 
2018
 
42.49
 
 
0.40
 
 
(0.47
)
 
(0.07
)
 
 
(0.36
)
 
(2.98
)
 
(3.34
)
 
39.08
 
(0.40
)
 
139,841
0.92
 
0.95
 
49
 
2017
 
35.36
 
 
0.36
 
 
8.20
 
 
8.56
 
 
 
(0.41
)
 
(1.02
)
 
(1.43
)
 
42.49
 
24.75
 
 
57,365
0.92
 
0.92
 
43
 
2016
 
35.52
 
 
0.38
 
 
0.73
 
 
1.11
 
 
 
(0.18
)
 
(1.09
)
 
(1.27
)
 
35.36
 
3.38
 
 
53,631
1.01
 
1.11
 
44
 
                                                     
(a)
Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b)
During the fiscal year ended October 31, 2020, the Fund began receiving voluntary compensation from Nuveen Fund Advisors. The Fund's Total Return for each share class would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded.
(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 Nuveen Fund Advisors, where applicable.
(e)
Ratios reflect voluntary compensation from Nuveen Fund Advisors in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if Nuveen Fund Advisors had purchased the research services directly. Each Ratio of Net Investment Income (Loss) to Average Net Assets includes the effect of the payments from Nuveen Fund Advisors for each share class as follows:
       
 
 
 
 
 
 
 
 
 
 
 
Ratios of Payments from Nuveen Fund Advisors to Average Net Assets
 
 
Year Ended October 31:
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
   
 
2020
 
0.01
%
0.01
%
0.01
%
0.01
%
0.01
%
 
 
2019
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2018
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2017
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2016
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
(f)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period.
(g)
For the period June 20, 2018 (commencement of operations) through October 31, 2018.
*
Rounds to less than $0.01 per share.
**
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.
 
 
 
 
 
 
 
   
Section 5
Financial Highlights
79
Nuveen Small Cap Growth Opportunities Fund
                                                                         
Class (Commencement Date)
 
Investment Operations
 
Less Distributions
   
Ratios/Supplemental Data
         
 
             
Ratios of
 
         
 
             
Net
 
         
 
           
Ratios of
Investment
 
   
Net
Net
 
 
From
From
     
Ending
Expenses
Income (Loss)
 
   
Investment
Realized/
 
 
Net
Accumulated
     
Net
to Average
to Average
Portfolio
Year Ended
Beginning
Income
Unrealized
 
 
Investment
Net Realized
 
Ending
Total
Assets
Net
Net
Turnover
October 31:
NAV
(Loss)(a)
Gain (Loss)
Total
 
Income
Gains
Total
NAV
Return(b)(c)
(000)
Assets(d)
Assets(d)(e)
Rate(f)
Class A (8/95)
2020
$
20.96
 
$
(0.18
)
$
6.57
 
$
6.39
 
 
$
—
 
$
—
 
$
—
 
$
27.35
 
30.55
%
$
41,683
1.22
%
(0.77
)%
105
%
2019
 
23.54
 
 
(0.14
)
 
0.84
 
 
0.70
 
 
 
—
 
 
(3.28
)
 
(3.28
)
 
20.96
 
5.47
 
 
34,249
1.23
 
(0.68
)
104
 
2018
 
24.78
 
 
(0.17
)
 
1.94
 
 
1.77
 
 
 
—
 
 
(3.01
)
 
(3.01
)
 
23.54
 
7.89
 
 
36,452
1.24
 
(0.72
)
139
 
2017
 
19.90
 
 
(0.16
)
 
5.14
 
 
4.98
 
 
 
—
 
 
(0.10
)
 
(0.10
)
 
24.78
 
25.07
 
 
34,934
1.30
 
(0.69
)
95
 
2016
 
21.57
 
 
(0.10
)
 
0.45
 
 
0.35
 
 
 
—
 
 
(2.02
)
 
(2.02
)
 
19.90
 
1.90
 
 
31,255
1.42
 
(0.52
)
106
 
Class C (9/01)
2020
 
15.01
 
 
(0.25
)
 
4.68
 
 
4.43
 
 
 
—
 
 
—
 
 
—
 
 
19.44
 
29.51
 
 
2,158
1.97
 
(1.52
)
105
 
2019
 
18.01
 
 
(0.21
)
 
0.49
 
 
0.28
 
 
 
—
 
 
(3.28
)
 
(3.28
)
 
15.01
 
4.74
 
 
1,631
1.98
 
(1.43
)
104
 
2018
 
19.79
 
 
(0.27
)
 
1.50
 
 
1.23
 
 
 
—
 
 
(3.01
)
 
(3.01
)
 
18.01
 
7.05
 
 
2,141
1.99
 
(1.46
)
139
 
2017
 
16.02
 
 
(0.26
)
 
4.13
 
 
3.87
 
 
 
—
 
 
(0.10
)
 
(0.10
)
 
19.79
 
24.21
 
 
2,181
2.05
 
(1.44
)
95
 
2016
 
17.89
 
 
(0.20
)
 
0.35
 
 
0.15
 
 
 
—
 
 
(2.02
)
 
(2.02
)
 
16.02
 
1.10
 
 
1,971
2.18
 
(1.27
)
106
 
Class R3 (12/00)
2020
 
19.45
 
 
(0.22
)
 
6.09
 
 
5.87
 
 
 
—
 
 
—
 
 
—
 
 
25.32
 
30.18
 
 
1,482
1.47
 
(1.02
)
105
 
2019
 
22.16
 
 
(0.18
)
 
0.75
 
 
0.57
 
 
 
—
 
 
(3.28
)
 
(3.28
)
 
19.45
 
5.23
 
 
1,253
1.48
 
(0.94
)
104
 
2018
 
23.56
 
 
(0.22
)
 
1.83
 
 
1.61
 
 
 
—
 
 
(3.01
)
 
(3.01
)
 
22.16
 
7.60
 
 
1,206
1.49
 
(0.97
)
139
 
2017
 
18.97
 
 
(0.21
)
 
4.90
 
 
4.69
 
 
 
—
 
 
(0.10
)
 
(0.10
)
 
23.56
 
24.77
 
 
1,608
1.55
 
(0.94
)
95
 
2016
 
20.71
 
 
(0.14
)
 
0.42
 
 
0.28
 
 
 
—
 
 
(2.02
)
 
(2.02
)
 
18.97
 
1.62
 
 
1,631
1.67
 
(0.78
)
106
 
Class R6 (6/16)
2020
 
25.69
 
 
(0.07
)
 
8.07
 
 
8.00
 
 
 
—
 
 
—
 
 
—
 
 
33.69
 
31.14
 
 
1,038
0.78
 
(0.26
)
105
 
2019
 
27.88
 
 
(0.05
)
 
1.14
 
 
1.09
 
 
 
—
 
 
(3.28
)
 
(3.28
)
 
25.69
 
6.13
 
 
144
0.85
 
(0.19
)
104
 
2018
 
28.72
 
 
(0.10
)
 
2.27
 
 
2.17
 
 
 
—
 
 
(3.01
)
 
(3.01
)
 
27.88
 
8.24
 
 
14,475
0.88
 
(0.35
)
139
 
2017
 
22.96
 
 
(0.08
)
 
5.94
 
 
5.86
 
 
 
—
 
 
(0.10
)
 
(0.10
)
 
28.72
 
25.56
 
 
19,108
0.93
 
(0.32
)
95
 
2016(g)
 
21.63
 
 
(0.02
)
 
1.35
 
 
1.33
 
 
 
—
 
 
—
 
 
—
 
 
22.96
 
6.15
 
 
19,524
0.96
*
(0.23
)*
106
 
Class I (8/95)
2020
 
25.51
 
 
(0.14
)
 
8.01
 
 
7.87
 
 
 
—
 
 
—
 
 
—
 
 
33.38
 
30.81
 
 
168,931
0.97
 
(0.51
)
105
 
2019
 
27.79
 
 
(0.10
)
 
1.10
 
 
1.00
 
 
 
—
 
 
(3.28
)
 
(3.28
)
 
25.51
 
5.78
 
 
172,242
0.98
 
(0.41
)
104
 
2018
 
28.66
 
 
(0.13
)
 
2.27
 
 
2.14
 
 
 
—
 
 
(3.01
)
 
(3.01
)
 
27.79
 
8.14
 
 
56,194
0.99
 
(0.46
)
139
 
2017
 
22.94
 
 
(0.12
)
 
5.94
 
 
5.82
 
 
 
—
 
 
(0.10
)
 
(0.10
)
 
28.66
 
25.41
 
 
43,557
1.05
 
(0.44
)
95
 
2016
 
24.51
 
 
(0.06
)
 
0.51
 
 
0.45
 
 
 
—
 
 
(2.02
)
 
(2.02
)
 
22.94
 
2.10
 
 
34,468
1.19
 
(0.26
)
106
 
                                                     
(a)
Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b)
During the fiscal year ended October 31, 2020, the Fund began receiving voluntary compensation from Nuveen Fund Advisors. The Fund's Total Return for each share class would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded.
(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 Nuveen Fund Advisors, where applicable.
(e)
Ratios reflect voluntary compensation from Nuveen Fund Advisors in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if Nuveen Fund Advisors had purchased the research services directly. Each Ratio of Net Investment Income (Loss) to Average Net Assets includes the effect of the payments from Nuveen Fund Advisors for each share class as follows:
       
 
 
 
 
 
 
 
 
 
 
 
Ratios of Payments from Nuveen Fund Advisors to Average Net Assets
 
 
Year Ended October 31:
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
   
 
2020
 
0.01
%
0.01
%
0.01
%
0.01
%
0.01
%
 
 
2019
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2018
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2017
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2016
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
(f)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period.
(g)
For the period June 30, 2016 (commencement of operations) through October 31, 2016.
*
Annualized.
N/A
Fund did not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020.
 
 
 
 
 
 
 
   
80
Section 5
Financial Highlights
Nuveen Small Cap Select Fund
                                                                         
Class (Commencement Date)
 
Investment Operations
 
Less Distributions
   
Ratios/Supplemental Data
         
 
             
Ratios of
 
         
 
             
Net
 
         
 
           
Ratios of
Investment
 
   
Net
Net
 
 
From
From
     
Ending
Expenses
Income (Loss)
 
   
Investment
Realized/
 
 
Net
Accumulated
     
Net
to Average
to Average
Portfolio
Year Ended
Beginning
Income
Unrealized
 
 
Investment
Net Realized
 
Ending
Total
Assets
Net
Net
Turnover
October 31:
NAV
(Loss)(a)
Gain (Loss)
Total
 
Income
Gains
Total
NAV
Return(b)(c)
(000)
Assets(d)
Assets(d)(e)
Rate(f)
Class A (5/92)
2020
$
7.71
 
$
—
*
$
0.13
 
$
0.13
 
 
$
(0.01
)
$
—
 
$
(0.01
)
$
7.83
 
1.70
%
$
49,513
1.24
%
(0.05
)%
90
%
2019
 
9.26
 
 
—
*
 
0.28
 
 
0.28
 
 
 
—
*
 
(1.83
)
 
(1.83
)
 
7.71
 
6.95
 
 
55,849
1.24
 
0.01
 
70
 
2018
 
10.13
 
 
(0.01
)
 
0.35
 
 
0.34
 
 
 
—
 
 
(1.21
)
 
(1.21
)
 
9.26
 
3.48
 
 
60,930
1.24
 
(0.06
)
95
 
2017
 
9.21
 
 
(0.02
)
 
1.97
 
 
1.95
 
 
 
(0.01
)
 
(1.02
)
 
(1.03
)
 
10.13
 
21.76
 
 
67,405
1.33
 
(0.16
)
66
 
2016
 
11.01
 
 
0.01
 
 
0.30
 
 
0.31
 
 
 
—
 
 
(2.11
)
 
(2.11
)
 
9.21
 
4.05
 
 
67,428
1.44
 
0.10
 
66
 
Class C (9/01)
2020
 
4.19
 
 
(0.03
)
 
0.07
 
 
0.04
 
 
 
—
 
 
—
 
 
—
 
 
4.23
 
0.95
 
 
807
1.99
 
(0.78
)
90
 
2019
 
6.00
 
 
(0.03
)
 
0.05
 
 
0.02
 
 
 
—
 
 
(1.83
)
 
(1.83
)
 
4.19
 
6.09
 
 
1,029
1.99
 
(0.74
)
70
 
2018
 
7.02
 
 
(0.05
)
 
0.24
 
 
0.19
 
 
 
—
 
 
(1.21
)
 
(1.21
)
 
6.00
 
2.78
 
 
1,436
1.99
 
(0.81
)
95
 
2017
 
6.70
 
 
(0.06
)
 
1.40
 
 
1.34
 
 
 
—
 
 
(1.02
)
 
(1.02
)
 
7.02
 
20.75
 
 
4,913
2.09
 
(0.91
)
66
 
2016
 
8.64
 
 
(0.04
)
 
0.21
 
 
0.17
 
 
 
—
 
 
(2.11
)
 
(2.11
)
 
6.70
 
3.37
 
 
5,625
2.19
 
(0.65
)
66
 
Class R3 (1/94)
2020
 
6.74
 
 
(0.02
)
 
0.12
 
 
0.10
 
 
 
—
 
 
—
 
 
—
 
 
6.84
 
1.48
 
 
4,603
1.49
 
(0.32
)
90
 
2019
 
8.37
 
 
(0.02
)
 
0.22
 
 
0.20
 
 
 
—
 
 
(1.83
)
 
(1.83
)
 
6.74
 
6.65
 
 
5,194
1.49
 
(0.24
)
70
 
2018
 
9.28
 
 
(0.03
)
 
0.33
 
 
0.30
 
 
 
—
 
 
(1.21
)
 
(1.21
)
 
8.37
 
3.34
 
 
5,264
1.49
 
(0.31
)
95
 
2017
 
8.53
 
 
(0.04
)
 
1.81
 
 
1.77
 
 
 
—
 
 
(1.02
)
 
(1.02
)
 
9.28
 
21.40
 
 
5,381
1.59
 
(0.41
)
66
 
2016
 
10.38
 
 
(0.01
)
 
0.27
 
 
0.26
 
 
 
—
 
 
(2.11
)
 
(2.11
)
 
8.53
 
3.76
 
 
5,310
1.69
 
(0.12
)
66
 
Class R6 (2/18)
2020
 
10.49
 
 
0.03
 
 
0.20
 
 
0.23
 
 
 
(0.06
)
 
—
 
 
(0.06
)
 
10.66
 
2.15
 
 
1,994
0.86
 
0.32
 
90
 
2019
 
11.87
 
 
0.04
 
 
0.44
 
 
0.48
 
 
 
(0.03
)
 
(1.83
)
 
(1.86
)
 
10.49
 
7.22
 
 
2,070
0.85
 
0.36
 
70
 
2018(g)
 
11.82
 
 
0.02
 
 
0.03
 
 
0.05
 
 
 
—
 
 
—
 
 
—
 
 
11.87
 
0.42
 
 
6,532
0.85
**
0.24
**
95
 
Class I (5/92)
2020
 
10.46
 
 
0.02
 
 
0.19
 
 
0.21
 
 
 
(0.04
)
 
—
 
 
(0.04
)
 
10.63
 
2.00
 
 
31,341
0.99
 
0.19
 
90
 
2019
 
11.85
 
 
0.03
 
 
0.44
 
 
0.47
 
 
 
(0.03
)
 
(1.83
)
 
(1.86
)
 
10.46
 
7.13
 
 
30,109
0.99
 
0.26
 
70
 
2018
 
12.60
 
 
0.03
 
 
0.43
 
 
0.46
 
 
 
—
 
 
(1.21
)
 
(1.21
)
 
11.85
 
3.77
 
 
37,420
0.99
 
0.21
 
95
 
2017
 
11.24
 
 
0.01
 
 
2.40
 
 
2.41
 
 
 
(0.03
)
 
(1.02
)
 
(1.05
)
 
12.60
 
22.03
 
 
49,150
1.08
 
0.09
 
66
 
2016
 
12.93
 
 
0.04
 
 
0.38
 
 
0.42
 
 
 
—
 
 
(2.11
)
 
(2.11
)
 
11.24
 
4.33
 
 
45,574
1.19
 
0.36
 
66
 
                                                     
(a)
Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b)
During the fiscal year ended October 31, 2020, the Fund began receiving voluntary compensation from Nuveen Fund Advisors. The Fund's Total Return for each share class would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded.
(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 Nuveen Fund Advisors, where applicable.
(e)
Ratios reflect voluntary compensation from Nuveen Fund Advisors in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if Nuveen Fund Advisors had purchased the research services directly. Each Ratio of Net Investment Income (Loss) to Average Net Assets includes the effect of the payments from Nuveen Fund Advisors for each share class as follows:
       
 
 
 
 
 
 
 
 
 
 
 
Ratios of Payments from Nuveen Fund Advisors to Average Net Assets
 
 
Year Ended October 31:
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
   
 
2020
 
0.02
%
0.02
%
0.02
%
0.02
%
0.02
%
 
 
2019
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2018
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2017
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2016
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
(f)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period.
(g)
For the period February 28, 2018 (commencement of operations) through October 31, 2018.
*
Rounds to less than $0.01 per share.
**
Annualized.
   
 
 
 
 
 
 
 
 
 
 
N/A
Fund did not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020.
 
 
 
 
 
 
 
   
Section 5
Financial Highlights
81
Nuveen Small Cap Value Fund
                                                                         
Class (Commencement Date)
 
Investment Operations
 
Less Distributions
   
Ratios/Supplemental Data
         
 
             
Ratios of
 
         
 
             
Net
 
         
 
           
Ratios of
Investment
 
   
Net
Net
 
 
From
From
     
Ending
Expenses
Income (Loss)
 
   
Investment
Realized/
 
 
Net
Accumulated
     
Net
to Average
to Average
Portfolio
Year Ended
Beginning
Income
Unrealized
 
 
Investment
Net Realized
 
Ending
Total
Assets
Net
Net
Turnover
October 31:
NAV
(Loss)(a)
Gain (Loss)
Total
 
Income
Gains
Total
NAV
Return(b)(c)
(000)
Assets(d)
Assets(d)(e)
Rate(f)
Class A (8/94)
2020
$
22.19
 
$
0.09
 
$
(4.77
)
$
(4.68
)
 
$
(0.21
)
$
—
 
$
(0.21
)
$
17.30
 
(21.33
)%
$
105,402
1.20
%
0.48
%
30
%
2019
 
22.96
 
 
0.18
 
 
(0.17
)
 
0.01
 
 
 
(0.13
)
 
(0.65
)
 
(0.78
)
 
22.19
 
0.44
 
 
213,819
1.20
 
0.81
 
31
 
2018
 
25.19
 
 
0.12
 
 
(2.15
)
 
(2.03
)
 
 
(0.10
)
 
(0.10
)
 
(0.20
)
 
22.96
 
(8.12
)
 
291,122
1.20
 
0.47
 
35
 
2017
 
20.98
 
 
0.11
 
 
4.70
 
 
4.81
 
 
 
(0.09
)
 
(0.51
)
 
(0.60
)
 
25.19
 
23.06
 
 
326,495
1.22
 
0.46
 
29
 
2016
 
19.95
 
 
0.14
 
 
1.20
 
 
1.34
 
 
 
(0.01
)
 
(0.30
)
 
(0.31
)
 
20.98
 
6.85
 
 
167,840
1.30
 
0.68
 
40
 
Class C (2/99)
2020
 
18.62
 
 
(0.04
)
 
(4.03
)
 
(4.07
)
 
 
(0.04
)
 
—
 
 
(0.04
)
 
14.51
 
(21.93
)
 
22,263
1.95
 
(0.28
)
30
 
2019
 
19.39
 
 
0.01
 
 
(0.13
)
 
(0.12
)
 
 
—
 
 
(0.65
)
 
(0.65
)
 
18.62
 
(0.28
)
 
45,920
1.95
 
0.07
 
31
 
2018
 
21.36
 
 
(0.06
)
 
(1.81
)
 
(1.87
)
 
 
—
 
 
(0.10
)
 
(0.10
)
 
19.39
 
(8.80
)
 
70,077
1.95
 
(0.28
)
35
 
2017
 
17.92
 
 
(0.06
)
 
4.01
 
 
3.95
 
 
 
—
 
 
(0.51
)
 
(0.51
)
 
21.36
 
22.14
 
 
71,902
1.97
 
(0.29
)
29
 
2016
 
17.20
 
 
(0.01
)
 
1.03
 
 
1.02
 
 
 
—
 
 
(0.30
)
 
(0.30
)
 
17.92
 
6.08
 
 
26,815
2.05
 
(0.08
)
40
 
Class R3 (9/01)
2020
 
21.68
 
 
0.03
 
 
(4.66
)
 
(4.63
)
 
 
(0.15
)
 
—
 
 
(0.15
)
 
16.90
 
(21.53
)
 
16,416
1.45
 
0.19
 
30
 
2019
 
22.43
 
 
0.12
 
 
(0.15
)
 
(0.03
)
 
 
(0.07
)
 
(0.65
)
 
(0.72
)
 
21.68
 
0.21
 
 
37,296
1.45
 
0.56
 
31
 
2018
 
24.61
 
 
0.05
 
 
(2.09
)
 
(2.04
)
 
 
(0.04
)
 
(0.10
)
 
(0.14
)
 
22.43
 
(8.34
)
 
47,205
1.45
 
0.21
 
35
 
2017
 
20.51
 
 
0.05
 
 
4.60
 
 
4.65
 
 
 
(0.04
)
 
(0.51
)
 
(0.55
)
 
24.61
 
22.79
 
 
42,975
1.47
 
0.22
 
29
 
2016
 
19.56
 
 
0.09
 
 
1.16
 
 
1.25
 
 
 
—
 
 
(0.30
)
 
(0.30
)
 
20.51
 
6.58
 
 
26,510
1.56
 
0.46
 
40
 
Class R6 (6/16)
2020
 
23.09
 
 
0.15
 
 
(4.93
)
 
(4.78
)
 
 
(0.29
)
 
—
 
 
(0.29
)
 
18.02
 
(21.01
)
 
85,491
0.76
 
0.81
 
30
 
2019
 
23.83
 
 
0.29
 
 
(0.18
)
 
0.11
 
 
 
(0.20
)
 
(0.65
)
 
(0.85
)
 
23.09
 
0.90
 
 
133,071
0.75
 
1.26
 
31
 
2018
 
26.09
 
 
0.23
 
 
(2.22
)
 
(1.99
)
 
 
(0.17
)
 
(0.10
)
 
(0.27
)
 
23.83
 
(7.73
)
 
121,943
0.78
 
0.86
 
35
 
2017
 
21.71
 
 
0.21
 
 
4.84
 
 
5.05
 
 
 
(0.16
)
 
(0.51
)
 
(0.67
)
 
26.09
 
23.40
 
 
52,508
0.81
 
0.86
 
29
 
2016(g)
 
21.08
 
 
0.07
 
 
0.56
 
 
0.63
 
 
 
—
 
 
—
*
 
—
*
 
21.71
 
3.00
 
 
19,967
0.83
**
0.91
**
40
 
Class I (8/94)
2020
 
23.00
 
 
0.16
 
 
(4.96
)
 
(4.80
)
 
 
(0.27
)
 
—
 
 
(0.27
)
 
17.93
 
(21.14
)
 
457,676
0.95
 
0.81
 
30
 
2019
 
23.79
 
 
0.24
 
 
(0.18
)
 
0.06
 
 
 
(0.20
)
 
(0.65
)
 
(0.85
)
 
23.00
 
0.69
 
 
1,228,912
0.95
 
1.06
 
31
 
2018
 
26.09
 
 
0.19
 
 
(2.22
)
 
(2.03
)
 
 
(0.17
)
 
(0.10
)
 
(0.27
)
 
23.79
 
(7.88
)
 
1,812,444
0.95
 
0.71
 
35
 
2017
 
21.70
 
 
0.17
 
 
4.88
 
 
5.05
 
 
 
(0.15
)
 
(0.51
)
 
(0.66
)
 
26.09
 
23.40
 
 
1,444,587
0.97
 
0.70
 
29
 
2016
 
20.63
 
 
0.19
 
 
1.24
 
 
1.43
 
 
 
(0.06
)
 
(0.30
)
 
(0.36
)
 
21.70
 
7.09
 
 
369,016
1.05
 
0.93
 
40
 
                                                     
(a)
Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b)
During the fiscal year ended October 31, 2020, the Fund began receiving voluntary compensation from Nuveen Fund Advisors. The Fund's Total Return for each share class would decrease by an amount equaling less than 0.01% if such voluntary compensation were excluded.
(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 Nuveen Fund Advisors, where applicable.
(e)
Ratios reflect voluntary compensation from Nuveen Fund Advisors in amounts that approximate a portion of the cost of research services obtained from broker-dealers and research providers if Nuveen Fund Advisors had purchased the research services directly. Each Ratio of Net Investment Income (Loss) to Average Net Assets includes the effect of the payments from Nuveen Fund Advisors for each share class as follows:
       
 
 
 
 
 
 
 
 
 
 
 
Ratios of Payments from Nuveen Fund Advisors to Average Net Assets
 
 
Year Ended October 31:
Class A
 
Class C
 
Class R3
 
Class R6
 
Class I
   
 
2020
 
0.02
%
0.02
%
0.02
%
0.02
%
0.02
%
 
 
2019
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2018
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2017
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
 
2016
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
 
(f)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales divided by the average long-term market value during the period.
(g)
For the period June 30, 2016 (commencement of operations) through October 31, 2016.
*
Rounds to less than $0.01 per share.
**
Annualized.
   
 
 
 
 
 
 
 
 
 
 
N/A
Fund did not have Payments from Affiliates for periods prior to the fiscal year ended October 31, 2020.
 
 
 
 
 
 
 
   
82
Section 5
Financial Highlights
Appendix to the Prospectus
VARIATIONS IN SALES CHARGE REDUCTIONS AND WAIVERS

AVAILABLE THROUGH CERTAIN INTERMEDIARIES
A-1
The availability of certain sales charge variations, waivers and discounts will depend on whether you purchase your shares directly from a Fund or through a financial intermediary. Financial intermediaries may impose different sales charges and have unique policies and procedures regarding the availability of sales charge waivers and/or discounts (including based on account type), which differ from those described in the prospectus and are disclosed below. All sales charges and sales charge variations, waivers and discounts available to investors, other than those set forth below, are described in the prospectus. To the extent a financial intermediary notifies Nuveen Fund Advisors, LLC (the
“Adviser”
) or Nuveen Securities, LLC (the
“Distributor”
) of its intention to impose sales charges or have sales charge waivers and/or discounts that differ from those described in the prospectus, such information provided by that intermediary will be disclosed in this Appendix.
In all instances, it is your responsibility to notify your financial intermediary at the time of purchase of any relationship or other facts qualifying you for sales charge waivers or discounts. Please contact your financial intermediary with questions regarding your eligibility for applicable sales charge variations, waivers and discounts or for additional information regarding your intermediary’s policies for implementing particular sales charge variations, waivers and discounts. For waivers and discounts not available through a particular financial intermediary, shareholders will have to purchase shares directly from a Fund or through another intermediary to receive these waivers or discounts.
The information provided below for a particular financial intermediary is reproduced based on information provided by that intermediary. A financial intermediary’s administration and implementation of its particular policies with respect to any variations, waivers and/or discounts is neither supervised nor verified by the Funds, the Adviser or the Distributor.
CLASS A SHARE FRONT-END SALES CHARGE WAIVERS AVAILABLE AT AMERIPRISE FINANCIAL
The following information applies to Class A share purchases if you have an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders purchasing Fund shares through an Ameriprise Financial platform or account will be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
·
 
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.
·
 
Shares purchased through an Ameriprise Financial investment advisory program (if Class I or a similar share class for such investment advisory program is not available).
·
 
Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if Class I or a similar share class for such investment advisory program is not available).
·
 
Shares purchased through reinvestment of capital gain distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other Nuveen-sponsored mutual fund).
·
 
Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date.
·
 
Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.
·
 
Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) tax sheltered custodial accounts subject to ERISA, and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor
A-2
and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, daughter, step son, step daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant.
·
 
Shares purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., Rights of Reinstatement).
Effective January 15, 2021, the following two sales charge waivers noted above will be eliminated:
·
 
Shares purchased through an Ameriprise Financial investment advisory program; and
·
 
Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial's platform.
In addition, effective January 15, 2021, the following sales charge waiver from above will be changed to reflect a shorter holding period for the conversion of Class C shares of a Fund as set forth below:
·
 
Shares exchanged from Class C shares of the same fund in the month of or following the seven-year anniversary of the purchase date. To the extent that this prospectus otherwise provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this prospectus otherwise provides for a waiver with respect to exchanges of Class C shares for load waived shares, that waiver will also apply to such exchanges.
SALES WAIVERS AND REDUCTIONS IN SALES CHARGES AVAILABLE AT
ROBERT W. BAIRD & CO. (“
BAIRD”
)
Shareholders purchasing fund shares through a Baird platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.
Front-End Sales Charge Waivers on Class A Shares Available at Baird
·
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing share of the same fund
·
 
Share purchase by employees and registers representatives of Baird or its affiliate and their family members as designated by Baird
·
 
Shares purchase from the proceeds of redemptions from another Nuveen-sponsored mutual fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same accounts, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement)
·
 
A shareholder in Class C Shares will have their share converted at net asset value to Class A shares of the fund if the shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird
·
 
Employer-sponsored retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs
CDSC Waivers on Class A and C Shares Available at Baird
·
 
Shares sold due to death or disability of the shareholder
·
 
Shares sold as part of a systematic withdrawal plan as described in this prospectus
A-3
·
 
Shares bought due to returns of excess contributions from an IRA account
·
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations.
·
 
Shares sold to pay Baird fees but only if the transaction is initiated by Baird
·
 
Shares acquired through a right of reinstatement
Front-End Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of Accumulation
·
 
Breakpoints as described in this prospectus
·
 
Rights of accumulation, which entitles shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of all Nuveen-sponsored mutual fund assets held by accounts within the purchaser’s household at Baird. Eligible Nuveen-sponsored mutual fund assets not held at Baird may be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets
·
 
Letters of intent, which allow for breakpoint discounts based on anticipated purchases of Nuveen-sponsored mutual funds through Baird over a 13-month period of time
EDWARD D. JONES & CO., L.P. (
“EDWARD JONES”
)
Policies Regarding Transactions Through Edward Jones
Effective on or after February 26, 2021, the following information supersedes prior information with respect to transactions and positions held in fund shares through an Edward Jones system. Clients of Edward Jones (also referred to as "shareholders") purchasing fund shares on the Edward Jones commission and fee-based platforms are eligible only for the following sales charge discounts (also referred to as "breakpoints") and waivers, which can differ from discounts and waivers described elsewhere in the mutual fund prospectus or statement of additional information (
“SAI”
) or through another broker-dealer. In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase of any relationship, holdings of Nuveen-sponsored mutual funds, or other facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
Breakpoints
·
 
Breakpoint pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.
Rights of Accumulation (“ROA”)
·
 
The applicable sales charge on a purchase of Class A shares is determined by taking into account all Nuveen-sponsored mutual fund assets held by the shareholder (except certain money market funds and any assets held in group retirement plans) or in an account grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations ("pricing groups"). If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform. The inclusion of eligible Nuveen-sponsored mutual fund assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase or acquired in exchange for shares purchased with a sales charge.
·
 
The employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.
A-4
·
 
ROA is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).
Letter of Intent (“LOI”)
·
 
Through an LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible Nuveen-sponsored mutual fund assets in the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges will be adjusted if the LOI is not met.
·
 
If the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.
Sales Charge Waivers
Sales charges are waived for the following shareholders and in the following situations:
·
 
Associates of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones’ policies and procedures.
·
 
Shares purchased in an Edward Jones fee-based program.
·
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment.
·
 
Shares purchased from the proceeds of redeemed shares of a Nuveen-sponsored mutual fund so long as the following conditions are met: 1) the proceeds are from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account (known as Rights of Reinstatement).
·
 
Shares exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable sales charge as disclosed in the prospectus.
·
 
Exchanges from Class C shares to Class A shares of the same fund, generally, in the 84
th
month following the anniversary of the purchase date or earlier at the discretion of Edward Jones.
Contingent Deferred Sales Charge (
“CDSC”
) Waivers
If the shareholder purchases shares that are subject to a CDSC and those shares are redeemed before the CDSC is expired, the shareholder is responsible to pay the CDSC except in the following conditions:
·
 
The death or disability of the shareholder.
·
 
Systematic withdrawals with up to 10% per year of the account value.
·
 
Return of excess contributions from an Individual Retirement Account (IRA).
A-5
·
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches
qualified age based on applicable IRS regulations.
·
 
Shares sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.
·
 
Shares exchanged in an Edward Jones fee-based program.
·
 
Shares acquired through a Right of Reinstatement.
·
 
Shares redeemed at the discretion of Edward Jones for Minimum Balances, as described below.
Other Important Information Regarding Transactions Through Edward Jones
Minimum Purchase Amounts
·
 
The following initial and subsequent investment minimums apply to any class of Nuveen-sponsored mutual fund shares purchased on Edward Jones commission and fee-based platforms:
o
 
Initial purchase minimum: $250
o
 
Subsequent purchase minimum: none
Minimum Balances
·
 
Edward Jones may redeem at its discretion fund holdings with a balance of $250 or less. The following types of accounts are not included in this policy:
o
 
A fee-based account held on an Edward Jones platform
o
 
A 529 account held on an Edward Jones platform
o
 
An account with an active systematic investment plan or LOI
Exchanging Share Classes
·
 
Edward Jones at its discretion may exchange at NAV a shareholder's holdings of a Nuveen-sponsored mutual fund to Class A shares of the same fund.
CLASS A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH JANNEY MONTGOMERY SCOTT LLC
Shareholders purchasing fund shares through a Janney Montgomery Scott LLC (“
Janney
”) brokerage account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“
CDSC
”) waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
Front-end sales charge waivers on Class A shares available at Janney
·
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other Nuveen-sponsored mutual fund).
·
 
Shares purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.
·
 
Shares purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund, provided (1) the repurchase occurs within ninety (90) days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., right of reinstatement).
·
 
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
A-6
·
 
Class C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Janney’s policies and procedures.
CDSC waivers on Class A and C shares available at Janney
·
 
Shares sold upon the death or disability of the shareholder.
·
 
Shares sold as part of a systematic withdrawal plan as described in the fund’s Prospectus.
·
 
Shares purchased in connection with a return of excess contributions from an IRA account.
·
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches the qualified age based on applicable IRS regulations.
·
 
Shares sold to pay Janney fees but only if the transaction is initiated by Janney.
·
 
Shares acquired through a right of reinstatement.
Front-end sales charge discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
·
 
Breakpoints as described in the fund’s Prospectus.
·
 
Rights of accumulation (“
ROA
”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of all Nuveen-sponsored mutual fund assets held by accounts within the purchaser’s household at Janney. Eligible Nuveen-sponsored mutual fund assets not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
·
 
Letters of intent which allow for breakpoint discounts based on anticipated purchases of Nuveen-sponsored mutual funds, over a 13-month time period. Eligible Nuveen-sponsored mutual fund assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets.
CLASS A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH MERRILL LYNCH
Shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred sales charge waivers) and discounts, which may differ from those disclosed in the Funds’ prospectus or SAI. Shareholders should contact Merrill Lynch to determine their eligibility for these waivers and discounts.
Front-End Sales Load Waivers on Class A Shares Available at Merrill Lynch
·
 
Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan
·
 
Shares purchased by a 529 Plan (does not include 529 Plan units or 529-specific shares classes or equivalents)
·
 
Shares purchased through a Merrill Lynch affiliated investment advisory program
·
 
Shares exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers
·
 
Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform
·
 
Shares of funds purchased through the Merrill Edge Self-Directed platform
A-7
·
 
Shares purchased through reinvestment of capital gain distributions and dividend reinvestment when purchasing shares of the same fund (but not any other Nuveen-sponsored mutual fund)
·
 
Shares exchanged from Class C shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers
·
 
Employees and registered representatives of Merrill Lynch or its affiliates and their family members
·
 
Directors or Trustees of the Funds, and employees of the Funds’ investment adviser or any of its affiliates, as described in the prospectus
·
 
Eligible shares purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals) and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement
CDSC Waivers on A and C Shares Available at Merrill Lynch
·
 
Death or disability of the shareholder
·
 
Shares sold as part of a systematic withdrawal plan as described in the prospectus
·
 
Return of excess contributions from an IRA Account
·
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code
·
 
Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch
·
 
Shares acquired through a Right of Reinstatement
·
 
Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to a fee based account or platform
·
 
Shares received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers
Front-End Load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
·
 
Breakpoints as described in the prospectus
·
 
Rights of Accumulation (“
ROA
”) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically calculated based on the aggregated holding of all Nuveen-sponsored mutual fund assets held by accounts (including 529 program holdings, where applicable) within the purchaser’s household at Merrill Lynch. Eligible Nuveen-sponsored mutual fund assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets
·
 
Letters of Intent (
“LOI”
) which allow for breakpoint discounts using the same criteria as ROA above, but based on anticipated purchases of any Nuveen-sponsored mutual fund over a 13-month period of time
CLASS A SHARE FRONT-END SALES CHARGE WAIVERS AVAILABLE AT MORGAN STANLEY WEALTH MANAGEMENT
Shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following front-end sales charge waivers with respect to
A-8
Class A shares, which may differ from and may be more limited than those disclosed elsewhere in this Fund’s prospectus or SAI. Shareholders should contact Morgan Stanley Wealth Management to determine their eligibility for these waivers and discounts.
·
 
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
·
 
Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules
·
 
Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund
·
 
Shares purchased through a Morgan Stanley self-directed brokerage account
·
 
Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program
·
 
Shares purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge.
CLASS A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH OPPENHEIMER & CO. INC.
Shareholders purchasing fund shares through an Oppenheimer & Co. Inc. (“
OPCO
”) platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or SAI.
Front-End Sales Load Waivers on Class A Shares available at OPCO
·
 
Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan
·
 
Shares purchased by or through a 529 Plan
·
 
Shares purchased through a OPCO affiliated investment advisory program
·
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other Nuveen-sponsored mutual fund)
·
 
Shares purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Restatement)
·
 
A shareholder in Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
·
 
Employees and registered representatives of OPCO or its affiliates and their family members
·
 
Directors or Trustees of the Funds, and employees of the Funds’ investment adviser or any of its affiliates, as described in this prospectus
A-9
CDSC Waivers on A and C Shares available at OPCO
·
 
Death or disability of the shareholder
·
 
Shares sold as part of a systematic withdrawal plan as described in the prospectus
·
 
Return of excess contributions from an IRA Account
·
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus
·
 
Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO
·
 
Shares acquired through a Right of Reinstatement
Front-End Load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
·
 
Breakpoints as described in the prospectus.
·
 
Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of all Nuveen-sponsored mutual fund assets held by accounts within the purchaser’s household at OPCO. Eligible Nuveen-sponsored mutual fund assets not held at OPCO may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.
CLASS A AND CLASS C SHARE SALES CHARGE REDUCTIONS AND WAIVERS AVAILABLE THROUGH RAYMOND JAMES & ASSOCIATES, INC., RAYMOND JAMES FINANCIAL SERVICES, INC. AND EACH ENTITY’S AFFILIATES (“
RAYMOND JAMES
”)
Shareholders purchasing Fund shares through a Raymond James platform or account, or through an introducing broker-dealer or independent registered investment adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred sales charge waivers) and discounts, which may differ from those disclosed elsewhere in your Fund’s prospectus or SAI.
Front-End Sales Load Waivers on Class A Shares Available at Raymond James
·
 
Shares purchased through a Raymond James investment advisory program.
·
 
Shares purchased of a Nuveen-sponsored mutual fund through a systematic reinvestment of capital gains and dividend distributions.
·
 
Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.
·
 
Shares purchased from the proceeds of redemptions of a Nuveen-sponsored mutual fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement).
·
 
A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James.
CDSC Waivers on Class A and C Shares Available at Raymond James
·
 
Death or disability of the shareholder.
·
 
Shares sold as part of a systematic withdrawal plan as described in the prospectus.
·
 
Return of excess contributions from an IRA Account.
A-10
·
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus.
·
 
Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.
·
 
Shares acquired through a Right of Reinstatement.
Front-End Load Discounts Available at Raymond James: Breakpoints, Rights of Accumulation, and/or Letters of Intent
·
 
Breakpoints as described in the prospectus.
·
 
Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of all Nuveen-sponsored mutual fund assets held by accounts within the purchaser’s household at Raymond James. Eligible Nuveen-sponsored mutual fund assets not held at Raymond James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about such assets.
·
 
Letters of intent which allow for breakpoint discounts based on anticipated purchases of Nuveen-sponsored mutual funds, over a 13-month time period. Eligible Nuveen-sponsored mutual fund assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets.
CLASS C TO CLASS A CONVERSIONS AVAILABLE AT U.S. BANCORP INVESTMENTS, INC.
Effective February 26, 2021, shareholders who hold a Fund’s Class C shares through a U.S. Bancorp Investments, Inc. (“
USBI”
) platform or account or who own shares for which USBI or an affiliate is the broker-dealer of record and the shares are held in an omnibus account, will have their shares automatically converted at net asset value to Class A shares of the same Fund in the month of the six-year anniversary of the purchase date, if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of USBI.
CLASS A SALES CHARGE WAIVERS AVAILABLE ONLY THROUGH SPECIFIED INTERMEDIARIES
As described in the prospectus, Class A shares may be purchased at net asset without a sales charge by employer-sponsored retirement plans (“
ESRPs
”) as defined in the prospectus, except that, in the case of ESRPs held through a brokerage account, Class A shares will be available at net asset value without a sales charge only if the broker-dealer has entered into an agreement with the Distributor that allows for such purchases.
The following intermediaries have entered into such an agreement:
Baker & Co., Inc.
Cetera Advisor Networks LLC
Cetera Advisors LLC
Cetera Financial Specialists LLC
Cetera Investment Services LLC
Country Club Financial Services, Inc.
Cutter & Co. Brokerage Inc.
Davenport & Co. LLC
Devenir Investment Advisors, LLC
Fintrust Brokerage Services
First Kentucky Securities Corp.
First Western Securities
A-11
Gold Coast Securities, Inc.
Hewitt Financial Services LLC
Hilltop Securities Inc.
Infinex Investments, Inc.
J.P. Morgan Securities LLC
KMS Financial Services, Inc.
Mid-Atlantic Capital Corp.
OFG Financial Services, Inc.
Principal Securities Inc.
RDM Investment Services, Inc.
Register Financial Associates, Inc.
Shareholders Service Group Inc.
Southeast Investments, NC, Inc.
Stifel, Nicolaus & Co., Inc.
Waddell & Reed Inc.
As described in the prospectus, Class A shares may be purchased at net asset value without a sales charge through a financial intermediary that has entered into an agreement with the Distributor to offer the Funds’ shares to self-directed investment brokerage accounts and that may or may not charge a transaction fee to its customers.
The following intermediaries have entered into such an agreement:
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Inc.
TD Ameritrade, Inc.
TD Ameritrade Clearing, Inc.
A-12
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Nuveen Mutual Funds
Nuveen offers a variety of mutual funds designed to help you reach your financial goals. The funds below are grouped by category.
Municipal-National
All-American Municipal Bond
High Yield Municipal Bond
Intermediate Duration Municipal Bond
Limited Term Municipal Bond
Short Duration High Yield Municipal Bond
Short Term Municipal Bond
Strategic Municipal Opportunities
Municipal-State
Arizona Municipal Bond
California High Yield Municipal Bond
California Municipal Bond
Colorado Municipal Bond
Connecticut Municipal Bond
Georgia Municipal Bond
Kansas Municipal Bond
Kentucky Municipal Bond
Louisiana Municipal Bond
Maryland Municipal Bond
Massachusetts Municipal Bond
Municipal-State (continued)
Michigan Municipal Bond
Minnesota Intermediate Municipal Bond
Minnesota Municipal Bond
Missouri Municipal Bond
Nebraska Municipal Bond
New Jersey Municipal Bond
New Mexico Municipal Bond
New York Municipal Bond
North Carolina Municipal Bond
Ohio Municipal Bond
Oregon Intermediate Municipal Bond
Pennsylvania Municipal Bond
Virginia Municipal Bond
Wisconsin Municipal Bond
Taxable Fixed Income
Credit Income
NWQ Flexible Income
Preferred Securities and Income
Strategic Income
Floating Rate Income
High Yield Income
Global/International
Emerging Markets Equity
International Growth
NWQ Global Equity Income
NWQ International Value
Santa Barbara Global Dividend Growth
Santa Barbara International Dividend Growth
Winslow International Small Cap
Value
Dividend Value
Mid Cap Value
NWQ Large-Cap Value
NWQ Multi-Cap Value
NWQ Small-Cap Value
NWQ Small/Mid-Cap Value
Small Cap Value
Growth
Mid Cap Growth Opportunities
Small Cap Growth Opportunities
Winslow Large-Cap Growth ESG
Core
Large Cap Core
Large Cap Select
Santa Barbara Dividend Growth
Small Cap Select
Real Assets
Global Infrastructure
Global Real Estate Securities
Real Asset Income
Real Estate Securities
Alternative Strategies
Equity Long/Short
Equity Market Neutral
Other Information for Fund Shareholders
Several additional sources of information are available to you, including the codes of ethics adopted by the Funds, Nuveen, LLC, Nuveen Fund Advisors and Nuveen Asset Management. The appendix to this prospectus, “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries,” contains information on sales charge reductions and waivers available through certain financial intermediaries that differ from the sales charge reductions and waivers disclosed in this prospectus and the related statement of additional information. The statement of additional information, incorporated by reference into this prospectus, contains detailed information on the policies and operation of the Funds included in this prospectus. Additional information about the Funds' investments is available in the annual and semi-annual reports to shareholders. In the Funds' annual reports, you will find a discussion of the market conditions and investment strategies that significantly affected the Funds' performance during their last fiscal year.
The Funds' most recent statement of additional information, annual and semi-annual reports and certain other information are available, free of charge, by calling Nuveen Funds at (800) 257-8787, on the Funds' website at www.nuveen.com, or through your financial advisor. Shareholders may call the toll free number above with any inquiries.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (
“SEC”
). Reports and other information about the Funds are available on the EDGAR Database on the SEC’s website at http://www.sec.gov. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov. The SEC may charge a copying fee for this information.
Household Mailings
To lower costs and eliminate duplicate documents sent to your home, your Fund may mail only one copy of its summary prospectus, prospectus supplements, annual and semi-annual reports, or any other required documents to your household, even if more than one shareholder lives there. If you would prefer to continue receiving your own copy of any of these documents, you may call your Fund toll-free at (800) 257-8787.
The Funds are series of Nuveen Investment Funds, Inc., whose Investment Company Act file number is 811-05309.
Distributed by
Nuveen Securities, LLC
333 West Wacker Drive
Chicago, Illinois 60606
(800) 257-8787
www.nuveen.com
 
MPR-FSTK-0221D
   
   
   
 
February 26, 2021
   
       
Nuveen Dividend Value Fund
 
 
Ticker Symbols: Class A—FFEIX, Class C—FFECX, Class R3—FEISX, Class R6—FFEFX, Class I—FAQIX
 
     
Nuveen Large Cap Select Fund
 
 
Ticker Symbols: Class A—FLRAX, Class C—FLYCX, Class I—FLRYX
 
     
Nuveen Mid Cap Growth Opportunities Fund
 
 
Ticker Symbols: Class A—FRSLX, Class C—FMECX, Class R3—FMEYX, Class R6—FMEFX, Class I—FISGX
 
     
Nuveen Mid Cap Value Fund
 
 
Ticker Symbols: Class A—FASEX, Class C—FACSX, Class R3—FMVSX, Class R6—FMVQX, Class I—FSEIX
 
     
Nuveen Small Cap Growth Opportunities Fund
 
 
Ticker Symbols: Class A—FRMPX, Class C—FMPCX, Class R3—FMPYX, Class R6—FMPFX, Class I—FIMPX
 
     
Nuveen Small Cap Select Fund
 
 
Ticker Symbols: Class A—EMGRX, Class C—FHMCX, Class R3—ASEIX, Class R6—ASEFX, Class I—ARSTX
 
     
Nuveen Small Cap Value Fund
 
 
Ticker Symbols: Class A—FSCAX, Class C—FSCVX, Class R3—FSVSX, Class R6—FSCWX, Class I—FSCCX
 
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information (
“SAI”
) is not a prospectus. This SAI relates to, and should be read in conjunction with, the Prospectus dated February 26, 2021 for Nuveen Dividend Value Fund, Nuveen Large Cap Select Fund, Nuveen Mid Cap Growth Opportunities Fund, Nuveen Mid Cap Value Fund, Nuveen Small Cap Growth Opportunities Fund, Nuveen Small Cap Select Fund and Nuveen Small Cap Value Fund (each, a “
Fund
,” and collectively, the “
Funds
”), each a series of Nuveen Investment Funds, Inc. A Prospectus may be obtained without charge from certain securities representatives, banks and other financial institutions that have entered into sales agreements with Nuveen Securities, LLC (the “
Distributor
”), or from a Fund, by written request to the applicable Fund, c/o Nuveen Funds, P.O. Box 219140, Kansas City, Missouri 64121-9140, or by calling (800) 257-8787.
The audited financial statements for each Fund’s most recent fiscal year appear in the Fund’s Annual Report dated October 31, 2020, which is incorporated herein by reference and is available without charge by calling (800) 257-8787.
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Appendix B – ISS United States Proxy Voting Guidelines
B-
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GENERAL INFORMATION
Nuveen Investment Funds, Inc. (“
NIF
”) was incorporated in the State of Maryland on August 20, 1987 under the name “SECURAL Mutual Funds, Inc.” The Board of Directors and shareholders, at meetings held January 10, 1991, and April 2, 1991, respectively, approved amendments to the Articles of Incorporation providing that the name “SECURAL Mutual Funds, Inc.” be changed to “First American Investment Funds, Inc.” At a meeting held February 27, 2011, the Board of Directors approved the name “First American Investment Funds, Inc.” be changed to “Nuveen Investment Funds, Inc.”
NIF is organized as a series fund and currently issues its shares in 17 series. Each series of shares represents a separate investment portfolio with its own investment objective(s) and policies (in essence, a separate mutual fund).
The Funds are diversified open-end management investment companies. Prior to February 29, 2012, Nuveen Dividend Value Fund was named Nuveen Equity Income Fund. The Funds’ investment adviser is Nuveen Fund Advisors, LLC (“
Nuveen Fund Advisors
” or the “
Adviser
”). The Funds’ sub-adviser is Nuveen Asset Management, LLC (“
Nuveen Asset Management”
or the “
Sub-Adviser
”).
Nuveen Fund Advisors and its affiliate, Teachers Advisors, LLC (“
TAL
”), are both wholly owned subsidiaries of Nuveen, LLC, the investment management arm of Teachers Insurance and Annuity Association of America (“
TIAA
”). As a result of their common ownership by Nuveen, LLC and, ultimately, TIAA, Nuveen Fund Advisors and TAL are considered affiliated persons under common control, and the registered investment companies managed by each are considered to be part of the same group of investment companies.
Shareholders may purchase shares of each Fund through separate classes, Class A, Class C, Class R3 (except for Nuveen Large Cap Select Fund), Class R6 (except for Nuveen Large Cap Select Fund) and Class I shares. The different share classes provide for variations in distribution costs, shareholder servicing fees, voting rights and dividends. To the extent permitted by the Investment Company Act of 1940, as amended (the “
1940 Act”
), the Funds may also provide for variations in other costs among the classes. In addition, a sales load is imposed on the sale of Class A and Class C shares of the Funds. Except for the foregoing differences among the classes pertaining to costs and fees, each share of each Fund represents an equal proportionate interest in that Fund.
The Articles of Incorporation and Bylaws of NIF provide that meetings of shareholders be held as determined by the Board of Directors and as required by the 1940 Act. Maryland corporation law requires a meeting of shareholders to be held upon the written request of shareholders holding 10% or more of the voting shares of NIF, with the cost of preparing and mailing the notice of such meeting payable by the requesting shareholders. The 1940 Act requires a shareholder vote for, among other things, all amendments to fundamental investment policies and restrictions, for approval of investment advisory contracts and amendments thereto, and for amendments to Rule 12b-1 distribution plans.
INVESTMENT
RESTRICTIONS
In addition to the investment objectives and policies set forth in the Prospectus and under “Investment Policies and Techniques” below, each Fund is subject to the investment restrictions set forth below. The investment restrictions set forth in numbers (1) through (7) below are fundamental and cannot be changed with respect to a Fund without approval by the holders of a majority of the outstanding shares of that Fund as defined in the 1940 Act, i.e., by the lesser of the vote of (a) 67% of the shares of the Fund present at a meeting where more than 50% of the outstanding shares are present in person or by proxy, or (b) more than 50% of the outstanding shares of the
Fund.
None of the Funds will:
(1)
 
Concentrate its investments in a particular industry. For purposes of this limitation, the U.S. government is not considered a member of any industry. Whether the Fund is concentrating in an industry shall be determined in accordance with the 1940 Act, as interpreted or modified from time to time by any regulatory authority having
jurisdiction.
(2)
 
Borrow
money
or
issue
senior
securities,
except
as
permitted
under
the
1940
Act,
as interpreted
or
modified
from
time
to
time
by
any
regulatory
authority
having
jurisdiction.
(3)
 
With respect to 75% of its total assets, purchase securities of an issuer (other
than (i) securities issued by other investment companies, (ii) securities issued by the U.S. government, its agencies, instrumentalities or authorities, or (iii) repurchase agreements fully collateralized by
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U.S.
government
securities)
if
(a)
such
purchase
would,
at
the
time,
cause
more
than
5%
of
the Fund’s
total
assets
taken
at
market
value
to
be
invested
in
the
securities
of
such
issuer;
or
(b)
such purchase
would,
at
the
time,
result
in
more
than
10%
of
the
outstanding
voting
securities
of
such issuer
being
held
by
the
Fund.
(4)
 
Purchase or sell physical commodities, unless acquired as a result of ownership of securities
or
other
instruments;
but
this
restriction
shall
not
prohibit
a
Fund
from
investing
in options
on
commodity
indices,
commodity
futures
contracts
and
options
thereon,
commodity-related swap agreements, other commodity-related derivative instruments, and investment companies
that
provide
exposure
to
commodities.
(5)
 
Purchase or sell real estate unless as a result of ownership of securities or other instruments, but this shall not prevent the Funds from investing in securities or other instruments backed by real estate or interests therein or in securities of companies that deal in real estate or mortgages.
(6)
 
Act as an underwriter of securities of other issuers, except to the extent that, in connection with the disposition of portfolio securities, it may be deemed an underwriter under applicable
laws.
(7)
 
Make loans, except as permitted under the 1940 Act, as interpreted or modified from time to
time
by
any
regulatory
authority
having
jurisdiction.
Except with respect to the limitation set forth in number (2) above, the foregoing restrictions and limitations will apply only at the time of purchase of securities, and the percentage limitations will not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of an acquisition of securities, unless otherwise indicated.
For
purposes
of
applying
the
limitation
set
forth
in
number
(1)
above, according
to the
current interpretation
by the
Securities
and
Exchange Commission (“
SEC
”
),
a
Fund would
be
concentrated
in an
industry
if 25% or
more
of its net
assets, based
on
current market value
at the
time
of
purchase, were invested
in
that industry.
For
purposes
of
this limitation, issuers
of the
following securities will
not be
considered
to be
members
of any
industry: securities
of the
U.S. government
and its
agencies
or
instrumentalities; except
as set
forth
in the
following sentence, tax-exempt securities
of
state, territory, possession
or
municipal governments
and
their authorities, agencies, instrumentalities
or
political subdivisions;
and
repurchase agreements collateralized
by any
such obligations.
To the
extent that the income from
a
municipal bond
is
derived principally from
the
assets
and
revenues
of
non-governmental users,
the
securities will
be
deemed
to be
from
the
industry
of
that non-governmental user.
To
the extent
a
Fund invests
in
other investment companies,
it
will consider
the
investments
of the
underlying investment companies when determining compliance with
the
limitation
set
forth
in
number
(1)
above,
to the
extent
the
Fund
has
sufficient information about such investments.
For
purposes
of
this limitation,
all
sovereign
debt
of
a
single
country
will
be
considered
investments
in
a
single
industry.
Where a security is guaranteed by a governmental entity or some other facility, such as a bank guarantee or letter of credit, such a guarantee or letter of credit would be considered a separate security and would be treated as an issue of such government, other entity or
bank.
For purposes of applying the limitation set forth in number (2) above, under the 1940 Act as currently in effect, a Fund is not permitted to issue senior securities, except that a Fund may borrow from any bank if immediately after such borrowing the value of the Fund’s total assets is at least 300% of the principal amount of all of the Fund’s borrowings (i.e., the principal amount of the borrowings may not exceed 33⅓% of the Fund’s total assets). In the event that such asset coverage shall at any time fall below 300%, the Fund shall, within three calendar days thereafter (not including Sundays and holidays), reduce the amount of its borrowings to an extent that the asset coverage of such borrowing shall be at least
300%.
For
purposes
of
applying
the
limitation
set
forth
in
number
(7)
above,
there
are
no
limitations
with respect to unsecured loans made by a Fund to an unaffiliated party. However, if a Fund loans its portfolio
securities,
the
obligation
on
the
part
of
the
Fund
to
return
collateral
upon
termination
of
the loan
could
be
deemed
to
involve
the
issuance
of
a
senior
security
within
the
meaning
of
Section
18(f) of
the
1940
Act.
In
order
to
avoid
violation
of
Section
18(f),
the
Fund
may
not
make
a
loan
of
portfolio securities
if,
as
a
result,
more
than
one-third
of
its
total
asset
value
(at
market
value
computed
at
the time
of
making
a
loan)
would
be
on
loan.
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In addition to the foregoing fundamental investment policies, each Fund is also subject to the following non-fundamental restrictions and policies, which may be changed by the Board of Directors.
A Fund may not:
(1) Acquire any illiquid investment if, immediately after the acquisition, the Fund would have invested more than 15% of its net assets in illiquid investments.
(2) Acquire any securities of registered open-end investment companies or registered unit investment
trusts
in
reliance
on
subparagraph
(F)
or
subparagraph
(G)
of
Section
12(d)(1)
of
the 1940
Act.
(3) Invest directly in futures and options on futures to the extent that the Adviser would be required to register with the Commodity Futures Trading Commission (
“CFTC”
) as a commodity pool operator. See “Investment Policies and Techniques—Derivatives—Limitations on the Use of CFTC-Regulated Futures and Options on Futures.”
For purposes of number (1) above, each Fund will monitor portfolio liquidity on an ongoing basis and, in the event that more than 15% of a Fund’s net assets are invested in illiquid investments, the Fund will reduce such holdings to at or below the 15% limit within a reasonable period of time. The term “illiquid investments” has the same meaning as given in Rule 22e-4 under the 1940 Act and associated guidance.
The Board of Directors has adopted guidelines and procedures under which the Adviser is to determine whether the following types of securities which may be held by certain Funds are “liquid” and to report to the Board concerning its determinations: (i) securities eligible for resale pursuant to Rule 144A under the Securities Act of 1933, as amended (the “
Securities Act
”); (ii) commercial paper issued in reliance on the “private placement” exemption from registration under Section 4(2) of the Securities Act, whether or not it is eligible for resale pursuant to Rule 144A; (iii) interest-only and principal-only, inverse floating and inverse interest-only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities; and (iv) municipal leases and securities that represent interests in municipal leases.
Certain Funds have adopted a non-fundamental investment policy pursuant to Rule 35d-1 under the 1940 Act (a “
Name Policy
”). Nuveen Large Cap Select Fund, under normal market conditions, will invest at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of large-capitalization companies. Each of Nuveen Mid Cap Growth Opportunities Fund and Nuveen Mid Cap Value Fund, under normal market conditions, will invest at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of mid-capitalization companies. Each of Nuveen Small Cap Growth Opportunities Fund, Nuveen Small Cap Select Fund and Nuveen Small Cap Value Fund, under normal market conditions, will invest at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in common stocks of small-capitalization companies. As a result, each Fund must provide shareholders with a notice meeting the requirements of Rule 35d-1(c) at least 60 days prior to any change of its Name Policy. The Funds will consider both direct investments and indirect investments (e.g., investments in other investment companies, derivatives and synthetic instruments with economic characteristics similar to the direct investments that meet the Name Policy) when determining compliance with the Name Policy. For purposes of the Name Policy, a Fund will value eligible derivatives at fair value or market value instead of notional value.
INVESTMENT POLICIES AND TECHNIQUES
The following information supplements the discussion of the Funds’ investment objectives, principal investment strategies, policies and techniques that appears in the Prospectus for the Funds. Additional information concerning principal investment strategies of the Funds, and other investment strategies that may be used by the Funds, is set forth below in alphabetical order.
If a percentage limitation on investments by a Fund stated in this SAI or its Prospectus is adhered to at the time of an investment, a later increase or decrease in percentage resulting from changes in asset value will not be deemed to violate the limitation except in the case of the limitations on borrowing. To the extent a Fund is limited to investing in securities with specified ratings or of a certain credit quality, the Fund is not required to sell a security if its rating is reduced or its credit quality declines after purchase, but may consider doing so. In connection with a Fund’s ratings restrictions, any reference in this SAI or the Prospectus to a specific rating encompasses all gradations of that rating (e.g., if this SAI or the Prospectus states that a Fund may invest in securities rated as low as B, the Fund may invest in securities rated B-). Descriptions of the rating categories of Standard & Poor’s Ratings Services, a
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division of The McGraw-Hill Companies, Inc. (“
Standard & Poor’s
”), Fitch, Inc. (“
Fitch
”) and Moody’s Investors Service, Inc. (“
Moody’s
”) are contained in Appendix A. The descriptions in Appendix A are provided for illustrative purposes only. A Fund may consider ratings given by Standard & Poor’s, Fitch, Moody’s or any other Nationally Recognized Statistical Rating Organization (“
NRSRO
”) or, for unrated securities, ratings assigned by the Sub-Adviser, when determining whether it is in compliance with the ratings and credit quality limitations on investments by the Fund stated in this SAI or the Prospectus.
References in this section to the Adviser also apply, to the extent applicable, to the Sub-Adviser of the Funds.
Asset Coverage Requirements
Consistent with SEC staff guidance, a Fund will only engage in transactions that expose it to an obligation to another party if it owns either (a) an offsetting position for the same type of financial asset or (b) cash or liquid securities, designated on the Fund’s books or held in a segregated account, with a value sufficient at all times to cover its potential obligations not covered as provided in (a). Examples of transactions governed by these asset coverage requirements include, for example, options written by the Funds, futures contracts and options on futures contracts, forward currency contracts, swaps and when-issued and delayed delivery transactions. Assets used as offsetting positions, designated on a Fund’s books, or held in a segregated account cannot be sold while the positions requiring cover are open unless replaced with other appropriate assets. As a result, the commitment of a large portion of assets to be used as offsetting positions or to be designated or segregated in such a manner could impede portfolio management or the ability to meet redemption requests or other current obligations.
In the case of long positions in futures contracts or forward contracts that are not contractually required to cash settle, a Fund may set aside or earmark liquid assets or enter into offsetting positions equal to such contracts’ full notional value, less any margin on deposit for liquid assets, while the positions are open. In the case of short positions in futures contracts or forward contracts that are not contractually required to cash settle, a Fund may set aside or earmark liquid assets or enter into offsetting positions equal to such contracts’ current market value, less any margin on deposit for liquid assets, while the positions are open. With respect to futures contracts or forward contracts that are contractually required to cash settle, however, a Fund is permitted to set aside or earmark liquid assets or enter into an offsetting position in an amount equal to the Fund’s daily mark-to-market net obligation (i.e., the Fund’s daily net liability) under the contracts, if any, rather than such contracts’ full notional value. By setting aside or earmarking assets equal to only its net obligations under cash-settled futures contracts or forward contracts, a Fund may employ leverage to a greater extent than if the Fund were required to segregate assets equal to the full notional value of such contracts.
The SEC recently adopted new Rule 18f-4 under the 1940 Act, which imposes limits on the amount of derivatives a Fund can enter into and replaces the asset segregation framework previously used by the Funds to comply with Section 18 of the 1940 Act, among other requirements. The Funds will comply with the new rule’s asset segregation framework and other requirements upon the SEC’s compliance date in 2022.
The Funds reserve the right to modify their policies in the future to comply with any changes in the positions from time to time articulated by the SEC or its staff, such as the SEC’s recently adopted Rule 18f-4, regarding asset segregation.
Borrowing
Joint Credit Agreement
The Funds, along with certain other funds managed by the Adviser (“
Participating Funds
”), are parties to a 364-day, approximately $2.405 billion credit agreement with a group of lenders (the “
Credit Agreement
”), which expires in June 2021, unless extended or renewed. The Funds may borrow under the Credit Agreement to meet shareholder redemptions and for other lawful temporary purposes. Borrowing results in interest expense and being a Participating Fund results in other fees and expenses, which may increase a Fund’s net expenses and reduce the Fund’s return. In addition, borrowing by a Fund may create leverage by increasing a Fund’s investment exposure. This will result in any changes in the Fund’s net asset value, either positive or negative, being greater than they would have been if the Fund had not borrowed. Participating Funds have been allocated different first priority portions of the committed amount of the Credit Facility based primarily on the expected likelihood and extent of the need to borrow under the Credit Agreement. Administration, legal, arrangement, upfront and undrawn fees under the Credit Agreement are allocated among Participating Funds based upon these first priority portions of the
S-6
aggregate commitment available to them and other factors deemed relevant by the Adviser and the Board of each Participating Fund, while fees on any amounts drawn by a Participating Fund under the Credit Agreement are borne by that Participating Fund.
Inter-Fund Borrowing and Lending
The SEC has granted an exemptive order permitting registered open-end and closed-end Nuveen Funds to participate in an inter-fund lending facility whereby the Nuveen Funds may directly lend to and borrow money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting in an unanticipated cash shortfall) (the “
Inter-Fund Program
”). The closed-end Nuveen Funds will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including, among other things, the requirements that (1) no Nuveen Fund may borrow or lend money through the Inter-Fund Program unless it receives a more favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no Nuveen Fund may borrow on an unsecured basis through the Inter-Fund Program unless the Nuveen Fund’s outstanding borrowings from all sources immediately after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing Nuveen Fund has a secured borrowing outstanding from any other lender, including but not limited to another Nuveen Fund, the inter-fund loan must be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value; (3) if a Nuveen Fund’s total outstanding borrowings immediately after an inter-fund borrowing would be greater than 10% of its total assets, the Nuveen Fund may borrow through the inter-fund loan on a secured basis only; (4) no Nuveen Fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15% of its net assets at the time of the loan; (5) a Nuveen Fund’s inter-fund loans to any one Nuveen Fund shall not exceed 5% of the lending Nuveen Fund’s net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending Nuveen Fund and may be repaid on any day by a borrowing Nuveen Fund. In addition, a Nuveen Fund may participate in the Inter-Fund Program only if and to the extent that such participation is consistent with the Nuveen Fund’s investment objective(s) and investment policies. The Board of Directors of the Nuveen Funds is responsible for overseeing the Inter-Fund Program.
The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a Fund borrows money from another Nuveen Fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the Fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another Nuveen Fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
Common Stocks
Common stocks represent units of ownership in a company. Common stocks usually carry voting rights and earn dividends. Unlike preferred securities, dividends on common stocks are not prescribed in advance but are declared at the discretion of a company’s board.
While investing in stocks allows shareholders to participate in the benefits of owning a company, such shareholders must accept the risks of ownership. Unlike bondholders, who have preference to a company’s earnings and cash flow, common stockholders are entitled only to the residual amount after a company meets its other obligations. For this reason, the value of a company’s stock will usually react more strongly to actual or perceived changes in the company’s financial condition or prospects than its debt obligations. Stockholders of a company that fares poorly can lose money.
Stock markets tend to move in cycles with short or extended periods of rising and falling stock prices. The value of a company’s stock may fall because of:
·
 
Factors that directly relate to that company, such as decisions made by its management or lower demand for the company’s products or services;
·
 
Factors affecting an entire industry, such as increases in production costs; and
·
 
Changes in financial market conditions that are relatively unrelated to the company or its industry, such as changes in interest rates, currency exchange rates or inflation rates.
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An investment in common stocks of issuers with small or medium market capitalizations generally involves greater risk and price volatility than an investment in common stocks of larger, more established companies. This increased risk may be due to the greater business risks of their small or medium size, limited markets and financial resources, narrow product lines and frequent lack of management depth. The securities of small and medium capitalization companies are often traded in the over-the-counter market, and might not be traded in volumes typical of securities traded on a national securities exchange. Thus, the securities of small and medium capitalization companies are likely to be less liquid and subject to more abrupt or erratic market movements than securities of larger, more established companies.
Convertible Securities
Convertible securities, which are considered “equity securities” for purposes of the Funds’ investment policies, are bonds, debentures, notes, preferred stock or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at a stated exchange ratio. A convertible security may also be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a Fund is called for redemption or conversion, the Fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a third party.
Convertible securities generally have less potential for gain or loss than common stocks. Convertible securities generally provide yields higher than the underlying common stocks, but generally lower than comparable non-convertible securities. Because of this higher yield, convertible securities generally sell at prices above their “conversion value,” which is the current market value of the stock to be received upon conversion. The difference between this conversion value and the price of convertible securities will vary over time depending on changes in the value of the underlying common stocks and interest rates. When the underlying common stocks decline in value, convertible securities will tend not to decline to the same extent because of the interest or dividend payments and the repayment of principal at maturity for certain types of convertible securities. However, securities that are convertible other than at the option of the holder generally do not limit the potential for loss to the same extent as securities convertible at the option of the holder. When the underlying common stocks rise in value, the value of convertible securities may also be expected to increase. At the same time, however, the difference between the market value of convertible securities and their conversion value will narrow, which means that the value of convertible securities will generally not increase to the same extent as the value of the underlying common stocks. Because convertible securities may also be interest-rate sensitive, their value may increase as interest rates fall and decrease as interest rates rise. Convertible securities are also subject to credit risk, and are often lower-quality securities.
Debt Securities
In addition to the debt securities described under “Short-Term Temporary Investments,” the Funds may invest in the debt securities described below. Each Fund may invest up to 5% of its total assets in debt securities (provided that this limitation does not apply to debt securities described under “Short-Term Temporary Investments”). These securities are subject to (i) interest rate risk (the risk that increases in market interest rates will cause declines in the value of debt securities held by a Fund); (ii) credit risk (the risk that the issuers of debt securities held by a Fund default in making required payments); and (iii) call or prepayment risk (the risk that a borrower may exercise the right to prepay a debt obligation before its stated maturity, requiring a Fund to reinvest the prepayment at a lower interest rate).
U.S. Government Securities
Each Fund may invest in U.S. government securities. The U.S. government securities in which the Funds may invest are either issued or guaranteed by the U.S. government, its agencies or instrumentalities. The U.S. government securities in which the Funds may invest are:
·
 
direct obligations of the U.S. Treasury, such as U.S. Treasury bills, notes, and bonds;
·
 
notes, bonds, and discount notes issued and guaranteed by U.S. government agencies and instrumentalities supported by the full faith and credit of the United States;
·
 
notes, bonds, and discount notes of U.S. government agencies or instrumentalities which receive or have access to federal funding; and
·
 
notes, bonds, and discount notes of other U.S. government instrumentalities supported only by the credit of the instrumentalities.
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U.S. Treasury obligations include separately traded interest and principal component parts of such obligations, known as Separately Traded Registered Interest and Principal Securities (“
STRIPS
”), which are transferable through the Federal book-entry system. STRIPS are sold as zero coupon securities, which means that they are sold at a substantial discount and redeemed at face value at their maturity date without interim cash payments of interest or principal. This discount is accreted over the life of the security, and such accretion will constitute the income earned on the security for both accounting and tax purposes. Because of these features, such securities may be subject to greater interest rate volatility than interest paying U.S. Treasury obligations.
The government securities in which the Funds may invest are backed in a variety of ways by the U.S. government or its agencies or instrumentalities. Some of these securities, such as Government National Mortgage Association (“
GNMA
”) mortgage-backed securities, are backed by the full faith and credit of the U.S. government. Other securities, such as obligations of the Federal National Mortgage Association (“
FNMA
”) or the Federal Home Loan Mortgage Corporation (“
FHLMC
”) are backed by the credit of the agency or instrumentality issuing the obligations but not the full faith and credit of the U.S. government. No assurances can be given that the U.S. government will provide financial support to these other agencies or instrumentalities because it is not obligated to do so. See “Agency Pass-Through Certificates” below for a description of these securities.
Agency Pass-Through Certificates
Each Fund may invest in Agency Pass-Through Certificates. Agency Pass-Through Certificates are mortgage pass-through certificates representing undivided interests in pools of residential mortgage loans. Distribution of principal and interest on the mortgage loans underlying an Agency Pass-Through Certificate is an obligation of or guaranteed by GNMA, FNMA or FHLMC. GNMA is a wholly owned corporate instrumentality of the United States within the Department of Housing and Urban Development. The guarantee of GNMA with respect to GNMA certificates is backed by the full faith and credit of the United States, and GNMA is authorized to borrow from the U.S. Treasury in an amount which is at any time sufficient to enable GNMA, with no limitation as to amount, to perform its guarantee.
FNMA is a federally chartered and privately owned corporation organized and existing under federal law. Although the Secretary of the Treasury of the United States has discretionary authority to lend funds to FNMA, neither the United States nor any agency thereof is obligated to finance FNMA’s operations or to assist FNMA in any other manner.
FHLMC is a federally chartered corporation organized and existing under federal law, the common stock of which is owned by the Federal Home Loan Banks. Neither the United States nor any agency thereof is obligated to finance FHLMC’s operations or to assist FHLMC in any other manner.
On September 6, 2008, the Federal Housing Finance Agency (“
FHFA
”) placed FNMA and FHLMC into conservatorship. As the conservator, FHFA succeeded to all rights, titles, powers and privileges of FNMA and FHLMC and of any stockholder, officer or director of FNMA and FHLMC with respect to FNMA and FHLMC and the assets of FNMA and FHLMC. FHFA selected a new chief executive officer and chairman of the board of directors for each of FNMA and FHLMC. In addition, the U.S. Treasury Department agreed to provide FNMA and FHLMC with up to $100 billion of capital each to ensure that they are able to continue to provide ongoing liquidity to the U.S. home mortgage market. FNMA and FHLMC are continuing to operate as going concerns while in conservatorship and each remain liable for all of its obligations, including its guaranty obligations, associated with its mortgage-backed securities.
The mortgage loans underlying GNMA certificates are partially or fully guaranteed by the Federal Housing Administration or the Veterans Administration, while the mortgage loans underlying FNMA certificates and FHLMC certificates are conventional mortgage loans which are, in some cases, insured by private mortgage insurance companies. Agency Pass-Through Certificates may be issued in a single class with respect to a given pool of mortgage loans or in multiple classes.
The residential mortgage loans evidenced by Agency Pass-Through Certificates generally are secured by first mortgages on one- to four-family residential dwellings. Such mortgage loans generally have final maturities ranging from 15 to 40 years and generally provide for monthly payments in amounts sufficient to amortize their original principal amounts by the maturity dates. Each monthly payment on such mortgage loans generally includes both an interest component and a principal component, so that the holder of the mortgage loans receives both interest and a partial return of principal in each monthly payment. In general, such mortgage loans can be prepaid by the borrowers at any time without any prepayment penalty. In addition, many such mortgage loans contain a “due-on-sale” clause requiring the loans to be repaid in full upon the sale of the property securing the loans. Because residential mortgage
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loans generally provide for monthly amortization and may be prepaid in full at any time, the weighted average maturity of a pool of residential mortgage loans is likely to be substantially shorter than its stated final maturity date. The rate at which a pool of residential mortgage loans is prepaid may be influenced by many factors and is not predictable with precision.
Corporate Debt Securities
Each Fund may invest in corporate debt securities. Corporate debt securities are fully taxable debt obligations issued by corporations. These securities fund capital improvements, expansions, debt refinancing or acquisitions that require more capital than would ordinarily be available from a single lender. Investors in corporate debt securities lend money to the issuing corporation in exchange for interest payments and repayment of the principal at a set maturity date. Rates on corporate debt securities are set according to prevailing interest rates at the time of the issue, the credit rating of the issuer, the length of the maturity and other terms of the security, such as a call feature. Corporate debt securities are subject to the risk of an issuer’s inability to meet principal and interest payments on the obligations and may also be subject to price volatility due to such factors as market interest rates, market perception of the creditworthiness of the issuer and general market liquidity. In addition, corporate restructurings, such as mergers, leveraged buyouts, takeovers or similar corporate transactions are often financed by an increase in a corporate issuer’s debt securities. As a result of the added debt burden, the credit quality and market value of an issuer’s existing debt securities may decline significantly.
Preferred Securities
Certain preferred securities may be viewed as debt securities. Preferred securities normally have preference over common stocks in the payment of dividends and the liquidation of the company. In all other respects, however, preferred securities are generally subordinated to the liabilities of the issuer. Unlike common stocks, preferred securities are generally not entitled to vote on corporate matters. Types of preferred securities include adjustable-rate preferred securities, fixed dividend preferred securities, perpetual preferred securities and sinking fund preferred securities. Generally, the market value of preferred securities with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk.
Because preferred securities are generally junior to most other forms of debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred security than in a more senior debt security with similar stated yield characteristics.
Debt Obligations Rated Less Than Investment Grade
The Funds may invest in both investment grade and non-investment grade debt obligations. Investment-grade securities are defined as securities which are rated at the time of purchase by two of Moody’s, Standard & Poor’s and Fitch not less than Baa, BBB and BBB (or the equivalent short-term ratings), respectively, unless only one of those rating agencies provides a rating, in which case that rating must be at least Baa or BBB, or which are of comparable quality in the judgment of the Sub-Adviser. Debt obligations rated less than “investment grade” are sometimes referred to as “high yield securities” or “junk bonds.” Except with respect to Nuveen Dividend Value Fund, each Fund’s non-investment grade debt obligations are limited to securities rated at least B by two of Standard & Poor’s, Moody’s and Fitch, unless only one of those rating agencies rates the security, in which case that rating must be at least B, or in unrated securities determined to be of comparable quality. Nuveen Dividend Value Fund may invest in debt obligations of any rating.
The “equity securities” in which the Funds invest may include debt obligations which are convertible into common stock (see “Convertible Securities” above). The Funds may invest in convertible securities that are rated less than investment grade, provided that no Fund other than Nuveen Dividend Value Fund may invest more than 5% of its net assets in less than investment grade convertible securities.
Yields on non-investment grade debt obligations will fluctuate over time. The prices of such obligations have been found to be less sensitive to interest rate changes than higher rated obligations, but more sensitive to adverse economic changes or individual corporate developments. Also, during an economic downturn or period of rising interest rates, highly leveraged issuers may experience financial stress which could adversely affect their ability to service principal and interest payment obligations, to meet projected business goals, and to obtain additional financing. In addition, periods of economic uncertainty and changes can be expected to result in increased volatility of market prices of non-investment grade debt obligations. If the issuer of a security held by a Fund defaulted, the Fund might incur additional expenses to seek recovery.
S-10
In addition, the secondary trading market for non-investment grade debt obligations may be less developed than the market for investment grade obligations. This may make it more difficult for a Fund to value and dispose of such obligations. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of non-investment grade obligations, especially in a thin secondary trading market.
Certain risks also are associated with the use of credit ratings as a method for evaluating non-investment grade debt obligations. For example, credit ratings evaluate the safety of principal and interest payments, not the market value risk of such obligations. In addition, credit rating agencies may not timely change credit ratings to reflect current events. Thus, the success of a Fund’s use of non-investment grade debt obligations may be more dependent on the Sub-Adviser’s own credit analysis than is the case with investment grade obligations.
Variable, Floating, and Fixed Rate Debt Obligations
The debt obligations in which the Funds invest may have variable, floating, or fixed interest rates. Variable rate securities provide for periodic adjustments in the interest rate. Floating rate securities are generally offered at an initial interest rate which is at or above prevailing market rates. The interest rate paid on floating rate securities is then reset periodically (commonly every 90 days) to an increment over some predetermined interest rate index. Commonly utilized indices include the three-month Treasury bill rate, the 180-day Treasury bill rate, the one-month or three-month London Interbank Offered Rate (LIBOR), the prime rate of a bank, the commercial paper rates, or the longer-term rates on U.S. Treasury securities. Variable and floating rate securities are relatively long-term instruments that often carry demand features permitting the holder to demand payment of principal at any time or at specified intervals prior to maturity plus accrued interest. In order to most effectively use these securities, the Sub-Adviser must correctly assess probable movements in interest rates. If the Sub-Adviser incorrectly forecasts such movements, a Fund could be adversely affected by use of variable and floating rate securities.
Fixed rate securities pay a fixed rate of interest and tend to exhibit more price volatility during times of rising or falling interest rates than securities with variable or floating rates of interest. The value of fixed rate securities will tend to fall when interest rates rise and rise when interest rates fall. The value of variable or floating rate securities, on the other hand, fluctuates much less in response to market interest rate movements than the value of fixed rate securities. This is because variable and floating rate securities behave like short-term instruments in that the rate of interest they pay is subject to periodic adjustments according to a specified formula, usually with reference to some interest rate index or market interest rate. Fixed rate securities with short-term characteristics are not subject to the same price volatility as fixed rate securities without such characteristics. Therefore, they behave more like variable or floating rate securities with respect to price volatility.
Derivatives
Subject to the limitations set forth below under “Limitations on the Use of CFTC-Regulated Futures and Options on Futures,” each Fund may use derivative instruments as described below. Generally, a derivative is a financial contract the value of which depends upon, or is derived from, the value of an underlying asset, reference rate or index. Derivatives generally take the form of contracts under which the parties agree to payments between them based upon the performance of a wide variety of underlying references, such as stocks, bonds, loans, commodities, interest rates, currency exchange rates, and various domestic and foreign indices.
The Funds may use derivatives for a variety of reasons, including as a substitute for investing directly in securities, as part of a hedging strategy (that is, for the purpose of reducing risk to the Fund), or for other purposes related to the management of the Funds. Derivatives permit a Fund to increase or decrease the level of risk, or change the character of the risk, to which its portfolio is exposed in much the same way as a Fund can increase or decrease the level of risk, or change the character of the risk, of its portfolio by making investments in specific securities. However, derivatives may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives could have a large impact on a Fund’s performance.
While transactions in some derivatives may be effected on established exchanges, many other derivatives are privately negotiated and entered into in the over-the-counter (“
OTC”
) market with a single counterparty. When exchange-traded derivatives are purchased and sold, a clearing agency associated with the exchange stands between each buyer and seller and effectively guarantees performance of each contract, either on a limited basis through a guaranty fund or to the full extent of the clearing agency’s
S-11
balance sheet. Transactions in OTC derivatives not subject to a clearing requirement have no such protection. Each party to an uncleared OTC derivative bears the risk that its direct counterparty will default. In addition, OTC derivatives are generally less liquid than exchange-traded derivatives because they often can only be closed out with the other party to the transaction.
The use of derivative instruments is subject to applicable regulations of the SEC, the CFTC, various state regulatory authorities and, with respect to exchange-traded derivatives, the several exchanges upon which they are traded. As discussed above under “Asset Coverage Requirements,” in order to engage in certain transactions in derivatives, a Fund may be required to hold offsetting positions or to hold cash or liquid securities in a segregated account or designated on the Fund’s books. In addition, a Fund’s ability to use derivative instruments may be limited by tax considerations.
The particular derivative instruments the Funds can use are described below. A Fund’s portfolio manager(s) may decide not to employ some or all of these instruments, and there is no assurance that any derivatives strategy used by a Fund will succeed. The Funds may employ new derivative instruments and strategies when they are developed, if those investment methods are consistent with the particular Fund’s investment objective and are permissible under applicable regulations governing the Fund.
Options Transactions
The Funds may purchase put and call options on specific securities (including groups or “baskets” of specific securities), interest rates, stock indices, bond indices and/or foreign currencies. In addition, the Funds may write put and call options on such financial instruments.
Options on Securities.
The Funds may purchase put and call options on securities. A put option on a security gives the purchaser of the option the right (but not the obligation) to sell, and the writer of the option the obligation to buy, the underlying security at a stated price (the “exercise price”) at any time before the option expires. A call option on a security gives the purchaser the right (but not the obligation) to buy, and the writer the obligation to sell, the underlying security at the exercise price at any time before the option expires. The purchase price for a put or call option is the “premium” paid by the purchaser for the right to sell or buy.
A Fund may purchase put options to hedge against a decline in the value of its portfolio. By using put options in this way, a Fund would reduce any profit it might otherwise have realized in the underlying security by the amount of the premium paid for the put option and by transaction costs. In similar fashion, a Fund may purchase call options to protect against an increase in the price of securities that the Fund anticipates purchasing in the future, a practice sometimes referred to as “anticipatory hedging.” The premium paid for the call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises sufficiently, the option may expire unexercised.
Options on Interest Rates and Indices.
The Funds may purchase put and call options on interest rates and on stock and bond indices. An option on interest rates or on an index gives the holder the right to receive, upon exercise of the option, an amount of cash if the closing value of the underlying interest rate or index is greater than, in the case of a call, or less than, in the case of a put, the exercise price of the option. This amount of cash is equal to the difference between the exercise-settlement value of the interest rate option or the closing price of the index and the exercise price of the option expressed in dollars times a specified multiple (the “multiplier”). The writer of the option is obligated, for the premium received, to make delivery of this amount. Settlements for interest rate and index options are always in cash.
Options on Currencies.
The Funds may purchase put and call options on foreign currencies. A foreign currency option provides the option buyer with the right to buy or sell a stated amount of foreign currency at the exercise price at a specified date or during the option period. A call option gives its owner the right, but not the obligation, to buy the currency, while a put option gives its owner the right, but not the obligation, to sell the currency. The option seller (writer) is obligated to fulfill the terms of the option sold if it is exercised. However, either seller or buyer may close its position during the option period in the secondary market for such options at any time prior to expiration.
A foreign currency call option rises in value if the underlying currency appreciates. Conversely, a foreign currency put option rises in value if the underlying currency depreciates. While purchasing a foreign currency option may protect a Fund against an adverse movement in the value of a foreign currency, it would limit the gain which might result from a favorable movement in the value of the currency. For example, if the Fund were holding securities denominated in an appreciating foreign
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currency and had purchased a foreign currency put to hedge against a decline in the value of the currency, it would not have to exercise its put. In such an event, however, the amount of the Fund’s gain would be offset in part by the premium paid for the option. Similarly, if the Fund entered into a contract to purchase a security denominated in a foreign currency and purchased a foreign currency call to hedge against a rise in the value of the currency between the date of purchase and the settlement date, the Fund would not need to exercise its call if the currency instead depreciated in value. In such a case, the Fund could acquire the amount of foreign currency needed for settlement in the spot market at a lower price than the exercise price of the option.
Writing Options.
The Funds may write (sell) put and call options. These transactions would be undertaken principally to produce additional income. A Fund receives a premium from writing options which it retains whether or not the option is exercised. The Funds may write straddles consisting of a combination of a call and a put written on the same underlying instrument.
A Fund will write a call option on a security only if (a) the Fund owns the security underlying the call, (b) the Fund has an absolute and immediate right to acquire that security without additional cash consideration (or, if additional cash consideration is required, cash or other liquid assets in such amount are segregated), or (c) the Fund holds a call on the same security where the exercise price of the call is (i) equal to or less than the exercise price of the call written, or (ii) greater than the exercise price of the call written, provided the difference is maintained by the Fund in segregated liquid assets.
A Fund will write a call option on a basket of securities, an index or currency only if (a) the Fund segregates liquid assets in an amount equal to the contract value of the index, basket or currency, or (b) the Fund holds a call on the same index, basket or currency as the call written where the exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the exercise price of the call written, provided the difference is maintained by the Fund in segregated liquid assets.
A Fund will write a put option on a security, basket of securities, index or currency only if (a) the Fund segregates liquid assets equal to the exercise price or (b) the Fund holds a put on the same security, basket of securities, index or currency as the put written where the exercise price of the put held is (i) equal to or greater than the exercise price of the put written, or (ii) less than the exercise price of the put written, provided the difference is maintained by the Fund in segregated liquid assets.
When a Fund writes a straddle, sufficient assets will be segregated to meet the Fund’s immediate obligations. A Fund may segregate the same liquid assets for both the call and put options in a straddle where the exercise price of the call and put are the same, or the exercise price of the call is higher than that of the put. In such cases, the Fund will also segregate liquid assets equivalent to the amount, if any, by which the put is “in the money.”
Expiration or Exercise of Options.
If an option purchased by a Fund expires unexercised, the Fund realizes a capital loss equal to the premium paid. If an option written by a Fund expires unexercised, the Fund realizes a capital gain equal to the premium received at the time the option was written. Prior to the earlier of exercise or expiration, an exchange traded option may be closed out by an offsetting purchase or sale of an option of the same series (type, exchange, underlying security, currency or index, exercise price, and expiration). There can be no assurance, however, that a closing purchase or sale transaction can be effected when a Fund desires.
The Funds may sell put or call options it has previously purchased, which could result in a net gain or loss depending on whether the amount realized on the sale is more or less than the premium and other transaction costs paid on the put or call option which is sold. Prior to exercise or expiration, an option may be closed out by an offsetting purchase or sale of an option of the same series. A Fund will realize a capital gain from a closing purchase transaction if the cost of the closing option is less than the premium received from writing the option, or, if it is more, the Fund will realize a capital loss. If the premium received from a closing sale transaction is more than the premium paid to purchase the option, the Fund will realize a capital gain or, if it is less, the Fund will realize a capital loss. The principal factors affecting the market value of a put or a call option include supply and demand, interest rates, the current market price of the underlying security, currency or index in relation to the exercise price of the option, the volatility of the underlying security, currency or index, and the time remaining until the expiration date.
Futures
The Funds may engage in futures transactions. The Funds may buy and sell futures contracts that relate to (1) interest rates, (2) debt securities, (3) bond indices, (4) foreign currencies, (5) stock indices,
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and (6) individual stocks. The Funds may only enter into futures contracts which are standardized and traded on a U.S. or foreign exchange, board of trade or similar entity, or quoted on an automated quotation system.
A futures contract is an agreement between two parties to buy and sell a security, index, interest rate or currency (each a “
financial instrument”
) for a set price on a future date. Certain futures contracts, such as futures contracts relating to individual securities, call for making or taking delivery of the underlying financial instrument. However, these contracts generally are closed out before delivery by entering into an offsetting purchase or sale of a matching futures contract. Other futures contracts, such as futures contracts on interest rates and indices, do not call for making or taking delivery of the underlying financial instrument, but rather are agreements pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference between the value of the financial instrument at the close of the last trading day of the contract and the price at which the contract was originally written. These contracts also may be settled by entering into an offsetting futures contract.
Unlike when a Fund purchases or sells a security, no price is paid or received by the Fund upon the purchase or sale of a futures contract. Initially, a Fund will be required to deposit with its futures broker (also known as a futures commission merchant (“
FCM”
)) an amount of cash or securities equal to a specified percentage of the contract amount. This amount is known as initial margin. The margin deposit is intended to ensure completion of the contract. Minimum initial margin requirements are established by the futures exchanges and may be revised. In addition, FCMs may establish margin deposit requirements that are higher than the exchange minimums. Cash held as margin is generally invested by the FCM in high-quality instruments permitted under CFTC regulations, with returns retained by the FCM and interest paid to the Fund on the cash at an agreed-upon rate. A Fund will also receive any interest paid from coupon-bearing securities, such as Treasury securities, held in margin accounts. Subsequent payments to and from the FCM, called variation margin, will be made on a daily basis as the price of the underlying financial instrument fluctuates, making the futures contract more or less valuable, a process known as marking the contract to market. Changes in variation margin are recorded by a Fund as unrealized gains or losses. At any time prior to expiration of the futures contract, a Fund may elect to close the position by taking an opposite position that will operate to terminate its position in the futures contract. A final determination of variation margin is then made, additional cash is required to be paid by or released to the Fund, and the Fund realizes a gain or loss. In the event of the bankruptcy or insolvency of an FCM that holds margin on behalf of a Fund, the Fund may be entitled to the return of margin owed to it only in proportion to the amount received by the FCM’s other customers, potentially resulting in losses to the Fund. Futures transactions also involve brokerage costs.
Most U.S. futures exchanges limit the amount of fluctuation permitted in futures contract prices during a single trading day. The daily limit establishes the maximum amount that the price of a futures contract may vary either up or down from the previous day’s settlement price at the end of a trading session. Once the daily limit has been reached in a particular type of futures contract, no trades may be made on that day at a price beyond that limit. The daily limit governs only price movement during a particular trading day and therefore does not limit potential losses, because the limit may prevent the liquidation of unfavorable positions. Futures contract prices have occasionally moved to the daily limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and subjecting some futures traders to substantial losses.
Options on Futures
The Funds may purchase or write put and call options on futures contracts and enter into closing transactions with respect to such options to terminate an existing position. A futures option gives the holder the right, in return for the premium paid, to assume a long position (call) or short position (put) in a futures contract at a specified exercise price prior to the expiration of the option. Upon exercise of a call option, the holder acquires a long position in the futures contract and the writer is assigned the opposite short position. In the case of a put option, the opposite is true. Prior to exercise or expiration, a futures option may be closed out by an offsetting purchase or sale of a futures option of the same series.
A Fund may use options on futures contracts in connection with hedging strategies. The writing of a call option or the purchasing of a put option on a futures contract constitutes a partial hedge against declining prices of the securities which are deliverable upon exercise of the futures contract. If the futures price at expiration of a written call option is below the exercise price, a Fund will retain the full amount of the option premium which provides a partial hedge against any decline that may have occurred in the Fund’s holdings of securities. If the futures price when the option is exercised is above the exercise price, however, a Fund will incur a loss, which may be offset, in whole or in part, by the increase in the value of
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the securities held by the Fund that were being hedged. Writing a put option or purchasing a call option on a futures contract serves as a partial hedge against an increase in the value of the securities a Fund intends to acquire.
When writing a call option, a Fund must either segregate liquid assets with a value equal to the fluctuating market value of the optioned futures contract, or the Fund must own an option to purchase the same futures contract having an exercise price that is (i) equal to or less than the exercise price of the call written, or (ii) greater than the exercise price of the call written, provided the difference is maintained by the Fund in segregated liquid assets.
When writing a put option, a Fund must segregate liquid assets in an amount not less than the exercise price, or own a put option on the same futures contract where the exercise price of the put held is (i) equal to or greater than the exercise price of the put written, or (ii) less than the exercise price of the put written, provided the difference is maintained by the Fund in segregated liquid
assets.
As with investments in futures contracts, each Fund is required to deposit and maintain margin with respect to put and call options on futures contracts written by it.
Forward Currency Contracts and other Foreign Currency Transactions
The Funds may enter into forward currency contracts. A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded directly between currency traders (usually large commercial banks) and their customers. Unlike futures contracts, which are standardized contracts, forward contracts can be specifically drawn to meet the needs of the parties that enter into them. The parties to a forward currency contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated exchange. Because forward contracts are not traded on an exchange, the Funds are subject to the credit and performance risk of the counterparties to such contracts.
The following, among others, are types of currency management strategies involving forward contracts that may be used by the Funds. These Funds also may use currency futures contracts and options thereon and put and call options on foreign currencies for the same purposes.
Transaction Hedges.
When a Fund enters into a contract for the purchase or sale of a security denominated in a foreign currency, or when it anticipates receiving dividend payments in a foreign currency, the Fund might wish to lock in the U.S. dollar price of the security or the U.S. dollar equivalent of the dividend payments. To do so, the Fund could enter into a forward contract for the purchase or sale of the amount of foreign currency involved in the underlying transaction at a fixed amount of U.S. dollars per unit of the foreign currency. This is known as a “transaction hedge.” A transaction hedge will protect a Fund against a loss from an adverse change in the currency exchange rate during the period between the date on which the security is purchased or sold or on which the payment is declared, and the date on which the payment is made or received. Forward contracts to purchase or sell a foreign currency may also be used by a Fund in anticipation of future purchases or sales of securities denominated in a foreign currency, even if the specific investments have not yet been selected by the Sub-Adviser. This strategy is sometimes referred to as “anticipatory hedging.”
Position Hedges.
A Fund could also use forward contracts to lock in the U.S. dollar value of portfolio positions. This is known as a “position hedge.” When a Fund believes that a foreign currency might suffer a substantial decline against the U.S. dollar, it could enter into a forward contract to sell an amount of that foreign currency approximating the value of some or all of the Fund’s portfolio securities denominated in that foreign currency. When a Fund believes that the U.S. dollar might suffer a substantial decline against a foreign currency, it could enter into a forward contract to buy that foreign currency for a fixed dollar amount. Alternatively, a Fund could enter into a forward contract to sell a different foreign currency for a fixed U.S. dollar amount if the Fund’s portfolio manager(s) believe that the U.S. dollar value of that foreign currency will fall whenever there is a decline in the U.S. dollar value of the currency in which portfolio securities of the Fund are denominated. This is referred to as a “cross hedge.”
Shifting Currency Exposure.
A Fund may also enter into forward contracts to shift its investment exposure from one currency into another. This may include shifting exposure from U.S. dollars to foreign currency or from one foreign currency to another foreign currency. This strategy tends to limit exposure to the currency sold, and increase exposure to the currency that is purchased, much as if a Fund had sold a
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security denominated in one currency and purchased an equivalent security denominated in another currency.
Limitations on the Use of CFTC-Regulated Futures and Options on Futures
Each Fund will limit its direct investments in CFTC-regulated futures and options on futures (“
CFTC Derivatives
”) to the extent necessary for the Adviser to claim the exclusion from regulation as a commodity pool operator with respect to the Fund under CFTC Rule 4.5, as such rule may be amended from time to time. Under Rule 4.5 as currently in effect, each Fund will limit its trading activity in CFTC Derivatives (excluding activity for “bona fide hedging purposes,” as defined by the CFTC) such that it meets one of the following tests:
·
 
Aggregate initial margin and premiums required to establish its positions in CFTC Derivatives do not exceed 5% of the liquidation value of the Fund’s portfolio, after taking into account unrealized profits and losses on such positions; or
·
 
Aggregate net notional value of its positions in CFTC Derivatives does not exceed 100% of the liquidation value of the Fund’s portfolio, after taking into account unrealized profits and losses on such positions.
With respect to each Fund, the Adviser has filed a notice of eligibility for exclusion from the definition of the term commodity pool operator under the Commodity Exchange Act and therefore is not subject to registration or regulation as a commodity pool operator thereunder.
The requirements for qualification as a regulated investment company may also limit the extent to which each Fund may invest in CFTC Derivatives. See “Tax Matters—Qualification as a Regulated Investment Company.”
Federal Income Tax Treatment of Futures Contracts and Options
Each Fund’s transactions in futures contracts and options will be subject to special provisions of the Internal Revenue Code of 1986, as amended (the “
Code
”), that, among other things, may affect the character of gains and losses realized by a Fund (i.e., may affect whether gains or losses are ordinary or capital, or short-term or long-term), may accelerate recognition of income to a Fund and may defer Fund losses. These rules could, therefore, affect the character, amount and timing of distributions to shareholders. These provisions also (a) will require a Fund to mark-to-market certain types of the positions in its portfolio (i.e., treat them as if they were closed out) and (b) may cause a Fund to recognize income without receiving cash with which to make distributions in amounts necessary to satisfy the 90% distribution requirement for qualifying to be taxed as a regulated investment company and the distribution requirement for avoiding excise taxes.
Risks and Special Considerations Concerning Derivatives
The use of derivative instruments involves certain general risks and considerations as described below.
1)
Market Risk.
Market risk is the risk that the value of the underlying assets may go up or down. Adverse movements in the value of an underlying asset can expose a Fund to losses. The successful use of derivative instruments depends upon a variety of factors, particularly the portfolio managers' ability to predict movements in the relevant markets, which may require different skills than predicting changes in the prices of individual securities. There can be no assurance that any particular strategy adopted will
succeed.
2)
Counterparty Risk.
Counterparty risk is the risk that a loss may be sustained as a result of the failure of a counterparty to comply with the terms of a derivative instrument. The counterparty risk for exchange-traded derivatives is generally less than for OTC derivatives, since generally a clearing agency, which is the issuer or counterparty to each exchange-traded instrument, provides a guarantee of performance. For many OTC instruments, there is no similar clearing agency guarantee and there is less regulation or supervision of transactions. In all transactions, a Fund will bear the risk that the counterparty will default, and this could result in a loss of the expected benefit of the derivative transactions and possibly other losses to the Fund. A Fund will enter into derivatives transactions only with counterparties that its portfolio manager(s) reasonably believe are capable of performing under the
contract.
3)
Correlation Risk.
Correlation risk is the risk that there might be an imperfect correlation, or even no correlation, between price movements of a derivative instrument and price movements of investments
being
hedged.
When
a
derivative
transaction
is
used
to
completely
hedge
another
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position, changes in the market value of the combined position (the derivative instrument plus the position being hedged) result from an imperfect correlation between the price movements of the two instruments.
With a perfect hedge, the value of the combined position remains unchanged with any change in the price of the underlying asset. With an imperfect hedge, the value of the derivative instrument and its hedge are not
perfectly
correlated.
For
example,
if
the
value
of
a
derivative
instrument
used
in
a
short
hedge
(such as writing a call option, buying a put option or selling a futures contract) increased by less than the decline in value of the hedged investments, the hedge would not be perfectly correlated. This might occur due to factors unrelated to the value of the investments being hedged, such as speculative or other
pressures
on
the
markets
in
which
these
instruments
are
traded.
The
effectiveness
of
hedges
using instruments on indices will depend, in part, on the degree of correlation between price movements in the index and the price movements in the investments being
hedged.
4)
Liquidity Risk.
Liquidity risk is the risk that a derivative instrument cannot be sold, closed out or replaced quickly at or very close to its fundamental value. Generally, exchange contracts are very liquid because the exchange clearinghouse is the counterparty of every contract. OTC transactions are less liquid than exchange-traded derivatives since they often can only be closed out with the other party to the transaction. A Fund might be required by applicable regulatory requirements to maintain assets as “cover,” maintain segregated accounts, and/or make margin payments when it takes positions in derivative instruments involving obligations to third parties (i.e., instruments other than purchase options). If a Fund is unable to close out its positions in such instruments, it might be required to continue to maintain such assets or accounts or make such payments until the position expires, matures or is closed out. These requirements might impair a Fund’s ability to sell a security or make an investment at a time when it would otherwise be favorable to do so, or require that the Fund sell a portfolio security at a disadvantageous time. A Fund’s ability to sell or close out a position in an instrument prior to expiration or maturity depends upon the existence of a liquid secondary market or, in the absence of such a market, the ability and willingness of the counterparty to enter into a transaction closing out the position. There is no assurance that any derivatives position can be sold or closed out at a time and price that is favorable to a Fund.
5)
Legal Risk.
Legal risk is the risk of loss caused by the unenforceability of a party’s obligations under the derivative. While a party seeking price certainty agrees to surrender the potential upside in exchange for downside protection, the party taking the risk is looking for a positive payoff. Despite this voluntary assumption of risk, a counterparty that has lost money in a derivative transaction may try to
avoid
payment
by
exploiting
various
legal
uncertainties
about
certain
derivative
products.
6)
Systemic or “Interconnection” Risk.
Systemic or interconnection risk is the risk that a disruption in the financial markets will cause difficulties for all market participants. In other words, a disruption in one market will spill over into other markets, perhaps creating a chain reaction. Much of the OTC derivatives market takes place among the OTC dealers themselves, thus creating a large interconnected web of financial obligations. This interconnectedness raises the possibility that a default by one large dealer could create losses for other dealers and destabilize the entire market for OTC derivative
instruments.
7)
Leverage Risk.
Leverage risk
is the
risk that
a
Fund
may be more
volatile than
if it had not
been leveraged
due to
leverage’s tendency
to
exaggerate
the
effect
of any
increase
or
decrease
in the
value
of the
Fund’s
portfolio
securities.
The
use
of
leverage
may
also
cause
the
Fund
to
liquidate
portfolio
positions when
it
may
not
be
advantageous
to
do
so
to
satisfy
its
obligations
or
to
meet
segregation
requirements.
8)
Regulatory Risk
. The Dodd-Frank Act Wall Street Reform and Consumer Protection Act (the “
Dodd-Frank Act”
) has initiated a dramatic revision of the U.S. financial regulatory framework and covers a broad range of topics, including (among many others) a reorganization of federal financial regulators; a process intended to improve financial systemic stability and the resolution of potentially insolvent financial firms; and new rules for derivatives trading. Instruments in which the Funds may invest, or the issuers of such instruments, may be affected by this legislation and regulation in ways that are unforeseeable. Certain of the implementing regulations have not yet been finalized or made effective. Accordingly, the ultimate impact of the Dodd-Frank Act, including on the derivative instruments in which the Funds may invest, is not yet certain.
S-17
Exchange-Traded Funds
The Funds may invest in exchange-traded funds (“
ETFs”
). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a portfolio of securities designed to track a particular market index. A Fund could purchase an ETF to gain exposure to all or a portion of the U.S. market, a foreign market, a region, a commodity, a currency, or to any other index that an ETF tracks. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees that increase their costs. An ETF may fail to accurately track the returns of the market segment or index that it is designed to track, and the price of an ETF’s shares may fluctuate. In addition, because they, unlike traditional mutual funds, are traded on an exchange, ETFs are subject to the following risks: (i) the performance of the ETF may not replicate the performance of the underlying index that it is designed to track; (ii) the market price of the
ETF’s
shares
may
trade
at
a
premium
or
discount
to
the
ETF’s
net
asset
value;
(iii)
an
active
trading market for an ETF may not develop or be maintained; and (iv) there is no assurance that the requirements of the exchange necessary to maintain the listing of the ETF will continue to be met or remain unchanged. Trading in an ETF may be halted if the trading in one or more of the ETF’s underlying securities is halted, which could result in the ETF being more volatile. In the event substantial market or other disruptions affecting ETFs should occur in the future, the liquidity and value of a Fund’s shares could also be substantially and adversely
affected.
Exchange-Traded Notes
The Funds may invest in exchange-traded notes (“
ETNs”
). ETNs are a type of senior, unsecured, unsubordinated debt security issued by financial institutions that combines both aspects of bonds and ETFs. An ETN’s returns are based on the performance of a market index minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However,
unlike an ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to
the
performance
of
the
market
index
to
which
the
ETN
is
linked
minus
certain
fees.
Unlike regular bonds, ETNs do not make periodic interest payments and principal is not protected.
ETNs
are
subject
to
credit
risk
and
the
value
of
an
ETN
may
drop
due
to
a
downgrade
in the
issuer’s
credit
rating,
despite
the
underlying
market
benchmark
or
strategy
remaining
unchanged. The
value
of
an
ETN
may
also
be
influenced
by
time
to
maturity,
level
of
supply
and
demand
for
the ETN, volatility and lack of liquidity in underlying assets, changes in the applicable interest rates, changes
in
the
issuer’s
credit
rating,
and
economic,
legal,
political,
or
geographic
events
that
affect the
referenced
underlying
asset.
When
a
Fund
invests
in
ETNs
it
will
bear
its
proportionate
share
of any
fees
and
expenses
borne
by
the
ETN.
A
Fund’s
decision
to
sell
its
ETN
holdings
may
be
limited by
the
availability
of
a
secondary
market.
In
addition,
although
an
ETN
may
be
listed
on
an
exchange, the
issuer
may
not
be
required
to
maintain
the
listing
and
there
can
be
no
assurance
that
a
secondary market
will
exist
for
an
ETN.
ETNs are also subject to tax risk. No assurance can be given that the Internal Revenue Service (“
IRS
”) will accept, or a court will uphold, how the Funds characterize and treat ETNs for tax purposes. Further, the IRS and Congress have considered proposals that would change the timing and character of income and gains from ETNs.
An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy. Some ETNs that use leverage can, at times, be relatively illiquid and, thus, they may be difficult to purchase or sell at a fair price. Leveraged ETNs are subject to the same risk as other instruments that use leverage in any
form.
The market value of ETN shares may differ from their market benchmark or strategy. This difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in time is not always identical to the supply and demand in the market for the securities, commodities or other components underlying the market benchmark or strategy that the ETN seeks to track. As a result, there may be times when an ETN share trades at a premium or discount to its market benchmark or
strategy.
Foreign Securities
General.
The Funds may invest in foreign securities, including securities which are purchased and sold in foreign currencies. Foreign securities may include debt securities of governmental and corporate issuers, preferred stock, common stock, and convertible securities of corporate issuers, rights and
S-18
warrants to buy common stocks, depositary receipts evidencing ownership of shares of a foreign issuer, and exchange traded funds and other investment companies that provide exposure to foreign issuers.
Investment in foreign securities is subject to special investment risks that differ in some respects from those related to investments in securities of U.S. domestic issuers. These risks include political, social or economic instability in the country of the issuer, the difficulty of predicting international trade patterns, the possibility of the imposition of exchange controls, expropriation, limits on removal of currency or other assets, nationalization of assets, foreign withholding and income taxation, and foreign trading practices (including higher trading commissions, custodial charges and delayed settlements). Foreign securities also may be subject to greater fluctuations in price than securities issued by U.S. corporations. The principal markets on which these securities trade may have less volume and liquidity, and may be more volatile, than securities markets in the United States.
In addition, there may be less publicly available information about a foreign company than about a U.S. domiciled company. Foreign companies generally are not subject to uniform accounting, auditing and financial reporting standards comparable to those applicable to U.S. domestic companies. There is also generally less government regulation of securities exchanges, brokers and listed companies abroad than in the United States. Confiscatory taxation or diplomatic developments could also affect investment in those countries. In addition, foreign branches of U.S. banks, foreign banks and foreign issuers may be subject to less stringent reserve requirements and to different accounting, auditing, reporting, and record keeping standards than those applicable to domestic branches of U.S. banks and U.S. domestic issuers.
Emerging Markets.
Each Fund may invest in securities issued by governmental and corporate issuers that are located in emerging market countries. Investments in securities of issuers in emerging market countries may be subject to potentially higher risks than investments in developed countries. These risks include (i) less social, political and economic stability; (ii) the small current size of the markets for such securities and the currently low or nonexistent volume of trading, which may result in a lack of liquidity and in greater price volatility; (iii) certain national policies which may restrict a Fund’s investment opportunities, including restrictions on investment in issuers or industries deemed sensitive to national interests; (iv) foreign taxation; (v) the absence of developed structures governing private or foreign investment or allowing for judicial redress for injury to private property; (vi) the limited development and recent emergence, in certain countries, of a capital market structure or market-oriented economy; and (vii) the possibility that recent favorable economic developments in certain countries may be slowed or reversed by unanticipated political or social events in such countries. All of the risks of investing in non-U.S. securities described above are heightened by investing in emerging markets countries.
Certain countries, which do not have market economies, are characterized by an absence of developed legal structures governing private and foreign investments and private property. Certain countries require governmental approval prior to investments by foreign persons, or limit the amount of investment by foreign persons in a particular company, or limit the investment of foreign persons to only a specific class of securities of a company that may have less advantageous terms than securities of the company available for purchase by nationals.
Authoritarian governments in certain countries may require that a governmental or quasi- governmental authority act as custodian of a Fund’s assets invested in such country. To the extent such governmental or quasi-governmental authorities do not satisfy the requirements of the 1940 Act to act as foreign custodians of the Fund’s cash and securities, the Fund’s investment in such countries may be limited or may be required to be effected through intermediaries. The risk of loss through governmental confiscation may be increased in such countries.
Depositary Receipts
. The Funds’ investments in foreign securities may include investment in depositary receipts, including American Depositary Receipts (“
ADRs
”), European Depositary Receipts (“
EDRs
”) and Global Depositary Receipts (“
GDRs
”). U.S. dollar-denominated ADRs, which are traded in the United States on exchanges or over-the-counter, are issued by domestic banks. ADRs represent the right to receive securities of foreign issuers deposited in a domestic bank or a correspondent bank. ADRs do not eliminate all the risk inherent in investing in the securities of foreign issuers. However, by investing in ADRs rather than directly in foreign issuers’ stock, a Fund can avoid currency risks during the settlement period for either purchases or sales. In general, there is a large, liquid market in the United States for many ADRs. The information available for ADRs is subject to the accounting, auditing and financial reporting standards of the domestic market or exchange on which they are traded, which standards are more uniform and more exacting than those to which many foreign issuers may be subject. The Funds may also invest in EDRs, GDRs and in other similar instruments representing securities of foreign companies. EDRs and GDRs are securities that are typically issued by foreign banks or foreign
S-19
trust companies, although U.S. banks or U.S. trust companies may issue them. EDRs and GDRs are structured similarly to the arrangements of ADRs. EDRs, in bearer form, are designed for use in European securities markets and are not necessarily denominated in the currency of the underlying security.
Certain depositary receipts, typically those denominated as unsponsored, require the holders thereof to bear most of the costs of the facilities while issuers of sponsored facilities normally pay more of the costs thereof. The depository of an unsponsored facility frequently is under no obligation to distribute shareholder communications received from the issuer of the deposited securities or to pass through the voting rights to facility holders in respect to the deposited securities, whereas the depository of a sponsored facility typically distributes shareholder communications and passes through voting
rights.
Foreign Securities Exchanges.
Fixed commissions on foreign securities exchanges are generally higher than negotiated commissions on U.S. exchanges. Foreign markets also have different clearance and settlement procedures, and in some markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Delays in settlement could result in temporary periods when a portion of the assets of a Fund is uninvested. In addition, settlement problems could cause a Fund to miss attractive investment opportunities or to incur losses due to an inability to sell or deliver securities in a timely fashion. In the event of a default by an issuer of foreign securities, it may be more difficult for a Fund to obtain or to enforce a judgment against the issuer.
Lending of Portfolio Securities
In order to generate additional income, each Fund may lend portfolio securities representing up to one-third of the value of its total assets to broker-dealers, banks or other institutional borrowers of securities that the Adviser has determined are creditworthy. The securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities, however the Funds bear the risk that the securities lending agent may default on its contractual obligations to the Funds. The Funds also bear the market risk with respect to the investment of the cash collateral used to secure the loan. A Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investments to meet its obligations to the borrower. The Funds will pay a portion of the income earned on other lending transactions to the placing broker and may pay administrative and custodial fees in connection with these loans.
In these loan arrangements, the Funds will receive cash collateral equal to at least 102% of the value of the securities loaned as determined at the time of loan origination. If the market value of the loaned securities increases, the borrower must furnish additional collateral to the lending Fund. During the time portfolio securities are on loan, the borrower pays the lending Fund any dividends or interest paid on the securities. Loans are subject to termination at any time by the lending Fund or the borrower. While a Fund does not have the right to vote securities on loan, it would terminate the loan and regain the right to vote if that were considered important with respect to the investment.
When a Fund lends portfolio securities to a borrower, payments in lieu of dividends made by the borrower to the Fund will not constitute “qualified dividends” taxable at the same rate as long-term capital gains, even if the actual dividends would have constituted qualified dividends had the Fund held the securities. See “Taxation.”
Master Limited Partnerships
Equity securities in which a Fund may invest include master limited partnerships (“
MLPs
”). An MLP is an entity, most commonly a limited partnership, that is taxed as a partnership, publicly traded and listed on a national securities exchange. Holders of common units of MLPs typically have limited control and limited voting rights as compared to holders of a corporation’s common shares. Preferred units issued by MLPs are not typically listed or traded on an exchange. Holders of preferred units can be entitled to a wide range of voting and other rights. MLPs are limited by the Code to only apply to enterprises that engage in certain businesses, mostly pertaining to the use of natural resources, such as petroleum and natural gas extraction and transportation, although some other enterprises may also qualify as MLPs.
There are certain tax risks associated with investments in MLPs. The benefit derived from an investment in an MLP is largely dependent on the MLP being treated as a partnership for federal income tax purposes. A change to current tax law, or a change in the underlying business mix of a given MLP, could result in an MLP being treated as a corporation for federal income tax purposes. If an MLP were treated as a corporation, the MLP would be required to pay federal income tax on its taxable income. This
S-20
would reduce the amount of cash available for distribution by the MLP, which could result in a reduction of the value of a Fund’s investment in the MLP and lower income to the Fund. Additionally, since MLPs generally conduct business in multiple states, a Fund may be subject to income or franchise tax in each of the states in which the partnership does business. The additional cost of preparing and filing the tax returns and paying the related taxes may adversely impact a Fund’s return on its investment in MLPs.
Investments held by MLPs may be relatively illiquid, limiting the MLPs’ ability to vary their portfolios promptly in response to changes in economic or other conditions, and MLPs may have limited financial resources. Securities of MLPs may trade infrequently and in limited volume, and they may be subject to more abrupt or erratic price movements than common shares of larger or more broadly-based companies. A Fund’s investment in MLPs also subjects the Fund to the risks associated with the specific industry or industries in which the MLPs invest. MLPs are generally considered interest-rate sensitive investments, and during periods of interest rate volatility, may not provide attractive returns.
Other Investment Companies
Each Fund may invest in other investment companies, such as open-end funds, closed-end funds, unit investment trusts, and ETFs registered under the 1940 Act, that invest primarily in Fund-eligible investments. Under the 1940 Act, a Fund’s investment in such securities is generally limited to 3% of the total voting stock of any one investment company; 5% of such Fund’s total assets with respect to any one investment company; and 10% of such Fund’s total assets in the aggregate. A Fund’s investments in other investment companies may include money market mutual funds. Investments in money market funds are not subject to the percentage limitations set forth above.
If a Fund invests in other investment companies, Fund shareholders will bear not only their proportionate share of the Fund’s expenses, but also, indirectly, the similar expenses of the underlying investment companies. Shareholders would also be exposed to the risks associated not only with a Fund, but also with the portfolio investments of the underlying investment companies. Shares of certain closed-end funds may at times be acquired at market prices representing premiums to their net asset values. Shares acquired at a premium to their net asset value may be more likely to subsequently decline in price, resulting in a loss to a Fund and its shareholders.
Real Estate Investment Trust (“
REIT
”) Securities
REITs are publicly traded corporations or trusts that specialize in acquiring, holding, and managing residential, commercial or industrial real estate. A REIT is not taxed at the entity level on income distributed to its shareholders or unitholders if it distributes to shareholders or unitholders at least 90% of its taxable income for each taxable year and complies with regulatory requirements relating to its organization, ownership, assets and income.
REITs generally can be classified as equity REITs, mortgage REITs and hybrid REITs. An equity REIT invests the majority of its assets directly in real property and derives its income primarily from rents and from capital gains on real estate appreciation which are realized through property sales. A mortgage REIT invests the majority of its assets in real estate mortgage loans and services its income primarily from interest payments. A hybrid REIT combines the characteristics of an equity REIT and a mortgage REIT.
Investing in REITs would subject a Fund to risks associated with the real estate industry. The real estate industry has been subject to substantial fluctuations and declines on a local, regional and national basis in the past and may continue to be in the future. Real property values and income from real property may decline due to general and local economic conditions, overbuilding and increased competition, increases in property taxes and operating expenses, changes in zoning laws, casualty or condemnation losses, regulatory limitations on rents, changes in neighborhoods and in demographics, increases in market interest rates, or other factors. Factors such as these may adversely affect companies which own and operate real estate directly, companies which lend to such companies, and companies which service the real estate industry.
A Fund is also subject to risks associated with direct investments in REITs. Equity REITs will be affected by changes in the values of and income from the properties they own, while mortgage REITs may be affected by the credit quality of the mortgage loans they hold. In addition, REITs are dependent on specialized management skills and on their ability to generate cash flow for operating purposes and to make distributions to shareholders or unitholders. REITs may have limited diversification and are subject to risks associated with obtaining financing for real property, as well as to the risk of self-liquidation. REITs also can be adversely affected by their failure to qualify for tax-free pass-through treatment of their
S-21
income under the Code or their failure to maintain an exemption from registration under the 1940 Act. By investing in REITs indirectly through a Fund, a shareholder bears not only a proportionate share of the expenses of the Fund, but also may indirectly bear similar expenses of some of the REITs in which it invests.
Repurchase Agreements
Each Fund may invest in repurchase agreements. Ordinarily, a Fund does not expect its investment in repurchase agreements to exceed 10% of its total assets. However, because each Fund may invest without limit in cash and short-term securities for temporary defensive purposes, there is no limit on each Fund’s ability to invest in repurchase agreements. A repurchase agreement involves the purchase by a Fund of securities with the agreement that after a stated period of time, the original seller will buy back the same securities (“collateral”) at a predetermined price or yield. Repurchase agreements involve certain risks not associated with direct investments in securities. If the original seller defaults on its obligation to repurchase as a result of its bankruptcy or otherwise, the purchasing Fund will seek to sell the collateral, which could involve costs or delays. Although collateral (which may consist of any fixed income security which is an eligible investment for the Fund entering into the repurchase agreement) will at all times be maintained in an amount equal to the repurchase price under the agreement (including accrued interest), a Fund would suffer a loss if the proceeds from the sale of the collateral were less than the agreed-upon repurchase price. The Adviser will monitor the creditworthiness of the firms with which the Funds enter into repurchase agreements.
The Funds’ custodian will hold the securities underlying any repurchase agreement, or the securities will be part of the Federal Reserve/Treasury Book Entry System. The market value of the collateral underlying the repurchase agreement will be determined on each business day. If at any time the market value of the collateral falls below the repurchase price under the repurchase agreement (including any accrued interest), the appropriate Fund will promptly receive additional collateral (so the total collateral is an amount at least equal to the repurchase price plus accrued interest).
Royalty Trusts
Each Fund may invest in publicly-traded royalty trusts. Royalty trusts are income-oriented equity investments that indirectly, through the ownership of trust units, provide investors (called “
unit holders
”) with exposure to energy sector assets such as coal, oil and natural gas. Royalty trusts are structured similarly to REITs. A royalty trust generally acquires an interest in natural resource companies or chemical companies and distributes the income it receives to the investors of the royalty trust. A sustained decline in demand for crude oil, natural gas and refined petroleum products could adversely affect income and royalty trust revenues and cash flows. Factors that could lead to a decrease in market demand include a recession or other adverse economic conditions, an increase in the market price of the underlying commodity, higher taxes or other regulatory actions that increase costs, or a shift in consumer demand for such products. A rising interest rate environment could adversely impact the performance of royalty trusts. Rising interest rates could limit the capital appreciation of royalty trusts because of the increased availability of alternative investments at more competitive yields.
Short-Term Temporary Investments
In an attempt to respond to adverse market, economic, political or other conditions, each Fund may temporarily invest without limit in a variety of short-term instruments such as commercial paper and variable amount master demand notes; U.S. dollar-denominated time and savings deposits (including certificates of deposit); bankers’ acceptances; obligations of the U.S. government or its agencies or instrumentalities; repurchase agreements collateralized by eligible investments of a Fund; securities of other mutual funds that invest primarily in debt obligations with remaining maturities of 13 months or less (which investments also are subject to an advisory fee); and other similar high-quality short-term U.S. dollar-denominated obligations. During such periods, a Fund may not be able to achieve its investment objective.
Each Fund may also invest in Eurodollar certificates of deposit issued by foreign branches of U.S. or foreign banks; Eurodollar time deposits, which are U.S. dollar-denominated deposits in foreign branches of U.S. or foreign banks; and Yankee certificates of deposit, which are U.S. dollar-denominated certificates of deposit issued by U.S. branches of foreign banks and held in the United States. In each instance, the Funds may only invest in bank instruments issued by an institution which has capital, surplus and undivided profits of more than $100 million or the deposits of which are insured by the Bank Insurance Fund or the Savings Association Insurance Fund.
S-22
When-Issued and Delayed Delivery Transactions
Each Fund may purchase securities on a when-issued or delayed delivery basis. When such a transaction is negotiated, the purchase price is fixed at the time the purchase commitment is entered, but delivery of and payment for the securities take place at a later date. A Fund will not accrue income with respect to securities purchased on a when-issued or delayed delivery basis prior to their stated delivery date.
The purchase of securities on a when-issued or delayed delivery basis exposes a Fund to risk because the securities may decrease in value prior to delivery. In addition, a Fund’s purchase of securities on a when-issued or delayed delivery basis while remaining substantially fully invested could increase the amount of the Fund’s total assets that are subject to market risk, resulting in increased sensitivity of net asset value to changes in market prices. A seller’s failure to deliver securities to a Fund could prevent the Fund from realizing a price or yield considered to be advantageous.
When a Fund agrees to purchase securities on a when-issued or delayed delivery basis, the Fund will segregate cash or liquid securities in an amount sufficient to meet the Fund’s purchase commitments. It may be expected that a Fund’s net assets will fluctuate to a greater degree when it sets aside securities to cover such purchase commitments than when it sets aside cash. In addition, because a Fund will set aside cash or liquid securities to satisfy its purchase commitments, its liquidity and the ability of the Sub-Adviser to manage it might be affected in the event its commitments to purchase when-issued or delayed delivery securities ever became significant. Under normal market conditions, however, a Fund’s commitments to purchase when-issued or delayed delivery securities will not exceed 25% of the value of its total assets.
S-23
MANAGEMENT
The management of NIF, including general supervision of the duties performed for the Funds by the Adviser under the Management Agreement, is the responsibility of the Board of Directors. The number of directors of NIF is ten, all of whom are not interested persons (referred to herein as “
independent directors
”). None of the independent directors has ever been a trustee, director or employee of, or consultant to, the Adviser or its affiliates. The names, business addresses and years of birth of the directors and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each director oversees and other directorships they hold are set forth below. Except as noted in the table below, the directors of NIF are directors or trustees, as the case may be, of 148 Nuveen-sponsored registered investment companies (the “
Nuveen Funds
”), which include 68 open-end mutual funds (the “
Nuveen Mutual Funds
”), 67 closed-end funds and 13 exchange-traded funds.
             
Name, Business Address
and Year of Birth
Position(s) Held
with NIF
Term of Office
and Length of
Time Served
with NIF
Principal Occupation(s)
During Past Five Years
Number of
Portfolios
in Fund
Complex
Overseen by
Director
Other
Directorships
Held by
Director
During Past
Five Years
Independent Directors:
 
     
 
   
Jack B. Evans
333 West Wacker Drive
Chicago, IL 60606
1948
Director
Term—Indefinite*
Length of Service—
Since 2011
Chairman (since 2019), formerly, President (1996-2019), The Hall-Perrine Foundation (private philanthropic corporation); Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Public Member, American Board of Orthopaedic Surgery (2015-2020); formerly, Director (1998-2003), Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer (1972-1995), SCI Financial Group, Inc. (regional financial services firm); formerly, Member and President Pro Tem of the Board of Regents for the State of Iowa University System; formerly, Director, The Gazette Company (media and publishing).
148
Director and Chairman (since 2009), United Fire Group, a publicly held company; formerly, Director (2000-2004), Alliant Energy.
     
 
   
William C. Hunter
333 West Wacker Drive
Chicago, IL 60606
1948
Director
Term—Indefinite*
Length of Service—
Since 2011
Dean Emeritus, formerly, Dean (2006-2012), Tippie College of Business, University of Iowa; past Director (2005-2015) and past President (2010-2014) of Beta Gamma Sigma, Inc., The International Business Honor Society; formerly, Director (1997-2007), Credit Research Center at Georgetown University; formerly, Dean and Distinguished Professor of Finance (2003-2006), School of Business at the University of Connecticut; previously, Senior Vice President and Director of Research (1995-2003) at the Federal Reserve Bank of Chicago.
148
Director (since 2009) of Wellmark, Inc.; formerly, Director (2004-2018) of Xerox Corporation.
S-24
           
Name, Business Address
and Year of Birth
Position(s) Held
with NIF
Term of Office
and Length of
Time Served
with NIF
Principal Occupation(s)
During Past Five Years
Number of
Portfolios
in Fund
Complex
Overseen by
Director
Other
Directorships
Held by
Director
During Past
Five Years
     
 
   
Albin F. Moschner
333 West Wacker Drive
Chicago, IL 60606
1952
Director
Term—Indefinite*
Length of Service—
Since 2016
Founder and Chief Executive Officer, Northcroft Partners, LLC (management consulting) (since 2012); previously, held positions at Leap Wireless International, Inc. (consumer wireless services), including Consultant (2011-2012), Chief Operating Officer (2008-2011) and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (telecommunication services) (2000-2003); formerly, President, One Point Services at One Point Communications (telecommunication services) (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (internet technology provider) (1996-1997); formerly, various executive positions (1991-1996) and Chief Executive Officer (1995-1996) of Zenith Electronics Corporation (consumer electronics).
148
Formerly, Chairman (2019) and Director (2012-2019), USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions; formerly, Director, Wintrust Financial Corporation (1996-2016).
     
 
   
John K. Nelson
333 West Wacker Drive
Chicago, IL 60606
1962
Director
Term—Indefinite*
Length of Service—
Since 2013
Member of Board of Directors of Core12 LLC (private firm which develops branding, marketing and communications strategies for clients) (since 2008); served The President's Council of Fordham University (2010-2019) and previously a Director of the Curran Center for Catholic American Studies (2009-2018); formerly, senior external advisor to the Financial Services practice of Deloitte Consulting LLP (2012-2014); former Chair of the Board of Trustees of Marian University (2010-2014 as trustee, 2011-2014 as Chair); formerly Chief Executive Officer of ABN AMRO Bank N.V., North America, and Global Head of the Financial Markets Division (2007-2008), with various executive leadership roles in ABN AMRO Bank N.V. between 1996 and 2007.
148
None
S-25
           
Name, Business Address
and Year of Birth
Position(s) Held
with NIF
Term of Office
and Length of
Time Served
with NIF
Principal Occupation(s)
During Past Five Years
Number of
Portfolios
in Fund
Complex
Overseen by
Director
Other
Directorships
Held by
Director
During Past
Five Years
     
 
   
Judith M. Stockdale
333 West Wacker Drive
Chicago, IL 60606
1947
Director
Term—Indefinite*
Length of Service—
Since 2011
Board Member of the Land Trust Alliance (national public charity addressing natural land and water conservation in the U.S.) (since 2013); formerly, Board Member of the U.S. Endowment for Forestry and Communities (national endowment addressing forest health, sustainable forest production and markets, and economic health of forest-reliant communities in the U.S.) (2013-12/2019); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (private foundation endowed to support both natural land conservation and artistic vitality); prior thereto, Executive Director, Great Lakes Protection Fund (endowment created jointly by seven of the eight Great Lake states’ Governors to take a regional approach to improving the health of the Great Lakes) (1990-1994).
148
None
     
 
   
Carole E. Stone
333 West Wacker Drive
Chicago, IL 60606
1947
Director
Term—Indefinite*
Length of Service—
Since 2011
Former Director, Chicago Board Options Exchange, Inc. (2006-2017) and C2 Options Exchange, Incorporated (2009-2017); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010).
148
Formerly, Director (2010-2020), Cboe Global Markets, Inc. (formerly named CBOE Holdings, Inc.).
     
 
   
Matthew Thornton III
333 West Wacker Drive
Chicago, IL 60606
1958
Director
Term—Indefinite*
Length of Service—
Since 2020
Formerly, Executive Vice President and Chief Operating Officer (2018-2019), FedEx Freight Corporation, a subsidiary of FedEx Corporation (“
FedEx
”) (provider of transportation, e-commerce and business services through its portfolio of companies); formerly, Senior Vice President, U.S. Operations (2006-2018), Federal Express Corporation, a subsidiary of FedEx; formerly, Member of the Board of Directors (2012-2018), Safe Kids Worldwide
®
(a non-profit organization dedicated to preventing childhood injuries).
148
Member of the Board of Directors (since 2014), The Sherwin-Williams Company (develops, manufactures, distributes and sells paints, coatings and related products); Member of the Board of Directors (since 2020), Crown Castle International (provider of communications infrastructure).
S-26
           
Name, Business Address
and Year of Birth
Position(s) Held
with NIF
Term of Office
and Length of
Time Served
with NIF
Principal Occupation(s)
During Past Five Years
Number of
Portfolios
in Fund
Complex
Overseen by
Director
Other
Directorships
Held by
Director
During Past
Five Years
     
 
   
Terence J. Toth
333 West Wacker Drive
Chicago, IL 60606
1959
Chair of
the Board and Director
Term—Indefinite*
Length of Service—
Since 2011
Formerly, Co-Founding Partner, Promus Capital (investment advisory firm) (2008-2017); Director, Quality Control Corporation (manufacturing) (since 2012); formerly, Director, Fulcrum IT Service LLC (information technology services firm to government entities) (2010-2019); formerly, Director, LogicMark LLC (health services) (2012-2016); formerly, Director, Legal & General Investment Management America, Inc. (asset management) (2008-2013); formerly, CEO and President, Northern Trust Global Investments (financial services) (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (financial services) (since 1994); Member, Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (philanthropy) (since 2012) and is Chair of its Investment Committee; formerly, Member, Chicago Fellowship Board (philanthropy) (2005-2016); formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004).
148
None
     
 
   
Margaret L. Wolff
333 West Wacker Drive
Chicago, IL 60606
1955
Director
Term—Indefinite*
Length of Service—
Since 2016
Formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (legal services) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College.
148
Formerly, Member of the Board of Directors (2013-2017) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.).
S-27
           
Name, Business Address
and Year of Birth
Position(s) Held
with NIF
Term of Office
and Length of
Time Served
with NIF
Principal Occupation(s)
During Past Five Years
Number of
Portfolios
in Fund
Complex
Overseen by
Director
Other
Directorships
Held by
Director
During Past
Five Years
     
 
   
Robert L. Young
333 West Wacker Drive
Chicago, IL 60606
1963
Director
Term—Indefinite*
Length of Service—
Since 2017
Formerly, Chief Operating Officer and Director, J.P. Morgan Investment Management Inc. (financial services) (2010-2016); formerly, President and Principal Executive Officer (2013-2016), and Senior Vice President and Chief Operating Officer (2005-2010), of J.P. Morgan Funds; formerly, Director and various officer positions for J.P. Morgan Investment Management Inc. (formerly, JPMorgan Funds Management, Inc. and formerly, One Group Administrative Services) and JPMorgan Distribution Services, Inc. (financial services) (formerly, One Group Dealer Services, Inc.) (1999-2017).
148
None
*
 
Each director serves an indefinite term until his or her successor is elected.
S-28
       
Name, Business Address
and Year of Birth
Position(s) Held
with NIF
Term of Office and Length of Time
Served with NIF
Principal Occupation(s) During Past Five Years
Officers of NIF:
 
       
Mark J. Czarniecki
901 Marquette Avenue
Minneapolis, MN 55402
1979
Vice President and Secretary
Term—Until
August 2021
Length of Service—
Since 2013
Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2016) and Nuveen Fund Advisors, LLC (since 2017); Vice President, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC (since 2018); Vice President and Associate General Counsel of Nuveen, LLC (since 2013).
       
Diana R. Gonzalez
333 West Wacker Drive
Chicago, IL 60606
1978
Vice President and Assistant Secretary
Term—Until
August 2021
Length of Service—
Since 2017
Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2017); Vice President and Associate General Counsel of Nuveen, LLC (since 2017); Associate General Counsel of Jackson National Asset Management (2012-2017).
       
Nathaniel T. Jones
333 West Wacker Drive
Chicago, IL 60606
1979
Vice President and Treasurer
Term—Until
August 2021
Length of Service—
Since 2016
Managing Director (since 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011-2016) of Nuveen, LLC; Managing Director (since 2015) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst.
       
Tina M. Lazar
333 West Wacker Drive
Chicago, IL 60606
1961
Vice President
Term—Until
August 2021
Length of Service—
Since 2011
Managing Director (since 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC.
       
Brian J. Lockhart
333 West Wacker Drive
Chicago, IL 60606
1974
Vice President
Term—Until
August 2021
Length of Service—
Since 2019
Managing Director (since 2019) of Nuveen Fund Advisors, LLC; Managing Director (since 2017), formerly, Vice President (2010-2017) of Nuveen, LLC; Head of Investment Oversight (since 2017), formerly, Team Leader of Manager Oversight (2015-2017); Chartered Financial Analyst and Certified Financial Risk Manager.
       
Jacques M. Longerstaey
8500 Andrew Carnegie Blvd.
Charlotte, NC 28262
1963
Vice President
Term—Until
August 2021
Length of Service—
Since 2019
Senior Managing Director, Chief Risk Officer, Nuveen, LLC (since 2019); Senior Managing Director (since 2019) of Nuveen Fund Advisors, LLC; formerly, Chief Investment and Model Risk Officer, Wealth & Investment Management Division, Wells Fargo Bank (NA) (2013–2019).
       
Kevin J. McCarthy
333 West Wacker Drive
Chicago, IL 60606
1966
Vice President and Assistant Secretary
Term—Until
August 2021
Length of Service—
Since 2011
Senior Managing Director (since 2017) and Secretary and General Counsel (since 2016) of Nuveen Investments, Inc., formerly, Executive Vice President (2016-2017), Managing Director and Assistant Secretary (2008-2016); Senior Managing Director (since 2017) and Assistant Secretary (since 2008) of Nuveen Securities, LLC, formerly, Executive Vice President (2016-2017) and Managing Director (2008-2016); Senior Managing Director (since 2017), Secretary (since 2016) of Nuveen Fund Advisors, LLC, formerly, Co-General Counsel (2011-2020), Executive Vice President (2016-2017), Managing Director (2008-2016) and Assistant Secretary (2007-2016); Senior Managing Director (since 2017), Secretary (since 2016) of Nuveen Asset Management, LLC, formerly, Associate General Counsel (2011-2020), Executive Vice President (2016-2017) and Managing Director and Assistant Secretary (2011-2016); Vice President (since 2007) and Secretary (since 2016), formerly, Assistant Secretary, of NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC, and Winslow Capital Management, LLC (since 2010); Senior Managing Director (since 2017) and Secretary (since 2016) of Nuveen Alternative Investments, LLC.
       
Jon Scott Meissner
8500 Andrew Carnegie Blvd.
Charlotte, NC 28262
1973
Vice President and Assistant Secretary
Term—Until
August 2021
Length of Service—
Since 2019
Managing Director of Mutual Fund Tax and Financial Reporting groups at Nuveen, LLC (since 2017); Managing Director (since 2019) of Nuveen Fund Advisors, LLC; Senior Director of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC (since 2016); Senior Director (since 2015) Mutual Fund Taxation to the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the CREF Accounts; has held various positions with TIAA since 2004.
S-29
       
Name, Business Address
and Year of Birth
Position(s) Held
with NIF
Term of Office and Length of Time
Served with NIF
Principal Occupation(s) During Past Five Years
       
Deann D. Morgan
730 Third Avenue
New York, NY 10017
1969
Vice President
Term—Until
August 2021
Length of Service—
Since 2020
President of Nuveen Fund Advisors, LLC (since 2020); Executive Vice President, Global Head of Product at Nuveen, LLC (since November 2019); Co-Chief Executive Officer of Nuveen Securities, LLC (since March 2020); Managing Member of MDR Collaboratory LLC (since 2018); Managing Director, Head of Wealth Management Product Structuring & COO Multi Asset Investing, The Blackstone Group (2013-2017).
       
Christopher M. Rohrbacher
333 West Wacker Drive
Chicago, IL 60606
1971
Vice President and Assistant Secretary
Term—Until
August 2021
Length of Service—
Since 2011
Managing Director (since 2017), General Counsel (since 2020) and Assistant Secretary (since 2016), formerly, Senior Vice President (2016-2017), of Nuveen Fund Advisors, LLC; Managing Director (since 2017) of Nuveen Securities, LLC; Managing Director, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC (since 2020); Managing Director (since 2017), and Associate General Counsel (since 2016), formerly, Senior Vice President (2012-2017) and Assistant General Counsel (2008-2016) of Nuveen, LLC.
       
William A. Siffermann
333 West Wacker Drive
Chicago, IL 60606
1975
Vice President
Term—Until
August 2021
Length of Service—
Since 2017
Managing Director (since 2017), formerly Senior Vice President (2016-2017) and Vice President (2011-2016) of Nuveen, LLC.
       
Christopher E. Stickrod

333 West Wacker Drive
Chicago, IL 60606
1976
Chief Administrative Officer
Term—Until
August 2021
Length of Service—
Since 2020
Senior Managing Director (since 2017) and Head of Advisory Product (since 2020), formerly, Managing Director (2016-2017) and Senior Vice President (2013-2016) of Nuveen, LLC; Senior Managing Director of Nuveen Securities, LLC (since 2018) and of Nuveen Fund Advisors, LLC (since 2019).
       
E. Scott Wickerham
8500 Andrew Carnegie Blvd.
Charlotte, NC 28262
1973
Vice President and Controller
Term—Until
August 2021
Length of Service—
Since 2019
Senior Managing Director, Head of Fund Administration at Nuveen, LLC (since 2019), formerly, Managing Director; Senior Managing Director (since 2019), of Nuveen Fund Advisors, LLC; Principal Financial Officer, Principal Accounting Officer and Treasurer (since 2017) of the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and Principal Financial Officer, Principal Accounting Officer (since 2020) and Treasurer (since 2017) to the CREF Accounts; Senior Director, TIAA-CREF Fund Administration (2014-2015); has held various positions with TIAA since 2006.
       
Mark L. Winget
333 West Wacker Drive
Chicago, IL 60606
1968
Vice President and Assistant Secretary
Term—Until
August 2021
Length of Service—
Since 2011
Vice President and Assistant Secretary of Nuveen Securities, LLC (since 2008); Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2019); Vice President, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC (since 2020); Vice President (since 2010) and Associate General Counsel (since 2019), formerly, Assistant General Counsel (2008-2016) of Nuveen, LLC.
       
Gifford R. Zimmerman
333 West Wacker Drive
Chicago, IL 60606
1956
Vice President and Chief Compliance Officer
Term—Until
August 2021
Length of Service—
Since 2011
Formerly, Managing Director (2004-2020) and Assistant Secretary (1994-2020) of Nuveen Investments, Inc.; formerly, Managing Director (2002-2020) and Assistant Secretary (2002-2020) of Nuveen Securities, LLC; formerly, Managing Director (2002-2020), Assistant Secretary (1997-2020) and Co-General Counsel (2011-2020) of Nuveen Fund Advisors, LLC; formerly, Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (2011-2020); formerly, Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (2002-2020), Santa Barbara Asset Management, LLC (2006-2020) and Winslow Capital Management, LLC (2010-2020); Chartered Financial Analyst.
Board Leadership Structure and Risk Oversight
The Board of Directors or the Board of Trustees (as the case may be, each is referred to hereafter as the “
Board
” or “
Board of Directors
” and the directors or trustees of the Nuveen Funds, as applicable, are
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each referred to herein as “
directors
”) oversees the operations and management of the Nuveen Funds, including the duties performed for the Nuveen Funds by the Adviser. The Board has adopted a unitary board structure. A unitary board consists of one group of directors who serve on the board of every fund in the Nuveen Fund complex. In adopting a unitary board structure, the directors seek to provide effective governance through establishing a board, the overall composition of which will, as a body, possess the appropriate skills, diversity (including, among other things, gender, race and ethnicity), independence and experience to oversee the Nuveen Funds’ business. With this overall framework in mind, when the Board, through its Nominating and Governance Committee discussed below, seeks nominees for the Board, the directors consider, not only the candidate’s particular background, skills and experience, among other things, but also whether such background, skills and experience enhance the Board’s diversity and at the same time complement the Board given its current composition and the mix of skills and experiences of the incumbent directors. The Nominating and Governance Committee believes that the Board generally benefits from diversity of background (including, among other things, gender, race and ethnicity), skills, experience and views among its members, and considers this a factor in evaluating the composition of the Board, but has not adopted any specific policy on diversity or any particular definition of diversity.
The Board believes the unitary board structure enhances good and effective governance, particularly given the nature of the structure of the investment company complex. Funds in the same complex generally are served by the same service providers and personnel and are governed by the same regulatory scheme which raises common issues that must be addressed by the directors across the fund complex (such as compliance, valuation, liquidity, brokerage, trade allocation or risk management). The Board believes it is more efficient to have a single board review and oversee common policies and procedures which increases the Board’s knowledge and expertise with respect to the many aspects of fund operations that are complex-wide in nature. The unitary structure also enhances the Board’s influence and oversight over the investment adviser and other service providers.
In an effort to enhance the independence of the Board, the Board also has a Chair that is an independent director. The Board recognizes that a chair can perform an important role in setting the agenda for the Board, establishing the boardroom culture, establishing a point person on behalf of the Board for fund management, and reinforcing the Board’s focus on the long-term interests of shareholders. The Board recognizes that a chair may be able to better perform these functions without any conflicts of interests arising from a position with fund management. Accordingly, the directors have elected Mr. Toth to serve as the independent Chair of the Board. Specific responsibilities of the Chair include: (i) presiding at all meetings of the Board and of the shareholders; (ii) seeing that all orders and resolutions of the directors are carried into effect; and (iii) maintaining records of and, whenever necessary, certifying all proceedings of the directors and the shareholders.
Although the Board has direct responsibility over various matters (such as advisory contracts, underwriting contracts and fund performance), the Board also exercises certain of its oversight responsibilities through several committees that it has established and which report back to the full Board. The Board believes that a committee structure is an effective means to permit directors to focus on particular operations or issues affecting the Nuveen Funds, including risk oversight. More specifically, with respect to risk oversight, the Board has delegated matters relating to valuation and compliance to certain committees (as summarized below) as well as certain aspects of investment risk. In addition, the Board believes that the periodic rotation of directors among the different committees allows the directors to gain additional and different perspectives of a Nuveen Fund’s operations. The Board has established six standing committees: the Executive Committee, the Dividend Committee, the Audit Committee, the Compliance, Risk Management and Regulatory Oversight Committee, the Nominating and Governance Committee and the Open-End Funds Committee. The Board may also from time to time create ad hoc committees to focus on particular issues as the need arises. The membership and functions of the standing committees are summarized below.
The Executive Committee, which meets between regular meetings of the Board, is authorized to exercise all of the powers of the Board. The members of the Executive Committee are Mr. Toth, Chair, Mr. Moschner and Ms. Wolff. During the fiscal year ended October 31, 2020, the Executive Committee did not meet.
The Audit Committee assists the Board in the oversight and monitoring of the accounting and reporting policies, processes and practices of the Nuveen Funds, and the audits of the financial statements of the Nuveen Funds; the quality and integrity of the financial statements of the Nuveen Funds; the Nuveen Funds’ compliance with legal and regulatory requirements relating to the Nuveen Funds’ financial statements; the independent auditors’ qualifications, performance and independence;
S-31
and the pricing procedures of the Nuveen Funds and the Adviser’s internal valuation group. It is the responsibility of the Audit Committee to select, evaluate and replace any independent auditors (subject only to Board and, if applicable, shareholder ratification) and to determine their compensation. The Audit Committee is also responsible for, among other things, overseeing the valuation of securities comprising the Nuveen Funds’ portfolios. Subject to the Board’s general supervision of such actions, the Audit Committee addresses any valuation issues, oversees the Nuveen Funds’ pricing procedures and actions taken by the Adviser’s internal valuation group which provides regular reports to the committee, reviews any issues relating to the valuation of the Nuveen Funds’ securities brought to its attention and considers the risks to the Nuveen Funds in assessing the possible resolutions to these matters. The Audit Committee may also consider any financial risk exposures for the Nuveen Funds in conjunction with performing its functions.
To fulfill its oversight duties, the Audit Committee receives annual and semi-annual reports and has regular meetings with the external auditors for the Nuveen Funds and the Adviser’s internal audit group. The Audit Committee also may review in a general manner the processes the Board or other Board committees have in place with respect to risk assessment and risk management as well as compliance with legal and regulatory matters relating to the Nuveen Funds’ financial statements. The committee operates under a written charter adopted and approved by the Board. Members of the Audit Committee shall be independent (as set forth in the charter) and free of any relationship that, in the opinion of the directors, would interfere with their exercise of independent judgment as an Audit Committee member. The members of the Audit Committee are Ms. Stone, Chair, Mr. Evans, Dr. Hunter, Mr. Moschner, Mr. Nelson and Ms. Stockdale, each of whom is an independent director of the Nuveen Funds. During the fiscal year ended October 31, 2020, the Audit Committee met four times.
The Nominating and Governance Committee is responsible for seeking, identifying and recommending to the Board qualified candidates for election or appointment to the Board. In addition, the Nominating and Governance Committee oversees matters of corporate governance, including the evaluation of Board performance and processes, the assignment and rotation of committee members, and the establishment of corporate governance guidelines and procedures, to the extent necessary or desirable, and matters related thereto. Although the unitary and committee structure has been developed over the years and the Nominating and Governance Committee believes the structure has provided efficient and effective governance, the committee recognizes that as demands on the Board evolve over time (such as through an increase in the number of funds overseen or an increase in the complexity of the issues raised), the committee must continue to evaluate the Board and committee structures and their processes and modify the foregoing as may be necessary or appropriate to continue to provide effective governance. Accordingly, the Nominating and Governance Committee has a separate meeting each year to, among other things, review the Board and committee structures, their performance and functions, and recommend any modifications thereto or alternative structures or processes that would enhance the Board’s governance of the Nuveen Funds.
In addition, the Nominating and Governance Committee, among other things, makes recommendations concerning the continuing education of directors; monitors performance of legal counsel and other service providers; establishes and monitors a process by which security holders are able to communicate in writing with members of the Board; and periodically reviews and makes recommendations about any appropriate changes to director compensation. In the event of a vacancy on the Board, the Nominating and Governance Committee receives suggestions from various sources, including shareholders, as to suitable candidates. Suggestions should be sent in writing to William Siffermann, Manager of Fund Board Relations, Nuveen, LLC, 333 West Wacker Drive, Chicago, IL 60606. The Nominating and Governance Committee sets appropriate standards and requirements for nominations for new directors and reserves the right to interview any and all candidates and to make the final selection of any new directors. In considering a candidate’s qualifications, each candidate must meet certain basic requirements, including relevant skills and experience, time availability (including the time requirements for due diligence meetings to sub-advisers and service providers) and, if qualifying as an independent director candidate, independence from the Adviser, the Sub-Adviser, the Distributor and other service providers, including any affiliates of these entities. These skill and experience requirements may vary depending on the current composition of the Board, since the goal is to ensure an appropriate range of skills, diversity and experience, in the aggregate. Accordingly, the particular factors considered and weight given to these factors will depend on the composition of the Board and the skills and backgrounds of the incumbent directors at the time of consideration of the nominees. All candidates, however, must meet high expectations of personal integrity, independence, governance experience and professional competence. All candidates must be willing to be critical within the Board and with
S-32
management and yet maintain a collegial and collaborative manner toward other Board members. The committee operates under a written charter adopted and approved by the Board. This committee is composed of the independent directors of the Nuveen Funds. Accordingly, the members of the Nominating and Governance Committee are Mr. Toth, Chair, Mr. Evans, Dr. Hunter, Mr. Moschner, Mr. Nelson, Ms. Stockdale, Ms. Stone, Mr. Thornton, Ms. Wolff and Mr. Young. During the fiscal year ended October 31, 2020, the Nominating and Governance Committee met five times.
The Dividend Committee is authorized to declare distributions on the Nuveen Funds’ shares, including, but not limited to, regular and special dividends, capital gains and ordinary income distributions. The members of the Dividend Committee are Mr. Young, Chair, Dr. Hunter, Mr. Moschner and Ms. Wolff. During the fiscal year ended October 31, 2020, the Dividend Committee met five times.
The Compliance, Risk Management and Regulatory Oversight Committee (the “
Compliance Committee
”) is responsible for the oversight of compliance issues, risk management and other regulatory matters affecting the Nuveen Funds that are not otherwise the jurisdiction of the other committees. The Board has adopted and periodically reviews policies and procedures designed to address the Nuveen Funds’ compliance and risk matters. As part of its duties, the Compliance Committee reviews the policies and procedures relating to compliance matters and recommends modifications thereto as necessary or appropriate to the full Board; develops new policies and procedures as new regulatory matters affecting the Nuveen Funds arise from time to time; evaluates or considers any comments or reports from examinations from regulatory authorities and responses thereto; and performs any special reviews, investigations or other oversight responsibilities relating to risk management, compliance and/or regulatory matters as requested by the Board.
In addition, the Compliance Committee is responsible for risk oversight, including, but not limited to, the oversight of risks related to investments and operations. Such risks include, among other things, exposures to particular issuers, market sectors, or types of securities; risks related to product structure elements, such as leverage; and techniques that may be used to address those risks, such as hedging and swaps. In assessing issues brought to the committee’s attention or in reviewing a particular policy, procedure, investment technique or strategy, the Compliance Committee evaluates the risks to the Nuveen Funds in adopting a particular approach compared to the anticipated benefits to the Nuveen Funds and their shareholders. In fulfilling its obligations, the Compliance Committee meets on a quarterly basis, and at least once a year in person. The Compliance Committee receives written and oral reports from the Nuveen Funds’ Chief Compliance Officer (“
CCO
”) and meets privately with the CCO at each of its quarterly meetings. The CCO also provides an annual report to the full Board regarding the operations of the Nuveen Funds’ and other service providers’ compliance programs as well as any recommendations for modifications thereto. The Compliance Committee also receives reports from the Adviser’s investment services group regarding various investment risks. Notwithstanding the foregoing, the full Board also participates in discussions with management regarding certain matters relating to investment risk, such as the use of leverage and hedging. The investment services group therefore also reports to the full Board at its quarterly meetings regarding, among other things, fund performance and the various drivers of such performance. Accordingly, the Board directly and/or in conjunction with the Compliance Committee oversees matters relating to investment risks. Matters not addressed at the committee level are addressed directly by the full Board. The committee operates under a written charter adopted and approved by the Board. The members of the Compliance Committee are Ms. Wolff, Chair, Mr. Nelson, Mr. Thornton, Mr. Toth and Mr. Young. During the fiscal year ended October 31, 2020, the Compliance Committee met five times.
The Open-End Funds Committee is responsible for assisting the Board in the oversight and monitoring of the Nuveen Funds that are registered as open-end management investment companies (“
Open-End Funds
”). The committee may review and evaluate matters related to the formation and the initial presentation to the Board of any new Open-End Fund and may review and evaluate any matters relating to any existing Open-End Fund. The committee operates under a written charter adopted and approved by the Board. The members of the Open-End Funds Committee are Mr. Moschner, Chair, Mr. Nelson, Ms. Stockdale, Ms. Stone, Mr. Thornton and Mr. Toth. During the fiscal year ended October 31, 2020, the Open-End Funds Committee met five times.
Board Diversification and Director Qualifications
In determining that a particular director was qualified to serve on the Board, the Board has considered each director’s background, skills, experience and other attributes in light of the composition of the Board with no particular factor controlling. The Board believes that directors need to have the ability to critically review, evaluate, question and discuss information provided to them, and to interact effectively with Fund
S-33
management, service providers and counsel, in order to exercise effective business judgment in the performance of their duties, and the Board believes each director satisfies this standard. An effective director may achieve this ability through his or her educational background; business, professional training or practice; public service or academic positions; experience from service as a board member or executive of investment funds, public companies or significant private or not-for-profit entities or other organizations; and/or other life experiences. Accordingly, set forth below is a summary of the experiences, qualifications, attributes, and skills that led to the conclusion, as of the date of this document, that each director should continue to serve in that capacity. References to the experiences, qualifications, attributes and skills of directors are pursuant to requirements of the SEC, do not constitute holding out of the Board or any director as having any special expertise or experience and shall not impose any greater responsibility or liability on any such person or on the Board by reason thereof.
Jack B. Evans
Mr. Evans has served as Chairman (since 2019) and President (1996-2019) of the Hall-Perrine Foundation, a private philanthropic corporation. Mr. Evans was formerly President and Chief Operating Officer (1972-1995) of the SCI Financial Group, Inc., a regional financial services firm headquartered in Cedar Rapids, Iowa. He was a member of the Board of the Federal Reserve Bank of Chicago from 1998 to 2003 as well as a Director of Alliant Energy from 2000 to 2004 and President Pro Tem of the Board of Regents for the State of Iowa University System. Mr. Evans is Chairman of the Board (since 2009) of United Fire Group, a Life Trustee of Coe College and formerly served as a Director and Public Member of the American Board of Orthopaedic Surgery from 2015 to 2020 and served on the Board of The Gazette Company. He has a Bachelor of Arts from Coe College and an M.B.A. from the University of Iowa.
William C. Hunter
Dr. Hunter became Dean Emeritus of the Henry B. Tippie College of Business at the University of Iowa in 2012, after having served as Dean of the College since July 2006. He had been Dean and Distinguished Professor of Finance at the University of Connecticut School of Business from 2003 to 2006. From 1995 to 2003, he was the Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago. He has held faculty positions at Emory University, Atlanta University, the University of Georgia and Northwestern University. He has consulted with numerous foreign central banks and official agencies in Europe, Asia, Central America and South America. He has been a Director of Wellmark, Inc. since 2009. He is a past Director (2005-2015) and a past President (2010-2014) of Beta Gamma Sigma, Inc., The International Business Honor Society and a past Director (2004-2018) of the Xerox Corporation. Dr. Hunter received his PhD (1978) and MBA (1970) from Northwestern University and his BS from Hampton University (1970).
Albin F. Moschner
Mr. Moschner is a consultant in the wireless industry and, in July 2012, founded Northcroft Partners, LLC, a management consulting firm that provides operational, management and governance solutions. Prior to founding Northcroft Partners, LLC, Mr. Moschner held various positions at Leap Wireless International, Inc., a provider of wireless services, where he was a consultant from February 2011 to July 2012, Chief Operating Officer from July 2008 to February 2011, and Chief Marketing Officer from August 2004 to June 2008. Before he joined Leap Wireless International, Inc., Mr. Moschner was President of the Verizon Card Services division of Verizon Communications, Inc. from 2000 to 2003, and President of One Point Services at One Point Communications from 1999 to 2000. Mr. Moschner also served at Zenith Electronics Corporation as Director, President and Chief Executive Officer from 1995 to 1996, and as Director, President and Chief Operating Officer from 1994 to 1995. Mr. Moschner was Chairman of the Board (2019) and a member of the Board of Directors (2012-2019) of USA Technologies, Inc. and, from 1996 until 2016, he was a member of the Board of Directors of Wintrust Financial Corporation. In addition, he is emeritus (since 2018) of the Advisory Boards of the Kellogg School of Management (1995-2018) and the Archdiocese of Chicago Financial Council (2012-2018). Mr. Moschner received a Bachelor of Engineering degree in Electrical Engineering from The City College of New York in 1974 and a Master of Science degree in Electrical Engineering from Syracuse University in 1979.
John K. Nelson
Mr. Nelson is on the Board of Directors of Core12, LLC (since 2008), a private firm that develops branding, marketing, and communications strategies for clients. Mr. Nelson has extensive experience in global banking and markets, having served in several senior executive positions with ABN AMRO Holdings N.V. and its affiliated entities and predecessors, including LaSalle Bank Corporation from 1996 to 2008, ultimately serving as Chief Executive Officer of ABN AMRO N.V. North America. During his
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tenure at the bank, he also served as Global Head of its Financial Markets Division, which encompassed the bank's Currency, Commodity, Fixed Income, Emerging Markets, and Derivatives businesses. He was a member of the Foreign Exchange Committee of the Federal Reserve Bank of the United States and during his tenure with ABN AMRO served as the bank's representative on various committees of The Bank of Canada, European Central Bank, and The Bank of England. Mr. Nelson previously served as a senior, external advisor to the financial services practice of Deloitte Consulting LLP (2012-2014). At Fordham University, he served as a director of The President's Council (2010- 2019) and previously served as a director of The Curran Center for Catholic American Studies (2009-2018). He served as a trustee and Chairman of The Board of Trustees of Marian University (2011-2013). Mr. Nelson is a graduate of Fordham University and holds a BA in Economics (1984) and an MBA in Finance (1991).
Judith M. Stockdale
Ms. Stockdale retired in 2012 as Executive Director of the Gaylord and Dorothy Donnelley Foundation, a private foundation working in land conservation and artistic vitality in the Chicago region and the Low Country of South Carolina. She is currently a board member of the Land Trust Alliance (since 2013). Her previous positions include Executive Director of the Great Lakes Protection Fund, Executive Director of Openlands, and Senior Staff Associate at the Chicago Community Trust. She has served on the Advisory Council of the National Zoological Park, the Governor’s Science Advisory Council (Illinois), and the Nancy Ryerson Ranney Leadership Grants Program. She has served on the Boards of Brushwood Center, Forefront f/k/a Donors Forum and the U.S. Endowment for Forestry and Communities. Ms. Stockdale, a native of the United Kingdom, has a Bachelor of Science degree in geography from the University of Durham (UK) and a Master of Forest Science degree from Yale University.
Carole E. Stone
Ms. Stone recently retired from the Board of Directors of the Cboe Global Markets, Inc. (formerly, CBOE Holdings, Inc.), having served from 2010-2020. She previously served on the Boards of the Chicago Board Options Exchange and C2 Options Exchange, Incorporated. Ms. Stone retired from the New York State Division of the Budget in 2004, having served as its Director for nearly five years and as Deputy Director from 1995 through 1999. She has also served as the Chair of the New York Racing Association Oversight Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. Ms. Stone has a Bachelor of Arts in Business Administration from Skidmore College.
Matthew Thornton III
Mr. Thornton has over 40 years of broad leadership and operating experience from his career with FedEx Corporation (“
FedEx
”), which, through its portfolio of companies, provides transportation, e-commerce and business services. In November 2019, Mr. Thornton retired as Executive Vice President and Chief Operating Officer of FedEx Freight Corporation (FedEx Freight), a subsidiary of FedEx, where, from May 2018 until his retirement, he had been responsible for day-to-day operations, strategic guidance, modernization of freight operations and delivering innovative customer solutions. From September 2006 to May 2018, Mr. Thornton served as Senior Vice President, U.S. Operations at Federal Express Corporation (FedEx Express), a subsidiary of FedEx. Prior to September 2006, Mr. Thornton held a range of positions of increasing responsibility with FedEx, including various management positions. In addition, Mr. Thornton currently (since 2014) serves on the Board of Directors of The Sherwin-Williams Company, where he is a member of the Audit Committee and the Nominating and Corporate Governance Committee, and the Board of Directors of Crown Castle International (since 2020), where he is a member of the Strategy Committee and the Compensation Committee. Formerly (2012-2018), he was a member of the Board of Directors of Safe Kids Worldwide
®
, a non-profit organization dedicated to the prevention of childhood injuries. Mr. Thornton is a member (since 2014) of the Executive Leadership Council (ELC), the nation’s premier organization of global black senior executives. He is also a member of the National Association of Corporate Directors (NACD). Mr. Thornton has been recognized by Black Enterprise on its 2017 list of the Most Powerful Executives in Corporate America and by Ebony on its 2016 Power 100 list of the world’s most influential and inspiring African Americans. Mr. Thornton received a B.B.A. degree from the University of Memphis in 1980 and an M.B.A. from the University of Tennessee in 2001.
Terence J. Toth
Mr. Toth, the Nuveen Funds’ Independent Chair, was a Co-Founding Partner of Promus Capital (2008-2017). From 2010 to 2019, he was a Director of Fulcrum IT Service LLC and from 2012 to 2016, he was a Director of LogicMark LLC. From 2008 to 2013, he was a Director of Legal & General Investment
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Management America, Inc. From 2004 to 2007, he was Chief Executive Officer and President of Northern Trust Global Investments, and Executive Vice President of Quantitative Management & Securities Lending from 2000 to 2004. He also formerly served on the Board of the Northern Trust Mutual Funds. He joined Northern Trust in 1994 after serving as Managing Director and Head of Global Securities Lending at Bankers Trust (1986 to 1994) and Head of Government Trading and Cash Collateral Investment at Northern Trust from 1982 to 1986. He currently serves on the Boards of Quality Control Corporation (since 2012) and Catalyst Schools of Chicago (since 2008). He is on the Mather Foundation Board (since 2012) and is the Chair of its Investment Committee. Mr. Toth graduated with a Bachelor of Science degree from the University of Illinois, and received his MBA from New York University. In 2005, he graduated from the CEO Perspectives Program at Northwestern University.
Margaret L. Wolff
Ms. Wolff retired from Skadden, Arps, Slate, Meagher & Flom LLP in 2014 after more than 30 years of providing client service in the Mergers & Acquisitions Group. During her legal career, Ms. Wolff devoted significant time to advising boards and senior management on U.S. and international corporate, securities, regulatory and strategic matters, including governance, shareholder, fiduciary, operational and management issues. From 2013 to 2017, she was a Board member of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each of which is a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.). Ms. Wolff has been a trustee of New York-Presbyterian Hospital since 2005 and, since 2004, she has served as a trustee of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults) where she currently is the Chair. From 2005 to 2015, she was a trustee of Mt. Holyoke College and served as Vice Chair of the Board from 2011 to 2015. Ms. Wolff received her Bachelor of Arts from Mt. Holyoke College and her Juris Doctor from Case Western Reserve University School of Law.
Robert L. Young
Mr. Young has more than 30 years of experience in the investment management industry. From 1997 to 2017, he held various positions with J.P. Morgan Investment Management Inc. (“
J.P. Morgan Investment
”) and its affiliates (collectively, “
J.P. Morgan
”). Most recently, he served as Chief Operating Officer and Director of J.P. Morgan Investment (from 2010 to 2016) and as President and Principal Executive Officer of the J.P. Morgan Funds (from 2013 to 2016). As Chief Operating Officer of J.P. Morgan Investment, Mr. Young led service, administration and business platform support activities for J.P. Morgan’s domestic retail mutual fund and institutional commingled and separate account businesses, and co-led these activities for J.P. Morgan’s global retail and institutional investment management businesses. As President of the J.P. Morgan Funds, Mr. Young interacted with various service providers to these funds, facilitated the relationship between such funds and their boards, and was directly involved in establishing board agendas, addressing regulatory matters, and establishing policies and procedures. Before joining J.P. Morgan, Mr. Young, a former Certified Public Accountant (CPA), was a Senior Manager (Audit) with Deloitte & Touche LLP (formerly, Touche Ross LLP), where he was employed from 1985 to 1996. During his tenure there, he actively participated in creating, and ultimately led, the firm’s midwestern mutual fund practice. Mr. Young holds a Bachelor of Business Administration degree in Accounting from the University of Dayton and, from 2008 to 2011, he served on the Investment Committee of its Board of Trustees.
Board Compensation
The following table shows, for each independent director, (1) the aggregate compensation (including deferred amounts) paid by the Funds for the fiscal year ended October 31, 2020, (2) the amount of total compensation paid by the Funds that has been deferred, and (3) the total compensation (including deferred amounts) paid to each director by the Nuveen Funds during the fiscal year ended October 31, 2020. Pursuant to the Board’s deferred compensation plan, a portion of the independent directors’ compensation may be deferred and treated as though an equivalent dollar amount has been invested in shares of one or more eligible Nuveen Funds. The amount of total compensation that has been deferred provided below represents the total deferred fees (including the return from the assumed investment in the eligible Nuveen Funds) payable from the Funds.
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Name of Director
   
Aggregate
Compensation
From Funds
   
Amount of Total
Compensation that
Has Been Deferred
   
Total Compensation
From Nuveen Funds
Paid to Director
 
Jack B. Evans
 
$
10,357
 
$
656
 
$
389,631
 
William C. Hunter
 
 
10,247
   
—
   
396,750
 
Albin F. Moschner
 
 
9,868
   
—
   
380,050
 
John K. Nelson
 
 
11,102
   
—
   
417,500
 
Judith M. Stockdale
 
 
10,303
   
2,371
   
389,189
 
Carole E. Stone
 
 
10,452
   
3,244
   
393,592
 
Matthew Thornton III
1
 
 
—
   
—
   
—
 
Terence J. Toth
 
 
12,559
   
—
   
467,300
 
Margaret L. Wolff
 
 
9,629
   
2,839
   
374,213
 
Robert L. Young
 
 
10,272
   
9,640
   
398,104
 
1
Mr. Thornton was elected to the Board of Directors of the Nuveen Funds effective November 16, 2020.
Prior to January 1, 2020, independent directors received a $190,000 annual retainer plus (a) a fee of $6,500 per day for attendance in person or by telephone at regularly scheduled meetings of the Board; (b) a fee of $3,000 per meeting for attendance in person or by telephone at special, non-regularly scheduled Board meetings where in-person attendance was required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance was not required; (c) a fee of $2,500 per meeting for attendance in person or by telephone at Audit Committee meetings where in-person attendance was required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance was not required; (d) a fee of $2,500 per meeting for attendance in person or by telephone at Compliance, Risk Management and Regulatory Oversight Committee meetings where in-person attendance was required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance was not required; (e) a fee of $1,000 per meeting for attendance in person or by telephone at Dividend Committee meetings; (f) a fee of $500 per meeting for attendance in person or by telephone at all other committee meetings ($1,000 for shareholder meetings) where in-person attendance was required and $250 per meeting for attendance by telephone or in person at such committee meetings (excluding shareholder meetings) where in-person attendance was not required, and $100 per meeting when the Executive Committee acted as pricing committee for IPOs, plus, in each case, expenses incurred in attending such meetings, provided that no fees were received for meetings held on days on which regularly scheduled Board meetings were held; and (g) a fee of $2,500 per meeting for attendance in person or by telephone at Open-End Funds Committee meetings where in-person attendance was required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance was not required; provided that no fees were received for meetings held on days on which regularly scheduled Board meetings were held. In addition to the payments described above, the Chair of the Board received $90,000, and the chairpersons of the Audit Committee, the Dividend Committee, the Compliance, Risk Management and Regulatory Oversight Committee, the Nominating and Governance Committee and the Open-End Funds Committee received $15,000 each as additional retainers. Independent directors also received a fee of $3,000 per day for site visits to entities that provided services to the Nuveen Funds on days on which no Board meeting was held. When ad hoc committees were organized, the Nominating and Governance Committee at the time of formation determined compensation to be paid to the members of such committee; however, in general, such fees were $1,000 per meeting for attendance in person or by telephone at ad hoc committee meetings where in-person attendance was required and $500 per meeting for attendance by telephone or in person at such meetings where in-person attendance was not required. The annual retainer, fees and expenses were allocated among the Nuveen Funds on the basis of relative net assets, although management might have, in its discretion, established a minimum amount to be allocated to each fund.
Effective January 1, 2020, independent directors receive a $195,000 annual retainer, increased to $200,000 as of January 1, 2021, plus they receive (a) a fee of $6,750 per day, increased to $7,000 per day as of January 1, 2021, for attendance in person or by telephone at regularly scheduled meetings of the Board; (b) a fee of $3,000 per meeting for attendance in person or by telephone at special, non-regularly scheduled Board meetings where in-person attendance is required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance is not required; (c) a fee of $2,500 per meeting for attendance in person or by telephone at Audit Committee meetings where in-person attendance is required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance is not required; (d) a fee of $5,000 per meeting for attendance
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in person or by telephone at Compliance, Risk Management and Regulatory Oversight Committee meetings where in-person attendance is required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance is not required; (e) a fee of $1,000 per meeting for attendance in person or by telephone at Dividend Committee meetings; (f) a fee of $500 per meeting for attendance in person or by telephone at all other committee meetings ($1,000 for shareholder meetings) where in-person attendance is required and $250 per meeting for attendance by telephone or in person at such committee meetings (excluding shareholder meetings) where in-person attendance is not required, and $100 per meeting when the Executive Committee acts as pricing committee for IPOs, plus, in each case, expenses incurred in attending such meetings, provided that no fees are received for meetings held on days on which regularly scheduled Board meetings are held; and (g) a fee of $2,500 per meeting for attendance in person or by telephone at Open-End Funds Committee meetings where in-person attendance is required and $2,000 per meeting for attendance by telephone or in person at such meetings where in-person attendance is not required; provided that no fees are received for meetings held on days on which regularly scheduled Board meetings are held. In addition to the payments described above, the Chair of the Board receives $90,000, increased to $100,000 as of January 1, 2021, and the chairpersons of the Audit Committee, the Dividend Committee, the Compliance, Risk Management and Regulatory Oversight Committee, the Nominating and Governance Committee and the Open-End Funds Committee receive $15,000 each as additional retainers. Independent directors also receive a fee of $3,000 per day, increased to $3,500 per day as of January 1, 2021, for site visits to entities that provide services to the Nuveen Funds on days on which no Board meeting is held. When ad hoc committees are organized, the Nominating and Governance Committee will at the time of formation determine compensation to be paid to the members of such committee; however, in general, such fees will be $1,000 per meeting for attendance in person or by telephone at ad hoc committee meetings where in-person attendance is required and $500 per meeting for attendance by telephone or in person at such meetings where in-person attendance is not required. The annual retainer, fees and expenses are allocated among the Nuveen Funds on the basis of relative net assets, although management may, in its discretion, establish a minimum amount to be allocated to each fund. In certain instances fees and expenses will be allocated only to those Nuveen Funds that are discussed at a given meeting. In certain circumstances, such as during the COVID-19 pandemic, the Board may hold in-person meetings by telephonic or videographic means and be compensated at the in-person rate.
NIF does not have a retirement or pension plan. NIF is a participant in a deferred compensation plan (the “
Deferred Compensation Plan
”) that permits any independent director to elect to defer receipt of all or a portion of his or her compensation as an independent director. The deferred compensation of a participating director is credited to a book reserve account of the participating Nuveen Funds when the compensation would otherwise have been paid to the director. The value of the director’s deferral account at any time is equal to the value that the account would have had if contributions to the account had been invested and reinvested in shares of one or more of the eligible Nuveen Funds. An independent director may elect to receive distributions in a lump sum or over a period of five years. No participating Nuveen Fund will be liable for any other fund’s obligations to make distributions under the Deferred Compensation Plan.
The Funds have no employees. Each officer of NIF serves without any compensation from the Funds. The CCO’s compensation, which is composed of base salary and incentive compensation, is paid by the Adviser, with review and input by the Board. Each Fund reimburses the Adviser for an allocable portion of the Adviser’s cost of the CCO’s incentive compensation.
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Share Ownership
The information in the table below discloses the dollar ranges of (i) each director’s beneficial ownership in each Fund, and (ii) each director’s aggregate beneficial ownership in all funds within the Nuveen Funds complex, including in each case the value of fund shares elected by the director in the directors’ deferred compensation plan, based on the value of fund shares as of December 31, 2020:
                                                         
                 
Directors
               
 
Evans
 
Hunter
 
Moschner
 
Nelson
 
Stockdale
 
Stone
 
Thornton
1
 
Toth
 
Wolff
 
Young
Aggregate Holdings –
Fund Complex
 
Over
$100,000
 
Over
$100,000
 
Over
$100,000
 
Over
$100,000
 
Over
$100,000
 
Over
$100,000
 
$0
 
Over
$100,000
 
Over
$100,000
 
Over
$100,000
Nuveen Dividend Value Fund
 
Over $100,000
 
$0
 
$0
 
$0
 
Over $100,000
 
Over $100,000
 
$0
 
$50,001-$100,000
 
Over $100,000
 
$0
Nuveen Large Cap Select Fund
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
Nuveen Mid Cap Growth Opportunities Fund
 
Over $100,000
 
$0
 
$0
 
$0
 
Over $100,000
 
Over $100,000
 
$0
 
$50,001-$100,000
 
$0
 
$0
Nuveen Mid Cap Value Fund
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
Nuveen Small Cap Growth Opportunities Fund
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
Over $100,000
 
$0
 
$0
Nuveen Small Cap Select Fund
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
Nuveen Small Cap Value Fund
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
 
$0
1
Mr. Thornton was elected to the Board of Directors of the Nuveen Funds effective November 16, 2020.
As of February 2, 2021, the officers and directors of NIF, in the aggregate, owned less than 1% of the shares of each of the Funds.
As of February 2, 2021, none of the independent directors or their immediate family members owned, beneficially, or of record, any securities in (i) an investment adviser or principal underwriter of the Funds or (ii) a person (other than a registered investment company) directly or indirectly controlling, controlled by, or under common control with an investment adviser or principal underwriter of the Funds.
Sales Loads
Directors of NIF and certain other Fund affiliates may purchase the Funds' Class R6 or Class I shares. See the Funds' Prospectus for details.
SERVICE PROVIDERS
Investment Adviser
Nuveen Fund Advisors, located at 333 West Wacker Drive, Chicago, Illinois 60606, serves as the investment adviser of each Fund, with responsibility for the overall management of each Fund. The Adviser is also responsible for managing the Funds’ business affairs and providing day-to-day administrative services to the Funds. The Adviser has selected its affiliate, Nuveen Asset Management, located at 333 West Wacker Drive, Chicago, Illinois 60606, to serve as sub-adviser to manage the investment portfolios of the Funds. For additional information regarding the management services performed by the Adviser and the Sub-Adviser, see “Who Manages the Funds” in the Prospectus.
The Adviser is an affiliate of the Distributor, which is located at 333 West Wacker Drive, Chicago, Illinois 60606. The Distributor is the principal underwriter for the Nuveen Mutual Funds, and has served as co-managing underwriter for the shares of the Nuveen Closed-End Funds. The Adviser and the Distributor are subsidiaries of Nuveen, LLC, the investment management arm of TIAA.
For the management services and facilities furnished by the Adviser, each of the Funds has agreed to pay an annual management fee at a rate set forth in the Prospectus under “Who Manages the Funds.”
Each Fund’s management fee is divided into two components—a complex-level fee based on the aggregate amount of all eligible Nuveen Fund assets and a specific fund-level fee based only on the amount of assets within such Fund. This pricing structure enables Fund shareholders to benefit from growth in the assets within the respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser. Under no circumstances will this pricing structure result in a Fund paying management fees at a rate higher than would otherwise have been applicable had the complex-wide management fee structure not been implemented.
Each Fund has agreed to pay an annual fund-level management fee, payable monthly, based upon the average daily net assets of such Fund as set forth in the Prospectus.
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Each Fund’s complex-level fee is payable monthly and is additive to the fund-level fee. It is determined by taking the current overall complex-level fee rate, which is based on the aggregate amount of the “eligible assets” of all Nuveen-branded closed-end funds and Nuveen Mutual Funds, and making, as appropriate, upward adjustments to that rate based upon the percentage of each Fund’s assets that are
not
“eligible
assets.”
The
current
overall
complex-level
fee
schedule
is
as
follows:
     
Complex-Level Asset
 
Effective Rate at
Breakpoint Level*
 
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-branded closed-end funds and Nuveen Mutual Funds. Except as described below, eligible assets include the net assets of all Nuveen-branded closed-end funds and Nuveen Mutual Funds organized in the United States. 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 Nuveen Fund Advisors’ assumption of the management of the former First American Funds effective January 1, 2011, but do include certain assets of certain Nuveen Mutual Funds that were reorganized into funds advised by an affiliate of Nuveen Fund Advisors during the 2019 calendar year. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial 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.
A Fund’s complex-level fee rate will not exceed the maximum overall complex-level fee rate of 0.2000%. As of December 31, 2020, the Funds’ effective complex-level fee rates were as follows:
     
   
Complex-Level
Fund
 
Fee Rate
Nuveen Dividend Value Fund
 
0.1676%
Nuveen Large Cap Select Fund
 
0.2000%
Nuveen Mid Cap Growth Opportunities Fund
 
0.2000%
Nuveen Mid Cap Value Fund
 
0.1962%
Nuveen Small Cap Growth Opportunities Fund
 
0.1773%
Nuveen Small Cap Select Fund
 
0.2000%
Nuveen Small Cap Value Fund
 
0.1608%
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The following table sets forth the management fees (net of fee waivers and expense reimbursements) paid by the Funds and the fees waived and expenses reimbursed by the Adviser for the specified periods.
                       
 
Management Fees Paid to the
Adviser Net of Fee Waivers and
Expense Reimbursements
 
Fee Waivers and Expense
Reimbursements from
the Adviser
 
Fiscal Year
Ended
October 31,
2018
 
Fiscal Year
Ended
October 31,
2019
 
Fiscal Year
Ended
October 31,
2020
 
Fiscal Year
Ended
October 31,
2018
 
Fiscal Year
Ended
October 31,
2019
 
Fiscal Year
Ended
October 31,
2020
Nuveen Dividend Value Fund
 
$ 7,654,933
 
$ 7,226,627
 
$12,764,993
 
$ —
 
$ —
 
$ —
Nuveen Large Cap Select Fund
 
491,729
 
424,389
 
218,800
 
13,901
 
34,975
 
85,058
Nuveen Mid Cap Growth Opportunities Fund
 
5,476,301
 
3,379,747
 
2,626,582
 
434,856
 
338,810
 
262,870
Nuveen Mid Cap Value Fund
 
906,695
 
2,138,996
 
2,069,992
 
199,918
 
314,047
 
311,821
Nuveen Small Cap Growth Opportunities Fund
 
779,092
 
1,024,580
 
1,327,181
 
153,329
 
228,475
 
418,060
Nuveen Small Cap Select Fund
 
836,026
 
673,023
 
526,617
 
234,128
 
183,740
 
202,144
Nuveen Small Cap Value Fund
 
17,330,750
 
13,283,753
 
7,249,620
 
955,770
 
1,474,212
 
1,062,888
In addition to the Adviser’s management fee, each Fund also pays a portion of NIF’s general administrative expenses allocated in proportion to the net assets of each Fund. All fees and expenses are accrued daily and deducted before payment of dividends to investors.
Sub-Adviser
The Adviser has selected its affiliate, Nuveen Asset Management, to serve as sub-adviser to manage the investment portfolio of each Fund. The Adviser pays Nuveen Asset Management a portfolio management fee out of the advisory fee paid to the Adviser for its services to the Funds.
Portfolio Managers
The following individuals have primary responsibility for the day-to-day implementation of the investment strategies of the Funds:
   
Name
Fund
Karen L. Bowie, CFA
Nuveen Mid Cap Value Fund
 
Nuveen Small Cap Value Fund
David A. Chalupnik, CFA
Nuveen Dividend Value Fund
 
Nuveen Large Cap Select Fund
David F. Johnson, CFA
Nuveen Small Cap Value Fund
Jon A. Loth, CFA
Nuveen Small Cap Growth Opportunities Fund
 
Nuveen Small Cap Select Fund
Bihag N. Patel, CFA
Nuveen Mid Cap Growth Opportunities Fund
Gregory J. Ryan, CFA
Nuveen Mid Cap Growth Opportunities Fund
 
Nuveen Small Cap Select Fund
Evan F. Staples, CFA
Nuveen Dividend Value Fund
 
Nuveen Large Cap Select Fund
Compensation
Portfolio managers are compensated through a combination of base salary and variable components consisting of (i) a cash bonus; (ii) a long-term performance award; and (iii) participation in a profits interest plan.
Base salary.
A portfolio manager’s base salary is determined based upon an analysis of the portfolio manager’s general performance, experience and market levels of base pay for such position.
Cash bonus.
A portfolio manager is eligible to receive an annual cash bonus that is based on three variables: risk-adjusted investment performance relative to benchmark generally measured over the most recent one, three and five year periods (unless the portfolio manager’s tenure is shorter), ranking versus Morningstar peer funds generally measured over the most recent one, three and five year periods (unless the portfolio manager’s tenure is shorter), and management and peer reviews.
Long-term performance award.
A portfolio manager is eligible to receive a long-term performance award that vests after three years. The amount of the award when granted is based on the same factors used in determining the cash bonus. The value of the award at the completion of the three-year vesting
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period is adjusted based on the risk-adjusted investment performance of Fund(s) managed by the portfolio manager during the vesting period and the performance of the TIAA organization as a whole.
Profits interest plan.
Portfolio managers are eligible to receive profits interests in Nuveen Asset Management and its affiliate, TAL, which vest over time and entitle their holders to a percentage of the firms’ annual profits. Profits interests are allocated to each portfolio manager based on such person’s overall contribution to the firms.
There are generally no differences between the methods used to determine compensation with respect to the Funds and the Other Accounts shown in the table below.
Other Accounts Managed
In addition to the Funds, as of October 31, 2020, the portfolio managers were also primarily responsible for the day-to-day portfolio management of the following accounts:
                         
Portfolio Manager
 
Type of Account Managed
 
Number of Accounts
 
Assets
 
Number of Accounts with Performance-Based Fees
 
Assets of Accounts with Performance-Based Fees
Karen L. Bowie
 
 
Registered Investment Companies
 
1
 
$
181.0 million
 
0
 
$
0
   
Other Pooled Investment Vehicles
 
0
   
0
 
0
   
0
   
Other Accounts
 
17
   
597.9 million
 
0
   
0
David A. Chalupnik
 
 
Registered Investment Companies
 
5
   
6.1 billion
 
0
   
0
   
Other Pooled Investment Vehicles
 
1
   
113.1 million
 
0
   
0
   
Other Accounts*
 
2,937
   
8.6 billion
 
0
   
0
David F. Johnson
 
 
Registered Investment Companies
 
0
   
0
 
0
   
0
 
 
Other Pooled Investment Vehicles
 
0
   
0
 
0
   
0
   
Other Accounts
 
17
   
597.9 million
 
0
   
0
Jon A. Loth
 
 
Registered Investment Companies
 
0
   
0
 
0
   
0
   
Other Pooled Investment Vehicles
 
0
   
0
 
0
   
0
   
Other Accounts
 
8
   
44.8 million
 
0
   
0
Bihag N. Patel
 
 
Registered Investment Companies
 
0
   
0
 
0
   
0
   
Other Pooled Investment Vehicles
 
0
   
0
 
0
   
0
   
Other Accounts
 
2
   
358.1 million
 
0
   
0
Gregory J. Ryan
 
 
Registered Investment Companies
 
0
   
0
 
0
   
0
   
Other Pooled Investment Vehicles
 
0
   
0
 
0
   
0
   
Other Accounts
 
9
   
47.9 million
 
0
   
0
Evan F. Staples
 
 
Registered Investment Companies
 
1
   
1.7 billion
 
0
   
0
   
Other Pooled Investment Vehicles
 
0
   
0
 
0
   
0
   
Other Accounts
 
8
   
251.0 million
 
0
   
0
* Includes approximately $8.3 billion in model-based assets.
Conflicts of Interest
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented a number of potential conflicts, including, among others, those discussed below.
The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Nuveen Asset Management seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment
models.
If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Nuveen Asset Management has adopted procedures for allocating limited opportunities across multiple accounts.
With respect to many of its clients’ accounts, Nuveen Asset Management determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, Nuveen Asset Management may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Nuveen Asset Management may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.
Some clients are subject to different regulations. As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques or
S-42
transactions or to engage in these transactions to the same extent as the other accounts managed by a portfolio manager. Finally, the appearance of a conflict of interest may arise where Nuveen Asset Management has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.
Conflicts of interest may also arise when the Sub-Adviser invests one or more of its client accounts in different or multiple parts of the same issuer’s capital structure, including investments in public versus private securities, debt versus equity, or senior versus junior/subordinated debt, or otherwise where there are different or inconsistent rights or benefits. Decisions or actions such as investing, trading, proxy voting, exercising, waiving or amending rights or covenants, workout activity, or serving on a board, committee or other involvement in governance may result in conflicts of interest between clients holding different securities or investments. Generally, individual portfolio managers will seek to act in a manner that they believe serves the best interest of the accounts they manage. In cases where a portfolio manager or team faces a conflict among its client accounts, it will seek to act in a manner that it believes best reflects its overall fiduciary duty, which may result in relative advantages or disadvantages for particular accounts.
Nuveen Asset Management has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
Beneficial Ownership of Securities
The following table indicates as of October 31, 2020 the value, within the indicated range, of shares beneficially owned by each portfolio manager in the Fund(s) they manage. For purposes of this table, the following letters indicate the range listed next to each letter:
         
A
- $0
 
B
- $1 - $10,000
     
C
- $10,001 - $50,000
     
D
- $50,001 - $100,000
     
E
- $100,001 - $500,000
     
F
- $500,001 - $1,000,000
     
G
- More than $1 million
     
         
Portfolio Manager
 
Fund
 
Dollar Range of Equity Securities Beneficially Owned in Fund Managed
Karen L. Bowie
 
 
Nuveen Mid Cap Value Fund
 
E
   
Nuveen Small Cap Value Fund
 
F
David A. Chalupnik
 
 
Nuveen Dividend Value Fund
 
G
   
Nuveen Large Cap Select Fund
 
G
David F. Johnson
 
 
Nuveen Small Cap Value Fund
 
D
Jon A. Loth
 
 
Nuveen Small Cap Growth Opportunities Fund
 
D
   
Nuveen Small Cap Select Fund
 
C
Bihag N. Patel
 
 
Nuveen Mid Cap Growth Opportunities Fund
 
E
Gregory J. Ryan
 
 
Nuveen Mid Cap Growth Opportunities Fund
 
D
   
Nuveen Small Cap Select Fund
 
E
Evan F. Staples
 
 
Nuveen Dividend Value Fund
 
E
   
Nuveen Large Cap Select Fund
 
E
Transfer Agent
The Funds' transfer, shareholder services, and dividend paying agent is DST Asset Manager Solutions, Inc. (
“DST”
), P.O. Box 219140, Kansas City, Missouri 64121-9140.
Custodian
The custodian of the assets of the Funds is State Street Bank and Trust Company (“
State Street”
), One Lincoln Street, Boston, Massachusetts 02111. The custodian performs custodial, fund accounting and portfolio accounting services.
Distributor
Nuveen Securities, LLC, 333 West Wacker Drive, Chicago, Illinois 60606, serves as the distributor for the Funds' shares pursuant to a “best efforts” arrangement as provided by a Distribution Agreement dated
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January 1, 2011 (the “
Distribution Agreement
”). Pursuant to the Distribution Agreement, the Funds appointed the Distributor to be their agent for the distribution of the Funds' shares on a continuous offering basis.
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP (“
PwC
”), One North Wacker Drive, Chicago, Illinois 60606, independent registered public accounting firm, has been selected as auditors for the Funds. In addition to audit services, PwC provides assistance on accounting, tax and related matters.
Securities Lending Agent
As of August 12, 2020, State Street serves as the securities lending agent to each Fund. Previously, U.S. Bank National Association (“
U.S. Bank
”) served as the securities lending agent to each Fund.
Pursuant to a Securities Lending Agreement and in accordance with procedures established by the Board of Directors, the securities lending agent effects loans of Fund securities to any firm on a list of approved borrowers, negotiates loan terms, monitors the value of the loaned securities and collateral, requests additional collateral as necessary, manages reinvestment of collateral in a pooled cash collateral reinvestment vehicle, arranges for the return of loaned securities to a Fund, and maintains records and prepares reports regarding loans that are made and the income derived therefrom. For the services provided, a securities lending agent will receive fees and/or compensation from a Fund, which may include a portion of the income generated from securities lending activities.
The following table provides the dollar amounts of income and fees and/or compensation related to the Funds' securities lending activities during the fiscal year ended October 31, 2020.
                                                       
 
Nuveen
Dividend
Value
Fund
 
Nuveen
Large Cap
Select
Fund
 
Nuveen Mid
Cap Growth
Opportunities
Fund
 
Nuveen
Mid Cap
Value
Fund
 
Nuveen Small
Cap Growth
Opportunities
Fund
 
Nuveen
Small Cap
Select
Fund
 
Nuveen
Small Cap
Value
Fund
Gross income from securities
lending activities
$
4,925
   
$
119
   
$
51,649
   
$
626
   
$
74,982
   
$
13,567
 
$
104,709
 
Fees and/or compensation paid by each Fund for securities lending activities and related services:
                                                     
Fees paid to Securities Lending Agent from a revenue split
 
—
     
—
     
(1,530
)
   
—
     
(2,026
)
   
(420
)
   
(582
)
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split
 
(404
)
   
(39
)
   
(3,518
)
   
(112
)
   
(4,540
)
   
(684
)
   
(5,041
)
Administrative fees not included in the revenue split
 
—
     
—
     
—
     
—
     
—
     
—
     
—
 
Indemnification fees not included in the revenue split
 
—
     
—
     
—
     
—
     
—
     
—
     
—
 
Rebate (paid to borrower)
 
(4,031
)
   
—
     
(29,006
)
   
(184
)
   
(45,112
)
   
(7,636
)
   
(92,390
)
Other fees not included in the revenue split
 
—
     
—
     
—
     
—
     
—
     
—
     
—
 
Aggregate fees/compensation for securities lending activities
 
(4,435
)
   
(39
)
   
(34,054
)
   
(296
)
   
(51,678
)
   
(8,740
)
 
(98,013
)
Net income from securities lending activities
$
490
   
$
80
   
$
17,595
   
$
330
   
$
23,304
   
$
4,827
 
$
6,696
 
CODES OF ETHICS
The Funds, the Adviser, Nuveen Asset Management and the Distributor have adopted codes of ethics pursuant to Rule 17j-1 under the 1940 Act and with respect to the Adviser and the Sub-Adviser, Rule 204A-1 under the Investment Advisers Act of 1940, as amended, addressing personal securities transactions and other conduct by investment personnel and access persons who may have access to information about the Funds' securities transactions. The codes are intended to address potential conflicts of interest that can arise in connection with personal trading activities of such persons. Persons subject to the codes are generally permitted to engage in personal securities transactions, including investing in securities eligible for investment by the Funds, subject to certain prohibitions, which may include prohibitions on investing in certain types of securities, pre-clearance requirements, blackout periods, annual and quarterly reporting of personal securities holdings and limitations on personal trading of initial
S-44
public offerings. Violations of the codes are subject to review by the Board of Directors and could result in severe penalties.
PROXY VOTING POLICIES
Each Fund has delegated authority to the Adviser to vote proxies for securities held by the Fund, and the Adviser has in turn delegated that responsibility to the Sub-Adviser. The Adviser’s proxy voting policy establishes minimum standards for the exercise of proxy voting authority by the Sub-Adviser.
A member of each Fund’s management team is responsible for oversight of the Fund’s proxy voting process. With regard to equity securities, Nuveen Asset Management has engaged the services of Institutional Shareholder Services Inc. (“
ISS
”) to make recommendations on the voting of proxies relating to securities held by the Funds and managed by Nuveen Asset Management. ISS provides voting recommendations based upon established guidelines and practices. Nuveen Asset Management reviews and frequently follows ISS recommendations. However, on selected issues, Nuveen Asset Management may not vote in accordance with the ISS recommendations when it believes that specific ISS recommendations are not in the best economic interest of the applicable Fund. If Nuveen Asset Management manages the assets of a company or its pension plan and any of Nuveen Asset Management's clients hold any securities of that company, Nuveen Asset Management will vote proxies relating to such company’s securities in accordance with the ISS recommendations to avoid any conflict of interest. Where a material conflict of interest has been identified by Nuveen Asset Management and ISS does not offer a recommendation on the matter, Nuveen Asset Management shall disclose the conflict and Nuveen Asset Management’s Proxy Voting Committee shall determine the manner in which to vote and notify the applicable Fund’s Board of Directors or its designated committee.
Although Nuveen Asset Management has affiliates that provide investment advisory, broker-dealer, insurance or other financial services, Nuveen Asset Management does not receive non-public information about the business arrangements of such affiliates (except with regard to major distribution partners of its investment products) or the directors, officers and employees of such affiliates. Therefore, Nuveen Asset Management is unable to consider such information when determining whether there are material conflicts of interests.
Nuveen Asset Management has adopted the ISS Proxy Voting Guidelines. While these guidelines are not intended to be all-inclusive, they do provide guidance on the Sub-Adviser’s general voting policies. Please see Appendix B for the ISS United States Proxy Voting Guidelines and ISS’s website at http://www.issgovernance.com/policy-gateway/voting-policies for access to all of the current ISS Proxy Voting Guidelines.
Voted Proxies
. Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge by accessing Nuveen’s website at http://www.nuveen.com or the SEC’s website at http://www.sec.gov.
PORTFOLIO TRANSACTIONS
Decisions with respect to which securities are to be bought or sold, the total amount of securities to be bought or sold, the broker-dealer with or through which the securities transactions are to be effected and the commission rates applicable to the trades are made by Nuveen Asset Management.
In selecting a broker-dealer to execute securities transactions, Nuveen Asset Management considers the full range and quality of a broker-dealer’s services including, among other things: the value, nature and quality of any brokerage and research products and services; execution capability; commission rate; financial responsibility (including willingness to commit capital); the likelihood of price improvement; the speed of execution and likelihood of execution for limit orders; the ability to minimize market impact; the maintenance of the confidentiality of orders; and responsiveness of the broker-dealer. The determinative factor is not the lowest possible commission cost but whether the transaction represents the best qualitative execution for the Funds. Subject to the satisfaction of its obligation to seek best execution, another factor considered by Nuveen Asset Management in selecting a broker-dealer may include the broker-dealer’s access to initial public offerings.
For certain transactions, Nuveen Asset Management may cause the Funds to pay a broker-dealer a commission higher than that which another broker-dealer might have charged for effecting the same transaction (a practice commonly referred to as “paying up”). Nuveen Asset Management causes a Fund to pay up in recognition of the value of the brokerage and research products and services (“
Research
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Services
”) the broker-dealer provides. The broker-dealer may directly provide Research Services to the Funds or may purchase them from a third party for the Funds. In such cases, Nuveen Asset Management is in effect paying for the Research Services with client commissions – so-called “soft dollars.” Nuveen Asset Management will only cause a Fund to pay up if Nuveen Asset Management, subject to its overall duty to seek best execution, determines in good faith that the Research Services are eligible brokerage and research under Section 28(e) of the Securities Exchange Act of 1934, as amended, and the amount of the commission is reasonable in relation to the value of the Research Services provided, viewed in terms of either that particular transaction or the overall responsibilities of Nuveen Asset Management or its affiliates with respect to the managing of its accounts.
Nuveen Asset Management employs the use of commission sharing arrangements administered by its centralized equity trading desk. Under these arrangements, when Nuveen Asset Management pays a commission to an executing broker, a portion of the commission is for execution of the trade (brokerage) and a portion is for Research Services. The broker will allocate the Research Services portion of the commission to a pool of commission credits it maintains. The commission manager, at Nuveen Asset Management’s direction, pays Research Services providers for eligible research products and services. An executing broker may or may not be a Research Services provider. Nuveen Asset Management uses commission sharing arrangements to pay for both proprietary and third party Research Services. The centralized equity trading desk does not select Research Services.
Under Nuveen Asset Management’s commission sharing arrangements, Nuveen Equities (the integrated equity investment team of Nuveen Asset Management (excluding Public Real Assets) and certain affiliates) aggregates commission credits into a single pool, and allocates the Research Services among the respective Nuveen Equities investment teams based on factors such as asset size of the team’s equity strategy and the strategy’s geographic considerations. Commission credits generated by Nuveen Asset Management’s Public Real Assets accounts are aggregated into a separate pool to purchase Research Services, which generally supports the Nuveen Asset Management Public Real Assets investment team. Research Services will not necessarily directly and specifically benefit the particular account(s) that generated the brokerage commissions used to acquire the Research Services.
Research Services consist of products and services including some or all of the following: economic analysis and forecasts, financial market analysis and forecasts, industry and company specific analysis, interest rate forecasts, arbitrage relative valuation analysis of various debt securities, analytical tools for investment research and related consulting services, market data services and other services that assist in the investment decision making process, and meetings arranged by broker-dealers with corporate management teams and spokespersons, as well as industry spokespersons. Research products include written reports, computer-generated services, telephone contacts and personal meetings with securities analysts that assist in the investment decision-making process.
Nuveen Asset Management will use Research Services to benefit any client of Nuveen Asset Management or its affiliates, including the Funds, and at times the Research Services will not directly benefit the particular account(s) that generated the brokerage commissions used to acquire the Research Services. For example, Nuveen Asset Management uses clients’ equity commissions to pay for Research Services that at times will benefit other accounts of Nuveen Asset Management and its affiliates.
The Research Services that Nuveen Asset Management receives from broker-dealers supplement Nuveen Asset Management’s own research activities. As a practical matter, in some cases Nuveen Asset Management could not, on its own, generate all of the Research Services that broker-dealers provide without materially increasing its expenses. Soft dollar arrangements create a potential conflict by giving Nuveen Asset Management an incentive to trade frequently to generate commissions to pay for Research Services, which may not be in the best interests of its clients. Nuveen Asset Management attempts to mitigate these potential conflicts through its review and oversight of the use of commissions. Because of the nature of soft dollar arrangements, and because of the fact that any particular Research Service may be used to service all of Nuveen Asset Management’s advisory accounts (possibly to varying degrees) or fewer than all of its advisory accounts, Nuveen Asset Management is unable to quantify or estimate the value of any such services attributable to a particular advisory account with any meaningful degree of accuracy.
Many of the Funds’ portfolio transactions involve payment of a brokerage commission by the applicable Fund. In some cases, transactions are with dealers or issuers who act as principal for their own accounts and not as brokers. Transactions effected on a principal basis, other than certain transactions effected on a so-called riskless principal basis, are made without the payment of brokerage commissions but at net prices which usually include a spread or markup. In effecting transactions in over-
S-46
the-counter securities, the Funds typically deal with market makers unless it appears that better price and execution are available elsewhere.
It is expected that the Funds will purchase most foreign equity securities in the over-the-counter markets or stock exchanges located in the countries in which the respective principal offices of the issuers of the various securities are located if that is the best available market. The commission paid in connection with foreign stock transactions may be higher than negotiated commissions on U.S. transactions. There generally is less governmental supervision and regulation of foreign stock exchanges than in the United States. Foreign securities settlements may in some instances be subject to delays and related administrative uncertainties.
Foreign equity securities may be held in the form of depositary receipts or securities convertible into foreign equity securities. Depositary receipts may be listed on stock exchanges or traded in the over-the-counter markets in the United States or overseas. The foreign and domestic debt securities and money market instruments in which the Funds may invest are generally traded in the over-the-counter markets.
The Funds do not effect any brokerage transactions in their portfolio securities with any broker or dealer affiliated directly or indirectly with the Adviser, Nuveen Asset Management or Distributor unless such transactions, including the frequency thereof, the receipt of commission payable in connection therewith, and the selection of the affiliated broker or dealer effecting such transactions are not unfair or unreasonable to the shareholders of the Funds, as determined by the Board of Directors. Any transactions with an affiliated broker or dealer must be on terms that are both at least as favorable to the Funds as the Funds can obtain elsewhere and at least as favorable as such affiliated broker or dealer normally gives to others.
When two or more clients of Nuveen Asset Management are simultaneously engaged in the purchase or sale of the same security, the prices and amounts are allocated in a manner considered by Nuveen Asset Management to be equitable to each client. In some cases, this system could have a detrimental effect on the price or volume of the security as far as each client is concerned. In other cases, however, the ability of the clients to participate in volume transactions may produce better executions for each client.
On behalf of a Fund, Nuveen Asset Management may seek to buy from or sell securities to another fund or account advised by Nuveen Asset Management or an affiliate. Nuveen Asset Management may effect purchases and sales between its clients or clients of its affiliates, including the Funds (referred to herein as “
cross trades
”), if it believes that such transactions are appropriate based on each party’s investment objectives and guidelines, subject to applicable law and regulation. Cross trades may give rise to potential conflicts of interest for Nuveen Asset Management. On any occasion when a Fund participates in a cross trade, the Fund will comply with procedures adopted pursuant to Rule 17a-7 under the 1940 Act and applicable SEC guidance.
The following table sets forth the aggregate brokerage commissions paid by the Funds for the specified periods:
                         
 
Aggregate Brokerage Commissions Paid by the Funds
Fund
 
Fiscal Year
Ended
October 31, 2018
 
Fiscal Year
Ended
October 31, 2019
 
Fiscal Year
Ended
October 31, 2020
Nuveen Dividend Value Fund
 
$
1,071,599
 
$
1,072,195
 
$
1,805,603
Nuveen Large Cap Select Fund
 
 
76,754
   
71,731
   
23,460
Nuveen Mid Cap Growth Opportunities Fund
 
 
783,737
   
387,381
   
132,801
Nuveen Mid Cap Value Fund
 
 
165,756
   
221,921
   
176,784
Nuveen Small Cap Growth Opportunities Fund
 
 
177,593
   
221,549
   
116,913
Nuveen Small Cap Select Fund
 
 
197,456
   
121,390
   
60,993
Nuveen Small Cap Value Fund
 
 
2,520,697
   
1,544,544
   
900,346
Brokerage commissions paid by a Fund may vary substantially from year to year as a result of changing asset levels throughout the year, portfolio turnover rates, differences in shareholder purchase and redemption activity, varying market conditions and other factors.
During the fiscal year ended October 31, 2020, Nuveen Dividend Value Fund, Nuveen Large Cap Select Fund, Nuveen Mid Cap Growth Opportunities Fund, Nuveen Mid Cap Value Fund, Nuveen Small Cap Growth Opportunities Fund, Nuveen Small Cap Select Fund and Nuveen Small Cap Value Fund paid to brokers as commissions in return for research services $615,777, $5,089, $39,663, $23,789, $46,976, $29,627 and $441,181, respectively, and the aggregate amount of those transactions per Fund on which
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such commissions were paid were $902,689,671, $12,616,363, $76,776,344, $16,272,484, $58,112,661, $24,630,656 and $220,622,304, respectively.
The following Funds have acquired during the fiscal year ended October 31, 2020 the securities of their regular brokers or dealers as defined in Rule 10b-1 under the 1940 Act or of the parents of the brokers or dealers. The following table sets forth those brokers or dealers and states the value of the Funds’ aggregate holdings of the securities of each issuer as of close of the fiscal year ended October 31, 2020:
               
Fund
 
Broker/Dealer
 
Issuer
 
Aggregate Fund Holdings of Broker/Dealer
or Parent (as of October 31, 2020)
Nuveen Dividend Value Fund
 
Citigroup Global Markets Inc.
 
Citigroup Inc.
 
$
53,214,345
 
JP Morgan Securities, Inc.
 
JPMorgan Chase & Co.
   
—
 
Morgan Stanley & Co.
 
Morgan Stanley
   
75,865,718
Nuveen Mid Cap Value Fund………
Keybanc Capital Markets Inc.
 
KeyCorp
   
—
Nuveen Small Cap Select Fund……
Piper Jaffray & Co.
 
Piper Sandler Cos
   
1,322,098
Nuveen Small Cap Value Fund……
Piper Jaffray & Co.
 
Piper Sandler Cos
   
11,924,337
Under the 1940 Act, a Fund may not purchase portfolio securities from any underwriting syndicate of which the Distributor is a member except under certain limited conditions set forth in Rule 10f-3. The Rule sets forth requirements relating to, among other things, the terms of a security purchased by a Fund, the amount of securities that may be purchased in any one issue and the assets of a Fund that may be invested in a particular issue. In addition, purchases of securities made pursuant to the terms of the Rule must be approved at least quarterly by the Board of Directors, including a majority of the independent directors.
DISCLOSURE OF PORTFOLIO HOLDINGS
The Nuveen Mutual Funds have adopted a portfolio holdings disclosure policy which governs the dissemination of the Funds’ portfolio holdings. In accordance with this policy, the Funds may provide portfolio holdings information to third parties no earlier than the time a report is filed with the SEC that is required to contain such information or one day after the information is posted on the Funds’ publicly accessible website, www.nuveen.com. A complete list of portfolio holdings information is generally made available on the Funds' website ten business days after the end of the month. Additionally, the Funds publish on the website a list of their top ten holdings as of the end of each month, approximately two to five business days after the end of the month for which the information is current. This information will remain available on the website at least until the Funds file with the SEC their Form N-CSR or Form N-PORT for the period that includes the date as of which the website information is current.
Additionally,
the
Funds
may
disclose
portfolio
holdings
information
that
has
not
been
included
in a
filing
with
the
SEC
or
posted
on
the
Funds’
website
(i.e.,
non-public
portfolio
holdings
information) only if there is a legitimate business purpose for doing so and if the recipient is required, either by explicit
agreement
or
by
virtue
of
the
recipient’s
duties
to
the
Funds
as
an
agent
or
service
provider, to maintain the confidentiality of the information and to not use the information in an improper manner
(e.g.,
personal
trading).
In this context, portfolio holdings information does not include summary information from which the identity of a Fund’s specific portfolio holdings cannot reasonably be derived. The
Funds
may
disclose
on
an
ongoing
basis non-public portfolio holdings information in the normal course of their investment and administrative operations to various service providers, including the Adviser and/or Sub-Adviser, independent registered public accounting firm, custodian, financial printer, proxy voting service(s), borrowers of their securities pursuant to securities lending transactions, and to the legal counsel for the Funds’ independent directors. Also, the Adviser may transmit to service providers non-public portfolio holdings information to enable the Adviser to perform portfolio attribution analysis using third-party systems and software programs. The Adviser and/or Sub-Adviser may also provide certain portfolio holdings information to broker-dealers from time to time in connection with the purchase or sale of securities or requests for price quotations or bids on one or more securities. In providing this information, reasonable precautions are taken in an effort to avoid potential misuse of the disclosed information, including limitations on the scope of the portfolio holdings information disclosed, when appropriate. The Funds, the Adviser, and the Sub-Adviser do not receive compensation or other consideration in exchange for the disclosure of portfolio holdings.
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Non-public portfolio holdings information may be provided to other persons if approved by the Funds’ Chief Administrative Officer or Secretary upon a determination that there is a legitimate business purpose for doing so, the disclosure is consistent with the interests of the Funds, and the recipient is obligated to maintain the confidentiality of the information and not misuse it, which includes a prohibition on trading on such non-public information.
Compliance officers of the Funds and the Adviser and Sub-Adviser periodically monitor overall compliance with the policy to ascertain whether portfolio holdings information is disclosed in a manner that is consistent with the Funds’ policy. Reports are made to the Funds’ Board of Directors on an annual basis.
There
is
no
assurance
that
the
Funds’
policies
on
portfolio
holdings
information
will
protect
the Funds
from
the
potential
misuse
of
portfolio
holdings
information
by
individuals
or
firms
in
possession of
such
information.
The following parties currently receive non-public portfolio holdings information regarding one or more of the Nuveen Mutual Funds on an ongoing basis pursuant to the various arrangements described above:
Advent
Ascendant
Bank of America PriceServe
Barclays Capital, Inc.
Barra
Bloomberg
Broadridge Investor Communication Solutions, Inc.
Broadridge Systems
Brown Brothers Harriman & Co.
Chapman and Cutler LLP
Confluence NXT
Donnelley Financial Solutions
Eagle Investment Systems, LLC
Electra Information Systems
Ernst & Young
FactSet Research Systems
Financial Graphic Services
Glass, Lewis & Co.
ICE Benchmark Administration Limited
ICE Data Services
IHS Markit, Ltd.
ISS
Investortools
KPMG LLP
Lipper Inc.
Moody’s
Morningstar, Inc.
Northern Trust Corp.
Omgeo LLC
PricewaterhouseCoopers LLP
PricingDirect Inc.
Refinitiv
Rimes Technologies Corporation
SS&C
State Street Bank and Trust Co.
Strategic Insight
Wolters Kluwer
NET ASSET VALUE
Each Fund’s net asset value is determined as set forth in its Prospectus under “General Information—Net Asset Value.”
S-49
CAPITAL STOCK
Each share of each Fund’s $0.0001 par value common stock is fully paid, nonassessable, and transferable. Shares may be issued as either full or fractional shares. Fractional shares have pro rata the same rights and privileges as full shares. Shares of the Funds have no preemptive or conversion rights.
Each share of a Fund has one vote. On some issues, such as the election of directors, all shares of all NIF funds vote together as one series. The shares do not have cumulative voting rights. On issues affecting only a particular Fund, the shares of that Fund will vote as a separate series. Examples of such issues would be proposals to alter a fundamental investment restriction pertaining to a Fund or to approve, disapprove or alter a distribution plan. The Bylaws of NIF provide that annual shareholders meetings are not required and that meetings of shareholders need only be held with such frequency as required under Maryland law and the 1940 Act.
The following table sets forth the percentage ownership of each person, who, as of February 2, 2021, owned of record, or is known by NIF to have owned beneficially, 5% or more of any class of a Fund’s shares.
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
Nuveen Dividend Value Fund
 
Class A Shares
 
 

Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 

19.91%
   
 
   
   
Merrill Lynch Pierce Fenner
& Smith Safekeeping
Attn Physical Team
4800 Deer Lake Dr E
Jacksonville FL 32246-6484
 
7.07%
   
 
   
   
Morgan Stanley Smith Barney LLC
For the Exclusive Bene of its Cust
1 New York Plz Fl 12
New York NY 10004-1932
 
6.74%
   
 
   
   
Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 
6.63%
   
 
   
   
Edward D Jones & Co
For the Benefit of Customers
12555 Manchester Rd
Saint Louis MO 63131-3710
 
5.69%
   
 
   
   
UBS WM USA
Omni Account M/F
Spec Cdy A/C EBOC UBSFSI
1000 Harbor Blvd
Weehawken NJ 07086-6761
 
5.56%
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
5.34%
   
 
   
S-50
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
Nuveen Dividend Value Fund
 
Class C Shares
 
 

LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 

16.92%
   
 
   
   
UBS WM USA
Omni Account M/F
Spec Cdy A/C EBOC UBSFSI
1000 Harbor Blvd
Weehawken NJ 07086-6761
 
14.63%
   
 
   
   
Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 
12.80%
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
8.78%
   
 
   
   
Morgan Stanley Smith Barney LLC
For the Exclusive Bene of its Cust
1 New York Plz Fl 12
New York NY 10004-1932
 
8.17%
   
 
   
   
Raymond James
Omnibus for Mutual Funds
House Acct
Attn: Courtney Waller
880 Carillon Parkway
St Petersburg FL 33716-1102
 
7.08%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Acct FBO Customers
Attn: Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
5.78%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
5.65%
   
 
   
   
Pershing LLC
1 Pershing Plz
Jersey City NJ 07399-0001
 
5.55%
   
 
   
Nuveen Dividend Value Fund
 
Class R3 Shares
 
 

PIMS/Prudential Retirement
As Nominee for the Ttee/Cust Pl
Prudential SmartSolution IRA
280 Trumbull St.
Hartford CT 06103-3509
 

61.64%
   
 
   
S-51
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
PIMS/Prudential Retirement
As Nominee for the Ttee/Cust Pl
Prudential SmartSolution IRA
280 Trumbull St.
Hartford CT 06103-3509
 
12.39%
   
 
   
   
PIMS/Prudential Retirement
As Nominee for the Ttee/Cust Pl
Prudential SmartSolution IRA
280 Trumbull St.
Hartford CT 06103-3509
 
7.75%
   
 
   
Nuveen Dividend Value Fund
 
Class R6 Shares
 
 

TIAA-CREF IMF Lifecycle Fund #2040
Attn Janice Carnicelli
MSC 730/07/01
730 3
rd
Ave
New York NY 10017-3206
 

18.24%
   
 
   
   
TIAA-CREF IMF Lifecycle Fund #2035
Attn Janice Carnicelli
MSC 730/07/01
730 3
rd
Ave
New York NY 10017-3206
 
13.76%
   
 
   
   
TIAA-CREF IMF Lifecycle Fund #2045
Attn Janice Carnicelli
MSC 730/07/01
730 3
rd
Ave
New York NY 10017-3206
 
12.87%
   
 
   
   
TIAA-CREF IMF Lifecycle Fund #2030
Attn Janice Carnicelli
MSC 730/07/01
730 3
rd
Ave
New York NY 10017-3206
 
11.84%
   
 
   
   
TIAA-CREF IMF Lifecycle Fund #2025
Attn Janice Carnicelli
MSC 730/07/01
730 3
rd
Ave
New York NY 10017-3206
 
9.73%
   
 
   
   
TIAA-CREF IMF Lifecycle Fund #2050
Attn Janice Carnicelli
MSC 730/07/01
730 3
rd
Ave
New York NY 10017-3206
 
9.52%
   
 
   
   
TIAA-CREF IMF Lifecycle Fund #2020
Attn Janice Carnicelli
MSC 730/07/01
730 3
rd
Ave
New York NY 10017-3206
 
6.21%
   
 
   
Nuveen Dividend Value Fund
 
Class I Shares
 
 

JP Morgan Chase Bank NA FBO
TIAA-CREF Trust Co as Cust
For IRA Clients
4 Metrotech Ctr
Brooklyn NY 11245-0004
 

55.81%
   
 
   
S-52
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
Band & Co
C/O US Bank
PO Box 1787
Milwaukee WI 53201-1787
 
6.89%
   
 
   
Nuveen Large Cap Select Fund
 
Class A Shares
 
 

Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 

36.05%
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
13.52%
   
 
   
   
Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 
11.38%
   
 
   
   
Ascensus Trust Company FBO
Amana Tool Corp. 401(K) & Profit Sh
P.O. Box 10758
Fargo ND 58106-0758
 
7.87%
   
 
   
   
UBS WM USA
Omni Account M/F
Spec Cdy A/C EBOC UBSFSI
1000 Harbor Blvd
Weehawken NJ 07086-6761
 
6.98%
   
 
   
Nuveen Large Cap Select Fund
 
Class C Shares
 
 

Raymond James
Omnibus for Mutual Funds
House Acct
Attn: Courtney Waller
880 Carillon Parkway
St Petersburg FL 33716-1102
 

65.48%
   
 
   
   
LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 
10.07%
   
 
   
   
Morgan Stanley Smith Barney LLC
For the Exclusive Bene of its Cust
1 New York Plz Fl 12
New York NY 10004-1932
 
8.36%
   
 
   
Nuveen Large Cap Select Fund
 
Class I Shares
 
 

Band & Co
C/O US Bank
PO Box 1787
Milwaukee WI 53201-1787
 

40.86%
   
 
   
S-53
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
Pershing LLC
1 Pershing Plz
Jersey City NJ 07399-0001
 
28.70%
   
 
   
   
Washington & Co
C/O US Bank
PO Box 1787
Milwaukee WI 53201-1787
 
5.95%
   
 
   
Nuveen Mid Cap Growth Opportunities Fund
 
Class A Shares
 
 

Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 

25.63%
   
 
   
   
State Street Bank and Trust Company
Trustee and/or Custodian
FBO ADP Access Product
1 Lincoln St
Boston MA 02111-2901
 
7.13%
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
5.48%
   
 
   
Nuveen Mid Cap Growth Opportunities Fund
 
Class C Shares
 
 

Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 

24.69%
   
 
   
   
Great-West Trust Co LLC Trustee/C
FBO Retirement Plans
8515 E Orchard Rd 2T2
Greenwood Vlg CO 80111-5002
 
15.96%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Acct FBO Customers
Attn: Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
13.81%
   
 
   
   
LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 
9.11%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
6.82%
   
 
   
   
UMB Bank NA
Cust Simple IRA
Teresa D Mattie
Western WI Plastics Simple Plan
W 2093 Hwy T
Mindoro WI 54644
 
6.39%
S-54
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
5.54%
   
 
   
   
Raymond James
Omnibus for Mutual Funds
House Acct
Attn: Courtney Waller
880 Carillon Parkway
St Petersburg FL 33716-1102
 
5.43%
   
 
   
Nuveen Mid Cap Growth Opportunities Fund
 
Class R3 Shares
 
 

Hartford Life Insurance Company
Separate Account
Attn UIT Operations
PO Box 2999
Hartford CT 06104-2999
 

22.28%
   
 
   
   
State Street Bank and Trust Company
Trustee and/or Custodian
FBO ADP Access Product
1 Lincoln St
Boston MA 02111-2901
 
21.81%
   
 
   
   
DCGT as Ttee and/or Cust
FBO PLIC Various Retirement Plans
Omnibus
Attn NPIO Trade Desk
711 High Street
Des Moines IA 50392-0001
 
7.71%
   
 
   
   
Reliance Trust Co Custodian
FBO MassMutual Omnibus
PO Box 28004
Atlanta GA 30358-0004
 
6.87%
   
 
   
   
Nabank
PO Box 2180
Tulsa OK 74101-2180
 
5.60%
   
 
   
   
Massachusetts Mutual
Life Insurance Co
1295 State St
Springfield MA 01111-0001
 
5.58%
   
 
   
Nuveen Mid Cap Growth Opportunities Fund
 
Class R6 Shares
 
 

National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 

77.88%
   
 
   
   
FIIOC FBO
Allen Systems Group, Inc. 401(K)
Retirement Plan
100 Magellan Way
Covington KY 41015-1987
 
10.27%
S-55
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
 
   
Nuveen Mid Cap Growth Opportunities Fund
 
Class I Shares
 
 

National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 

39.18%
   
 
   
   
Great-West Trust Co LLC Trustee/C
FBO Retirement Plans
8515 E Orchard Rd 2T2
Greenwood Vlg CO 80111-5002
 
12.32%
   
 
   
   
Band & Co
C/O US Bank
PO Box 1787
Milwaukee WI 53201-1787
 
11.80%
   
 
   
   
JP Morgan Chase Bank NA FBO
TIAA-CREF Trust Co as Cust
For IRA Clients
4 Metrotech Ctr
Brooklyn NY 11245-0004
 
7.40%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Account
For Benefit of Customers
Attn Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
5.27%
   
 
   
Nuveen Mid Cap Value Fund
 
Class A Shares
 
 

Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 

26.86%
   
 
   
   
DCGT as Ttee and/or Cust
FBO PLIC Various Retirement Plans
Omnibus
Attn NPIO Trade Desk
711 High Street
Des Moines IA 50392-0001
 
10.25%
   
 
   
   
Edward D Jones & Co
For the Benefit of Customers
12555 Manchester Rd
Saint Louis MO 63131-3710
 
5.31%
   
 
   
Nuveen Mid Cap Value Fund
 
Class C Shares
 
 

Charles Schwab & Co Inc
Special Custody Acct FBO Customers
Attn: Mutual Funds
211 Main St
San Francisco CA 94105-1905
 

29.70%
   
 
   
   
Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 
15.76%
S-56
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
11.13%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
9.61%
   
 
   
   
LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 
9.12%
   
 
   
   
Pershing LLC
1 Pershing Plz
Jersey City NJ 07399-0001
 
6.12%
   
 
   
   
UBS WM USA
Omni Account M/F
Spec Cdy A/C EBOC UBSFSI
1000 Harbor Blvd
Weehawken NJ 07086-6761
 
5.81%
   
 
   
   
Raymond James
Omnibus for Mutual Funds
House Acct
Attn: Courtney Waller
880 Carillon Parkway
St Petersburg FL 33716-1102
 
5.07%
   
 
   
Nuveen Mid Cap Value Fund
 
Class R3 Shares
 
 

National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 

18.24%
   
 
   
   
State Street Bank and Trust Company
Trustee and/or Custodian
FBO ADP Access Product
1 Lincoln St
Boston MA 02111-2901
 
17.13%
   
 
   
   
PIMS/Prudential Retirement
As Nominee for the Ttee/Cust
Cherokee Health Systems, Inc.
6350 W Andrew Johnson Hwy
Talbott TN 37877-8605
 
16.59%
   
 
   
   
DCGT as Ttee and/or Cust
FBO PLIC Various Retirement Plans
Omnibus
Attn NPIO Trade Desk
711 High Street
Des Moines IA 50392-0001
 
11.99%
   
 
   
S-57
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
Ascensus Trust Co FBOY FBO
HSTA-HSTSO Ret Plan Benefit
PO Box 10758
Fargo ND 58106-0758
 
8.34%
   
 
   
Nuveen Mid Cap Value Fund
 
Class R6 Shares
 
 

DCGT as Ttee and/or Cust
FBO PLIC Various Retirement Plans
Omnibus
Attn NPIO Trade Desk
711 High Street
Des Moines IA 50392-0001
 

32.05%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Account
For Benefit of Customers
Attn Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
12.68%
   
 
   
   
TIAA, FSB Cust/Ttee FBO:
Retirement Plans for which
TIAA Acts as Recordkeeper
Attn: Trust Operations
211 N Broadway Ste 1000
Saint Louis MO 63102-2748
 
8.42%
   
 
   
Nuveen Mid Cap Value Fund
 
Class I Shares
 
 

JP Morgan Chase Bank NA FBO
TIAA-CREF Trust Co as Cust
For IRA Clients
4 Metrotech Ctr
Brooklyn NY 11245-0004
 

30.98%
   
 
   
   
Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 
8.11%
   
 
   
   
Standard Insurance Company
1100 SW 6
th
Ave Ste P11A
Portland OR 97204-1015
 
7.52%
   
 
   
   
Band & Co
C/O US Bank
PO Box 1787
Milwaukee WI 53201-1787
 
6.58%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
5.19%
   
 
   
Nuveen Small Cap Growth Opportunities Fund
 
Class A Shares
 
 

Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 

29.82%
   
 
   
S-58
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
10.19%
   
 
   
Nuveen Small Cap Growth Opportunities Fund
 
Class C Shares
 
 

National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 

26.77%
   
 
   
   
LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 
23.14%
   
 
   
   
Pershing LLC
1 Pershing Plz
Jersey City NJ 07399-0001
 
12.93%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
9.01%
   
 
   
   
Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 
8.94%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Acct FBO Customers
Attn: Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
6.94%
   
 
   
Nuveen Small Cap Growth Opportunities Fund
 
Class R3 Shares
 
 

Mid Atlantic Trust Company FBO
Smith Wilbert Vault, Inc Retirement
1251 Waterfront Pl Ste 525
Pittsburgh PA 15222-4228
 

26.30%
   
 
   
   
Reliance Trust Company FBO
Mid-Hudson 401K
PO Box 28004
Atlanta GA 30358-0004
 
22.85%
   
 
   
   
Mid Atlantic Trust Company FBO
Alliance Defense Fund 401K PSP & Tr
1251 Waterfront Place, Suite 525
Pittsburgh PA 15222-4228
 
12.23%
   
 
   
   
Ascensus Trust Company FBO
ATG 401(K) Profit Sharing Plan
P.O. Box 10758
Fargo ND 58106-0758
 
8.50%
   
 
   
S-59
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
Matrix Trust Company Cust. FBO
Butchershop Creative, LLC
717 17
th
Street
Suite 1300
Denver CO 80202-3304
 
7.39%
   
 
   
   
Mid Atlantic Trust Company FBO
Hill West Architects, LLP 401(K) Pr
1251 Waterfront Place, Suite 525
Pittsburgh PA 15222-4228
 
6.32%
   
 
   
   
Voya Retirement Insurance & Annuity
Company
1 Orange Way
Windsor CT 06095-4773
 
5.25%
   
 
   
Nuveen Small Cap Growth Opportunities Fund
 
Class R6 Shares
 
 

SEI Private Trust Company
C/O TIAA-SWP
1 Freedom Valley Drive
Oaks PA 19456-9989
 

58.77%
   
 
   
   
Pershing LLC
One Pershing Plaza
Jersey City NJ 07399-0002
 
21.42%
   
 
   
   
Matrix Trust Company as Agent for
Newport Trust Company
Select Trusses & Lumber, Inc. 401(K)
35 Iron Point Circle
Suite 300
Folsom CA 95630-8589
 
19.79%
   
 
   
Nuveen Small Cap Growth Opportunities Fund
 
Class I Shares
 
 

JP Morgan Chase Bank NA FBO
TIAA-CREF Trust Co as Cust
For IRA Clients
4 Metrotech Ctr
Brooklyn NY 11245-0004
 

46.04%
   
 
   
   
Pershing LLC
1 Pershing Plz
Jersey City NJ 07399-0001
 
39.47%
   
 
   
   
Band & Co
C/O US Bank
PO Box 1787
Milwaukee WI 53201-1787
 
6.96%
   
 
   
Nuveen Small Cap Select Fund
 
Class A Shares
 
 

Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 

26.68%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Account
For Benefit of Customers
Attn Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
9.22%
S-60
             
Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
 
   
Nuveen Small Cap Select Fund
 
Class C Shares
 
 

Pershing LLC
1 Pershing Plz
Jersey City NJ 07399-0001
 

31.42%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
15.54%
   
 
   
   
LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 
12.02%
   
 
   
   
Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 
10.11%
   
 
   
   
UBS WM USA
Omni Account M/F
Spec Cdy A/C EBOC UBSFSI
1000 Harbor Blvd
Weehawken NJ 07086-6761
 
8.37%
   
 
   
Nuveen Small Cap Select Fund
 
Class R3 Shares
 
 

Reliance Trust Co
FBO MassMutual Omnibus PE
PO Box 28004
Atlanta GA 30358-0004
 

16.45%
   
 
   
   
Massachusetts Mutual
Life Insurance Co
1295 State St MIP C255
Springfield MA 01111-0001
 
13.21%
   
 
   
   
Hartford Life Insurance Company
Separate Account
Attn UIT Operations
PO Box 2999
Hartford CT 06104-2999
 
13.16%
   
 
   
   
State Street Bank and Trust Company
Trustee and/or Custodian
FBO ADP Access Product
1 Lincoln St
Boston MA 02111-2901
 
13.15%
   
 
   
   
DCGT as Ttee and/or Cust
FBO PLIC Various Retirement Plans
Omnibus
Attn NPIO Trade Desk
711 High Street
Des Moines IA 50392-0001
 
5.73%
   
 
   
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Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
Nuveen Small Cap Select Fund
 
Class R6 Shares
 
 

SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2030
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 

16.43%
   
 
   
   
SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2035
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 
16.39%
   
 
   
   
SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2040
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 
14.56%
   
 
   
   
SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2045
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 
12.43%
   
 
   
   
SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2025
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 
11.53%
   
 
   
   
SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2050
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 
9.48%
   
 
   
   
SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2055
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 
6.88%
   
 
   
   
SEI Trust Company OBO Nuveen TIAA
Lifecycle Blend 2020
Attn Tamara McManus
1 Freedom Valley Dr
Oaks PA 19456-9989
 
5.70%
   
 
   
Nuveen Small Cap Select Fund
 
Class I Shares
 
 

National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 

17.70%
   
 
   
   
TD Ameritrade Inc for the
Exclusive Benefit of our Clients
PO Box 2226
Omaha NE 68103-2226
 
15.54%
   
 
   
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Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
Great-West Trust Co LLC Trustee/C
FBO Retirement Plans
8515 E Orchard Rd 2T2
Greenwood Vlg CO 80111-5002
 
13.54%
   
 
   
   
JP Morgan Chase Bank NA FBO
TIAA-CREF Trust Co as Cust
For IRA Clients
4 Metrotech Ctr
Brooklyn NY 11245-0004
 
9.35%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
6.41%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Account
For Benefit of Customers
Attn Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
5.23%
   
 
   
Nuveen Small Cap Value Fund
 
Class A Shares
 
 

Merrill Lynch Pierce Fenner
& Smith Safekeeping
Attn Physical Team
4800 Deer Lake Dr E
Jacksonville FL 32246-6484
 

22.87%
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
11.75%
   
 
   
   
Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 
11.52%
   
 
   
Nuveen Small Cap Value Fund
 
Class C Shares
 
 

Wells Fargo Clearing Services LLC
Special Custody Acct for the
Exclusive Benefit of Customer
2801 Market St
Saint Louis MO 63103-2523
 

15.20%
   
 
   
   
American Enterprise Investment Serv
707 2
nd
Ave S
Minneapolis MN 55402-2405
 
14.30%
   
 
   
   
Raymond James
Omnibus for Mutual Funds
House Acct
Attn: Courtney Waller
880 Carillon Parkway
St Petersburg FL 33716-1102
 
13.93%
   
 
   
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Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
Charles Schwab & Co Inc
Special Custody Acct FBO Customers
Attn: Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
11.35%
   
 
   
   
Merrill Lynch Pierce Fenner & Smith
Attn Physical Team
4800 Deer Lake Dr E
Jacksonville FL 32246-6484
 
9.09%
   
 
   
   
Morgan Stanley Smith Barney LLC
For the Exclusive Bene of its Cust
1 New York Plz Fl 12
New York NY 10004-1932
 
8.58%
   
 
   
   
Pershing LLC
1 Pershing Plz
Jersey City NJ 07399-0001
 
8.58%
   
 
   
   
LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 
6.84%
   
 
   
   
UBS WM USA
Omni Account M/F
Spec Cdy A/C EBOC UBSFSI
1000 Harbor Blvd
Weehawken NJ 07086-6761
 
6.27%
   
 
   
Nuveen Small Cap Value Fund
 
Class R3 Shares
 
 

PIMS/Prudential Retirement
As Nominee for the Ttee/Cust
Prudential SmartSolution IRA
280 Trumbull St.
Hartford CT 06103-3509
 

30.51%
   
 
   
   
AUL Group Retirement Account
Attn Separate Accts
PO Box 368
Indianapolis IN 46206-0368
 
14.38%
   
 
   
   
DCGT as Ttee and/or Cust
FBO PLIC Various Retirement Plans
Omnibus
Attn NPIO Trade Desk
711 High Street
Des Moines IA 50392-0001
 
13.66%
   
 
   
   
PIMS/Prudential Retirement
As Nominee for the Ttee/Cust
Prudential SmartSolution IRA
280 Trumbull St.
Hartford CT 06103-3509
 
6.74%
   
 
   
Nuveen Small Cap Value Fund
 
Class R6 Shares
 
 

Mac & Co
Attn: Mutual Fund Operations
500 Grant Street
Room 151-1010
Pittsburgh PA 15219-2502
 

45.33%
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Name of Fund and Class
   
Name and Address of Owner
 
Percentage of
Ownership
   
 
   
   
MLPF&S for the Benefit of its
Customers
Attn Fund Admin
4800 Deer Lake Dr E Fl 3
Jacksonville FL 32246-6484
 
16.05%
   
 
   
   
TIAA FSB Cust Cust/ttee FBO
Retirement Plans for which
TIAA Acts as Recordkeeper
Attn Trust Operations
211 N Broadway Ste 1000
Saint Louis MO 63102-2748
 
6.30%
   
 
   
   
Diversified Investment Advisors FBO
Transamerica Life Ins Company
440 Mamaroneck Ave
Harrison NY 10528-2418
 
5.27%
   
 
   
Nuveen Small Cap Value Fund
 
Class I Shares
 
 

Charles Schwab & Co Inc
Special Custody A/C FBO Customers
Attn Mutual Funds
211 Main Street
San Francisco CA 94105-1905
 

17.70%
   
 
   
   
Merrill Lynch Pierce Fenner
& Smith Safekeeping
Attn Physical Team
4800 Deer Lake Dr E
Jacksonville FL 32246-6484
 
17.52%
   
 
   
   
National Financial Services LLC
For the Exclusive Benefit of our
Customers
Attn Mutual Fund Dept 4
th
Floor
499 Washington Blvd
Jersey City NJ 07310-1995
 
9.99%
   
 
   
   
LPL Financial
Omnibus Customer Account
Attn Mutual Fund Trading
4707 Executive Dr
San Diego CA 92121-3091
 
7.93%
   
 
   
   
Charles Schwab & Co Inc
Special Custody Account
For Benefit of Customers
Attn Mutual Funds
211 Main St
San Francisco CA 94105-1905
 
5.61%
TAX MATTERS
Federal Income Tax Matters
This section summarizes some of the main U.S. federal income tax consequences of owning shares of a Fund. Tax laws and interpretations change frequently, and this summary does not describe all of the tax consequences to all taxpayers. For example, this summary generally does not describe your situation if you are a corporation, a non-U.S. person, a broker-dealer or other investor with special circumstances, or if you are investing through a tax-deferred account, such as an IRA or 401(k) plan. In addition, this section does not describe your state, local or non-U.S. tax consequences. This federal income tax
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summary is based in part on the advice of counsel to the Funds. The Internal Revenue Service could disagree with any conclusions set forth in this section. In addition, Funds' counsel was not asked to review, and has not reached a conclusion with respect to the federal income tax treatment of the assets to be deposited in the Funds. Consequently, this summary may not be sufficient for you to use for the purpose of avoiding penalties under federal tax law. As with any investment, you should seek advice based on your individual circumstances from your own tax professional.
Fund Status
Each Fund intends to qualify as a “regulated investment company” under the federal tax laws. If a Fund qualifies as a regulated investment company and distributes its income as required by the tax law, the Fund generally will not pay federal income taxes. An adverse federal income tax audit of a partnership that a Fund invests in could result in the Fund being required to pay federal income tax or pay a deficiency dividend (without having received additional cash). If a Fund fails for any taxable year to qualify as a regulated investment company for federal income tax purposes, the Fund itself will generally be subject to federal income taxation (which will reduce the amount of Fund income available for distribution) and your tax consequences will be different from those described in this section (for example, all distributions to you will generally be taxed as ordinary income, even if those distributions are derived from capital gains realized by a Fund).
Qualification as a Regulated Investment Company
As a regulated investment company, a Fund generally will not be subject to federal income tax on the portion of its investment company taxable income (as that term is defined in the Code, but without regard to the deduction for dividends paid) and net capital gain (
i.e.
, the excess of net long-term capital gain over net short-term capital loss), if any, that it distributes to shareholders, provided that it distributes at least 90% of its investment company taxable income and 90% of its net tax-exempt interest income for the year (the “
Distribution Requirement
”) and satisfies certain other requirements of the Code that are generally described below. Each Fund also intends to make such distributions as are necessary to avoid the otherwise applicable 4% non-deductible excise tax on certain undistributed earnings.
In addition to satisfying the Distribution Requirement, each Fund must, among other things, derive in each taxable year at least 90% of its gross income from (1) dividends, interest, certain payments with respect to securities loans, gains from the sale or disposition of stock, securities or non-U.S. currencies and other income (including but not limited to gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities or currencies, and (2) net income derived from an interest in “qualified publicly traded partnerships” (as such term is defined in the Code). Each Fund must also satisfy an asset diversification test in order to qualify as a regulated investment company. Under this test, at the close of each quarter of a Fund’s taxable year, (1) 50% or more of the value of the Fund’s assets must be represented by cash and cash items (including receivables), United States government securities, securities of other regulated investment companies, and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater than 5% of the value of the Fund’s assets and not greater than 10% of the outstanding voting securities of such issuer and (2) not more than 25% of the value of the Fund’s assets may be invested in securities of (a) any one issuer (other than U.S. government securities or securities of other regulated investment companies), or of two or more issuers which the Fund controls and which are engaged in the same, similar or related trades or businesses or (b) in the securities of one or more “qualified publicly traded partnerships” (as such term is defined in the Code). There are certain exceptions for failure to qualify if the failure is for reasonable cause or is
de minimis
and certain corrective action is taken and certain tax payments are made by a Fund.
Distributions
Fund distributions are generally taxable. After the end of each year, you will receive a tax statement that separates your Fund’s distributions into three categories: ordinary income distributions, capital gain dividends and returns of capital. Ordinary income distributions are generally taxed at your ordinary tax rate, however, as further discussed below, certain ordinary income distributions received from the Fund may be taxed at the capital gains tax rates. Some portion of the ordinary income distributions that are attributable to dividends received by a Fund from shares in certain real estate investment trusts may be designated by the Fund as eligible for a deduction for qualified business income, provided certain holding period requirements are satisfied. Generally, you will treat all capital gain dividends as long-term capital gains regardless of how long you have owned your shares. To determine your actual tax liability for your capital gain dividends, you must calculate your total net capital gain or loss for the tax year after
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considering all of your other taxable transactions, as described below. In addition, a Fund may make distributions that represent a return of capital for tax purposes and thus will generally not be immediately taxable to you unless the distribution exceeds your basis in your shares. The tax status of your distributions from your Fund is not affected by whether you reinvest your distributions in additional shares or receive them in cash. The income from your Fund that you must take into account for federal income tax purposes is not reduced by amounts used to pay a deferred sales fee, if any. The tax laws may require you to treat distributions made to you in January as if you had received them on December 31 of the previous year. Income from the Funds may also be subject to a 3.8 percent “Medicare tax.” This tax generally applies to your net investment income if your adjusted gross income exceeds certain threshold amounts, which are $250,000 in the case of married couples filing joint returns and $200,000 in the case of single individuals.
Dividends Received Deduction
A corporation that owns shares generally will not be entitled to the dividends received deduction with respect to many dividends received from the Funds because the dividends received deduction is generally not available for distributions from regulated investment companies. However, certain ordinary income dividends on shares that are attributable to qualifying dividends received by a Fund from certain corporations may be reported by the Fund as being eligible for the dividends received deduction.
If You Sell or Redeem Shares
If you sell or redeem your shares, you will generally recognize a taxable gain or loss. To determine the amount of this gain or loss, you must subtract your tax basis in your shares from the amount you receive in the transaction. Your tax basis in your shares is generally equal to the cost of your shares, generally including sales charges. In some cases, however, you may have to adjust your tax basis after you purchase your shares.
Taxation of Capital Gains and Losses
If you are an individual, the maximum marginal stated federal tax rate for net capital gains is generally 20% (15% or 0% for taxpayers with taxable incomes below certain thresholds). Some capital gains, including some portion of your capital gain dividends, might be attributable to a Fund’s interest in a master limited partnership which may be subject to a maximum marginal stated federal income tax rate of 28%, rather than the rates set forth above. In addition, capital gains received from assets held for more than one year that are considered “unrecaptured section 1250 gain” (which may be the case, for example, with some capital gains attributable to equity interests in real estate investment trusts that constitute interests in entities treated as real estate investment trusts for federal income tax purposes) are taxed at a maximum stated tax rate of 25%. In the case of capital gain dividends, the determination of which portion of the capital gain dividends, if any, is subject to the 28% tax rate or the 25% tax rate will be made based on the rules prescribed by the United States Treasury. Capital gains may also be subject to the “Medicare tax” described above.
Net capital gain equals net long-term capital gain minus net short-term capital loss for the taxable year. Capital gain or loss is long-term if the holding period for the asset is more than one year and is short-term if the holding period for the asset is one year or less. You must exclude the date you purchase your shares to determine your holding period. However, if you receive a capital gain dividend from your Fund and sell your share at a loss after holding it for six months or less, the loss will be recharacterized as long-term capital loss to the extent of the capital gain dividend received. The tax rates for capital gains realized from assets held for one year or less are generally the same as for ordinary income. The Code treats certain capital gains as ordinary income in special situations.
An election may be available to you to defer recognition of the gain attributable to a capital gain dividend if you make certain qualifying investments within a limited time. You should talk to your tax advisor about the availability of this deferral election and its requirements.
Taxation of Certain Ordinary Income Dividends
Ordinary income dividends received by an individual shareholder from a regulated investment company such as a Fund are generally taxed at the same rates that apply to net capital gain (as discussed above), provided certain holding period requirements are satisfied and provided the dividends are attributable to qualifying dividends received by the Fund itself. Distributions with respect to shares in real estate investment trusts are qualifying dividends only in limited circumstances. A Fund will provide notice to its shareholders of the amount of any distribution which may be taken into account as a dividend which is eligible for the capital gains tax rates.
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When a Fund lends portfolio securities to a borrower as described above in “Investment Policies and Techniques—Lending of Portfolio Securities,” payments in lieu of dividends made by the borrower to the Fund will not constitute “qualified dividends” taxable at the same rate as long-term capital gains, even if the actual dividends would have constituted qualified dividends had the Fund held the securities. Such payments in lieu of dividends are taxable as ordinary income.
In-Kind Distributions
Under certain circumstances, as described in the Prospectus, you may receive an in-kind distribution of Fund securities when you redeem shares or when your Fund terminates. This distribution will be treated as a sale for federal income tax purposes and you will generally recognize gain or loss, generally based on the value at that time of the securities and the amount of cash received. The Internal Revenue Service could, however, assert that a loss may not be currently deducted.
Exchanges
If you exchange shares of a Fund for shares of another Nuveen Mutual Fund, the exchange would generally be considered a sale for federal income tax purposes.
Treatment of Fund Expenses
Expenses incurred and deducted by your Fund will generally not be treated as income taxable to you. In some cases, however, you may be required to treat your portion of these Fund expenses as income. You may not be able to deduct some or all of these expenses prior to 2026.
Non-U.S. Tax Credit
If your Fund invests in any non-U.S. securities, the tax statement that you receive may include an item showing non-U.S. taxes your Fund paid to other countries. In this case, dividends taxed to you will include your share of the taxes your Fund paid to other countries. You may be able to deduct or receive a tax credit for your share of these taxes.
Investments in Certain Non-U.S. Corporations
If your Fund holds an equity interest in any “passive foreign investment companies” (“
PFICs
”), which are generally certain foreign corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties or capital gains) or that hold at least 50% of their assets in investments producing such passive income, your Fund could be subject to U.S. federal income tax and additional interest charges on gains and certain distributions with respect to those equity interests, even if all the income or gain is timely distributed to its shareholders. Your Fund will not be able to pass through to its shareholders any credit or deduction for such taxes. Your Fund may be able to make an election that could ameliorate these adverse tax consequences. In this case, your Fund would recognize as ordinary income any increase in the value of such PFIC shares, and as ordinary loss any decrease in such value to the extent it did not exceed prior increases included in income. Under this election, your Fund might be required to recognize in a year income in excess of its distributions from PFICs and its proceeds from dispositions of PFIC stock during that year, and such income would nevertheless be subject to the distribution requirement and would be taken into account for purposes of the 4% excise tax. Dividends paid by PFICs are not treated as qualified dividend income.
Non-U.S. Investors
If you are a non-U.S. investor (i.e., an investor other than a U.S. citizen or resident or a U.S. corporation, partnership, estate or trust), you should be aware that, generally, subject to applicable tax treaties, distributions from a Fund will be characterized as dividends for federal income tax purposes (other than dividends which a Fund properly reports as capital gain dividends) and will be subject to U.S. income taxes, including withholding taxes, subject to certain exceptions described below. However, distributions received by a non-U.S. investor from a Fund that are properly reported by the Fund as capital gain dividends may not be subject to U.S. federal income taxes, including withholding taxes, provided that the Fund makes certain disclosures and certain other conditions are met. Distributions from a Fund that are properly reported by the Fund as an interest-related dividend attributable to certain interest income received by the Fund or as a short-term capital gain dividend attributable to certain net short-term capital gain income received by the Fund may not be subject to U.S. federal income taxes, including withholding taxes when received by certain foreign investors, provided that the Fund makes certain disclosures and certain other conditions are met. These conditions include, but are not limited to, providing valid tax documentation certifying an investor’s non-U.S. status. Distributions to, and the gross proceeds from dispositions of shares by, (i) certain non-U.S. financial institutions that have not entered
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into an agreement with the U.S. Treasury to collect and disclose certain information and are not resident in a jurisdiction that has entered into such an agreement with the U.S. Treasury and (ii) certain other non-U.S. entities that do not provide certain certifications and information about the entity’s U.S. owners, may be subject to a U.S. withholding tax of 30%. However, proposed regulations may eliminate the requirement to withhold on payments of gross proceeds from dispositions.
Capital Loss Carry-Forward
When a Fund has a capital loss carry-forward, it does not make capital gain distributions until the loss has been offset or expired. As of October 31, 2020, the following Funds had capital loss carry-forwards available for federal income tax purposes, expiring in the year indicated.
               
Fund
   
Expiration Year
 
Capital Loss
Carry-Forwards
Nuveen Dividend Value Fund
 
 
Not subject to expiration
 
$
225,916,433
Nuveen Mid Cap Value Fund
 
 
Not subject to expiration
   
19,914,261
Nuveen Small Cap Value Fund
 
 
Not subject to expiration
   
436,351,035
PURCHASE AND REDEMPTION OF FUND SHARES
As described in the Prospectus, the Funds provide you with alternative ways of purchasing Fund shares based upon your individual investment needs and preferences.
Each class of shares of a Fund represents an interest in the same portfolio of investments. Each class of shares is identical in all respects except that each class bears its own class expenses, including distribution and administration expenses, and each class has exclusive voting rights with respect to any distribution or service plan applicable to its shares. As a result of the differences in the expenses borne by each class of shares, net income per share, dividends per share and net asset value per share will vary among a Fund’s classes of shares. There are no conversion, preemptive or other subscription rights.
Shareholders of each class will share expenses proportionately for services that are received equally by all shareholders. A particular class of shares will bear only those expenses that are directly attributable to that class, where the type or amount of services received by a class varies from one class to another. For example, class-specific expenses generally will include distribution and service fees for those classes that pay such fees.
The expenses to be borne by specific classes of shares may include (i) transfer agency fees attributable to a specific class of shares, (ii) printing and postage expenses related to preparing and distributing materials such as shareholder reports, prospectuses and proxy statements to current shareholders of a specific class of shares, (iii) SEC and state securities registration fees incurred by a specific class of shares, (iv) the expense of administrative personnel and services required to support the shareholders of a specific class of shares, (v) litigation or other legal expenses relating to a specific class of shares, (vi) directors’ fees or expenses incurred as a result of issues relating to a specific class of shares, (vii) accounting expenses relating to a specific class of shares and (viii) any additional incremental expenses subsequently identified and determined to be properly allocated to one or more classes of shares.
Class A Shares
Class A shares may be purchased at a public offering price equal to the applicable net asset value per share plus an up-front sales charge imposed at the time of purchase as set forth in the Prospectus. Shareholders may qualify for a reduced sales charge, or the sales charge may be waived in its entirety, as described below. Class A shares are also subject to an annual service fee of 0.25%. See “Distribution and Service Plan.” Set forth below is an example of the method of computing the offering price of the Class A shares of a Fund. The example assumes a purchase on October 31, 2020 of Class A shares of Nuveen Dividend Value Fund aggregating less than $50,000 subject to the schedule of sales charges set forth in the Prospectus at a price based upon the net asset value of the Class A shares.
       
Net asset value per share
 
 
$
11.44
Per share sales charge—5.75% of public offering price (6.12% of net asset value per share)
 
   
0.70
Per share offering price to the public
 
 
$
12.14
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Each Fund receives the entire net asset value of all Class A shares that are sold. The Distributor retains the full applicable sales charge from which it pays the uniform reallowances shown in the Prospectus to financial intermediaries.
Investors may purchase Class A shares only for Fund accounts held with a financial advisor or other financial intermediary, and not directly with a Fund. In addition, Class A shares may not be available through certain financial intermediaries. Please consult with your financial intermediary to determine whether their policies allow for an investment in Class A shares.
Reduction or Elimination of Up-Front Sales Charge on Class A Shares
The availability of the sales charge reductions and waivers discussed below will depend on the policies of the financial intermediary through which you purchase your shares. Information on intermediaries’ variations from the reductions and waivers discussed below are disclosed in the appendix to the Prospectus titled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.” In all instances, it is your responsibility to notify your financial intermediary at the time of purchase of any relationship or other facts qualifying you for sales charge waivers or discounts.
In order to obtain waivers and discounts that are not available through your intermediary, you will have to purchase Fund shares through another intermediary.
Rights of Accumulation.
You may qualify for a reduced sales charge on a purchase of Class A shares of a Fund (and your financial advisor’s commission will be reduced accordingly) if the amount of your purchase, when added to the value that day of all of your shares of any Nuveen Mutual Fund, falls within the amounts stated in the Class A Sales Charges and Commissions table in “How You Can Buy and Sell Shares” in the Prospectus. You or your financial advisor must notify the Distributor or the Fund’s transfer agent of any cumulative discount whenever you plan to purchase Class A shares of a Fund that you wish to qualify for a reduced sales charge.
Letter of Intent.
You may qualify for a reduced sales charge on a purchase of Class A shares of a Fund if you plan to purchase Class A shares of Nuveen Mutual Funds over the next 13 months and the total amount of your purchases would, if purchased at one time, qualify you for one of the reduced sales charges shown in the Class A Sales Charges and Commissions table in “How You Can Buy and Sell Shares” in the Prospectus. In order to take advantage of this option, you must complete the applicable section of the Application Form or sign and deliver to your financial advisor or other financial intermediary or to the Fund’s transfer agent a written Letter of Intent in a form acceptable to the Distributor. A Letter of Intent states that you intend, but are not obligated, to purchase over the next 13 months a stated total amount of Class A shares that would qualify you for a reduced sales charge shown above. You may count shares of all Nuveen Mutual Funds that you already own and any Class C and Class I shares of a Nuveen Mutual Fund that you purchase over the next 13 months towards completion of your investment program, but you will receive a reduced sales charge only on new Class A shares you purchase with a sales charge over the 13 months. You cannot count towards completion of your investment program Class A shares that you purchase without a sales charge through investment of distributions from a Nuveen Mutual Fund or a Nuveen Defined Portfolio (unit investment trusts offered through the Distributor prior to March 1, 2002), or otherwise.
By establishing a Letter of Intent, you agree that your first purchase of Class A shares of a Fund following execution of the Letter of Intent will be at least 5% of the total amount of your intended purchases. You further agree that shares representing 5% of the total amount of your intended purchases will be held in escrow pending completion of these purchases. All dividends and capital gain distributions on Class A shares held in escrow will be credited to your account. If total purchases, less redemptions, prior to the expiration of the 13 month period equal or exceed the amount specified in your Letter of Intent, the Class A shares held in escrow will be transferred to your account. If the total purchases, less redemptions, are less than the amount specified, you must pay the Distributor an amount equal to the difference between the amounts paid for these purchases and the amounts which would have been paid if the higher sales charge had been applied. If you do not pay the additional amount within 20 days after written request by the Distributor or your financial advisor, the Distributor will redeem an appropriate number of your escrowed Class A shares to meet the required payment. By establishing a Letter of Intent, you irrevocably appoint the Distributor as attorney to give instructions to redeem any or all of your escrowed shares, with full power of substitution in the premises.
You or your financial advisor must notify the Distributor or the Funds' transfer agent whenever you make a purchase of Fund shares that you wish to be covered under the Letter of Intent option.
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For purposes of determining whether you qualify for a reduced sales charge as described under
Rights of Accumulation
and
Letter of Intent
, you may include together with your own purchases those made by your spouse or domestic partner and your children under the age of 21 years, whether these purchases are made through a taxable or non-taxable account. You may also include purchases made by a corporation, partnership or sole proprietorship which is 100% owned, either alone or in combination, by any of the foregoing. In addition, a trustee or other fiduciary can count all shares purchased for a single trust, estate or other single fiduciary account that has multiple accounts (including one or more employee benefit plans of the same employer).
Elimination of Sales Charge on Class A Shares.
Class A shares of a Fund may be purchased at net asset value without a sales charge by the following categories of investors:
·
 
investors purchasing $1,000,000 or more;
·
 
investors purchasing shares through the reinvestment of Nuveen Mutual Fund dividends and capital gain distributions;
·
 
investors purchasing shares for accounts held directly with a Fund that do not have a financial intermediary of record;
·
 
current and former trustees/directors of the Nuveen Funds;
·
 
current and retired employees of Nuveen, LLC and its affiliates or their immediate family members (immediate family members are defined as their spouses or domestic partners, parents, children, grandparents, grandchildren, parents-in-law, sons-in-law and daughters-in-law, siblings, a sibling’s spouse and a spouse’s siblings);
·
 
any person who, for at least the last 90 days, has been an officer, director or employee of any financial intermediary, or their immediate family members;
·
 
bank or broker-affiliated trust departments investing funds over which they exercise exclusive discretionary investment authority and that are held in a fiduciary, agency, advisory, custodial or similar capacity;
·
 
investors purchasing on a periodic fee, asset-based fee or no transaction fee basis through a broker-dealer sponsored mutual fund purchase program;
·
 
employer-sponsored retirement plans as defined below, except that, in the case of employer-sponsored retirement plans held through a brokerage account, Class A shares will be available at net asset value without a sales charge only if the broker-dealer has entered into an agreement with the Distributor that allows for such purchases. Intermediaries that have entered into such an agreement are listed in the appendix to the Prospectus titled, “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.” For this purpose, employer-sponsored retirement plans include, but are not limited to, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans, health savings accounts, defined benefit plans, non-qualified deferred compensation plans, Roth 401(k) plans and Roth 403(b) plans, and do not include SEPs, SAR-SEPs, SIMPLE IRAs (except as described below), SIMPLE 401(k) plans, Solo 401(k) plans, KEOGH plans, non-qualified deferred compensation plans and single defined benefit plans;
·
 
SIMPLE IRAs opened before January 1, 2011 where Nuveen Securities, LLC is the broker of record;
·
 
clients of investment advisers, financial planners or other financial intermediaries that charge periodic or asset-based fees for their services; and
·
 
investors purchasing through a financial intermediary that has entered into an agreement with the Distributor to offer the Funds' shares to self-directed investment brokerage accounts and that may or may not charge a transaction fee to its customers. Intermediaries that have entered into such an agreement are listed in the appendix to the Prospectus titled, “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.”
You or your financial advisor must notify the Distributor or your Fund’s transfer agent whenever you make a purchase of Class A shares of any Fund that you wish to be covered under these special sales charge waivers.
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Class A shares of any Fund may be issued at net asset value without a sales charge in connection with the acquisition by a Fund of another investment company. All purchases under the special sales charge waivers will be subject to minimum purchase requirements as established by the Funds.
The reduced sales charge programs may be modified or discontinued by the Funds at any time. For more information about the purchase of Class A shares or the reduced sales charge program, or to obtain the required application forms, call Nuveen Funds toll-free at (800) 257-8787.
Class C Shares
You may purchase Class C shares at a public offering price equal to the applicable net asset value per share without any up-front sales charge. Class C shares are subject to an annual distribution fee of 0.75% to compensate the Distributor for paying your financial advisor or other financial intermediary an ongoing sales commission. Class C shares are also subject to an annual service fee of 0.25% to compensate financial intermediaries for providing you with ongoing financial advice and other account services. The Distributor compensates financial intermediaries for sales of Class C shares at the time of the sale at a rate of 1.00% of the amount of Class C shares purchased, which represents an advance of the first year’s distribution fee of 0.75% plus an advance on the first year’s annual service fee of 0.25%. See “Distribution and Service Plan.”
Class C share purchase orders equaling or exceeding $1,000,000 will not be accepted. In addition, Class C share purchase orders for a single purchaser that, when added to the value that day of all of such purchaser’s shares of any class of any Nuveen Mutual Fund, cause the purchaser’s cumulative total of shares in Nuveen Mutual Funds to equal or exceed $1,000,000 will not be accepted. Your financial intermediary may set a lower maximum for Class C shares. Shareholders purchasing Class C shares should consider whether they would qualify for a reduced or eliminated sales charge on Class A shares that would make purchasing Class A shares a better choice. Class A share sales charges can be reduced or eliminated based on the size of the purchase, or pursuant to a letter of intent or rights of accumulation. See “Reduction or Elimination of Up-Front Sales Charge on Class A Shares” above.
Redemption of Class C shares within 12 months of purchase may be subject to a contingent deferred sales charge (“
CDSC
”) of 1.00% of the lower of the purchase price or redemption proceeds. Class C shares automatically convert to Class A shares after 10 years (effective March 1, 2021, 8 years), thus reducing future annual expenses. Conversions occur during the month in which the 10-year (effective March 1, 2021, 8-year) anniversary of the purchase occurs. Class C shares that have been held for longer than 8 years as of March 1, 2021 will convert to Class A shares in March 2021. The automatic conversion is based on the relative net asset values of the two share classes without the imposition of a sales charge or fee. The automatic conversion of Class C shares to Class A shares may not apply to shares held through group retirement plan recordkeeping platforms of certain financial intermediaries who hold such shares in an omnibus account and do not track participant level share lot aging to facilitate such a conversion. Furthermore, the availability of the automatic Class C share conversion and the terms under which the conversion takes place may depend on the policies and/or system limitations of the financial intermediary through which you hold your shares. Information on intermediaries’ variations from the Class C share conversion discussed above is disclosed in the appendix to the Prospectus, “Variations in Sales Charge Reductions and Waivers Through Certain Intermediaries.”
Investors may purchase Class C shares only for Fund accounts held with a financial advisor or other financial intermediary, and not directly with a Fund. In addition, Class C shares may not be available through certain financial intermediaries. Please consult with your financial intermediary to determine whether their policies allow for an investment in Class C shares.
Reduction or Elimination of Contingent Deferred Sales Charge
The availability of the sales charge reductions and waivers discussed below will depend on the policies of the financial intermediary through which you purchase your shares. Information on intermediaries’ variations from the reductions and waivers discussed below are disclosed in the appendix to the Prospectus titled “Variations in Sales Charge Reductions and Waivers Available Through Certain Intermediaries.” In all instances, it is your responsibility to notify your financial intermediary at the time of purchase of any relationship or other facts qualifying you for sales charge waivers or discounts.
In order to obtain waivers and discounts that are not available through your intermediary, you will have to purchase Fund shares through another intermediary.
Class A shares are normally redeemed at net asset value, without any CDSC. However, in the case of Class A shares purchased at net asset value without a sales charge because the purchase amount
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exceeded $1,000,000, a CDSC is imposed on any redemption within 18 months of purchase. Class C shares are redeemed at net asset value, without any CDSC, except that a CDSC of 1.00% is imposed upon any redemption within 12 months of purchase (except in cases where a shareholder is eligible for a waiver).
In determining whether a CDSC is payable, each Fund will first redeem shares not subject to any charge and then will redeem shares held for the longest period, unless the shareholder specifies another order. No CDSC is charged on shares purchased as a result of automatic reinvestment of dividends or capital gains paid. In addition, no CDSC will be charged on exchanges of shares into another Nuveen Mutual Fund. The holding period is calculated on a monthly basis and begins on the first day of the month in which the purchase was made. The CDSC is assessed on an amount equal to the lower of the then current market value or the cost of the shares being redeemed. Accordingly, no sales charge is imposed on increases of net asset value above the initial purchase price. The Distributor receives the amount of any CDSC shareholders pay.
The CDSC may be waived or reduced under the following circumstances: (i) in the event of total disability (as evidenced by a determination by the federal Social Security Administration) of the shareholder (including a registered joint owner) occurring after the purchase of the shares being redeemed; (ii) in the event of the death of the shareholder (including a registered joint owner); (iii) for redemptions made pursuant to a systematic withdrawal plan, up to 1% monthly, 3% quarterly, 6% semiannually or 12% annually of an account’s net asset value depending on the frequency of the plan as designated by the shareholder; (iv) redemptions in connection with a payment of account or plan fees; (v) redemptions in connection with the exercise of a Fund’s right to redeem all shares in an account that does not maintain a certain minimum balance; (vi) upon an optional conversion by a Fund of Class C shares held in an account which no longer has a financial intermediary of record into Class A shares; (vii) redemptions of Class C shares in cases where the Distributor did not advance the first year’s service and distribution fees when such shares were purchased; and (viii) redemptions of Class A shares where the Distributor did not pay a sales commission when such shares were purchased. If a Fund waives or reduces the CDSC, such waiver or reduction would be uniformly applied to all Fund shares in the particular category. In waiving or reducing a CDSC, the Funds will comply with the requirements of Rule 22d-1 under the 1940 Act.
In addition, the CDSC will be waived in connection with the following redemptions of shares held by an employer-sponsored qualified defined contribution retirement plan: (i) partial or complete redemptions in connection with a distribution without penalty under Section 72(t) of the Code from a retirement plan: (a) upon attaining age 59½, (b) as part of a series of substantially equal periodic payments, or (c) upon separation from service and attaining age 55; (ii) partial or complete redemptions in connection with a qualifying loan or hardship withdrawal; (iii) complete redemptions in connection with termination of employment, plan termination or transfer to another employer’s plan or IRA; and (iv) redemptions resulting from the return of an excess contribution. The CDSC will also be waived in connection with the following redemptions of shares held in an IRA account: (i) for redemptions made pursuant to an IRA systematic withdrawal based on the shareholder’s life expectancy including, but not limited to, substantially equal periodic payments described in Code Section 72(t)(A)(iv) prior to age
59½; and (ii) for redemptions to satisfy required minimum distributions from an IRA account upon reaching the qualified age based on applicable laws and regulations (with the maximum amount subject to this waiver being based only upon the shareholder’s Nuveen IRA
accounts).
Class R3 Shares
Class R3 shares are available from each Fund except Nuveen Large Cap Select Fund for purchase at the offering price, which is the net asset value per share without any up-front sales charge. Class R3 shares are subject to annual distribution and service fees of 0.50% of the Funds’ average daily net assets. The annual 0.25% service fee compensates your financial advisor or other financial intermediary for providing ongoing service to you. The annual 0.25% distribution fee compensates the Distributor for paying your financial advisor or other financial intermediary an ongoing sales commission.
Investors may purchase Class R3 shares only for Fund accounts held with a financial advisor or other financial intermediary, and not directly with a Fund.
Class R3 shares are only available for purchase by eligible retirement plans. Eligible retirement plans include, but are not limited to, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans, non-qualified deferred compensation plans and health care benefit funding plans. In addition, Class R3 shares are available only to retirement plans
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where Class R3 shares are held on the books of the Funds through omnibus accounts (either at the retirement plan level or at the level of the retirement plan’s financial intermediary). Class R3 shares are not available to traditional and Roth IRAs, Coverdell Education Savings Accounts, SEPs, SAR-SEPs, SIMPLE IRAs or individual 403(b) plans.
The administrator of a retirement plan or employee benefits office can provide plan participants with detailed information on how to participate in the retirement plan and how to elect a Fund as an investment option. Retirement plan participants may be permitted to elect different investment options, alter the amounts contributed to the retirement plan, or change how contributions are allocated among investment options in accordance with the retirement plan’s specific provisions. The retirement plan administrator or employee benefits office should be consulted for details. For questions about their accounts, participants should contact their employee benefits office, the retirement plan administrator, or the organization that provides recordkeeping services for the retirement plan.
Eligible retirement plans may open an account and purchase Class R3 shares by contacting any financial intermediary authorized to sell Class R3 shares of the Funds. Financial intermediaries may provide or arrange for the provision of some or all of the shareholder servicing and account maintenance services required by retirement plan accounts and their retirement plan participants, including, without limitation, transfers of registration and dividend payee changes. Financial intermediaries may also perform other functions, including generating confirmation statements, and may arrange with retirement plan administrators for other investment or administrative services.
Financial intermediaries may independently establish and charge retirement plans and retirement plan participants transaction fees and/or other additional amounts for such services, which may change over time. Similarly, retirement plans may charge retirement plan participants for certain expenses. These fees and additional amounts could reduce investment returns in Class R3 shares of the Funds.
Financial intermediaries and retirement plans may have omnibus accounts and similar arrangements with a Fund and may be paid for providing shareholder servicing and other services. A financial intermediary or retirement plan may be paid for its services directly or indirectly by the Funds or the Distributor. The Distributor may pay a financial intermediary an additional amount for sub-transfer agency or other administrative services. Such sub-transfer agency or other administrative services may include, but are not limited to, the following: processing and mailing trade confirmations, monthly statements, prospectuses, annual reports, semiannual reports and shareholder notices and other required communications; capturing and processing tax data; issuing and mailing dividend checks to shareholders who have selected cash distributions; preparing record date shareholder lists for proxy solicitations; collecting and posting distributions to shareholder accounts; and establishing and maintaining systematic withdrawals, automated investment plans and shareholder account registrations. Your retirement plan may establish various minimum investment requirements for Class R3 shares of the Funds and may also establish certain privileges with respect to purchases, redemptions and exchanges of Class R3 shares or the reinvestment of dividends. Retirement plan participants should contact their retirement plan administrator with respect to these issues. This SAI should be read in conjunction with the retirement plan’s and/or the financial intermediary’s materials regarding their fees and services.
Class R6 Shares
Class R6 shares are available from each Fund except Nuveen Large Cap Select Fund to the following classes of investors, provided they meet the minimum investment and other eligibility requirements set forth below:
·
 
Qualified retirement plans held in plan-level or omnibus accounts, including 401(k) plans, employer sponsored 403(b) plans, profit sharing pension plans, money purchase pension plans, target benefit plans, defined benefit pension plans and Taft Hartley multi-employer pension plans;
·
 
Foundations and endowment funds;
·
 
Any state, county, or city, or its instrumentality, department, authority or agency;
·
 
457 plans, including 457(b) governmental entity plans and tax exempt plans;
·
 
Omnibus or other pooled accounts registered to insurance companies, trust companies, bank trust departments, registered investment advisor firms and family offices;
·
 
Investment companies;
·
 
Corporations, including corporate non-qualified deferred compensation plans of such corporations;
·
 
Collective investment trusts;
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·
 
Discretionary accounts managed by the Adviser or its affiliates;
·
 
Health savings accounts held in plan-level or omnibus accounts; and
·
 
529 savings plans held in plan-level or omnibus accounts.
There is no minimum initial investment for qualified retirement plans, health savings accounts and 529 savings plans; however, the shares must be held through plan-level or omnibus accounts held on the books of the Funds. Class R6 shares are also available for purchase by clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services. Such clients may include individuals, corporations, endowments and foundations. The minimum initial investment for such clients is $100,000, but this minimum will be waived for clients of financial intermediaries that have accounts holding Class R6 shares with an aggregate value of at least $100,000. The Distributor may also waive the minimum for clients of financial intermediaries anticipated to reach this Class R6 share holdings level. All other eligible investors must meet a minimum initial investment of at least $1,000,000 in each Fund. Such minimum investment requirement may be applied collectively to affiliated accounts, in the discretion of the Distributor. Class R6 shares may be purchased through financial intermediaries only if such intermediaries have entered into an agreement with the Distributor to offer Class R6 shares. Class R6 shares are only available in cases where neither the investor nor the intermediary will receive any commission payments, account servicing fees, record keeping fees, 12b-1 fees, sub-transfer agent fees, so called “finder’s fees,” administration fees or similar fees with respect to Class R6 shares. Class R6 shares are not available directly to traditional or Roth IRAs, Coverdell Savings Accounts, Keoghs, SEPs, SARSEPs, or SIMPLE IRAs.
Class R6 shares also are available for purchase, with no minimum initial investment, by the following categories of investors:
·
 
current and former trustees/directors of any Nuveen Fund, and their immediate family members (“
immediate family members
” are defined as spouses or domestic partners, parents, children, grandparents, grandchildren, parents-in-law, sons-in-law and daughters-in-law, siblings, a sibling’s spouse and a spouse’s siblings);
·
 
officers of Nuveen, LLC and its affiliates, and their immediate family members; and
·
 
full-time and retired employees of Nuveen, LLC and its affiliates, and their immediate family members, including any corporation, partnership, sole proprietorship or other business organization that is wholly owned by one or more of such persons.
Class I Shares
Class I shares are available for purchase by clients of financial intermediaries who charge such clients an ongoing fee for advisory, investment, consulting or related services. Such clients may include individuals, corporations, endowments and foundations. The minimum initial investment for such clients is $100,000, but this minimum will be lowered to $250 for clients of financial intermediaries that have accounts holding Class I shares with an aggregate value of at least $100,000. The Distributor may also lower the minimum to $250 for clients of financial intermediaries anticipated to reach this Class I share holdings level.
Class I shares are also available for purchase by family offices and their clients. A family office is a company that provides certain financial and other services to a high net worth family or families. The minimum initial investment for family offices and their clients is $100,000, but this minimum will be lowered to $250 for clients of family offices that have accounts holding Class I shares with an aggregate value of at least $100,000. The Distributor may also lower the minimum to $250 for clients of family offices anticipated to reach this Class I share holdings level.
Class I shares also are available for purchase, with no minimum initial investment, by the following categories of investors:
·
 
employer-sponsored
retirement
plans,
except
SEPs,
SAR-SEPs,
SIMPLE
IRAs
and
KEOGH
plans;
·
 
bank or broker-affiliated trust departments investing funds over which they exercise exclusive discretionary investment authority and that are held in a fiduciary, agency, advisory, custodial or similar capacity;
·
 
advisory accounts of Nuveen Fund Advisors and its affiliates, including other Nuveen Mutual Funds whose investment policies permit investments in other investment companies;
S-75
·
 
investors purchasing through a brokerage platform of a financial intermediary that has an agreement with the Distributor to offer such shares solely when acting as an agent for such investors. Investors transacting through a financial intermediary’s brokerage platform may be required to pay a commission directly to the intermediary;
·
 
any registered investment company that is not affiliated with the Nuveen Funds and which invests in securities of other investment companies;
·
 
any plan organized under section 529 under the Code (i.e., a 529 plan);
·
 
participants in the TIAA IRA or TIAA-CREF Investment Solutions IRA;
·
 
current and former trustees/directors of any Nuveen Fund, and their immediate family members (“
immediate family members
” are defined as spouses or domestic partners, parents, children, grandparents, grandchildren, parents-in-law, sons-in-law and daughters-in-law, siblings, a sibling’s spouse and a spouse’s siblings);
·
 
officers of Nuveen, LLC and its affiliates, and their immediate family members;
·
 
full-time and retired employees of Nuveen, LLC and its affiliates, and their immediate family members, including any corporation, partnership, sole proprietorship or other business organization that is wholly owned by one or more of such persons; and
·
 
any person who, for at least the last 90 days, has been an officer, director or employee of any financial intermediary, and their immediate family members.
Holders of Class I shares may purchase additional Class I shares using dividends and capital gain distributions on their shares.
If you are eligible to purchase either Class I shares or Class A shares without a sales charge at net asset value, you should be aware of the differences between these two classes of shares. Class A shares are subject to an annual service fee to compensate financial intermediaries for providing you with ongoing account services. Class I shares are not subject to a distribution or service fee and, consequently, holders of Class I shares may not receive the same types or levels of services from financial intermediaries. In choosing between Class A shares and Class I shares, you should weigh the benefits of the services to be provided by financial intermediaries against the annual service fee imposed upon the Class A shares.
A financial intermediary through which you hold Class I shares may have the authority under its account agreement to exchange your Class I shares for another class of Fund shares having higher expenses than Class I shares if you withdraw from or are no longer eligible for the intermediary’s fee-based program or under other circumstances. You may be subject to the sales charges and service and/or distribution fees applicable to the share class that you receive in such an exchange. You should contact your financial intermediary for more information about your eligibility to purchase Class I shares and the class of shares you would receive in an exchange if you no longer meet Class I eligibility requirements.
Shareholder Programs
Exchange Privilege
You may exchange Fund shares into an identically registered account for the same class of another Nuveen Mutual Fund available in your state. Your exchange must meet the minimum purchase requirements of the fund into which you are exchanging.
You may also, under certain limited circumstances, exchange between certain classes of shares of the same Fund. An exchange between classes of shares of the same Fund may not be considered a taxable event; please consult your own tax advisor for further information.
If you hold your shares directly with a Fund, you may exchange your shares by either sending a written request to the applicable Fund, c/o Nuveen Funds, P.O. Box 219140, Kansas City, Missouri 64121-9140 or by calling Nuveen Funds toll free at (800) 257-8787.
If you exchange shares between different Nuveen Mutual Funds and your shares are subject to a CDSC, no CDSC will be charged at the time of the exchange. However, if you subsequently redeem the shares acquired through the exchange, the redemption may be subject to a CDSC, depending on when you purchased your original shares and the CDSC schedule of the fund from which you exchanged your shares. If you exchange between classes of shares of the same Fund and your original shares are subject to a CDSC, the CDSC will be assessed at the time of the exchange.
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For federal income tax purposes, an exchange between different Nuveen Mutual Funds constitutes a sale and purchase of shares and may result in capital gain or loss. Before making any exchange, you should obtain the Prospectus for the Nuveen Mutual Fund you are purchasing and read it carefully. If the registration of the account for the Fund you are purchasing is not exactly the same as that of the fund account from which the exchange is made, written instructions from all holders of the account from which the exchange is being made must be received, with signatures guaranteed by a member of an approved Medallion Signature Guarantee Program or in such other manner as may be acceptable to the Fund. You may also exchange shares by telephone if you authorize telephone exchanges by checking the applicable box on the Application Form or by calling Nuveen Funds toll-free at (800) 257-8787 to obtain an authorization form. Each Fund reserves the right to revise or suspend the exchange privilege, limit the amount or number of exchanges, or reject any exchange. Shareholders will be provided with at least 60 days’ notice of any material revision to or termination of the exchange privilege.
The exchange privilege is not intended to permit a Fund to be used as a vehicle for short-term trading. Excessive exchange activity may interfere with portfolio management, raise expenses and otherwise have an adverse effect on all shareholders. In order to limit excessive exchange activity and in other circumstances where Fund management believes doing so would be in the best interest of the Fund, each Fund reserves the right to revise or terminate the exchange privilege, or limit the amount or number of exchanges or reject any exchange. Shareholders would be notified of any such action to the extent required by law. See “Frequent Trading Policy” below.
Reinstatement Privilege
If you redeemed Class A or Class C shares of a Nuveen Mutual Fund, you have up to one year to reinvest all or part of the full amount of the redemption in the same class of shares of any Nuveen Mutual Fund at net asset value. This reinstatement privilege can be exercised only once for any redemption, and reinvestment will be made at the net asset value next calculated after reinstatement of the appropriate class of Fund shares. If you reinstate shares that were subject to a CDSC, any shares purchased pursuant to the reinstatement privilege will not be subject to a CDSC. The federal income tax consequences of any capital gain realized on a redemption will not be affected by reinstatement, but a capital loss may be disallowed in whole or in part depending on the timing, the amount of the reinvestment and the fund from which the redemption occurred. Your financial advisor will not receive a commission on shares purchased pursuant to the reinstatement privilege.
Suspension of Right of Redemption
Each Fund may suspend the right of redemption of Fund shares or delay payment more than seven days (a) during any period when the New York Stock Exchange (the “
NYSE
”) is closed (other than customary weekend and holiday closings), (b) when trading in the markets the Fund normally utilizes is restricted or an emergency exists as determined by the SEC so that trading of the Fund’s investments or determination of its net asset value is not reasonably practicable, or (c) for any other periods that the SEC by order may permit for protection of Fund shareholders.
Redemption In-Kind
The
Funds
have
reserved
the
right
to
redeem
in-kind
(that
is,
to
pay
redemption
requests
in
cash and
portfolio
securities,
or
wholly
in
portfolio
securities).
Pursuant
to
a
notice
of
election
under Rule 18f-1, the Funds voluntarily have committed to pay in cash all requests for redemption by any shareholder, limited as to each shareholder during any 90-day period to the lesser of $250,000 or 1% of the net asset value of a Fund at the beginning of the 90-day period.
Frequent Trading Policy
The Funds' Frequent Trading Policy is as follows:
Nuveen Mutual Funds are intended as long-term investments and not as short-term trading vehicles. At the same time, the Funds recognize the need of investors to periodically make purchases and redemptions of Fund shares when rebalancing their portfolios and as their financial needs or circumstances change. Nuveen Mutual Funds have adopted the following Frequent Trading Policy that seeks to balance these needs against the potential for higher operating costs, portfolio management disruption and other inefficiencies that can be caused by excessive trading of Fund shares.
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1.
 
Definition
of
Round
Trip
A Round Trip trade is the purchase and subsequent redemption of Fund shares, including by exchange. Each side of a Round Trip trade may be comprised of either a single transaction or a series of closely-spaced transactions.
2.
 
Round Trip Trade
Limitations
Nuveen Mutual Funds limit the frequency of Round Trip trades that may be placed in a Fund. Subject to certain exceptions noted below, the Funds limit an investor to two Round Trips per trailing 60-day period.
3.
 
Enforcement
Trades placed in violation of the foregoing policies are subject to rejection or cancellation by Nuveen
Mutual
Funds.
Nuveen
Mutual
Funds
may
also
bar
an
investor
(and/or
the
investor’s
financial advisor)
who
has
violated
these
policies
from
opening
new
accounts
with
the
Funds
and
may
restrict the
investor’s
existing
account(s)
to
redemptions
only.
Nuveen
Mutual
Funds
reserve
the
right,
in
their sole
discretion,
to
(a)
interpret
the
terms
and
application
of
these
policies,
(b)
waive
unintentional
or minor violations (including transactions below certain dollar thresholds) if Nuveen Mutual Funds determine
that
doing
so
does
not
harm
the
interests
of
Fund
shareholders,
and
(c)
exclude
certain classes
of
redemptions
from
the
application
of
the
trading
restrictions
set
forth
above.
Nuveen Mutual Funds reserve the right to impose restrictions on purchases or exchanges that are more restrictive than those stated above if they determine, in their sole discretion, that a proposed transaction or series of transactions involve market timing or excessive trading that is likely to be detrimental to the Funds. The Funds may also modify or suspend the Frequent Trading Policy without notice during periods of market stress or other unusual circumstances.
The ability of Nuveen Mutual Funds to implement the Frequent Trading Policy for omnibus accounts at certain financial intermediaries may be dependent on receiving from those intermediaries sufficient shareholder information to permit monitoring of trade activity and enforcement of the Funds' Frequent Trading Policy. In addition, the Funds may rely on a financial intermediary’s policy to restrict market timing and excessive trading if the Funds believe that the policy is reasonably designed to prevent market timing that is detrimental to the Funds. Such policy may be more or less restrictive than the Funds' Policy. The Funds cannot ensure that these financial intermediaries will in all cases apply the Funds' policy or their own policies, as the case may be, to accounts under their control.
Exclusions from the Frequent Trading Policy
As stated above, certain redemptions are eligible for exclusion from the Frequent Trading Policy, including: (i) redemptions or exchanges by shareholders investing through the fee-based platforms of certain financial intermediaries (where the intermediary charges an asset-based or comprehensive “wrap” fee for its services) that are effected by the financial intermediaries in connection with systematic portfolio rebalancing; (ii) when there is a verified trade error correction, which occurs when a dealer firm sends a trade to correct an earlier trade made in error and then the firm sends an explanation to the Nuveen Mutual Funds confirming that the trade is actually an error correction;
(iii) in the event of total disability (as evidenced by a determination by the federal Social Security Administration) of the shareholder (including a registered joint owner) occurring after the purchase of the shares being redeemed; (iv) in the event of the death of the shareholder (including a registered joint owner); (v) redemptions made pursuant to a systematic withdrawal plan, up to 1% monthly,
3% quarterly, 6% semiannually or 12% annually of an account’s net asset value depending on the frequency of the plan as designated by the shareholder; (vi) redemptions of shares that were purchased through a systematic investment program; (vii) involuntary redemptions caused by operation of law; (viii) redemptions in connection with a payment of account or plan fees; (ix) redemptions or exchanges by any “fund of funds” advised by the Adviser; (x) redemptions or exchanges by certain 529 plans; and (xi) redemptions in connection with the exercise of a Fund’s right to redeem all shares in an account that does not maintain a certain minimum balance or that the Board has determined may have material adverse consequences to the shareholders of a
Fund.
In addition, the following redemptions of shares by an employer-sponsored qualified defined contribution retirement plan are excluded from the Frequent Trading Policy: (i) partial or complete redemptions in connection with a distribution without penalty under Section 72(t) of the Code from a retirement plan: (a) upon attaining age 59½; (b) as part of a series of substantially equal periodic payments; or (c) upon separation from service and attaining age 55; (ii) partial or complete redemptions in connection with a qualifying loan or hardship withdrawal; (iii) complete redemptions in connection with
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termination of employment, plan termination, transfer to another employer’s plan or IRA or changes in a plan’s recordkeeper; and (iv) redemptions resulting from the return of an excess contribution. Also, the following redemptions of shares held in an IRA account are excluded from the application of the Frequent Trading Policy: (i) redemptions made pursuant to an IRA systematic withdrawal based on the shareholder’s life expectancy including, but not limited to, substantially equal periodic payments described in Code Section 72(t)(A)(iv) prior to age 59½; and (ii) redemptions to satisfy required minimum distributions from an IRA account due to a shareholder reaching the qualified age based on applicable laws and regulations.
Distribution and Service Plan
The Funds have adopted a plan (the “
Plan
”) pursuant to Rule 12b-1 under the 1940 Act. Rule 12b-1 provides in substance that a mutual fund may not engage directly or indirectly in financing any activity which is primarily intended to result in the sale of shares, except pursuant to a plan adopted under the Rule. The Plan authorizes a Fund to pay the Distributor distribution and/or shareholder servicing fees on a Fund’s Class A, Class C and Class R3 shares as described below. The distribution fees under the Plan are used for the primary purpose of compensating participating intermediaries for their sales of a Fund. The shareholder servicing fees are used primarily for the purpose of providing compensation for the ongoing servicing and/or maintenance of shareholder accounts. Pursuant to the Plan, Class C and Class R3 shares are subject to an annual distribution fee and Class A, Class C and Class R3 shares are subject to the annual service fees (distribution and service fees collectively referred to herein as “
12b-1 fees
”). The 12b-1 fees are based on the average daily net assets of the class of shares of a Fund and are as follows:
                   
   
Annual Distribution Fee
 
Annual Service Fee
 
Total 12b-1 Fee
Class A
 
 
—
   
0.25
%
 
0.25
%
Class C
 
 
0.75
%
 
0.25
%
 
1.00
%
Class R3
 
 
0.25
%
 
0.25
%
 
0.50
%
Class R6 and Class I shares are not subject to either distribution or service fees.
The distribution fee applicable to Class C and Class R3 shares under each Fund’s Plan compensates the Distributor for expenses incurred in connection with the distribution of Class C and Class R3 shares, respectively. These expenses include payments to financial intermediaries, including the Distributor, who are brokers of record with respect to the Class C and Class R3 shares, as well as, without limitation, expenses of printing and distributing Prospectuses to persons other than shareholders of each Fund, expenses of preparing, printing and distributing advertising and sales literature and reports to shareholders used in connection with the sale of Class C and Class R3 shares, certain other expenses associated with the distribution of Class C and Class R3 shares, and any other distribution-related expenses that may be authorized from time to time by the Board of Directors.
The service fee applicable to Class A, Class C and Class R3 shares under each Fund’s Plan is used to compensate financial intermediaries in connection with the provision of ongoing account services to shareholders. These services may include establishing and maintaining shareholder accounts, answering shareholder inquiries and providing other personal services to shareholders.
During the fiscal year ended October 31, 2020, the Funds incurred 12b-1 fees pursuant to their respective Plan in the amounts set forth in the table below. 12b-1 fees are calculated and accrued daily and paid monthly or at such other intervals as the Board of Directors may determine. As noted above, no 12b-1 fees are paid with respect to Class R6 or Class I shares. For this period, substantially all of the 12b-1 service fees on Class A shares were paid out as compensation to financial intermediaries for providing services to shareholders relating to their investments. To compensate for commissions advanced to financial intermediaries, all 12b-1 fees on Class C shares during the first year following a purchase are retained by the Distributor. After the first year following a purchase, 12b-1 fees on Class C shares are paid to financial intermediaries.
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12b-1 Fees Incurred by Each Fund for the Fiscal Year Ended October 31, 2020
Nuveen Dividend Value Fund:
   
Class A
 
 
 
$ 458,784
Class C
 
 
176,661
Class R3
 
 
95,397
     
Nuveen Large Cap Select Fund:
   
Class A
 
 
60,697
Class C
 
 
20,106
     
Nuveen Mid Cap Growth Opportunities Fund:
   
Class A
 
 
433,849
Class C
 
 
54,294
Class R3
 
 
95,842
     
Nuveen Mid Cap Value Fund:
   
Class A
 
 
112,978
Class C
 
 
58,977
Class R3
 
 
43,487
     
Nuveen Small Cap Growth Opportunities Fund:
   
Class A
 
 
91,241
Class C
 
 
16,957
Class R3
 
 
6,637
     
Nuveen Small Cap Select Fund:
   
Class A
 
 
125,057
Class C
 
 
8,994
Class R3
 
 
23,552
     
Nuveen Small Cap Value Fund:
   
Class A
 
 
347,617
Class C
 
 
311,073
Class R3
 
 
136,428
The Plan is a “compensation-type” plan under which the Distributor is entitled to receive the distribution and shareholder servicing fees regardless of whether its actual distribution and shareholder servicing expenses are more or less than the amount of the fees. It is therefore possible that the Distributor may realize a profit in a particular year as a result of these payments. The Plan recognizes that the Distributor and the Adviser, in their discretion, may from time to time use their own assets to pay for certain additional costs of distributing Class A, Class C and Class R3 shares. Any such arrangements to pay such additional costs may be commenced or discontinued by the Distributor or the Adviser at any time.
Under each Fund’s Plan, the Fund will report quarterly to the Board of Directors for its review of all amounts expended per class of shares under the Plan. The Plan may be terminated at any time with respect to any class of shares, without the payment of any penalty, by a vote of a majority of the independent directors who have no direct or indirect financial interest in the Plan or by vote of a majority of the outstanding voting securities of such class. The Plan may be renewed from year to year if approved by a vote of the Board of Directors and a vote of the independent directors who have no direct or indirect financial interest in the Plan cast in person at a meeting called for the purpose of voting on the Plan. The Plan may be continued only if the directors who vote to approve such continuance conclude, in the exercise of reasonable business judgment and in light of their fiduciary duties under applicable law, that there is a reasonable likelihood that the Plan will benefit the Fund and its shareholders. The Plan may not be amended to increase materially the cost which a class of shares may bear under the Plan without the approval of the shareholders of the affected class, and any other material amendments of the Plan must be approved by the independent directors by a vote cast in person at a meeting called for the purpose of
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considering such amendments. During the continuance of the Plan, the selection and nomination of the independent directors of NIF will be committed to the discretion of the independent directors then in office. With the exception of the Distributor and its affiliates, no “interested person” of the Funds, as that term is defined in the 1940 Act, and no director of the Funds has a direct or indirect financial interest in the operation of the Plan or any related agreement.
If a Fund closes to new investors, it may continue to make payments under the Plan. Such payments would be made for the various services provided to existing shareholders by the participating intermediaries receiving such payments.
General Matters
The Funds have authorized one or more brokers to accept on their behalf purchase and redemption orders. Such brokers are authorized to designate other intermediaries to accept purchase and redemption orders on the Funds' behalf. The Funds will be deemed to have received a purchase or redemption order when an authorized broker or, if applicable, a broker’s authorized designee accepts the order. Customer orders received by such broker (or their designee) will be priced at the applicable Fund’s net asset value next computed after they are accepted by an authorized broker (or their designee). Orders accepted by an authorized broker (or their designee) before the close of regular trading on the NYSE will receive that day’s share price; orders accepted after the close of trading will receive the next business day’s share price.
If you choose to invest in a Fund, an account will be opened and maintained for you by DST, the Funds' shareholder services agent. Shares will be registered in the name of the investor or the investor’s financial advisor. The Funds do not issue share certificates. A change in registration or transfer of shares held in the name of a financial advisor may only be made by an order in good standing form from the financial advisor acting on the investor’s behalf. Each Fund reserves the right to reject any purchase order and to waive or increase minimum investment requirements.
Distribution Arrangements
The Distributor sells shares to or through brokers, dealers, banks or other qualified financial intermediaries (collectively referred to as “
Dealers
”), or others, in a manner consistent with the then effective registration statement of NIF. Pursuant to the Distribution Agreement, the Distributor, at its own expense, finances certain activities incident to the sale and distribution of the Funds' shares, including printing and distributing of prospectuses and statements of additional information to other than existing shareholders, the printing and distributing of sales literature, advertising and payment of compensation and giving of concessions to Dealers.
The Distributor receives for its services the excess, if any, of the sales price of a Fund’s shares less the net asset value of those shares, and reallows a majority or all of such amounts to the Dealers who sold the shares. The Distributor also receives distribution fees pursuant to a distribution plan adopted by NIF pursuant to Rule 12b-1 and described herein under “Distribution and Service Plan.” The Distributor also receives any CDSCs imposed on redemptions of shares. The Distributor may also act as a Dealer.
The following tables set forth the amount of underwriting commissions paid by the Funds, the amount of such commissions retained by the Distributor, and the amount of compensation on redemptions and repurchases for the specified periods. All figures are presented in thousands and are rounded to the nearest thousand.
                               
 
Total Underwriting Commissions
Fund
 
Fiscal Year
Ended
October 31, 2018
 
Fiscal Year
Ended
October 31, 2019
 
Fiscal Year
Ended
October 31, 2020
Nuveen Dividend Value Fund
 
$
99
   
$
105
   
$
62
 
Nuveen Large Cap Select Fund
 
 
112
     
13
     
11
 
Nuveen Mid Cap Growth Opportunities Fund
 
 
34
     
41
     
49
 
Nuveen Mid Cap Value Fund
 
 
89
     
60
     
28
 
Nuveen Small Cap Growth Opportunities Fund
 
 
42
     
25
     
14
 
Nuveen Small Cap Select Fund
 
 
29
     
15
     
9
 
Nuveen Small Cap Value Fund
 
 
544
     
150
     
73
 
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Underwriting Commissions Retained by
Distributor
Fund
 
Fiscal Year
Ended
October 31, 2018
 
Fiscal Year
Ended
October 31, 2019
 
Fiscal Year
Ended
October 31, 2020
Nuveen Dividend Value Fund
 
$
11
   
$
11
   
$
7
 
Nuveen Large Cap Select Fund
 
 
11
     
1
     
1
 
Nuveen Mid Cap Growth Opportunities Fund
 
 
4
     
5
     
5
 
Nuveen Mid Cap Value Fund
 
 
10
     
6
     
3
 
Nuveen Small Cap Growth Opportunities Fund
 
 
5
     
3
     
2
 
Nuveen Small Cap Select Fund
 
 
4
     
2
     
1
 
Nuveen Small Cap Value Fund
 
 
59
     
17
     
8
 
                         
 
Compensation on Redemptions and
Repurchases
Fund
 
Fiscal Year
Ended
October 31, 2018
 
Fiscal Year
Ended
October 31, 2019
 
Fiscal Year
Ended
October 31, 2020
Nuveen Dividend Value Fund
 
$
2
   
$
3
   
$
1
 
Nuveen Large Cap Select Fund
 
 
—
     
—
     
1
 
Nuveen Mid Cap Growth Opportunities Fund
 
 
1
     
—
     
7
 
Nuveen Mid Cap Value Fund
 
 
2
     
2
     
1
 
Nuveen Small Cap Growth Opportunities Fund
 
 
1
     
1
     
1
 
Nuveen Small Cap Select Fund
 
 
1
     
2
     
—
 
Nuveen Small Cap Value Fund
 
 
18
     
25
     
5
 
To help financial advisors and investors better understand and more efficiently use the Funds to reach their investment goals, the Distributor may advertise and create specific investment programs and systems. For example, this may include information on how to use the Funds to accumulate assets for future education needs or periodic payments such as insurance premiums. The Distributor may produce software, electronic information sites or additional sales literature to promote the advantages of using the Funds to meet these and other specific investor needs. In addition, wholesale representatives of the Distributor may visit financial advisors on a regular basis to educate them about the Funds and to encourage the sale of Fund shares to their clients. The costs and expenses associated with these efforts may include travel, lodging, sponsorship at educational seminars and conferences, entertainment and meals to the extent permitted by law. Nuveen wholesalers may receive additional compensation if they meet certain targets for sales of one or more Nuveen Mutual Funds.
Additional Payments to Financial Intermediaries and Other Payments
As described in the Prospectus and elsewhere in this SAI, intermediaries that sell shares of the Nuveen Mutual Funds or provide services to their shareholders, such as brokers, dealers, banks, registered investment advisers, retirement plan administrators and other intermediaries (individually, an “
Intermediary
,” and collectively, “
Intermediaries
”), may receive sales charge payments and, out of Fund assets, may be paid Rule 12b-1 distribution and service payments and sub-transfer agency payments. The Distributor and the Adviser make additional payments out of their own assets to selected Intermediaries. These payments are made for the purposes of promoting the sale of Fund shares, maintaining share balances and/or for sub-accounting, administrative or shareholder services.
The amounts of these payments could be significant and may create an incentive for an Intermediary or its representatives to recommend or offer shares of the Nuveen Mutual Funds to its customers. The Intermediary may elevate the prominence or profile of the Funds within the Intermediary’s organization by, for example, placing the Funds on a list of preferred or recommended funds and/or granting the Distributor preferential or enhanced opportunities to promote the Funds in various ways within the Intermediary’s organization. These payments are made pursuant to negotiated agreements with Intermediaries. The categories of payments described below are not mutually exclusive, and a single Intermediary may receive payments under all categories. Further, representatives of the Distributor and its affiliates receive additional compensation related to the Nuveen Mutual Funds.
These payments do not change the price paid by investors for the purchase of a share or the amount a Fund will receive as proceeds from such sales. Furthermore, these payments are not reflected in the
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fees and expenses listed in the fee table section of the Funds' Prospectus and described above because they are not paid by the Funds.
Distribution-Related Payments
The Distributor and/or the Adviser make payments (sometimes referred to as “revenue sharing” payments) to selected Intermediaries as compensation for services such as providing the Funds with “shelf space” or a higher profile for the Intermediary’s personnel or their customers, placing the Funds on the Intermediary’s preferred or recommended fund list, granting access to sales meetings, sales representatives and management representatives of the Intermediary, providing assistance in training and educating the Intermediary’s personnel on the Funds, and furnishing marketing support and other services.
The Adviser and/or the Distributor compensate Intermediaries differently depending upon, among other factors, the number or value of Nuveen Mutual Funds shares that the Intermediary sells or may sell, the value of the assets invested in the Nuveen Mutual Funds by the Intermediary’s customers, redemption rates, ability to attract and retain assets, reputation in the industry and the level and/or type of marketing assistance and educational activities provided by the Intermediary. Such payments are generally asset-based but also may include the payment of a lump sum.
Servicing Payments
The Adviser and/or the Distributor make payments to selected Intermediaries that are registered as holders or dealers of record for accounts invested in one or more of the Nuveen Mutual Funds or that make Nuveen Mutual Fund shares available through employee benefit plans or fee-based advisory programs to compensate them for the variety of services they provide.
Services for which an Intermediary receives servicing payments typically include recordkeeping, reporting, or transaction processing, but may also include services rendered in connection with fund/ investment selection and monitoring, employee enrollment and education, plan balance rollover or separation, or other similar services. An Intermediary may perform the services itself or arrange with a third party to perform such services.
TIAA-CREF Individual & Institutional Services, LLC (“
TIAA
-
CREF IIS
”), an affiliate of the Adviser and the Distributor, is one intermediary that receives servicing payments. The shareholder services agreement between TIAA-CREF IIS and the Distributor provides that in exchange for such services, TIAA-CREF IIS will receive payments of 0.25% of the average net assets of Fund shares on the TIAA-CREF IIS retirement platform on an annual basis. The Distributor pays the portion of the fee that represents 0.05% of the average net assets of Fund shares attributable to TIAA-CREF IIS and the Funds pay the remainder.
Servicing payments typically apply to employee benefit plans, such as retirement plans, or fee-based advisory programs but may apply to retail sales and assets in certain situations. The payments are based on such factors as the type and nature of services or support furnished by the Intermediary and are generally asset-based.
Distribution-Related and Servicing Payment Guidelines
In the case of any one Intermediary, distribution-related and servicing payments made by the Adviser and/or the Distributor are not expected, with certain limited exceptions, to exceed, in the aggregate, 0.35% of the average net assets of Fund shares attributable to that Intermediary on an annual basis. In connection with the sale of a business by U.S. Bank N.A. to Great-West Life & Annuity Insurance Company (“
Great-West
”), the Adviser and/or the Distributor has a services agreement with GWFS Equities, Inc., an affiliate of Great-West, which provides for payments of up to 0.60% of the average net assets of Fund shares attributable to GWFS Equities, Inc. on an annual basis (which amount also includes payments by the Funds for sub-transfer agency services).
Other Payments to Intermediaries
The Adviser and/or the Distributor, at their expense, provide other compensation to Intermediaries that sell or arrange for the sale of shares of the Funds, which may be in addition to distribution-related and servicing payments described above. For example, the Adviser and/or the Distributor may: (i) compensate Intermediaries for National Securities Clearing Corporation networking system services (e.g., shareholder communication, account statements, trade confirmations, and tax reporting) on an asset-based or per account basis; (ii) compensate Intermediaries for providing Fund shareholder trading information; (iii) make one-time or periodic payments to reimburse selected Intermediaries for items such
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as ticket charges (i.e., fees that an Intermediary charges its representatives for effecting transactions in Fund shares) of up to $25 per purchase or exchange order, operational charges (e.g., fees that an Intermediary charges for establishing a Fund on its trading system), and literature printing and/or distribution costs; (iv) at the direction of a retirement plan’s sponsor, reimburse or pay direct expenses of an employee benefit plan that would otherwise be payable by the plan; and (v) provide payments to broker-dealers to help defray their technology or infrastructure costs.
The Adviser and/or the Distributor pay selected Intermediaries for enabling the Adviser and/or the Distributor to participate in and/or present at conferences or seminars, sales or training programs for invited registered representatives and other Intermediary employees, client and investor events and other Intermediary-sponsored events, and for travel expenses, including lodging incurred by registered representatives and other employees in connection with prospecting, asset retention and due diligence meetings. These payments vary depending upon the Intermediary and the nature of the event. The Adviser and/or the Distributor make payments for such events as it deems appropriate, subject to its internal guidelines and applicable law.
The Adviser and/or the Distributor occasionally sponsor due diligence meetings for Intermediaries’ registered representatives during which the registered representatives receive updates on various Nuveen Mutual Funds and are afforded the opportunity to speak with portfolio managers. Although invitations to these meetings are not conditioned on selling a specific number of shares, those who have shown an interest in Nuveen Mutual Funds are more likely to be considered. To the extent permitted by their firm’s policies and procedures, all or a portion of registered representatives’ expenses in attending these meetings may be covered by the Adviser and/or the Distributor.
Compensation to the Distributor’s Representatives
Representatives of the Distributor and its affiliates receive additional compensation from the Adviser and/or the Distributor based on whether certain targets are met for sales of one or more Nuveen Mutual Funds and other subjective factors. Such compensation varies by Fund, by distribution channel and by affiliate.
Other compensation may be offered to the extent not prohibited by state laws or any self-regulatory agency, such as FINRA. Investors can ask their Intermediary for information about any payments it receives from the Adviser and/or the Distributor and the services it provides for those payments.
Investors may wish to take Intermediary payment arrangements into account when considering and evaluating any recommendations relating to Fund shares.
Intermediaries Receiving Additional Payments
The following is a list of Intermediaries eligible to receive one or more of the types of payments discussed above as of February 15, 2021:
ADP Broker-Dealer, Inc.
AXA Advisors, LLC
American United Life Insurance Company
Ameriprise Financial Services, Inc.
Ascensus (formerly BISYS Retirement Services, Inc.)
BB&T
BMO Harris Bank N.A.
BNY Mellon, N.A.
Benefit Plans Administrative Services, Inc.
Benefit Trust Company
Cetera
Charles Schwab & Co., Inc.
Chase Investment Services
Citigroup Global Markets Inc.
Commonwealth Equity Services, LLP, DBA Commonwealth Financial Network
Davenport & Co., LLC
Digital Retirement Solutions, Inc.
Dyatech, LLC
Edward Jones
Fidelity Brokerage Services LLC/National Financial Services LLC
Fidelity Investments Institutional Operations Company, Inc. (FIIOC)/Fidelity Advisors Retirement
S-84
Financial Data Services, Inc.
First Clearing
Genesis Employee Benefits, Inc. DBA America’s VEBA Solution
Goldman Sachs
Great West Life and Annuity Insurance Co.
GWFS Equities, Inc.
Hartford Life Insurance Company
Hartford Securities Distribution Company, Inc.
ICMA Retirement Corporation
J.J.B. Hilliard, W.L. Lyons, Inc.
J.P. Morgan Retirement Plan Services, LLC
J.P. Morgan Securities LLC
JPMorgan Chase Bank, N.A.
Janney Montgomery Scott LLC
John Hancock Trust Company
Kestra Investment Services, LLC
LPL Financial Services
Ladenburg Thalmann Advisor Network LLC
Lincoln Financial Securities Corporation
Lincoln Retirement Services Company LLC/AMG Service Corp.
Linsco/Private Ledger Corp.
Massachusetts Mutual Life Insurance Company
Mercer HR Outsourcing LLC
Merrill Lynch, Pierce, Fenner & Smith Inc.
Mid Atlantic Capital Corporation
Morgan Stanley & Co., Incorporated/Morgan Stanley Smith Barney LLC
MSCS Financial Services Division of Broadridge Business Process Outsourcing, LLC
National Financial Services, LLC
Nationwide Financial Services, Inc.
Newport Retirement Services, Inc.
Northwestern Mutual
NYLife Distributors LLC
Oppenheimer & Co.
Pershing LLC
Principal Life Insurance Company
Prudential Insurance Company of America (The)
Prudential Investment Management Services, LLC/Prudential Investments LLC
Raymond James & Associates/Raymond James Financial Services, Inc.
RBC Capital Markets, LLC
Reliance Trust Company
Retirement Plan Company, LLC (The)
Robert W. Baird & Co., Inc.
SI Financial Advisors
Southwest Securities, Inc.
Stifel, Nicolaus & Co., Inc.
T. Rowe Price Investment Services, Inc./T. Rowe Price Retirement Plan Services, Inc.
TD Ameritrade, Inc.
TD Ameritrade Trust Company (formerly Fiserv Trust Company/International Clearing Trust Company)
TIAA-CREF Individual & Institutional Services, LLC
Trust Company of America
U.S. Bancorp Investments, Inc.
U.S. Bank N.A.
UBS Financial Services, Inc.
Unified Trust Company, N.A.
VALIC Retirement Services Company (formerly AIG Retirement Services Company)
Vanguard Group, Inc.
Voya Financial (formerly ING)
Wedbush Morgan Securities
S-85
Wells Fargo Advisors, LLC
Wells Fargo Bank, N.A.
Wells Fargo Institutional Retirement & Trust
Wilmington Trust Company
Wilmington Trust Retirement and Institutional Services Company (formerly AST Capital Trust Company)
Any additions, modifications or deletions to the list of Intermediaries identified above that have occurred since February 15, 2021 are not reflected in the list.
FINANCIAL STATEMENTS
The audited financial statements for each Fund’s most recent fiscal year appear in each Fund’s Annual Report dated October 31, 2020. Each Fund’s Annual Report is incorporated by reference into this SAI and is available without charge by calling (800) 257-8787.
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APPENDIX A
RATINGS OF INVESTMENTS
S&P Global Ratings
—A brief description of the applicable S&P Global Ratings’ (“
S&P
”) rating symbols and their meanings (as published by S&P) follows:
Issue Credit Ratings
An S&P Global Ratings issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in which the obligation is denominated. The opinion reflects S&P Global Ratings’ view of the obligor’s capacity and willingness to meet its financial commitments as they come due, and this opinion may assess terms, such as collateral security and subordination, which could affect ultimate payment in the event of default.
Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned to those obligations considered short-term in the relevant market. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to put features on long-term obligations. Medium-term notes are assigned long-term ratings.
Long-Term Issue Credit Ratings*
Issue credit ratings are based, in varying degrees, on S&P Global Ratings’ analysis of the following considerations:
1.
 
The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an obligation in accordance with the terms of the obligation;
2.
 
The nature and provisions of the financial obligation, and the promise we impute; and
3.
 
The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.
An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.)
   
AAA
An obligation rated ‘AAA’ has the highest rating assigned by S&P Global Ratings. The obligor’s capacity to meet its financial commitments on the obligation is extremely strong.
AA
An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitments on the obligation is very strong.
A
An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitments on the obligation is still strong.
BBB
An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its financial commitments on the obligation.
BB, B, CCC, CC, and C
Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposure to adverse conditions.
A-1
   
BB
An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments on the obligation.
B
An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor currently has the capacity to meet its financial commitments on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments on the obligation.
CCC
An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitments on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitments on the obligation.
CC
An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when a default has not yet occurred but S&P Global Ratings expects default to be a virtual certainty, regardless of the anticipated time to default.
C
An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared with obligations that are rated higher.
D
An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital instruments, the ‘D’ rating category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed exchange offer.
*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories.
Short-Term Issue Credit Ratings
   
A-1
A short-term obligation rated ‘A-1’ is rated in the highest category by S&P Global Ratings. The obligor’s capacity to meet its financial commitments on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial commitments on these obligations is extremely strong.
A-2
A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.
A-3
A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to meet its financial commitments on the obligation.
B
A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its financial commitments.
C
A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitments on the obligation.
D
A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital instruments, the ‘D’ rating category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be made within any stated grace period. However, any stated grace period longer than five
A-2
   
business days will be treated as five business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed exchange offer.
Moody’s Investors Service, Inc.
—A brief description of the applicable Moody’s Investors Service, Inc. (“
Moody’s
”) rating symbols and their meanings (as published by Moody’s) follows:
Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured finance vehicles, project finance vehicles, and public sector entities. Long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default or impairment. Short-term ratings are assigned to obligations with an original maturity of thirteen months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default or impairment.
Long-Term Obligation Ratings
   
Aaa
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.
Aa
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
A
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.
Baa
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.
Ba
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.
B
Obligations rated B are considered speculative and are subject to high credit risk.
Caa
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.
Ca
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.
C
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.
Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Short-Term Obligation Ratings
   
P-1
Ratings of Prime-1 reflect a superior ability to repay short-term obligations.
P-2
Ratings of Prime-2 reflect a strong ability to repay short-term obligations.
P-3
Ratings of Prime-3 reflect an acceptable ability to repay short- term obligations.
NP
Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories.
Medium-Term Note Program Ratings
Moody’s assigns provisional ratings to medium-term note (MTN) programs and definitive ratings to the individual debt securities issued from them (referred to as drawdowns or notes).
MTN program ratings are intended to reflect the ratings likely to be assigned to drawdowns issued from the program with the specified priority of claim (e.g. senior or subordinated). To capture the contingent nature of a program rating, Moody’s assigns provisional ratings to MTN programs. A provisional rating is denoted by a (P) in front of the rating. The rating assigned to a drawdown from a rated MTN or bank/deposit note program is definitive in nature, and may differ from the program rating if the drawdown is exposed to additional credit risks besides the issuer’s default, such as links to the defaults of other issuers, or has other structural features that warrant a different rating. In some circumstances, no rating may be assigned to a drawdown.
A-3
Moody’s encourages market participants to contact Moody’s Ratings Desks or visit www.moodys.com directly if they have questions regarding ratings for specific notes issued under a medium-term note program. Unrated notes issued under an MTN program may be assigned an NR (not rated) symbol.
Pledge-Specific Ratings
Pledge-specific ratings are opinions of the ability of a US state, local government, related entity, or nonprofit issuer to honor debt and debt-like obligations based upon specific security payment pledges or structural features.
U.S. Municipal Short-Term Debt and Demand Obligation Ratings
Short-Term Obligation Ratings
Moody’s uses the global short-term Prime rating scale for commercial paper issued by US municipalities and nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by an issuer’s self-liquidity.
For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the Municipal Investment Grade (MIG) and Variable Municipal Investment Grade (VMIG) scales discussed below.
Moody’s uses the MIG scale for US municipal cash flow notes, bond anticipation notes and certain other short-term obligations, which typically mature in three years or less. Under certain circumstances, we use the MIG scale for bond anticipation notes with maturities of up to five years.
   
MIG 1
This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing.
MIG 2
This designation denotes strong credit quality. Margins of protection are ample, although not as large as in the preceding group.
MIG 3
This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established.
SG
This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection.
 
Demand Obligation Ratings
In the case of variable rate demand obligations (VRDOs), a two-component rating is assigned. The components are a long-term rating and a short-term demand obligation rating. The long-term rating addresses the issuer’s ability to meet scheduled principal and interest payments. The short-term demand obligation rating addresses the ability of the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature (“demand feature”) of the VRDO. The short-term demand obligation rating uses the VMIG scale. VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment grade. Please see Moody’s methodology that discusses demand obligations with conditional liquidity support.
   
VMIG 1
This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
VMIG 2
This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
VMIG 3
This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
SG
This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or may lack the structural and/or legal protections necessary to ensure the timely payment of purchase price upon demand.
A-4
Fitch Ratings
—A brief description of the applicable Fitch Ratings (“
Fitch
”) ratings symbols and meanings (as published by Fitch) follows:
Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation. Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national entities) and the securities or other obligations they issue, as well as structured finance securities backed by receivables or other financial assets.
The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment grade and speculative grade are market conventions, and do not imply any recommendation or endorsement of a specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk, while ratings in the speculative categories either signal a higher level of credit risk or that a default has already occurred.
For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page. Such issues are also denoted as ‘NR’.
Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are not predictive of a specific frequency of default or loss.
Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the extent that it influences the
ability
of an issuer to pay upon a commitment. Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of the
obligation
to pay upon a commitment (for example, in the case of index-linked bonds).
In the default components of ratings assigned to individual obligations or instruments, the agency typically rates to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In limited cases, Fitch may include additional considerations (i.e. rate to a higher or lower standard than that implied in the obligation’s documentation).
International Long-Term Ratings
Issuer Credit Rating Scales
   
AAA
Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
AA
Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.
A
High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.
BBB
Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.
BB
Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial commitments.
B
Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.
A-5
   
CCC
Substantial credit risk. Default is a real possibility.
CC
Very high levels of credit risk. Default of some kind appears probable.
C
Near default. A default or default-like process has begun, or the issuer is in standstill, or for a closed funding vehicle, payment capacity is irrevocably impaired. Conditions that are indicative of a ‘C’ category rating for an issuer include:
·
 
the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
·
 
the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation;
·
 
the formal announcement by the issuer or their agent of a distressed debt exchange; or
·
 
a closed financing vehicle where payment capacity is irrevocably impaired such that it is not expected to pay interest and/or principal in full during the life of the transaction, but where no payment default is imminent.
RD
Restricted default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced:
·
 
an uncured payment default or distressed debt exchange on a bond, loan or other material financial obligation but
·
 
has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and
·
 
has not otherwise ceased operating.
This would include:
·
 
the selective payment default on a specific class or currency of debt;
·
 
the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation;
·
 
the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; ordinary execution of a distressed debt exchange on one or more material financial obligations.
D
Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, or that has otherwise ceased business.
Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.
In all cases, the assignment of a default rating reflects the agency’s opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuer’s financial obligations or local commercial practice.
International Short-Term Ratings
A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated entity or security stream and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-Term Ratings are assigned to obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to 13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public finance markets.
   
F1
Highest short-term credit quality. Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added “+” to denote any exceptionally strong credit feature.
 
A-6
   
F2
Good short-term credit quality. Good intrinsic capacity for timely payment of financial commitments.
F3
Fair short-term credit quality. The intrinsic capacity for timely payment of financial commitments is adequate.
B
Speculative short-term credit quality. Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near term adverse changes in financial and economic conditions.
C
High short-term default risk. Default is a real possibility.
RD
Restricted default. Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Typically applicable to entity ratings only.
D
Default. Indicates a broad-based default event for an entity, or the default of a short-term obligation.
Notes to Long-Term and Short-Term ratings:
Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the ‘AAA’ ratings and ratings below the ‘CCC’ category.
Ratings that have been withdrawn will be indicated by the symbol ‘WD’.
Rating Watch: Rating Watches indicate that there is a heightened probability of a rating change and the likely direction of such a change. These are designated as “Positive”, indicating that a rating could stay at its present level or potentially be upgraded, “Negative”, to indicate that the rating could stay at its present level or potentially be downgraded, or “Evolving”, if ratings may be raised, lowered or affirmed. However, ratings can be raised or lowered without being placed on Rating Watch first.
A Rating Watch is typically event-driven and, as such, it is generally resolved over a relatively short period. The event driving the Watch may be either anticipated or have already occurred, but in both cases, the exact rating implications remain undetermined. The Watch period is typically used to gather further information and/or subject the information to further analysis.
A-7
 
MAI-FSTK-0221D
 
APPENDIX B
 
 
LOGO
 
B-1
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
T A B L E   O F   C O N T E N T S
 
 
 
 
 
7
 
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3.
  
 
 
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I S S G O V E R N A N C E . C O M
  
 
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B-2
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
  
 
 
26
 
  
 
 
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I S S G O V E R N A N C E . C O M
  
 
3 of 72
 
 
B-3
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
  
 
 
41
 
  
 
 
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6.
  
 
 
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I S S G O V E R N A N C E . C O M
  
 
4 of 72
 
 
B-4
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
  
 
 
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7.
  
 
 
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I S S G O V E R N A N C E . C O M
  
 
5 of 72
 
 
B-5
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
  
 
 
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I S S G O V E R N A N C E . C O M
  
 
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B-6
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Coverage
The U.S. research team provides proxy analyses and voting recommendations for common shareholder meetings of publicly - traded U.S. - incorporated companies that are held in our institutional investor clients’ portfolios and includes all S&P 1500 and Russell 3000 companies that are considered U.S. Domestic Issuers by the SEC. Coverage generally includes corporate actions for common equity holders, such as written consents and bankruptcies. ISS’ U.S. coverage includes investment companies (including
open-end
funds,
closed-end
funds, exchange-traded funds, and unit investment trusts), limited partnerships (“LPs”), master limited partnerships (“MLPs”), limited liability companies (“LLCs”), and business development companies. ISS reviews its universe of coverage on an annual basis, and the coverage is subject to change based on client need and industry trends.
The U.S. research team also produces, for subscribing clients, research and recommendations for fixed income meetings, and meetings of certain preferred securities, including Auction Rate Preferred Securities (“ARPS”) and Variable Rate Municipal Term Preferred securities (“VMTPs”).
Foreign-incorporated companies
In addition to U.S. - incorporated companies, U.S. policies are applied to certain foreign-incorporated company analyses. Like the SEC, ISS distinguishes two types of companies that list but are not incorporated in the U.S.:
 
 
◾
 
U.S. Domestic Issuers – which have a majority of outstanding shares held in the U.S. and meet other criteria, as determined by the SEC, and are subject to the same disclosure and listing standards as U.S. incorporated companies – are generally covered under standard U.S. policy guidelines.
 
◾
 
Foreign Private Issuers (FPIs) – which do not meet the Domestic Issuer criteria and are exempt from most disclosure requirements (e.g., they do not file DEF14A reports) and listing standards (e.g., for required levels of board and committee independence) – are covered under a combination of policy guidelines:
 
◾
 
FPI Guidelines (see the
Americas Regional Proxy Voting Guidelines
), which apply certain minimum independence and disclosure standards in the evaluation of key proxy ballot items, such as the election of directors and approval of financial reports; and
 
◾
 
For other issues, guidelines for the market that is responsible for, or most relevant to, the item on the ballot.
In all cases – including with respect to other companies with cross-market features that may lead to ballot items related to multiple markets – items that are on the ballot solely due to the requirements of another market (listing, incorporation, or national code) may be evaluated under the policy of the relevant market, regardless of the “assigned” market coverage.
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-7
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
1.   Board of Directors
Voting on Director Nominees in Uncontested Elections
Four fundamental principles apply when determining votes on director nominees:
Independence
: Boards should be sufficiently independent from management (and significant shareholders) to ensure that they are able and motivated to effectively supervise management’s performance for the benefit of all shareholders, including in setting and monitoring the execution of corporate strategy, with appropriate use of shareholder capital, and in setting and monitoring executive compensation programs that support that strategy. The chair of the board should ideally be an independent director, and all boards should have an independent leadership position or a similar role in order to help provide appropriate counterbalance to executive management, as well as having sufficiently independent committees that focus on key governance concerns such as audit, compensation, and nomination of directors.
Composition
: Companies should ensure that directors add value to the board through their specific skills and expertise and by having sufficient time and commitment to serve effectively. Boards should be of a size appropriate to accommodate diversity, expertise, and independence, while ensuring active and collaborative participation by all members. Boards should be sufficiently diverse to ensure consideration of a wide range of perspectives.
Responsiveness
: Directors should respond to investor input, such as that expressed through significant opposition to management proposals, significant support for shareholder proposals (whether binding or
non-binding),
and tender offers where a majority of shares are tendered.
Accountability
: Boards should be sufficiently accountable to shareholders, including through transparency of the company’s governance practices and regular board elections, by the provision of sufficient information for shareholders to be able to assess directors and board composition, and through the ability of shareholders to remove directors.
 
G68G08.JPG
General Recommendation:
Generally vote for director nominees, except under the following circumstances (with new nominees
1
considered on
case-by-case
basis):
Independence
Vote against
2
or withhold from
non-independent
directors (Executive Directors and
Non-Independent
Non-Executive
Directors per
ISS’ Classification of Directors
) when:
 
 
◾
 
Independent directors comprise 50 percent or less of the board;
 
◾
 
The
non-independent
director serves on the audit, compensation, or nominating committee;
 
◾
 
The company lacks an audit, compensation, or nominating committee so that the full board functions as that committee; or
 
◾
 
The company lacks a formal nominating committee, even if the board attests that the independent directors fulfill the functions of such a committee.
 
 
1
A “new nominee” is a director who is being presented for election by shareholders for the first time. Recommendations on new nominees who have served for less than one year are made on a
case-by-case
basis depending on the timing of their appointment and the problematic governance issue in question.
2
In general, companies with a plurality vote standard use “Withhold” as the contrary vote option in director elections; companies with a majority vote standard use “Against”. However, it will vary by company and the proxy must be checked to determine the valid contrary vote option for the particular company.
 
   
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B-8
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
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ISS Classification of Directors – U.S.
 
 
 
1.
Executive Director
 
 
1.1.
Current officer
1
of the company or one of its affiliates
2
.
 
 
2.
Non-Independent
Non-Executive
Director
 
 
Board Identification
 
 
2.1.
Director identified as not independent by the board.
 
 
Controlling/Significant Shareholder
 
2.2.
Beneficial owner of more than 50 percent of the company’s voting power (this may be aggregated if voting power is distributed among more than one member of a group).
 
 
Current Employment at Company or Related Company
 
 
2.3.
Non-officer
employee of the firm (including employee representatives).
 
2.4.
Officer
1
, former officer, or general or limited partner of a joint venture or partnership with the company.
 
 
Former Employment
 
 
2.5.
Former CEO of the company.
3, 4
 
2.6.
Former
non-CEO
officer
1
of the company or an affiliate
2
within the past five years.
 
2.7.
Former officer
1
of an acquired company within the past five years.
4
 
2.8.
Officer
1
of a former parent or predecessor firm at the time the company was sold or split off within the past five years.
 
2.9.
Former interim officer if the service was longer than 18 months. If the service was between 12 and 18 months an assessment of the interim officer’s employment agreement will be made.
5
 
 
Family Members
 
 
2.10.
Immediate family member
6
of a current or former officer
1
of the company or its affiliates
2
within the last five years.
 
2.11.
Immediate family member
6
of a current employee of company or its affiliates
2
where additional factors raise concern (which may include, but are not limited to, the following: a director related to numerous employees; the company or its affiliates employ relatives of numerous board members; or a
non-Section
16 officer in a key strategic role).
 
 
Professional, Transactional, 
and Charitable Relationships
 
 
2.12.
Director who (or whose immediate family member
6
) currently provides professional services
7
in excess of $10,000 per year to: the company, an affiliate
2
, or an individual officer of the company or an affiliate; or who is (or whose immediate family member
6
is) a partner, employee, or controlling shareholder of an organization which provides the services.
 
2.13.
Director who (or whose immediate family member
6
) currently has any material transactional relationship
8
with the company or its affiliates
2
; or who is (or whose immediate family member
6
is) a partner in, or a controlling shareholder or an executive officer of, an organization which has the material transactional relationship
8
(excluding investments in the company through a private placement).
 
2.14.
Director who (or whose immediate family member
6
)
is a trustee, director, or employee of a charitable or
non-profit
organization that receives material grants or endowments
8
from the company or its affiliates
2
.
 
 
Other Relationships
 
 
2.15.
Party to a voting agreement
9
to vote in line with management on proposals being brought to shareholder vote.
 
2.16.
Has (or an immediate family member
6
has) an interlocking relationship as defined by the SEC involving members of the board of directors or its Compensation Committee.
10
 
2.17.
Founder
11
of the company but not currently an employee.
 
2.18.
Director with pay comparable to Named Executive Officers.
 
2.19.
Any material
12
relationship with the company.
 
 
3.
Independent Director
 
3.1.
No material
12
connection to the company other than a board seat.
 
   
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B-9
U N I T E D  S T A T E S
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Footnotes:
1.
The definition of officer will generally follow that of a “Section 16 officer” (officers subject to Section 16 of the Securities and Exchange Act of 1934) and includes the chief executive, operating, financial, legal, technology, and accounting officers of a company (including the president, treasurer, secretary, controller, or any vice president in charge of a principal business unit, division, or policy function). Current interim officers are included in this category. For private companies, the equivalent positions are applicable. A
non-employee
director serving as an officer due to statutory requirements (e.g. corporate secretary) will generally be classified as a
Non-Independent
Non-Executive
Director under “Any material relationship with the company.” However, if the company provides explicit disclosure that the director is not receiving additional compensation exceeding $10,000 per year for serving in that capacity, then the director will be classified as an Independent Director.
2.
“Affiliate” includes a subsidiary, sibling company, or parent company. ISS uses 50 percent control ownership by the parent company as the standard for applying its affiliate designation. The manager/advisor of an externally managed issuer (EMI) is considered an affiliate.
3.
Includes any former CEO of the company prior to the company’s initial public offering (IPO).
4.
When there is a former CEO of a special purpose acquisition company (SPAC) serving on the board of an acquired company, ISS will generally classify such directors as independent unless determined otherwise taking into account the following factors: the applicable listing standards determination of such director’s independence; any operating ties to the firm; and the existence of any other conflicting relationships or related party transactions.
5.
ISS will look at the terms of the interim officer’s employment contract to determine if it contains severance pay, long-term health and pension benefits, or other such standard provisions typically contained in contracts of permanent,
non-temporary
CEOs. ISS will also consider if a formal search process was under way for a full-time officer at the time.
6.
“Immediate family member” follows the SEC’s definition of such and covers spouses, parents, children, step-parents, step-children, siblings,
in-laws,
and any person (other than a tenant or employee) sharing the household of any director, nominee for director, executive officer, or significant shareholder of the company.
7.
Professional services can be characterized as advisory in nature, generally involve access to sensitive company information or to strategic decision-making, and typically have a commission- or
fee-based
payment structure. Professional services generally include but are not limited to the following: investment banking/financial advisory services, commercial banking (beyond deposit services), investment services, insurance services, accounting/audit services, consulting services, marketing services, legal services, property management services, realtor services, lobbying services, executive search services, and IT consulting services. The following would generally be considered transactional relationships and not professional services: deposit services, IT tech support services, educational services, and construction services. The case of participation in a banking syndicate by a
non-lead
bank should be considered a transactional (and hence subject to the associated materiality test) rather than a professional relationship. “Of Counsel” relationships are only considered immaterial if the individual does not receive any form of compensation (in excess of $10,000 per year) from, or is a retired partner of, the firm providing the professional service. The case of a company providing a professional service to one of its directors or to an entity with which one of its directors is affiliated, will be considered a transactional rather than a professional relationship. Insurance services and marketing services are assumed to be professional services unless the company explains why such services are not advisory.
8.
A material transactional relationship, including grants to
non-profit
organizations, exists if the company makes annual payments to, or receives annual payments from, another entity, exceeding the greater of: $200,000 or 5 percent of the recipient’s gross revenues, for a company that follows NASDAQ listing standards; or the greater of $1,000,000 or 2 percent of the recipient’s gross revenues, for a company that follows NYSE listing standards. For a company that follows neither of the preceding standards, ISS will apply the NASDAQ-based materiality test. (The recipient is the party receiving the financial proceeds from the transaction).
9.
Dissident directors who are parties to a voting agreement pursuant to a settlement or similar arrangement may be classified as Independent Directors if an analysis of the following factors indicates that the voting agreement does not compromise their alignment with all shareholders’ interests: the terms of the agreement; the duration of the standstill provision in the agreement; the limitations and requirements of actions that are agreed upon; if the dissident director nominee(s) is subject to the standstill; and if there any conflicting relationships or related party transactions.
10.
Interlocks include: executive officers serving as directors on each other’s compensation or similar committees (or, in the absence of such a committee, on the board); or executive officers sitting on each other’s boards and at least one serves on the other’s compensation or similar committees (or, in the absence of such a committee, on the board).
 
   
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B-10
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
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11.
The operating involvement of the founder with the company will be considered; if the founder was never employed by the company, ISS may deem him or her an Independent Director.
12.
For purposes of ISS’s director independence classification, “material” will be defined as a standard of relationship (financial, personal or otherwise) that a reasonable person might conclude could potentially influence one’s objectivity in the boardroom in a manner that would have a meaningful impact on an individual’s ability to satisfy requisite fiduciary standards on behalf of shareholders.
Composition
Attendance at Board and Committee Meetings:
Generally vote against or withhold from directors (except nominees who served only part of the fiscal year
3
) who attend less than 75 percent of the aggregate of their board and committee meetings for the period for which they served, unless an acceptable reason for absences is disclosed in the proxy or another SEC filing. Acceptable reasons for director absences are generally limited to the following:
 
 
◾
 
Medical issues/illness;
 
◾
 
Family emergencies; and
 
◾
 
Missing only one meeting (when the total of all meetings is three or fewer).
In cases of chronic poor attendance without reasonable justification, in addition to voting against the director(s) with poor attendance, generally vote against or withhold from appropriate members of the nominating/governance committees or the full board.
If the proxy disclosure is unclear and insufficient to determine whether a director attended at least 75 percent of the aggregate of his/her board and committee meetings during his/her period of service, vote against or withhold from the director(s) in question.
Overboarded Directors:
Generally vote against or withhold from individual directors who:
 
 
◾
 
Sit on more than five public company boards; or
 
◾
 
Are CEOs of public companies who sit on the boards of more than two public companies besides their own—withhold only at their outside boards
4
.
Gender Diversity:
For companies in the Russell 3000 or S&P 1500 indices, generally vote against or withhold from the chair of the nominating committee (or other directors on a
case-by-case
basis) at companies where there are no women on the company’s board. An exception will be made if there was a woman on the board at the
 
 
3
Nominees who served for only part of the fiscal year are generally exempted from the attendance policy.
4
Although all of a CEO’s subsidiary boards with publicly-traded common stock will be counted as separate boards, ISS will not recommend a withhold vote for the CEO of a parent company board or any of the controlled (>50 percent ownership) subsidiaries of that parent but may do so at subsidiaries that are less than 50 percent controlled and boards outside the parent/subsidiary relationships.
 
   
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B-11
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
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preceding annual meeting and the board makes a firm commitment to return to a gender-diverse status within a year.
Racial and/or Ethnic Diversity:
For companies in the Russell 3000 or S&P 1500 indices, highlight boards with no apparent racial and/or ethnic diversity
5
.
For companies in the Russell 3000 or S&P 1500 indices, effective for meetings on or after Feb. 1, 2022, generally vote against or withhold from the chair of the nominating committee (or other directors on a
case-by-case
basis) where the board has no apparent racially or ethnically diverse members. An exception will be made if there was racial and/or ethnic diversity on the board at the preceding annual meeting and the board makes a firm commitment to appoint at least one racial and/or ethnic diverse member within a year.
Responsiveness
Vote
case-by-case
on individual directors, committee members, or the entire board of directors as appropriate if:
 
 
◾
 
The board failed to act on a shareholder proposal that received the support of a majority of the shares cast in the previous year or failed to act on a management proposal seeking to ratify an existing charter/bylaw provision that received opposition of a majority of the shares cast in the previous year. Factors that will be considered are:
 
◾
 
Disclosed outreach efforts by the board to shareholders in the wake of the vote;
 
◾
 
Rationale provided in the proxy statement for the level of implementation;
 
◾
 
The subject matter of the proposal;
 
◾
 
The level of support for and opposition to the resolution in past meetings;
 
◾
 
Actions taken by the board in response to the majority vote and its engagement with shareholders;
 
◾
 
The continuation of the underlying issue as a voting item on the ballot (as either shareholder or management proposals); and
 
◾
 
Other factors as appropriate.
 
◾
 
The board failed to act on takeover offers where the majority of shares are tendered;
 
◾
 
At the previous board election, any director received more than 50 percent withhold/against votes of the shares cast and the company has failed to address the issue(s) that caused the high withhold/against vote.
Vote
case-by-case
on Compensation Committee members (or, in exceptional cases, the full board) and the Say on Pay proposal if:
 
 
◾
 
The company’s previous
say-on-pay
received the support of less than 70 percent of votes cast. Factors that will be considered are:
 
◾
 
The company’s response, including:
 
◾
 
Disclosure of engagement efforts with major institutional investors, including the frequency and timing of engagements and the company participants (including whether independent directors participated);
 
◾
 
Disclosure of the specific concerns voiced by dissenting shareholders that led to the
say-on-pay
opposition;
 
◾
 
Disclosure of specific and meaningful actions taken to address shareholders’ concerns;
 
◾
 
Other recent compensation actions taken by the company;
 
◾
 
Whether the issues raised are recurring or isolated;
 
◾
 
The company’s ownership structure; and
 
 
5
Aggregate diversity statistics provided by the board will only be considered if specific to racial and/or ethnic diversity.
 
   
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B-12
U N I T E D  S T A T E S
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◾
 
Whether the support level was less than 50 percent, which would warrant the highest degree of responsiveness.
 
◾
 
The board implements an advisory vote on executive compensation on a less frequent basis than the frequency that received the plurality of votes cast.
Accountability
Problematic Takeover Defenses/Governance Structure
Poison Pills:
Vote against or withhold from all nominees (except new nominees
1
, who should be considered
case-by-case)
if:
 
 
◾
 
The company has a poison pill that was not approved by shareholders
6
. However, vote
case-by-case
on nominees if the board adopts an initial pill with a term of one year or less, depending on the disclosed rationale for the adoption, and other factors as relevant (such as a commitment to put any renewal to a shareholder vote);
 
◾
 
The board makes a material adverse modification to an existing pill, including, but not limited to, extension, renewal, or lowering the trigger, without shareholder approval; or
 
◾
 
The pill, whether short-term
7
or long-term, has a deadhand or slowhand feature.
Classified Board Structure:
The board is classified, and a continuing director responsible for a problematic governance issue at the board/committee level that would warrant a withhold/against vote recommendation is not up for election. All appropriate nominees (except new) may be held accountable.
Removal of Shareholder Discretion on Classified Boards:
The company has opted into, or failed to opt out of, state laws requiring a classified board structure.
Director Performance Evaluation:
The board lacks mechanisms to promote accountability and oversight, coupled with sustained poor performance relative to peers. Sustained poor performance is measured by
one-,
three-, and five-year total shareholder returns in the bottom half of a company’s four-digit GICS industry group (Russell 3000 companies only). Take into consideration the company’s operational metrics and other factors as warranted. Problematic provisions include but are not limited to:
 
 
◾
 
A classified board structure;
 
◾
 
A supermajority vote requirement;
 
◾
 
Either a plurality vote standard in uncontested director elections, or a majority vote standard in contested elections;
 
◾
 
The inability of shareholders to call special meetings;
 
◾
 
The inability of shareholders to act by written consent;
 
◾
 
A multi-class capital structure; and/or
 
◾
 
A
non-shareholder-approved
poison pill.
Unilateral Bylaw/Charter Amendments and Problematic Capital Structures:
Generally vote against or withhold from directors individually, committee members, or the entire board (except new nominees
1
, who should be considered
case-by-case)
if the board amends the company’s bylaws or charter without shareholder approval in a manner that materially diminishes shareholders’ rights or that could adversely impact shareholders, considering the following factors:
 
 
6
Public shareholders only, approval prior to a company’s becoming public is insufficient.
7
If the short-term pill with a deadhand or slowhand feature is enacted but expires before the next shareholder vote, ISS will generally still recommend withhold/against nominees at the next shareholder meeting following its adoption.
 
   
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B-13
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
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◾
 
The board’s rationale for adopting the bylaw/charter amendment without shareholder ratification;
 
◾
 
Disclosure by the company of any significant engagement with shareholders regarding the amendment;
 
◾
 
The level of impairment of shareholders’ rights caused by the board’s unilateral amendment to the bylaws/charter;
 
◾
 
The board’s track record with regard to unilateral board action on bylaw/charter amendments or other entrenchment provisions;
 
◾
 
The company’s ownership structure;
 
◾
 
The company’s existing governance provisions;
 
◾
 
The timing of the board’s amendment to the bylaws/charter in connection with a significant business development; and
 
◾
 
Other factors, as deemed appropriate, that may be relevant to determine the impact of the amendment on shareholders.
Unless the adverse amendment is reversed or submitted to a binding shareholder vote, in subsequent years vote
case-by-case
on director nominees. Generally vote against (except new nominees
1
, who should be considered
case-by-case)
if the directors:
 
 
◾
 
Classified the board;
 
◾
 
Adopted supermajority vote requirements to amend the bylaws or charter; or
 
◾
 
Eliminated shareholders’ ability to amend bylaws.
Problematic Capital Structure—Newly Public Companies:
For newly public companies
8
, generally vote against or withhold from the entire board (except new nominees
1
, who should be considered
case-by-case)
if, prior to or in connection with the company’s public offering, the company or its board implemented a multi-class capital structure in which the classes have unequal voting rights without subjecting the multi-class capital structure to a reasonable time-based sunset. In assessing the reasonableness of a time-based sunset provision, consideration will be given to the company’s lifespan, its
post-IPO
ownership structure and the board’s disclosed rationale for the sunset period selected. No sunset period of more than seven years from the date of the IPO will be considered to be reasonable.
Continue to vote against or withhold from incumbent directors in subsequent years, unless the problematic capital structure is reversed or removed.
Problematic Governance Structure—Newly Public Companies
: For newly public companies
8
, generally vote against or withhold from directors individually, committee members, or the entire board (except new nominees
1
, who should be considered
case-by-case)
if, prior to or in connection with the company’s public offering, the company or its board adopted the following bylaw or charter provisions that are considered to be materially adverse to shareholder rights:
 
 
◾
 
Supermajority vote requirements to amend the bylaws or charter;
 
◾
 
A classified board structure; or
 
◾
 
Other egregious provisions.
A reasonable sunset provision will be considered a mitigating factor.
Unless the adverse provision is reversed or removed, vote
case-by-case
on director nominees in subsequent years.
 
 
8
Newly-public companies generally include companies that emerge from bankruptcy, spin-offs, direct listings, and those who complete a traditional initial public offering.
 
   
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B-14
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
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Management Proposals to Ratify Existing Charter or Bylaw Provisions:
Vote against/withhold from individual directors, members of the governance committee, or the full board, where boards ask shareholders to ratify existing charter or bylaw provisions considering the following factors:
 
 
◾
 
The presence of a shareholder proposal addressing the same issue on the same ballot;
 
◾
 
The board’s rationale for seeking ratification;
 
◾
 
Disclosure of actions to be taken by the board should the ratification proposal fail;
 
◾
 
Disclosure of shareholder engagement regarding the board’s ratification request;
 
◾
 
The level of impairment to shareholders’ rights caused by the existing provision;
 
◾
 
The history of management and shareholder proposals on the provision at the company’s past meetings;
 
◾
 
Whether the current provision was adopted in response to the shareholder proposal;
 
◾
 
The company’s ownership structure; and
 
◾
 
Previous use of ratification proposals to exclude shareholder proposals.
Restrictions on Shareholders’ Rights
Restricting Binding Shareholder Proposals:
Generally vote against or withhold from the members of the governance committee if:
 
 
◾
 
The company’s governing documents impose undue restrictions on shareholders’ ability to amend the bylaws. Such restrictions include but are not limited to: outright prohibition on the submission of binding shareholder proposals or share ownership requirements, subject matter restrictions, or time holding requirements in excess of SEC Rule
14a-8.
Vote against or withhold on an ongoing basis.
Submission of management proposals to approve or ratify requirements in excess of SEC Rule
14a-8
for the submission of binding bylaw amendments will generally be viewed as an insufficient restoration of shareholders’ rights. Generally continue to vote against or withhold on an ongoing basis until shareholders are provided with an unfettered ability to amend the bylaws or a proposal providing for such unfettered right is submitted for shareholder approval.
Problematic Audit-Related Practices
Generally vote against or withhold from the members of the Audit Committee if:
 
 
◾
 
The
non-audit
fees paid to the auditor are
excessive
;
 
◾
 
The company receives an adverse opinion on the company’s financial statements from its auditor; or
 
◾
 
There is persuasive evidence that the Audit Committee entered into an inappropriate indemnification agreement with its auditor that limits the ability of the company, or its shareholders, to pursue legitimate legal recourse against the audit firm.
Vote
case-by-case
on members of the Audit Committee and potentially the full board if:
 
 
◾
 
Poor accounting practices are identified that rise to a level of serious concern, such as: fraud; misapplication of GAAP; and material weaknesses identified in Section 404 disclosures. Examine the severity, breadth, chronological sequence, and duration, as well as the company’s efforts at remediation or corrective actions, in determining whether withhold/against votes are warranted.
Problematic Compensation Practices
In the absence of an Advisory Vote on Executive Compensation (Say on Pay) ballot item or in egregious situations, vote against or withhold from the members of the Compensation Committee and potentially the full board if:
 
 
◾
 
There is an unmitigated misalignment between CEO pay and company performance (
pay for performance
);
 
◾
 
The company maintains significant
problematic pay practices
; or
 
◾
 
The board exhibits a significant level of
poor communication and responsiveness
to shareholders.
 
   
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B-15
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
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Generally vote against or withhold from the Compensation Committee chair, other committee members, or potentially the full board if:
 
 
◾
 
The company fails to include a Say on Pay ballot item when required under SEC provisions, or under the company’s declared frequency of say on pay; or
 
◾
 
The company fails to include a Frequency of Say on Pay ballot item when required under SEC provisions.
Generally vote against members of the board committee responsible for approving/setting
non-employee
director compensation if there is a pattern (i.e. two or more years) of awarding excessive
non-employee
director compensation without disclosing a compelling rationale or other mitigating factors.
Problematic Pledging of Company Stock:
Vote against the members of the committee that oversees risks related to pledging, or the full board, where a significant level of pledged company sto1ck by executives or directors raises concerns. The following factors will be considered:
 
 
◾
 
The presence of an anti-pledging policy, disclosed in the proxy statement, that prohibits future pledging activity;
 
◾
 
The magnitude of aggregate pledged shares in terms of total common shares outstanding, market value, and trading volume;
 
◾
 
Disclosure of progress or lack thereof in reducing the magnitude of aggregate pledged shares over time;
 
◾
 
Disclosure in the proxy statement that shares subject to stock ownership and holding requirements do not include pledged company stock; and
 
◾
 
Any other relevant factors.
Governance Failures
Under extraordinary circumstances, vote against or withhold from directors individually, committee members, or the entire board, due to:
 
 
◾
 
Material failures of governance, stewardship, risk oversight
9
, or fiduciary responsibilities at the company;
 
◾
 
Failure to replace management as appropriate; or
 
◾
 
Egregious actions related to a director’s service on other boards that raise substantial doubt about his or her ability to effectively oversee management and serve the best interests of shareholders at any company.
Voting on Director Nominees in Contested Elections
Vote-No
Campaigns
 
G68G08.JPG
General Recommendation:
In cases where companies are targeted in connection with public
“vote-no”
campaigns, evaluate director nominees under the existing governance policies for voting on director nominees in uncontested elections. Take into consideration the arguments submitted by shareholders and other publicly available information.
 
 
9
Examples of failure of risk oversight include but are not limited to: bribery; large or serial fines or sanctions from regulatory bodies; demonstrably poor risk oversight of environmental and social issues, including climate change; significant adverse legal judgments or settlement; or hedging of company stock.
 
   
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B-16
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
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Proxy Contests/Proxy Access
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on the election of directors in contested elections, considering the following factors:
 
 
◾
 
Long-term financial performance of the company relative to its industry;
 
◾
 
Management’s track record;
 
◾
 
Background to the contested election;
 
◾
 
Nominee qualifications and any compensatory arrangements;
 
◾
 
Strategic plan of dissident slate and quality of the critique against management;
 
◾
 
Likelihood that the proposed goals and objectives can be achieved (both slates); and
 
◾
 
Stock ownership positions.
In the case of candidates nominated pursuant to proxy access, vote
case-by-case
considering any applicable factors listed above or additional factors which may be relevant, including those that are specific to the company, to the nominee(s) and/or to the nature of the election (such as whether there are more candidates than board seats).
Other Board-Related Proposals
Adopt Anti-Hedging/Pledging/Speculative Investments Policy
 
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General Recommendation:
Generally vote for proposals seeking a policy that prohibits named executive officers from engaging in derivative or speculative transactions involving company stock, including hedging, holding stock in a margin account, or pledging stock as collateral for a loan. However, the company’s existing policies regarding responsible use of company stock will be considered.
Board Refreshment
Board refreshment is best implemented through an ongoing program of individual director evaluations, conducted annually, to ensure the evolving needs of the board are met and to bring in fresh perspectives, skills, and diversity as needed.
Term/Tenure Limits
 
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General Recommendation:
Vote
case-by-case
on management proposals regarding director term/tenure limits, considering:
 
 
◾
 
The rationale provided for adoption of the term/tenure limit;
 
◾
 
The robustness of the company’s board evaluation process;
 
◾
 
Whether the limit is of sufficient length to allow for a broad range of director tenures;
 
◾
 
Whether the limit would disadvantage independent directors compared to
non-independent
directors; and
 
◾
 
Whether the board will impose the limit evenly, and not have the ability to waive it in a discriminatory manner.
Vote
case-by-case
on shareholder proposals asking for the company to adopt director term/tenure limits, considering:
 
 
◾
 
The scope of the shareholder proposal; and
 
◾
 
Evidence of problematic issues at the company combined with, or exacerbated by, a lack of board refreshment.
Age Limits
 
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General Recommendation:
Generally vote against management and shareholder proposals to limit the tenure of independent directors through mandatory retirement ages. Vote for proposals to remove mandatory age limits.
 
   
I S S G O V E R N A N C E . C O M
  
 
17 of 72
 
 
B-17
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Board Size
 
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General Recommendation:
Vote for proposals seeking to fix the board size or designate a range for the board size.
Vote against proposals that give management the ability to alter the size of the board outside of a specified range without shareholder approval.
Classification/Declassification of the Board
 
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General Recommendation:
Vote against proposals to classify (stagger) the board.
Vote for proposals to repeal classified boards and to elect all directors annually.
CEO Succession Planning
 
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General Recommendation:
Generally vote for proposals seeking disclosure on a CEO succession planning policy, considering, at a minimum, the following factors:
 
 
◾
 
The reasonableness/scope of the request; and
 
◾
 
The company’s existing disclosure on its current CEO succession planning process.
Cumulative Voting
 
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General Recommendation:
Generally vote against management proposals to eliminate cumulate voting, and for shareholder proposals to restore or provide for cumulative voting, unless:
 
 
◾
 
The company has proxy access
10
, thereby allowing shareholders to nominate directors to the company’s ballot; and
 
◾
 
The company has adopted a majority vote standard, with a
carve-out
for plurality voting in situations where there are more nominees than seats, and a director resignation policy to address failed elections.
Vote for proposals for cumulative voting at controlled companies (insider voting power > 50%).
Director and Officer Indemnification and Liability Protection
 
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General Recommendation:
Vote
case-by-case
on proposals on director and officer indemnification and liability protection.
Vote against proposals that would:
 
 
◾
 
Eliminate entirely directors’ and officers’ liability for monetary damages for violating the duty of care.
 
◾
 
Expand coverage beyond just legal expenses to liability for acts that are more serious violations of fiduciary obligation than mere carelessness.
 
◾
 
Expand the scope of indemnification to provide for mandatory indemnification of company officials in connection with acts that previously the company was permitted to provide indemnification for, at the discretion of the company’s board (
i.e.
, “permissive indemnification”), but that previously the company was not required to indemnify.
Vote for only those proposals providing such expanded coverage in cases when a director’s or officer’s legal defense was unsuccessful if both of the following apply:
 
 
◾
 
If the director was found to have acted in good faith and in a manner that s/he reasonably believed was in the best interests of the company; and
 
 
10
A proxy access right that meets the
recommended guidelines
.
 
   
I S S G O V E R N A N C E . C O M
  
 
18 of 72
 
 
B-18
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
If only the director’s legal expenses would be covered.
Establish/Amend Nominee Qualifications
 
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General Recommendation:
Vote
case-by-case
on proposals that establish or amend director qualifications. Votes should be based on the reasonableness of the criteria and the degree to which they may preclude dissident nominees from joining the board.
Vote
case-by-case
on shareholder resolutions seeking a director nominee who possesses a particular subject matter expertise, considering:
 
 
◾
 
The company’s board committee structure, existing subject matter expertise, and board nomination provisions relative to that of its peers;
 
◾
 
The company’s existing board and management oversight mechanisms regarding the issue for which board oversight is sought;
 
◾
 
The company’s disclosure and performance relating to the issue for which board oversight is sought and any significant related controversies; and
 
◾
 
The scope and structure of the proposal.
Establish Other Board Committee Proposals
 
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General Recommendation:
Generally vote against shareholder proposals to establish a new board committee, as such proposals seek a specific oversight mechanism/structure that potentially limits a company’s flexibility to determine an appropriate oversight mechanism for itself. However, the following factors will be considered:
 
 
◾
 
Existing oversight mechanisms (including current committee structure) regarding the issue for which board oversight is sought;
 
◾
 
Level of disclosure regarding the issue for which board oversight is sought;
 
◾
 
Company performance related to the issue for which board oversight is sought;
 
◾
 
Board committee structure compared to that of other companies in its industry sector; and
 
◾
 
The scope and structure of the proposal.
Filling Vacancies/Removal of Directors
 
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General Recommendation:
Vote against proposals that provide that directors may be removed only for cause.
Vote for proposals to restore shareholders’ ability to remove directors with or without cause.
Vote against proposals that provide that only continuing directors may elect replacements to fill board vacancies. Vote for proposals that permit shareholders to elect directors to fill board vacancies.
Independent Board Chair
 
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General Recommendation:
Generally vote for shareholder proposals requiring that the board chair position be filled by an independent director, taking into consideration the following:
 
 
◾
 
The scope and rationale of the proposal;
 
◾
 
The company’s current board leadership structure;
 
◾
 
The company’s governance structure and practices;
 
◾
 
Company performance; and
 
◾
 
Any other relevant factors that may be applicable.
The following factors will increase the likelihood of a “for” recommendation:
 
 
◾
 
A majority
non-independent
board and/or the presence of
non-independent
directors on key board committees;
 
   
I S S G O V E R N A N C E . C O M
  
 
19 of 72
 
 
B-19
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
A weak or poorly-defined lead independent director role that fails to serve as an appropriate counterbalance to a combined CEO/chair role;
 
◾
 
The presence of an executive or
non-independent
chair in addition to the CEO, a recent recombination of the role of CEO and chair, and/or departure from a structure with an independent chair;
 
◾
 
Evidence that the board has failed to oversee and address material risks facing the company;
 
◾
 
A material governance failure, particularly if the board has failed to adequately respond to shareholder concerns or if the board has materially diminished shareholder rights; or
 
◾
 
Evidence that the board has failed to intervene when management’s interests are contrary to shareholders’ interests.
Majority of Independent Directors/Establishment of Independent Committees
 
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General Recommendation:
Vote for shareholder proposals asking that a majority or more of directors be independent unless the board composition already meets the proposed threshold by ISS’ definition of Independent Director (See
ISS’ Classification of Directors
.)
Vote for shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors unless they currently meet that standard.
Majority Vote Standard for the Election of Directors
 
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General Recommendation:
Generally vote for management proposals to adopt a majority of votes cast standard for directors in uncontested elections. Vote against if no
carve-out
for a plurality vote standard in contested elections is included.
Generally vote for precatory and binding shareholder resolutions requesting that the board change the company’s bylaws to stipulate that directors need to be elected with an affirmative majority of votes cast, provided it does not conflict with the state law where the company is incorporated. Binding resolutions need to allow for a
carve-out
for a plurality vote standard when there are more nominees than board seats.
Companies are strongly encouraged to also adopt a post-election policy (also known as a director resignation policy) that will provide guidelines so that the company will promptly address the situation of a holdover director.
Proxy Access
 
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General Recommendation:
Generally vote for management and shareholder proposals for proxy access with the following provisions:
 
 
◾
 
Ownership threshold:
maximum requirement not more than three percent (3%) of the voting power;
 
◾
 
Ownership duration:
maximum requirement not longer than three (3) years of continuous ownership for each member of the nominating group;
 
◾
 
Aggregation:
minimal or no limits on the number of shareholders permitted to form a nominating group;
 
◾
 
Cap:
cap on nominees of generally twenty-five percent (25%) of the board.
Review for reasonableness any other restrictions on the right of proxy access.
Generally vote against proposals that are more restrictive than these guidelines.
Require More Nominees than Open Seats
 
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General Recommendation:
Vote against shareholder proposals that would require a company to nominate more candidates than the number of open board seats.
 
   
I S S G O V E R N A N C E . C O M
  
 
20 of 72
 
 
B-20
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Shareholder Engagement Policy (Shareholder Advisory Committee)
 
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General Recommendation:
Generally vote for shareholder proposals requesting that the board establish an internal mechanism/process, which may include a committee, in order to improve communications between directors and shareholders, unless the company has the following features, as appropriate:
 
 
◾
 
Established a communication structure that goes beyond the exchange requirements to facilitate the exchange of information between shareholders and members of the board;
 
◾
 
Effectively disclosed information with respect to this structure to its shareholders;
 
◾
 
Company has not ignored majority-supported shareholder proposals or a majority withhold vote on a director nominee; and
 
◾
 
The company has an independent chair or a lead director, according to I
SS’ definition
. This individual must be made available for periodic consultation and direct communication with major shareholders.
 
   
I S S G O V E R N A N C E . C O M
  
 
21 of 72
 
 
B-21
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
2.   Audit-Related
Auditor Indemnification and Limitation of Liability
 
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General Recommendation:
Vote
case-by-case
on the issue of auditor indemnification and limitation of liability. Factors to be assessed include, but are not limited to:
 
 
◾
 
The terms of the auditor agreement—the degree to which these agreements impact shareholders’ rights;
 
◾
 
The motivation and rationale for establishing the agreements;
 
◾
 
The quality of the company’s disclosure; and
 
◾
 
The company’s historical practices in the audit area.
Vote against or withhold from members of an audit committee in situations where there is persuasive evidence that the audit committee entered into an inappropriate indemnification agreement with its auditor that limits the ability of the company, or its shareholders, to pursue legitimate legal recourse against the audit firm.
Auditor Ratification
 
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General Recommendation:
Vote for proposals to ratify auditors unless any of the following apply:
 
 
◾
 
An auditor has a financial interest in or association with the company, and is therefore not independent;
 
◾
 
There is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position;
 
◾
 
Poor accounting practices are identified that rise to a serious level of concern, such as fraud or misapplication of GAAP; or
 
◾
 
Fees for
non-audit
services (“Other” fees) are excessive.
Non-audit
fees are excessive if:
 
 
◾
 
Non-audit
(“other”) fees > audit fees + audit-related fees + tax compliance/preparation fees
Tax compliance and preparation include the preparation of original and amended tax returns and refund claims, and tax payment planning. All other services in the tax category, such as tax advice, planning, or consulting, should be added to “Other” fees. If the breakout of tax fees cannot be determined, add all tax fees to “Other” fees.
In circumstances where “Other” fees include fees related to significant
one-time
capital structure events (such as initial public offerings, bankruptcy emergence, and spin-offs) and the company makes public disclosure of the amount and nature of those fees that are an exception to the standard
“non-audit
fee” category, then such fees may be excluded from the
non-audit
fees considered in determining the ratio of
non-audit
to audit/audit-related fees/tax compliance and preparation for purposes of determining whether
non-audit
fees are excessive.
Shareholder Proposals Limiting
Non-Audit
Services
 
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General Recommendation:
Vote
case-by-case
on shareholder proposals asking companies to prohibit or limit their auditors from engaging in
non-audit
services.
Shareholder Proposals on Audit Firm Rotation
 
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General Recommendation:
Vote
case-by-case
on shareholder proposals asking for audit firm rotation, taking into account:
 
 
◾
 
The tenure of the audit firm;
 
   
I S S G O V E R N A N C E . C O M
  
 
22 of 72
 
 
B-22
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
The length of rotation specified in the proposal;
 
◾
 
Any significant audit-related issues at the company;
 
◾
 
The number of Audit Committee meetings held each year;
 
◾
 
The number of financial experts serving on the committee; and
 
◾
 
Whether the company has a periodic renewal process where the auditor is evaluated for both audit quality and competitive price.
 
   
I S S G O V E R N A N C E . C O M
  
 
23 of 72
 
 
B-23
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
3.   Shareholder Rights & Defenses
Advance Notice Requirements for Shareholder Proposals/Nominations
 
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General Recommendation:
Vote
case-by-case
on advance notice proposals, giving support to those proposals which allow shareholders to submit proposals/nominations as close to the meeting date as reasonably possible and within the broadest window possible, recognizing the need to allow sufficient notice for company, regulatory, and shareholder review.
To be reasonable, the company’s deadline for shareholder notice of a proposal/nominations must be no earlier than 120 days prior to the anniversary of the previous year’s meeting and have a submittal window of no shorter than 30 days from the beginning of the notice period (also known as a
90-120
day window).The submittal window is the period under which shareholders must file their proposals/nominations prior to the deadline.
In general, support additional efforts by companies to ensure full disclosure in regard to a proponent’s economic and voting position in the company so long as the informational requirements are reasonable and aimed at providing shareholders with the necessary information to review such proposals.
Amend Bylaws without Shareholder Consent
 
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General Recommendation:
Vote against proposals giving the board exclusive authority to amend the bylaws.
Vote
case-by-case
on proposals giving the board the ability to amend the bylaws in addition to shareholders, taking into account the following:
 
 
◾
 
Any impediments to shareholders’ ability to amend the bylaws (i.e. supermajority voting requirements);
 
◾
 
The company’s ownership structure and historical voting turnout;
 
◾
 
Whether the board could amend bylaws adopted by shareholders; and
 
◾
 
Whether shareholders would retain the ability to ratify any board-initiated amendments.
Control Share Acquisition Provisions
 
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General Recommendation:
Vote for proposals to opt out of control share acquisition statutes unless doing so would enable the completion of a takeover that would be detrimental to shareholders.
Vote against proposals to amend the charter to include control share acquisition provisions.
Vote for proposals to restore voting rights to the control shares.
Control share acquisition statutes function by denying shares their voting rights when they contribute to ownership in excess of certain thresholds. Voting rights for those shares exceeding ownership limits may only be restored by approval of either a majority or supermajority of disinterested shares. Thus, control share acquisition statutes effectively require a hostile bidder to put its offer to a shareholder vote or risk voting disenfranchisement if the bidder continues buying up a large block of shares.
Control Share
Cash-Out
Provisions
 
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General Recommendation:
Vote for proposals to opt out of control share
cash-out
statutes.
Control share
cash-out
statutes give dissident shareholders the right to
“cash-out”
of their position in a company at the expense of the shareholder who has taken a control position. In other words, when an investor crosses a
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-24
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
preset threshold level, remaining shareholders are given the right to sell their shares to the acquirer, who must buy them at the highest acquiring price.
Disgorgement Provisions
 
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General Recommendation:
Vote for proposals to opt out of state disgorgement provisions.
Disgorgement provisions require an acquirer or potential acquirer of more than a certain percentage of a company’s stock to disgorge, or pay back, to the company any profits realized from the sale of that company’s stock purchased 24 months before achieving control status. All sales of company stock by the acquirer occurring within a certain period of time (between 18 months and 24 months) prior to the investor’s gaining control status are subject to these
recapture-of-profits
provisions.
Fair Price Provisions
 
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General Recommendation:
Vote
case-by-case
on proposals to adopt fair price provisions (provisions that stipulate that an acquirer must pay the same price to acquire all shares as it paid to acquire the control shares), evaluating factors such as the vote required to approve the proposed acquisition, the vote required to repeal the fair price provision, and the mechanism for determining the fair price.
Generally vote against fair price provisions with shareholder vote requirements greater than a majority of disinterested shares.
Freeze-Out
Provisions
 
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General Recommendation:
Vote for proposals to opt out of state
freeze-out
provisions.
Freeze-out
provisions force an investor who surpasses a certain ownership threshold in a company to wait a specified period of time before gaining control of the company.
Greenmail
 
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General Recommendation:
Vote for proposals to adopt anti-greenmail charter or bylaw amendments or otherwise restrict a company’s ability to make greenmail payments.
Vote
case-by-case
on anti-greenmail proposals when they are bundled with other charter or bylaw amendments.
Greenmail payments are targeted share repurchases by management of company stock from individuals or groups seeking control of the company. Since only the hostile party receives payment, usually at a substantial premium over the market value of its shares, the practice discriminates against all other shareholders.
Shareholder Litigation Rights
Federal Forum Selection Provisions
Federal forum selection provisions require that U.S. federal courts be the sole forum for shareholders to litigate claims arising under federal securities law.
 
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General Recommendation:
Generally vote for federal forum selection provisions in the charter or bylaws that specify “the district courts of the United States” as the exclusive forum for federal securities law matters, in the absence of serious concerns about corporate governance or board responsiveness to shareholders.
Vote against provisions that restrict the forum to a particular federal district court; unilateral adoption (without a shareholder vote) of such a provision will generally be considered a
one-time
failure under the
Unilateral Bylaw/Charter Amendments
policy.
 
   
I S S G O V E R N A N C E . C O M
  
 
25 of 72
 
 
B-25
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Exclusive Forum Provisions for State Law Matters
Exclusive forum provisions in the charter or bylaws restrict shareholders’ ability to bring derivative lawsuits against the company, for claims arising out of state corporate law, to the courts of a particular state (generally the state of incorporation).
 
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General Recommendation:
Generally vote for charter or bylaw provisions that specify courts located within the state of Delaware as the exclusive forum for corporate law matters for Delaware corporations, in the absence of serious concerns about corporate governance or board responsiveness to shareholders.
For states other than Delaware, vote
case-by-case
on exclusive forum provisions, taking into consideration:
 
 
◾
 
The company’s stated rationale for adopting such a provision;
 
◾
 
Disclosure of past harm from duplicative shareholder lawsuits in more than one forum;
 
◾
 
The breadth of application of the charter or bylaw provision, including the types of lawsuits to which it would apply and the definition of key terms; and
 
◾
 
Governance features such as shareholders’ ability to repeal the provision at a later date (including the vote standard applied when shareholders attempt to amend the charter or bylaws) and their ability to hold directors accountable through annual director elections and a majority vote standard in uncontested elections.
Generally vote against provisions that specify a state other than the state of incorporation as the exclusive forum for corporate law matters, or that specify a particular local court within the state; unilateral adoption of such a provision will generally be considered a
one-time
failure under the
Unilateral Bylaw/Charter Amendments
policy.
Fee shifting
Fee-shifting
provisions in the charter or bylaws require that a shareholder who sues a company unsuccessfully pay all litigation expenses of the defendant corporation and its directors and officers.
 
G68G08.JPG
General Recommendation:
Generally vote against provisions that mandate
fee-shifting
whenever plaintiffs are not completely successful on the merits (i.e., including cases where the plaintiffs are partially successful).
Unilateral adoption of a
fee-shifting
provision will generally be considered an ongoing failure under the
Unilateral
Bylaw/Charter Amendments
policy.
Net Operating Loss (NOL) Protective Amendments
 
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General Recommendation:
Vote against proposals to adopt a protective amendment for the stated purpose of protecting a company’s net operating losses (NOL) if the effective term of the protective amendment would exceed the shorter of three years and the exhaustion of the NOL.
Vote
case-by-case,
considering the following factors, for management proposals to adopt an NOL protective amendment that would remain in effect for the shorter of three years (or less) and the exhaustion of the NOL:
 
 
◾
 
The ownership threshold (NOL protective amendments generally prohibit stock ownership transfers that would result in a new
5-percent
holder or increase the stock ownership percentage of an existing
5-percent
holder);
 
◾
 
The value of the NOLs;
 
   
I S S G O V E R N A N C E . C O M
  
 
26 of 72
 
 
B-26
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Shareholder protection mechanisms (sunset provision or commitment to cause expiration of the protective amendment upon exhaustion or expiration of the NOL);
 
◾
 
The company’s existing governance structure including: board independence, existing takeover defenses, track record of responsiveness to shareholders, and any other problematic governance concerns; and
 
◾
 
Any other factors that may be applicable.
Poison Pills (Shareholder Rights Plans)
Shareholder Proposals to Put Pill to a Vote and/or Adopt a Pill Policy
 
G68G08.JPG
General Recommendation:
Vote for shareholder proposals requesting that the company submit its poison pill to a shareholder vote or redeem it unless the company has: (1) A shareholder-approved poison pill in place; or (2) The company has adopted a policy concerning the adoption of a pill in the future specifying that the board will only adopt a shareholder rights plan if either:
 
 
◾
 
Shareholders have approved the adoption of the plan; or
 
◾
 
The board, in its exercise of its fiduciary responsibilities, determines that it is in the best interest of shareholders under the circumstances to adopt a pill without the delay in adoption that would result from seeking stockholder approval (i.e., the “fiduciary out” provision). A poison pill adopted under this fiduciary out will be put to a shareholder ratification vote within 12 months of adoption or expire. If the pill is not approved by a majority of the votes cast on this issue, the plan will immediately terminate.
If the shareholder proposal calls for a time period of less than 12 months for shareholder ratification after adoption, vote for the proposal, but add the caveat that a vote within 12 months would be considered sufficient implementation.
Management Proposals to Ratify a Poison Pill
 
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General Recommendation:
Vote
case-by-case
on management proposals on poison pill ratification, focusing on the features of the shareholder rights plan. Rights plans should contain the following attributes:
 
 
◾
 
No lower than a 20 percent trigger,
flip-in
or flip-over;
 
◾
 
A term of no more than three years;
 
◾
 
No deadhand, slowhand,
no-hand,
or similar feature that limits the ability of a future board to redeem the pill;
 
◾
 
Shareholder redemption feature (qualifying offer clause); if the board refuses to redeem the pill 90 days after a qualifying offer is announced, 10 percent of the shares may call a special meeting or seek a written consent to vote on rescinding the pill.
In addition, the rationale for adopting the pill should be thoroughly explained by the company. In examining the request for the pill, take into consideration the company’s existing governance structure, including: board independence, existing takeover defenses, and any problematic governance concerns.
Management Proposals to Ratify a Pill to Preserve Net Operating Losses (NOLs)
 
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General Recommendation:
Vote against proposals to adopt a poison pill for the stated purpose of protecting a company’s net operating losses (NOL) if the term of the pill would exceed the shorter of three years and the exhaustion of the NOL.
Vote
case-by-case
on management proposals for poison pill ratification, considering the following factors, if the term of the pill would be the shorter of three years (or less) and the exhaustion of the NOL:
 
 
◾
 
The ownership threshold to transfer (NOL pills generally have a trigger slightly below 5 percent);
 
◾
 
The value of the NOLs;
 
◾
 
Shareholder protection mechanisms (sunset provision, or commitment to cause expiration of the pill upon exhaustion or expiration of NOLs);
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-27
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
The company’s existing governance structure including: board independence, existing takeover defenses, track record of responsiveness to shareholders, and any other problematic governance concerns; and
 
◾
 
Any other factors that may be applicable.
Proxy Voting Disclosure, Confidentiality, and Tabulation
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals regarding proxy voting mechanics, taking into consideration whether implementation of the proposal is likely to enhance or protect shareholder rights. Specific issues covered under the policy include, but are not limited to, confidential voting of individual proxies and ballots, confidentiality of running vote tallies, and the treatment of abstentions and/or broker
non-votes
in the company’s vote-counting methodology.
While a variety of factors may be considered in each analysis, the guiding principles are: transparency, consistency, and fairness in the proxy voting process. The factors considered, as applicable to the proposal, may include:
 
 
◾
 
The scope and structure of the proposal;
 
◾
 
The company’s stated confidential voting policy (or other relevant policies) and whether it ensures a “level playing field” by providing shareholder proponents with equal access to vote information prior to the annual meeting;
 
◾
 
The company’s vote standard for management and shareholder proposals and whether it ensures consistency and fairness in the proxy voting process and maintains the integrity of vote results;
 
◾
 
Whether the company’s disclosure regarding its vote counting method and other relevant voting policies with respect to management and shareholder proposals are consistent and clear;
 
◾
 
Any recent controversies or concerns related to the company’s proxy voting mechanics;
 
◾
 
Any unintended consequences resulting from implementation of the proposal; and
 
◾
 
Any other factors that may be relevant.
Ratification Proposals: Management Proposals to Ratify Existing Charter or Bylaw Provisions
 
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General Recommendation:
Generally vote against management proposals to ratify provisions of the company’s existing charter or bylaws, unless these governance provisions align with best practice.
In addition, voting against/withhold from individual directors, members of the governance committee, or the full board may be warranted, considering:
 
 
◾
 
The presence of a shareholder proposal addressing the same issue on the same ballot;
 
◾
 
The board’s rationale for seeking ratification;
 
◾
 
Disclosure of actions to be taken by the board should the ratification proposal fail;
 
◾
 
Disclosure of shareholder engagement regarding the board’s ratification request;
 
◾
 
The level of impairment to shareholders’ rights caused by the existing provision;
 
◾
 
The history of management and shareholder proposals on the provision at the company’s past meetings;
 
◾
 
Whether the current provision was adopted in response to the shareholder proposal;
 
◾
 
The company’s ownership structure; and
 
◾
 
Previous use of ratification proposals to exclude shareholder proposals.
Reimbursing Proxy Solicitation Expenses
 
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General Recommendation:
Vote
case-by-case
on proposals to reimburse proxy solicitation expenses.
When voting in conjunction with support of a dissident slate, vote for the reimbursement of all appropriate proxy solicitation expenses associated with the election.
Generally vote for shareholder proposals calling for the reimbursement of reasonable costs incurred in connection with nominating one or more candidates in a contested election where the following apply:
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-28
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
The election of fewer than 50 percent of the directors to be elected is contested in the election;
 
◾
 
One or more of the dissident’s candidates is elected;
 
◾
 
Shareholders are not permitted to cumulate their votes for directors; and
 
◾
 
The election occurred, and the expenses were incurred, after the adoption of this bylaw.
Reincorporation Proposals
 
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General Recommendation:
Management or shareholder proposals to change a company’s state of incorporation should be evaluated
case-by-case,
giving consideration to both financial and corporate governance concerns including the following:
 
 
◾
 
Reasons for reincorporation;
 
◾
 
Comparison of company’s governance practices and provisions prior to and following the reincorporation; and
 
◾
 
Comparison of corporation laws of original state and destination state.
Vote for reincorporation when the economic factors outweigh any neutral or negative governance changes.
Shareholder Ability to Act by Written Consent
 
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General Recommendation:
Generally vote against management and shareholder proposals to restrict or prohibit shareholders’ ability to act by written consent.
Generally vote for management and shareholder proposals that provide shareholders with the ability to act by written consent, taking into account the following factors:
 
 
◾
 
Shareholders’ current right to act by written consent;
 
◾
 
The consent threshold;
 
◾
 
The inclusion of exclusionary or prohibitive language;
 
◾
 
Investor ownership structure; and
 
◾
 
Shareholder support of, and management’s response to, previous shareholder proposals.
Vote
case-by-case
on shareholder proposals if, in addition to the considerations above, the company has the following governance and antitakeover provisions:
 
 
◾
 
An unfettered
11
right for shareholders to call special meetings at a 10 percent threshold;
 
◾
 
A majority vote standard in uncontested director elections;
 
◾
 
No
non-shareholder-approved
pill; and
 
◾
 
An annually elected board.
Shareholder Ability to Call Special Meetings
 
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General Recommendation:
Vote against management or shareholder proposals to restrict or prohibit shareholders’ ability to call special meetings.
Generally vote for management or shareholder proposals that provide shareholders with the ability to call special meetings taking into account the following factors:
 
 
◾
 
Shareholders’ current right to call special meetings;
 
◾
 
Minimum ownership threshold necessary to call special meetings (10 percent preferred);
 
◾
 
The inclusion of exclusionary or prohibitive language;
 
11
“Unfettered” means no restrictions on agenda items, no restrictions on the number of shareholders who can group together to reach the 10 percent threshold, and only reasonable limits on when a meeting can be called: no greater than 30 days after the last annual meeting and no greater than 90 prior to the next annual meeting.
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-29
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Investor ownership structure; and
 
◾
 
Shareholder support of, and management’s response to, previous shareholder proposals.
Stakeholder Provisions
 
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General Recommendation:
Vote against proposals that ask the board to consider
non-shareholder
constituencies or other
non-financial
effects when evaluating a merger or business combination.
State Antitakeover Statutes
 
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General Recommendation:
Vote
case-by-case
on proposals to opt in or out of state takeover statutes (including fair price provisions, stakeholder laws, poison pill endorsements, severance pay and labor contract provisions, and anti-greenmail provisions).
Supermajority Vote Requirements
 
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General Recommendation:
Vote against proposals to require a supermajority shareholder vote.
 
 
◾
 
Vote for management or shareholder proposals to reduce supermajority vote requirements. However, for companies with shareholder(s) who have significant ownership levels, vote
case-by-case,
taking into account:
 
◾
 
Ownership structure;
 
◾
 
Quorum requirements; and
 
◾
 
Vote requirements.
Virtual Shareholder Meetings
 
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General Recommendation:
Generally vote for management proposals allowing for the convening of shareholder meetings by electronic means, so long as they do not preclude
in-person
meetings. Companies are encouraged to disclose the circumstances under which virtual-only
12
meetings would be held, and to allow for comparable rights and opportunities for shareholders to participate electronically as they would have during an
in-person
meeting.
Vote
case-by-case
on shareholder proposals concerning virtual-only meetings, considering:
 
 
◾
 
Scope and rationale of the proposal; and
 
◾
 
Concerns identified with the company’s prior meeting practices.
 
 
12
Virtual-only shareholder meeting” refers to a meeting of shareholders that is held exclusively using technology without a corresponding
in-person
meeting.
 
   
I S S G O V E R N A N C E . C O M
  
 
30 of 72
 
 
B-30
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
4. Capital/Restructuring
Capital
Adjustments to Par Value of Common Stock
 
 
 
 
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General Recommendation:
Vote for management proposals to reduce the par value of common stock unless the action is being taken to facilitate an anti-takeover device or some other negative corporate governance action.
Vote for management proposals to eliminate par value.
Common Stock Authorization
 
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General Recommendation:
Vote for proposals to increase the number of authorized common shares where the primary purpose of the increase is to issue shares in connection with a transaction on the same ballot that warrants support.
Vote against proposals at companies with more than one class of common stock to increase the number of authorized shares of the class of common stock that has superior voting rights.
Vote against proposals to increase the number of authorized common shares if a vote for a reverse stock split on the same ballot is warranted despite the fact that the authorized shares would not be reduced proportionally.
Vote
case-by-case
on all other proposals to increase the number of shares of common stock authorized for issuance. Take into account company-specific factors that include, at a minimum, the following:
 
 
◾
 
Past Board Performance:
 
◾
 
The company’s use of authorized shares during the last three years;
 
 
◾
 
The Current Request:
 
◾
 
Disclosure in the proxy statement of the specific purposes of the proposed increase;
 
◾
 
Disclosure in the proxy statement of specific and severe risks to shareholders of not approving the request; and
 
◾
 
The dilutive impact of the request as determined relative to an allowable increase calculated by ISS (typically 100 percent of existing authorized shares) that reflects the company’s need for shares and total shareholder returns.
ISS will apply the relevant allowable increase below to requests to increase common stock that are for general corporate purposes (or to the general corporate purposes portion of a request that also includes a specific need):
 
 
A.
Most companies:
100
 percent
of existing authorized shares.
 
B.
Companies with less than 50 percent of existing authorized shares either outstanding or reserved for issuance:
50
 percent
of existing authorized shares.
 
C.
Companies with
one-
and three-year total shareholder returns (TSRs) in the bottom 10 percent of the U.S. market as of the end of the calendar quarter that is closest to their most recent fiscal year end:
50
 percent
of existing authorized shares.
 
D.
Companies at which both conditions (B and C) above are both present:
25
 percent
of existing authorized shares.
If there is an acquisition, private placement, or similar transaction on the ballot (not including equity incentive plans) that ISS is recommending FOR, the allowable increase will be the greater of (i) twice the amount needed to support the transactions on the ballot, and (ii) the allowable increase as calculated above.
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-31
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Dual Class Structure
 
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General Recommendation:
Generally vote against proposals to create a new class of common stock unless:
 
 
◾
 
The company discloses a compelling rationale for the dual-class capital structure, such as:
 
◾
 
The company’s auditor has concluded that there is substantial doubt about the company’s ability to continue as a going concern; or
 
◾
 
The new class of shares will be transitory;
 
◾
 
The new class is intended for financing purposes with minimal or no dilution to current shareholders in both the short term and long term; and
 
◾
 
The new class is not designed to preserve or increase the voting power of an insider or significant shareholder.
Issue Stock for Use with Rights Plan
 
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General Recommendation:
Vote against proposals that increase authorized common stock for the explicit purpose of implementing a
non-shareholder-approved
shareholder rights plan (poison pill).
Preemptive Rights
 
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General Recommendation:
Vote
case-by-case
on shareholder proposals that seek preemptive rights, taking into consideration:
 
 
◾
 
The size of the company;
 
◾
 
The shareholder base; and
 
◾
 
The liquidity of the stock.
Preferred Stock Authorization
 
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General Recommendation:
Vote for proposals to increase the number of authorized preferred shares where the primary purpose of the increase is to issue shares in connection with a transaction on the same ballot that warrants support.
Vote against proposals at companies with more than one class or series of preferred stock to increase the number of authorized shares of the class or series of preferred stock that has superior voting rights.
Vote
case-by-case
on all other proposals to increase the number of shares of preferred stock authorized for issuance. Take into account company-specific factors that include, at a minimum, the following:
 
 
◾
 
Past Board Performance:
 
◾
 
The company’s use of authorized preferred shares during the last three years;
 
 
◾
 
The Current Request:
 
◾
 
Disclosure in the proxy statement of the specific purposes for the proposed increase;
 
◾
 
Disclosure in the proxy statement of specific and severe risks to shareholders of not approving the request;
 
◾
 
In cases where the company has existing authorized preferred stock, the dilutive impact of the request as determined by an allowable increase calculated by ISS (typically 100 percent of existing authorized shares) that reflects the company’s need for shares and total shareholder returns; and
 
◾
 
Whether the shares requested are blank check preferred shares that can be used for antitakeover purposes.
Recapitalization Plans
 
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General Recommendation:
Vote
case-by-case
on recapitalizations (reclassifications of securities), taking into account the following:
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-32
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
More simplified capital structure;
 
◾
 
Enhanced liquidity;
 
◾
 
Fairness of conversion terms;
 
◾
 
Impact on voting power and dividends;
 
◾
 
Reasons for the reclassification;
 
◾
 
Conflicts of interest; and
 
◾
 
Other alternatives considered.
Reverse Stock Splits
 
G68G08.JPG
General Recommendation:
Vote for management proposals to implement a reverse stock split if:
 
 
◾
 
The number of authorized shares will be proportionately reduced; or
 
◾
 
The effective increase in authorized shares is equal to or less than the allowable increase calculated in accordance with ISS’ Common Stock Authorization policy.
Vote
case-by-case
on proposals that do not meet either of the above conditions, taking into consideration the following factors:
 
 
◾
 
Stock exchange notification to the company of a potential delisting;
 
◾
 
Disclosure of substantial doubt about the company’s ability to continue as a going concern without additional financing;
 
◾
 
The company’s rationale; or
 
◾
 
Other factors as applicable.
Share Repurchase Programs
 
G68G08.JPG
General Recommendation:
For U.S.-incorporated companies, and foreign-incorporated U.S. Domestic Issuers that are traded solely on U.S. exchanges,
vote for management proposals to institute open-market share repurchase plans in which all shareholders may participate on equal terms, or to grant the board authority to conduct open-market repurchases, in the absence of company-specific concerns regarding:
 
 
◾
 
Greenmail,
 
◾
 
The use of buybacks to inappropriately manipulate incentive compensation metrics,
 
◾
 
Threats to the company’s long-term viability, or
 
◾
 
Other company-specific factors as warranted.
Vote
case-by-case
on proposals to repurchase shares directly from specified shareholders, balancing the stated rationale against the possibility for the repurchase authority to be misused, such as to repurchase shares from insiders at a premium to market price.
Share Repurchase Programs Shareholder Proposals
 
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General Recommendation:
Generally vote against shareholder proposals prohibiting executives from selling shares of company stock during periods in which the company has announced that it may or will be repurchasing shares of its stock. Vote for the proposal when there is a pattern of abuse by executives exercising options or selling shares during periods of share buybacks.
Stock Distributions: Splits and Dividends
 
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General Recommendation:
Generally vote for management proposals to increase the common share authorization for stock split or stock dividend, provided that the effective increase in authorized shares is equal to or is less than the allowable increase calculated in accordance with ISS’ Common Stock Authorization policy.
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-33
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Tracking Stock
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on the creation of tracking stock, weighing the strategic value of the transaction against such factors as:
 
 
◾
 
Adverse governance changes;
 
◾
 
Excessive increases in authorized capital stock;
 
◾
 
Unfair method of distribution;
 
◾
 
Diminution of voting rights;
 
◾
 
Adverse conversion features;
 
◾
 
Negative impact on stock option plans; and
 
◾
 
Alternatives such as
spin-off.
Restructuring
Appraisal Rights
 
G68G08.JPG
General Recommendation:
Vote for proposals to restore or provide shareholders with rights of appraisal.
Asset Purchases
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on asset purchase proposals, considering the following factors:
 
 
◾
 
Purchase price;
 
◾
 
Fairness opinion;
 
◾
 
Financial and strategic benefits;
 
◾
 
How the deal was negotiated;
 
◾
 
Conflicts of interest;
 
◾
 
Other alternatives for the business;
 
◾
 
Non-completion
risk.
Asset Sales
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on asset sales, considering the following factors:
 
 
◾
 
Impact on the balance sheet/working capital;
 
◾
 
Potential elimination of diseconomies;
 
◾
 
Anticipated financial and operating benefits;
 
◾
 
Anticipated use of funds;
 
◾
 
Value received for the asset;
 
◾
 
Fairness opinion;
 
◾
 
How the deal was negotiated;
 
◾
 
Conflicts of interest.
Bundled Proposals
 
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General Recommendation:
Vote
case-by-case
on bundled or “conditional” proxy proposals. In the case of items that are conditioned upon each other, examine the benefits and costs of the packaged items. In instances when the joint effect of the conditioned items is not in shareholders’ best interests, vote against the proposals. If the combined effect is positive, support such proposals.
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-34
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Conversion of Securities
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals regarding conversion of securities. When evaluating these proposals, the investor should review the dilution to existing shareholders, the conversion price relative to market value, financial issues, control issues, termination penalties, and conflicts of interest.
Vote for the conversion if it is expected that the company will be subject to onerous penalties or will be forced to file for bankruptcy if the transaction is not approved.
Corporate Reorganization/Debt Restructuring/Prepackaged Bankruptcy Plans/Reverse Leveraged Buyouts/Wrap Plans
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring plan, after evaluating:
 
 
◾
 
Dilution to existing shareholders’ positions;
 
◾
 
Terms of the offer - discount/premium in purchase price to investor, including any fairness opinion; termination penalties; exit strategy;
 
◾
 
Financial issues - company’s financial situation; degree of need for capital; use of proceeds; effect of the financing on the company’s cost of capital;
 
◾
 
Management’s efforts to pursue other alternatives;
 
◾
 
Control issues - change in management; change in control, guaranteed board and committee seats; standstill provisions; voting agreements; veto power over certain corporate actions; and
 
◾
 
Conflict of interest - arm’s length transaction, managerial incentives.
Vote for the debt restructuring if it is expected that the company will file for bankruptcy if the transaction is not approved.
Formation of Holding Company
 
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General Recommendation:
Vote
case-by-case
on proposals regarding the formation of a holding company, taking into consideration the following:
 
 
◾
 
The reasons for the change;
 
◾
 
Any financial or tax benefits;
 
◾
 
Regulatory benefits;
 
◾
 
Increases in capital structure; and
 
◾
 
Changes to the articles of incorporation or bylaws of the company.
Absent compelling financial reasons to recommend for the transaction, vote against the formation of a holding company if the transaction would include either of the following:
 
 
◾
 
Increases in common or preferred stock in excess of the allowable maximum (see discussion under “Capital”); or
 
◾
 
Adverse changes in shareholder rights.
Going Private and Going Dark Transactions (LBOs and Minority
Squeeze-outs)
 
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General Recommendation:
Vote
case-by-case
on going private transactions, taking into account the following:
 
 
◾
 
Offer price/premium;
 
◾
 
Fairness opinion;
 
◾
 
How the deal was negotiated;
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-35
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Conflicts of interest;
 
◾
 
Other alternatives/offers considered; and
 
◾
 
Non-completion
risk.
Vote
case-by-case
on going dark transactions, determining whether the transaction enhances shareholder value by taking into consideration:
 
 
◾
 
Whether the company has attained benefits from being publicly-traded (examination of trading volume, liquidity, and market research of the stock);
 
◾
 
Balanced interests of continuing vs.
cashed-out
shareholders, taking into account the following:
 
◾
 
Are all shareholders able to participate in the transaction?
 
◾
 
Will there be a liquid market for remaining shareholders following the transaction?
 
◾
 
Does the company have strong corporate governance?
 
◾
 
Will insiders reap the gains of control following the proposed transaction?
 
◾
 
Does the state of incorporation have laws requiring continued reporting that may benefit shareholders?
Joint Ventures
 
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General Recommendation:
Vote
case-by-case
on proposals to form joint ventures, taking into account the following:
 
 
◾
 
Percentage of assets/business contributed;
 
◾
 
Percentage ownership;
 
◾
 
Financial and strategic benefits;
 
◾
 
Governance structure;
 
◾
 
Conflicts of interest;
 
◾
 
Other alternatives; and
 
◾
 
Non-completion
risk.
Liquidations
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on liquidations, taking into account the following:
 
 
◾
 
Management’s efforts to pursue other alternatives;
 
◾
 
Appraisal value of assets; and
 
◾
 
The compensation plan for executives managing the liquidation.
Vote for the liquidation if the company will file for bankruptcy if the proposal is not approved.
Mergers and Acquisitions
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on mergers and acquisitions. Review and evaluate the merits and drawbacks of the proposed transaction, balancing various and sometimes countervailing factors including:
 
 
◾
 
Valuation
- Is the value to be received by the target shareholders (or paid by the acquirer) reasonable? While the fairness opinion may provide an initial starting point for assessing valuation reasonableness, emphasis is placed on the offer premium, market reaction, and strategic rationale.
 
◾
 
Market reaction
- How has the market responded to the proposed deal? A negative market reaction should cause closer scrutiny of a deal.
 
◾
 
Strategic rationale
- Does the deal make sense strategically? From where is the value derived? Cost and revenue synergies should not be overly aggressive or optimistic, but reasonably achievable. Management should also have a favorable track record of successful integration of historical acquisitions.
 
   
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B-36
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Negotiations and process
- Were the terms of the transaction negotiated at
arm’s-length?
Was the process fair and equitable? A fair process helps to ensure the best price for shareholders. Significant negotiation “wins” can also signify the deal makers’ competency. The comprehensiveness of the sales process (e.g., full auction, partial auction, no auction) can also affect shareholder value.
 
◾
 
Conflicts of interest
- Are insiders benefiting from the transaction disproportionately and inappropriately as compared to
non-insider
shareholders? As the result of potential conflicts, the directors and officers of the company may be more likely to vote to approve a merger than if they did not hold these interests. Consider whether these interests may have influenced these directors and officers to support or recommend the merger. The CIC figure presented in the “ISS Transaction Summary” section of this report is an aggregate figure that can in certain cases be a misleading indicator of the true value transfer from shareholders to insiders. Where such figure appears to be excessive, analyze the underlying assumptions to determine whether a potential conflict exists.
 
◾
 
Governance
- Will the combined company have a better or worse governance profile than the current governance profiles of the respective parties to the transaction? If the governance profile is to change for the worse, the burden is on the company to prove that other issues (such as valuation) outweigh any deterioration in governance.
Private Placements/Warrants/Convertible Debentures
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals regarding private placements, warrants, and convertible debentures taking into consideration:
 
 
◾
 
Dilution to existing shareholders’ position: The amount and timing of shareholder ownership dilution should be weighed against the needs and proposed shareholder benefits of the capital infusion. Although newly issued common stock, absent preemptive rights, is typically dilutive to existing shareholders, share price appreciation is often the necessary event to trigger the exercise of “out of the money” warrants and convertible debt. In these instances from a value standpoint, the negative impact of dilution is mitigated by the increase in the company’s stock price that must occur to trigger the dilutive event.
 
 
◾
 
Terms of the offer (discount/premium in purchase price to investor, including any fairness opinion, conversion features, termination penalties, exit strategy):
 
 
◾
 
The terms of the offer should be weighed against the alternatives of the company and in light of company’s financial condition. Ideally, the conversion price for convertible debt and the exercise price for warrants should be at a premium to the then prevailing stock price at the time of private placement.
 
 
◾
 
When evaluating the magnitude of a private placement discount or premium, consider factors that influence the discount or premium, such as, liquidity, due diligence costs, control and monitoring costs, capital scarcity, information asymmetry, and anticipation of future performance.
 
 
◾
 
Financial issues:
 
◾
 
The company’s financial condition;
 
◾
 
Degree of need for capital;
 
◾
 
Use of proceeds;
 
◾
 
Effect of the financing on the company’s cost of capital;
 
◾
 
Current and proposed cash burn rate;
 
◾
 
Going concern viability and the state of the capital and credit markets.
 
 
◾
 
Management’s efforts to pursue alternatives and whether the company engaged in a process to evaluate alternatives: A fair, unconstrained process helps to ensure the best price for shareholders. Financing alternatives can include joint ventures, partnership, merger, or sale of part or all of the company.
 
 
◾
 
Control issues:
 
   
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◾
 
Change in management;
 
◾
 
Change in control;
 
◾
 
Guaranteed board and committee seats;
 
◾
 
Standstill provisions;
 
◾
 
Voting agreements;
 
◾
 
Veto power over certain corporate actions; and
 
◾
 
Minority versus majority ownership and corresponding minority discount or majority control premium.
 
 
◾
 
Conflicts of interest:
 
◾
 
Conflicts of interest should be viewed from the perspective of the company and the investor.
 
◾
 
Were the terms of the transaction negotiated at arm’s length? Are managerial incentives aligned with shareholder interests?
 
 
◾
 
Market reaction:
 
◾
 
The market’s response to the proposed deal. A negative market reaction is a cause for concern. Market reaction may be addressed by analyzing the
one-day
impact on the unaffected stock price.
Vote for the private placement, or for the issuance of warrants and/or convertible debentures in a private placement, if it is expected that the company will file for bankruptcy if the transaction is not approved.
Reorganization/Restructuring Plan (Bankruptcy)
 
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General Recommendation:
Vote
case-by-case
on proposals to common shareholders on bankruptcy plans of reorganization, considering the following factors including, but not limited to:
 
 
◾
 
Estimated value and financial prospects of the reorganized company;
 
◾
 
Percentage ownership of current shareholders in the reorganized company;
 
◾
 
Whether shareholders are adequately represented in the reorganization process (particularly through the existence of an Official Equity Committee);
 
◾
 
The cause(s) of the bankruptcy filing, and the extent to which the plan of reorganization addresses the cause(s);
 
◾
 
Existence of a superior alternative to the plan of reorganization; and
 
◾
 
Governance of the reorganized company.
Special Purpose Acquisition Corporations (SPACs)
 
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General Recommendation:
Vote
case-by-case
on SPAC mergers and acquisitions taking into account the following:
 
 
◾
 
Valuation
- Is the value being paid by the SPAC reasonable? SPACs generally lack an independent fairness opinion and the financials on the target may be limited. Compare the conversion price with the intrinsic value of the target company provided in the fairness opinion. Also, evaluate the proportionate value of the combined entity attributable to the SPAC IPO shareholders versus the
pre-merger
value of SPAC. Additionally, a private company discount may be applied to the target, if it is a private entity.
 
◾
 
Market reaction
- How has the market responded to the proposed deal? A negative market reaction may be a cause for concern. Market reaction may be addressed by analyzing the
one-day
impact on the unaffected stock price.
 
◾
 
Deal timing
- A main driver for most transactions is that the SPAC charter typically requires the deal to be complete within 18 to 24 months, or the SPAC is to be liquidated. Evaluate the valuation, market reaction, and potential conflicts of interest for deals that are announced close to the liquidation date.
 
◾
 
Negotiations and process
- What was the process undertaken to identify potential target companies within specified industry or location specified in charter? Consider the background of the sponsors.
 
◾
 
Conflicts of interest
- How are sponsors benefiting from the transaction compared to IPO shareholders? Potential conflicts could arise if a fairness opinion is issued by the insiders to qualify the deal rather than a
 
   
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third party or if management is encouraged to pay a higher price for the target because of an 80 percent rule (the charter requires that the fair market value of the target is at least equal to 80 perecnt of net assets of the SPAC). Also, there may be sense of urgency by the management team of the SPAC to close the deal since its charter typically requires a transaction to be completed within the
18-24
month timeframe.
 
◾
 
Voting agreements
- Are the sponsors entering into enter into any voting agreements/tender offers with shareholders who are likely to vote against the proposed merger or exercise conversion rights?
 
◾
 
Governance
- What is the impact of having the SPAC CEO or founder on key committees following the proposed merger?
Special Purpose Acquisition Corporations (SPACs) - Proposals for Extensions
 
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General Recommendation:
Vote
case-by-case
on SPAC extension proposals taking into account the length of the requested extension, the status of any pending transaction(s) or progression of the acquisition process, any added incentive for
non-redeeming
shareholders, and any prior extension requests.
 
 
◾
 
Length of request
: Typically, extension requests range from two to six months, depending on the progression of the SPAC’s acquistion process.
 
◾
 
Pending transaction(s)
or
progression of the acquisition process:
Sometimes an intial business combination was already put to a shareholder vote, but, for varying reasons, the transaction could not be consummated by the termination date and the SPAC is requesting an extension. Other times, the SPAC has entered into a definitive transaction agreement, but needs additional time to consummate or hold the shareholder meeting.
 
◾
 
Added incentive for
non-redeeming
shareholders
: Sometimes the SPAC sponsor (or other insiders) will contribute, typically as a loan to the company, additional funds that will be added to the redemption value of each public share as long as such shares are not redeemed in connection with the extension request. The purpose of the “equity kicker” is to incentivize shareholders to hold their shares through the end of the requested extension or until the time the transaction is put to a shareholder vote, rather than electing redeemption at the extension proposal meeting.
 
◾
 
Prior extension requests
: Some SPACs request additional time beyond the extension period sought in prior extension requests.
Spin-offs
 
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General Recommendation:
Vote
case-by-case
on spin-offs, considering:
 
 
◾
 
Tax and regulatory advantages;
 
◾
 
Planned use of the sale proceeds;
 
◾
 
Valuation of spinoff;
 
◾
 
Fairness opinion;
 
◾
 
Benefits to the parent company;
 
◾
 
Conflicts of interest;
 
◾
 
Managerial incentives;
 
◾
 
Corporate governance changes;
 
◾
 
Changes in the capital structure.
Value Maximization Shareholder Proposals
 
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General Recommendation:
Vote
case-by-case
on shareholder proposals seeking to maximize shareholder value by:
 
 
◾
 
Hiring a financial advisor to explore strategic alternatives;
 
◾
 
Selling the company; or
 
◾
 
Liquidating the company and distributing the proceeds to shareholders.
These proposals should be evaluated based on the following factors:
 
 
◾
 
Prolonged poor performance with no turnaround in sight;
 
◾
 
Signs of entrenched board and management (such as the adoption of takeover defenses);
 
   
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◾
 
Strategic plan in place for improving value;
 
◾
 
Likelihood of receiving reasonable value in a sale or dissolution; and
 
◾
 
The company actively exploring its strategic options, including retaining a financial advisor.
 
   
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5.   Compensation
Executive Pay Evaluation
Underlying all evaluations are five global principles that most investors expect corporations to adhere to in designing and administering executive and director compensation programs:
 
 
1.
Maintain appropriate
pay-for-performance
alignment, with emphasis on long-term shareholder value: This principle encompasses overall executive pay practices, which must be designed to attract, retain, and appropriately motivate the key employees who drive shareholder value creation over the long term. It will take into consideration, among other factors, the link between pay and performance; the mix between fixed and variable pay; performance goals; and equity-based plan costs;
 
2.
Avoid arrangements that risk “pay for failure”: This principle addresses the appropriateness of long or indefinite contracts, excessive severance packages, and guaranteed compensation;
 
3.
Maintain an independent and effective compensation committee: This principle promotes oversight of executive pay programs by directors with appropriate skills, knowledge, experience, and a sound process for compensation decision-making (
e.g.
, including access to independent expertise and advice when needed);
 
4.
Provide shareholders with clear, comprehensive compensation disclosures: This principle underscores the importance of informative and timely disclosures that enable shareholders to evaluate executive pay practices fully and fairly;
 
5.
Avoid inappropriate pay to
non-executive
directors: This principle recognizes the interests of shareholders in ensuring that compensation to outside directors is reasonable and does not compromise their independence and ability to make appropriate judgments in overseeing managers’ pay and performance. At the market level, it may incorporate a variety of generally accepted best practices.
Advisory Votes on Executive Compensation—Management Proposals
(Say-on-Pay)
 
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General Recommendation:
Vote
case-by-case
on ballot items related to executive pay and practices, as well as certain aspects of outside director compensation.
Vote against Advisory Votes on Executive Compensation
(Say-on-Pay
or “SOP”) if:
 
 
◾
 
There is an unmitigated misalignment between CEO pay and company performance (pay for performance);
 
◾
 
The company maintains significant problematic pay practices;
 
◾
 
The board exhibits a significant level of
poor communication and responsiveness
to shareholders.
Vote against or withhold from the members of the Compensation Committee and potentially the full board if:
 
 
◾
 
There is no SOP on the ballot, and an against vote on an SOP would otherwise be warranted due to
pay-for-performance
misalignment, problematic pay practices, or the lack of adequate responsiveness on compensation issues raised previously, or a combination thereof;
 
◾
 
The board fails to respond adequately to a previous SOP proposal that received less than 70 percent support of votes cast;
 
◾
 
The company has recently practiced or approved problematic pay practices, such as option repricing or option backdating; or
 
◾
 
The situation is egregious.
 
   
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Primary Evaluation Factors for Executive Pay
Pay-for-Performance
Evaluation
ISS annually conducts a
pay-for-performance
analysis to identify strong or satisfactory alignment between pay and performance over a sustained period. With respect to companies in the S&P1500, Russell 3000, or Russell 3000E Indices
13
, this analysis considers the following:
 
 
1.
  Peer Group
14
Alignment:
 
 
◾
 
The degree of alignment between the company’s annualized TSR rank and the CEO’s annualized total pay rank within a peer group, each measured over a three-year period.
 
◾
 
The rankings of CEO total pay and company financial performance within a peer group, each measured over a three-year period.
 
◾
 
The multiple of the CEO’s total pay relative to the peer group median in the most recent fiscal year.
 
 
2.
Absolute Alignment
15
– the absolute alignment between the trend in CEO pay and company TSR over the prior five fiscal years – i.e., the difference between the trend in annual pay changes and the trend in annualized TSR during the period.
If the above analysis demonstrates significant unsatisfactory long-term
pay-for-performance
alignment or, in the case of companies outside the Russell indices, a misalignment between pay and performance is otherwise suggested, our analysis may include any of the following qualitative factors, as relevant to an evaluation of how various pay elements may work to encourage or to undermine long-term value creation and alignment with shareholder interests:
 
 
◾
 
The ratio of performance- to time-based incentive awards;
 
◾
 
The overall ratio of performance-based compensation to fixed or discretionary pay;
 
◾
 
The rigor of performance goals;
 
◾
 
The complexity and risks around pay program design;
 
◾
 
The transparency and clarity of disclosure;
 
◾
 
The company’s peer group benchmarking practices;
 
◾
 
Financial/operational results, both absolute and relative to peers;
 
◾
 
Special circumstances related to, for example, a new CEO in the prior FY or anomalous equity grant practices (e.g.,
bi-annual
awards);
 
◾
 
Realizable pay
16
compared to grant pay; and
 
◾
 
Any other factors deemed relevant.
Problematic Pay Practices
The focus is on executive compensation practices that contravene the global pay principles, including:
 
 
◾
 
Problematic practices related to
non-performance-based
compensation elements;
 
 
13
The
Russell 3000E
Index includes approximately 4,000 of the largest U.S. equity securities.
14
The revised peer group is generally comprised of
14-24
companies that are selected using market cap, revenue (or assets for certain financial firms), GICS industry group, and company’s selected peers’ GICS industry group, with size constraints, via a process designed to select peers that are comparable to the subject company in terms of revenue/assets and industry, and also within a
market-cap
bucket that is reflective of the company’s. For Oil, Gas & Consumable Fuels companies, market cap is the only size determinant.
15
Only Russell 3000 Index companies are subject to the Absolute Alignment analysis.
16
ISS research reports include realizable pay for S&P1500 companies.
 
   
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◾
 
Incentives that may motivate excessive risk-taking or present a windfall risk; and
 
◾
 
Pay decisions that circumvent
pay-for-performance,
such as options backdating or waiving performance requirements.
Problematic Pay Practices related to
Non-Performance-Based
Compensation Elements
Pay elements that are not directly based on performance are generally evaluated
case-by-case
considering the context of a company’s overall pay program and demonstrated
pay-for-performance
philosophy. Please refer to ISS’
U.S. Compensation Policies FAQ
document for detail on specific pay practices that have been identified as potentially problematic and may lead to negative recommendations if they are deemed to be inappropriate or unjustified relative to executive pay best practices. The list below highlights the problematic practices that carry significant weight in this overall consideration and may result in adverse vote recommendations:
 
 
◾
 
Repricing or replacing of underwater stock options/SARs without prior shareholder approval (including cash buyouts and voluntary surrender of underwater options);
 
◾
 
Extraordinary perquisites or tax
gross-ups;
 
◾
 
New or materially amended agreements that provide for:
 
◾
 
Excessive termination or CIC severance payments (generally exceeding 3 times base salary and average/target/most recent bonus);
 
◾
 
CIC severance payments without involuntary job loss or substantial diminution of duties (“single” or “modified single” triggers) or in connection with a problematic Good Reason definition;
 
◾
 
CIC excise tax
gross-up
entitlements (including “modified”
gross-ups);
 
◾
 
Multi-year guaranteed awards that are not at risk due to rigorous performance conditions;
 
◾
 
Liberal CIC definition combined with any single-trigger CIC benefits;
 
◾
 
Insufficient executive compensation disclosure by externally-managed issuers (EMIs) such that a reasonable assessment of pay programs and practices applicable to the EMI’s executives is not possible;
 
◾
 
Any other provision or practice deemed to be egregious and present a significant risk to investors.
Options Backdating
The following factors should be examined
case-by-case
to allow for distinctions to be made between “sloppy” plan administration versus deliberate action or fraud:
 
 
◾
 
Reason and motive for the options backdating issue, such as inadvertent vs. deliberate grant date changes;
 
◾
 
Duration of options backdating;
 
◾
 
Size of restatement due to options backdating;
 
◾
 
Corrective actions taken by the board or compensation committee, such as canceling or
re-pricing
backdated options, the recouping of option gains on backdated grants; and
 
◾
 
Adoption of a grant policy that prohibits backdating and creates a fixed grant schedule or window period for equity grants in the future.
Compensation Committee Communications and Responsiveness
Consider the following factors
case-by-case
when evaluating ballot items related to executive pay on the board’s responsiveness to investor input and engagement on compensation issues:
 
 
◾
 
Failure to respond to majority-supported shareholder proposals on executive pay topics; or
 
◾
 
Failure to adequately respond to the company’s previous
say-on-pay
proposal that received the support of less than 70 percent of votes cast, taking into account:
 
◾
 
Disclosure of engagement efforts with major institutional investors, including the frequency and timing of engagements and the company participants (including whether independent directors participated);
 
   
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◾
 
Disclosure of the specific concerns voiced by dissenting shareholders that led to the
say-on-pay
opposition;
 
◾
 
Disclosure of specific and meaningful actions taken to address shareholders’ concerns;
 
◾
 
Other recent compensation actions taken by the company;
 
◾
 
Whether the issues raised are recurring or isolated;
 
◾
 
The company’s ownership structure; and
 
◾
 
Whether the support level was less than 50 percent, which would warrant the highest degree of responsiveness.
Frequency of Advisory Vote on Executive Compensation (“Say When on Pay”)
 
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General Recommendation:
Vote for annual advisory votes on compensation, which provide the most consistent and clear communication channel for shareholder concerns about companies’ executive pay programs.
Voting on Golden Parachutes in an Acquisition, Merger, Consolidation, or Proposed Sale
 
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General Recommendation:
Vote
case-by-case
on say on Golden Parachute proposals, including consideration of existing
change-in-control
arrangements maintained with named executive officers but also considering new or extended arrangements.
Features that may result in an “against” recommendation include one or more of the following, depending on the number, magnitude, and/or timing of issue(s):
 
 
◾
 
Single- or modified-single-trigger cash severance;
 
◾
 
Single-trigger acceleration of unvested equity awards;
 
◾
 
Full acceleration of equity awards granted shortly before the change in control;
 
◾
 
Acceleration of performance awards above the target level of performance without compelling rationale;
 
◾
 
Excessive cash severance (generally >3x base salary and bonus);
 
◾
 
Excise tax
gross-ups
triggered and payable;
 
◾
 
Excessive golden parachute payments (on an absolute basis or as a percentage of transaction equity value); or
 
◾
 
Recent amendments that incorporate any problematic features (such as those above) or recent actions (such as extraordinary equity grants) that may make packages so attractive as to influence merger agreements that may not be in the best interests of shareholders; or
 
◾
 
The company’s assertion that a proposed transaction is conditioned on shareholder approval of the golden parachute advisory vote.
Recent amendment(s) that incorporate problematic features will tend to carry more weight on the overall analysis. However, the presence of multiple legacy problematic features will also be closely scrutinized.
In cases where the golden parachute vote is incorporated into a company’s advisory vote on compensation (management
say-on-pay),
ISS will evaluate the
say-on-pay
proposal in accordance with these guidelines, which may give higher weight to that component of the overall evaluation.
Equity-Based and Other Incentive Plans
Please refer to ISS’
U.S. Equity Compensation Plans FAQ
document for additional details on the Equity Plan Scorecard policy.
 
   
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General Recommendation:
Vote
case-by-case
on certain equity-based compensation plans
17
depending on a combination of certain plan features and equity grant practices, where positive factors may counterbalance negative factors, and vice versa, as evaluated using an “Equity Plan Scorecard” (EPSC) approach with three pillars:
 
 
◾
 
Plan Cost:
The total estimated cost of the company’s equity plans relative to industry/market cap peers, measured by the company’s estimated Shareholder Value Transfer (SVT) in relation to peers and considering both:
 
◾
 
SVT based on new shares requested plus shares remaining for future grants, plus outstanding unvested/unexercised grants; and
 
◾
 
SVT based only on new shares requested plus shares remaining for future grants.
 
 
◾
 
Plan Features:
 
◾
 
Quality of disclosure around vesting upon a change in control (CIC);
 
◾
 
Discretionary vesting authority;
 
◾
 
Liberal share recycling on various award types;
 
◾
 
Lack of minimum vesting period for grants made under the plan;
 
◾
 
Dividends payable prior to award vesting.
 
 
◾
 
Grant Practices:
 
◾
 
The company’s three-year burn rate relative to its industry/market cap peers;
 
◾
 
Vesting requirements in CEO’s recent equity grants
(3-year
look-back);
 
◾
 
The estimated duration of the plan (based on the sum of shares remaining available and the new shares requested, divided by the average annual shares granted in the prior three years);
 
◾
 
The proportion of the CEO’s most recent equity grants/awards subject to performance conditions;
 
◾
 
Whether the company maintains a sufficient claw-back policy;
 
◾
 
Whether the company maintains sufficient post-exercise/vesting share-holding requirements.
Generally vote against the plan proposal if the combination of above factors indicates that the plan is not, overall, in shareholders’ interests, or if any of the following egregious factors (“overriding factors”) apply:
 
 
◾
 
Awards may vest in connection with a liberal
change-of-control
definition;
 
◾
 
The plan would permit repricing or cash buyout of underwater options without shareholder approval (either by expressly permitting it – for NYSE and Nasdaq listed companies – or by not prohibiting it when the company has a history of repricing – for
non-listed
companies);
 
◾
 
The plan is a vehicle for problematic pay practices or a significant
pay-for-performance
disconnect under certain circumstances;
 
◾
 
The plan is excessively dilutive to shareholders’ holdings;
 
◾
 
The plan contains an evergreen (automatic share replenishment) feature; or
 
◾
 
Any other plan features are determined to have a significant negative impact on shareholder interests.
Further Information on certain EPSC Factors:
Shareholder Value Transfer (SVT)
The cost of the equity plans is expressed as Shareholder Value Transfer (SVT), which is measured using a binomial option pricing model that assesses the amount of shareholders’ equity flowing out of the company to employees and directors. SVT is expressed as both a dollar amount and as a percentage of market value, and includes the new
 
 
17
Proposals evaluated under the EPSC policy generally include those to approve or amend (1) stock option plans for employees and/or employees and directors, (2) restricted stock plans for employees and/or employees and directors, and (3) omnibus stock incentive plans for employees and/or employees and directors; amended plans will be further evaluated
case-by-case.
 
   
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shares proposed, shares available under existing plans, and shares granted but unexercised (using two measures, in the case of plans subject to the Equity Plan Scorecard evaluation, as noted above). All award types are valued. For omnibus plans, unless limitations are placed on the most expensive types of awards (for example, full-value awards), the assumption is made that all awards to be granted will be the most expensive types.
For proposals that are not subject to the Equity Plan Scorecard evaluation, Shareholder Value Transfer is reasonable if it falls below a company-specific benchmark. The benchmark is determined as follows: The top quartile performers in each industry group (using the Global Industry Classification Standard: GICS) are identified. Benchmark SVT levels for each industry are established based on these top performers’ historic SVT. Regression analyses are run on each industry group to identify the variables most strongly correlated to SVT. The benchmark industry SVT level is then adjusted upwards or downwards for the specific company by plugging the company-specific performance measures, size and cash compensation into the industry cap equations to arrive at the company’s benchmark.
18
Three-Year Burn Rate
Burn-rate benchmarks (utilized in Equity Plan Scorecard evaluations) are calculated as the greater of: (1) the mean (µ) plus one standard deviation (ó) of the company’s GICS group segmented by S&P 500, Russell 3000 index (less the S&P500), and
non-Russell
3000 index; and (2) two percent of weighted common shares outstanding. In addition, year-over-year burn-rate benchmark changes will be limited to a maximum of two (2) percentage points plus or minus the prior year’s burn-rate benchmark. See the
U.S. Equity Compensation Plans FAQ
for the benchmarks.
Egregious Factors
Liberal Change in Control Definition
Generally vote against equity plans if the plan has a liberal definition of change in control and the equity awards could vest upon such liberal definition of change in control, even though an actual change in control may not occur. Examples of such a definition include, but are not limited to, announcement or commencement of a tender offer, provisions for acceleration upon a “potential” takeover, shareholder approval of a merger or other transactions, or similar language.
Repricing Provisions
Vote against plans that expressly permit the repricing or exchange of underwater stock options/stock appreciate rights (SARs) without prior shareholder approval. “Repricing” typically includes the ability to do any of the following:
 
 
◾
 
Amend the terms of outstanding options or SARs to reduce the exercise price of such outstanding options or SARs;
 
◾
 
Cancel outstanding options or SARs in exchange for options or SARs with an exercise price that is less than the exercise price of the original options or SARs;
 
◾
 
Cancel underwater options in exchange for stock awards; or
 
◾
 
Provide cash buyouts of underwater options.
 
 
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For plans evaluated under the Equity Plan Scorecard policy, the company’s SVT benchmark is considered along with other factors.
 
   
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While the above cover most types of repricing, ISS may view other provisions as akin to repricing depending on the facts and circumstances.
Also, vote against or withhold from members of the Compensation Committee who approved repricing (as defined above or otherwise determined by ISS), without prior shareholder approval, even if such repricings are allowed in their equity plan.
Vote against plans that do not expressly prohibit repricing or cash buyout of underwater options without shareholder approval if the company has a history of repricing/buyouts without shareholder approval, and the applicable listing standards would not preclude them from doing so.
Problematic Pay Practices or Significant
Pay-for-Performance
Disconnect
If the equity plan on the ballot is a vehicle for
problematic pay practices
, vote against the plan.
ISS may recommend a vote against the equity plan if the plan is determined to be a vehicle for
pay-for-performance
misalignment. Considerations in voting against the equity plan may include, but are not limited to:
 
 
◾
 
Severity of the
pay-for-performance
misalignment;
 
◾
 
Whether problematic equity grant practices are driving the misalignment; and/or
 
◾
 
Whether equity plan awards have been heavily concentrated to the CEO and/or the other NEOs.
Amending Cash and Equity Plans (including Approval for Tax Deductibility (162(m))
 
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General Recommendation:
Vote
case-by-case
on amendments to cash and equity incentive plans.
Generally vote for proposals to amend executive cash, stock, or cash and stock incentive plans if the proposal:
 
 
◾
 
Addresses administrative features only; or
 
◾
 
Seeks approval for Section 162(m) purposes
only
, and the plan administering committee consists entirely of independent directors, per
ISS’ Classification of Directors
. Note that if the company is presenting the plan to shareholders for the first time for any reason (including after the company’s initial public offering), or if the proposal is bundled with other material plan amendments, then the recommendation will be
case-by-case
(see below).
Vote against proposals to amend executive cash, stock, or cash and stock incentive plans if the proposal:
 
 
◾
 
Seeks approval for Section 162(m) purposes only, and the plan administering committee does not consist entirely of independent directors, per
ISS’ Classification of Directors.
Vote
case-by-case
on all other proposals to amend cash incentive plans. This includes plans presented to shareholders for the first time after the company’s IPO and/or proposals that bundle material amendment(s) other than those for Section 162(m) purposes.
Vote
case-by-case
on all other proposals to amend equity incentive plans, considering the following:
 
 
◾
 
If the proposal requests additional shares and/or the amendments include a term extension or addition of full value awards as an award type, the recommendation will be based on the Equity Plan Scorecard evaluation as well as an analysis of the overall impact of the amendments.
 
◾
 
If the plan is being presented to shareholders for the first time (including after the company’s IPO), whether or not additional shares are being requested, the recommendation will be based on the Equity Plan Scorecard evaluation as well as an analysis of the overall impact of any amendments.
 
   
I S S G O V E R N A N C E . C O M
  
 
47 of 72
 
 
B-47
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
If there is no request for additional shares and the amendments do not include a term extension or addition of full value awards as an award type, then the recommendation will be based entirely on an analysis of the overall impact of the amendments, and the EPSC evaluation will be shown only for informational purposes.
In the first two
case-by-case
evaluation scenarios, the EPSC evaluation/score is the more heavily weighted consideration.
Specific Treatment of Certain Award Types in Equity Plan Evaluations
Dividend Equivalent Rights
Options that have Dividend Equivalent Rights (DERs) associated with them will have a higher calculated award value than those without DERs under the binomial model, based on the value of these dividend streams. The higher value will be applied to new shares, shares available under existing plans, and shares awarded but not exercised per the plan specifications. DERS transfer more shareholder equity to employees and
non-employee
directors and this cost should be captured.
Operating Partnership (OP) Units in Equity Plan Analysis of Real Estate Investment Trusts (REITs)
For Real Estate Investment Trusts (REITS), include the common shares issuable upon conversion of outstanding Operating Partnership (OP) units in the share count for the purposes of determining: (1) market capitalization in the Shareholder Value Transfer (SVT) analysis and (2) shares outstanding in the burn rate analysis.
Other Compensation Plans
401(k) Employee Benefit Plans
 
G68G08.JPG
General Recommendation:
Vote for proposals to implement a 401(k) savings plan for employees.
Employee Stock Ownership Plans (ESOPs)
 
G68G08.JPG
General Recommendation:
Vote for proposals to implement an ESOP or increase authorized shares for existing ESOPs, unless the number of shares allocated to the ESOP is excessive (more than five percent of outstanding shares).
Employee Stock Purchase Plans—Qualified Plans
 
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General Recommendation:
Vote
case-by-case
on qualified employee stock purchase plans. Vote for employee stock purchase plans where all of the following apply:
 
 
◾
 
Purchase price is at least 85 percent of fair market value;
 
◾
 
Offering period is 27 months or less; and
 
◾
 
The number of shares allocated to the plan is 10 percent or less of the outstanding shares.
Vote against qualified employee stock purchase plans where when the plan features do not meet all of the above criteria.
Employee Stock Purchase
Plans—Non-Qualified
Plans
 
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General Recommendation:
Vote
case-by-case
on nonqualified employee stock purchase plans. Vote for nonqualified employee stock purchase plans with all the following features:
 
 
◾
 
Broad-based participation;
 
◾
 
Limits on employee contribution, which may be a fixed dollar amount or expressed as a percent of base salary;
 
◾
 
Company matching contribution up to 25 percent of employee’s contribution, which is effectively a discount of 20 percent from market value; and
 
   
I S S G O V E R N A N C E . C O M
  
 
48 of 72
 
 
B-48
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
No discount on the stock price on the date of purchase when there is a company matching contribution.
Vote against nonqualified employee stock purchase plans when the plan features do not meet all of the above criteria. If the matching contribution or effective discount exceeds the above, ISS may evaluate the SVT cost of the plan as part of the assessment.
Option Exchange Programs/Repricing Options
 
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General Recommendation:
Vote
case-by-case
on management proposals seeking approval to exchange/reprice options taking into consideration:
 
 
◾
 
Historic trading
patterns--the
stock price should not be so volatile that the options are likely to be back
“in-the-money”
over the near term;
 
◾
 
Rationale for the
re-pricing--was
the stock price decline beyond management’s control?;
 
◾
 
Is this a
value-for-value
exchange?;
 
◾
 
Are surrendered stock options added back to the plan reserve?;
 
◾
 
Timing--repricing
should occur at least one year out from any precipitous drop in company’s stock price;
 
◾
 
Option
vesting--does
the new option vest immediately or is there a
black-out
period?;
 
◾
 
Term of the
option--the
term should remain the same as that of the replaced option;
 
◾
 
Exercise
price--should
be set at fair market or a premium to market;
 
◾
 
Participants--executive
officers and directors must be excluded.
If the surrendered options are added back to the equity plans for
re-issuance,
then also take into consideration the company’s total cost of equity plans and its three-year average burn rate.
In addition to the above considerations, evaluate the intent, rationale, and timing of the repricing proposal. The proposal should clearly articulate why the board is choosing to conduct an exchange program at this point in time. Repricing underwater options after a recent precipitous drop in the company’s stock price demonstrates poor timing and warrants additional scrutiny. Also, consider the terms of the surrendered options, such as the grant date, exercise price and vesting schedule. Grant dates of surrendered options should be far enough back (two to three years) so as not to suggest that repricings are being done to take advantage of short-term downward price movements. Similarly, the exercise price of surrendered options should be above the
52-week
high for the stock price.
Vote for shareholder proposals to put option repricings to a shareholder vote.
Stock Plans in Lieu of Cash
 
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General Recommendation:
Vote
case-by-case
on plans that provide participants with the option of taking all or a portion of their cash compensation in the form of stock.
Vote for
non-employee
director-only equity plans that provide a
dollar-for-dollar
cash-for-stock
exchange.
Vote
case-by-case
on plans which do not provide a
dollar-for-dollar
cash for stock exchange. In cases where the exchange is not
dollar-for-dollar,
the request for new or additional shares for such equity program will be considered using the binomial option pricing model. In an effort to capture the total cost of total compensation, ISS will not make any adjustments to carve out the
in-lieu-of
cash compensation.
Transfer Stock Option (TSO) Programs
 
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General Recommendation:
One-time
Transfers: Vote against or withhold from compensation committee members if they fail to submit
one-time
transfers to shareholders for approval.
Vote
case-by-case
on
one-time
transfers. Vote for if:
 
   
I S S G O V E R N A N C E . C O M
  
 
49 of 72
 
 
B-49
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Executive officers and
non-employee
directors are excluded from participating;
 
◾
 
Stock options are purchased by third-party financial institutions at a discount to their fair value using option pricing models such as Black-Scholes or a Binomial Option Valuation or other appropriate financial models; and
 
◾
 
There is a
two-year
minimum holding period for sale proceeds (cash or stock) for all participants.
Additionally, management should provide a clear explanation of why options are being transferred to a third-party institution and whether the events leading up to a decline in stock price were beyond management’s control. A review of the company’s historic stock price volatility should indicate if the options are likely to be back
“in-the-money”
over the near term.
Ongoing TSO program: Vote against equity plan proposals if the details of ongoing TSO programs are not provided to shareholders. Since TSOs will be one of the award types under a stock plan, the ongoing TSO program, structure and mechanics must be disclosed to shareholders. The specific criteria to be considered in evaluating these proposals include, but not limited, to the following:
 
 
◾
 
Eligibility;
 
◾
 
Vesting;
 
◾
 
Bid-price;
 
◾
 
Term of options;
 
◾
 
Cost of the program and impact of the TSOs on company’s total option expense; and
 
◾
 
Option repricing policy.
Amendments to existing plans that allow for introduction of transferability of stock options should make clear that only options granted post-amendment shall be transferable.
Director Compensation
Shareholder Ratification of Director Pay Programs
 
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General Recommendation:
Vote
case-by-case
on management proposals seeking ratification of
non-employee
director compensation, based on the following factors:
 
 
◾
 
If the equity plan under which
non-employee
director grants are made is on the ballot, whether or not it warrants support; and
 
◾
 
An assessment of the following qualitative factors:
 
◾
 
The relative magnitude of director compensation as compared to companies of a similar profile;
 
◾
 
The presence of problematic pay practices relating to director compensation;
 
◾
 
Director stock ownership guidelines and holding requirements;
 
◾
 
Equity award vesting schedules;
 
◾
 
The mix of cash and equity-based compensation;
 
◾
 
Meaningful limits on director compensation;
 
◾
 
The availability of retirement benefits or perquisites; and
 
◾
 
The quality of disclosure surrounding director compensation.
Equity Plans for
Non-Employee
Directors
 
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General Recommendation:
Vote
case-by-case
on compensation plans for
non-employee
directors, based on:
 
 
◾
 
The total estimated cost of the company’s equity plans relative to industry/market cap peers, measured by the company’s estimated Shareholder Value Transfer (SVT) based on new shares requested plus shares remaining for future grants, plus outstanding unvested/unexercised grants;
 
◾
 
The company’s three-year burn rate relative to its industry/market cap peers (in certain circumstances); and
 
   
I S S G O V E R N A N C E . C O M
  
 
50 of 72
 
 
B-50
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
The presence of any egregious plan features (such as an option repricing provision or liberal CIC vesting risk).
On occasion,
non-employee
director stock plans will exceed the plan cost or burn-rate benchmarks when combined with employee or executive stock plans. In such cases, vote
case-by-case
on the plan taking into consideration the following qualitative factors:
 
 
◾
 
The relative magnitude of director compensation as compared to companies of a similar profile;
 
◾
 
The presence of problematic pay practices relating to director compensation;
 
◾
 
Director stock ownership guidelines and holding requirements;
 
◾
 
Equity award vesting schedules;
 
◾
 
The mix of cash and equity-based compensation;
 
◾
 
Meaningful limits on director compensation;
 
◾
 
The availability of retirement benefits or perquisites; and
 
◾
 
The quality of disclosure surrounding director compensation.
Non-Employee
Director Retirement Plans
 
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General Recommendation:
Vote against retirement plans for
non-employee
directors. Vote for shareholder proposals to eliminate retirement plans for
non-employee
directors.
Shareholder Proposals on Compensation
Bonus Banking/Bonus Banking “Plus”
 
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General Recommendation:
Vote
case-by-case
on proposals seeking deferral of a portion of annual bonus pay, with ultimate payout linked to sustained results for the performance metrics on which the bonus was earned (whether for the named executive officers or a wider group of employees), taking into account the following factors:
 
 
◾
 
The company’s past practices regarding equity and cash compensation;
 
◾
 
Whether the company has a holding period or stock ownership requirements in place, such as a meaningful retention ratio (at least 50 percent for full tenure); and
 
◾
 
Whether the company has a rigorous claw-back policy in place.
Compensation Consultants—Disclosure of Board or Company’s Utilization
 
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General Recommendation:
Generally vote for shareholder proposals seeking disclosure regarding the company, board, or compensation committee’s use of compensation consultants, such as company name, business relationship(s), and fees paid.
Disclosure/Setting Levels or Types of Compensation for Executives and Directors
 
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General Recommendation:
Generally vote for shareholder proposals seeking additional disclosure of executive and director pay information, provided the information requested is relevant to shareholders’ needs, would not put the company at a competitive disadvantage relative to its industry, and is not unduly burdensome to the company.
Generally vote against shareholder proposals seeking to set absolute levels on compensation or otherwise dictate the amount or form of compensation (such as types of compensation elements or specific metrics) to be used for executive or directors.
Generally vote against shareholder proposals that mandate a minimum amount of stock that directors must own in order to qualify as a director or to remain on the board.
 
   
I S S G O V E R N A N C E . C O M
  
 
51 of 72
 
 
B-51
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Vote
case-by-case
on all other shareholder proposals regarding executive and director pay, taking into account relevant factors, including but not limited to: company performance, pay level and design versus peers, history of compensation concerns or
pay-for-performance
disconnect, and/or the scope and prescriptive nature of the proposal.
Golden Coffins/Executive Death Benefits
 
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General Recommendation:
Generally vote for proposals calling for companies to adopt a policy of obtaining shareholder approval for any future agreements and corporate policies that could oblige the company to make payments or awards following the death of a senior executive in the form of unearned salary or bonuses, accelerated vesting or the continuation in force of unvested equity grants, perquisites and other payments or awards made in lieu of compensation. This would not apply to any benefit programs or equity plan proposals for which the broad-based employee population is eligible.
Hold Equity Past Retirement or for a Significant Period of Time
 
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General Recommendation:
Vote
case-by-case
on shareholder proposals asking companies to adopt policies requiring senior executive officers to retain a portion of net shares acquired through compensation plans. The following factors will be taken into account:
 
 
◾
 
The percentage/ratio of net shares required to be retained;
 
◾
 
The time period required to retain the shares;
 
◾
 
Whether the company has equity retention, holding period, and/or stock ownership requirements in place and the robustness of such requirements;
 
◾
 
Whether the company has any other policies aimed at mitigating risk taking by executives;
 
◾
 
Executives’ actual stock ownership and the degree to which it meets or exceeds the proponent’s suggested holding period/retention ratio or the company’s existing requirements; and
 
◾
 
Problematic pay practices, current and past, which may demonstrate a short-term versus long-term focus.
Pay Disparity
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals calling for an analysis of the pay disparity between corporate executives and other
non-executive
employees. The following factors will be considered:
 
 
◾
 
The company’s current level of disclosure of its executive compensation setting process, including how the company considers pay disparity;
 
◾
 
If any problematic pay practices or
pay-for-performance
concerns have been identified at the company; and
 
◾
 
The level of shareholder support for the company’s pay programs.
Generally vote against proposals calling for the company to use the pay disparity analysis or pay ratio in a specific way to set or limit executive pay.
Pay for Performance/Performance-Based Awards
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on shareholder proposals requesting that a significant amount of future long-term incentive compensation awarded to senior executives shall be performance-based and requesting that the board adopt and disclose challenging performance metrics to shareholders, based on the following analytical steps:
 
 
◾
 
First, vote for shareholder proposals advocating the use of performance-based equity awards, such as performance contingent options or restricted stock, indexed options or premium-priced options, unless the proposal is overly restrictive or if the company has demonstrated that it is using a “substantial” portion of performance-based awards for its top executives. Standard stock options and performance-accelerated awards do not meet the criteria to be considered as performance-based awards. Further, premium-priced options should have a meaningful premium to be considered performance-based awards.
 
   
I S S G O V E R N A N C E . C O M
  
 
52 of 72
 
 
B-52
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Second, assess the rigor of the company’s performance-based equity program. If the bar set for the performance-based program is too low based on the company’s historical or peer group comparison, generally vote for the proposal. Furthermore, if target performance results in an above target payout, vote for the shareholder proposal due to program’s poor design. If the company does not disclose the performance metric of the performance-based equity program, vote for the shareholder proposal regardless of the outcome of the first step to the test.
In general, vote for the shareholder proposal if the company does not meet both of the above two steps.
Pay for Superior Performance
 
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General Recommendation:
Vote
case-by-case
on shareholder proposals that request the board establish a
pay-for-superior
performance standard in the company’s executive compensation plan for senior executives. These proposals generally include the following principles:
 
 
◾
 
Set compensation targets for the plan’s annual and long-term incentive pay components at or below the peer group median;
 
◾
 
Deliver a majority of the plan’s target long-term compensation through performance-vested, not simply time-vested, equity awards;
 
◾
 
Provide the strategic rationale and relative weightings of the financial and
non-financial
performance metrics or criteria used in the annual and performance-vested long-term incentive components of the plan;
 
◾
 
Establish performance targets for each plan financial metric relative to the performance of the company’s peer companies;
 
◾
 
Limit payment under the annual and performance-vested long-term incentive components of the plan to when the company’s performance on its selected financial performance metrics exceeds peer group median performance.
Consider the following factors in evaluating this proposal:
 
 
◾
 
What aspects of the company’s annual and long-term equity incentive programs are performance driven?
 
◾
 
If the annual and long-term equity incentive programs are performance driven, are the performance criteria and hurdle rates disclosed to shareholders or are they benchmarked against a disclosed peer group?
 
◾
 
Can shareholders assess the correlation between pay and performance based on the current disclosure?
 
◾
 
What type of industry and stage of business cycle does the company belong to?
Pre-Arranged
Trading Plans
(10b5-1
Plans)
 
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General Recommendation:
Generally vote for shareholder proposals calling for certain principles regarding the use of prearranged trading plans
(10b5-1
plans) for executives. These principles include:
 
 
◾
 
Adoption, amendment, or termination of a
10b5-1
Plan must be disclosed within two business days in a
Form 8-K;
 
◾
 
Amendment or early termination of a
10b5-1
Plan is allowed only under extraordinary circumstances, as determined by the board;
 
◾
 
Ninety days must elapse between adoption or amendment of a
10b5-1
Plan and initial trading under the plan;
 
◾
 
Reports on Form 4 must identify transactions made pursuant to a
10b5-1
Plan;
 
◾
 
An executive may not trade in company stock outside the
10b5-1
Plan;
 
◾
 
Trades under a
10b5-1
Plan must be handled by a broker who does not handle other securities transactions for the executive.
Prohibit Outside CEOs from Serving on Compensation Committees
 
G68G08.JPG
General Recommendation:
Generally vote against proposals seeking a policy to prohibit any outside CEO from serving on a company’s compensation committee, unless the company has demonstrated problematic pay practices that raise concerns about the performance and composition of the committee.
 
   
I S S G O V E R N A N C E . C O M
  
 
53 of 72
 
 
B-53
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Recoupment of Incentive or Stock Compensation in Specified Circumstances
 
G68G08.JPG
General Recommendation:
:
Vote
case-by-case
on proposals to recoup incentive cash or stock compensation made to senior executives if it is later determined that the figures upon which incentive compensation is earned turn out to have been in error, or if the senior executive has breached company policy or has engaged in misconduct that may be significantly detrimental to the company’s financial position or reputation, or if the senior executive failed to manage or monitor risks that subsequently led to significant financial or reputational harm to the company. Many companies have adopted policies that permit recoupment in cases where an executive’s fraud, misconduct, or negligence significantly contributed to a restatement of financial results that led to the awarding of unearned incentive compensation. However, such policies may be narrow given that not all misconduct or negligence may result in significant financial restatements. Misconduct, negligence or lack of sufficient oversight by senior executives may lead to significant financial loss or reputational damage that may have long-lasting impact.
In considering whether to support such shareholder proposals, ISS will take into consideration the following factors:
 
 
◾
 
If the company has adopted a formal recoupment policy;
 
◾
 
The rigor of the recoupment policy focusing on how and under what circumstances the company may recoup incentive or stock compensation;
 
◾
 
Whether the company has chronic restatement history or material financial problems;
 
◾
 
Whether the company’s policy substantially addresses the concerns raised by the proponent;
 
◾
 
Disclosure of recoupment of incentive or stock compensation from senior executives or lack thereof; or
 
◾
 
Any other relevant factors.
Severance Agreements for Executives/Golden Parachutes
 
G68G08.JPG
General Recommendation:
Vote for shareholder proposals requiring that golden parachutes or executive severance agreements be submitted for shareholder ratification, unless the proposal requires shareholder approval
prior
to entering into employment contracts.
Vote
case-by-case
on proposals to ratify or cancel golden parachutes. An acceptable parachute should include, but is not limited to, the following:
 
 
◾
 
The triggering mechanism should be beyond the control of management;
 
◾
 
The amount should not exceed three times base amount (defined as the average annual taxable
W-2
compensation during the five years prior to the year in which the change of control occurs);
 
◾
 
Change-in-control
payments should be double-triggered, i.e., (1) after a change in control has taken place, and (2) termination of the executive as a result of the change in control. Change in control is defined as a change in the company ownership structure.
Share Buyback Impact on Incentive Program Metrics
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals requesting the company exclude the impact of share buybacks from the calculation of incentive program metrics, considering the following factors:
 
 
◾
 
The frequency and timing of the company’s share buybacks;
 
◾
 
The use of
per-share
metrics in incentive plans;
 
◾
 
The effect of recent buybacks on incentive metric results and payouts; and
 
◾
 
Whether there is any indication of metric result manipulation.
Supplemental Executive Retirement Plans (SERPs)
 
G68G08.JPG
General Recommendation:
Generally vote for shareholder proposals requesting to put extraordinary benefits contained in SERP agreements to a shareholder vote unless the company’s executive pension plans do not contain excessive benefits beyond what is offered under employee-wide plans.
 
   
I S S G O V E R N A N C E . C O M
  
 
54 of 72
 
 
B-54
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Generally vote for shareholder proposals requesting to limit the executive benefits provided under the company’s supplemental executive retirement plan (SERP) by limiting covered compensation to a senior executive’s annual salary or those pay elements covered for the general employee population.
Tax
Gross-Up
Proposals
 
G68G08.JPG
General Recommendation:
Generally vote for proposals calling for companies to adopt a policy of not poviding tax
gross-up
payments to executives, except in situations where
gross-ups
are provided pursuant to a plan, policy, or arrangement applicable to management employees of the company, such as a relocation or expatriate tax equalization policy.
Termination of Employment Prior to Severance Payment/Eliminating Accelerated Vesting of Unvested Equity
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on shareholder proposals seeking a policy requiring termination of employment prior to severance payment and/or eliminating accelerated vesting of unvested equity.
The following factors will be considered:
 
 
◾
 
The company’s current treatment of equity upon employment termination and/or in
change-in-control
situations (i.e., vesting is double triggered and/or pro rata, does it allow for the assumption of equity by acquiring company, the treatment of performance shares, etc.);
 
◾
 
Current employment agreements, including potential poor pay practices such as
gross-ups
embedded in those agreements.
Generally vote for proposals seeking a policy that prohibits automatic acceleration of the vesting of equity awards to senior executives upon a voluntary termination of employment or in the event of a change in control (except for pro rata vesting considering the time elapsed and attainment of any related performance goals between the award date and the change in control).
 
   
I S S G O V E R N A N C E . C O M
  
 
55 of 72
 
 
B-55
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
6.   Routine /Miscellaneous
Adjourn Meeting
 
G68G08.JPG
General Recommendation:
Generally vote against proposals to provide management with the authority to adjourn an annual or special meeting absent compelling reasons to support the proposal.
Vote for proposals that relate specifically to soliciting votes for a merger or transaction if supporting that merger or transaction. Vote against proposals if the wording is too vague or if the proposal includes “other business.”
Amend Quorum Requirements
 
G68G08.JPG
General Recommendation:
Vote against proposals to reduce quorum requirements for shareholder meetings below a majority of the shares outstanding unless there are compelling reasons to support the proposal.
Amend Minor Bylaws
 
G68G08.JPG
General Recommendation:
Vote for bylaw or charter changes that are of a housekeeping nature (updates or corrections).
Change Company Name
 
G68G08.JPG
General Recommendation:
Vote for proposals to change the corporate name unless there is compelling evidence that the change would adversely impact shareholder value.
Change Date, Time, or Location of Annual Meeting
 
G68G08.JPG
General Recommendation:
Vote for management proposals to change the date, time, or location of the annual meeting unless the proposed change is unreasonable.
Vote against shareholder proposals to change the date, time, or location of the annual meeting unless the current scheduling or location is unreasonable.
Other Business
 
G68G08.JPG
General Recommendation:
Vote against proposals to approve other business when it appears as a voting item.
 
   
I S S G O V E R N A N C E . C O M
  
 
56 of 72
 
 
B-56
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
7.   Social and Environmental Issues
Global Approach
Issues covered under the policy include a wide range of topics, including consumer and product safety, environment and energy, labor standards and human rights, workplace and board diversity, and corporate political issues. While a variety of factors goes into each analysis, the overall principle guiding all vote recommendations focuses on how the proposal may enhance or protect shareholder value in either the short or long term.
 
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General Recommendation:
Generally vote
case-by-case,
examining primarily whether implementation of the proposal is likely to enhance or protect shareholder value. The following factors will be considered:
 
 
◾
 
If the issues presented in the proposal are more appropriately or effectively dealt with through legislation or government regulation;
 
◾
 
If the company has already responded in an appropriate and sufficient manner to the issue(s) raised in the proposal;
 
◾
 
Whether the proposal’s request is unduly burdensome (scope or timeframe) or overly prescriptive;
 
◾
 
The company’s approach compared with any industry standard practices for addressing the issue(s) raised by the proposal;
 
◾
 
Whether there are significant controversies, fines, penalties, or litigation associated with the company’s environmental or social practices;
 
◾
 
If the proposal requests increased disclosure or greater transparency, whether reasonable and sufficient information is currently available to shareholders from the company or from other publicly available sources; and
 
◾
 
If the proposal requests increased disclosure or greater transparency, whether implementation would reveal proprietary or confidential information that could place the company at a competitive disadvantage.
Endorsement of Principles
 
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General Recommendation:
Generally vote against proposals seeking a company’s endorsement of principles that support a particular public policy position. Endorsing a set of principles may require a company to take a stand on an issue that is beyond its own control and may limit its flexibility with respect to future developments. Management and the board should be afforded the flexibility to make decisions on specific public policy positions based on their own assessment of the most beneficial strategies for the company.
Animal Welfare
Animal Welfare Policies
 
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General Recommendation:
Generally vote for proposals seeking a report on a company’s animal welfare standards, or animal welfare-related risks, unless:
 
 
◾
 
The company has already published a set of animal welfare standards and monitors compliance;
 
◾
 
The company’s standards are comparable to industry peers; and
 
◾
 
There are no recent significant fines, litigation, or controversies related to the company’s and/or its suppliers’ treatment of animals.
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Animal Testing
 
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General Recommendation:
Generally vote against proposals to phase out the use of animals in product testing, unless:
 
 
◾
 
The company is conducting animal testing programs that are unnecessary or not required by regulation;
 
◾
 
The company is conducting animal testing when suitable alternatives are commonly accepted and used by industry peers; or
 
◾
 
There are recent, significant fines or litigation related to the company’s treatment of animals.
Animal Slaughter
 
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General Recommendation:
Generally vote against proposals requesting the implementation of Controlled Atmosphere Killing (CAK) methods at company and/or supplier operations unless such methods are required by legislation or generally accepted as the industry standard.
Vote
case-by-case
on proposals requesting a report on the feasibility of implementing CAK methods at company and/or supplier operations considering the availability of existing research conducted by the company or industry groups on this topic and any fines or litigation related to current animal processing procedures at the company.
Consumer Issues
Genetically Modified Ingredients
 
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General Recommendation:
Generally vote against proposals requesting that a company voluntarily label genetically engineered (GE) ingredients in its products. The labeling of products with GE ingredients is best left to the appropriate regulatory authorities.
Vote
case-by-case
on proposals asking for a report on the feasibility of labeling products containing GE ingredients, taking into account:
 
 
◾
 
The potential impact of such labeling on the company’s business;
 
◾
 
The quality of the company’s disclosure on GE product labeling, related voluntary initiatives, and how this disclosure compares with industry peer disclosure; and
 
◾
 
Company’s current disclosure on the feasibility of GE product labeling.
Generally vote against proposals seeking a report on the social, health, and environmental effects of genetically modified organisms (GMOs). Studies of this sort are better undertaken by regulators and the scientific community.
Generally vote against proposals to eliminate GE ingredients from the company’s products, or proposals asking for reports outlining the steps necessary to eliminate GE ingredients from the company’s products. Such decisions are more appropriately made by management with consideration of current regulations.
Reports on Potentially Controversial Business/Financial Practices
 
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General Recommendation:
Vote
case-by-case
on requests for reports on a company’s potentially controversial business or financial practices or products, taking into account:
 
 
◾
 
Whether the company has adequately disclosed mechanisms in place to prevent abuses;
 
◾
 
Whether the company has adequately disclosed the financial risks of the products/practices in question;
 
◾
 
Whether the company has been subject to violations of related laws or serious controversies; and
 
◾
 
Peer companies’ policies/practices in this area.
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-58
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Pharmaceutical Pricing, Access to Medicines, and Prescription Drug Reimportation
 
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General Recommendation:
Generally vote against proposals requesting that companies implement specific price restraints on pharmaceutical products unless the company fails to adhere to legislative guidelines or industry norms in its product pricing practices.
Vote
case-by-case
on proposals requesting that a company report on its product pricing or access to medicine policies, considering:
 
 
◾
 
The potential for reputational, market, and regulatory risk exposure;
 
◾
 
Existing disclosure of relevant policies;
 
◾
 
Deviation from established industry norms;
 
◾
 
Relevant company initiatives to provide research and/or products to disadvantaged consumers;
 
◾
 
Whether the proposal focuses on specific products or geographic regions;
 
◾
 
The potential burden and scope of the requested report;
 
◾
 
Recent significant controversies, litigation, or fines at the company.
Generally vote for proposals requesting that a company report on the financial and legal impact of its prescription drug reimportation policies unless such information is already publicly disclosed.
Generally vote against proposals requesting that companies adopt specific policies to encourage or constrain prescription drug reimportation. Such matters are more appropriately the province of legislative activity and may place the company at a competitive disadvantage relative to its peers.
Product Safety and Toxic/Hazardous Materials
 
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General Recommendation:
Generally vote for proposals requesting that a company report on its policies, initiatives/procedures, and oversight mechanisms related to toxic/hazardous materials or product safety in its supply chain, unless:
 
 
◾
 
The company already discloses similar information through existing reports such as a supplier code of conduct and/or a sustainability report;
 
◾
 
The company has formally committed to the implementation of a toxic/hazardous materials and/or product safety and supply chain reporting and monitoring program based on industry norms or similar standards within a specified time frame; and
 
◾
 
The company has not been recently involved in relevant significant controversies, fines, or litigation.
Vote
case-by-case
on resolutions requesting that companies develop a feasibility assessment to
phase-out
of certain toxic/hazardous materials, or evaluate and disclose the potential financial and legal risks associated with utilizing certain materials, considering:
 
 
◾
 
The company’s current level of disclosure regarding its product safety policies, initiatives, and oversight mechanisms;
 
◾
 
Current regulations in the markets in which the company operates; and
 
◾
 
Recent significant controversies, litigation, or fines stemming from toxic/hazardous materials at the company.
Generally vote against resolutions requiring that a company reformulate its products.
Tobacco-Related Proposals
 
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General Recommendation:
Vote
case-by-case
on resolutions regarding the advertisement of tobacco products, considering:
 
 
◾
 
Recent related fines, controversies, or significant litigation;
 
◾
 
Whether the company complies with relevant laws and regulations on the marketing of tobacco;
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Whether the company’s advertising restrictions deviate from those of industry peers;
 
◾
 
Whether the company entered into the Master Settlement Agreement, which restricts marketing of tobacco to youth; and
 
◾
 
Whether restrictions on marketing to youth extend to foreign countries.
Vote
case-by-case
on proposals regarding second-hand smoke, considering;
 
 
◾
 
Whether the company complies with all laws and regulations;
 
◾
 
The degree that voluntary restrictions beyond those mandated by law might hurt the company’s competitiveness; and
 
◾
 
The risk of any health-related liabilities.
Generally vote against resolutions to cease production of tobacco-related products, to avoid selling products to tobacco companies, to
spin-off
tobacco-related businesses, or prohibit investment in tobacco equities. Such business decisions are better left to company management or portfolio managers.
Generally vote against proposals regarding tobacco product warnings. Such decisions are better left to public health authorities.
Climate Change
Climate Change/Greenhouse Gas (GHG) Emissions
 
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General Recommendation:
Generally vote for resolutions requesting that a company disclose information on the financial, physical, or regulatory risks it faces related to climate change on its operations and investments or on how the company identifies, measures, and manages such risks, considering:
 
 
◾
 
Whether the company already provides current, publicly-available information on the impact that climate change may have on the company as well as associated company policies and procedures to address related risks and/or opportunities;
 
◾
 
The company’s level of disclosure compared to industry peers; and
 
◾
 
Whether there are significant controversies, fines, penalties, or litigation associated with the company’s climate change-related performance.
Generally vote for proposals requesting a report on greenhouse gas (GHG) emissions from company operations and/or products and operations, unless:
 
 
◾
 
The company already discloses current, publicly-available information on the impacts that GHG emissions may have on the company as well as associated company policies and procedures to address related risks and/or opportunities;
 
◾
 
The company’s level of disclosure is comparable to that of industry peers; and
 
◾
 
There are no significant, controversies, fines, penalties, or litigation associated with the company’s GHG emissions.
Vote
case-by-case
on proposals that call for the adoption of GHG reduction goals from products and operations, taking into account:
 
 
◾
 
Whether the company provides disclosure of year-over-year GHG emissions performance data;
 
◾
 
Whether company disclosure lags behind industry peers;
 
◾
 
The company’s actual GHG emissions performance;
 
◾
 
The company’s current GHG emission policies, oversight mechanisms, and related initiatives; and
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-60
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Whether the company has been the subject of recent, significant violations, fines, litigation, or controversy related to GHG emissions.
Energy Efficiency
 
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General Recommendation:
Generally vote for proposals requesting that a company report on its energy efficiency policies, unless:
 
 
◾
 
The company complies with applicable energy efficiency regulations and laws, and discloses its participation in energy efficiency policies and programs, including disclosure of benchmark data, targets, and performance measures; or
 
◾
 
The proponent requests adoption of specific energy efficiency goals within specific timelines.
Renewable Energy
 
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General Recommendation:
Generally vote for requests for reports on the feasibility of developing renewable energy resources unless the report would be duplicative of existing disclosure or irrelevant to the company’s line of business.
Generally vote against proposals requesting that the company invest in renewable energy resources. Such decisions are best left to management’s evaluation of the feasibility and financial impact that such programs may have on the company.
Generally vote against proposals that call for the adoption of renewable energy goals, taking into account:
 
 
◾
 
The scope and structure of the proposal;
 
◾
 
The company’s current level of disclosure on renewable energy use and GHG emissions; and
 
◾
 
The company’s disclosure of policies, practices, and oversight implemented to manage GHG emissions and mitigate climate change risks.
Diversity
Board Diversity
 
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General Recommendation:
Generally vote for requests for reports on a company’s efforts to diversify the board, unless:
 
 
◾
 
The gender and racial minority representation of the company’s board is reasonably inclusive in relation to companies of similar size and business; and
 
◾
 
The board already reports on its nominating procedures and gender and racial minority initiatives on the board and within the company.
Vote
case-by-case
on proposals asking a company to increase the gender and racial minority representation on its board, taking into account:
 
 
◾
 
The degree of existing gender and racial minority diversity on the company’s board and among its executive officers;
 
◾
 
The level of gender and racial minority representation that exists at the company’s industry peers;
 
◾
 
The company’s established process for addressing gender and racial minority board representation;
 
◾
 
Whether the proposal includes an overly prescriptive request to amend nominating committee charter language;
 
◾
 
The independence of the company’s nominating committee;
 
◾
 
Whether the company uses an outside search firm to identify potential director nominees; and
 
◾
 
Whether the company has had recent controversies, fines, or litigation regarding equal employment practices.
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Equality of Opportunity
 
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General Recommendation:
Generally vote for proposals requesting a company disclose its diversity policies or initiatives, or proposals requesting disclosure of a company’s comprehensive workforce diversity data, including requests for
EEO-1
data, unless:
 
 
◾
 
The company publicly discloses equal opportunity policies and initiatives in a comprehensive manner;
 
◾
 
The company already publicly discloses comprehensive workforce diversity data; and
 
◾
 
The company has no recent significant
EEO-related
violations or litigation.
Generally vote against proposals seeking information on the diversity efforts of suppliers and service providers. Such requests may pose a significant burden on the company.
Gender Identity, Sexual Orientation, and Domestic Partner Benefits
 
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General Recommendation:
Generally vote for proposals seeking to amend a company’s EEO statement or diversity policies to prohibit discrimination based on sexual orientation and/or gender identity, unless the change would be unduly burdensome.
Generally vote against proposals to extend company benefits to, or eliminate benefits from, domestic partners. Decisions regarding benefits should be left to the discretion of the company.
Gender, Race/Ethnicity Pay Gap
 
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General Recommendation:
Vote
case-by-case
on requests for reports on a company’s pay data by gender or race/ ethnicity, or a report on a company’s policies and goals to reduce any gender or race/ethnicity pay gaps, taking into account:
 
 
◾
 
The company’s current policies and disclosure related to both its diversity and inclusion policies and practices and its compensation philosophy on fair and equitable compensation practices;
 
◾
 
Whether the company has been the subject of recent controversy, litigation, or regulatory actions related to gender, race, or ethnicity pay gap issues;
 
◾
 
The company’s disclosure regarding gender, race, or ethnicity pay gap policies or initiatives compared to its industry peers; and
 
◾
 
Local laws regarding categorization of race and/or ethnicity and definitions of ethnic and/or racial minorities.
Environment and Sustainability
Facility and Workplace Safety
 
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General Recommendation:
Vote
case-by-case
on requests for workplace safety reports, including reports on accident risk reduction efforts, taking into account:
 
 
◾
 
The company’s current level of disclosure of its workplace health and safety performance data, health and safety management policies, initiatives, and oversight mechanisms;
 
◾
 
The nature of the company’s business, specifically regarding company and employee exposure to health and safety risks;
 
◾
 
Recent significant controversies, fines, or violations related to workplace health and safety; and
 
◾
 
The company’s workplace health and safety performance relative to industry peers.
Vote
case-by-case
on resolutions requesting that a company report on safety and/or security risks associated with its operations and/or facilities, considering:
 
 
◾
 
The company’s compliance with applicable regulations and guidelines;
 
   
I S S G O V E R N A N C E . C O M
  
 
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B-62
U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
The company’s current level of disclosure regarding its security and safety policies, procedures, and compliance monitoring; and
 
◾
 
The existence of recent, significant violations, fines, or controversy regarding the safety and security of the company’s operations and/or facilities.
General Environmental Proposals and Community Impact Assessments
 
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General Recommendation:
Vote
case-by-case
on requests for reports on policies and/or the potential (community) social and/or environmental impact of company operations, considering:
 
 
◾
 
Current disclosure of applicable policies and risk assessment report(s) and risk management procedures;
 
◾
 
The impact of regulatory
non-compliance,
litigation, remediation, or reputational loss that may be associated with failure to manage the company’s operations in question, including the management of relevant community and stakeholder relations;
 
◾
 
The nature, purpose, and scope of the company’s operations in the specific region(s);
 
◾
 
The degree to which company policies and procedures are consistent with industry norms; and
 
◾
 
The scope of the resolution.
Hydraulic Fracturing
 
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General Recommendation:
Generally vote for proposals requesting greater disclosure of a company’s (natural gas) hydraulic fracturing operations, including measures the company has taken to manage and mitigate the potential community and environmental impacts of those operations, considering:
 
 
◾
 
The company’s current level of disclosure of relevant policies and oversight mechanisms;
 
◾
 
The company’s current level of such disclosure relative to its industry peers;
 
◾
 
Potential relevant local, state, or national regulatory developments; and
 
◾
 
Controversies, fines, or litigation related to the company’s hydraulic fracturing operations.
Operations in Protected Areas
 
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General Recommendation:
Generally vote for requests for reports on potential environmental damage as a result of company operations in protected regions, unless:
 
 
◾
 
Operations in the specified regions are not permitted by current laws or regulations;
 
◾
 
The company does not currently have operations or plans to develop operations in these protected regions; or
 
◾
 
The company’s disclosure of its operations and environmental policies in these regions is comparable to industry peers.
Recycling
 
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General Recommendation:
Vote
case-by-case
on proposals to report on an existing recycling program, or adopt a new recycling program, taking into account:
 
 
◾
 
The nature of the company’s business;
 
◾
 
The current level of disclosure of the company’s existing related programs;
 
◾
 
The timetable and methods of program implementation prescribed by the proposal;
 
◾
 
The company’s ability to address the issues raised in the proposal; and
 
◾
 
How the company’s recycling programs compare to similar programs of its industry peers.
Sustainability Reporting
 
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General Recommendation:
Generally vote for proposals requesting that a company report on its policies, initiatives, and oversight mechanisms related to social, economic, and environmental sustainability, unless:
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
The company already discloses similar information through existing reports or policies such as an environment, health, and safety (EHS) report; a comprehensive code of corporate conduct; and/or a diversity report; or
 
◾
 
The company has formally committed to the implementation of a reporting program based on Global Reporting Initiative (GRI) guidelines or a similar standard within a specified time frame.
Water Issues
 
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General Recommendation:
Vote
case-by-case
on proposals requesting a company report on, or adopt a new policy on, water-related risks and concerns, taking into account:
 
 
◾
 
The company’s current disclosure of relevant policies, initiatives, oversight mechanisms, and water usage metrics;
 
◾
 
Whether or not the company’s existing water-related policies and practices are consistent with relevant internationally recognized standards and national/local regulations;
 
◾
 
The potential financial impact or risk to the company associated with water-related concerns or issues; and
 
◾
 
Recent, significant company controversies, fines, or litigation regarding water use by the company and its suppliers.
General Corporate Issues
Charitable Contributions
 
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General Recommendation:
Vote against proposals restricting a company from making charitable contributions. Charitable contributions are generally useful for assisting worthwhile causes and for creating goodwill in the community. In the absence of bad faith, self-dealing, or gross negligence, management should determine which, and if, contributions are in the best interests of the company.
Data Security, Privacy, and Internet Issues
 
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General Recommendation:
Vote
case-by-case
on proposals requesting the disclosure or implementation of data security, privacy, or information access and management policies and procedures, considering:
 
 
◾
 
The level of disclosure of company policies and procedures relating to data security, privacy, freedom of speech, information access and management, and Internet censorship;
 
◾
 
Engagement in dialogue with governments or relevant groups with respect to data security, privacy, or the free flow of information on the Internet;
 
◾
 
The scope of business involvement and of investment in countries whose governments censor or monitor the Internet and other telecommunications;
 
◾
 
Applicable market-specific laws or regulations that may be imposed on the company; and
 
◾
 
Controversies, fines, or litigation related to data security, privacy, freedom of speech, or Internet censorship.
Environmental, Social, and Governance (ESG) Compensation-Related Proposals
 
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General Recommendation:
Vote
case-by-case
on proposals to link, or report on linking, executive compensation to sustainability (environmental and social) criteria, considering:
 
 
◾
 
The scope and prescriptive nature of the proposal;
 
◾
 
Whether the company has significant and/or persistent controversies or regulatory violations regarding social and/or environmental issues;
 
◾
 
Whether the company has management systems and oversight mechanisms in place regarding its social and environmental performance;
 
◾
 
The degree to which industry peers have incorporated similar
non-financial
performance criteria in their executive compensation practices; and
 
◾
 
The company’s current level of disclosure regarding its environmental and social performance.
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Human Rights, Human Capital Management, and International Operations
Human Rights Proposals
 
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General Recommendation:
Generally vote for proposals requesting a report on company or company supplier labor and/or human rights standards and policies unless such information is already publicly disclosed.
Vote
case-by-case
on proposals to implement company or company supplier labor and/or human rights standards and policies, considering:
 
 
◾
 
The degree to which existing relevant policies and practices are disclosed;
 
◾
 
Whether or not existing relevant policies are consistent with internationally recognized standards;
 
◾
 
Whether company facilities and those of its suppliers are monitored and how;
 
◾
 
Company participation in fair labor organizations or other internationally recognized human rights initiatives;
 
◾
 
Scope and nature of business conducted in markets known to have higher risk of workplace labor/human rights abuse;
 
◾
 
Recent, significant company controversies, fines, or litigation regarding human rights at the company or its suppliers;
 
◾
 
The scope of the request; and
 
◾
 
Deviation from industry sector peer company standards and practices.
Vote
case-by-case
on proposals requesting that a company conduct an assessment of the human rights risks in its operations or in its supply chain, or report on its human rights risk assessment process, considering:
 
 
◾
 
The degree to which existing relevant policies and practices are disclosed, including information on the implementation of these policies and any related oversight mechanisms;
 
◾
 
The company’s industry and whether the company or its suppliers operate in countries or areas where there is a history of human rights concerns;
 
◾
 
Recent significant controversies, fines, or litigation regarding human rights involving the company or its suppliers, and whether the company has taken remedial steps; and
 
◾
 
Whether the proposal is unduly burdensome or overly prescriptive.
Mandatory Arbitration
 
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General Recommendation:
Vote
case-by-case
on requests for a report on a company’s use of mandatory arbitration on employment-related claims, taking into account:
 
 
◾
 
The company’s current policies and practices related to the use of mandatory arbitration agreements on workplace claims;
 
◾
 
Whether the company has been the subject of recent controversy, litigation, or regulatory actions related to the use of mandatory arbitration agreements on workplace claims; and
 
◾
 
The company’s disclosure of its policies and practices related to the use of mandatory arbitration agreements compared to its peers.
Operations in High Risk Markets
 
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General Recommendation:
Vote
case-by-case
on requests for a report on a company’s potential financial and reputational risks associated with operations in “high-risk” markets, such as a terrorism-sponsoring state or politically/socially unstable region, taking into account:
 
 
◾
 
The nature, purpose, and scope of the operations and business involved that could be affected by social or political disruption;
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Current disclosure of applicable risk assessment(s) and risk management procedures;
 
◾
 
Compliance with U.S. sanctions and laws;
 
◾
 
Consideration of other international policies, standards, and laws; and
 
◾
 
Whether the company has been recently involved in recent, significant controversies, fines, or litigation related to its operations in “high-risk” markets.
Outsourcing/Offshoring
 
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General Recommendation:
Vote
case-by-case
on proposals calling for companies to report on the risks associated with outsourcing/plant closures, considering:
 
 
◾
 
Controversies surrounding operations in the relevant market(s);
 
◾
 
The value of the requested report to shareholders;
 
◾
 
The company’s current level of disclosure of relevant information on outsourcing and plant closure procedures; and
 
◾
 
The company’s existing human rights standards relative to industry peers.
Sexual Harassment
 
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General Recommendation:
Vote
case-by-case
on requests for a report on company actions taken to strengthen policies and oversight to prevent workplace sexual harassment, or a report on risks posed by a company’s failure to prevent workplace sexual harassment, taking into account:
 
 
◾
 
The company’s current policies, practices, oversight mechanisms related to preventing workplace sexual harassment;
 
◾
 
Whether the company has been the subject of recent controversy, litigation, or regulatory actions related to workplace sexual harassment issues; and
 
◾
 
The company’s disclosure regarding workplace sexual harassment policies or initiatives compared to its industry peers.
Weapons and Military Sales
 
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General Recommendation:
Vote against reports on foreign military sales or offsets. Such disclosures may involve sensitive and confidential information. Moreover, companies must comply with government controls and reporting on foreign military sales.
Generally vote against proposals asking a company to cease production or report on the risks associated with the use of depleted uranium munitions or nuclear weapons components and delivery systems, including disengaging from current and proposed contracts. Such contracts are monitored by government agencies, serve multiple military and
non-military
uses, and withdrawal from these contracts could have a negative impact on the company’s business.
Political Activities
Lobbying
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals requesting information on a company’s lobbying (including direct, indirect, and grassroots lobbying) activities, policies, or procedures, considering:
 
 
◾
 
The company’s current disclosure of relevant lobbying policies, and management and board oversight;
 
◾
 
The company’s disclosure regarding trade associations or other groups that it supports, or is a member of, that engage in lobbying activities; and
 
◾
 
Recent significant controversies, fines, or litigation regarding the company’s lobbying-related activities.
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Political Contributions
 
G68G08.JPG
General Recommendation:
Generally vote for proposals requesting greater disclosure of a company’s political contributions and trade association spending policies and activities, considering:
 
 
◾
 
The company’s policies, and management and board oversight related to its direct political contributions and payments to trade associations or other groups that may be used for political purposes;
 
◾
 
The company’s disclosure regarding its support of, and participation in, trade associations or other groups that may make political contributions; and
 
◾
 
Recent significant controversies, fines, or litigation related to the company’s political contributions or political activities.
Vote against proposals barring a company from making political contributions. Businesses are affected by legislation at the federal, state, and local level; barring political contributions can put the company at a competitive disadvantage.
Vote against proposals to publish in newspapers and other media a company’s political contributions. Such publications could present significant cost to the company without providing commensurate value to shareholders.
Political Ties
 
G68G08.JPG
General Recommendation:
Generally vote against proposals asking a company to affirm political nonpartisanship in the workplace, so long as:
 
 
◾
 
There are no recent, significant controversies, fines, or litigation regarding the company’s political contributions or trade association spending; and
 
◾
 
The company has procedures in place to ensure that employee contributions to company-sponsored political action committees (PACs) are strictly voluntary and prohibit coercion.
Vote against proposals asking for a list of company executives, directors, consultants, legal counsels, lobbyists, or investment bankers that have prior government service and whether such service had a bearing on the business of the company. Such a list would be burdensome to prepare without providing any meaningful information to shareholders.
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
8.   Mutual Fund Proxies
Election of Directors
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on the election of directors and trustees, following the same guidelines for uncontested directors for public company shareholder meetings. However, mutual fund boards do not usually have compensation committees, so do not withhold for the lack of this committee.
Closed End Funds- Unilateral
Opt-In
to Control Share Acquisition Statutes
 
G68G08.JPG
General Recommendation:
For
closed-end
management investment companies (CEFs), vote against or withhold from nominating/governance committee members (or other directors on a
case-by-case
basis) at CEFs that have not provided a compelling rationale for
opting-in
to a Control Share Acquisition statute, nor submitted a
by-law
amendment to a shareholder vote.
Converting
Closed-end
Fund to
Open-end
Fund
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on conversion proposals, considering the following factors:
 
 
◾
 
Past performance as a
closed-end
fund;
 
◾
 
Market in which the fund invests;
 
◾
 
Measures taken by the board to address the discount; and
 
◾
 
Past shareholder activism, board activity, and votes on related praposals.
Proxy Contests
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proxy contests, considering the following factors:
 
 
◾
 
Past performance relative to its peers;
 
◾
 
Market in which the fund invests;
 
◾
 
Measures taken by the board to address the issues;
 
◾
 
Past shareholder activism, board activity, and votes on related proposals;
 
◾
 
Strategy of the incumbents versus the dissidents;
 
◾
 
Independence of directors;
 
◾
 
Experience and skills of director candidates;
 
◾
 
Governance profile of the company;
 
◾
 
Evidence of management entrenchment.
Investment Advisory Agreements
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on investment advisory agreements, considering the following factors:
 
 
◾
 
Proposed and current fee schedules;
 
◾
 
Fund category/investment objective;
 
◾
 
Performance benchmarks;
 
◾
 
Share price performance as compared with peers;
 
◾
 
Resulting fees relative to peers;
 
◾
 
Assignments (where the advisor undergoes a change of control).
Approving New Classes or Series of Shares
 
G68G08.JPG
General Recommendation:
Vote for the establishment of new classes or series of shares.
Preferred Stock Proposals
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on the authorization for or increase in preferred shares, considering the following factors:
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
Stated specific financing purpose;
 
◾
 
Possible dilution for common shares;
 
◾
 
Whether the shares can be used for antitakeover purposes.
1940 Act Policies
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on policies under the Investment Advisor Act of 1940, considering the following factors:
 
 
◾
 
Potential competitiveness;
 
◾
 
Regulatory developments;
 
◾
 
Current and potential returns; and
 
◾
 
Current and potential risk.
 
 
Generally vote for these amendments as long as the proposed changes do not fundamentally alter the investment focus of the fund and do comply with the current SEC interpretation.
Changing a Fundamental Restriction to a Nonfundamental Restriction
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals to change a fundamental restriction to a
non-fundamental
restriction, considering the following factors:
 
 
◾
 
The fund’s target investments;
 
◾
 
The reasons given by the fund for the change; and
 
◾
 
The projected impact of the change on the portfolio.
Change Fundamental Investment Objective to Nonfundamental
 
G68G08.JPG
General Recommendation:
Vote against proposals to change a fund’s fundamental investment objective to
non-fundamental.
Name Change Proposals
G68G08.JPG
General Recommendation:
Vote
case-by-case
on name change proposals, considering the following factors:
 
 
◾
 
Political/economic changes in the target market;
 
◾
 
Consolidation in the target market; and
 
◾
 
Current asset composition.
Change in Fund’s Subclassification
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on changes in a fund’s
sub-classification,
considering the following factors:
 
 
◾
 
Potential competitiveness;
 
◾
 
Current and potential returns;
 
◾
 
Risk of concentration;
 
◾
 
Consolidation in target industry.
Business Development Companies—Authorization to Sell Shares of Common Stock at a Price below Net Asset Value
 
G68G08.JPG
General Recommendation:
Vote for proposals authorizing the board to issue shares below Net Asset Value (NAV) if:
 
 
◾
 
The proposal to allow share issuances below NAV has an expiration date no more than one year from the date shareholders approve the underlying proposal, as required under the Investment Company Act of 1940;
 
◾
 
The sale is deemed to be in the best interests of shareholders by (1) a majority of the company’s independent directors and (2) a majority of the company’s directors who have no financial interest in the issuance; and
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
 
◾
 
The company has demonstrated responsible past use of share issuances by either:
 
◾
 
Outperforming peers in its
8-digit
GICS group as measured by
one-
and three-year median TSRs; or
 
◾
 
Providing disclosure that its past share issuances were priced at levels that resulted in only small or moderate discounts to NAV and economic dilution to existing
non-participating
shareholders.
Disposition of Assets/Termination/Liquidation
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals to dispose of assets, to terminate or liquidate, considering the following factors:
 
 
◾
 
Strategies employed to salvage the company;
 
◾
 
The fund’s past performance;
 
◾
 
The terms of the liquidation.
Changes to the Charter Document
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on changes to the charter document, considering the following factors:
 
 
◾
 
The degree of change implied by the proposal;
 
◾
 
The efficiencies that could result;
 
◾
 
The state of incorporation;
 
◾
 
Regulatory standards and implications.
Vote against any of the following changes:
 
 
◾
 
Removal of shareholder approval requirement to reorganize or terminate the trust or any of its series;
 
◾
 
Removal of shareholder approval requirement for amendments to the new declaration of trust;
 
◾
 
Removal of shareholder approval requirement to amend the fund’s management contract, allowing the contract to be modified by the investment manager and the trust management, as permitted by the 1940 Act;
 
◾
 
Allow the trustees to impose other fees in addition to sales charges on investment in a fund, such as deferred sales charges and redemption fees that may be imposed upon redemption of a fund’s shares;
 
◾
 
Removal of shareholder approval requirement to engage in and terminate subadvisory arrangements;
 
◾
 
Removal of shareholder approval requirement to change the domicile of the fund.
Changing the Domicile of a Fund
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on
re-incorporations,
considering the following factors:
 
 
◾
 
Regulations of both states;
 
◾
 
Required fundamental policies of both states;
 
◾
 
The increased flexibility available.
Authorizing the Board to Hire and Terminate Subadvisers Without Shareholder Approval
 
G68G08.JPG
General Recommendation:
Vote against proposals authorizing the board to hire or terminate subadvisers without shareholder approval if the investment adviser currently employs only one subadviser.
Distribution Agreements
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on distribution agreement proposals, considering the following factors:
 
 
◾
 
Fees charged to comparably sized funds with similar objectives;
 
◾
 
The proposed distributor’s reputation and past performance;
 
◾
 
The competitiveness of the fund in the industry;
 
◾
 
The terms of the agreement.
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
Master-Feeder Structure
 
G68G08.JPG
General Recommendation:
Vote for the establishment of a master-feeder structure.
Mergers
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on merger proposals, considering the following factors:
 
 
◾
 
Resulting fee structure;
 
◾
 
Performance of both funds;
 
◾
 
Continuity of management personnel;
 
◾
 
Changes in corporate governance and their impact on shareholder rights.
Shareholder Proposals for Mutual Funds
Establish Director Ownership Requirement
 
G68G08.JPG
General Recommendation:
Generally vote against shareholder proposals that mandate a specific minimum amount of stock that directors must own in order to qualify as a director or to remain on the board.
Reimburse Shareholder for Expenses Incurred
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on shareholder proposals to reimburse proxy solicitation expenses. When supporting the dissidents, vote for the reimbursement of the proxy solicitation expenses.
Terminate the Investment Advisor
 
G68G08.JPG
General Recommendation:
Vote
case-by-case
on proposals to terminate the investment advisor, considering the following factors:
 
 
◾
 
Performance of the fund’s Net Asset Value (NAV);
 
◾
 
The fund’s history of shareholder relations;
 
◾
 
The performance of other funds under the advisor’s management.
 
   
I S S G O V E R N A N C E . C O M
  
 
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U N I T E D  S T A T E S
P R O X Y  V O T I N G  G U I D E L I N E S
  
 
                
 
  
  LOGO  
 
We empower investors and companies to build
for long-term and sustainable growth by providing
high-quality data, analytics, and insight.
G E T   S T A R T E D   W I T H   I S S   S O L U T I O N S
Email sales@issgovernance.com or visit issgovernance.com for more information.
Founded in 1985, the Institutional Shareholder Services group of companies (“ISS”) is the world’s leading provider of corporate governance and responsible investment solutions alongside fund intelligence and services, events, and editorial content for institutional investors, globally. ISS’ solutions include objective governance research and recommendations; responsible investment data, analytics, and research;
end-to-end
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This document and all of the information contained in it, including without limitation all text, data, graphs, and charts (collectively, the “Information”) is the property of Institutional Shareholder Services Inc. (ISS), its subsidiaries, or, in some cases third party suppliers.
The Information has not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body. None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), or a promotion or recommendation of, any security, financial product or other investment vehicle or any trading strategy, and ISS does not endorse, approve, or otherwise express any opinion regarding any issuer, securities, financial products or instruments or trading strategies.
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2020 | Institutional Shareholder Services and/or its affiliates
 
   
I S S G O V E R N A N C E . C O M
  
 
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MAI-FSTK-0221D
PART C—OTHER INFORMATION
Item 28. Exhibits
 
(a)(1)
  
(a)(2)
  
(a)(3)
  
(a)(4)
  
(a)(5)
  
(a)(6)
  
(a)(7)
  
(a)(8)
  
(a)(9)
  
(a)(10)
  
(a)(11)
  
(a)(12)
  
(a)(13)
  
(a)(14)
  
(a)(15)
  
(a)(16)
  
(a)(17)
  
(a)(18)
  
(a)(19)
  
(a)(20)
  
 
C-1
(a)(21)
  
(a)(22)
  
(a)(23)
  
(a)(24)
  
(a)(25)
  
(a)(26)
  
(a)(27)
  
(a)(28)
  
(a)(29)
  
(a)(30)
  
(a)(31)
  
(a)(32)
  
(a)(33)
  
(a)(34)
  
(a)(35)
  
(b)
  
 
C-2
(c)
  
Not applicable.
(d)(1)
  
(d)(2)
  
(d)(3)
  
(d)(4)
  
(d)(5)
  
(d)(6)
  
(d)(7)
  
(d)(8)
  
(e)(1)
  
(e)(2)
  
(f)
  
Not applicable.
(g)(1)
  
(g)(2)
  
(h)(1)
  
(h)(2)
  
 
C-3
(h)(3)
  
(h)(4)
  
(h)(5)
  
(i)
  
Not applicable.
(j)
  
(k)
  
Not applicable.
(l)
  
Not applicable.
(m)
  
(n)
  
(o)
  
Reserved.
(p)(1)
  
(p)(2)
  
(q)
  
Item 29. Persons Controlled by or under Common Control with the Fund
Not applicable.
Item 30. Indemnification
The Registrant’s Articles of Incorporation and Bylaws provide that each present or former director, officer, agent and employee of the Registrant or any predecessor or constituent corporation, and each person who, at the request of the Registrant, serves or served another business enterprise in any such capacity, and the heirs and personal representatives of each of the foregoing shall be indemnified by the Registrant to the fullest extent permitted by law against all expenses, including without limitation amounts of judgments, fines, amounts paid in settlement, attorneys’ and accountants’ fees, and costs of litigation, which shall necessarily or reasonably be incurred by him or her in connection with any action, suit or proceeding to which he or she was, is or shall be a party, or with which he or she may be threatened, by reason of his or her being or having been a director, officer, agent or employee of the Registrant or such predecessor or constituent corporation or such business enterprise, whether or not he or she continues to be such at the time of incurring such expenses. Such indemnification may include without limitation the purchase of insurance and advancement of any expenses, and the Registrant shall be empowered to enter into agreements to limit the liability of directors and officers of the Registrant. No indemnification shall be made in violation of the General Corporation Law of the State of Maryland or the Investment Company Act of 1940 (the “1940 Act”). The Registrant’s Articles of Incorporation and Bylaws further provide that no director or officer of the Registrant shall be liable to the Registrant or its stockholders for money damages, except (i) to the extent that it is proved that such director or officer actually received an improper benefit or profit in money, property or services, for the amount of the benefit or profit in money, property or services
 
C-4
actually received, or (ii) to the extent that a judgment or other final adjudication adverse to such director or officer is entered in a proceeding based on a finding in the proceeding that such director’s or officer’s action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding. The foregoing shall not be construed to protect or purport to protect any director or officer of the Registrant against any liability to the Registrant or its stockholders to which such director or officer would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such office. The Registrant undertakes that no indemnification or advance will be made unless it is consistent with Sections 17(h) or 17(i) of the Investment Company Act of 1940, as now enacted or hereafter amended, and Securities and Exchange Commission rules, regulations, and releases (including, without limitation, Investment Company Act of 1940 Release No. 11330, September 2, 1980).
 
 
The trustees and officers of the Registrant are covered by joint errors and omissions insurance policies against liability and expenses of claims of wrongful acts arising out of their position with the Registrant and other Nuveen funds, subject to such policies’ coverage limits, exclusions and deductibles.
Insofar as the indemnification for liabilities arising under the Securities Act of 1933, as amended, (the “1933 Act”) may be permitted to the officers, directors or controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by an officer or director or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such officer, director or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue.
Item 31. Business and Other Connections of Investment Adviser
(a) Nuveen Fund Advisors, LLC (“Nuveen Fund Advisors”) (formerly known as Nuveen Fund Advisors, Inc. and Nuveen Asset Management) manages the Registrant and serves as investment adviser or manager to other
open-end
and closed-end management investment companies. The principal business address for all of these investment companies and the persons named below is 333 West Wacker Drive, Chicago, Illinois 60606.
A description of any business, profession, vocation or employment of a substantial nature in which the directors and officers of Nuveen Fund Advisors who serve as officers or trustees of the Registrant have engaged during the last two years for his or her account or in the capacity of director, officer,
 
C-5
employee, partner or trustee appears under “Management” in the Statement of Additional Information. Such information for the remaining senior officers of Nuveen Fund Advisors appears below:
 
Name and Position with Nuveen Fund Advisors
  
Other Business, Profession, Vocation or
Employment During Past Two Years
Oluseun Salami, Executive Vice President and Chief Financial Officer
  
Director (since 2020) NIS/R&T, Inc.; Senior Vice President and Chief Financial Officer, Nuveen Alternative Advisors LLC (since 2020), Nuveen, LLC (since 2020), Teachers Advisors, LLC (since 2020), TIAA-CREF Asset Management LLC (since 2020) and TIAA-CREF Investment Management, LLC (since 2020); Senior Vice President, Chief Financial Officer, Business Finance and Planning (since 2020) Chief Accounting Officer (2019), Senior Vice President, Corporate Controller (2018-2020), Teachers Insurance and Annuity Association of America, Senior Vice President, Corporate Controller, College Retirement Equities Fund, TIAA Board of Overseers, TIAA Separate Account VA-1, TIAA-CREF Funds, TIAA-CREF Life Funds (2018-2020).
Erik Mogavero, Managing Director and Chief Compliance Officer
  
Formerly employed by Deutsche Bank (2013-2017) as Managing Director, Head of Asset Management and Wealth Management Compliance for the Americas region and Chief Compliance Officer of Deutsche Investment Management Americas.
Michael A. Perry, Executive Vice President
  
Co-Chief Executive Officer (since April 2019), formerly, Executive Vice President (2017-2019), formerly, Managing Director (2015-2017) of Nuveen Securities, LLC; and Executive Vice President (since 2017) of Nuveen Alternative Investments, LLC.
Megan Sendlak, Managing Director and Controller
  
Managing Director and Controller (since 2020) of Nuveen Alternatives Advisors LLC, Nuveen Asset Management, LLC, Nuveen Investments, Inc., Teachers Advisors, LLC, and TIAA-CREF Investment Management, LLC; Managing Director and Controller (since 2020), formerly, Vice President and Corporate Accounting Director (2018-2020) of Nuveen, LLC; Vice President and Assistant Controller (since 2019) of NIS/R&T, INC., NWQ Investment Management Company, LLC and Santa Barbara Asset Management, LLC.
(b) Nuveen Asset Management, LLC (“Nuveen Asset Management”) acts as
sub-investment
adviser to Nuveen Dividend Value Fund, Nuveen Large Cap Select Fund, Nuveen Mid Cap Growth
 
C-6
Opportunities Fund, Nuveen Mid Cap Value Fund, Nuveen Small Cap Growth Opportunities Fund, Nuveen Small Cap Select Fund and Nuveen Small Cap Value Fund and also serves as sub-investment adviser to other
open-end
and
closed-end
funds and investment adviser to separately managed accounts. The following is a list of the senior officers of Nuveen Asset Management. The principal business address of each person is 333 West Wacker Drive, Chicago, Illinois 60606.
A description of any business, profession, vocation or employment of a substantial nature in which the directors and officers of Nuveen Asset Management who serve as officers or trustees of the Registrant have engaged during the last two years for his or her account or in the capacity of director, officer, employee, partner or trustee appears under “Management” in the Statement of Additional Information. Such information for the remaining senior officers of Nuveen Asset Management appears below:
 
Name
  
Position and Offices with
Nuveen Asset Management
  
Other Business, Profession, Vocation or
Employment During Past Two Years
William T. Huffman
  
President
  
None
Stuart J. Cohen
  
Managing Director and Head of Legal
  
Managing Director and Assistant Secretary (since 2002) of Nuveen Securities, LLC; Managing Director (since 2007) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, LLC.
Travis M. Pauley
  
Managing Director and Chief Compliance Officer
  
Regional Head of Compliance and Regulatory Legal (2013-2020) of AXA Investment Managers.
Megan Sendlak
  
Managing Director and Controller
  
Managing Director and Controller (since 2020) of Nuveen Alternatives Advisors LLC, Nuveen Investments, Inc., Nuveen Fund Advisors, LLC, Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; Managing Director and Controller (since 2020), formerly, Vice President and Corporate Accounting Director (2018-2020) of Nuveen, LLC; Vice President and Assistant Controller (since 2019) of NIS/R&T, INC., NWQ Investment Management Company, LLC and Santa Barbara Asset Management, LLC.
Item 32. Principal Underwriters
(a) Nuveen Securities, LLC (“Nuveen”) acts as principal underwriter to the following
open-end
management type investment companies: Nuveen Multistate Trust I, Nuveen Multistate Trust II, Nuveen Multistate Trust III, Nuveen Multistate Trust IV, Nuveen Municipal Trust, Nuveen Managed Accounts Portfolios Trust, Nuveen Investment Trust, Nuveen Investment Trust II, Nuveen Investment Trust III, Nuveen Investment Trust V, NuShares ETF Trust, TIAA-CREF Life Funds, TIAA-CREF Funds and the Registrant.
(b)
 
Name and Principal
Business Address
  
Positions and Offices
with Nuveen Securities
  
Positions and Offices
with Registrant
Deann D. Morgan
100 Park Avenue
New York, NY 10016
  
Co-Chief Executive Officer
  
Vice President
 
C-7
Name and Principal
Business Address
  
Positions and Offices
with Nuveen Securities
  
Positions and Offices
with Registrant
Michael A. Perry
333 West Wacker Drive
Chicago, IL 60606
  
Co-Chief Executive Officer
  
None
William Huffman
333 West Wacker Drive
Chicago, IL 60606
  
Executive Vice President
  
None
Kevin J. McCarthy
333 West Wacker Drive
Chicago, IL 60606
  
Senior Managing Director and Assistant Secretary
  
Vice President and Assistant Secretary
Christopher M. Rohrbacher
333 West Wacker Drive
Chicago, IL 60606
  
Managing Director and Assistant Secretary
  
Vice President and Assistant Secretary
Lucas A. Satre
333 West Wacker Drive
Chicago, IL 60606
  
Managing Director, Secretary and General Counsel
  
None
Mark J. Czarniecki
901 Marquette Avenue
Minneapolis, MN 55402
  
Vice President and
Assistant Secretary
  
Vice President and Secretary
(c) Not applicable.
Item 33. Location of Accounts and Records
Nuveen Fund Advisors, 333 West Wacker Drive, Chicago, Illinois 60606, maintains the Certificate of Incorporation, By-Laws, minutes of director and shareholder meetings and contracts of the Registrant and all advisory material of the investment adviser.
State Street Bank and Trust Company, One Lincoln Street, Boston, Massachusetts 02111, currently maintains all general and subsidiary ledgers, journals, trial balances, records of all portfolio purchases and sales, and all other required records not maintained by Nuveen Fund Advisors.
DST Asset Manager Solutions, Inc., P.O. Box 219140, Kansas City, Missouri 64121-9140, maintains all the required records in its capacity as transfer, dividend paying, and shareholder service agent for the Registrant.
Item 34. Management Services
Not applicable.
Item 35. Undertakings
Not applicable.
 
C-8
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under Rule 485(b) under the Securities Act of 1933, as amended, and has duly caused this post-effective amendment to its registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Chicago and State of Illinois, on the 26th day of February, 2021.
 
NUVEEN INVESTMENT FUNDS, INC.
By:  
 
/s/    MARK J. CZARNIECKI        
 
Mark J. Czarniecki
 
Vice President and Secretary
Pursuant to the requirements of the Securities Act of 1933, as amended, this post-effective amendment to the registration statement has been signed below by the following persons in the capacities and on the date indicated.
 

 
 
 
 
 
 
 
 
Signature
  
Title
 
 
 
 
 
Date

 

 
 
 
 
 

/S/    E. SCOTT WICKERHAM
E. SCOTT WICKERHAM
  
Vice President and Controller (principal financial and accounting officer)
 
 
 
February 26, 2021
/S/    CHRISTOPHER E. STICKROD
CHRISTOPHER E. STICKROD
  
Chief Administrative Officer (principal executive officer)
 
 
 
February 26, 2021
TERENCE J. TOTH*
  
Chairman of the Board and Director
 
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By:
 
 
 
 
 
 
 
/S/    MARK J. CZARNIECKI
 
MARK J. CZARNIECKI
Attorney-in-Fact
February 26, 2021
JACK B. EVANS*
  
Director
WILLIAM C. HUNTER*
  
Director
ALBIN F.MOSCHNER*
  
Director
JOHN K. NELSON*
  
Director
JUDITH M. STOCKDALE*
  
Director
CAROLE E. STONE*
  
Director
MATTHEW THORNTON III*
  
Director
 
MARGARET L. WOLFF*
  
Director
 
ROBERT L. YOUNG*
  
Director
 
 
 
*
An original power of attorney authorizing, among others, Mark J. Czarniecki and Christopher M. Rohrbacher to execute this registration statement, and amendments thereto, for each of the directors of the Registrant on whose behalf this registration statement is filed, has been executed and is filed herewith.
EXHIBIT INDEX
 
 
 
 
Exhibit
Number
  
Exhibit
(h)(4)
  
(j)
  
(p)(1)
  
(q)
  
101.INS
  
XBRL Instance Document – the instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH
  
XBRL Taxonomy Extension Schema Document.
101.CAL
  
XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
  
XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
  
XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
  
XBRL Taxonomy Extension Presentation Linkbase Document.

AMENDMENT

To

Transfer Agency and Service Agreement

Between

Each of the Nuveen Open-End Investment Companies

As Listed on Schedule A to the Agreement

And

DST Asset Manager Solutions, Inc.

This Amendment is made as of this 20th day of January, 2021 (“Effective Date”), between each of the Nuveen Open-End Investment Companies, as listed on Schedule A to the Agreement (collectively, the “Funds”) and DST Asset Manager Solutions, Inc. (the “Transfer Agent”). In accordance with Section 16.l (Amendment) and Section 17 (Additional Portfolios/Funds) of the Transfer Agency and Service Agreement dated May 11, 2012, as amended (the “Agreement”), the parties desire to amend the Agreement as set forth herein.

NOW THEREFORE, the parties agree as follows:

 

  1.

Schedule A. The current Schedule A to the Agreement is hereby replaced and superseded with the Schedule A attached hereto, effective as of the Effective Date.

 

  2.

All defined terms and definitions in the Agreement shall be the same in this Amendment (the “January 20, 2021 Amendment”) except as specifically revised by this Amendment; and

 

  3.

Except as specifically set forth in this January 20, 2021 Amendment, all other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this January 20, 2021 Amendment to be executed by a duly authorized officer on one or more counterparts as of the latest date of signature provided below.

 

EACH OF THE NUVEEN FUNDS,     DST ASSET MANAGER     
AS LISTED ON SCHEDULE A     SOLUTIONS, INC.     

By: /s/ Tina M. Lazar

   

By: /s/ Michael Sleightholme

    

Print: Tina M. Lazar

   

Print: Michael Sleightholme

    

Title: Vice President

   

Title: VP

    

Date: January 20, 2021

   

Date: January 22, 2021

    
As an Authorized Officer on behalf of each         
Of the Funds indicated on Schedule A         

SCHEDULE A

Nuveen Open-End Funds

Effective January 20, 2021

 

1.

NUVEEN MUNICIPAL TRUST

Nuveen All-American Municipal Bond Fund

Nuveen High Yield Municipal Bond Fund

Nuveen Intermediate Duration Municipal Bond Fund

Nuveen Limited Term Municipal Bond Fund

Nuveen Short Duration High Yield Municipal Bond Fund

Nuveen Strategic Municipal Opportunities Fund

 

2.

NUVEEN MULTISTATE TRUST I

Nuveen Arizona Municipal Bond Fund

Nuveen Colorado Municipal Bond Fund

Nuveen Maryland Municipal Bond Fund

Nuveen New Mexico Municipal Bond Fund

Nuveen Pennsylvania Municipal Bond Fund

Nuveen Virginia Municipal Bond Fund

 

3.

NUVEEN MULTISTATE TRUST II

Nuveen California High Yield Municipal Bond Fund

Nuveen California Municipal Bond Fund

Nuveen Connecticut Municipal Bond Fund

Nuveen Massachusetts Municipal Bond Fund

Nuveen New Jersey Municipal Bond Fund

Nuveen New York Municipal Bond Fund

 

4.

NUVEEN MULTISTATE TRUST III

Nuveen Georgia Municipal Bond Fund

Nuveen Louisiana Municipal Bond Fund

Nuveen North Carolina Municipal Bond Fund

 

 

5.

NUVEEN MULTISTATE TRUST IV

Nuveen Kansas Municipal Bond Fund

Nuveen Kentucky Municipal Bond Fund

Nuveen Michigan Municipal Bond Fund

Nuveen Missouri Municipal Bond Fund

Nuveen Ohio Municipal Bond Fund

Nuveen Wisconsin Municipal Bond Fund

SCHEDULE A

Nuveen Open-End Funds

Effective January 20, 2021

 

6.

NUVEEN INVESTMENT TRUST

Nuveen Large Core Fund

Nuveen Equity Market Neutral Fund

Nuveen NWQ Global Equity Income Fund

Nuveen NWQ Large-Cap Value Fund

Nuveen NWQ Multi-Cap Value Fund

Nuveen NWQ Small/Mid-Cap Value Fund

Nuveen NWQ Small-Cap Value Fund

 

7.

NUVEEN INVESTMENT TRUST II

Nuveen Emerging Markets Equity Fund

Nuveen Equity Long/Short Fund

Nuveen International Growth Fund

Nuveen NWQ International Value Fund

Nuveen Santa Barbara Dividend Growth Fund

Nuveen Santa Barbara Global Dividend Growth Fund

Nuveen Santa Barbara International Dividend Growth Fund

Nuveen Winslow International Large Cap Fund

Nuveen Winslow International Small Cap Fund

Nuveen Winslow Large-Cap Growth ESG Fund

 

8.

NUVEEN INVESTMENT TRUST III

Nuveen Floating Rate Income Fund

Nuveen High Yield Income Fund

 

9.

NUVEEN INVESTMENT TRUST V

Nuveen Global Real Estate Securities Fund

Nuveen NWQ Flexible Income Fund

Nuveen Preferred Securities and Income Fund

 

10.

NUVEEN MANAGED ACCOUNTS PORTFOLIOS TRUST

Municipal Total Return Managed Accounts Portfolio

Nuveen Core Impact Bond Managed Accounts Portfolio

SCHEDULE A

Nuveen Open-End Funds

Effective January 20, 2021

 

11.

NUVEEN INVESTMENT FUNDS, INC.

Nuveen Dividend Value Fund

Nuveen Global Infrastructure Fund

Nuveen Credit Income Fund

Nuveen Large Cap Select Fund

Nuveen Mid Cap Growth Opportunities Fund

Nuveen Mid Cap Value Fund

Nuveen Minnesota Intermediate Municipal Bond Fund

Nuveen Minnesota Municipal Bond Fund

Nuveen Nebraska Municipal Bond Fund

Nuveen Oregon Intermediate Municipal Bond Fund

Nuveen Real Asset Income Fund

Nuveen Real Estate Securities Fund

Nuveen Short Term Municipal Bond Fund

Nuveen Small Cap Growth Opportunities Fund

Nuveen Small Cap Select Fund

Nuveen Small Cap Value Fund

Nuveen Strategic Income Fund

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in this Registration Statement on Form N-1A of Nuveen Investment Funds, Inc. of our reports dated December 28, 2020, relating to the financial statements and financial highlights, which appears in Nuveen Dividend Value Fund, Nuveen Mid Cap Value Fund, Nuveen Small Cap Value Fund, Nuveen Mid Cap Growth Opportunities Fund, Nuveen Small Cap Growth Opportunities Fund, Nuveen Large Cap Select Fund and Nuveen Small Cap Select Fund’s Annual Report on Form N-CSR for the year ended October 31, 2020. We also consent to the references to us under the headings “Independent Registered Public Accounting Firm” and “Financial Highlights” in such Registration Statement.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

February 25, 2021

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Nuveen Compliance | 13 August 2020

 

 

Code of Ethics

SUMMARY AND SCOPE

 

What the Code is about

Helping to ensure that Nuveen personnel place the interests of Nuveen clients ahead of their own personal interests.

Who the Code applies to and what the implications are

This Code applies to individuals in the following categories:

 

•   Nuveen Employees based in the US or Canada (except employees of Gresham Investment Management LLC, Westchester Group Investment Management, Inc., and any employees of Greenwood Resources, Inc. who are based outside of Portland, Oregon).

 

•   Employees of any US-registered investment adviser who are based outside the US, except Gresham Investment Management LLC and Greenwood Resources, Inc.

 

•   Consultants, interns, and temporary workers based in the US or Canada whose contract length is 90 days or more, unless the Nuveen Ethics Office determines otherwise.

 

•   TIAA employees designated as Access Persons by the TIAA-CREF Funds Chief Compliance Officer or the Nuveen Ethics Office.

Independent directors and trustees of the TIAA-CREF Funds Complex and Nuveen-sponsored or -branded funds have their own Code of Ethics and are not subject to this one.

For individuals who are subject to the Code, there are two designations with different implications: Access Person and Investment Person.

ACCESS PERSON

All Nuveen Employees who are subject to the Code are considered Access Persons, since they have, or could have, access to non-public information about securities transactions and other investments, holdings, or recommendations for Affiliate-Advised Accounts or Portfolios.

Key characteristics of this designation. An individual may be considered an Access Person of multiple advisers affiliated with Nuveen, or of only one. If your regular duties give you access to non-public information, or you are an officer of a Nuveen or TIAA-CREF sponsored or branded fund, your personal trading is generally monitored only against the trading activity of the specific adviser(s) or Affiliated Funds with which you are involved. For other employees, personal

trading is typically monitored against the trading activities of all advisers affiliated with Nuveen. You will generally not be permitted to execute transactions in a security on any day when an Affiliate-Advised Account or Portfolio managed by the adviser(s) that you are monitored against has a pending buy or sell order for that security.

INVESTMENT PERSON

An Access Person who meets any of the following criteria will in addition be considered an Investment Person:

 

•   The Access Person is a Portfolio Manager, Research Analyst or Research Assistant, or they otherwise participate in making recommendations or decisions concerning the purchase or sale of securities in any Affiliate-Advised Account or Portfolio.

 

•   The Access Person has been designated an Investment Person by the Nuveen Ethics Office.

Key characteristics of this designation. The vast majority of Investment Persons are employees of Nuveen’s affiliated investment advisers.

An Investment Person is prohibited from transacting in securities during the period starting 7 calendar days before, and ending 7 calendar days after, any trade in an Affiliate-Advised Account or Portfolio for which he/she has responsibility. In addition, an Investment Person’s personal transactions will be reviewed for conflicts in the period starting 7 calendar days before, and ending 7 calendar days after, all trades by their associated investment adviser. In some cases, the Investment Person may be required to reverse a trade and/or forfeit an appropriate portion of any profit as determined by the Nuveen Ethics Office. These consequences can apply whether or not the trade was pre-cleared.

The personal trading of Investment Persons is generally only monitored against the trading activity of the specific adviser for which they have been designated an Investment Person.

 

 

WHO TO CONTACT

 

Nuveen Ethics Office (Americas)

 

Hotline: 1 800 842 2733 extension 22-5599

 

nuveenethicsoffice@nuveen.com

 

 

Code of Ethics   Page 2 of 8

 

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Important to understand

Some of our affiliated investment advisers may have policies of their own that impose additional rules on the same topics covered in this Code. Check with your manager or local/designated Chief Compliance Officer (CCO) if you have questions.

Personal trading is a privilege, not a right. Nuveen Employees are expected to follow the law and adhere to the highest standards of behavior—including with respect to personal trading. Any violation of the Code could have severe adverse effects on you, your co-workers, and Nuveen. You may be held personally liable for your conduct and be subject to fines, regulatory sanctions, and even criminal penalties.

Because Nuveen can restrict your trading or take actions such as forcing you to hold a position or to disgorge profits, personal trading carries risks beyond normal market risks.

Some requirements in this Code apply to Household Members. Each Household Member (see “Terms with Special Meanings” at right) is subject to the same restrictions and requirements that apply to his/her related Nuveen Employee.

The Code does not address every ethical issue that might arise. If you have any doubt at all after consulting the Code, contact the Nuveen Ethics Office for direction.

The Code applies to appearance as well as substance. Always consider how any action might appear to an outside observer (such as a client or regulator).

You are expected to follow the Code both in letter and in spirit. Literal compliance, such as pre-clearing a transaction, does not necessarily protect you from liability for conduct that violates the spirit of the Code. If you have questions about how to comply with this Code, consult the Nuveen Ethics Office.

 

TERMS WITH SPECIAL MEANINGS

 

Within this policy, these terms are defined as follows:

 

Affiliate-Advised Account or Portfolio Any Affiliated Fund, or any portfolio or client account advised or sub-advised by Nuveen.

 

Affiliated Fund Any TIAA-CREF or Nuveen branded or sponsored open-end fund, closed-end fund, or Exchange Traded Fund (ETF), and any third-party fund advised or sub-advised by Nuveen.

 

Automatic Investment Plan Any program, such as a dividend reinvestment plan (DRIP), under which investment account purchases or withdrawals occur according to a predetermined schedule and allocation.

 

Beneficial Ownership Any interest by which you or any Household Member—directly or indirectly—derives a monetary benefit from purchasing, selling, or owning a security or account, or exercises investment discretion.

 

You have Beneficial Ownership of securities held in accounts in your own name, or any Household Member’s name, and in all other accounts over which you or any Household Member exercises or may exercise investment decision-making powers, or other influence or control, including trust, partnership, estate, and corporate accounts or other joint ownership or pooling arrangements.

 

Code This Code of Ethics.

 

Domestic Partner An individual who is neither a relative of or legally married to a Nuveen Employee, but shares a residence and is in a mutual commitment similar to marriage with such Nuveen Employee.

 

Federal Securities Laws The applicable portions of any of the following laws, as amended, and of any rules adopted under them by the Securities and Exchange Commission or the Department of the Treasury:

 

•  Securities Act of 1933.

 

•  Securities Exchange Act of 1934.

 

•  Investment Company Act of 1940.

 

•  Investment Advisers Act of 1940.

 

•  Sarbanes-Oxley Act of 2002.

 

•  Title V of the Gramm-Leach-Bliley Act.

 

•  The Bank Secrecy Act.

 

Household Member Any of the following who reside, or are expected to reside for at least 90 days a year, in the same household as a Nuveen Employee:

 

•  Spouse or Domestic Partner.

 

•  Sibling.

 

•  Child, stepchild, grandchild.

 

•  Parent, stepparent, grandparent.

 

•  In-laws (mother, father, son, daughter, brother, sister).

 

Independent Director Any director or trustee of an Affiliated Fund who is not an “interested person” within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended.

 

Managed Account Any account, including robo- advised accounts, in which you or a Household Member has Beneficial Ownership and for which you have delegated full investment discretion in writing to a third- party broker or investment manager.

 

 

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TERMS WITH SPECIAL MEANINGS (continued)

 

Nuveen Nuveen, LLC and all of its direct or indirect subsidiaries worldwide.

 

Nuveen Employee Any full- or part-time employee of Nuveen, and any consultants, interns or temporary workers designated by the Nuveen Ethics Office.

 

Private Placement Any offering exempt from registration under the Securities Act of 1933, such as a private equity investment, hedge fund, or limited partnership.

 

Reportable Account Any account for which you or a Household Member has Beneficial Ownership AND in which securities can be bought, sold or held. This includes, among others:

 

•  All brokerage, IRA, custodial and trust accounts.

 

•  All Managed Accounts.

 

•  All 529 College Savings Plan accounts.

 

•  Any Nuveen 401(k) plan account.

 

•  Any 401(k) plan account from a previous employer that permits transactions in any Reportable Security.

 

•  Any direct holding in an Affiliated Fund.

 

•  Any health savings account (HSA) that permits the purchase of any security.

 

•  Any employee stock purchase plan (ESPP) or employee stock ownership plan (ESOP).

 

The following are NOT considered Reportable Accounts:

 

•  Charitable giving accounts.

 

•  Any 401(k) plan account or any other account held directly with a mutual fund complex or mutual fund-only platform in which open-end, non-Affiliated Funds are the only possible investment.

 

•  Any cash management account with a broker in which a security cannot be purchased or sold.

 

•  Any accounts that can invest only in cryptocurrency such as Bitcoin or Ethereum.

 

  

 

 

Reportable Security Any security EXCEPT:

 

•  Direct obligations of the US government (indirect obligations, such as Fannie Mae and Freddie Mac securities, are reportable).

 

•  Certificates of deposit, bankers’ acceptances, commercial paper, and high quality short-term debt (including repurchase agreements).

 

•  Money market funds.

 

•  Open-end funds that are not Affiliated Funds.

 

•  Note that closed-end funds are Reportable Securities.

 

Reportable Transaction Any transaction involving a Reportable Security EXCEPT:

 

•  Transactions in Managed Accounts. Section 16 Persons: Transactions involving Nuveen closed-end funds in any of your Managed Accounts are reportable.

 

•  Transactions under an Automatic Investment Plan; note that transactions that override the pre-set schedule or allocation are reportable.

 

•  Dividends

 

•  Interest Accrued

 

Section 16 Person Section 16 of the Exchange Act and the rules thereunder impose certain obligations on persons specified in section 30(h) of the Investment Company Act of 1940, as well as insiders of any public company that trades on a national stock exchange (such as a Nuveen closed-end fund). For purposes of Section 16, an “insider” is:

 

•  A director of a public company.

 

•  A designated officer of a public company.

 

•  A person who beneficially owns 10% or more of any class of equity security that is registered under Section 12 of the Exchange Act.

 

•  A portfolio manager of a Nuveen closed-end fund.

 

Persons subject to Section 16 include portfolio managers of the Nuveen closed-end funds.

 

GENERAL RESTRICTIONS AND REQUIREMENTS

 

BASIC PRINCIPLES

 

1.

Never abuse a client’s trust, rights, or interests.

 

  

This means you must never do any of the following:

 

  •   Engage in any plan or action, or use any device, that would defraud or deceive a client.

 

  •   Make any material statements of fact that are incorrect or misleading, either as to what they include or omit.

 

  •   Engage in any manipulative practice.

 

  •   Use your position (including any knowledge or access to opportunities you have gained by virtue of your position) to personal advantage or to a client’s disadvantage. This would include, for example, front- running or tailgating (trading directly before or after the execution of a large client trade order), or any attempt to influence a client’s trading to enhance the
   

value of your personal holdings.

 

  •   Conduct personal trading in any way that could be inconsistent with your fiduciary duties to a client (even if it does not technically violate the Code).

 

2.

Handle conflicts of interest appropriately. This applies not only to actual conflicts of interest, but also to any situation that might appear to an outside observer to be improper or a breach of fiduciary duty.

 

3.

Keep confidential information confidential. Always properly safeguard any confidential information you obtain in the course of your work. This includes confidential information related to any of the following:

 

  •   Any Affiliate-Advised Account or Portfolio and any other financial product offered or serviced by Nuveen.

 

  •   New products, product changes, or business initiatives.
 

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  •   Past, current, and prospective clients, including their identities, investments, and account activity.

“Keeping information confidential” means using discretion in disclosing information as well as guarding against unlawful or inappropriate access by others. This includes:

 

  •   Making sure no confidential information is visible on your computer screen and desk when you are not there.

 

  •   Not sharing passwords with others.

 

  •   Using caution when discussing business in any location where your conversation could be overheard. Confidential information may be released only as required by law or as permitted under the applicable privacy policy(ies). Consult the Nuveen Ethics Office or your local/designated CCO before releasing any confidential information.

 

4.

Handle Material Non-Public Information properly. Follow all of the terms described in “Material Non-Public Information” below. Be aware that any failure to handle such information properly is a serious offense and may lead to disciplinary action from Nuveen as well as serious civil or criminal liability.

 

5.

Comply with Federal Securities Laws. Any violation of these laws is punishable as a violation of the Code.

 

6.

Never do anything indirectly that, if done directly, would violate the Code. Such actions will be considered the equivalent of direct Code violations.

 

7.

Promptly alert the Nuveen Ethics Office or your local/designated CCO of any actual or suspected wrongdoing. Examples of wrongdoing include violations of the Federal Securities Laws, misuse of corporate assets, misuse of confidential information, or other violations of the Code. If you prefer to report confidentially, call the TIAA Confidential Helpline at 1-877-774-6492. Note that failure to report suspected wrongdoing in a timely fashion is itself a violation of the Code.

PRE-CLEARANCE AND

HOLDING REQUIREMENTS

 

8.

Pre-clear any trade in Reportable Securities, including certain Affiliated Funds (see box on next page for additional information).

If your trade requires pre-clearance, request approval through the Protegent PTA system (PTA) before you or any Household Member places an order to buy or sell any Reportable Security. Any approval you receive expires at the end of the day it was granted; however, you may place after-hours trades in international markets until 11:59 PM local time on that day. When requesting pre-clearance, follow this process:

  •   Request pre-clearance on the same day you want to trade, during standard US trading hours (9:30 AM to 4:00 PM ET). Be sure your pre-clearance request is accurate as to security and direction of trade.

 

  •   Wait for approval to be displayed before trading. If you receive approval, you may only trade that same day, and only within the scope of approval. If you do not receive approval, do not trade.

 

  •   Place day orders only. Do not place good-till-canceled orders or limit orders that expire beyond the day of pre-clearance approval. You may place orders for an after-hours trading session or in foreign markets using that day’s pre-clearance approval, but you must not place any order that could remain open into the next day’s trading session.

 

9.

Hold positions in securities that are subject to pre-clearance for 60 calendar days, or be prepared to forfeit any gains. Several things to note:

 

  •   You may be required to surrender any gains realized (net of commissions) through a violation of this rule.

 

  •   The 60-day holding requirement is tested on a last- in-first-out basis, across all of your holdings (not just within individual accounts).

 

  •   The 60-day holding requirement extends to any options or other transactions that may have the same effect as a purchase or sale, and to all Reportable Securities except Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), Unit Investment Trusts (UITs), and open-end Affiliated Funds. Nuveen-branded or sponsored closed-end funds are subject to the 60-day holding requirement.

 

  •   You may sell the security on the 60th day after purchase, provided you obtain pre-clearance or an exemption applies.

 

  •   You may re-purchase a security immediately after executing a sale of that same security, which will trigger a new 60 calendar day holding period.

 

  •   You may close a position at a loss at any time, provided pre-clearance has been obtained or an exemption applies. If your preclearance has been denied, it is advisable that you contact the Nuveen Ethics Office if you are seeking to sell at a loss within 60 days of your purchase.

 

10.

Comply with trading restrictions described in the prospectuses for all Affiliated Funds. This includes restrictions on frequent trading in shares of any open-end Affiliated Fund.

 

11.

Pre-clear any transaction in a Managed Account that involves your influence. You must also immediately consult with the Nuveen Ethics Office to discuss whether the account in question can properly remain classified as a Managed Account.

 

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12.

Obtain the required approvals before any transaction in a Private Placement. For any private funds advised or sub-advised by Nuveen, you must obtain approval for all transactions (initial investment, subsequent investment, sales/redemptions) except additional capital calls. For all other Private Placements, you must obtain approval for initial and subsequent investments but not sales/redemptions. Approval is required even if the investment is made in a Managed Account.

 

 

WHAT NEEDS TO BE PRE-CLEARED

 

 

Pre-clearance required

 

•  All actively initiated trades in Reportable Securities, except those listed here under “No pre- clearance required.”

 

•  The sale of restricted stock or employee stock options accrued during prior employment or a Household Member’s employment require pre-clearance. If pre- clearance is denied, you may contact the Nuveen Ethics Office to request reconsideration.

 

 

Be aware that pre-clearance can be withdrawn even after it has been granted, and even after you have traded, if Nuveen later becomes aware of Affiliate-Advised Account or Portfolio trades whose existence would have resulted in denial of pre-clearance. In these cases you may be required to reverse a trade and/or forfeit an appropriate portion of any profit, as determined by the Nuveen Ethics Office.

 

 

Pre-clearance not required

 

•  Shares of any open-end mutual fund (including Affiliated Funds).

 

•  ETFs, ETNs, UITs (including options on ETFs and ETNs).

 

•  CDs and commercial paper.

 

•  Securities acquired or disposed of through actions outside your control or issued pro rata to all holders of the same class of investment, such as automatic dividend reinvestments, stock splits, mergers, spin-offs, or rights subscriptions.

 

 

•  The automatic exercise or liquidation by an exchange of a derivative instrument upon expiration or the delivery of securities pursuant to a written option that is exercised against you, and the assignment of options.

 

•  Sales pursuant to a bona fide tender offer.

 

•  Trades made through an Automatic Investment Plan that have been disclosed to the Nuveen Ethics Office in advance.

 

 

•  Trades in a Managed Account (except that you must pre-clear any trades that involve your influence, any initial purchases of Private Placements, purchases in any equity IPO, and any sales or redemptions of Private Placements that are branded, sponsored, advised or sub- advised by Nuveen).

 

•  Foreign currencies, including futures.

 

 

•  Commodity instruments.

 

•  Index options and index futures.

 

•  Direct investments in cryptocurrencies.

 

 

OTHER RESTRICTIONS

 

13.

Never knowingly trade any security being traded or considered for trade by any Affiliate-Advised Account or Portfolio. This applies to employee transactions in securities that are exempt from pre- clearance, and includes equivalent or related securities.

For example, if a company’s common stock is being traded, you may face restrictions on trading any of the company’s debt, preferred, or foreign equivalent securities, and from trading or exercising any options based on the company’s securities.

 

14.

Always prioritize client trades over personal trades. Your fiduciary duties to the client are far more important than your personal trading, which is a privilege and not a right. Never delay or in any way alter the timing or terms of a client trade for your personal benefit.

 

15.

Do not engage in trading that involves single stock futures, uncovered short sales or uncovered options on individual securities. For any short position you must own the underlying security in equal notional value. Options are permitted only to generate income or for hedging -that is, selling calls and buying puts that are offset by existing long positions or buying cash-covered calls and selling cash-covered puts, with the following exceptions:

 

  •   You may buy or sell (write) uncovered long-term options (those with an expiration of 1 year or more from the date of purchase), subject to the 60-day holding period.

 

  •   Hedging with puts or with shorts against the box is permitted, subject to the 60-day holding period. This means that options on an underlying position must have an expiration date that satisfies the underlying position’s requirement to be held for at least 60 days. Note that a covered call can be written at the time you acquire the underlying position provided the expiration of the option is 60 days or more from the date you enter into the contract.

 

16.

Never participate in an investment club or similar entity.

 

17.

Do not engage in excessive or inappropriate trading activity. Never let personal trading interfere with your professional duties. The Nuveen Ethics Office and/or your local/designated CCO, in consultation with your manager, will determine what constitutes excessive or inappropriate trading.

 

18.

Pre-clear the sale of securities in a margin account. Margin accounts are permitted, however you must obtain pre-clearance when selling to meet a margin call, even if the transaction is initiated by a broker.

 

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19.

Never purchase an IPO without advance approval. This includes Managed Accounts. Equity IPO participation is generally prohibited, but approval may be granted in special circumstances, such as when:

 

  •   You already have equity in the company and are offered shares.

 

  •   You are a policy holder or depositor in a company that is demutualizing.

 

  •   A family member has been offered shares as an employee.

Purchases of initial offerings of fixed income securities, convertible securities, preferred securities, open- and closed-end funds, commodity pools, and secondary equity offerings are generally permitted subject to prior approval from the Nuveen Ethics Office.

 

 

 

MATERIAL NON-PUBLIC INFORMATION

 

       

What is Material Non-Public Information?

 

Material Non-Public Information is defined as information regarding any security, securities-based derivatives or issuer of a security that is both material and non-public.

Information is material if both of the following are true:

 

•  A reasonable investor would likely consider it important when making an investment decision.

 

•  Public release of the information would likely affect the price of a security.

 

Information is generally non-public if it has not been distributed through a widely used public medium, such as a press release or a report, filing or other periodic communication.

 

Restrictions and requirements

 

•  Any time you think you might have, or may be about to, come into possession of Material Non-Public Information (whether in connection with your position at Nuveen or not), alert the Nuveen Ethics Office. Alternatively, you may alert your local/designated CCO or Legal office, who in turn must promptly notify the Nuveen Ethics Office. Follow the instructions you are given.

    

•  Until you receive further instructions from the Nuveen Ethics Office, your local/designated CCO, or Legal, do not take any action in relation to the information, including trading or recommending the relevant securities or communicating the information to anyone else.

 

•  Never make decisions on your own regarding potential Material Non-Public Information, including whether such information is actually Material Non-Public Information or what steps should be taken.

 

•  If the Nuveen Ethics Office, your local/designated CCO and/or Legal determine that you have Material Non- Public Information:

 

– Do not buy, sell, gift, or otherwise dispose of the issuer’s securities, whether on behalf of an Affiliate-Advised Account or Portfolio, yourself, or anyone else.

 

– Do not in any way recommend, encourage, or influence others to transact in the issuer’s securities, even if you do not specifically disclose or reference the Material Non- Public Information.

 

– Do not communicate the Material Non-Public Information to anyone, whether inside or outside Nuveen, except in discussions with the Nuveen Ethics Office and Legal and as expressly permitted by any confidentiality agreement or supplemental policies and procedures of your business unit.

 

•  Please refer to Nuveen’s Material Non-Public Information and Insider Trading Policy for detailed information.

 

  

REPORTING REQUIREMENTS

 

UPON BECOMING A NUVEEN EMPLOYEE

 

20.

Within 10 calendar days of starting at Nuveen, acknowledge receipt of the Code. This includes certifying that you have read the Code, understand it, recognize that you are subject to it, have complied with all of its applicable requirements, and have submitted all Code-required reports.

 

21.

Within 10 calendar days of starting at Nuveen, use PTA to report all of your Reportable Accounts and holdings in Reportable Securities.

For each Reportable Account that permits the purchase of Reportable Securities, upload the most recent statement, making sure that it includes information about the broker,

dealer, or bank through which the account is held and the type of account. For each Reportable Security, provide the security name and type, a ticker symbol or CUSIP, the number of shares or units held, and the principal amount (dollar value).

This information must be no older than 45 calendar days before your first day of employment.

Note that there are separate procedures for Managed Accounts, as described below in item 24. Within 10 calendar days of starting at Nuveen, report all current investments in Private Placements (limited offerings). Limited offerings are Reportable Securities.

 

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22.

Within 30 calendar days of starting at Nuveen, move or close any Reportable Account that is not at an approved firm. This does not include Reportable Accounts that are 401(k), HSA, ESPP/ESOP, 529 plans, or accounts held directly with a mutual fund complex or mutual fund only platform in which open-end non- Affiliated Funds are the only possible investment. Contact the Nuveen Ethics Office if you are unsure whether your account must be held with an approved firm. The list of approved firms is maintained by the Nuveen Ethics Office and may be accessed on PTA.

Under very limited circumstances, it may be possible to obtain a waiver to keep a Reportable Account at a non- approved firm. Examples include:

 

  •   An account owned by a Household Member who works at another financial firm with comparable restrictions.

 

  •   An account that holds securities that cannot be transferred.

 

  •   An account that cannot be moved because of a trust agreement.

To apply for an exception, contact the Nuveen Ethics Office. For any account granted an exception, you are required to upload statements for the account in PTA based on the frequency with which a statement is generated for the account (e.g. monthly, quarterly). In all cases, if your accounts are not held at an approved firm, you must manually enter all executed Reportable Transactions in PTA within 5 days of execution.

At the discretion of the Nuveen Ethics Office, some consultants and temporary workers may not be required to move or close Reportable Accounts.

WHEN OPENING ANY NEW REPORTABLE ACCOUNT (INCLUDING A MANAGED ACCOUNT)

 

23.

Get pre-approval for any new Managed Account before any trading activity commences. Using the appropriate form (available from the Nuveen Ethics Office), provide representations that support the classification of the account as a Managed Account. For an account to be classified as a Managed Account, the account owner must have no direct or indirect influence or control over the securities in the account. The form must be signed by the account’s broker or investment manager and by all account owners. You may be asked periodically to confirm these representations or submit an updated form to confirm such.

Note that if the Managed Account is not maintained at an approved firm, you are also responsible for providing duplicate statements for the Managed Account to the Ethics Office, upon request.

24.

Report any new Reportable Account. Do this in PTA within 10 calendar days of the date you or a Household Member opens the account or an account becomes a Reportable Account through marriage, cohabitation, divorce, death, or another event.

EVERY QUARTER

 

25.

Within 30 calendar days of the end of each calendar quarter, verify in PTA that all Reportable Transactions made during that quarter have been reported. PTA will display all transactions of yours for which it has received notice (except transactions in your TIAA pension or and retirement plan accounts, which you are not required to report because the firm accesses this information directly). For any other Reportable Transactions not displayed, or displayed inaccurately, you are responsible for making any necessary revisions in PTA prior to completing your certification.

 

26.

For each Reportable Transaction, you must provide, as applicable, the transaction date, security name and type, ticker symbol or CUSIP, interest rate (coupon) and maturity date, number of shares, price at which the transaction was effected, principal amount (dollar value), the nature of the trade (buy or sell), and the name of the broker, dealer, or bank that effected the transaction. It is very important that you carefully review and verify the transactions and related details displayed on PTA, checking for accuracy and completeness. Once again, if you find any errors or omissions, correct or add to your list of transactions in PTA.

EVERY YEAR

 

27.

Within 45 calendar days of the end of each calendar year, acknowledge receipt of the most recent version of the Code and certify in PTA as to your Annual Holdings and Accounts Report.

The report must contain the information described in item 20 above, and include your certification that you have reported all Reportable Accounts, and all holdings in Reportable Securities at year end.

If any of your holdings in Reportable Securities are not displayed in PTA or are displayed inaccurately, you are responsible for entering adjustments and trade confirms or making any necessary revisions in PTA to complete your certification.

In addition, you must affirm each year through PTA that each Managed Account is properly classified as a Managed Account, for yourself and on behalf of any Household Member. This separate certification does not require broker or investment manager involvement.

You also must acknowledge any amendments to the Code that occur during the course of the year.

 

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ADDITIONAL RULES FOR
SECTION 16 PERSONS

 

•  Pre-clear (through PTA) any transactions in Nuveen closed-end funds and any other closed-end funds of which you are a Section 16 Person. Your request will be reviewed by Legal.

 

•  Pre-clear buy/sell transactions involving any Nuveen closed-end funds within your Managed Account(s).

 

•  When selling for a gain any securities you buy that are issued by the entity of which you are a Section 16 Person, make sure it is at least 6 months after your most recent purchase of that security. This rule extends to any options or other transactions that may have the same effect as a purchase or sale, and is tested on a last-in- first-out basis. You may be required to surrender any gains realized through a violation of this rule. Note that for any fund of which you are a Section 16 Person, no exception from pre-clearance is available.

 

•  Promptly email details of all executed transactions in these securities to the appropriate contact in Legal.

 

•  See the Nuveen Funds Section 16 Policy and Procedures for additional information.

 

If you are unsure whether you are a Section 16 Person, contact Legal or the Nuveen Ethics Office.

 

     

 

CODE ADMINISTRATION

 

Training

 

You will be required to participate in training on the Code when joining Nuveen as well as periodically during the time you are subject to the Code.

 

Exceptions

 

The Code exists to prevent violations of law. The Nuveen Ethics Office may, under certain circumstances, grant waivers from a Code requirement. No waivers or exceptions that would violate any law will be granted.

 

Monitoring

 

The Nuveen Ethics Office is responsible for monitoring transactions and holdings for any violations of this Code.

 

Consequences of violation

 

Any individual who violates the Code is subject to penalty. Penalties could include, among other possibilities, a written warning, restriction of trading privileges, unwinding or reversing trades, disgorgement of trading profits, fines, and suspension or termination of employment.

 

Applicable rules

 
     

The Code has been adopted in recognition of Nuveen’s fiduciary obligations to clients and in accordance with various provisions of Rule 204A-1 under the Investment Advisers Act of 1940 and Rule 17j-1 under the Investment Company Act of 1940. This Code is also adopted by the Affiliated Funds advised by Nuveen Fund Advisors, LLC, TIAA-CREF Investment Management, LLC and Teachers Advisors, LLC under Rule 17j-1.

 

Some elements of the Code also constitute part of Nuveen’s response to Financial Industry Regulatory Authority (FINRA) requirements that apply to registered personnel of Nuveen Securities, LLC.

 

 

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) his true and lawful attorney-in-fact and agent, for him on his behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as he might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set his hand this 19th day of November 2020.

 

/s/ Jack B. Evans

Jack B. Evans

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) his true and lawful attorney-in-fact and agent, for him on his behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as he might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set his hand this 19th day of November 2020.

 

/s/ William C. Hunter

William C. Hunter

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) his true and lawful attorney-in-fact and agent, for him on his behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as he might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set his hand this 19th day of November 2020.

 

/s/ Albin F. Moschner

Albin F. Moschner

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) his true and lawful attorney-in-fact and agent, for him on his behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as he might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set his hand this 19th day of November 2020.

 

/s/ John K. Nelson

John K. Nelson

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) his true and lawful attorney-in-fact and agent, for him on his behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as he might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set his hand this 19th day of November 2020.

 

/s/ Matthew Thornton III

Matthew Thornton III

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) her true and lawful attorney-in-fact and agent, for her on her behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as she might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set her hand this 19th day of November 2020.

 

/s/ Judith M. Stockdale

Judith M. Stockdale

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) her true and lawful attorney-in-fact and agent, for her on her behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as she might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set her hand this 19th day of November 2020.

 

/s/ Carole E. Stone

Carole E. Stone

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) his true and lawful attorney-in-fact and agent, for him on his behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as he might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set his hand this 19th day of November 2020.

 

/s/ Terence J. Toth

Terence J. Toth

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) her true and lawful attorney-in-fact and agent, for her on her behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as she might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set her hand this 19th day of November 2020.

 

/s/ Margaret L. Wolff

Margaret L. Wolff

NUVEEN OPEN-END FUNDS

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned, a director/trustee of the above-referenced organizations listed on Appendix A, hereby constitutes and appoints MARK J. CZARNIECKI, DIANA R. GONZALEZ, KEVIN J. McCARTHY, CHRISTOPHER M. ROHRBACHER, MARK L. WINGET and ERIC F. FESS, and each of them (with full power to each of them to act alone) his true and lawful attorney-in-fact and agent, for him on his behalf and in Registration Statements on Form N-1A under the Securities Act of 1933 and the Investment Company Act of 1940, including any amendment or amendments thereto, with all exhibits, and any and all other documents required to be filed with any regulatory authority, federal or state, relating to the registration thereof, or the issuance of shares thereof, without limitation, granting unto said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in order to effectuate the same as fully to all intents and purposes as he might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned trustee of the above-referenced organization has hereunto set his hand this 19th day of November 2020.

 

/s/ Robert L. Young

Robert L. Young

APPENDIX A

NUVEEN INVESTMENT FUNDS, INC.

NUVEEN INVESTMENT TRUST

NUVEEN INVESTMENT TRUST II

NUVEEN INVESTMENT TRUST III

NUVEEN INVESTMENT TRUST V

NUVEEN MUNICIPAL TRUST

NUVEEN MULTISTATE TRUST I

NUVEEN MULTISTATE TRUST II

NUVEEN MULTISTATE TRUST III

NUVEEN MULTISTATE TRUST IV

NUVEEN MANAGED ACCOUNTS PORTFOLIOS TRUST