UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-22699

 

Nuveen Preferred and Income Term Fund

(Exact name of registrant as specified in charter)

 

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

(Address of principal executive offices) (Zip code)

 

Kevin J. McCarthy

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(312) 917-7700

 

 

Date of fiscal year end:

July 31

 

 

Date of reporting period:

January 31, 2014

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. SS. 3507.

 



 

ITEM 1. REPORTS TO STOCKHOLDERS.

 



Closed-End Funds

Nuveen Investments

Closed-End Funds

Semi-Annual Report January 31, 2014

JPC

Nuveen Preferred Income Opportunities Fund

JPI

Nuveen Preferred and Income Term Fund

JPW

Nuveen Flexible Investment Income Fund



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Table

of Contents

Chairman's Letter to Shareholders

   

4

   

Portfolio Managers' Comments

   

5

   

Fund Leverage

   

13

   

Common Share Information

   

14

   

Risk Considerations

   

16

   

Performance Overview and Holding Summaries

   

18

   

Shareholder Meeting Report

   

24

   

Portfolio of Investments

   

25

   

Statement of Assets and Liabilities

   

44

   

Statement of Operations

   

45

   

Statement of Changes in Net Assets

   

46

   

Statement of Cash Flows

   

48

   

Financial Highlights

   

50

   

Notes to Financial Statements

   

54

   

Additional Fund Information

   

67

   

Glossary of Terms Used in this Report

   

68

   

Reinvest Automatically, Easily and Conveniently

   

69

   

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Chairman's Letter

to Shareholders

Dear Shareholders,

Despite headwinds from slow growth, fiscal and political uncertainty in many countries and some fragile economies around the world, domestic and international equity markets increased significantly in 2013. The emerging markets equity sector was an exception. Other sectors, such as real estate, were flat to down a bit and commodities were notably negative in total return performance. The fixed income market also experienced losses in many sectors.

U.S. equities in particular hit numerous all-time highs during the past year, exceeding prior rising market trends. Europe and Asia struggled with political and financial stresses but Europe's improving GDP in the second half provided hope that the region can exit recession. In Japan, the economic policies advocated by Prime Minister Shinzo Abe became a positive influence on the economy as deflationary pressures declined, while the economy in China started to stabilize due to monetary easing and supply side reforms. On the domestic front, the Federal Reserve stimulus continued throughout the year but discussion of reductions in the stimulus program caused historically low rates to rise and added to concern that interest rates could rise quickly in the near future. This provided challenges for fixed income investors.

The Federal Reserve's decision to slow down its bond buying program beginning in January 2014, and the federal budget compromise over government spending into early 2015 were positive signs that the domestic economy is moving forward. We are beginning to experience an economy that can provide encouraging conditions for GDP growth, job growth and low inflation. Additionally, downward trending unemployment and a continuing rebound in the housing market adds to a positive economic scenario going forward.

However, the current year has experienced a tumultuous start. It is in these particularly volatile markets that professional investment management is most important. Investment teams who have experienced challenging markets in the past understand how their asset class can behave in rapidly changing times. Remaining committed to their investment disciplines during these times is a critical component to achieving long-term success. In fact, many strong investment track records are established during challenging periods because experienced investment teams understand that volatile markets place a premium on companies and investment ideas that can weather the short-term volatility. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.

As always, I encourage you to communicate with your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.

Sincerely,

William J. Schneider
Chairman of the Nuveen Fund Board
March 25, 2014

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Portfolio Managers'

Comments

Nuveen Preferred Income Opportunities Fund (JPC)

Nuveen Preferred and Income Term Fund (JPI)

Nuveen Flexible Investment Income Fund (JPW)

Nuveen Asset Management, LLC (NAM) and NWQ Investment Management Company, LLC (NWQ), affiliates of Nuveen Investments, are sub-advisers for the Nuveen Preferred Income Opportunities Fund (JPC) . NAM and NWQ each manage approximately half of the Fund's investment portfolio. Douglas Baker, CFA and Brenda Langenfeld, CFA, are the portfolio managers for the NAM team and Michael J. Carne, CFA, is the portfolio manager for the NWQ team.

The Nuveen Preferred and Income Term Fund (JPI) features management by NAM. Douglas Baker, CFA, and Brenda Langenfeld, CFA, have served as the Fund's portfolio managers since its inception.

The Nuveen Flexible Investment Income Fund (JPW) features portfolio management by NWQ. Michael J. Carne, CFA, and Susi Budiman, CFA, have served as the Fund's portfolio managers since its inception.

Here they discuss their management strategies and the performance of the Funds for the six-month reporting period ended January 31, 2014.

How did the Funds perform during this six-month reporting period ended January 31, 2014?

The tables in the Performance Overview and Holding Summaries section of this report provides total return performance for the Funds for the six-month, one-year, five-year, ten-year and/or since inception periods ended January 31, 2014. Each Fund's total returns are compared with the performance of a corresponding market index and/or a blended benchmark index. A more detailed account of each Fund's performance is provided later in this report.

What key strategies were used to manage the Funds during this six-month reporting period ended January, 2014? How did these strategies influence performance?

Nuveen Preferred Income Opportunities Fund (JPC)

The table in the Performance Overview and Holding Summaries section of this report provides total return performance for the Fund for the six-month, one-year, five-year and ten-year periods ended January 31, 2014. For the six-month reporting period ended January 31, 2014, the Fund's common shares at net asset value (NAV) underperformed the JPC Comparative Benchmark but outperformed the BofA/Merrill Lynch Preferred Stock Fixed Rate Index.

JPC invests at least 80% of its managed assets in preferred securities and up to 20% opportunistically over the market cycle in other types of securities, primarily income oriented securities such as corporate and taxable municipal debt and common equity. The Fund is managed by two experienced portfolio teams with distinctive, complementary approaches to the preferred market. NAM employs a debt-oriented approach that combines top down relative value analysis of

Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's (S&P), Moody's Investors Service (Moody's), Inc. or Fitch, Inc. (Fitch). Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

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Portfolio Managers' Comments (continued)

industry sectors with fundamental credit analysis. NWQ employs a bottom up, fundamentally driven approach that combines equity research to identify which companies to own with fixed income analysis to identify the most attractive securities of a company to hold. This unique, multi-team approach gives investors access to a broader investment universe with greater diversification potential.

For the portion of the Fund managed by NAM, we employed a credit-based investment approach, using a top-down process to analyze various structural dimensions of the preferred securities market, while also incorporating bottom-up fundamental credit research analysis. We start by identifying the investable universe of $1,000 par and $25 par preferred securities. In an effort to capitalize on the inefficiencies between the different structure of the preferred securities market, we allocate capital between the $25 par exchange listed market and the $1,000 par over-the-counter market. Periods of volatility may drive notably different valuations between these two markets. This dynamic is often related to periodic differences in how retail and institutional markets perceive and price risk. Technical factors may also influence the relative valuations between $25 par exchange listed structures and $1,000 par over-the-counter structures.

We will continue to monitor developments across the domestic and international financial markets, but we do not anticipate materially changing the Fund's relative positioning strategy in the near future. While we feel that valuations between the $25 par retail structures and $1,000 par institutional securities have converged meaningfully during the measurement period, we will likely maintain an overweight to $1,000 par securities as a result of our outlook for gradually higher interest rates. For several quarters, we have been concerned about the potential impact of rising rates on preferred security valuations. As a result, we favor fixed-to-floating rate coupon structures which, all else equal, have less interest rate sensitivity versus traditional fixed-for-life coupon structures. Fixed-to-floating rate securities are more common on the $1,000 par side of the market, and thus the primary reason for our foreseeable overweight to $1,000 par securities relative to the Blended Benchmark Index.

We do anticipate that the population of "new generation" preferred securities, such as contingent capital securities (otherwise known as CoCos, Additional Tier 1 and enhanced capital notes), will become an ever-increasing presence within the preferred/hybrid security marketplace. New international bank capital standards outlined in Basel III require new Tier 1-qualifying securities to contain explicit loss-absorbing features upon the breach of certain predetermined capital thresholds. Some of these features include equity conversion, permanent write-down of principle and temporary write-down of principle with the possibility of future write-up when/if the issuer is able to grow capital levels back above the Tier 1 threshold trigger. It is likely we will participate in some of these offerings when we believe, as is the case with all our investments, that the return profile is greater than the inherent risks.

With respect to the Fund's allocation to lower investment grade and below investment grade securities, we continue to believe that these segments will over the long term provide a more compelling risk-adjusted return profile than higher rated preferred/hybrid securities. Lower rated securities are often overlooked by retail and institutional investors, and especially by investors with investment grade-only mandates. Below investment grade securities typically are not index eligible, limiting the potential investor base and frequently creating opportunities for the Fund within this particular segment of the asset class. While lower rated preferred securities may exhibit periods of higher price volatility, we believe the return potential is disproportionately higher due to inefficiencies inherent in the segment. Preferred/hybrid securities are often rated three to five notches below an issuer's senior unsecured debt rating. Consequently, in most instances, a BB-rated preferred/hybrid security has been issued by an entity with an investment grade senior unsecured credit rating of BBB or higher.

We should note that S&P recently announced its intent to review its methodology for rating preferred/hybrid securities, with the likely result being lower ratings for certain preferred/hybrid structures. This review is in its early stages, with S&P just recently requesting public comments before moving forward. We anticipate that any changes to current ratings will be modest. And given that the review has been made public, we do not anticipate future material impact to valuations of those securities affected by the review.

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As with any fixed income asset class, preferred securities are not immune from the impact of rising interest rates. As mentioned above, we seek to minimize the impact of higher rates on the market value of the portfolio by establishing a position in less interest rate sensitive structures. However, we also feel that rising interest rates are frequently the result of an improving macro-economic landscape, and one where the current domestic economic recovery has likely gained meaningful traction. In this type of environment risk premiums should shrink, reflecting the lower risk profile of the overall market, and as a result credit spreads should narrow. We believe therefore, that credit spread compression in the preferred security asset class should help mitigate the impact of rising interest rates.

In the portion of the Fund managed by NAM, several variables contributed to the relative outperformance including an overweight to fixed-to-floating rate coupon structures, an overweight to the $1000 par side of the market, an overweight to more subordinate Tier 1 structures versus more senior Tier 2 structures, an overweight to lower investment-grade and below investment-grade securities, and finally an overweight to the insurance subsector and corresponding underweight to the bank subsector.

With the $1000 par dominated Barclays USD Capital Securities Index posting a +4.52% return during the period and the $25 par dominated BofA/Merrill Lynch Preferred Stock Fixed Rate Index posting a +0.51% return, one would have accurately expected the Fund's meaningful overweight to $1000 par structures to result in relative outperformance. Our overweight in the $1000 par side of the market was heavily concentrated in fixed-to-floating rate coupon structures, which, all else being equal, have lower interest rate sensitivity and lower duration extension risk compared to preferred/hybrid securities with standard fixed rate coupons. Investor consternation regarding higher interest rates again led to increasing demand for fixed-to-floating rate coupon structures, propelling their valuations higher on a relative basis and helping drive relative outperformance of the $1000 par side of the market.

During the six months ended January 31, 2014, relatively subordinate Tier 1 structures again outperformed more senior lower Tier 2 structures. The Tier 1 sub-index of the Barclays USD Capital Securities Index posted a return of 4.91%, which was modestly above the 4.54% return posted by the Lower Tier 2 sub-index. Historically, credit spreads for more subordinate structures, such as Tier 1 securities, tend to move at a greater magnitude than their more senior counterparts. Therefore, in a period when credit spreads generally narrow, as they did during the most recent six month reporting period, we would expect credit spreads for Tier 1 structures to decrease at a greater rate compared to lower Tier 2 structures. While this was indeed the case, it is likely that the lower duration profile of the Tier 1 sub-index versus the Lower Tier 2 sub-index also contributed to the relative outperformance. As of January 31, 2014, the 5.5 year duration of the Barclays USD Capital Securities Tier 1 Index was approximately 1.25 years shorter than the 6.75 year duration of the Barclays USD Capital Securities Lower Tier 2 Index. The relatively higher proportion of fixed-to-floating rate securities in the Tier 1 sub-index is primarily responsible for the difference in duration between the two sub-indices.

During the period, the Fund maintained an overweight to lower investment grade and below investment grade securities relative to the JPC Blended Index. Similar to the relative behavior between Tier 1 and Tier 2 structures under different market conditions, we generally expect lower investment and below investment grade preferred/hybrid securities to outperform higher rated counterparts in an environment when credit spreads shrink, and vice versa during periods when credit spreads widen. Therefore, with credit spreads generally narrowing during the six months ending January 31, 2014, the Fund's overweight to lower investment grade and below investment grade securities contributed to its outperformance versus the JPC Blended Index. This was clearly evidenced by the relative performance of the Barclays USD Capital Securities Lower Tier 2 BBB-rated sub-Index which posted a superior 4.96% return for the fourth quarter, modestly above the Lower Tier 2 A-rated or Better return of 4.06%.

As with the previous several quarters, the Fund again had a meaningful overweight to the insurance subsector of the preferred/hybrid market, and corresponding underweight to the bank subsector. This positioning was intended to capitalize on what is expected to be light or negligible new issue flow out of the insurance sector over the next several quarters. The insurance sector is generally over-capitalized and not in need of additional capital. As one might expect then,

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Portfolio Managers' Comments (continued)

we observed little new issue flow out of the insurance sector while new issue flow out of the bank sector was fairly robust during the reporting period. This relative supply/demand advantage of the insurance subsector was enough to overcome its longer average duration profile relative to the bank subsector. Indeed, the insurance subsector posted a return of +4.90%, above the bank subsector's +4.67% return for the same six-month reporting period.

For the portion of the Fund managed by NWQ, our investment strategy is to seek to provide high current income and high risk-adjusted return by selecting investments at the optimal point of a company's capital structure, where we find the combination of risk and return potential offer the greatest opportunity.

We invest in securities from across the capital structure of companies that possess favorable investment characteristics using a bottom-up, fundamentals-based approach. These characteristics include attractive valuation, a measure of down-side protection and catalysts expected to unlock value. Once an undervalued security has been identified, the issuing company is then analyzed using a fundamental bottom-up approach in order to assess the intrinsic value of the company as well as its long-range prospects. Then the strategy's portfolio management team performs a comprehensive analysis of all available investment choices within the company's capital structure to decide the optimal investment for the portfolio that would offer the greatest expected return for a given level of risk.

We believe that by understanding the company from a fundamental basis, through our experienced research team, we can more effectively evaluate the risk and reward characteristics of the company's debt and equity securities, and then select the optimal point for investment in the company's capital structure.

The preferred sleeve managed by NWQ also positively contributed to the Fund's performance. Within NWQ's portion of the Fund, R.R. Donnelley & Sons (RRD) 8.25% 03/15/2019 Senior Notes contributed positively to performance. The notes appreciated in price due to both strong performance in the Company's stock price as well as a supportive market for high yield securities. RRD provides solutions that include commercial printing, direct mail, financial printing, print fulfillment, and content and database management. RRD has a market capitalization of approximately $3.2 billion.

Swiss Re Capital 6.854% Perpetual Junior Subordinated Notes contributed positively to performance as well. The notes benefited from having a low effective duration due to their fixed to float feature as well as the outperformance of foreign capital securities generally. The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients.

Lastly, the common stock of TCP Capital Corporation (TCPC) also contributed to the Fund's outperformance. TCPC is a specialty finance company focused on performing credit lending to middle-market companies with established market positions. TCPC focuses on companies with differentiated products and strong regional or national operations and where it has deep industry knowledge and expertise. TCPC's investment objective is to seek to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. TCPC is a publicly-traded business development company, or BDC, regulated under the Investment Company Act of 1940 and is externally managed by its advisor, Tennenbaum Capital Partners, LLC.

Several positions detracted from performance, including BB&T Corporation. BB&T Corporation is one of the largest financial services holding companies in the U.S. Based in Winston-Salem, N.C., the company operates approximately 1,824 financial centers in 12 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. Third-quarter earnings fell 43% as net interest margin, a key measure of lending profitability, slipped. The results were also impacted by a $235 million tax adjustment. Excluding this adjustment, per-share earnings improved from a year earlier, which the company said was driven by an improvement in credit quality to the best levels in nearly six years. U.S. banks are sensitive to interest-rate changes, since any shift can affect how much it costs them to borrow money and how much they can charge to lend that

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money to customers. Regional banks, which rely more heavily on lending income, have been pressured recently by low interest rates.

Also detracting from performance was Liberty Mutual, a diversified global insurer and third largest property and casualty insurer in the U.S. The company reported net income of a $1.743 billion loss for the twelve months ended December 31, 2013, which negatively impacted the holding's performance.

Lastly, Senior Housing Properties (SNH) Trust, a real estate investment trust (REIT), owns senior living properties, which are leased to unaffiliated tenants. The Trust currently owns independent living and assisted living communities, continuing care retirement communities, nursing homes, wellness centers and medical office, clinic and biotech laboratory buildings located throughout the U.S. SNH suffered along with the health care REIT sector, as the sector historically underperformed in rising interest rate environments. Furthermore, the lackluster earnings growth and worries of further downward estimate revisions have kept a lid to SNH's senior debt performance during the reporting period. We still believe SNH's senior debt remains attractive given that SNH's leverage metrics remain strong and liquidity position healthy.

During the period the Fund also wrote covered call options on common stocks to hedge equity exposure. These options had a negligible impact on performance and expired prior to the close of this reporting period.

Nuveen Preferred and Income Term Fund (JPI)

The table in the Performance Overview and Holding Summaries section of this report provides total return performance for the Fund for the six-month, one-year and since inception periods ended January 31, 2014. For the six-month reporting period ended January 31, 2014, the Fund's shares at net asset value (NAV) outperformed the BofA/Merrill Lynch Preferred Stock Fixed Rate Index and its JPI Blended Benchmark Index.

Several variables contributed to the relative outperformance including an overweight to fixed-to-floating rate coupon structures, an overweight to the $1000 par side of the market, an overweight to more subordinate Tier 1 structures versus more senior Tier 2 structures, an overweight to lower investment grade and below investment grade securities, and finally an overweight to the insurance subsector and corresponding underweight to the bank subsector.

With the $1000 par dominated Barclays USD Capital Securities Index posting a +4.52% return during the period and the $25 par dominated BofA/Merrill Lynch U.S. Preferred Stock Fixed Rate Index posting a +0.51% return, one would have accurately expected the Fund's meaningful overweight to $1000 par structures to result in relative outperformance. Our overweight in the $1000 par side of the market was heavily concentrated in fixed-to-floating rate coupon structures, which, all else being equal, have lower interest rate sensitivity and lower duration extension risk compared to preferred/hybrid securities with standard fixed rate coupons. Investor consternation regarding higher interest rates again led to increasing demand for fixed-to-floating rate coupon structures, propelling their valuations higher on a relative basis and helping drive relative outperformance of the $1000 par side of the market.

During the six-month reporting period, relatively subordinate Tier 1 structures again outperformed more senior lower Tier 2 structures. The Tier 1 sub-index of the Barclays USD Capital Securities Index posted a return of 4.91%, which was modestly above the 4.54% return posted by the Lower Tier 2 sub-index. Historically, credit spreads for more subordinate structures, such as Tier 1 securities, tend to move at a greater magnitude than their more senior counterparts. Therefore, in a period when credit spreads generally narrow, as they did during the most recent six-month reporting period, we would expect credit spreads for Tier 1 structures to decrease at a greater rate compared to lower Tier 2 structures. While this was indeed the case, it is likely that the lower duration profile of the Tier 1 sub-index versus the Lower Tier 2 sub-index also contributed to the relative outperformance. As of January 31, 2014, the 5.5 year duration of the Barclays USD Capital Securities Tier 1 Index was approximately 1.25 years shorter than the 6.75 year duration of the Barclays USD Capital Securities Lower Tier 2 Index. The relatively higher proportion of fixed-to-floating rate securities in the Tier 1 sub-index is primarily responsible for the difference in duration between the two sub-indices.

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Portfolio Managers' Comments (continued)

During the reporting period, the Fund maintained an overweight to lower investment grade and below investment grade securities relative to the JPI Blended Benchmark Index. Similar to the relative behavior between Tier 1 and Tier 2 structures under different market conditions, we generally expect lower investment and below investment grade preferred/hybrid securities to outperform higher rated counterparts in an environment when credit spreads shrink, and vice versa during periods when credit spreads widen. Therefore, with credit spreads generally narrowing during reporting period, the Fund's overweight to lower investment grade and below investment grade securities contributed to its outperformance versus the JPI Blended Benchmark Index. This was clearly evidenced by the relative performance of the Barclays USD Capital Securities Lower Tier 2 BBB-rated sub-Index which posted a superior 4.96% return for the fourth quarter, modestly above the Lower Tier 2 A-rated or Better return of 4.06%.

As with the previous several quarters, the Fund again had a meaningful overweight to the insurance subsector of the preferred/hybrid market, and corresponding underweight to the bank subsector. This positioning was intended to capitalize on what is expected to be light or negligible new issue flow out of the insurance sector over the next several quarters. The insurance sector is generally over capitalized and not in need of additional capital. As one might expect then, we observed little new issue flow out of the insurance sector while new issue flow out of the bank sector was fairly robust during the reporting period. This relative supply/demand advantage of the insurance subsector was enough to overcome its longer average duration profile relative to the bank subsector. The insurance subsector posted a return of +4.90%, above the bank subsectors +4.67% return for the same six-month reporting period.

Nuveen Flexible Investment Income Fund (JPW)

The table in the Performance Overview and Holding Summaries section of this report provides total return performance for the Fund for the six-month, one-year and since inception periods ended January 31, 2014. For the six-month reporting period ended January 31, 2014, the Fund's total return on common share net asset value (NAV) outperformed the BofA/Merrill Lynch Preferred Stock Fixed Rate Index.

JPW invests at least 80% of its managed assets in income producing preferred, debt and equity securities issued by companies located anywhere in the world. Up to 50% of its managed assets may be in securities issued by non-U.S. companies, though all (100%) Fund assets will be in U.S. dollar-denominated securities. Up to 40% of its managed assets may consist of equity securities, not including preferred securities. Up to 75% of investments in debt and preferred securities that are of a type customarily rated by a credit rating agency, may be rated below investment grade, or if unrated, will be judged to be of comparable quality by NWQ. The Fund will invest at least 25% in securities issued by financial services companies.

The Fund's investment objectives are to provide high current income and, secondarily, capital appreciation. The Fund seeks to achieve its investment objectives by investing in undervalued companies and securities with attractive investment characteristics. The Fund's portfolio is actively managed and has the flexibility to invest across the capital structure in any type of debt, preferred or equity securities offered by a particular company. NWQ employs a fundamental, bottom-up investment process that first seeks to identify undervalued securities offering favorable risk/reward potential and downside protection. The portfolio management team then evaluates all available investment choices within a selected company's capital structure to determine the portfolio investment that may offer the most favorable risk-adjusted return potential. The Fund's portfolio is constructed with an emphasis on maintaining a sustainable level of income and downside protection. The Fund's investment mix of debt, preferred and equity securities may change over time based on the portfolio management team's assessment of individual investment opportunities.

Much of the JPW's relative outperformance may be attributed to stock selection and overweight within the industrials, financial and equity sectors. Our underweight in the banking sector detracted for the reporting period. We also held a larger cash position than the Index as we continue to invest-up the Fund, which slightly detracted from performance.

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Several positions contributed to performance including the common stock of Wells Fargo & Company. Wells Fargo & Company is an American multi-national banking and financial services holding company with operations around the world and the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo continues to execute extremely well despite the softness in the mortgage market. Investors are beginning to view the bank as a multiple product business, including capital markets and wealth management, not just mortgages.

Also contributing to performance was AdCare Health Systems, Inc., which manages, develops and acquires nursing homes, assisted living facilities, independent living facilities, dementia/alzheimer's units, sub-acute units and retirement communities. Performance was attributed to the fact that we were able to buy very cheap preferred shares so they outperformed.

Lastly, the common stock of TCP Capital Corporation (TCPC) also contributed to the Fund's outperformance. TCPC is a specialty finance company focused on performing credit lending to middle-market companies with established market positions. TCPC focuses on companies with differentiated products and strong regional or national operations and where it has deep industry knowledge and expertise. Their investment objective is to seek to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. TCPC has been expanding its portfolio of investments and is expected to soon gain an additional source of funding from the U.S. Small Business Administration (SBA).

Several positions detracted from performance including securities issued by Metro AG, the Federal Agricultural Mortgage Corporation and CommonWealth REIT.

Metro AG, a German global diversified retailer, has the largest market share in Germany and is the fifth-largest retailer in the world measured by revenues. The company's third quarter sales were weak and earnings per share decreased, which detracted from performance and negatively impacted the Fund.

The Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, was created by Congress to establish a secondary market for agricultural mortgage and rural utilities loans to increase the availability of long-term credit at stable interest rates to segments of rural America. During the third quarter, core earnings decreased primarily due to lower net effective spread, which was driven by repayments of existing higher margin farm & ranch loans, combined with the effect of refinancing existing floating rate assets at higher costs.

Lastly, CommonWealth REIT detracted from performance. CommonWealth REIT is a real estate investment trust that primarily owns office properties located throughout the U.S. In April 2013, the company rejected a $2.9 billion buyout offer by shareholders Corvex Management LP and Related Cos. CommonWealth REIT has been trying to avoid a hostile takeover which detracted from performance and negatively impacted the Fund.

During the reporting period, the Federal Reserve (Fed) finally ended tapering speculation at its scheduled December meeting when it announced a reduction in the pace of its asset purchases from the then $85 billion per month to $75 billion per month beginning in January 2014. The Federal Open Market Committee (FOMC) recently announced another $10 billion reduction at the January meeting. The Fed also pledged to keep short-term interest rates near zero until the unemployment rate is well below 6.5%. The impact on Treasury yields after the December announcement was more or less muted, in part because of the Fed's simultaneous commitment to low short-term rates and also because the Treasury market had "priced in" the taper last summer when the 10-year Treasury note yield climbed from 1.63% to 3.00%.

Rising interest rates have taken their toll on the fixed income markets during the reporting period. U.S. Treasury note yields rose significantly since May 2013 and continued to climb, though with less magnitude, during the fourth quarter. The summer's rise in rates accompanied with a spread widening in credit was unusual in a rising rate environment. This spread widening reversed course in the fourth quarter, particularly after the Fed's taper announcement along with its commitment to low interest rates at its December meeting. Most of the Fund's holdings do exhibit a measure of sensitivity to changes in

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Portfolio Managers' Comments (continued)

long-term interest rates. For example insurance holdings would tend to do better when rates rise, while REITs would do worse. Spread changes may also affect performance, if they widen, then the Fund may lag the Treasury market's performance.

Generally, financial regulation was not a significant factor in Fund's performance. While financial regulation may reduce market liquidity by decreasing dealer market making capacity and increasing regulatory capital requirements at holding companies, it will likely lead to an increase in U.S. bank supply of preferred stocks and subordinated notes over the next few years.

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Fund

Leverage

IMPACT OF THE FUNDS' LEVERAGE STRATEGY ON PERFORMANCE

One important factor impacting the return of the Funds relative to their benchmarks was the Funds' use of leverage through the use of bank borrowings. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share NAV and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities held by a Fund generally are rising. The Fund's use of leverage had a positive impact on performance during this reporting period.

JPC and JPI continued to use swap contracts to partially fix the interest cost of leverage, which as mentioned previously, the Funds' use through the use of bank borrowings. The swap contracts' impact on the Funds performance was positive during this reporting period.

As of January 31, 2014, the Funds' percentages of leverage are shown in the accompanying table.

 

JPC

 

JPI

 

JPW

 

Effective Leverage*

   

29.22

%

   

28.89

%

   

28.54

%

 

Regulatory Leverage*

   

29.22

%

   

28.89

%

   

28.54

%

 

*  Effective leverage is the Fund's effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund's portfolio that increase the Fund's investment exposure. Regulatory leverage consists of preferred shares issued or borrowings of the Fund. Both of these are part of the Fund's capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.

THE FUNDS' REGULATORY LEVERAGE

Bank Borrowings

As discussed previously, the Funds employ regulatory leverage through the use of bank borrowings. As of January 31, 2014, the Funds have outstanding bank borrowings as shown in the accompanying table.

 

JPC

 

JPI

 

JPW

 

Bank Borrowings

 

$

402,500,000

   

$

225,000,000

   

$

27,500,000

   

Refer to Notes to Financial Statements, Note 8 – Borrowing Arrangements for further details.

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13



Common Share

Information

THE FUNDS' DISTRIBUTION INFORMATION

The following information regarding the Funds' distributions is current as of January 31, 2014. Each Fund's distribution levels may vary over time based on each Fund's investment activity and portfolio investment value changes.

During the current reporting period, each Fund's monthly distributions to common shareholders were as shown in the accompanying table.

 

Per Common Share Amounts

 

Ex-Distribution Date

 

JPC

 

JPI

 

JPW

 

August 2013

 

$

0.0633

   

$

0.1690

   

$

0.1260

   

September

   

0.0633

     

0.1690

     

0.1260

   

October

   

0.0633

     

0.1690

     

0.1260

   

November

   

0.0633

     

0.1690

     

0.1260

   

December

   

0.0633

     

0.1690

     

0.1260

   

January 2014

   

0.0633

     

0.1690

     

0.1260

   

Long-Term Capital Gain*

   

   

$

0.0004

     

   

Short-Term Capital Gain*

   

   

$

0.4879

     

   

Current Distribution Rate**

   

8.45

%

   

8.99

%

   

9.12

%

 

*  Distribution paid in December 2013.

**  Current distribution rate is based on the Fund's current annualized monthly distribution divided by the Fund's current market price. The Fund's monthly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the fiscal year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.

During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of January 31, 2014, the Funds had a positive UNII balances, based upon our best estimate, for tax purposes and negative UNII balances for financial reporting purposes.

JPW'S MANAGED DISTRIBUTION POLICY

JPW's regular monthly distributions are currently being sourced entirely from net investment income. The Fund's current portfolio is predominantly invested in income producing securities the income from which is expected to be the source of distributions. For periods when the Fund is sourcing its monthly distributions solely from net investment income, the Fund will seek to distribute substantially all of its net investment income over time. There are no assurances given to how long the Fund will source distributions entirely from net investment income.

Market conditions may change, causing the portfolio management team at some future time to focus the mix of portfolio investments less to income-oriented securities. This may cause the regular monthly distributions to be sourced from something other than net investment income. JPW has adopted a managed distribution policy permitting it to source its regular monthly distributions from not only net investment income, but also from realized capital gains and/or return of

Nuveen Investments
14



capital. If a managed distribution policy is employed, the Fund will seek to establish a relatively stable common share distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. Actual common share returns will differ from projected long-term returns, and the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund NAV. If the Fund changes to a managed distribution, a press release will be issued describing such change and this change will also be described in subsequent shareholder reports. Additionally, any distribution payment that is sourced from something other than net investment income, there will be a notice issued quantifying the sources of such distribution.

COMMON SHARE REPURCHASES

During November 2013, the Nuveen Funds' Board of Directors/Trustees reauthorized (authorized for JPW) open-market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding common shares.

As of January 31, 2014, and since the inception of the Funds' repurchase programs, the Funds have cumulatively repurchased and retired their common shares as shown in the accompanying table.

 

JPC

 

JPI

 

JPW

 

Common Shares Cumulatively Repurchased and Retired

   

2,724,287

     

     

   

Common Shares Authorized for Repurchase

   

9,700,000

     

2,275,000

     

370,000

   

During the current reporting period, the Funds did not repurchase any of their outstanding common shares.

OTHER COMMON SHARE INFORMATION

As of January 31, 2014, and during the current reporting period, the Funds' common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.

 

JPC

 

JPI

 

JPW

 

Common Share NAV

 

$

10.05

   

$

24.34

   

$

18.57

   

Common Share Pirce

 

$

8.99

   

$

22.55

   

$

16.58

   

Premium/(Discount) to NAV

   

(10.55

)%

   

(7.35

)%

   

(10.72

)%

 

6-Month Average Premium/(Discount) to NAV

   

(11.56

)%

   

(8.66

)%

   

(8.83

)%

 

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15



Risk

Considerations

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:

Investment, Market and Price Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in common shares represents an indirect investment in the corporate securities owned by the Funds, which generally trade in the over-the-counter markets. Shares of closed-end investment companies like the Funds frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.

Leverage Risk. A Fund's use of leverage creates the possibility of higher volatility for a Fund's per share NAV, market price and distributions. Leverage risk can be introduced through regulatory leverage (issuing preferred shares or debt borrowings at the Fund level) or through certain derivative investments held in a Fund's portfolio. Leverage typically magnifies the total return of a Fund's portfolio, whether that return is positive or negative. The use of leverage creates an opportunity for increased common share net income, but there is no assurance that a Fund's leveraging strategy will be successful.

Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.

Common Stock Risk. Common stock returns often have experienced significant volatility.

Issuer Credit Risk. This is the risk that a security in a Fund's portfolio will fail to make dividend or interest payments when due.

Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.

Reinvestment Risk. If market interest rates decline, income earned from a Fund's portfolio may be reinvested at rates below that of the original investment that generated the income.

Preferred Stock Risk. Preferred stocks are subordinated to bonds and other debt instruments in a company's capital structure, and therefore are subject to greater credit risk.

Convertible Securities Risk. Convertible securities generally offer lower interest or dividend yields than non-convertible fixed-income securities of similar credit quality.

Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing the Fund to reinvest in lower-yielding securities.

Non-U.S. Securities Risk. Investments in non-U.S securities involve special risks not typically associated with domestic investments including currency risk and adverse political, social and economic developments. These risks often are magnified in emerging markets.

Below-Investment Grade Securities Risk: Investments in securities below investment grade quality are predominantly speculative and subject to greater volatility and risk of default.

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16



Derivatives Strategy Risk: Derivative securities, such as calls, puts, warrants, swaps and forwards, carry risks different from, and possibly greater than, the risks associated with the underlying investments.

Financial Sector Risk: Because the Funds invest a substantial portion of their assets (at least 25%) in securities issued by financial services companies, concentration in this sector may present more risks than if the Funds were more diversely invested in numerous sectors of the economy.

Unrated Investment Risk: In determining whether an unrated security is an appropriate investment for the Fund, the portfolio manager will consider information from industry sources, as well as its own quantitative and qualitative analysis, in making such a determination. However such a determination by the portfolio manager is not the equivalent of a rating by a rating agency.

Counterparty Risk: To the extent that a Fund's derivative investments are purchased or sold in over-the-counter transactions, the Fund will be exposed to the risk that counterparties to these transactions will be unable to meet their obligations.

Interest Rate Swaps Risk: The risk that yields will move in the direction opposite to the direction anticipated by a Fund, which would cause a Fund to make payments to its counterparty in the transaction that could adversely affect the Fund's performance.

Nuveen Investments
17




JPC

Nuveen Preferred Income Opportunities Fund

Performance Overview and Holding Summaries as of January 31, 2014

Average Annual Total Returns as of January 31, 2014

 

Cumulative

 

Average Annual

 

 

6-Month

 

1-Year

 

5-Year

 

10-Year

 

JPC at Common Share NAV

   

1.75

%

   

3.27

%

   

22.36

%

   

4.22

%

 

JPC at Common Share Price

   

0.35

%

   

(1.88

)%

   

25.33

%

   

4.18

%

 

JPC Blended Index (Comparative Benchmark)

   

5.39

%

   

9.51

%

   

16.75

%

   

6.21

%

 

BofA/Merrill Lynch Preferred Stock Fixed Rate Index

   

0.51

%

   

(1.68

)%

   

12.89

%

   

1.92

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
18



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Fund Allocation

(% of net assets)

$25 Par (or similar) Retail Preferred

   

68.2

%

 
$1,000 Par (or similar) Institutional
Preferred
   

60.8

%

 

Common Stocks

   

4.3

%

 

Corporate Bonds

   

4.0

%

 

Short-Term Investments

   

2.3

%

 

Investment Companies

   

0.7

%

 

Convertible Preferred Securities

   

0.1

%

 

Borrowings

   

(41.3

)%

 

Other Assets Less Liabilities

   

0.9

%

 

Portfolio Composition1

(% of total investments)

Insurance

   

27.7

%

 

Commercial Banks

   

22.0

%

 

Diversified Financial Services

   

14.5

%

 

Real Estate

   

13.9

%

 

Capital Markets

   

6.4

%

 

Short-Term Investments

   

1.7

%

 

Other Industries

   

13.8

%

 

Country Allocation1

(% of total investments)

United States

   

77.1

%

 

United Kingdom

   

5.6

%

 

Netherlands

   

5.1

%

 

Spain

   

2.8

%

 

Switzerland

   

2.5

%

 

Other Countries

   

6.9

%

 

Top Five Issuers1

(% of total long-term investments)

General Electric Company

   

3.5

%

 

JPMorgan Chase & Company

   

3.3

%

 

Wells Fargo & Company

   

2.8

%

 

Citigroup Inc

   

2.4

%

 

MetLife Inc

   

2.2

%

 

Credit Quality1

(% of total investments)

AAA/U.S. Guaranteed2

   

%

 

AA

   

3.5

%

 

A

   

8.6

%

 

BBB

   

47.5

%

 

BB or Lower

   

21.9

%

 

N/R (not rated)

   

6.6

%

 

N/A (not applicable)

   

11.9

%

 

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.

1  Excluding investments in derivatives.

2  Rounds to less than 0.1%.

3  Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Nuveen Investments
19



JPI

Nuveen Preferred and Income Term Fund

Performance Overview and Holding Summaries as of January 31, 2014

Average Annual Total Returns as of January 31, 2014

 

Cumulative

 

Average Annual

 

 

6-Month

  1-Year   Since
Inception1
 

JPI at Common Share NAV

   

3.21

%

   

5.73

%

   

10.92

%

 

JPI at Common Share Price

   

1.80

%

   

0.08

%

   

2.78

%

 

BofA/Merrill Lynch Preferred Stock Fixed Rate Index

   

0.51

%

   

(1.68

)%

   

1.39

%

 

JPI Blended Benchmark Index

   

1.91

%

   

0.21

%

   

3.43

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
20



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Fund Allocation

(% of net assets)

$1,000 Par (or similar) Institutional
Preferred
   

97.7

%

 

$25 Par (or similar) Retail Preferred

   

39.6

%

 

Short-Term Investments

   

1.2

%

 

Corporate Bonds

   

1.2

%

 

Borrowings

   

(40.6

)%

 

Other Assets Less Liabilities

   

0.9

%

 

Portfolio Composition2

(% of total investments)

Insurance

   

37.2

%

 

Commercial Banks

   

25.3

%

 

Diversified Financial Services

   

20.8

%

 

U.S. Agency

   

8.1

%

 

Real Estate

   

2.4

%

 

Capital Markets

   

2.0

%

 

Short-Term Investments

   

0.9

%

 

Other Industries

   

3.3

%

 

Country Allocation2

(% of total investments)

United States

   

63.0

%

 

United Kingdom

   

11.6

%

 

Netherlands

   

8.9

%

 

Spain

   

5.1

%

 

France

   

4.8

%

 

Other Countries

   

6.6

%

 

Top Five Issuers2

(% of total long-term investments)

Rabobank Nederland

   

5.0

%

 

JPMorgan Chase & Company

   

5.0

%

 

Wells Fargo & Company

   

5.0

%

 

Catlin Group

   

4.4

%

 

General Electric Company

   

4.0

%

 

Credit Quality2

(% of total investments)

AA

   

4.0

%

 

A

   

13.9

%

 

BBB

   

52.6

%

 

BB or Lower

   

26.7

%

 

N/R (not rated)

   

1.7

%

 

N/A (not applicable)

   

1.1

%

 

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.

1  Since inception returns are from 7/26/12.

2  Excluding investments in derivatives.

3  Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Nuveen Investments
21



JPW

Nuveen Flexible Investment Income Fund

Performance Overview and Holding Summaries as of January 31, 2014

Cumulative Total Returns as of January 31, 2014

 

Cumulative

 

  6-Month   Since
Inception1
 

JPW at Common Share NAV

   

2.37

%

   

1.35

%

 

JPW at Common Share Price

   

(12.35

)%

   

(13.22

)%

 

BofA/Merrill Lynch Preferred Stock Fixed Rate Index

   

0.51

%

   

1.53

%

 

Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Comparative index return information is provided for the Fund's shares at NAV only. Indexes are not available for direct investment.

Common Share Price Performance — Weekly Closing Price

Nuveen Investments
22



This data relates to the securities held in the Fund's portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.

Fund Allocation

(% of net assets)

$25 Par (or similar) Retail Preferred

   

99.4

%

 

Common Stocks

   

18.2

%

 

Corporate Bonds

   

12.0

%

 
$1,000 Par (or similar) Institutional
Preferred
   

8.2

%

 

Investment Companies

   

2.1

%

 

Short-Term Investments

   

1.9

%

 

Convertible Preferred Securities

   

0.4

%

 

Borrowings

   

(40.0

)%

 

Other Assets Less Liabilities

   

(2.2

)%

 

Top Five Issuers

(% of total long-term investments)

NuStar Logistics

   

1.9

%

 

Frontier Communications Corporation

   

1.7

%

 

Maiden Holdings LTD

   

1.5

%

 

CenturyLink

   

1.5

%

 

JPMorgan Chase & Company

   

1.4

%  

Portfolio Composition

(% of total investments)

Real Estate

   

25.1

%

 

Capital Markets

   

13.9

%

 

Insurance

   

12.9

%

 

Commercial Banks

   

10.1

%

 

Oil, Gas & Consumable Fuels

   

8.5

%

 

Diversified Financial Services

   

7.3

%

 
Diversified Telecommunication
Services
   

3.2

%

 

Short-Term Investments

   

1.3

%

 

Other Industries

   

17.7

%

 

Credit Quality

(% of total investments)

AAA/U.S. Guaranteed

   

0.5

%

 

A

   

2.2

%

 

BBB

   

26.1

%

 

BB or Lower

   

22.3

%

 

N/R (not rated)

   

15.5

%

 

N/A (not applicable)

   

33.4

%

 

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.

1  Since inception returns are from 6/25/13.

2  Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor's Group, Moody's Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.

Nuveen Investments
23




Shareholder

Meeting Report

The annual meeting of shareholders was held in the offices of Nuveen Investments on November 26, 2013; at this meeting the shareholders were asked to vote on the election of Board Members.

   

JPI

 
    Common
shares
 

Approval of the Board Members was reached as follows:

 

William C. Hunter

 

For

   

18,523,744

   

Withhold

   

289,536

   

Total

   

18,813,280

   

Judith M. Stockdale

 

For

   

18,536,096

   

Withhold

   

277,184

   

Total

   

18,813,280

   

Carole E. Stone

 

For

   

18,532,509

   

Withhold

   

280,771

   

Total

   

18,813,280

   

Virginia L. Stringer

 

For

   

18,537,761

   

Withhold

   

275,519

   

Total

   

18,813,280

   

Nuveen Investments
24




JPC

Nuveen Preferred Income Opportunities Fund

Portfolio of Investments  January 31, 2014 (Unaudited)

Shares  

Description (1)

             

Value

 
   

LONG-TERM INVESTMENTS – 138.1% (98.3% of Total Investments)

 
   

COMMON STOCKS – 4.3% (2.8% of Total Investments)

 
   

Automobiles – 0.2%

 
  120,300    

Ford Motor Company

                         

$

1,799,688

   
   

Capital Markets – 1.4%

 
  295,500    

Ares Capital Corporation

                           

5,233,305

   
  26,874    

Arlington Asset Investment Corporation

                           

705,443

   
  50,400    

FBR Capital Markets Corporation, (2)

                           

1,222,704

   
  234,846    

Medley Capital Corporation

                           

3,238,526

   
  218,912    

TCP Capital Corporation

                           

3,791,556

   
    Total Capital Markets    

14,191,534

   
   

Commercial Banks – 0.2%

 
  41,200    

Wells Fargo & Company

                           

1,868,008

   
   

Communications Equipment – 0.2%

 
  151,700    

Ericsson LM Telefonaktiebolaget

                           

1,864,393

   
   

Diversified Financial Services – 0.2%

 
  34,600    

Citigroup Inc.

                           

1,641,078

   
   

Diversified Telecommunication Services – 0.2%

 
  59,400    

CenturyLink Inc.

                           

1,714,284

   
   

Energy Equipment & Services – 0.2%

 
  33,400    

Baker Hughes Incorporated

                           

1,891,776

   
   

Food & Staples Retailing – 0.1%

 
  191,100    

Metro AG, (4)

                           

1,576,651

   
   

Food Products – 0.2%

 
  239,500    

Orkla ASA

                           

1,877,680

   
   

Hotels, Restaurants & Leisure – 0.2%

 
  57,600    

Norwegian Cruise Line Holdings Limited, (2)

                           

2,017,152

   
   

Insurance – 0.2%

 
  36,600    

American International Group, Inc.

                           

1,755,336

   
   

Life Sciences Tools & Services – 0.2%

 
  15,100    

Bio-Rad Laboratories Inc., (2)

                           

1,919,512

   
   

Machinery – 0.2%

 
  44,600    

Woodward Governor Company

                           

1,911,110

   
   

Oil, Gas & Consumable Fuels – 0.2%

 
  31,500    

Tesoro Corporation

                           

1,622,880

   
   

Pharmaceuticals – 0.2%

 
  46,100    

Teva Pharmaceutical Industries Limited, Sponsored ADR

                           

2,057,443

   
   

Semiconductors & Equipment – 0.2%

 
  75,353    

Microsemi Corporation, (2)

                           

1,766,274

   
   

Total Common Stocks (cost $40,366,087)

                           

41,474,799

   

Nuveen Investments
25



JPC  Nuveen Preferred Income Opportunities Fund
Portfolio of Investments
(continued)  January 31, 2014 (Unaudited)

Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
   

CONVERTIBLE PREFERRED SECURITIES – 0.1% (0.1% of Total Investments)

 
   

Real Estate – 0.1%

 
  54,400    

American Homes 4 Rent, (2)

   

5.000

%

         

N/R

 

$

1,335,520

   
    Total Convertible Preferred Securities (cost $1,359,305)    

1,335,520

   
Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
   

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 68.2% (48.8% of Total Investments)

 
   

Capital Markets – 6.6%

 
  2,494    

Affiliated Managers Group Inc.

   

6.375

%

         

BBB

 

$

59,257

   
  28,978    

Allied Capital Corporation

   

6.875

%

         

BBB

   

697,790

   
  100,440    

Ameriprise Financial, Inc.

   

7.750

%

         

A

   

2,596,374

   
  75,200    

Apollo Investment Corporation

   

6.875

%

         

BBB

   

1,719,824

   
  167,775    

Apollo Investment Corporation

   

6.625

%

         

BBB

   

3,774,938

   
  255,854    

Ares Capital Corporation

   

7.000

%

         

BBB

   

6,652,204

   
  425,880    

Deutsche Bank Capital Funding Trust II

   

6.550

%

         

BBB–

   

10,736,435

   
  150,000    

Fifth Street Finance Corporation

   

6.125

%

         

BBB–

   

3,390,000

   
  60,000    

Gladstone Investment Corporation

   

7.125

%

         

N/R

   

1,573,200

   
  23,026    

Goldman Sachs Group Inc., Series 2004-4 (CORTS)

   

6.000

%

         

Baa3

   

535,585

   
  49,600    

Goldman Sachs Group Inc., Series GSC-3 (PPLUS)

   

6.000

%

         

Baa3

   

1,165,104

   
  220,800    

Goldman Sachs Group, Inc.

   

5.500

%

         

BB+

   

5,104,896

   
  149,500    

Hercules Technology Growth Capital Incorporated

   

7.000

%

         

N/R

   

3,852,765

   
  118,000    

Hercules Technology Growth Capital Incorporated

   

7.000

%

         

N/A

   

3,037,320

   
  12,600    

JMP Group Inc., (12)

   

7.250

%

         

N/R

   

315,000

   
  44,400    

Ladenburg Thalmann Financial Services Inc.

   

8.000

%

         

N/R

   

1,021,200

   
  42,260    

Medley Capital Corporation

   

7.125

%

         

N/A

   

1,097,915

   
  6,400    

Morgan Stanley

   

6.875

%

         

BB+

   

162,688

   
  123,900    

MVC Capital Incorporated

   

7.250

%

         

N/A

   

3,133,431

   
  68,786    

Oxford Lane Capital Corporation

   

7.500

%

         

N/R

   

1,605,465

   
  4,000    

Saratoga Investment Corporation

   

7.500

%

         

N/R

   

100,040

   
  280,275    

Solar Capital Limited

   

6.750

%

         

BBB–

   

6,067,954

   
  89,226    

Triangle Capital Corporation

   

7.000

%

         

N/R

   

2,290,431

   
  139,350    

Triangle Capital Corporation

   

6.375

%

         

N/A

   

3,400,140

   
    Total Capital Markets    

64,089,956

   
   

Commercial Banks – 11.1%

 
  203,272    

BB&T Corporation

   

5.625

%

         

BBB

   

4,390,675

   
  203,600    

City National Corporation

   

6.750

%

         

BBB–

   

5,385,220

   
  145,103    

Fifth Third Bancorp., (2)

   

6.625

%

         

BBB–

   

3,700,127

   
  299,850    

First Naigara Finance Group

   

8.625

%

         

BB+

   

8,584,706

   
  238,474    

First Republic Bank of San Francisco

   

6.200

%

         

BBB

   

5,601,754

   
  123,900    

FNB Corporation

   

7.250

%

         

Ba3

   

3,259,809

   
  289,700    

HSBC Holdings PLC

   

8.000

%

         

BBB+

   

7,784,239

   
  12,750    

HSBC Holdings PLC

   

6.200

%

         

BBB+

   

318,495

   
  662,300    

Morgan Stanley

   

7.125

%

         

BB+

   

17,259,538

   
  595,894    

PNC Financial Services, (5)

   

6.125

%

         

BBB

   

15,183,379

   
  225,900    

Private Bancorp Incorporated

   

7.125

%

         

N/A

   

5,688,162

   
  79,430    

Regions Financial Corporation

   

6.375

%

         

BB

   

1,851,513

   
  133,300    

TCF Financial Corporation

   

7.500

%

         

BB

   

3,400,483

   
  140,600    

Texas Capital Bancshares Inc.

   

6.500

%

         

BB

   

3,270,356

   
  3,366    

Texas Capital Bancshares

   

6.500

%

         

BB+

   

76,610

   
  149,800    

U.S. Bancorp.

   

6.500

%

         

BBB+

   

4,067,070

   
  219,200    

Webster Financial Corporation

   

6.400

%

         

Ba1

   

4,953,920

   
  131,700    

Wells Fargo & Company

   

5.850

%

         

BBB+

   

3,180,555

   
  26,300    

Wells Fargo & Company

   

6.625

%

         

BBB+

   

691,953

   
  259,495    

Zions Bancorporation

   

7.900

%

         

BB

   

7,097,188

   
  95,300    

Zions Bancorporation

   

6.300

%

         

BB

   

2,309,119

   
    Total Commercial Banks    

108,054,871

   

Nuveen Investments
26



Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
   

Communications Equipment – 0.1%

 
  57,500    

Verizon Communications Inc., WI/DD, (2), (12)

   

5.900

%

         

A–

 

$

1,455,900

   
   

Consumer Finance – 1.1%

 
  418,552    

Discover Financial Services

   

6.500

%

         

BB

   

9,995,022

   
  22,659    

SLM Corporation

   

6.000

%

         

BBB–

   

455,219

   
    Total Consumer Finance    

10,450,241

   
   

Diversified Financial Services – 9.6%

 
  4,800    

Ares Capital Corporation

   

5.875

%

         

BBB

   

121,104

   
  102,000    

Citigroup Capital Trust XI

   

6.000

%

         

BB+

   

2,554,080

   
  150,122    

Citigroup Capital XIII

   

7.875

%

         

BB+

   

4,072,810

   
  8,150    

Citigroup Capital XVII

   

6.350

%

         

BB+

   

205,706

   
  159,401    

Citigroup Inc.

   

8.125

%

         

BB+

   

4,734,210

   
  523,567    

Citigroup Inc.

   

7.125

%

         

BB+

   

13,638,920

   
  194,500    

Citigroup Inc., (2)

   

6.875

%

         

BB+

   

4,998,650

   
  444,751    

Countrywide Capital Trust III

   

7.000

%

         

BB+

   

11,167,698

   
  116,200    

Countrywide Capital Trust IV

   

6.750

%

         

BB+

   

2,925,916

   
  80,000    

GMAC LLC

   

7.375

%

         

BB

   

2,026,400

   
  65,000    

ING Groep N.V.

   

7.375

%

         

BBB–

   

1,650,350

   
  204,023    

ING Groep N.V.

   

7.200

%

         

BBB–

   

5,182,184

   
  783,499    

ING Groep N.V.

   

7.050

%

         

BBB–

   

19,799,020

   
  25,000    

ING Groep N.V.

   

6.375

%

         

BBB–

   

607,000

   
  50,000    

ING Groep N.V.

   

6.125

%

         

BBB–

   

1,181,000

   
  16,600    

Intl FCStone Inc.

   

8.500

%

         

N/R

   

414,834

   
  73,391    

KCAP Financial Inc.

   

7.375

%

         

N/A

   

1,889,818

   
  48,000    

KKR Financial Holdings LLC

   

7.500

%

         

BBB

   

1,248,000

   
  277,249    

KKR Financial Holdings LLC

   

7.375

%

         

BB+

   

6,812,008

   
  220,300    

Main Street Capital Corporation

   

6.125

%

         

N/R

   

5,258,561

   
  119,700    

PennantPark Investment Corporation

   

6.250

%

         

BBB–

   

2,908,710

   
    Total Diversified Financial Services    

93,396,979

   
   

Diversified Telecommunication Services – 1.1%

 
  233,137    

Qwest Corporation

   

7.500

%

         

BBB–

   

5,851,739

   
  2,500    

Qwest Corporation

   

7.375

%

         

BBB–

   

62,525

   
  185,180    

Qwest Corporation

   

7.000

%

         

BBB–

   

4,472,097

   
    Total Diversified Telecommunication Services    

10,386,361

   
   

Electric Utilities – 0.8%

 
  247,600    

Entergy Texas Inc.

   

7.875

%

         

A–

   

6,412,840

   
  68,481    

SCE Trust I

   

5.625

%

         

Baa1

   

1,482,614

   
    Total Electric Utilities    

7,895,454

   
   

Food Products – 0.9%

 
  310,000    

CHS Inc.

   

7.875

%

         

N/R

   

8,887,700

   
   

Insurance – 10.0%

 
  104,045    

Aegon N.V.

   

8.000

%

         

Baa1

   

2,900,775

   
  378,752    

Aegon N.V.

   

6.375

%

         

Baa1

   

9,260,486

   
  690,010    

Arch Capital Group Limited

   

6.750

%

         

BBB

   

17,146,749

   
  273,900    

Argo Group US Inc.

   

6.500

%

         

BBB–

   

5,836,809

   
  54,020    

Aspen Insurance Holdings Limited

   

7.250

%

         

BBB–

   

1,374,809

   
  393,800    

Aspen Insurance Holdings Limited

   

5.950

%

         

BBB–

   

9,490,580

   
  425,908    

Axis Capital Holdings Limited

   

6.875

%

         

BBB

   

10,571,037

   
  3,000    

Delphi Financial Group, Inc., (12)

   

7.376

%

         

BBB–

   

72,094

   
  165,000    

Endurance Specialty Holdings Limited

   

7.500

%

         

BBB–

   

4,240,500

   
  42,470    

Hanover Insurance Group

   

6.350

%

         

Ba1

   

918,626

   
  138,124    

Hartford Financial Services Group Inc.

   

7.875

%

         

BB+

   

4,049,796

   
  298,139    

Maiden Holdings Limited

   

8.250

%

         

BB

   

7,364,033

   
  3,832    

Maiden Holdings NA Limited

   

8.250

%

         

BBB–

   

94,420

   

Nuveen Investments
27



JPC  Nuveen Preferred Income Opportunities Fund
Portfolio of Investments
(continued)  January 31, 2014 (Unaudited)

Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
    Insurance (continued)  
  268,201    

Maiden Holdings NA Limited

   

8.000

%

         

BBB–

 

$

6,621,883

   
  187,000    

Maiden Holdings NA Limited

   

7.750

%

         

BBB–

   

4,263,600

   
  8,205    

Prudential PLC

   

6.750

%

         

A–

   

206,930

   
  509,015    

Reinsurance Group of America Inc.

   

6.200

%

         

BBB

   

12,893,350

   
  8,800    

Selective Insurance Group

   

5.875

%

         

BBB+

   

182,688

   
    Total Insurance    

97,489,165

   
   

Marine – 0.6%

 
  101,635    

Costamare Inc., (2)

   

8.500

%

         

N/R

   

2,530,712

   
  63,671    

Costamare Inc.

   

7.625

%

         

N/R

   

1,473,984

   
  9,890    

International Shipholding Corporation

   

9.000

%

         

N/R

   

989,099

   
  18,300    

Navios Maritime Holdings Inc., (2)

   

8.750

%

         

N/R

   

441,579

   
    Total Marine    

5,435,374

   
   

Metals & Mining – 0.0%

 
  10,489    

Gamco Global Gold Natural Resources & Income Trust

   

5.000

%

         

A1

   

211,353

   
   

Multi-Utilities – 0.7%

 
  230,584    

Dominion Resources Inc.

   

8.375

%

         

BBB

   

5,960,596

   
  26,579    

DTE Energy Company

   

6.500

%

         

Baa1

   

657,830

   
    Total Multi-Utilities    

6,618,426

   
   

Oil, Gas & Consumable Fuels – 1.2%

 
  16,500    

Callon Petroleum Company

   

10.000

%

         

N/R

   

787,380

   
  19,100    

Kayne Anderson MLP Trust

   

4.600

%

         

AA

   

477,500

   
  69,400    

Miller Energy Resources Inc.

   

10.500

%

         

N/A

   

1,658,660

   
  265,205    

Nustar Logistics Limited Partnership

   

7.625

%

         

Ba2

   

6,961,631

   
  79,700    

Tsakos Energy Navigation Limited

   

8.875

%

         

N/R

   

1,881,717

   
    Total Oil, Gas & Consumable Fuels    

11,766,888

   
   

Real Estate – 18.0%

 
  199,300    

AG Mortgage Investment Trust

   

8.000

%

         

N/A

   

4,456,348

   
  249,100    

Annaly Capital Management

   

7.625

%

         

N/A

   

5,729,300

   
  149,500    

Apollo Commercial Real Estate Finance

   

8.625

%

         

N/A

   

3,746,470

   
  249,100    

Apollo Residential Mortgage Inc.

   

8.000

%

         

N/A

   

5,676,989

   
  70,546    

Ashford Hospitality Trust Inc.

   

9.000

%

         

N/A

   

1,834,901

   
  136,421    

Ashford Hospitality Trust Inc.

   

8.450

%

         

N/R

   

3,418,710

   
  33,100    

Campus Crest Communities

   

8.000

%

         

Ba1

   

827,500

   
  150,000    

Capstead Mortgage Corporation

   

7.500

%

         

N/R

   

3,588,000

   
  160,091    

CBL & Associates Properties Inc.

   

7.375

%

         

BB

   

3,853,390

   
  186,579    

Cedar Shopping Centers Inc., Series A

   

7.250

%

         

N/A

   

4,293,183

   
  208,314    

Chesapeake Lodging Trust

   

7.750

%

         

N/A

   

5,195,351

   
  200    

Colony Financial Inc.

   

8.500

%

         

N/R

   

5,068

   
  5,142    

CommomWealth REIT

   

7.250

%

         

Ba1

   

116,363

   
  50,000    

Coresite Realty Corporation

   

7.250

%

         

N/A

   

1,159,000

   
  94,564    

CYS Investments Inc.

   

7.750

%

         

N/A

   

2,047,311

   
  96,474    

CYS Investments Inc.

   

7.500

%

         

N/R

   

2,016,307

   
  270,925    

DDR Corporation

   

6.500

%

         

Baa3

   

6,082,266

   
  16,200    

Digital Realty Trust Inc.

   

7.000

%

         

Baa3

   

376,326

   
  50,940    

Duke Realty Corporation, Series L

   

6.600

%

         

Baa3

   

1,217,466

   
  211,800    

Dupont Fabros Technology

   

7.875

%

         

Ba2

   

5,282,292

   
  3,045    

Dupont Fabros Technology

   

7.625

%

         

Ba2

   

73,080

   
  98,500    

Dynex Capital Inc.

   

8.500

%

         

N/A

   

2,387,640

   
  249,600    

First Potomac Realty Trust

   

7.750

%

         

N/R

   

6,342,336

   
  247,570    

Hatteras Financial Corporation

   

7.625

%

         

N/A

   

5,533,190

   
  48,490    

Health Care REIT, Inc.

   

6.500

%

         

Baa3

   

1,146,789

   
  88,850    

Hersha Hospitality Trust

   

6.875

%

         

N/R

   

2,035,554

   
  63,750    

Hospitality Properties Trust

   

7.125

%

         

Baa3

   

1,535,100

   
  178,580    

Inland Real Estate Corporation

   

8.125

%

         

N/R

   

4,589,506

   

Nuveen Investments
28



Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
    Real Estate (continued)  
  239,102    

Invesco Mortgage Capital Inc.

   

7.750

%

         

N/A

 

$

5,597,378

   
  3,800    

Kennedy-Wilson Inc.

   

7.750

%

         

BB–

   

95,760

   
  34,351    

Kimco Realty Corporation,

   

6.900

%

         

Baa2

   

864,271

   
  20,700    

Kite Realty Group Trust

   

8.250

%

         

N/R

   

525,987

   
  165,300    

MFA Financial Inc.

   

8.000

%

         

N/A

   

4,304,412

   
  37,500    

MFA Financial Inc.

   

7.500

%

         

N/A

   

817,500

   
  73,051    

National Retail Properties Inc.

   

6.625

%

         

Baa2

   

1,719,621

   
  136,958    

New York Mortgage Trust Inc.

   

7.750

%

         

N/R

   

2,851,466

   
  178,500    

Northstar Realty Finance Corporation

   

8.875

%

         

N/A

   

4,507,125

   
  329,164    

Northstar Realty Finance Corporation

   

8.250

%

         

N/R

   

7,942,727

   
  200,000    

Penn Real Estate Investment Trust

   

8.250

%

         

N/A

   

5,040,000

   
  72,400    

Penn Real Estate Investment Trust

   

7.375

%

         

N/A

   

1,744,840

   
  22,464    

Prologis Inc., (12)

   

8.540

%

         

BB+

   

1,279,044

   
  19,800    

PS Business Parks, Inc.

   

6.875

%

         

Baa2

   

488,862

   
  59,960    

PS Business Parks, Inc.

   

6.450

%

         

Baa2

   

1,361,092

   
  154,353    

Rait Financial Trust

   

7.750

%

         

N/R

   

3,554,750

   
  222,360    

Realty Income Corporation

   

6.625

%

         

Baa2

   

5,438,926

   
  217,000    

Regency Centers Corporation

   

6.625

%

         

Baa3

   

5,123,370

   
  400,000    

Senior Housing Properties Trust

   

5.625

%

         

BBB–

   

7,884,000

   
  157,149    

Strategic Hotel Capital Inc., Series B

   

8.250

%

         

N/R

   

3,798,291

   
  191,651    

Strategic Hotel Capital Inc., Series C

   

8.250

%

         

N/R

   

4,653,286

   
  149,300    

Urstadt Biddle Properties

   

7.125

%

         

N/A

   

3,493,620

   
  300,000    

Vornado Realty LP

   

7.875

%

         

BBB

   

7,845,000

   
  8,248    

Weingarten Realty Trust

   

6.500

%

         

Baa3

   

195,890

   
  236,425    

Winthrop Realty Trust Inc.

   

9.250

%

         

N/R

   

6,281,812

   
  148,900    

Winthrop Realty Trust Inc.

   

7.750

%

         

N/A

   

3,771,637

   
    Total Real Estate    

175,746,403

   
   

Thrifts & Mortgage Finance – 0.1%

 
  39,002    

Everbank Financial Corporation

   

6.750

%

         

N/A

   

898,216

   
  30,000    

Federal Agricultural Mortgage Corporation

   

5.875

%

         

Aaa

   

615,000

   
    Total Thrifts & Mortgage Finance    

1,513,216

   
   

U.S. Agency – 6.3%

 
  168,650    

AgriBank FCB, (12)

   

6.875

%

         

A–

   

16,954,604

   
  157,375    

Cobank Agricultural Credit Bank, 144A, (12)

   

6.250

%

         

A–

   

15,226,030

   
  38,725    

Cobank Agricultural Credit Bank, (12)

   

6.125

%

         

A–

   

3,274,682

   
  259,800    

Farm Credit Bank of Texas, 144A, (12)

   

6.750

%

         

Baa1

   

26,467,124

   
    Total U.S. Agency    

61,922,440

   
   

Total $25 Par (or similar) Retail Preferred (cost $670,491,280)

                           

665,320,727

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CORPORATE BONDS – 4.0% (2.8% of Total Investments)

 
   

Capital Markets – 0.0%

 

$

175

   

Walter Investment Management Corporation , First Lien Term Loan, 144A

   

7.875

%

 

12/15/21

 

B

 

$

177,188

   
   

Commercial Services & Supplies – 0.7%

 
  2,900    

Iron Mountain Inc.

   

5.750

%

 

8/15/24

 

B1

   

2,711,500

   
  550    

R.R. Donnelley & Sons Company

   

8.250

%

 

3/15/19

 

BB

   

636,625

   
  1,900    

R.R. Donnelley & Sons Company

   

7.875

%

 

3/15/21

 

BB–

   

2,109,000

   
  650    

R.R. Donnelley & Sons Company

   

6.500

%

 

11/15/23

 

BB–

   

653,250

   
  6,000    

Total Commercial Services & Supplies

                           

6,110,375

   
   

Diversified Financial Services – 1.0%

 
  1,475    

Fly Leasing Limited

   

6.750

%

 

12/15/20

 

BB

   

1,493,438

   
  3,900    

Icahn Enterprises Finance

   

6.000

%

 

8/01/20

 

BBB–

   

4,021,875

   
  4,100    

Jefferies Finance LLC Corporation, 144A

   

7.375

%

 

4/01/20

 

B+

   

4,294,750

   
  9,475    

Total Diversified Financial Services

                           

9,810,063

   

Nuveen Investments
29



JPC  Nuveen Preferred Income Opportunities Fund
Portfolio of Investments
(continued)  January 31, 2014 (Unaudited)

Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Diversified Telecommunication Services – 1.3%

 

$

12,675

   

Frontier Communications Corporation

   

7.125

%

 

1/15/23

 

Ba2

 

$

12,516,563

   
   

Oil, Gas & Consumable Fuels – 1.0%

 
  2,197    

Breitburn Energy Partners LP

   

7.875

%

 

4/15/22

 

B–

   

2,337,059

   
  4,853    

DCP Midstream LLC, 144A

   

5.850

%

 

5/21/43

 

Baa3

   

4,489,024

   
  2,935    

Vanguard Natural Resources Finance

   

7.875

%

 

4/01/20

 

B

   

3,103,762

   
  9,985    

Total Oil, Gas & Consumable Fuels

                           

9,929,845

   

$

38,310

   

Total Corporate Bonds (cost $38,003,303)

                           

38,544,034

   
Principal
Amount (000)/
Shares
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 60.8% (43.3% of Total Investments)

 
   

Capital Markets – 0.8%

 
  1,500    

Macquarie PMI LLC

   

8.375

%

   

N/A (7)

   

BB+

 

$

1,597,500

   
  4,933    

Credit Suisse Guernsey

   

7.875

%

 

2/24/41

 

BBB–

   

5,300,015

   
  1,500    

Deutsche Bank Capital Funding Trust V, 144A

   

4.901

%

   

N/A (7)

   

BBB–

   

1,440,000

   
    Total Capital Markets    

8,337,515

   
   

Commercial Banks – 15.8%

 
  19,361    

Abbey National Capital Trust I

   

8.963

%

   

N/A (7)

   

BBB–

   

24,201,250

   
  4,430    

Barclays PLC

   

8.250

%

   

N/A (7)

   

BB+

   

4,564,229

   
  3,575    

Barclays Bank PLC, 144A

   

10.180

%

 

6/12/21

 

A–

   

4,745,705

   
  11,275    

BNP Paribas, 144A

   

7.195

%

   

N/A (7)

   

BBB

   

11,979,688

   
  3,290    

Commerzbank AG, 144A

   

8.125

%

 

9/19/23

 

BB+

   

3,610,775

   
  1,840    

Credit Agricole SA

   

7.875

%

   

N/A (7)

   

BB+

   

1,867,600

   
  4,500    

First Empire Capital Trust I, (6)

   

8.234

%

 

2/01/27

 

BBB

   

4,564,467

   
  1,000    

HSBC Bank PLC

   

0.688

%

 

12/19/35

 

BBB+

   

712,159

   
  500    

HSBC Bank PLC

   

0.600

%

 

6/11/37

 

BBB+

   

337,000

   
  4,654    

HSBC Capital Funding LP, Debt

   

10.176

%

   

N/A (7)

   

BBB+

   

6,678,490

   
  5,000    

PNC Financial Services Inc., (6)

   

6.750

%

   

N/A (7)

   

BBB

   

5,262,500

   
  22,113    

Rabobank Nederland, 144A

   

11.000

%

   

N/A (7)

   

A–

   

29,078,595

   
  4,883    

Royal Bank of Scotland Group PLC

   

7.648

%

   

N/A (7)

   

BB

   

5,157,669

   
  6,648    

Societe Generale

   

8.750

%

   

N/A (7)

   

BBB–

   

6,998,682

   
  5,010    

Societe Generale, 144A

   

7.875

%

   

N/A (7)

   

BB+

   

5,085,150

   
  570    

Standard Chartered PLC, 144A

   

7.014

%

   

N/A (7)

   

BBB+

   

601,350

   
  28,371    

Wells Fargo & Company, (6)

   

7.980

%

   

N/A (7)

   

BBB+

   

31,988,303

   
  6,095    

Zions Bancorporation

   

7.200

%

   

N/A (7)

   

BB

   

6,186,425

   
    Total Commercial Banks    

153,620,037

   
   

Diversified Financial Services – 13.4%

 
  16,400    

Agstar Financial Services Inc., 144A

   

6.750

%

   

N/A (7)

   

BB

   

16,277,000

   
  9,625    

Bank of America Corporation

   

8.000

%

   

N/A (7)

   

BB+

   

10,648,426

   
  1,850    

Bank of America Corporation

   

8.125

%

   

N/A (7)

   

BB+

   

2,058,310

   
  1,000    

Citigroup Inc.

   

8.400

%

   

N/A (7)

   

BB+

   

1,105,500

   
  4,965    

Credit Suisse Group AG

   

7.500

%

   

N/A (7)

   

BB+

   

5,225,663

   
  9,500    

General Electric Capital Corporation, (6)

   

6.250

%

   

N/A (7)

   

AA–

   

9,903,750

   
  33,205    

General Electric Capital Corporation, (5), (6)

   

7.125

%

   

N/A (7)

   

AA–

   

37,314,119

   
  3,240    

ING US Inc.

   

5.650

%

 

5/15/53

 

Ba1

   

3,110,400

   
  22,402    

JPMorgan Chase & Company, (6)

   

7.900

%

   

N/A (7)

   

BBB

   

24,781,092

   
  12,110    

JPMorgan Chase & Company

   

6.750

%

   

N/A (7)

   

BBB

   

12,273,485

   
  1,400    

JPMorgan Chase & Company

   

6.000

%

   

N/A (7)

   

BBB

   

1,347,500

   
  7,250    

JPMorgan Chase & Company

   

5.150

%

   

N/A (7)

   

BBB

   

6,588,438

   
    Total Diversified Financial Services    

130,633,683

   
   

Electric Utilities – 0.2%

 
  1,600    

Electricite de France, 144A

   

5.250

%

   

N/A (7)

   

A3

   

1,546,000

   

Nuveen Investments
30



Principal
Amount (000)/
Shares
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Insurance – 28.6%

 
  1,183    

AG2R La Mondiale Vie

   

7.625

%

   

N/A (7)

   

BBB–

 

$

1,252,996

   
  4,800    

AIG Life Holdings Inc., (6)

   

8.500

%

 

7/01/30

 

BBB

   

6,115,291

   
  5,000    

Allstate Corporation, (6)

   

6.500

%

 

5/15/57

 

Baa1

   

5,212,500

   
  2,455    

Allstate Corporation, (6)

   

5.750

%

 

8/15/53

 

Baa1

   

2,486,915

   
  3,500    

Aquarius & Investments PLC fbo SwissRe

   

8.250

%

   

N/A (7)

   

N/R

   

3,797,500

   
  7,000    

Aviva PLC, Reg S

   

8.250

%

   

N/A (7)

   

BBB

   

7,743,750

   
  3,675    

AXA SA

   

8.600

%

 

12/15/30

 

A3

   

4,604,984

   
  28,039    

Catlin Insurance Company Limited

   

7.249

%

   

N/A (7)

   

BBB+

   

28,950,268

   
  6,815    

Cloverie PLC Zurich Insurance

   

8.250

%

   

N/A (7)

   

A

   

7,871,325

   
  2,300    

CNP Assurances

   

7.500

%

   

N/A (7)

   

BBB+

   

2,481,581

   
  1,750    

Dai-Ichi Mutual Life, 144A

   

7.250

%

   

N/A (7)

   

A3

   

2,034,375

   
  32,040    

Financial Security Assurance Holdings, 144A, (6)

   

6.400

%

 

12/15/66

 

BBB

   

25,151,400

   
  1,755    

Friends Life Group PLC

   

7.875

%

   

N/A (7)

   

BBB+

   

1,913,515

   
  20,335    

Glen Meadows Pass Through Trust

   

6.505

%

 

8/15/67

 

BB+

   

20,131,650

   
  1,030    

Great West Life & Annuity Insurance Capital LP II, 144A

   

7.153

%

 

5/16/46

 

A–

   

1,060,900

   
  12,000    

Liberty Mutual Group, 144A

   

7.800

%

 

3/15/37

 

Baa3

   

12,900,000

   
  2,665    

Lincoln National Corporation, (6)

   

7.000

%

 

5/17/66

 

BBB

   

2,718,300

   
  1,750    

Lincoln National Corporation, (6)

   

6.050

%

 

4/20/67

 

BBB

   

1,723,750

   
  9,335    

MetLife Capital Trust IV, 144A

   

7.875

%

 

2/15/37

 

BBB

   

10,758,588

   
  14,660    

MetLife Capital Trust X, 144A

   

9.250

%

 

4/08/38

 

BBB

   

18,838,100

   
  13,770    

Nationwide Financial Services

   

6.750

%

 

5/15/37

 

Baa2

   

13,546,238

   
  1,150    

Nationwide Financial Services Capital Trust

   

7.899

%

 

3/01/37

 

Baa2

   

1,273,890

   
  6,855    

Provident Financing Trust I

   

7.405

%

 

3/15/38

 

Baa3

   

7,523,363

   
  4,415    

Prudential Financial Inc., (6)

   

5.875

%

 

9/15/42

 

BBB+

   

4,525,375

   
  1,600    

Prudential PLC

   

6.500

%

   

N/A (7)

   

A–

   

1,606,000

   
  5,169    

Prudential PLC

   

7.750

%

   

N/A (7)

   

A–

   

5,582,520

   
  4,600    

QBE Capital Funding Trust II, 144A

   

6.797

%

   

N/A (7)

   

BBB

   

4,542,500

   
  14,535    

QBE Capital Funding Trust II, 144A

   

7.250

%

 

5/24/41

 

BBB

   

15,007,388

   
  7,724    

Swiss Re Capital I, 144A

   

6.854

%

   

N/A (7)

   

A

   

8,264,680

   
  18,168    

Symetra Financial Corporation, 144A

   

8.300

%

 

10/15/37

 

BBB–

   

19,076,400

   
  17,485    

White Mountains Insurance Group

   

7.506

%

   

N/A (7)

   

BB+

   

18,153,801

   
  8,250    

XL Capital Ltd

   

6.500

%

   

N/A (7)

   

BBB

   

8,085,000

   
  4,000    

ZFS Finance USA Trust II 144A, (6)

   

6.450

%

 

12/15/65

 

A

   

4,280,000

   
    Total Insurance    

279,214,843

   
   

Machinery – 0.4%

 
  3,360    

Stanley Black & Decker Inc.

   

5.750

%

 

12/15/53

 

BBB+

   

3,570,000

   
   

Real Estate – 1.4%

 
  10,165    

Sovereign Real Estate Investment Trust, 144A

   

12.000

%

   

N/A (7)

   

Ba1

   

13,550,860

   
   

U.S. Agency – 0.2%

 
  1,700    

Farm Credit Bank of Texas

   

10.000

%

   

N/A (7)

   

Baa1

   

2,026,716

   
    Total $1,000 Par (or similar) Institutional Preferred (cost $556,863,415)    

592,499,654

   

Nuveen Investments
31



JPC  Nuveen Preferred Income Opportunities Fund
Portfolio of Investments
(continued)  January 31, 2014 (Unaudited)

Shares  

Description (1), (13)

             

Value

 
   

INVESTMENT COMPANIES – 0.7% (0.5% of Total Investments)

 
  29,800    

Cushing® Royalty and Income Fund

                         

$

533,420

   
  1,152,656    

MFS Intermediate Income Trust

                           

6,097,550

   
  7,385    

Oxford Lane Capital Corporation

                           

130,235

   
    Total Investment Companies (cost $6,693,421)    

6,761,205

   
    Total Long-Term Investments (cost $1,313,776,811)    

1,345,935,939

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 2.3% (1.7% of Total Investments)

 

$

22,741

  Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/14,
repurchase price $22,741,190, collateralized by $22,855,000 U.S. Treasury Notes, 2.125%,
due 8/31/20, value $23,197,825
  0.000

%

  2/03/14

 
 
 
 

$

22,741,190

 
    Total Short-Term Investments (cost $22,741,190)    

22,741,190

   
    Total Investments (cost $1,336,518,001) – 140.4%    

1,368,677,129

   
    Borrowings – (41.3)% (8), (9)    

(402,500,000

)

 
    Other Assets Less Liabilities – 0.9% (10)    

8,662,716

   
    Net Assets Applicable to Common Shares – 100%  

$

974,839,845

   

Investments in Derivatives as of January 31, 2014

Interest Rate Swaps outstanding:

Counterparty

  Notional
Amount
  Fund
Pay/Receive
Floating Rate
 

Floating Rate Index

  Fixed Rate
(Annualized)
  Fixed Rate
Payment
Frequency
  Effective
Date (11)
  Termination
Date
  Unrealized
Appreciation
(Depreciation) (10)
 

JPMorgan

 

$

69,725,000

   

Receive

  1-Month USD-LIBOR    

1.193

%

 

Monthly

 

3/21/11

 

3/21/14

 

$

(120,266

)

 

JPMorgan

   

114,296,000

   

Receive

  1-Month USD-LIBOR    

1.255

   

Monthly

 

12/01/14

 

12/01/18

   

2,276,236

   

JPMorgan

   

114,296,000

   

Receive

  1-Month USD-LIBOR    

1.673

   

Monthly

 

12/01/14

 

12/01/20

   

4,719,246

   

Morgan Stanley

   

69,725,000

   

Receive

  1-Month USD-LIBOR    

2.064

   

Monthly

 

3/21/11

 

3/21/16

   

(2,472,560

)

 
   

$

368,042,000

                           

$

4,402,656

   

Nuveen Investments
32



  For Fund portfolio compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

(1)  All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

(2)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(3)  Ratings: Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

(4)  For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(5)  Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives.

(6)  Investment, or portion of investment, is out on loan as described in Note 8 – Borrowing Arrangements. The total value of investments out on loan as of the end of the reporting period was $75,452,300.

(7)  Perpetual security. Maturity date is not applicable.

(8)  The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of the end of the reporting period, investments with a value of $870,773,291 have been pledged as collateral for Borrowings.

(9)  Borrowings as a percentage of Total Investments is 29.4%.

(10)  Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period.

(11)  Effective date represents the date on which both the Fund and Counterparty commence interest payment accruals on each contract.

(12)  For fair value measurement disclosure purposes, $25 Par (or similar) Retail Preferred classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(13)  A copy of the most recent financial statements for the investment companies in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov.

N/A  Not applicable.

144A  Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

ADR  American Depositary Receipt.

CORTS  Corporate Backed Trust Securities.

PPLUS  PreferredPlus Trust.

Reg S  Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

REIT  Real Estate Investment Trust.

WI/DD  Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.

USD-LIBOR  United States Dollar – London Inter-Bank Offered Rate.

See accompanying notes to financial statements.

Nuveen Investments
33



JPI

Nuveen Preferred and Income Term Fund

Portfolio of Investments  January 31, 2014 (Unaudited)

Shares  

Description (1)

 

Coupon

     

Ratings (2)

 

Value

 
   

LONG-TERM INVESTMENTS – 138.5% (99.1% of Total Investments)

 
   

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 39.6% (28.3% of Total Investments)

 
   

Capital Markets – 1.1%

 
  16,894    

Deutsche Bank Capital Funding Trust VIII

   

6.375

%

         

BBB–

 

$

419,140

   
  242,100    

Goldman Sachs Group, Inc.

   

5.500

%

         

BB+

   

5,597,352

   
  7,000    

Morgan Stanley

   

6.875

%

         

BB+

   

177,940

   
    Total Capital Markets    

6,194,432

   
   

Commercial Banks – 6.7%

 
  80,500    

City National Corporation

   

6.750

%

         

BBB–

   

2,129,225

   
  113,600    

Fifth Third Bancorp., (3)

   

6.625

%

         

BBB–

   

2,896,800

   
  525,200    

Morgan Stanley

   

7.125

%

         

BB+

   

13,686,712

   
  125,000    

PNC Financial Services

   

6.125

%

         

BBB

   

3,185,000

   
  68,553    

Private Bancorp Incorporated

   

7.125

%

         

N/A

   

1,726,165

   
  87,100    

Regions Financial Corporation

   

6.375

%

         

BB

   

2,030,301

   
  153,800    

Texas Capital Bancshares Inc.

   

6.500

%

         

BB

   

3,577,388

   
  38,800    

U.S. Bancorp.

   

6.500

%

         

BBB+

   

1,053,420

   
  101,900    

Wells Fargo & Company

   

5.850

%

         

BBB+

   

2,460,885

   
  28,900    

Wells Fargo & Company

   

6.625

%

         

BBB+

   

760,359

   
  145,900    

Zions Bancorporation

   

6.300

%

         

BB

   

3,535,157

   
    Total Commercial Banks    

37,041,412

   
   

Communications Equipment – 0.3%

 
  62,000    

Verizon Communications Inc., WI/DD, (3), (4)

   

5.900

%

         

A–

   

1,569,840

   
   

Consumer Finance – 0.6%

 
  149,800    

Discover Financial Services

   

6.500

%

         

BB

   

3,577,224

   
   

Diversified Financial Services – 8.4%

 
  487,466    

Citigroup Inc.

   

7.125

%

         

BB+

   

12,698,489

   
  242,700    

Citigroup Inc., (3)

   

6.875

%

         

BB+

   

6,237,390

   
  15,100    

Countrywide Capital Trust III

   

7.000

%

         

BB+

   

379,161

   
  651,000    

ING Groep N.V.

   

7.375

%

         

BBB–

   

16,528,890

   
  231,273    

ING Groep N.V.

   

7.200

%

         

BBB–

   

5,874,334

   
  160,268    

ING Groep N.V.

   

7.050

%

         

BBB–

   

4,049,972

   
  40,000    

ING Groep N.V.

   

6.375

%

         

BBB–

   

971,200

   
    Total Diversified Financial Services    

46,739,436

   
   

Food Products – 1.8%

 
  340,000    

CHS Inc.

   

7.875

%

         

N/R

   

9,747,800

   
   

Insurance – 8.6%

 
  15,000    

Aegon N.V.

   

8.000

%

         

Baa1

   

418,200

   
  100,000    

Aegon N.V.

   

6.500

%

         

Baa1

   

2,439,000

   
  43,000    

Arch Capital Group Limited

   

6.750

%

         

BBB

   

1,068,550

   
  59,200    

Aspen Insurance Holdings Limited

   

7.250

%

         

BBB–

   

1,506,640

   
  432,500    

Aspen Insurance Holdings Limited

   

5.950

%

         

BBB–

   

10,423,250

   
  177,623    

Axis Capital Holdings Limited

   

6.875

%

         

BBB

   

4,408,603

   
  3,000    

Delphi Financial Group, Inc., (4)

   

7.376

%

         

BBB–

   

72,094

   
  299,000    

Endurance Specialty Holdings Limited

   

7.500

%

         

BBB–

   

7,684,300

   
  147,600    

Hartford Financial Services Group Inc.

   

7.875

%

         

BB+

   

4,327,632

   
  398,546    

Maiden Holdings Limited

   

8.250

%

         

BB

   

9,844,086

   
  205,000    

Reinsurance Group of America Inc.

   

6.200

%

         

BBB

   

5,192,650

   
    Total Insurance    

47,385,005

   

Nuveen Investments
34



Shares  

Description (1)

 

Coupon

     

Ratings (2)

 

Value

 
   

Oil, Gas & Consumable Fuels – 0.9%

 
  198,600    

Nustar Logistics Limited Partnership

   

7.625

%

         

Ba2

 

$

5,213,250

   
   

U.S. Agency – 11.2%

 
  138,200    

AgriBank FCB, (4)

   

6.875

%

         

A–

   

13,893,426

   
  100,000    

Cobank Agricultural Credit Bank, (4)

   

11.000

%

         

A–

   

5,225,000

   
  179,800    

Cobank Agricultural Credit Bank, 144A, (4), (5)

   

6.250

%

         

A–

   

17,395,650

   
  248,400    

Farm Credit Bank of Texas, 144A, (4), (5)

   

6.750

%

         

Baa1

   

25,305,750

   
    Total U.S. Agency    

61,819,826

   
   

Total $25 Par (or similar) Retail Preferred (cost $220,745,952)

                           

219,288,225

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (2)

 

Value

 
   

CORPORATE BONDS – 1.2% (0.8% of Total Investments)

 
   

Insurance – 1.2%

 

$

4,430

   

Nationwide Mutual Insurance Company, 144A, (5)

   

9.375

%

 

8/15/39

 

A–

 

$

6,452,260

   

$

4,430

   

Total Corporate Bonds (cost $6,031,087)

                           

6,452,260

   
Principal
Amount (000)/
Shares
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (2)

 

Value

 
   

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 97.7% (70.0% of Total Investments)

 
   

Capital Markets – 1.7%

 
  5,309    

Credit Suisse Guernsey, Reg S

   

7.875

%

 

2/24/41

 

BBB–

 

$

5,703,990

   
  1,500    

Deutsche Bank Capital Funding Trust V, 144A

   

4.901

%

   

N/A (6)

   

BBB–

   

1,440,000

   
  1,972    

Macquarie PMI LLC

   

8.375

%

   

N/A (6)

   

BB+

   

2,100,180

   
    Total Capital Markets    

9,244,170

   
   

Commercial Banks – 28.6%

 
  4,910    

Abbey National Capital Trust I

   

8.963

%

   

N/A (6)

   

BBB–

   

6,137,500

   
  14,310    

Banco Santander Finance

   

10.500

%

   

N/A (6)

   

BB

   

14,927,119

   
  4,760    

Barclays PLC

   

8.250

%

 

3/15/64

 

BB+

   

4,904,228

   
  4,000    

Barclays Bank PLC, 144A

   

10.180

%

 

6/12/21

 

A–

   

5,309,880

   
  12,325    

BNP Paribas, 144A

   

7.195

%

   

N/A (6)

   

BBB

   

13,095,313

   
  3,525    

Commerzbank AG, 144A

   

8.125

%

 

9/19/23

 

BB+

   

3,868,688

   
  1,980    

Credit Agricole SA

   

7.875

%

   

N/A (6)

   

BB+

   

2,009,700

   
  8,031    

HSBC Capital Funding LP, Debt, 144A

   

10.176

%

   

N/A (6)

   

BBB+

   

11,524,485

   
  29,403    

Rabobank Nederland, 144A

   

11.000

%

   

N/A (6)

   

A–

   

38,664,284

   
  5,473    

Royal Bank of Scotland Group PLC

   

7.648

%

   

N/A (6)

   

BB

   

5,780,856

   
  7,162    

Societe Generale, Reg S

   

8.750

%

   

N/A (6)

   

BBB–

   

7,539,796

   
  5,405    

Societe Generale, 144A

   

7.875

%

   

N/A (6)

   

BB+

   

5,486,075

   
  30,910    

Wells Fargo & Company, (5)

   

7.980

%

   

N/A (6)

   

BBB+

   

34,851,024

   
  4,350    

Zions Bancorporation

   

7.200

%

   

N/A (6)

   

BB

   

4,415,250

   
    Total Commercial Banks    

158,514,198

   
   

Diversified Financial Services – 20.7%

 
  15,700    

Agstar Financial Services Inc., 144A, (5)

   

6.750

%

   

N/A (6)

   

BB

   

15,582,250

   
  17,505    

Bank of America Corporation

   

8.000

%

   

N/A (6)

   

BB+

   

19,366,307

   
  2,000    

Bank of America Corporation

   

8.125

%

   

N/A (6)

   

BB+

   

2,225,200

   
  5,345    

Credit Suisse Group AG

   

7.500

%

   

N/A (6)

   

BB+

   

5,625,613

   
  27,285    

General Electric Capital Corporation, (5)

   

7.125

%

   

N/A (6)

   

AA–

   

30,661,518

   
  3,025    

ING US Inc.

   

5.650

%

 

5/15/53

 

Ba1

   

2,904,000

   
  24,670    

JPMorgan Chase & Company, (5)

   

7.900

%

   

N/A (6)

   

BBB

   

27,289,954

   
  9,610    

JPMorgan Chase & Company

   

6.750

%

   

N/A (6)

   

BBB

   

9,739,735

   
  1,295    

JPMorgan Chase & Company, (5)

   

6.000

%

   

N/A (6)

   

BBB

   

1,246,438

   
    Total Diversified Financial Services    

114,641,015

   

Nuveen Investments
35



JPI  Nuveen Preferred and Income Term Fund
Portfolio of Investments
(continued)  January 31, 2014 (Unaudited)

Principal
Amount (000)/
Shares
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (2)

 

Value

 
   

Electric Utilities – 0.3%

 
  2,000    

Electricite de France, 144A

   

5.250

%

   

N/A (6)

   

A3

 

$

1,932,500

   
   

Insurance – 42.2%

 
  1,309    

AG2R La Mondiale Vie, Reg S

   

7.625

%

   

N/A (6)

   

BBB–

   

1,386,452

   
  7,781    

AIG Life Holdings Inc., (5)

   

8.500

%

 

7/01/30

 

BBB

   

9,913,142

   
  1,485    

Allstate Corporation, (5)

   

5.750

%

 

8/15/53

 

Baa1

   

1,504,305

   
  3,500    

Aquarius & Investments PLC fbo SwissRe

   

8.250

%

   

N/A (6)

   

N/R

   

3,797,500

   
  18,740    

Aviva PLC, Reg S

   

8.250

%

   

N/A (6)

   

BBB

   

20,731,125

   
  3,945    

AXA SA

   

8.600

%

 

12/15/30

 

A3

   

4,943,310

   
  32,395    

Catlin Insurance Company Limited, 144A

   

7.249

%

   

N/A (6)

   

BBB+

   

33,447,837

   
  2,640    

Cloverie PLC Zurich Insurance, Reg S

   

8.250

%

   

N/A (6)

   

A

   

3,049,200

   
  2,500    

CNP Assurances

   

7.500

%

   

N/A (6)

   

BBB+

   

2,697,371

   
  1,900    

Dai-Ichi Mutual Life, 144A

   

7.250

%

   

N/A (6)

   

A3

   

2,208,750

   
  36,660    

Financial Security Assurance Holdings, 144A, (5)

   

6.400

%

 

12/15/66

 

BBB

   

28,778,100

   
  2,424    

Friends Life Group PLC, Reg S

   

7.875

%

   

N/A (6)

   

BBB+

   

2,642,941

   
  20,955    

Glen Meadows Pass Through Trust, 144A, (5)

   

6.505

%

 

2/12/67

 

BB+

   

20,745,450

   
  1,120    

Great West Life & Annuity Insurance Capital LP II, 144A, (5)

   

7.153

%

 

5/16/46

 

A–

   

1,153,600

   
  780    

Lincoln National Corporation, (5)

   

7.000

%

 

5/17/66

 

BBB

   

795,600

   
  15,815    

MetLife Capital Trust X, 144A, (5)

   

9.250

%

 

4/08/68

 

BBB

   

20,322,275

   
  7,703    

Provident Financing Trust I

   

7.405

%

 

3/15/38

 

Baa3

   

8,454,043

   
  3,325    

Prudential Financial Inc., (5)

   

5.875

%

 

9/15/42

 

BBB+

   

3,408,125

   
  5,000    

Prudential PLC

   

7.750

%

   

N/A (6)

   

A–

   

5,400,000

   
  20,925    

QBE Capital Funding Trust II, 144A

   

7.250

%

 

5/24/41

 

BBB

   

21,605,063

   
  28,226    

Symetra Financial Corporation, 144A, (5)

   

8.300

%

 

10/15/37

 

BBB–

   

29,637,299

   
  6,830    

White Mountain Re Group, 144A

   

7.506

%

   

N/A (6)

   

BB+

   

7,091,248

   
    Total Insurance    

233,712,736

   
   

Machinery – 0.7%

 
  3,615    

Stanley Black & Decker Inc., (5)

   

5.750

%

 

12/15/53

 

BBB+

   

3,840,938

   
   

Real Estate – 3.4%

 
  13,998    

Sovereign Real Estate Investment Trust, 144A

   

12.000

%

   

N/A (6)

   

Ba1

   

18,660,594

   
   

U.S. Agency – 0.1%

 
  502    

Farm Credit Bank of Texas

   

10.000

%

   

N/A (6)

   

Baa1

   

598,478

   
    Total $1,000 Par (or similar) Institutional Preferred (cost $526,027,785)    

541,144,629

   
   

Total Long-Term Investments (cost $752,804,824)

                           

766,885,114

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 1.2% (0.9% of Total Investments)

 

$

6,797

  Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/14,
repurchase price $6,796,665, collateralized by $6,660,000 U.S. Treasury Notes, 2.625%,
due 11/15/20, value $6,935,491
  0.000

%

  2/03/14

         

$

6,796,665

 
    Total Short-Term Investments (cost $6,796,665)    

6,796,665

   
    Total Investments (cost $759,601,489) – 139.7%    

773,681,779

   
    Borrowings – (40.6)% (7), (8)    

(225,000,000

)

 
    Other Assets Less Liabilities – 0.9% (9)    

5,079,078

   
    Net Assets Applicable to Common Shares – 100%  

$

553,760,857

   

Nuveen Investments
36



Investments in Derivatives as of January 31, 2014

Interest Rate Swaps outstanding:

Counterparty

  Notional
Amount
  Fund
Pay/Receive
Floating Rate
 

Floating Rate Index

  Fixed Rate
(Annualized)
  Fixed Rate
Payment
Frequency
  Effective
Date (10)
  Termination
Date
  Unrealized
Appreciation
(Depreciation) (9)
 

JPMorgan

 

$

84,375,000

   

Receive

  1-Month USD-LIBOR    

1.498

%

 

Monthly

 

12/01/14

 

12/01/18

 

$

878,194

   

JPMorgan

   

84,375,000

   

Receive

  1-Month USD-LIBOR    

1.995

   

Monthly

 

12/01/14

 

12/01/20

   

1,927,811

   
   

$

168,750,000

                           

$

2,806,005

   

  For Fund portfolio compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

(1)  All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

(2)  Ratings: Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

(3)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(4)  For fair value measurement disclosure purposes, $25 Par (or similar) Retail Preferred classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(5)  Investment, or portion of investment, is out on loan as described in Note 8 – Borrowing Arrangements. The total value of investments out on loan as of the end of the reporting period was $175,206,500.

(6)  Perpetual security. Maturity date is not applicable.

(7)  The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of the end of the reporting period, investments with a value of $558,596,196 have been pledged as collateral for Borrowings.

(8)  Borrowings as a percentage of Total Investments is 29.1%.

(9)  Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period.

(10)  Effective date represents the date on which both the Fund and Counterparty commence interest payment accruals on each contract.

N/A  Not applicable.

WI/DD  Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.

144A  Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

Reg S  Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

USD-LIBOR  United States Dollar – London Inter-Bank Offered Rate.

See accompanying notes to financial statements.

Nuveen Investments
37



JPW

Nuveen Flexible Investment Income Fund

Portfolio of Investments  January 31, 2014 (Unaudited)

Shares  

Description (1)

             

Value

 
   

LONG-TERM INVESTMENTS – 140.3% (98.7% of Total Investments)

 
   

COMMON STOCKS – 18.2% (12.8% of Total Investments)

 
   

Automobiles – 0.8%

 
  35,000    

Ford Motor Company

                         

$

523,600

   
   

Capital Markets – 5.3%

 
  55,800    

Ares Capital Corporation

                           

988,218

   
  7,800    

Arlington Asset Investment Corporation

                           

204,750

   
  14,800    

FBR Capital Markets Corporation, (2)

                           

359,048

   
  69,028    

Medley Capital Corporation

                           

951,896

   
  64,800    

TCP Capital Corporation

                           

1,122,336

   
    Total Capital Markets    

3,626,248

   
   

Commercial Banks – 0.8%

 
  12,000    

Wells Fargo & Company

                           

544,080

   
   

Communications Equipment – 0.8%

 
  44,200    

Ericsson LM Telefonaktiebolaget

                           

543,218

   
   

Diversified Financial Services – 0.7%

 
  10,100    

Citigroup Inc.

                           

479,043

   
   

Diversified Telecommunication Services – 0.7%

 
  17,300    

CenturyLink Inc.

                           

499,278

   
   

Energy Equipment & Services – 0.8%

 
  9,700    

Baker Hughes Incorporated

                           

549,408

   
   

Food & Staples Retailing – 0.7%

 
  55,600    

Metro AG, (4)

                           

458,722

   
   

Food Products – 0.8%

 
  69,600    

Orkla ASA

                           

545,664

   
   

Hotels, Restaurants & Leisure – 0.8%

 
  16,700    

Norwegian Cruise Line Holdings Limited, (2)

                           

584,834

   
   

Insurance – 0.7%

 
  10,600    

American International Group, Inc.

                           

508,376

   
   

Life Sciences Tools & Services – 0.8%

 
  4,400    

Bio-Rad Laboratories Inc., (2)

                           

559,328

   
   

Machinery – 0.8%

 
  13,000    

Woodward Governor Company

                           

557,050

   
   

Oil, Gas & Consumable Fuels – 2.1%

 
  22,600    

Energy Transfer Equity LP

                           

942,872

   
  9,200    

Tesoro Corporation

                           

473,984

   
    Total Oil, Gas & Consumable Fuels    

1,416,856

   
   

Pharmaceuticals – 0.9%

 
  13,400    

Teva Pharmaceutical Industries Limited, Sponsored ADR

                           

598,042

   

Nuveen Investments
38



Shares  

Description (1)

             

Value

 
   

Semiconductors & Equipment – 0.7%

 
  21,900    

Microsemi Corporation, (2)

                         

$

513,336

   
    Total Common Stocks (cost $12,437,038)    

12,507,083

   
Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
   

CONVERTIBLE PREFERRED SECURITIES – 0.4% (0.3% of Total Investments)

 
   

Real Estate – 0.4%

 
  12,100    

American Homes 4 Rent, (2)

   

5.000

%

         

N/R

 

$

297,055

   
    Total Convertible Preferred Securities (cost $302,498)    

297,055

   
Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
   

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 99.4% (69.9% of Total Investments)

 
   

Capital Markets – 14.4%

 
  22,259    

Affiliated Managers Group Inc.

   

6.375

%

         

BBB

 

$

528,874

   
  29,640    

Allied Capital Corporation

   

6.875

%

         

BBB

   

713,731

   
  23,400    

Apollo Investment Corporation

   

6.875

%

         

BBB

   

535,158

   
  14,844    

Apollo Investment Corporation

   

6.625

%

         

BBB

   

333,990

   
  14,170    

Ares Capital Corporation

   

7.000

%

         

BBB

   

368,420

   
  37,872    

BGC Partners Inc.

   

8.125

%

         

BBB–

   

996,034

   
  39,444    

Fifth Street Finance Corporation

   

6.125

%

         

BBB–

   

891,434

   
  2,100    

Fifth Street Finance Corporation

   

5.875

%

         

BBB–

   

47,880

   
  15,212    

Hercules Technology Growth Capital Incorporated

   

7.000

%

         

N/R

   

392,028

   
  15,769    

Hercules Technology Growth Capital Incorporated

   

7.000

%

         

N/A

   

405,894

   
  3,300    

JMP Group Inc., (8)

   

7.250

%

         

N/R

   

82,500

   
  28,076    

Ladenburg Thalmann Financial Services Inc.

   

8.000

%

         

N/R

   

645,748

   
  2,355    

Medley Capital Corporation

   

6.125

%

         

N/R

   

55,743

   
  43,543    

MVC Capital Incorporated

   

7.250

%

         

N/A

   

1,101,202

   
  15,255    

Oxford Lane Capital Corporation

   

7.500

%

         

N/R

   

356,052

   
  15,300    

Prosepect Capital Corporation, Convertible Bond

   

6.950

%

         

BBB

   

389,385

   
  26,150    

Saratoga Investment Corporation

   

7.500

%

         

N/R

   

654,012

   
  30,000    

Solar Capital Limited

   

6.750

%

         

BBB–

   

649,500

   
  30,295    

Triangle Capital Corporation

   

6.375

%

         

N/A

   

739,198

   
    Total Capital Markets    

9,886,783

   
   

Commercial Banks – 12.1%

 
  29,660    

Boston Private Financial Holdings Inc.

   

6.950

%

         

N/R

   

686,629

   
  19,300    

City National Corporation

   

6.750

%

         

BBB–

   

510,485

   
  6,100    

Fifth Third Bancorp., (2)

   

6.625

%

         

BBB–

   

155,550

   
  26,850    

First Horizon National Corporation

   

6.200

%

         

Ba3

   

585,062

   
  21,871    

First Niagara Finance Group

   

8.625

%

         

BB+

   

626,167

   
  19,200    

First Republic Bank of San Francisco

   

6.200

%

         

BBB

   

451,008

   
  26,626    

FNB Corporation

   

7.250

%

         

Ba3

   

700,530

   
  24,600    

Morgan Stanley

   

7.125

%

         

BB+

   

641,076

   
  24,873    

Private Bancorp Incorporated

   

7.125

%

         

N/A

   

626,302

   
  22,114    

Regions Financial Corporation

   

6.375

%

         

BB

   

515,477

   
  12,697    

TCF Financial Corporation

   

7.500

%

         

BB

   

323,900

   
  13,050    

TCF Financial Corporation

   

6.450

%

         

BB

   

308,372

   
  30,000    

Texas Capital Bancshares

   

6.500

%

         

BB+

   

682,800

   
  36,003    

Twenty First Century Fox Inc.

   

8.000

%

         

N/R

   

928,517

   
  26,663    

Webster Financial Corporation

   

6.400

%

         

Ba1

   

602,584

   
    Total Commercial Banks    

8,344,459

   
   

Consumer Finance – 1.9%

 
  26,325    

Discover Financial Services

   

6.500

%

         

BB

   

628,641

   
  15,150    

GMAC Capital Trust I

   

8.125

%

         

B

   

414,807

   
  6,980    

HSBC Finance Corporation

   

6.360

%

         

A

   

164,798

   
  3,500    

SLM Corporation

   

6.000

%

         

BBB–

   

70,315

   
    Total Consumer Finance    

1,278,561

   

Nuveen Investments
39



JPW  Nuveen Flexible Investment Income Fund
Portfolio of Investments
(continued)  January 31, 2014 (Unaudited)

Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
   

Diversified Financial Services – 5.0%

 
  18,100    

Citigroup Inc.

   

7.125

%

         

BB+

 

$

471,505

   
  2,295    

Intl FCStone Inc.

   

8.500

%

         

N/R

   

57,352

   
  26,362    

KCAP Financial Inc.

   

7.375

%

         

N/A

   

678,822

   
  36,145    

KKR Financial Holdings LLC

   

7.375

%

         

BB+

   

888,083

   
  29,075    

Main Street Capital Corporation

   

6.125

%

         

N/R

   

694,020

   
  26,818    

PennantPark Investment Corporation

   

6.250

%

         

BBB–

   

651,677

   
    Total Diversified Financial Services    

3,441,459

   
   

Diversified Telecommunication Services – 1.4%

 
  26,300    

Qwest Corporation

   

7.500

%

         

BBB–

   

660,130

   
  12,700    

Qwest Corporation

   

7.375

%

         

BBB–

   

317,627

   
    Total Diversified Telecommunication Services    

977,757

   
   

Health Care Providers & Services – 1.2%

 
  31,600    

Adcare Health Systems Inc.

   

10.875

%

         

N/R

   

853,200

   
   

Household Durables – 1.0%

 
  26,285    

Pitney Bowes Incorporated

   

6.700

%

         

BBB

   

656,074

   
   

Insurance – 13.0%

 
  14,061    

American Financial Group

   

6.375

%

         

BBB+

   

348,994

   
  19,952    

Arch Capital Group Limited

   

6.750

%

         

BBB

   

495,807

   
  21,038    

Argo Group US Inc.

   

6.500

%

         

BBB–

   

448,320

   
  3,720    

Aspen Insurance Holdings Limited

   

7.401

%

         

BBB–

   

95,827

   
  34,653    

Aspen Insurance Holdings Limited

   

7.250

%

         

BBB–

   

881,919

   
  15,504    

Axis Capital Holdings Limited

   

6.875

%

         

BBB

   

384,809

   
  2,600    

Endurance Specialty Holdings Limited

   

7.750

%

         

BBB–

   

67,860

   
  38,065    

Endurance Specialty Holdings Limited

   

7.500

%

         

BBB–

   

978,271

   
  17,148    

Hanover Insurance Group

   

6.350

%

         

Ba1

   

370,911

   
  20,397    

Maiden Holdings NA Limited

   

8.250

%

         

BBB–

   

502,582

   
  19,125    

Maiden Holdings NA Limited

   

8.000

%

         

BBB–

   

472,196

   
  22,100    

Maiden Holdings NA Limited

   

7.750

%

         

BBB–

   

503,880

   
  17,132    

MetLife Inc.

   

6.500

%

         

Baa2

   

427,101

   
  9,025    

PartnerRe Limited

   

7.250

%

         

BBB+

   

233,116

   
  26,414    

PartnerRe Limited

   

6.500

%

         

BBB+

   

645,822

   
  20,856    

Protective Life Corporation

   

6.250

%

         

BBB

   

482,191

   
  5,953    

Protective Life Corporation

   

6.000

%

         

BBB

   

137,157

   
  13,250    

Prudential PLC

   

6.750

%

         

A–

   

334,165

   
  12,273    

Prudential PLC

   

6.500

%

         

A–

   

308,052

   
  12,473    

RenaissanceRe Holdings Limited

   

6.080

%

         

BBB+

   

284,010

   
  26,375    

Selective Insurance Group

   

5.875

%

         

BBB+

   

547,545

   
    Total Insurance    

8,950,535

   
   

Marine – 1.5%

 
  8,400    

Costamare Inc., (2)

   

8.500

%

         

N/R

   

209,160

   
  24,024    

Costamare Inc.

   

7.625

%

         

N/R

   

556,156

   
  1,790    

International Shipholding Corporation

   

9.000

%

         

N/R

   

179,018

   
  2,700    

Navios Maritime Holdings Inc., (2)

   

8.750

%

         

N/R

   

65,151

   
    Total Marine    

1,009,485

   
   

Multi-Utilities – 0.4%

 
  11,862    

DTE Energy Company

   

6.500

%

         

Baa1

   

293,585

   
   

Oil, Gas & Consumable Fuels – 6.1%

 
  2,400    

Callon Petroleum Company

   

10.000

%

         

N/R

   

114,528

   
  16,379    

Magnum Hunter Resources Corporation

   

8.000

%

         

N/A

   

779,640

   
  14,900    

Miller Energy Resources Inc.

   

10.500

%

         

N/A

   

356,110

   
  30,000    

Nustar Logistics Limited Partnership

   

7.625

%

         

Ba2

   

787,500

   
  43,850    

Teekay Offshore Partners LP

   

7.250

%

         

N/R

   

1,091,865

   

Nuveen Investments
40



Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
    Oil, Gas & Consumable Fuels (continued)  
  16,000    

Tsakos Energy Navigation Limited

   

8.875

%

         

N/R

 

$

377,760

   
  26,425    

Vanguard Natural Resources LLC

   

7.875

%

         

N/R

   

704,755

   
    Total Oil, Gas & Consumable Fuels    

4,212,158

   
   

Real Estate – 35.3%

 
  27,675    

AG Mortgage Investment Trust

   

8.000

%

         

N/A

   

618,813

   
  21,425    

Annaly Capital Management

   

7.625

%

         

N/A

   

492,775

   
  18,900    

Annaly Capital Management

   

7.500

%

         

N/R

   

430,164

   
  12,490    

Apollo Commercial Real Estate Finance

   

8.625

%

         

N/A

   

312,999

   
  27,000    

Apollo Residential Mortgage Inc.

   

8.000

%

         

N/A

   

615,330

   
  26,525    

Arbor Realty Trust Incorporated

   

8.250

%

         

N/R

   

663,656

   
  14,213    

Ashford Hospitality Trust Inc.

   

9.000

%

         

N/A

   

369,680

   
  8,800    

Campus Crest Communities

   

8.000

%

         

Ba1

   

220,000

   
  30,000    

CBL & Associates Properties Inc.

   

7.375

%

         

BB

   

722,100

   
  35,000    

Cedar Shopping Centers Inc., Series A

   

7.250

%

         

N/A

   

805,350

   
  25,760    

Chesapeake Lodging Trust

   

7.750

%

         

N/A

   

642,454

   
  2,203    

Colony Financial Inc.

   

8.500

%

         

N/R

   

55,824

   
  6,248    

CommomWealth REIT

   

7.250

%

         

Ba1

   

141,392

   
  20,000    

Coresite Realty Corporation

   

7.250

%

         

N/A

   

463,600

   
  37,273    

Corporate Office Properties Trust

   

7.375

%

         

BB

   

910,207

   
  10,400    

CYS Investments Inc.

   

7.750

%

         

N/A

   

225,160

   
  12,716    

CYS Investments Inc.

   

7.500

%

         

N/R

   

265,764

   
  28,336    

Digital Realty Trust Inc.

   

7.000

%

         

Baa3

   

658,245

   
  37,508    

Dupont Fabros Technology

   

7.875

%

         

Ba2

   

935,450

   
  200    

Dupont Fabros Technology

   

7.625

%

         

Ba2

   

4,800

   
  12,800    

Dynex Capital Inc.

   

8.500

%

         

N/A

   

310,272

   
  10,813    

Dynex Capital Inc.

   

7.625

%

         

N/R

   

238,102

   
  10,000    

EPR Properties Inc.

   

6.625

%

         

Baa3

   

216,800

   
  13,286    

First Potomac Realty Trust

   

7.750

%

         

N/R

   

337,597

   
  9,600    

Hospitality Properties Trust

   

7.125

%

         

Baa3

   

231,168

   
  25,775    

Inland Real Estate Corporation

   

8.125

%

         

N/R

   

662,418

   
  26,285    

Invesco Mortgage Capital Inc.

   

7.750

%

         

N/A

   

615,332

   
  25,900    

Kennedy-Wilson Inc.

   

7.750

%

         

BB–

   

652,680

   
  25,350    

Kite Realty Group Trust

   

8.250

%

         

N/A

   

644,144

   
  10,000    

LaSalle Hotel Properties

   

6.375

%

         

N/R

   

215,000

   
  12,100    

MFA Financial Inc.

   

8.000

%

         

N/A

   

315,084

   
  20,051    

MFA Financial Inc.

   

7.500

%

         

N/A

   

437,112

   
  20,925    

Northstar Realty Finance Corporation

   

8.875

%

         

N/A

   

528,356

   
  24,048    

Northstar Realty Finance Corporation

   

8.250

%

         

N/R

   

580,278

   
  15,000    

Pebblebrook Hotel Trust

   

7.875

%

         

N/A

   

383,250

   
  13,175    

Pebblebrook Hotel Trust

   

8.000

%

         

N/A

   

335,040

   
  17,725    

Penn Real Estate Investment Trust

   

8.250

%

         

N/A

   

446,670

   
  8,844    

Penn Real Estate Investment Trust

   

7.375

%

         

N/A

   

213,140

   
  29,150    

Rait Financial Trust

   

7.750

%

         

N/R

   

671,325

   
  41,023    

Retail Properties of America

   

7.000

%

         

N/A

   

922,197

   
  20,000    

Sabra Health Care Real Estate Investment Trust

   

7.125

%

         

B2

   

495,000

   
  20,984    

Senior Housing Properties Trust

   

5.625

%

         

BBB–

   

413,595

   
  7,368    

STAG Industrial Inc.

   

9.000

%

         

BB

   

196,210

   
  13,829    

STAG Industrial Inc.

   

6.625

%

         

BB

   

317,376

   
  13,300    

Strategic Hotel Capital Inc., Series B

   

8.250

%

         

N/R

   

321,461

   
  31,295    

Strategic Hotel Capital Inc., Series C

   

8.250

%

         

N/R

   

759,843

   
  26,919    

Summit Hotel Properties Inc.

   

7.875

%

         

N/A

   

668,130

   
  28,574    

Sunstone Hotel Investors Inc.

   

8.000

%

         

N/A

   

722,922

   
  10,282    

UMH Properties Inc.

   

8.250

%

         

N/R

   

261,883

   
  19,113    

Urstadt Biddle Properties

   

7.125

%

         

N/A

   

447,244

   
  28,111    

Winthrop Realty Trust Inc.

   

9.250

%

         

N/R

   

746,909

   
  17,600    

Winthrop Realty Trust Inc.

   

7.750

%

         

N/A

   

445,808

   
    Total Real Estate    

24,306,109

   

Nuveen Investments
41



JPW  Nuveen Flexible Investment Income Fund
Portfolio of Investments
(continued)  January 31, 2014 (Unaudited)

Shares  

Description (1)

 

Coupon

     

Ratings (3)

 

Value

 
   

Thrifts & Mortgage Finance – 2.6%

 
  27,098    

Astoria Financial Corporation

   

6.500

%

         

BB

 

$

613,770

   
  31,669    

Everbank Financial Corporation

   

6.750

%

         

N/A

   

729,337

   
  22,600    

Federal Agricultural Mortgage Corporation

   

5.875

%

         

Aaa

   

463,300

   
    Total Thrifts & Mortgage Finance    

1,806,407

   
   

U.S. Agency – 2.6%

 
  6,600    

AgriBank FCB, (8)

   

6.875

%

         

A–

   

663,507

   
  7,950    

Cobank Agricultural Credit Bank, (8)

   

6.125

%

         

A–

   

672,272

   
  4,000    

Farm Credit Bank of Texas, 144A, (8)

   

6.750

%

         

Baa1

   

407,500

   
    Total U.S. Agency    

1,743,279

   
   

Wireless Telecommunication Services – 0.9%

 
  26,203    

United States Cellular Corporation

   

6.950

%

         

Baa2

   

648,783

   
    Total $25 Par (or similar) Retail Preferred (cost $70,312,222)    

68,408,634

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

CORPORATE BONDS – 12.0% (8.4% of Total Investments)

 
   

Capital Markets – 0.1%

 

$

50

   

Walter Investment Management Corporation , First Lien Term Loan, 144A

   

7.875

%

 

12/15/21

 

B

 

$

50,625

   
   

Commercial Services & Supplies – 3.0%

 
  1,000    

Iron Mountain Inc.

   

5.750

%

 

8/15/24

 

B1

   

935,000

   
  200    

R.R. Donnelley & Sons Company

   

7.000

%

 

2/15/22

 

BB–

   

213,000

   
  940    

R.R. Donnelley & Sons Company

   

6.500

%

 

11/15/23

 

BB–

   

944,700

   
  2,140    

Total Commercial Services & Supplies

                           

2,092,700

   
   

Diversified Financial Services – 2.6%

 
  325    

Fly Leasing Limited

   

6.750

%

 

12/15/20

 

BB

   

329,063

   
  375    

Icahn Enterprises Finance

   

6.000

%

 

8/01/20

 

BBB–

   

386,719

   
  1,000    

Jefferies Finance LLC Corporation, 144A

   

7.375

%

 

4/01/20

 

B+

   

1,047,500

   
  1,700    

Total Diversified Financial Services

                           

1,763,282

   
   

Diversified Telecommunication Services – 2.4%

 
  1,650    

Frontier Communications Corporation

   

7.125

%

 

1/15/23

 

Ba2

   

1,629,371

   
   

Oil, Gas & Consumable Fuels – 3.9%

 
  430    

Breitburn Energy Partners LP

   

7.875

%

 

4/15/22

 

B–

   

457,414

   
  1,000    

DCP Midstream LLC, 144A

   

5.850

%

 

5/21/43

 

Baa3

   

925,000

   
  1,000    

NuStar Logistics LP

   

6.750

%

 

2/01/21

 

BB+

   

1,035,000

   
  275    

Vanguard Natural Resources Finance

   

7.875

%

 

4/01/20

 

B

   

290,814

   
  2,705    

Total Oil, Gas & Consumable Fuels

                           

2,708,228

   

$

8,245

   

Total Corporate Bonds (cost $8,094,797)

                           

8,244,206

   
Principal
Amount (000)/
Shares
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 8.2% (5.8% of Total Investments)

 
   

Commercial Banks – 1.5%

 
  1,000    

Zions Bancorporation

   

7.200

%

   

N/A (5)

   

BB

 

$

1,015,000

   
   

Diversified Financial Services – 2.1%

 
  100    

ING US Inc.

   

5.650

%

 

5/15/53

 

Ba1

   

96,000

   
  1,075    

JPMorgan Chase & Company

   

5.150

%

   

N/A (5)

   

BBB

   

976,906

   
  375    

JPMorgan Chase & Company

   

6.750

%

   

N/A (5)

   

BBB

   

380,063

   
      Total Diversified Financial Services    

1,452,969

   

Nuveen Investments
42



Principal
Amount (000)/
Shares
 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

 
   

Insurance – 4.6%

 
  375    

Liberty Mutual Group, 144A

   

7.800

%

 

3/15/37

 

Baa3

 

$

403,125

   
  1,175    

National Financial Services Inc.

   

6.750

%

 

5/15/37

 

Baa2

   

1,155,907

   
  675    

StanCorp Financial Group Inc.

   

6.900

%

 

6/01/67

 

BBB–

   

671,625

   
  975    

XL Capital Ltd

   

6.500

%

 

N/A (5)

 

BBB

   

955,500

   
    Total Insurance    

3,186,157

   
   

Total $1,000 Par (or similar) Institutional Preferred (cost $5,643,523)

                           

5,654,126

   
Shares  

Description (1), (9)

             

Value

 
   

INVESTMENT COMPANIES – 2.1% (1.5% of Total Investments)

 
  29,936    

Cushing Royalty and Income Fund

                         

$

535,854

   
  170,700    

MFS Intermediate Income Trust

                           

903,003

   
  1,100    

Oxford Lane Capital Corporation

                           

19,399

   
    Total Investment Companies (cost $1,443,505)    

1,458,256

   
    Total Long-Term Investments (cost $98,233,583)    

96,569,360

   
Principal
Amount (000)
 

Description (1)

 

Coupon

 

Maturity

     

Value

 
   

SHORT-TERM INVESTMENTS – 1.9% (1.3% of Total Investments)

 

$

1,314

  Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/31/14,
repurchase price $1,313,604, collateralized by $1,290,000 U.S. Treasury Notes, 2.625%,
due 11/15/20, value $1,343,361
  0.000

%

  2/03/14

         

$

1,313,604

 
    Total Short-Term Investments (cost $1,313,604)    

1,313,604

   
    Total Investments (cost $99,547,187) – 142.2%    

97,882,964

   
    Borrowings – (40.0)% (6), (7)    

(27,500,000

)

 
    Other Assets Less Liabilities – (2.2)%    

(1,559,126

)

 
    Net Assets Applicable to Common Shares – 100%  

$

68,823,838

   

  For Fund portfolio compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

(1)  All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

(2)  Non-income producing; issuer has not declared a dividend within the past twelve months.

(3)  Ratings: Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investors Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

(4)  For fair value measurement disclosure purposes, Common Stock classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(5)  Perpetual security. Maturity date is not applicable.

(6)  The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of the end of the reporting period, investments with a value of $61,822,683 have been pledged as collateral for Borrowings.

(7)  Borrowings as a percentage of Total Investments is 28.1%.

(8)  For fair value measurement disclosure purposes, $25 Par (or similar) Retail Preferred classified as Level 2. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information.

(9)  A copy of the most recent financial statements for the investment companies in which the Fund invests can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov.

N/A  Not applicable.

144A  Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

ADR  American Depositary Receipt.

REIT  Real Estate Investment Trust.

See accompanying notes to financial statements.

Nuveen Investments
43




Statement of

Assets and Liabilities  January 31, 2014 (Unaudited)

  Preferred
Income
Opportunities
(JPC)
  Preferred
and Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Assets

 

Long-term investments, at value (cost $1,313,776,811, $752,804,824 and $98,233,583, respectively)

 

$

1,345,935,939

   

$

766,885,114

   

$

96,569,360

   

Short-term investments, at value (cost approximates value)

   

22,741,190

     

6,796,665

     

1,313,604

   

Unrealized appreciation on interest rate swaps, net

   

6,875,216

     

2,806,005

     

   

Receivable for:

 

Dividends

   

1,299,532

     

178,016

     

162,999

   

Interest

   

8,579,452

     

7,130,455

     

258,897

   

Investments sold

   

10,880,475

     

3,032,944

     

931,126

   

Reclaims

   

66,216

     

34,977

     

   

Other assets

   

172,395

     

18,828

     

397

   

Total assets

   

1,396,550,415

     

786,883,004

     

99,236,383

   

Liabilities

 

Borrowings

   

402,500,000

     

225,000,000

     

27,500,000

   

Unrealized depreciation on interest rate swaps

   

2,472,560

     

     

   

Payable for:

 

Dividends

   

6,032,938

     

3,769,579

     

446,047

   

Investments purchased

   

9,235,849

     

3,586,306

     

2,335,849

   

Accrued expenses:

 

Management fees

   

963,143

     

567,727

     

70,682

   

Interest on borrowings

   

22,643

     

13,313

     

20,373

   

Trustees fees

   

196,386

     

20,804

     

856

   

Other

   

287,051

     

164,418

     

38,738

   

Total liabilities

   

421,710,570

     

233,122,147

     

30,412,545

   

Net assets applicable to common shares

 

$

974,839,845

   

$

553,760,857

   

$

68,823,838

   

Common shares outstanding

   

96,990,341

     

22,752,777

     

3,705,250

   
Net asset value ("NAV") per common share outstanding (net assets applicable
to common shares, divided by common shares outstanding)
 

$

10.05

   

$

24.34

   

$

18.57

   

Net assets applicable to common shares consist of:

 

Common shares, $.01 par value per share

 

$

969,903

   

$

227,528

   

$

37,053

   

Paid-in surplus

   

1,291,757,040

     

541,836,890

     

70,585,222

   

Undistributed (Over-distribution of) net investment income

   

(5,936,429

)

   

(147,971

)

   

(77,890

)

 

Accumulated net realized gain (loss)

   

(348,512,024

)

   

(5,041,885

)

   

(56,324

)

 

Net unrealized appreciation (depreciation)

   

36,561,355

     

16,886,295

     

(1,664,223

)

 

Net assets applicable to common shares

 

$

974,839,845

   

$

553,760,857

   

$

68,823,838

   

Authorized shares:

 

Common

   

Unlimited

     

Unlimited

     

Unlimited

   

Preferred

   

Unlimited

     

Unlimited

     

Unlimited

   

See accompanying notes to financial statements.

Nuveen Investments
44



Statement of

Operations  Six Months Ended January 31, 2014 (Unaudited)

    Preferred
Income
Opportunities
(JPC)
  Preferred
and Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Investment Income

 

Dividends (net of tax withheld of $41,646, $38,269 and $486, respectively)

 

$

25,567,309

   

$

8,262,101

   

$

2,823,446

   

Interest

   

21,639,051

     

18,936,872

     

352,345

   

Other income

   

87,208

     

48,750

     

   

Total investment income

   

47,293,568

     

27,247,723

     

3,175,791

   

Expenses

 

Management fees

   

5,693,899

     

3,391,582

     

404,972

   

Interest expense on borrowings

   

2,214,576

     

1,332,594

     

111,126

   

Shareholder servicing agent fees and expenses

   

2,643

     

119

     

58

   

Custodian fees and expenses

   

117,314

     

67,825

     

12,800

   

Trustees fees and expenses

   

19,398

     

10,975

     

1,267

   

Professional fees

   

41,323

     

43,062

     

14,679

   

Shareholder reporting expenses

   

109,468

     

68,523

     

18,412

   

Stock exchange listing fees

   

15,616

     

4,344

     

60

   

Investor relations expenses

   

33,224

     

39,827

     

5,204

   

Other expenses

   

21,907

     

19,408

     

3,497

   

Total expenses

   

8,269,368

     

4,978,259

     

572,075

   

Net investment income (loss)

   

39,024,200

     

22,269,464

     

2,603,716

   

Realized and Unrealized Gain (Loss)

 

Net realized gain (loss) from:

 

Investments and foreign currency

   

(3,206,087

)

   

(5,023,403

)

   

(63,024

)

 

Options written

   

30,270

     

     

   

Swaps

   

(1,003,933

)

   

     

   

Change in net unrealized appreciation (depreciation) of:

 

Investments and foreign currency

   

(16,567,556

)

   

2,435,462

     

(1,024,790

)

 

Swaps

   

(2,060,410

)

   

(2,037,414

)

   

   

Net realized and unrealized gain (loss)

   

(22,807,716

)

   

(4,625,355

)

   

(1,087,814

)

 

Net increase (decrease) in net assets applicable to common shares from operations

 

$

16,216,484

   

$

17,644,109

   

$

1,515,902

   

See accompanying notes to financial statements.

Nuveen Investments
45



Statement of

Changes in Net Assets (Unaudited)

   

Preferred Income Opportunities (JPC)

 

Preferred and Income Term (JPI)

 
    Six Months
Ended
1/31/14
  Seven Months
Ended
7/31/13
  Year
Ended
12/31/12
  Six Months
Ended
1/31/14
  Year
Ended
7/31/13
 

Operations

 

Net investment income (loss)

 

$

39,024,200

   

$

44,289,492

   

$

73,402,758

   

$

22,269,464

   

$

42,555,776

   

Net realized gain (loss) from:

 

Investments and foreign currency

   

(3,206,087

)

   

29,849,203

     

37,117,450

     

(5,023,403

)

   

13,635,080

   

Securities sold short

   

     

     

(1,666,640

)

   

     

   

Options written

   

30,270

     

     

2,565,730

     

     

   

Options purchased

   

     

     

(158,961

)

   

     

   

Swaps

   

(1,003,933

)

   

(1,164,775

)

   

(1,942,963

)

   

     

   

Change in net unrealized appreciation (depreciation) of:

 

Investments and foreign currency

   

(16,567,556

)

   

(42,091,501

)

   

120,367,362

     

2,435,462

     

11,980,059

   

Securities sold short

   

     

     

1,293,234

     

     

   

Options written

   

     

     

(1,365,960

)

   

     

   

Options purchased

   

     

     

158,251

     

     

   

Swaps

   

(2,060,410

)

   

10,069,799

     

754,389

     

(2,037,414

)

   

4,843,419

   
Net increase (decrease) in net assets applicable to common shares
from operations
   

16,216,484

     

40,952,218

     

230,524,650

     

17,644,109

     

73,014,334

   

Distributions to Common Shareholders

 

From net investment income

   

(36,836,932

)

   

(42,976,421

)

   

(73,683,563

)

   

(23,071,316

)

   

(42,294,495

)

 

From accumulated net realized gains

   

     

     

     

(11,110,181

)

   

(2,213,845

)

 
Decrease in net assets applicable to common shares from
distributions to common shareholders
   

(36,836,932

)

   

(42,976,421

)

   

(73,683,563

)

   

(34,181,497

)

   

(44,508,340

)

 

Capital Share Transactions

 

Common shares:

 

Proceeds from sale of shares, net of offering costs

   

     

     

     

     

65,316,610

   
Net proceeds from shares issued to shareholders due to
reinvestment of distributions
   

     

     

     

     

223,182

   
Net increase (decrease) in net assets applicable to common shares
from capital share transactions
   

     

     

     

     

65,539,792

   

Net increase (decrease) in net assets applicable to common shares

   

(20,620,448

)

   

(2,024,203

)

   

156,841,087

     

(16,537,388

)

   

94,045,786

   

Net assets applicable to common shares at the beginning of period

   

995,460,293

     

997,484,496

     

840,643,409

     

570,298,245

     

476,252,459

   

Net assets applicable to common shares at the end of period

 

$

974,839,845

   

$

995,460,293

   

$

997,484,496

   

$

553,760,857

   

$

570,298,245

   
Undistributed (Over-distribution of) net investment income at the
end of period
 

$

(5,936,429

)

 

$

(8,123,697

)

 

$

(8,330,468

)

 

$

(147,971

)

 

$

653,881

   

See accompanying notes to financial statements.

Nuveen Investments
46



   

Flexible Investment Income (JPW)

 
    Six Months
Ended
1/31/14
  For the Period
6/25/13
(commencement
of operations)
through 7/31/13
 

Operations

 

Net investment income (loss)

 

$

2,603,716

   

$

119,563

   

Net realized gain (loss) from:

 

Investments and foreign currency

   

(63,024

)

   

6,700

   

Securities sold short

   

     

   

Options written

   

     

   

Options purchased

   

     

   

Swaps

   

     

   

Change in net unrealized appreciation (depreciation) of:

 

Investments and foreign currency

   

(1,024,790

)

   

(639,433

)

 

Securities sold short

   

     

   

Options written

   

     

   

Options purchased

   

     

   

Swaps

   

     

   
Net increase (decrease) in net assets applicable to common shares
from operations
   

1,515,902

     

(513,170

)

 

Distributions to Common Shareholders

 

From net investment income

   

(2,801,169

)

   

   

From accumulated net realized gains

   

     

   
Decrease in net assets applicable to common shares from
distributions to common shareholders
   

(2,801,169

)

   

   

Capital Share Transactions

 

Common shares:

 

Proceeds from sale of shares, net of offering costs

   

3,812,000

     

66,710,000

   
Net proceeds from shares issued to shareholders due to
reinvestment of distributions
   

     

   
Net increase (decrease) in net assets applicable to common shares
from capital share transactions
   

3,812,000

     

66,710,000

   

Net increase (decrease) in net assets applicable to common shares

   

2,526,733

     

66,196,830

   

Net assets applicable to common shares at the beginning of period

   

66,297,105

     

100,275

   

Net assets applicable to common shares at the end of period

 

$

68,823,838

   

$

66,297,105

   
Undistributed (Over-distribution of) net investment income at the
end of period
 

$

(77,890

)

 

$

119,563

   

See accompanying notes to financial statements.

Nuveen Investments
47



Statement of

Cash Flows  Six Months Ended January 31, 2014 (Unaudited)

    Preferred
Income
Opportunities
(JPC)
  Preferred
and Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Cash Flows from Operating Activities:

 

Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations

 

$

16,216,484

   

$

17,644,109

   

$

1,515,902

   
Adjustments to reconcile the net increase (decrease) in net assets applicable to common
shares from operations to net cash provided by (used in) operating activities:
 

Purchases of investments

   

(253,674,524

)

   

(165,311,064

)

   

(54,028,291

)

 

Proceeds from sales and maturities of investments

   

268,845,183

     

178,621,997

     

21,621,290

   

Proceeds from (Purchases of) short-term investments, net

   

(8,798,884

)

   

(2,032,659

)

   

464,629

   

Proceeds from (Payments for) swap contracts, net

   

(1,003,933

)

   

     

   

Premiums received for options written

   

30,270

     

     

   

Amortization (Accretion) of premiums and discounts, net

   

174,625

     

213,534

     

(4,804

)

 

(Increase) Decrease in:

 

Receivable for dividends

   

(17,167

)

   

(64,237

)

   

(47,136

)

 

Receivable for interest

   

738,291

     

1,287,202

     

(196,211

)

 

Receivable for investments sold

   

(8,891,079

)

   

(1,498,981

)

   

(931,126

)

 

Receivable for reclaims

   

(249

)

   

(34,977

)

   

   

Other assets

   

22,564

     

31,303

     

(397

)

 

Increase (Decrease) in:

 

Payable for investment purchased

   

404,711

     

691,901

     

1,522,933

   

Accrued management fees

   

(17,099

)

   

(12,140

)

   

21,644

   

Accrued interest on borrowings

   

(2,596

)

   

(1,451

)

   

20,373

   

Accrued Trustees fees

   

3,047

     

3,768

     

254

   

Accrued other expenses

   

(45,641

)

   

(1,937

)

   

(4,524

)

 

Net realized (gain) loss from:

 

Investments and foreign currency

   

3,206,087

     

5,023,403

     

63,024

   

Options written

   

(30,270

)

   

     

   

Swaps

   

1,003,933

     

     

   

Change in net unrealized (appreciation) depreciation of:

 

Investments and foreign currency

   

16,567,556

     

(2,435,462

)

   

1,024,790

   

Swaps

   

2,060,410

     

2,037,414

     

   

Proceeds from litigation settlement

   

40,157

     

     

   

Net cash provided by (used in) operating activities

   

36,831,876

     

34,161,723

     

(28,957,650

)

 

Cash Flows from Financing Activities:

 

Proceeds from borrowings

   

     

     

27,500,000

   

Cash distributions paid to common shareholders

   

(36,831,876

)

   

(34,161,723

)

   

(2,355,122

)

 

Proceeds from sale of shares, net of offering costs

   

     

     

3,812,000

   

Net cash provided by (used in) financing activities

   

(36,831,876

)

   

(34,161,723

)

   

28,956,878

   

Net Increase (Decrease) in Cash

   

     

     

(772

)

 

Cash at the beginning of period

   

     

     

772

   

Cash at the End of Period

 

$

   

$

   

$

   

Supplemental Disclosure of Cash Flow Information

 

  Preferred
Income
Opportunities
(JPC)
  Preferred
and Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Cash paid for interest on borrowings (excluding borrowing costs)

 

$

2,217,172

   

$

1,299,730

   

$

90,753

   

See accompanying notes to financial statements.

Nuveen Investments
48



THIS PAGE INTENTIONALLY LEFT BLANK

Nuveen Investments
49




Financial

Highlights (Unaudited)

Selected data for a common share outstanding throughout each period:

       
       

Investment Operations

 

Less Distributions

             

  Beginning
Common
Share
NAV
  Net
Investment
Income
(Loss)(a)
  Net
Realized/
Unrealized
Gain (Loss)
  Distributions
from Net
Investment
Income to
FundPreferred
Shareholders(b)
  Distributions
from
Accumulated
Net Realized
Gains to
FundPreferred
Shareholders(b)
 

Total

  From Net
Investment
Income to
Common
Share-
holders
  From
Accum-
ulated
Net
Realized
Gains to
Common
Share-
holders
  Return of
Capital to
Common
Share-
holders
 

Total

  Discount
from
Common
Shares
Repurchased
and
Retired
  Ending
Common
Share
NAV
  Ending
Market
Value
 

Preferred Income Opportunities (JPC)

         

Year Ended 7/31:

 
2014(i)  

$

10.26

   

$

.40

   

$

(.23

)

 

$

   

$

   

$

.17

   

$

(.38

)

 

$

   

$

   

$

(.38

)

 

$

   

$

10.05

   

$

8.99

   
2013(h)    

10.28

     

.46

     

(.04

)

   

     

   

.42

     

(.44

)

   

     

     

(.44

)

   

     

10.26

     

9.35

   

Year Ended 12/31:

 

2012

   

8.67

     

.76

     

1.61

     

     

     

2.37

     

(.76

)

   

     

     

(.76

)

   

     

10.28

     

9.71

   

2011

   

9.62

     

.51

     

(.72

)

   

     

     

(.21

)

   

(.75

)

   

     

*

   

(.75

)

   

.01

     

8.67

     

8.01

   

2010

   

8.56

     

.50

     

1.23

     

     

     

1.73

     

(.57

)

   

     

(.11

)

   

(.68

)

   

.01

     

9.62

     

8.35

   

2009

   

5.60

     

.54

     

3.03

     

*

   

     

3.57

     

(.61

)

   

     

(.02

)

   

(.63

)

   

.02

     

8.56

     

7.49

   

2008

   

12.38

     

.86

     

(6.49

)

   

(.15

)

   

     

(5.78

)

   

(.69

)

   

     

(.31

)

   

(1.00

)

   

*

   

5.60

     

4.60

   
   

FundPreferred Shares at End of Period

 

Borrowings at End of Period

 

Preferred Income Opportunities (JPC)

  Aggregate
Amount
Outstanding
(000)
  Liquidation
and Market
Value
Per Share
  Asset
Coverage
Per Share
  Aggregate
Amount
Outstanding
(000)
  Asset
Coverage
Per $1,000
 

Year Ended 7/31:

 
2014(i)  

$

   

$

   

$

   

$

402,500

   

$

3,422

   
2013(h)    

     

     

     

402,500

     

3,473

   

Year Ended 12/31:

 

2012

   

     

     

     

383,750

     

3,599

   

2011

   

     

     

     

348,000

     

3,416

   

2010

   

     

     

     

270,000

     

4,477

   

2009

   

     

     

     

270,000

     

4,111

   

2008

   

118,650

     

25,000

     

142,298

     

145,545

     

5,640

   

(a)  Per share Net Investment Income (Loss) is calculated using the average daily shares method.

(b)  The amounts shown are based on common share equivalents.

(c)  Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

Nuveen Investments
50



       

Ratios/Supplemental Data

 
   

Total Returns

      Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(d)
  Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(d)(e)
     

  Based
on
Common
Share
NAV(c)
  Based
on
Market
Value(c)
  Ending
Net
Assets
Applicable
to Common
Shares (000)
 

Expenses

  Net
Investment
Income (Loss)
 

Expenses

  Net
Investment
Income (Loss)
  Portfolio
Turnover
Rate(g)
 

Preferred Income Opportunities (JPC)

 

Year Ended 7/31:

 
2014(i)    

1.75

%

   

.35

%

 

$

974,840

     

1.70

%***

   

8.02

%***

   

N/A

     

N/A

     

19

%

 
2013(h)    

4.09

     

.63

     

995,460

     

1.67

***

   

7.47

***

   

N/A

     

N/A

     

27

   

Year Ended 12/31:

 

2012

   

28.17

     

31.44

     

997,484

     

1.79

     

7.85

     

N/A

     

N/A

     

123

   

2011

   

(2.23

)

   

4.95

     

840,643

     

1.73

     

5.40

     

1.70

%

   

5.43

%

   

34

   

2010

   

21.06

     

21.28

     

938,844

     

1.67

     

5.39

     

1.54

     

5.52

     

49

   

2009

   

67.37

     

81.73

     

839,846

     

1.80

     

7.76

     

1.57

     

7.99

     

50

   

2008

   

(49.27

)

   

(51.80

)

   

556,698

     

2.47

     

8.14

     

2.04

     

8.57

     

36

   

(d)  • Ratios do not reflect the effect of dividend payments to FundPreferred shareholders, where applicable.

  • Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to FundPreferred shares and/or borrowings, where applicable.

  • Each ratio includes the effect of dividends expense on securities sold short and all interest expense paid and other costs related to borrowings, where applicable as follows:

Preferred Income Opportunities (JPC)

  Ratios of Dividends Expense on
Securities Sold Short to Average
Net Assets Applicable to
Common Shares(f)
  Ratios of Borrowings Interest
Expense to Average Net Assets
Applicable to Common Shares
 

Year Ended 7/31:

 
2014(i)    

%

   

.46

%***

 
2013(h)    

     

.45

***

 

Year Ended 12/31:

 

2012

   

     

.52

   

2011

   

**

   

.43

   

2010

   

**

   

.40

   

2009

   

**

   

.45

   

2008

   

.01

     

.82

   

(e)  After expense reimbursement from the Adviser, where applicable. As of March 31, 2011, the Adviser is no longer reimbursing the Fund for any fees or expenses.

(f)  Effective for periods beginning after December 31, 2011, the Fund no longer makes short sales of securities.

(g)  Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.

(h)  For the seven months ended July 31, 2013.

(i)  For the six months ended January 31, 2014.

N/A  The Fund no longer has a contractual reimbursement agreement with the Adviser.

*  Rounds to less than $.01 per share.

**  Rounds to less than .01%.

***  Annualized.

See accompanying notes to financial statements.

Nuveen Investments
51



Financial Highlights (Unaudited) (continued)

Selected data for a common share outstanding throughout each period:

       
       

Investment Operations

 

Less Distributions

             

Total Returns

 

  Beginning
Common
Share
NAV
  Net
Investment
Income
(Loss)(a)
  Net
Realized/
Unrealized
Gain (Loss)
 

Total

  From
Net
Investment
Income to
Common
Share-
holders
  From
Accumu-
lated Net
Realized
Gains to
Common
Share-
holders
 

Total

  Offering
Costs
  Ending
Common
Share
NAV
  Ending
Market
Value
  Based
on
Common
Share
NAV(b)
  Based
on
Market
Value(b)
 

Preferred and Income Term (JPI)

         

Year Ended 7/31:

 
2014(i)  

$

25.06

   

$

.98

   

$

(.20

)

 

$

.78

   

$

(1.01

)

 

$

(.49

)

 

$

(1.50

)

 

$

   

$

24.34

   

$

22.55

     

3.21

%

   

1.80

%

 

2013

   

23.81

     

1.89

     

1.32

     

3.21

     

(1.86

)

   

(.10

)

   

(1.96

)

   

*

   

25.06

     

23.68

     

13.69

     

.41

   
2012(d)    

23.88

     

*

   

(.02

)

   

(.02

)

   

     

     

     

(.05

)

   

23.81

     

25.50

     

(.23

)

   

2.00

   

Flexible Investment Income (JPW)

         

Year Ended 7/31:

 
2014(i)    

18.91

     

.70

     

(.28

)

   

.42

     

(.76

)

   

     

(.76

)

   

*

   

18.57

     

16.58

     

2.37

     

(12.35

)

 
2013(h)    

19.10

     

.03

     

(.18

)

   

(.15

)

   

     

     

     

(.04

)

   

18.91

     

19.80

     

(.99

)

   

(1.00

)

 
   

Borrowings at End of Period(e)

 

Preferred and Income Term (JPI)

  Aggregate
Amount
Outstanding
(000)
  Asset
Coverage
Per $1,000
 

Year Ended 7/31:

 
2014(i)  

$

225,000

   

$

3,461

   

2013

   

225,000

     

3,535

   

Flexible Investment Income (JPW)

     

Year Ended 7/31:

 
2014(i)    

27,500

     

3,503

   

Nuveen Investments
52



   

Ratios/Supplemental Data

 
        Ratios to Average Net Assets
Applicable to Common Shares(c)
     

  Ending
Net
Assets
Applicable
to Common
Shares (000)
 

Expenses

  Net
Investment
Income (Loss)
  Portfolio
Turnover
Rate(f)
 

Preferred and Income Term (JPI)

 

Year Ended 7/31:

 
2014(i)  

$

553,761

     

1.77

%**

   

7.92

%**

   

21

%

 

2013

   

570,298

     

1.72

     

7.51

     

57

   
2012(d)    

476,252

     

.97

**

   

(.96

)**

   

   

Flexible Investment Income (JPW)

 

Year Ended 7/31:

 
2014(i)    

68,824

     

1.70

**

   

7.63

**

   

25

   
2013(h)    

66,297

     

1.40

**

   

1.93

**

   

3

   

(a)  Per share Net Investment Income (Loss) is calculated using the average daily shares method.

(b)  Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.

Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.

(c)  • Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to borrowings, where applicable.

  • Each ratio includes the effect of all interest expense paid and other costs related to borrowings as follows:

Preferred and Income Term (JPI)

  Ratios of Borrowings Interest Expense to
Average Net Assets Applicable to Common Share(e)
 

Year Ended 7/31:

 
 

2014

(i)

   

.47

%**

 
 

2013

(g)

   

.48

   

Flexible Investment Income (JPW)

     

Year Ended 7/31:

 
 

2014

(j)

   

.35

**

 

(d)  For the period July 26, 2012 (commencement of operations) through July 31, 2012.

(e)  Preferred and Income Term (JPI) and Flexible Investment Income (JPW) did not utilize borrowings prior to the fiscal years ended July 31, 2013 and July 31, 2014, respectively.

(f)  Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.

(g)  For the period August 29, 2012 (first utilization date of borrowings) through July 31, 2013.

(h)  For the period June 25, 2013 (commencement of operations) through July 31, 2013.

(i)  For the six months ended January 31, 2014.

(j)  For the period August 13, 2013 (first utilization date of borrowings) through January 31, 2014.

*  Rounds to less than $.01 per share.

**  Annualized.

See accompanying notes to financial statements.

Nuveen Investments
53




Notes to

Financial Statements (Unaudited)

1. General Information and Significant Accounting Policies

General Information

Fund Information

The funds covered in this report and their corresponding New York Stock Exchange ("NYSE") symbols are as follows (each a "Fund" and collectively, the "Funds"):

•  Nuveen Preferred Income Opportunities Fund (JPC) ("Preferred Income Opportunities (JPC)")

•  Nuveen Preferred and Income Term Fund (JPI) ("Preferred and Income Term (JPI)")

•  Nuveen Flexible Investment Income Fund (JPW) ("Flexible Investment Income (JPW)")

The Funds are registered under the Investment Company Act of 1940, as amended, as diversified closed-end (non-diversified for Preferred and Income Term (JPI)) registered investment companies. Preferred Income Opportunities (JPC), Preferred and Income Term (JPI) and Flexible Investment Income (JPW) were each organized as Massachusetts business trusts on January 27, 2003, April 18, 2012 and March 28, 2013, respectively.

Investment Adviser

The Funds' investment adviser is Nuveen Fund Advisors, LLC (the "Adviser"), a wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). The Adviser is responsible for each Fund's overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with NWQ Investment Management Company, LLC ("NWQ") and Nuveen Asset Management LLC ("NAM"), a subsidiary of Adviser, (each a "Sub-Adviser" and collectively, the "Sub-Advisers"). NWQ and NAM are each responsible for approximately half of Preferred Income Opportunities' (JPC) portfolio. NAM manages the investment portfolio of Preferred and Income Term (JPI), while NWQ manages the investment portfolio of Flexible Investment Income (JPW). The Adviser is responsible for managing Preferred Income Opportunities' (JPC) and Preferred and Income Term's (JPI) investments in swap contracts.

Investment Objectives

Preferred Income Opportunities' (JPC) investment objective is to provide high current income and total return by investing at least 80% of its managed assets (as defined in Note 7 – Management Fees and Other Transactions with Affiliates) in preferred securities, and up to 20% opportunistically over the market cycle in other types of securities, primarily income-oriented securities such as corporate and taxable municipal debt and common equity. At least 60% of its managed assets are rated investment grade (BBB/Baa or better by S&P, Moody's, or Fitch) at the time of investment.

Preferred and Income Term's (JPI) investment objective is to provide a high level of current income and total return. The Fund seeks to achieve its investment objective by investing in preferred securities and other income producing securities. Under normal market conditions, the Fund will invest at least 80% of its managed assets in preferred and other income producing securities. The Fund will invest at least 60% of its managed assets in securities rated investment grade (BBB-/Baa3 or higher) at the time of purchase. The Fund will invest 100% of its managed assets in U.S. dollar denominated securities. The Fund will also invest up to 40% of its managed assets in securities issued by non-U.S. domiciled companies.

Flexible Investment Income's (JPW) investment objectives are to provide high current income and, secondarily, capital appreciation. Under normal circumstances, the Fund will invest at least 80% of its managed assets in income producing securities issued by companies located anywhere in the world. The Fund will invest in income producing securities across the capital structure – in any type of debt, preferred or equity securities offered by a particular company, or debt securities issued by a government. The Fund will invest 100% of its managed assets in U.S. dollar-denominated securities, and may invest up to 50% of its managed assets in securities of non-U.S. companies. The Fund may invest up to 40% of its managed assets in equity securities (other than preferred securities). At least 25% of the aggregate market value of the Fund's investments in debt and preferred securities that are of a type customarily rated by a credit rating agency will be rated investment grade, or if unrated, will be judged to be of comparable quality by NWQ The Fund will invest at least 25% of its managed assets in securities issued by financial services companies. The Fund may invest up to 15% of its managed assets in securities and other instruments that, at the time of purchase, are illiquid. The Fund may opportunistically write (sell) covered call options on the Fund's portfolio of equity securities for the purpose of enhancing the Fund's risk-adjusted total return over time. The Fund anticipates using leverage to help achieve its investment objectives. The Fund may utilize leverage in the form of borrowings from a financial institution or the issuance of preferred shares or other senior securities, such as commercial paper or notes.

Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP").

Nuveen Investments
54



Investment Transactions

Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to earmark securities in the Funds' portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. As of January 31, 2014, the Funds' outstanding when-issued/delayed delivery purchase commitments were as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Outstanding when-issued/delayed delivery purchase commitments

 

$

1,437,500

   

$

1,550,000

   

$

   

Investment Income

Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects paydown gains and losses, if any. Other income is comprised of fees earned in connection with the rehypothecation of pledged collateral as further described in Note 8 – Borrowing Arrangements.

Professional Fees

Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment or to pursue other claims or legal actions on behalf of Fund shareholders. Should a Fund receive a refund of workout expenditures paid in a prior reporting period, such amounts will be recognized as "Legal fee refund" on the Statement of Operations.

Dividends and Distributions to Common Shareholders

Distributions to common shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Dividends to common shareholders are declared monthly. Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.

Flexible Investment Income's (JPW) regular monthly distributions are currently being sourced entirely from net investment income. The Fund's current portfolio is predominantly invested in income producing securities the income from which is expected to be the source of distributions. For periods when the Fund is sourcing its monthly distributions solely from net investment income, the Fund will seek to distribute substantially all of its net investment income over time. There are no assurances given to how long the Fund will source distributions entirely from net investment income.

Market conditions may change, causing the portfolio management team at some future time to focus the mix of portfolio investments less to income-oriented securities. This may cause the regular monthly distributions to be sourced from something other than net investment income. Flexible Investment Income (JPW) has adopted a managed distribution policy permitting it to source its regular monthly distributions from not only net investment income, but also from realized capital gains and/or return of capital. If a managed distribution policy is employed, the Fund will seek to establish a relatively stable common share distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. Actual common share returns will differ from projected long-term returns, and the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value ("NAV"). If the Fund changes to a managed distribution, a press release will be issued describing such change and this change will also be described in subsequent shareholder reports. Additionally, any distribution payment that is sourced from something other than net investment income, there will be a notice issued quantifying the sources of such distribution.

Preferred Shares

The Funds are authorized to issue preferred shares. During prior fiscal periods, Preferred Income Opportunities (JPC) redeemed all of its outstanding preferred shares, at liquidation value. As of January 31, 2014, Preferred and Income Term (JPI) and Flexible Investment Income (JPW) have not issued any preferred shares.

Indemnifications

Under the Funds' organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Nuveen Investments
55



Notes to Financial Statements (Unaudited) (continued)

Netting Agreements

In the ordinary course of business, the Funds may enter into transactions subject to enforceable master repurchase agreements, International Swaps and Derivative Association, Inc. ("ISDA") master agreements or other similar arrangements ("netting agreements"). Generally, the right to offset in netting agreements allows each Fund to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis. As of January 31, 2014, the Funds were not invested in any portfolio securities or derivatives, other than repurchase agreements and swap contracts further described in Note 3 – Portfolio Securities and Investments in Derivatives that are subject to netting agreements.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to common shares from operations during the reporting period. Actual results may differ from those estimates.

2. Investment Valuation and Fair Value Measurements

Investment Valuation

Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market ("NASDAQ") are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2. Prices of certain American Depositary Receipts ("ADR") held by the Fund that trade in the United States are valued based on the last traded price, official closing price or the most recent bid price of the underlying non- U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the NYSE, which may represent a transfer from a Level 1 to a Level 2 security.

Prices of fixed-income securities and swap contracts are provided by a pricing service approved by the Funds' Board of Trustees. These securities are generally classified as Level 2. The pricing service establishes a security's fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.

Investments in investment companies are valued at their respective NAV on valuation date and are generally classified as Level 1.

Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.

The value of exchange-traded options are based on the mean of the closing bid and ask prices. Exchange-traded options are generally classified as Level 1. Options traded in the over-the-counter market are valued using an evaluated mean price and are generally classified as Level 2.

Investments initially valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from pricing services. As a result, the NAV of the Funds' shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and an investor is not able to purchase, redeem or exchange shares. If significant market events occur between the time of determination of the closing price of a foreign security on an exchange and the time that the Funds' NAV is determined, or if under the Funds' procedures, the closing price of a foreign security is not deemed to be reliable, the security would be valued at fair value as determined in accordance with procedures established in good faith by the Funds' Board of Trustees. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.

Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds' Board of Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund's NAV (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security's fair value. As a general principle, the fair value of a security would appear to be the amount

Nuveen Investments
56



that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds' Board of Trustees or its designee.

Fair Value Measurements

Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.

Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 – Prices are determined using significant unobservable inputs (including management's assumptions in determining the fair value of investments).

The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of the end of the reporting period:

Preferred Income Opportunities (JPC)

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Long-Term Investments*:

 

Common Stocks

 

$

39,898,148

   

$

1,576,651

   

$

   

$

41,474,799

   

Convertible Preferred Securities

   

1,335,520

     

     

     

1,335,520

   

$25 Par (or similar) Retail Preferred

   

600,276,249

     

65,044,478

     

     

665,320,727

   

Corporate Bonds

   

     

38,544,034

     

     

38,544,034

   

$1,000 Par (or similar) Institutional Preferred

   

     

592,499,654

     

     

592,499,654

   

Investment Companies

   

6,761,205

     

     

     

6,761,205

   

Short-Term Investments:

 

Repurchase Agreements

   

     

22,741,190

     

     

22,741,190

   

Investments in Derivatives:

 

Interest Rate Swaps**

   

     

4,402,656

     

     

4,402,656

   

Total

 

$

648,271,122

   

$

724,808,663

   

$

   

$

1,373,079,785

   

Preferred and Income Term (JPI)

 

Long-Term Investments*:

 

$25 Par (or similar) Retail Preferred

 

$

155,826,465

   

$

63,461,760

   

$

   

$

219,288,225

   

Corporate Bonds

   

     

6,452,260

     

     

6,452,260

   

$1,000 Par (or similar) Institutional Preferred

   

     

541,144,629

     

     

541,144,629

   

Short-Term Investments:

 

Repurchase Agreements

   

     

6,796,665

     

     

6,796,665

   

Investments in Derivatives:

 

Interest Rate Swaps**

   

     

2,806,005

     

     

2,806,005

   

Total

 

$

155,826,465

   

$

620,661,319

   

$

   

$

776,487,784

   

Flexible Investment Income (JPW)

 

Long-Term Investments*:

 

Common Stocks

 

$

12,048,361

   

$

458,722

   

$

   

$

12,507,083

   

Convertible Preferred Securities

   

297,055

     

     

     

297,055

   

$25 Par (or similar) Retail Preferred

   

66,582,855

     

1,825,779

     

     

68,408,634

   

Corporate Bonds

   

     

8,244,206

     

     

8,244,206

   

$1,000 Par (or similar) Institutional Preferred

   

     

5,654,126

     

     

5,654,126

   

Investment Companies

   

1,458,256

     

     

     

1,458,256

   

Short-Term Investments:

 

Repurchase Agreements

   

     

1,313,604

     

     

1,313,604

   

Total

 

$

80,386,527

   

$

17,496,437

   

$

   

$

97,882,964

   

*  Refer to the Fund's Portfolio of Investments for industry classifications and breakdown of Common Stocks and $25 Par (or similar) Retail Preferred classified as Level 2.

**  Represents net unrealized appreciation (depreciation) as reported in the Fund's Portfolio of Investments.

Nuveen Investments
57



Notes to Financial Statements (Unaudited) (continued)

The Nuveen funds' Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser's Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds' pricing policies and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser's dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:

(i)  If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities.

(ii)  If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis.

The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument's current value.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.

3. Portfolio Securities and Investments in Derivatives

Portfolio Securities

Foreign Currency Transactions

To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds' investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.

Each Fund may invest in non-U.S. securities. As of January 31, 2014, the Funds' investments in non-U.S. securities were as follows:

Preferred Income Opportunities (JPC)

 

Value

  % of
Total Investments
 

Country:

 

United Kingdom

 

$

76,902,319

     

5.6

%

 

Netherlands

   

69,659,410

     

5.1

   

Spain

   

37,752,110

     

2.8

   

Switzerland

   

34,739,183

     

2.5

   

Other Countries

   

95,010,348

     

6.9

   

Total Non-U.S. Securities

 

$

314,063,370

     

22.9

%

 

Nuveen Investments
58



Preferred and Income Term (JPI)

 

Value

  % of
Total Investments
 

Country:

 

United Kingdom

 

$

89,741,352

     

11.6

%

 

Netherlands

   

68,945,884

     

8.9

   

Spain

   

39,725,213

     

5.1

   

France

   

37,080,815

     

4.8

   

Other Countries

   

51,043,817

     

6.6

   

Total Non-U.S. Securities

 

$

286,537,081

     

37.0

%

 

Flexible Investment Income (JPW)

 

Country:

 

Ireland

 

$

1,284,563

     

1.3

%

 

United Kingdom

   

807,015

     

0.8

   

Greece

   

765,316

     

0.8

   

Israel

   

598,042

     

0.6

   

Norway

   

545,664

     

0.6

   

Other Countries

   

1,001,940

     

1.0

   

Total Non-U.S. Securities

 

$

5,002,540

     

5.1

%

 

The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern Time. Investment transactions, income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of a Fund and the amounts actually received.

The realized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments, forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of "Net realized gain (loss) from investments and foreign currency," on the Statement of Operations, when applicable.

The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with other assets and liabilities on investments are recognized as a component of "Change in net unrealized appreciation (depreciation) of investments and foreign currency," on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with forward foreign currency exchange contracts, futures, options purchased, options written and swap contracts are recognized as a component of "Change in net unrealized appreciation (depreciation) of forward foreign currency exchange contracts, futures contracts, options purchased, options written and swaps," respectively, on the Statement of Operations, when applicable.

Repurchase Agreements

In connection with transactions in repurchase agreements, it is each Fund's policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.

The following table presents the repurchase agreements for the Funds that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.

Fund  

Counterparty

  Short-Term
Investments, at Value
  Collateral
Pledged (From)
Counterparty*
  Net
Exposure
 

Preferred Income Opportunities (JPC)

 

Fixed Income Clearing Corporation

 

$

22,741,190

   

$

(22,741,190

)

 

$

   

Preferred and Income Term (JPI)

 

Fixed Income Clearing Corporation

   

6,796,665

     

(6,796,665

)

   

   

Flexible Investment Income (JPW)

 

Fixed Income Clearing Corporation

   

1,313,604

     

(1,313,604

)

   

   

*  As of January 31, 2014, the value of the collateral pledged from the counterparty exceeded the value of the repurchase agreements. Refer to the Fund's Portfolio of Investments for details on the repurchase agreements.

Zero Coupon Securities

Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance

Nuveen Investments
59



Notes to Financial Statements (Unaudited) (continued)

and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.

Investments in Derivatives

Each Fund is authorized to invest in certain derivative instruments, such as futures, options and swap contracts. Each Fund limits its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to each Fund. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.

Options Transactions

The purchase of options involves the risk of loss of all or a part of the cash paid for the options (the premium). The market risk associated with purchasing options is limited to the premium paid. The counterparty credit risk of purchasing options, however, needs also to take into account the current value of the option, as this is the performance expected from the counterparty. When a Fund purchases an option, an amount equal to the premium paid (the premium plus commission) is recognized as a component of "Options purchased, at value" on the Statement of Assets and Liabilities. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recognized as a component of "Options written, at value" on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option until the option is exercised or expires or the Fund enters into a closing purchase transaction. The changes in the value of options purchased during the fiscal period are recognized as a component of "Change in net unrealized appreciation (depreciation) of options purchased" on the Statement of Operations. The changes in the value of options written during the fiscal period are recognized as a component of "Change in net unrealized appreciation (depreciation) of options written" on the Statement of Operations. When an option is exercised or expires or the Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on executing a closing purchase transaction, including commission, is recognized as a component of "Net realized gain (loss) from options purchased and/or written" on the Statement of Operations. The Fund, as a writer of an option has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.

During the six months ended January 31, 2014, Preferred Income Opportunities (JPC) wrote covered call options on common stocks to hedge equity exposure. These options expired prior to the close of this reporting period.

The average notional amount of outstanding options contracts during the six months ended January 31, 2014, was as follows:

Average notional amount outstanding options written*

 

$

**

 

*  The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.

**  The Fund did not hold any options at the beginning of the fiscal year or at the end of each quarter within the current fiscal year.

The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on options contracts during the six months ended January 31, 2014, and the primary underlying risk exposure.

Underlying
Risk Exposure
  Derivative
Instrument
  Net Realized Gain (Loss)
from Options Written
  Change in Net Unrealized
Appreciation (Depreciation)
of Options Written
 

Equity price

 

Options

 

$

30,270

   

$

   

Swap Contracts

Interest rate swap contracts involve the each Fund's agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment that is intended to approximate the Fund's variable rate payment obligation on any variable rate borrowing. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay or receive, in the future, a fixed or variable rate payment in exchange for the counterparty receiving or paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The payment obligation is based on the notional amount swap contract. Swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that each Fund is to receive. Swap contracts are valued daily. Upon entering into an interest rate swap (and beginning on the effective date for a forward interest rate swap), each Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on a daily basis, and recognizes the daily change in the fair value of the Fund's contractual rights and obligations under the contracts. The net amount recorded for these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of "Unrealized appreciation or depreciation on interest rate swaps (,net)" with the change during the fiscal period recognized on the Statement of Operations as a component of "Change in net unrealized appreciation (depreciation) of swaps." Income

Nuveen Investments
60



received or paid by each Fund is recognized as a component of "Net realized gain (loss) from swaps" on the Statement of Operations, in addition to the net realized gains or losses recognized upon the termination of a swap contract, and are equal to the difference between the Fund's basis in the swap contract and the proceeds from (or cost of) the closing transaction. Payments received or made at the beginning of the measurement period are recognized as a component of "Interest rate swap premiums paid and/or received" on the Statement of Assets and Liabilities, when applicable. For tax purposes, periodic payments are treated as ordinary income or expense.

During the six months ended January 31, 2014 Preferred Income Opportunities (JPC) and Preferred and Income Term (JPI) continued to use interest rate swaps to partially fix its interest cost of leverage, which the Funds employ through the use of bank borrowings.

The average notional amount of interest rate swap contracts outstanding during the six months ended January 31, 2014, was as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
 

Average notional amount of interest rate swap contracts outstanding*

 

$

368,042,000

   

$

168,750,000

   

* The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.

The following table presents the fair value of all interest rate swap contracts held by the Funds as of January 31, 2014, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.

     

Location on the Statement of Assets and Liabilities

 

Underlying

 

Derivative

 

Asset Derivatives

 

(Liability) Derivatives

 

Risk Exposure

 

Instrument

 

Location

 

Value

 

Location

 

Value

 

Preferred Income Opportunities (JPC)

 
Interest rate  

Swaps

  Unrealized appreciation on
interest rate swaps, net
 

$

6,995,482

    Unrealized depreciation on
interest rate swaps
 

$

(2,472,560

)

 
Interest rate  

Swaps

  Unrealized appreciation on
interest rate swaps, net
   

(120,266

)

 

       

Total

         

$

6,875,216

       

$

(2,472,560

)

 

Preferred and Income Term (JPI)

 
Interest rate  

Swaps

  Unrealized appreciation on
interest rate swaps, net
 

$

2,806,005

   

 

$

   

The following table presents the swap contacts, which are subject to netting agreements, as well as the collateral delivered related to those swap contracts.

Fund   Counterparty   Gross
Unrealized
Appreciation
on Interest Rate
Swaps*
  Gross
Unrealized
(Depreciation)
on Interest Rate
Swaps*
  Amounts
Netted on
Statement of
Assets and
Liabilities
  Net Unrealized
Appreciation
(Depreciation)
on Interest Rate
Swaps
  Collateral
Pledged
to (from)
Counterparty
  Net
Exposure
 

Preferred Income Opportunities (JPC)

 

 

JPMorgan

 

$

6,995,482

   

$

(120,266

)

 

$

(120,266

)

 

$

6,875,216

   

$

(6,875,216

)

 

$

   

 

Morgan Stanley

   

     

(2,472,560

)

   

     

(2,472,560

)

   

2,472,560

     

   

Total

     

$

6,995,482

   

$

(2,592,826

)

 

$

(120,266

)

 

$

4,402,656

   

$

(4,402,656

)

 

$

   

Preferred and Income Term (JPI)

 

 

JPMorgan

 

$

2,806,005

   

$

   

$

   

$

2,806,005

   

$

(2,806,005

)

 

$

   

* Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund's Portfolio of Investments.

The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts on the Statement of Operations during the six months ended January 31, 2014, and the primary underlying risk exposure.

Fund   Underlying
Risk Exposure
  Derivative
Instrument
  Net Realized
Gain (Loss) from Swaps
  Change in Net Unrealized
Appreciation (Depreciation) of Swaps
 

Preferred Income Opportunities (JPC)

 

Interest rate

 

Swaps

 

$

(1,003,933

)

 

$

(2,060,410

)

 

Preferred and Income Term (JPI)

 

Interest rate

 

Swaps

   

     

(2,037,414

)

 

Nuveen Investments
61



Notes to Financial Statements (Unaudited) (continued)

Market and Counterparty Credit Risk

In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.

Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.

4. Fund Shares

Common Shares

Transactions in common shares were as follows:

  Preferred Income
Opportunities (JPC)
 

  Six Months
Ended
1/31/14
  Seven Months
Ended
7/31/13
  Year
Ended
12/31/12
 

Common shares issued to shareholders due to reinvestment of distributions

   

     

     

   

 

  Preferred and Income
Term (JPI)
  Flexible Investment
Income (JPW)
 

  Six Months
Ended
1/31/14
  Year
Ended
7/31/13
  Six Months
Ended
1/31/14
  For the period 6/25/13
(commencement of operations)
through 7/31/13
 

Common shares sold

   

     

2,739,573

     

200,000

     

3,500,000

*

 

Common shares issued to shareholders due to reinvestment of distributions

   

     

9,004

     

     

   

* Excludes 5,250 shares owned by the Adviser.

5. Investment Transactions

Purchases and sales (including maturities but excluding short-term investments and derivative transactions, where applicable) during the six months ended January 31, 2014, were as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Purchases

 

$

253,674,524

   

$

165,311,064

   

$

54,028,291

   

Sales and maturities

   

268,845,183

     

178,621,997

     

21,621,290

   

Transactions in options written for the following Fund during the six months ended January 31, 2014, were as follows:

  Preferred Income
Opportunities (JPC)
 

  Number of
Contracts
  Premiums
Received
 

Options outstanding, beginning of period

   

   

$

   

Options written

   

591

     

30,270

   

Options expired

   

(591

)

   

(30,270

)

 

Options outstanding, end of period

   

   

$

   

Nuveen Investments
62



6. Income Tax Information

Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its investment company taxable income to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. In any year when the Funds realize net capital gains, each Fund may choose to distribute all or a portion of its net capital gains to shareholders, or alternatively, to retain all or a portion of its net capital gains and pay federal corporate income taxes on such retained gains.

For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization, timing differences in the recognition of income on real estate investment trust ("REIT") investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the NAVs of the Funds.

As of January 31, 2014, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives, where applicable), as determined on a federal income tax basis, were as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Cost of investments

 

$

1,345,088,284

   

$

760,517,221

   

$

99,536,328

   

Gross unrealized:

 

Appreciation

 

$

55,046,380

   

$

20,761,139

   

$

952,189

   

Depreciation

   

(31,457,535

)

   

(7,596,581

)

   

(2,605,553

)

 

Net unrealized appreciation (depreciation) of investments

 

$

23,588,845

   

$

13,164,558

   

$

(1,653,364

)

 

Permanent differences, primarily due to federal taxes paid, notional principal contracts, tax basis earnings and profit adjustments, bond premium amortization adjustments, adjustments for REITs, complex securities character adjustments, litigation proceeds, and foreign currency reclasses, resulted in reclassifications among the Funds' components of common share net assets as of July 31, 2013, the Funds' last tax year end, as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Paid-in-surplus

 

$

(383,932

)

 

$

(75,649

)

 

$

   

Undistributed (Over-distribution of) net investment income

   

(1,106,300

)

   

405,185

     

   

Accumulated net realized gain (loss)

   

1,490,232

     

(329,536

)

   

   

The tax components of undistributed net ordinary income and net long-term capital gains as of July 31, 2013, the Funds' last tax year end, were as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Undistributed net ordinary income1

 

$

6,045,230

   

$

16,537,152

   

$

114,911

   

Undistributed net long-term capital gains

   

     

9,204

     

   

1  Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.

The tax character of distributions paid during the Funds' last tax year ended July 31, 2013, was designated for purposes of the dividends paid deduction as follows:

  Preferred
Income
Opportunities
(JPC)3
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)4
 

Distributions from net ordinary income2

 

$

36,836,933

   

$

40,663,121

   

$

   

Distributions from net long-term capital gains

   

     

     

   

Return of capital

   

     

     

   

Nuveen Investments
63



Notes to Financial Statements (Unaudited) (continued)

The tax character of distributions paid during Preferred Income Opportunities' (JPC) tax year ended December 31, 2012, was designated for purposes of the dividends paid deduction as follows:

  Preferred
Income
Opportunities
(JPC)
 

Distributions from net ordinary income2

 

$

73,683,563

   

Distributions from net long-term capital gains

   

   

Return of Capital

   

   

2  Net ordinary income consists of net taxable income derived from dividends, interest, net short-term capital gains and current year earnings and profits attributable to realized gains, if any.

3  For the seven months ended July 31, 2013.

4  For the period June 25, 2013 (commencement of operations) through July 31, 2013.

As of July 31, 2013, the Funds' last tax year end, the following Fund had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by the Fund, while the losses subject to expiration are considered short-term.

  Preferred
Income
Opportunities
(JPC)
 

Expiration:

 

July 31, 2016

 

$

129,811,368

   

July 31, 2017

   

204,895,930

   

July 31, 2018

   

9,385,427

   

Not subject to expiration:

 

Short-term losses

   

   

Long-term losses

   

   

Total

 

$

344,092,725

   

During the Funds' last tax year ended July 31, 2013, the following Fund utilized capital loss carryforwards as follows:

  Preferred
Income
Opportunities
(JPC)
 

Utilized capital loss carryforwards

 

$

30,171,610

   

7. Management Fees and Other Transactions with Affiliates

Each Fund's management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Advisers are compensated for their services to the Funds from the management fees paid to the Adviser.

Each Fund's management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund's shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.

The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Average Daily Managed Assets*

  Preferred
Income
Opportunities
(JPC)
Fund-Level
Fee Rate
  Preferred and
Income
Term
(JPI)
Fund-Level
Fee Rate
  Flexible
Investment
Income
(JPW)
Fund-Level
Fee Rate
 

For the first $500 million

   

.6800

%

   

.7000

%

   

.7000

%

 

For the next $500 million

   

.6500

     

.6750

     

.6750

   

For the next $500 million

   

.6300

     

.6500

     

.6500

   

For the next $500 million

   

.6050

     

.6250

     

.6250

   

For managed assets over $2 billion

   

.5800

     

.6000

     

.6000

   

Nuveen Investments
64



The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Complex-Level Managed Asset Breakpoint Level*

 

Effective Rate at Breakpoint Level

 
$55 billion    

.2000

%

 
$56 billion    

.1996

   
$57 billion    

.1989

   
$60 billion    

.1961

   
$63 billion    

.1931

   
$66 billion    

.1900

   
$71 billion    

.1851

   
$76 billion    

.1806

   
$80 billion    

.1773

   
$91 billion    

.1691

   
$125 billion    

.1599

   
$200 billion    

.1505

   
$250 billion    

.1469

   
$300 billion    

.1445

   

*  For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds' use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute "eligible assets." Eligible assets do not include assets attributable to investments in other Nuveen Funds and assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser's assumption of the management of the former First American Funds effective January 1, 2011. As of January 31, 2014, the complex-level fee rate for each of these Funds was .1679%.

The Funds pays no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.

8. Borrowing Arrangements

Borrowings

Preferred Income Opportunities (JPC) and Preferred and Income Term (JPI) each entered into a prime brokerage facility with BNP Paribas Prime Brokerage, Inc. ("BNP") while Flexible Investment Income (JPW) entered in to a committed secured 180-day continuous rolling borrowing facility with the Bank of Nova Scotia (collectively "Borrowings") as a means of leverage. Each Fund's maximum commitment amount under these Borrowings is as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Maximum commitment amount

 

$

405,000,000

   

$

250,000,000

   

$

35,000,000

   

As of January 31, 2014, each Fund's outstanding balance on its Borrowings was as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)
 

Outstanding balance on Borrowings

 

$

402,500,000

   

$

225,000,000

   

$

27,500,000

   

During the six months ended January 31, 2014, the average daily balance outstanding and average annual interest rate on each Fund's Borrowings were as follows:

  Preferred
Income
Opportunities
(JPC)
  Preferred and
Income
Term
(JPI)
  Flexible
Investment
Income
(JPW)*
 

Average daily balance outstanding

 

$

402,500,000

   

$

225,000,000

   

$

26,715,116

   

Average annual interest rate

   

1.07

%

   

1.07

%

   

.87

%

 

*  During the period August 13, 2013 (first utilization date of borrowings) through January 31, 2014.

Nuveen Investments
65



Notes to Financial Statements (Unaudited) (continued)

In order to maintain these Borrowings, the Funds must meet certain collateral, asset coverage and other requirements. Borrowings outstanding are fully secured by securities held in each Fund's portfolio of investments ("Pledged Collateral"). For Preferred Income Opportunities (JPC) and Preferred and Income Term (JPI) interest is charged on these Borrowings at 3-Month LIBOR (London Inter-Bank Offered Rate) (during the period August 1, 2013 through December 9, 2013 and 1-month LIBOR thereafter) plus .85% per annum on the amounts borrowed and .50% per annum on the undrawn balance. Flexible Investment Income (JPW) interest is charged on the Borrowings at a rate equal to the 1-month LIBOR plus .70% per annum on the amount borrowed. In addition to the interest expense, Flexible Investment Income (JPW) will pay a commitment fee equal to .15% per annum on the undrawn balance.

Borrowings outstanding are recognized as "Borrowings" on the Statement of Assets and Liabilities. Interest expense incurred on the borrowed amount and undrawn balance and the one-time amendment fee are recognized as a component of "Interest expense on borrowings" on the Statement of Operations.

Rehypothecation

On December 9, 2013, the Adviser entered into a Rehypothecation Side Letter ("Side Letter") with BNP, allowing BNP to re-register the Pledged Collateral in its own name or in a name other than the Funds' to pledge, repledge, hypothecate, rehyphothecate, sell, lend or otherwise transfer or use the Pledged Collateral (the "Hypothecated Securities") with all rights of ownership as described in the Side Letter. Subject to certain conditions, the total value of the outstanding Hypothecated Securities shall not exceed the lesser of (i) 98% of the outstanding balance on the Borrowings to which the Pledged Collateral relates and (ii) 33 1/3% of the Funds' total assets. The Funds may designate any Pledged Collateral as ineligible for rehypothecation. The Funds may also recall Hypothecated Securities on demand.

The Funds also have the right to apply and set-off an amount equal to one-hundred percent (100%) of the then-current fair market value of such Pledged Collateral against the current Borrowings under the Side Letter in the event that BNP fails to timely return the Pledged Collateral and in certain other circumstances. In such circumstances, however, the Funds may not be able to obtain replacement financing required to purchase replacement securities and, consequently, the Funds' income generating potential may decrease. Even if a Fund is able to obtain replacement financing, it might not be able to purchase replacement securities at favorable prices.

The Funds will receive a fee in connection with the Hypothecated Securities ("Rehypothecation Fees") in addition to any principal, interest, dividends and other distributions paid on the Hypothecated Securities.

As of January 31, 2014, Preferred Income Opportunities (JPC) and Preferred and Income Term (JPI) each had Hypothecated Securities totalling $75,452,300 and $175,206,500, respectively. During the period from December 9, 2013 through January 31, 2014, Preferred Income Opportunities (JPC) and Preferred and Income Term (JPI) earned Rehypothecation Fees of $87,208 and $48,750, respectively, which is recognized as "Other income" on the Statement of Operations.

Nuveen Investments
66




Additional

Fund Information

Board of Trustees

William Adams IV*

 

Robert P. Bremner

 

Jack B. Evans

 

William C. Hunter

 

David J. Kundert

 

John K. Nelson

 

William J. Schneider

 

Thomas S. Schreier, Jr.*

 

Judith M. Stockdale

 

Carole E. Stone

 

Virginia L. Stringer

 

Terence J. Toth

 

* Interested Board Member.

Fund Manager
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
  Custodian
State Street Bank
& Trust Company
Boston, MA 02111
  Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
  Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL 60606
  Transfer Agent and
Shareholder Services
State Street Bank
& Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
 

Quarterly Form N-Q Portfolio of Investments Information

Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC -0330 for room hours and operation.

Nuveen Funds' Proxy Voting Information

You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.

CEO Certification Disclosure

The Fund's Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.

Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

Share Information

Each Fund intends to repurchase shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

 

JPC

 

JPI

 

JPW

 

Common shares repurchased

   

     

     

   

Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

FINRA BrokerCheck

The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org.

Nuveen Investments
67



Glossary of Terms

Used in this Report

n  Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.

n  Barclays USD Capital Securities Index: The Barclays USD Capital Securities component of the Barclays Global Capital Securities Index generally includes Tier 2/Lower Tier 2 bonds, perpetual step-up debt, step-up preferred securities, and term preferred securities. The index returns assume reinvestment of dividends, but do not include the effects of any sales charges or management fees.

n  Basel III: A comprehensive set of reform measures designed to improve the regulation, supervision and risk management within the banking sector. The Basel Committee on Banking Supervision published the first version of Basel III in late 2009, giving banks approximately three years to satisfy all requirements. Largely in response to the credit crisis, banks are required to maintain proper leverage ratios and meet certain capital requirements.

n  BofA/Merrill Lynch Preferred Stock Fixed Rate Index: An index that tracks the performance of fixed rate U.S. dollar denominated preferred securities issued in the U.S. domestic market. Qualifying securities must be rated investment grade (based on an average of Moody's, S&P, and Fitch) and must have an investment grade rated country of risk (based on an average of Moody's, S&P, and Fitch foreign currency long-term sovereign debt ratings). In addition, qualifying securities must be issued as public securities or through a 144A filing, must be issued in $25, $50 or $100 par/liquidation preference increments, must have a fixed coupon or dividend schedule, and must have a minimum amount outstanding of $100 million. The index returns assume reinvestment of dividends, but do not include the effects of any sales charges or management fees.

n  Effective Leverage: Effective leverage is a fund's effective economic leverage, and includes both regulatory leverage (see below) and the leverage effects of certain derivative investments in the fund's portfolio that increase the funds' investment exposure.

n  Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.

n  JPC Blended Index (Comparative Benchmark): A blended return consisting of 82.5% of the BofA/Merrill Lynch Preferred Stock Fixed Rate Index and 17.5% of the Barclays Capital Securities Index. The index returns assume reinvestment of dividends, but do not include the effects of any sales charges or management fees.

n  JPI Blended Benchmark Index: A blended return consisting of the BofA/Merrill Lynch Preferred Stock Fixed Rate Index and the Barclays USD Capital Securities Index. The JPI Blended Benchmark Index is comprised of a 65% weighting in the BofA/Merrill Lynch Preferred Stock Fixed Rate Index, and a 35% weighting in the Barclays USD Capital Securities Index. Benchmark returns assume reinvestment of distributions, but do not include the effects of any sales charges or management fees.

n  Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital.

n  Net Asset Value (NAV) Per Share: A fund's Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund's Net Assets divided by its number of shares outstanding.

n  Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund's capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.

Nuveen Investments
68



Reinvest Automatically,

Easily and Conveniently

Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.

Nuveen Closed-End Funds Automatic Reinvestment Plan

Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares.

By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested.

It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.

Easy and convenient

To make recordkeeping easy and convenient, each quarter you'll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.

How shares are purchased

The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.

Flexible

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.

You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.

The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.

Call today to start reinvesting distributions

For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.

Nuveen Investments
69




Notes



Notes



Nuveen Investments:

Serving Investors for Generations

Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.

Focused on meeting investor needs.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management and Gresham Investment Management. In total, Nuveen Investments managed approximately $221 billion as of December 31, 2013.

Find out how we can help you.

To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.

Learn more about Nuveen Funds at: www.nuveen.com/cef

Distributed by Nuveen Securities, LLC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com/cef

ESA-C-0114D




 

ITEM 2. CODE OF ETHICS.

 

Not applicable to this filing.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

 

Not applicable to this filing.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

Not applicable to this filing.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

Not applicable to this filing.

 

ITEM 6. SCHEDULE OF INVESTMENTS.

 

a) See Portfolio of Investments in Item 1.

 

b) Not applicable.

 

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable to this filing.

 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable to this filing.

 

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

 

Not applicable.

 

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this item.

 

ITEM 11. CONTROLS AND PROCEDURES.

 

(a)

 

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)(17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

 

 

(b)

 

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 12. EXHIBITS.

 

File the exhibits listed below as part of this Form.

 

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.

 

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto.

 

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

 

(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto.

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) Nuveen Preferred and Income Term Fund

 

By (Signature and Title)

/s/ Kevin J. McCarthy

 

 

Kevin J. McCarthy

 

Vice President and Secretary

 

Date: April 8, 2014

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By (Signature and Title)

/s/ Gifford R. Zimmerman

 

 

Gifford R. Zimmerman

 

Chief Administrative Officer

 

(principal executive officer)

 

Date: April 8, 2014

 

 

By (Signature and Title)

/s/ Stephen D. Foy

 

 

Stephen D. Foy

 

Vice President and Controller

 

(principal financial officer)

 

Date: April 8, 2014