Nuveen Quality Preferred Income Fund 2

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  

811-21137

Nuveen Quality Preferred Income Fund 2

 

(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, 2016                    

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

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


ITEM 1. REPORTS TO STOCKHOLDERS.


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Closed-End Funds   

 

     Nuveen Investments
     Closed-End Funds

 

 

 

 

       

 

 

Semi-Annual Report  January 31, 2016

 

     
           
JTP            
Nuveen Quality Preferred Income Fund  
           
JPS            
Nuveen Quality Preferred Income Fund 2  
           
JHP            
Nuveen Quality Preferred Income Fund 3  

 


 

 

     

 

           
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Table

of Contents

 

Chairman’s Letter to Shareholders

     4   

Portfolio Managers’ Comments

     5   

Fund Leverage

     7   

Common Share Information

     8   

Risk Considerations

     10   

Performance Overview and Holding Summaries

     12   

Shareholder Meeting Report

     18   

Portfolios of Investments

     19   

Statement of Assets and Liabilities

     36   

Statement of Operations

     37   

Statement of Changes in Net Assets

     38   

Statement of Cash Flows

     40   

Financial Highlights

     42   

Notes to Financial Statements

     47   

Additional Fund Information

     59   

Glossary of Terms Used in this Report

     60   

Reinvest Automatically, Easily and Conveniently

     61   

 

Nuveen Investments     3   


Chairman’s Letter

to Shareholders

 

LOGO

Dear Shareholders,

For better or for worse, the financial markets spent most of the past year waiting for the U.S. Federal Reserve (Fed) to end its accommodative monetary policy. The policy has propped up stock and bond markets since the Great Recession, but the question remains: how will markets behave without its influence? This uncertainty was a considerable source of volatility for stock and bond prices for much of 2015, despite the Fed carefully conveying its intention to raise rates slowly and only when the economy shows evidence of readiness.

As was widely expected, the long-awaited Fed rate hike materialized in mid-December. While the move was interpreted as a vote of confidence on the U.S. economy’s underlying strength, the Fed emphasized that future rate increases will be gradual and guided by its ongoing assessment of financial conditions. Headwinds including rising borrowing costs, softer commodity prices, low inflation, a strong U.S. dollar and a stagnant global economy could necessitate keeping monetary conditions accommodative for longer. Meanwhile, policy makers in Europe and Japan are deploying their available tools to try to bolster their economies’ fragile growth, while Chinese authorities have stepped up efforts to manage China’s slowdown.

Although the new year began with a more pessimistic tone to investor sentiment and elevated volatility in the markets, we caution investors from making long-term decisions based on short-term news. In times like these, you can look to a professional investment manager with the experience and discipline to maintain the proper perspective on short-term events. And if the daily headlines do concern you, I encourage you to reach out to your financial advisor. Your financial advisor can help you evaluate your investment strategies in light of current events, your time horizon and risk tolerance.

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,

 

LOGO

William J. Schneider

Chairman of the Board

March 23, 2016

 

 

  4      Nuveen Investments


Portfolio Managers’

Comments

 

Nuveen Quality Preferred Income Fund (JTP)

Nuveen Quality Preferred Income Fund 2 (JPS)

Nuveen Quality Preferred Income Fund 3 (JHP)

The Funds are sub-advised by a team of specialists at Spectrum Asset Management, a wholly owned subsidiary of Principal Global Investors, LLC. Mark Lieb and Phil Jacoby lead the team. Here Mark and Phil discuss their management strategy and the performance of the Funds for the six-month reporting period ended January 31, 2016.

During October, 2015, the Board of Trustees for the Nuveen closed-end funds approved a plan to merge Nuveen Quality Preferred Income Fund (JTP) and Nuveen Quality Preferred Income Fund 3 (JHP) into the acquiring fund, Nuveen Quality Preferred Income Fund 2 (JPS). On March 22, 2016 (subsequent to the close of this reporting period), shareholder approval was completed. The reorganization will become effective before the opening of business on May 9, 2016. See Notes to Financial Statements, Notes 1 – General Information and Significant Accounting Policies, Fund Reorganizations for further information.

Additionally, the Board approved changes to the Funds’ non-fundamental policies related to the minimum allocation to investment grade securities and the Fund’s secondary Blended Index. These changes were made to better align the Funds’ strategies with the evolution in the preferred securities market since the Funds’ launch in 2002. The minimum allocation to investment grade securities for each Fund was reduced from 80% to 65%. Once the merger is complete, the acquiring Fund’s minimum allocation to investment grade securities will decrease from 65% to 50% and the existing 45% limit on dollar denominated preferred securities of non-US issuers will be eliminated. The current Blended Index consists of 55% BofA/Merrill Lynch Preferred Stock Fixed Rate Index and 45% Barclays Tier 1 Capital Securities Index. The proposed Benchmark Index will consist of 40% BofA/Merrill Lynch Contingent Capital Index (COCO) and 60% BofA/Merrill Lynch All Capital Securities Index (I0CS).

What key strategies were used to manage the Funds during the six-month reporting period ended January 31, 2016?

The investment objective of each Fund is to seek high current income consistent with capital preservation with a secondary objective to enhance portfolio value relative to the broad market for preferred securities. Under normal market conditions, the Funds seek to invest at least 80% of their net assets in preferred securities and up to 20% of their net assets in debt securities, including convertible debt and convertible preferred securities.

Our broad strategy is shifting away from the predominance of fixed-for-life callable securities that are most common to the $25 par types (traded on the NYSE) and into more $1,000 par (traded over the counter) intermediate duration fixed-to-floating and fixed-to-variable securities. We anticipate this shift may provide greater income as we move into

 

 

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, Inc. (Moody’s) 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.

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

 

Nuveen Investments     5   


Portfolio Managers’ Comments (continued)

 

more below investment grade names that yield more than the average book yield. In addition, we anticipate that the variable coupon resets over time may help to preserve capital if interest rates turn materially higher. This tactic may foster an allowance for more portfolio leverage while helping to offset valuation risk inherent in the risk-free rates structure. Increased income with less overall capital risk from the rates structure is the combined objective of this portfolio rebalancing.

How did the Funds perform during the six-month reporting period ended January 31, 2016?

The tables in the Performance Overview and Holding Summaries section of this report provide total return performance for each Fund for the six-month, one-year, five-year and ten-year periods ended January 31, 2016. For the six-month reporting period ended January 31, 2016 all three Funds’ common shares at net asset value (NAV) underperformed the Barclays U.S. Aggregate Bond Index and the Blended Benchmark.

The credit markets behaved reasonably well considering the corrections in the broader global markets. There were periods of credit spread volatility during the late summer and again in January 2016. Much of the concern was more macro based, as it related to declining commodity prices brought about by China’s material slowdown and a surplus of oil supplies that have collapsed energy prices. The transmission effects, the process through which monetary policy decisions affect the economy in general and the price level in particular, are permeating the valuation of banking shares around the globe as banks seek to further augment their capital bases. The banking sector, though significantly better capitalized now than before the most recent recession, is an easy target for macro trades (i.e., selling) because of bank earning’s very close relationship to gross domestic product (GDP) growth.

Interest rate increases by the Federal Reserve (Fed) became a non-event as we moved into 2016. The yield on the U.S. Treasury 2-year note, a good barometer of future rate moves by the Fed, found a low of 0.56% during the late summer as it became doubtful that the Fed would cut rates. As markets settled into accepting a more hawkish view from the Fed that rates should go up before year-end, the 2-year note quickly rose to 1.06% by the end of December. Recent disruptions in financial markets have guided the 2-year note yield back down to 0.78%. The overall duration impact of the interest rate gyrations has been muted by widening credit spreads.

Regulation has had a generally positive impact on the preferred asset class from a product perspective as more issuance has been required by banks and insurance entities. From a fundamental perspective, having more capital (a requirement of regulatory change) is a credit positive. In January, valuations were being repriced aggressively by the market (yields were sold higher) because slow growth and negative interest rate policies from central banks is expected to require more immediate cost cutting and balance sheet reductions in the absence of more robust global economic activity.

Factors that benefited the Fund’s performance were a generally modest band of variability in long term interest rates and strong performance in $25 par securities. During the reporting period, the long term U.S. Treasury rates stayed within a range of 2.70% and 3.10%, but finished the reporting period at 2.75%. This supported risk taking on the back-end of the yield curve and helped the $25 par market stand out as the best performing sector.

Our decision to reduce $25 par securities during this reporting period constrained performance as allocations to this sector went down by about 9% in favor of capital securities which underperformed. The rally in the retail sector, nonetheless, helped to provide for wider income margins on the securities that were purchased.

Several individual positions positively contributed to performance. General Electric Capital Corporation 5% preferred stock performed well. The company was involved in a tough exchange battle with shareholders which was resolved favorably for the company. The Royal Bank of Canada preferred stock also positively contributed to performance. The stock was tendered after its completed merger with the U.S. regional bank, City National Corporation.

Several individual positions detracted from performance. Catlin Insurance Company Limited 7.24% and Lincoln National Corporation 6.05% detracted from performance. These two issues are likely to switch to floating rate payers and somewhat narrow spreads to 3 month LIBOR rather than being called. The expected lower cash flows have reduced the net present cash flow of the bonds, which is reflected by the lower bond prices.

 

  6      Nuveen Investments


Fund

Leverage

 

IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE

One important factor impacting the returns 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 Funds’ use of leverage had a positive impact on performance during this reporting period.

The Funds also continued to use swap contracts to partially fix the interest cost of leverage, which as mentioned previously, is through bank borrowings. During this reporting period, these swap contracts detracted from overall Fund performance.

As of January 31, 2016, the Funds’ percentages of leverage are shown in the accompanying table.

 

     JTP        JPS        JHP  

Effective Leverage*

    29.12        29.11        28.92

Regulatory Leverage*

    29.12        29.11        28.92
* Effective Leverage is a 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 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.

THE FUNDS’ REGULATORY LEVERAGE

Bank Borrowings

The Funds employ regulatory leverage through the use of bank borrowings. As of January 31, 2016, the Funds’ outstanding bank borrowings are as shown in the accompanying table.

 

     JTP        JPS        JHP  

Bank Borrowings

  $ 235,000,000         $ 465,800,000         $ 89,000,000   

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

 

Nuveen Investments     7   


Common Share

Information

 

COMMON SHARE DISTRIBUTION INFORMATION

The following information regarding the Funds’ distributions is current as of January 31, 2016. 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 distributions to common shareholders were as shown in the accompanying table.

 

    Per Common Share Amounts  
Ex-Dividend Date   JTP        JPS        JHP  

August 2015

  $ 0.0550         $ 0.0580         $ 0.0560   

September

    0.0550           0.0580           0.0560   

October

    0.0550           0.0580           0.0560   

November

    0.0550           0.0580           0.0560   

December

    0.0550           0.0580           0.0560   

January 2016

    0.0550           0.0580           0.0560   

Ordinary Income Distribution*

  $         $         $ 0.0275   

Current Distribution Rate**

    7.87        7.72        7.87
* Distribution paid in December 2015.
** 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.

Each Fund in this report seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s net asset value. Conversely, if a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a negative UNII that will likewise be reflected in the Fund’s net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders.

As of January 31, 2016, the Funds had positive UNII balances, based upon our best estimate, for tax purposes. JTP and JPS had positive UNII balances while JHP had a negative UNII balance for financial reporting purposes.

All monthly dividends paid by each Fund during the current reporting period, were paid from net investment income. If a portion of the Fund’s monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of each Fund’s dividends for the reporting period are presented in this report’s Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.

 

  8      Nuveen Investments


 

COMMON SHARE REPURCHASES

During August 2015, the Funds’ Board of Trustees reauthorized an open-market share repurchase program, allowing each Fund to repurchase an aggregate of up to approximately 10% of its outstanding shares.

As of January 31, 2016, and since the inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their outstanding common shares as shown in the accompanying table.

 

     JTP        JPS        JHP  

Common shares cumulatively repurchased and retired

    5,000           0           60,000   

Common shares authorized for repurchase

    6,465,000           12,040,000           2,365,000   

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

OTHER COMMON SHARE INFORMATION

As of January 31, 2016, 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.

 

     JTP        JPS        JHP  

Common share NAV

    $8.85           $9.42           $9.24   

Common share price

    $8.39           $9.02           $8.54   

Premium/(Discount) to NAV

    (5.20 )%         (4.25 )%         (7.58 )% 

6-month average premium/(discount) to NAV

    (9.14 )%         (5.63 )%         (10.71 )% 

 

Nuveen Investments     9   


Risk

Considerations

 

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation.

Nuveen Quality Preferred Income Fund (JTP)

Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure, and therefore are subject to greater credit risk. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Leverage increases return volatility and magnifies the Fund’s potential return and its risks; there is no guarantee a fund’s leverage strategy will be successful. These and other risks such as concentration and foreign securities risk are described in more detail on the Fund’s web page at www.nuveen.com/JTP.

Nuveen Quality Preferred Income Fund 2 (JPS)

Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure, and therefore are subject to greater credit risk. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Leverage increases return volatility and magnifies the Fund’s potential return and its risks; there is no guarantee a fund’s leverage strategy will be successful. These and other risks such as concentration and foreign securities risk are described in more detail on the Fund’s web page at www.nuveen.com/JPS.

Nuveen Quality Preferred Income Fund 3 (JHP)

Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure, and therefore are subject to greater credit risk. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, derivatives risk, liquidity risk, and income risk. As interest rates rise, bond prices fall. Leverage increases return volatility and magnifies the Fund’s potential return and its risks; there is no guarantee a fund’s leverage strategy will be successful. These and other risks such as concentration and foreign securities risk are described in more detail on the Fund’s web page at www.nuveen.com/JHP.

 

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Nuveen Investments     11   


JTP

 

Nuveen Quality Preferred Income Fund

Performance Overview and Holding Summaries as of January 31, 2016

 

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

Average Annual Total Returns as of January 31, 2016

 

    Cumulative        Average Annual  
     6-Month        1-Year        5-Year        10-Year  
JTP at Common Share NAV     0.55%           2.95%           9.28%           3.62%   
JTP at Common Share Price     7.81%           5.87%           10.75%           4.44%   
Barclays U.S. Aggregate Bond Index     1.33%           (0.16)%           3.51%           4.66%   
Blended Benchmark (Comparative Index)     2.47%           3.95%           7.39%           4.77%   

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

Common Share Price Performance — Weekly Closing Price

 

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  12      Nuveen Investments


 

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.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, 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.

 

Fund Allocation

(% of net assets)

 

Convertible Preferred Securities     1.3%   
$25 Par (or similar) Retail Preferred     37.4%   
Corporate Bonds     8.4%   
$1,000 Par (or similar) Institutional Preferred     91.4%   
Investment Companies     1.2%   
Repurchase Agreements     1.2%   
Other Assets Less Liabilities     0.2%   

Net Assets Plus Borrowings

    141.1%   
Borrowings     (41.1)%   

Net Assets

    100%   

Portfolio Composition

(% of total investments)1

 

Bank

    39.5%   

Insurance

    27.1%   

Real Estate Investment Trust

    6.3%   

Capital Market

    5.1%   

Industrial Conglomerates

    4.0%   

Other

    16.3%   

Investment Companies

    0.8%   

Repurchase Agreements

    0.9%   

Total

    100%   

 

Country Allocation

(% of total investments)1

 

United States     59.7%   
United Kingdom     14.1%   
France     6.5%   
Netherlands     5.3%   
Japan     2.9%   
Other     11.5%   

Total

    100%   
 

 

 

Top Five Issuers

(% of total investments)1

 

General Electric Corporation     4.0%   
PNC Financial Services     3.5%   
JPMorgan Chase & Company     3.1%   
HSBC Capital Funding LP     3.0%   
Bank of America Corporation     3.0%   

Credit Quality

(% of total long-term fixed-income investments)

 

AA     4.1%   
A     7.3%   
BBB     62.5%   
BB or Lower     26.1%   

Total

    100%   
 
1 Excluding investments in derivatives.

 

Nuveen Investments     13   


JPS

 

Nuveen Quality Preferred Income Fund 2

Performance Overview and Holding Summaries as of January 31, 2016

 

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

Average Annual Total Returns as of January 31, 2016

 

    Cumulative        Average Annual  
     6-month        1-Year        5-Year        10-Year  
JPS at Common Share NAV     0.18%           2.08%           9.20%           4.01%   
JPS at Common Share Price     3.20%           4.05%           10.68%           4.47%   
Barclays U.S. Aggregate Bond Index     1.33%           (0.16)%           3.51%           4.66%   
Blended Benchmark (Comparative Index)     2.47%           3.95%           7.39%           4.77%   

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

Common Share Price Performance — Weekly Closing Price

 

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  14      Nuveen Investments


 

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.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, 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.

 

Fund Allocation

(% of net assets)

 

Convertible Preferred Securities     0.4%   
$25 Par (or similar) Retail Preferred     37.7%   
Corporate Bonds     7.3%   
$1,000 Par (or similar) Institutional Preferred     93.9%   
Investment Companies     1.3%   
Repurchase Agreements     0.8%   
Other Assets Less Liabilities     (0.3)%   

Net Assets Plus Borrowings

    141.1%   
Borrowings     (41.1)%   

Net Assets

    100%   

Portfolio Composition

(% of total investments)1

 

Bank

    36.1%   

Insurance

    30.0%   

Capital Market

    7.0%   

Real Estate Investment Trust

    6.7%   

Construction & Engineering

    3.7%   

Other

    15.0%   

Investment Companies

    0.9%   

Repurchase Agreements

    0.6%   

Total

    100%   

 

Country Allocation

(% of total investments)1

 

United States     60.3%   
United Kingdom     11.7%   
Netherlands     6.9%   
France     6.8%   
Switzerland     3.6%   
Other     10.7%   

Total

    100%   
 

 

Top Five Issuers

(% of total investments)1

 

PNC Financial Services     3.4%   
General Electric Corporation     3.1%   
Centaur Funding Corporation     2.7%   
Credit Agricole SA     2.7%   
Aegon N.V     2.6%   

Credit Quality

(% of total long-term fixed-income investments)

 

AA     3.1%   
A     7.7%   
BBB     65.0%   
BB or Lower     24.2%   

Total

    100%   
 

 

1 Excluding investments in derivatives.

 

Nuveen Investments     15   


JHP

 

Nuveen Quality Preferred Income Fund 3

Performance Overview and Holding Summaries as of January 31, 2016

 

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

Average Annual Total Returns as of January 31, 2016

 

    Cumulative        Average Annual  
     6-Month        1-Year        5-Year        10-Year  
JHP at Common Share NAV     0.77%           3.15%           9.55%           3.97%   
JHP at Common Share Price     6.63%           6.31%           9.97%           4.14%   
Barclays U.S. Aggregate Bond Index     1.33%           (0.16)%           3.51%           4.66%   
Blended Benchmark (Comparative Index)     2.47%           3.95%           7.39%           4.77%   

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

Common Share Price Performance — Weekly Closing Price

 

LOGO

 

  16      Nuveen Investments


 

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.

Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, 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.

 

Fund Allocation

(% of net assets)

 

$25 Par (or similar) Retail Preferred     35.6%   
Corporate Bonds     8.6%   
$1,000 Par (or similar) Institutional Preferred     92.8%   
Investment Companies     1.3%   
Repurchase Agreements     4.4%   
Other Assets Less Liabilities     (2.0)%   

Net Assets Plus Borrowings

    140.7%   
Borrowings     (40.7)%   

Net Assets

    100%   

Portfolio Composition

(% of total investments)1

 

Bank

    37.1%   

Insurance

    26.5%   

Capital Market

    8.0%   

Real Estate Investment Trust

    6.7%   

Wireless Telecommunication Services

    3.8%   

Other

    13.9%   

Investment Companies

    0.9%   

Repurchase Agreements

    3.1%   

Total

    100%   

 

Country Allocation

(% of total investments)1

 

United States     59.7%   
United Kingdom     15.4%   
France     6.5%   
Netherlands     5.5%   
Switzerland     4.5%   
Other     8.4%   

Total

    100%   
 

 

Top Five Issuers

(% of total investments)1

 

First Union Capital Trust     3.7%   
General Electric Company     3.3%   
Barclays PLC     3.1%   
Centaur Funding Corporation     2.8%   
Societe Generale     2.8%   

Credit Quality

(% of total long-term fixed-income investments)

 

AA     3.4%   
A     5.2%   
BBB     60.6%   
BB or Lower     30.8%   

Total

    100%   
 

 

1 Excluding investments in derivatives.

 

Nuveen Investments     17   


Shareholder

Meeting Report

 

The annual meeting of shareholders was held in the offices of Nuveen Investments on January 19, 2016 for JTP, JPS and JHP; at this meeting the shareholders were asked to vote to approve an Agreement and Plan of Reorganization, to approve Issuance of Additional Shares and to elect Board Members.

 

        JTP        JPS        JHP  
        Common
Shares
       Common
Shares
       Common
Shares
 

To approve an Agreement and Plan of Reorganization

              

For

       19,456,556                     6,537,207   

Against

       2,776,572                     1,765,039   

Abstain

       678,448                     171,098   

Broker Non-Votes

       35,281,561                     12,431,349   

Total

       58,193,137                     20,904,693   

To approve the issuance of additional common shares in
connection with each Reorganization

              

For

                 34,180,070             

Against

                 3,715,596             

Abstain

                 1,392,925             

Total

                 39,288,591             

Approval of the Board Members was reached as follows:

              

William C. Hunter

              

For

       55,952,214           105,739,373           20,263,708   

Withhold

       2,240,923           3,883,734           640,985   

Total

       58,193,137           109,623,107           20,904,693   

Judith M. Stockdale

              

For

       55,944,726           105,551,662           20,254,609   

Withhold

       2,248,411           4,071,445           650,084   

Total

       58,193,137           109,623,107           20,904,693   

Carole E. Stone

              

For

       55,964,345           105,666,335           20,262,799   

Withhold

       2,228,792           3,956,772           641,894   

Total

       58,193,137           109,623,107           20,904,693   

 

  18      Nuveen Investments


JTP

 

Nuveen Quality Preferred Income Fund

Portfolio of Investments

   January 31, 2016 (Unaudited)

 

Shares     Description (1)   Coupon            Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 139.7% (99.1% of TOTAL INVESTMENTS)

  

  
 

CONVERTIBLE PREFERRED SECURITIES – 1.3% (0.9% of Total Investments)

  

        
      Banks – 1.3%                         
  6,332     

Wells Fargo & Company

    7.500%              BBB       $ 7,421,104   
 

Total Convertible Preferred Securities (cost $7,537,319)

                           7,421,104   
Shares     Description (1)   Coupon            Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 37.4% (26.6% of Total Investments)

  

  
      Banks – 9.1%                         
  32,500     

AgriBank FCB, (5)

    6.875%            BBB+       $ 3,497,813   
  185,000     

Citigroup Inc.

    6.875%            BB+         5,081,950   
  37,500     

Cobank Agricultural Credit Bank, 144A, (5)

    6.250%            BBB+         3,878,906   
  3,000     

Cobank Agricultural Credit Bank, (5)

    6.200%            BBB+         302,063   
  26,000     

Fifth Third Bancorp.

    6.625%            Baa3         729,300   
  55,057     

First Naigara Finance Group

    8.625%            BB–         1,497,550   
  2,303     

FirstMerit Corporation

    5.875%            Baa2         58,059   
  18,400     

HSBC Holdings PLC

    8.000%            Baa1         479,504   
  6,900     

HSBC Holdings PLC

    6.200%            Baa1         176,295   
  498,114     

ING Groep N.V., (3)

    7.200%            Baa3         12,985,832   
  741,100     

PNC Financial Services

    6.125%            Baa2         20,661,868   
  104,608     

TCF Financial Corporation

    7.500%              BB–         2,845,338   
 

Total Banks

                           52,194,478   
      Capital Markets – 2.5%                         
  27,678     

Charles Schwab Corporation

    6.000%            BBB         724,333   
  513,146     

Deutsche Bank Capital Funding Trust II

    6.550%            BB+         12,946,674   
  27,442     

State Street Corporation

    5.900%            Baa1         738,190   
  833     

State Street Corporation

    5.250%              Baa1         21,475   
 

Total Capital Markets

                           14,430,672   
      Diversified Telecommunication Services – 3.2%         
  143,506     

Qwest Corporation

    7.500%            BBB–         3,715,370   
  103,081     

Qwest Corporation

    7.375%            BBB–         2,641,966   
  100,803     

Qwest Corporation

    7.000%            BBB–         2,612,814   
  67,900     

Qwest Corporation

    7.000%            BBB–         1,764,721   
  77,156     

Qwest Corporation

    6.875%            BBB–         1,988,310   
  52,000     

Qwest Corporation

    6.625%            Baa3         1,289,080   
  90,502     

Qwest Corporation

    6.125%            BBB–         2,239,925   
  82,683     

Verizon Communications Inc.

    5.900%              A–         2,192,753   
 

Total Diversified Telecommunication Services

                           18,444,939   
      Electric Utilities – 1.6%                         
  144,185     

Alabama Power Company, (5)

    6.450%            A3         3,865,960   
  12,752     

Entergy Arkansas Inc.

    5.750%            A–         323,773   
  3,681     

Entergy Louisiana LLC

    5.250%            A2         95,080   
  16,749     

Entergy Mississippi Inc.

    6.000%            A–         438,154   
  90,504     

Integrys Energy Group Inc., (5)

    6.000%            Baa1         2,355,937   
  53,967     

Interstate Power and Light Company

    5.100%            BBB         1,389,650   
  33,039     

NextEra Energy Inc.

    5.000%              BBB         818,376   
 

Total Electric Utilities

                           9,286,930   
      Food Products – 0.7%                         
  28,100     

Dairy Farmers of America Inc., 144A, (3), (5)

    7.875%            Baa3         2,990,017   
  10,000     

Dairy Farmers of America Inc., 144A, (5)

    7.875%              Baa3         1,019,063   
 

Total Food Products

                           4,009,080   

 

Nuveen Investments     19   


JTP    Nuveen Quality Preferred Income Fund   
   Portfolio of Investments (continued)    January 31, 2016 (Unaudited)

 

Shares     Description (1)   Coupon            Ratings (2)      Value  
      Insurance – 10.6%                         
  728,813     

Aegon N.V

    6.375%            Baa1       $ 18,650,325   
  107,020     

Aflac Inc., (3)

    5.500%            Baa1         2,747,203   
  147,000     

Allstate Corporation

    5.100%            Baa1         3,720,570   
  50,309     

American Financial Group

    6.250%            Baa2         1,318,096   
  70,304     

Arch Capital Group Limited

    6.750%            BBB+         1,827,904   
  10,965     

Aspen Insurance Holdings Limited

    7.250%            BBB–         288,818   
  156,458     

Aspen Insurance Holdings Limited

    5.950%            BBB–         4,047,568   
  226,594     

Axis Capital Holdings Limited

    6.875%            BBB         5,929,965   
  132,864     

Axis Capital Holdings Limited

    5.500%            BBB         3,337,544   
  231,787     

Delphi Financial Group, Inc., (3), (5)

    7.376%            BB+         5,729,497   
  125,430     

Hartford Financial Services Group Inc.

    7.875%            BBB–         3,850,700   
  166,360     

Prudential PLC

    6.750%            A–         4,355,305   
  104,100     

Reinsurance Group of America Inc.

    6.200%            BBB         2,977,260   
  53,895     

Torchmark Corporation

    5.875%            BBB+         1,405,582   
  23,008     

W.R. Berkley Corporation

    5.625%              BBB–         580,952   
 

Total Insurance

                           60,767,289   
      Machinery – 1.0%                         
  201,038     

Stanley, Black, and Decker Inc.

    5.750%              BBB+         5,166,677   
      Media – 0.2%                         
  44,976     

Comcast Corporation

    5.000%              A–         1,163,529   
      Multi-Utilities – 0.5%                         
  117,386     

DTE Energy Company

    6.500%              Baa1         3,070,818   
      Real Estate Investment Trust – 6.6%                     
  150,000     

DDR Corporation

    6.250%            Baa3         3,790,500   
  26,952     

Digital Realty Trust Inc.

    7.375%            Baa3         721,505   
  4,552     

Digital Realty Trust Inc.

    6.625%            Baa3         118,989   
  31,476     

Digital Realty Trust Inc.

    5.875%            Baa3         782,493   
  180,474     

Hospitality Properties Trust

    7.125%            Baa3         4,685,105   
  79,960     

Kimco Realty Corporation,

    5.625%            Baa2         2,009,395   
  42,336     

National Retail Properties Inc., (3)

    6.625%            Baa2         1,104,123   
  97,311     

PS Business Parks, Inc.

    6.450%            BBB         2,515,489   
  175,061     

PS Business Parks, Inc.

    6.000%            BBB         4,455,302   
  716     

Public Storage, Inc.

    6.350%            A3         18,337   
  60,087     

Public Storage, Inc.

    5.750%            A3         1,534,020   
  265,626     

Realty Income Corporation

    6.625%            Baa2         6,991,276   
  126,400     

Regency Centers Corporation

    6.625%            Baa2         3,297,776   
  70,210     

Senior Housing Properties Trust

    5.625%            BBB–         1,750,335   
  59,282     

Ventas Realty LP

    5.450%            BBB+         1,572,159   
  82,255     

Wells Fargo & Company

    5.850%            BBB         2,126,292   
  19,843     

Welltower Inc.

    6.500%              Baa3         521,474   
 

Total Real Estate Investment Trust

                           37,994,570   
      U.S. Agency – 1.2%                         
  65,000     

Farm Credit Bank of Texas, 144A, (3), (5)

    6.750%              Baa1         6,934,688   
      Wireless Telecommunication Services – 0.2%         
  18,300     

Telephone and Data Systems Inc.

    7.000%            BB+         460,977   
  28,000     

Telephone and Data Systems Inc.

    6.875%              BB+         713,160   
 

Total Wireless Telecommunication Services

                           1,174,137   
 

Total $25 Par (or similar) Retail Preferred (cost $204,334,981)

  

                   214,637,807   

 

  20      Nuveen Investments


Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 8.4% (5.8% of Total Investments)

  

        
      Banks – 5.5%                           
$ 1,200     

Nordea Bank AB, 144A

    5.500%         9/23/49         BBB       $ 1,152,000   
  2,500     

Barclays Bank PLC

    7.625%         11/21/22         BBB–         2,793,883   
  4,500     

Barclays Bank PLC

    7.750%         4/10/23         BBB–         4,770,000   
  2,000     

ING Groep N.V

    6.500%         12/29/49         Ba1         1,937,500   
  19,000     

JPMorgan Chase & Company

    6.750%         1/29/49         BBB–         20,567,500   
  29,200     

Total Banks

                               31,220,883   
      Capital Markets – 0.1%                           
  300     

Macquarie Bank Limited, Reg S

    10.250%         6/20/57         BB+         321,738   
      Construction & Engineering – 0.3%                       
  1,600     

Hutchison Whampoa International 12 Limited, 144A

    6.000%         11/07/62         BBB         1,666,400   
      Insurance – 2.5%                           
  1,900     

AIG Life Holdings Inc., (3)

    7.570%         12/01/45         BBB         2,479,500   
  5,000     

AIG Life Holdings Inc., (3)

    8.125%         3/15/46         BBB         6,600,000   
  900     

AXA Reg S

    5.500%         10/15/97         A3         907,650   
  1,100     

Liberty Mutual Group Inc., 144A

    7.697%         10/15/97         BBB+         1,418,010   
  1,700     

Mitsui Sumitomo Insurance Company Limited, 144A, (3)

    7.000%         3/15/72         A–         1,971,150   
  1,000     

WEC Energy Group, Inc.

    6.250%         5/15/67         Baa1         720,000   
  11,600     

Total Insurance

                               14,096,310   
$ 42,700     

Total Corporate Bonds (cost $45,692,008)

                               47,305,331   
Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 91.4% (65.0% of Total Investments)

  

      Banks – 39.8%                           
  5,400     

Banco Bilbao Vizcaya Argentaria S.A Reg S

    9.000%         N/A (6)         BB       $ 5,647,828   
  9,000     

Banco Santander SA Reg S

    6.375%         N/A (6)         Ba1         8,309,952   
  500     

Bank of America Corporation

    6.500%         N/A (6)         BB+         521,400   
  23,850     

Bank of America Corporation

    8.000%         N/A (6)         BB+         24,080,868   
  200     

Bank One Capital III

    8.750%         9/01/30         Baa2         295,552   
  400     

Barclays Bank PLC, 144A

    6.860%         N/A (6)         BBB–         460,080   
  10,330     

Barclays PLC

    7.434%         N/A (6)         BB+         10,049,561   
  11,500     

Barclays PLC

    8.250%         N/A (6)         BB+         12,045,112   
  7,200     

Citigroup Inc., (4)

    6.250%         N/A (6)         BB+         7,242,696   
  2,750     

Citigroup Inc.

    5.950%         N/A (6)         BB+         2,681,250   
  4,000     

Citigroup Inc.

    8.400%         N/A (6)         BB+         4,385,000   
  4,500     

Citizens Financial Group Inc., 144A

    5.500%         N/A (6)         BB+         4,348,125   
  11,700     

Credit Agricole SA, 144A

    8.125%         N/A (6)         BB+         11,692,980   
  3,548     

Credit Agricole SA, 144A

    7.875%         N/A (6)         BB+         3,454,326   
  5,400     

Credit Agricole, S.A, Reg S

    7.875%         N/A (6)         BB+         5,257,429   
  985     

First Chicago NBD Institutional Capital I

    0.790%         2/01/27         Baa2         842,175   
  16,350     

HSBC Capital Funding LP, Debt, 144A

    10.176%         N/A (6)         Baa1         24,320,625   
  3,200     

JPMorgan Chase & Company

    6.000%         N/A (6)         BBB–         3,194,000   
  1,300     

JPMorgan Chase & Company

    5.150%         N/A (6)         BBB–         1,238,380   
  4,300     

JPMorgan Chase Capital XXIII, (3)

    1.364%         5/15/77         Baa2         3,171,250   
  2,000     

KeyCorp Capital III

    7.750%         7/15/29         Baa2         2,435,270   
  12,518     

Lloyd’s Banking Group PLC

    7.500%         N/A (6)         BB+         12,956,130   
  2,900     

Lloyd’s Banking Group PLC, 144A

    6.657%         N/A (6)         Ba1         3,233,500   
  2,300     

Lloyd’s Banking Group PLC, 144A

    6.413%         N/A (6)         Ba1         2,535,750   
  1,800     

M&T Bank Corporation

    6.375%         N/A (6)         Baa1         1,838,813   
  14,000     

M&T Bank Corporation

    6.875%         N/A (6)         Baa2         14,122,500   
  5,700     

Nordea Bank AB, 144A

    6.125%         N/A (6)         BBB         5,416,824   
  7,100     

PNC Financial Services Inc.

    6.750%         N/A (6)         Baa2         7,623,625   
  4,300     

Royal Bank of Scotland Group PLC

    7.648%         N/A (6)         BB         5,310,500   
  4,000     

Royal Bank of Scotland Group PLC

    8.000%         N/A (6)         BB–         4,105,000   
  8,900     

Royal Bank of Scotland Group PLC

    7.500%         N/A (6)         BB–         9,033,500   

 

Nuveen Investments     21   


JTP    Nuveen Quality Preferred Income Fund   
   Portfolio of Investments (continued)    January 31, 2016 (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks (continued)                           
  15,500     

Societe Generale, 144A

    8.000%         N/A (6)         BB+       $ 15,306,250   
  2,000     

Societe Generale, 144A

    7.875%         N/A (6)         BB+         1,927,500   
  450     

Societe Generale, 144A

    1.363%         N/A (6)         BB+         414,000   
  2,700     

Societe Generale, Reg S

    7.875%         N/A (6)         BB+         2,602,125   
  5,050     

Standard Chartered PLC, 144A

    7.014%         N/A (6)         Baa2         5,353,000   
 

Total Banks

                               227,452,876   
      Capital Markets – 4.6%                           
  3,100     

Bank of New York Mellon Corporation

    4.950%         N/A (6)         Baa1         3,058,460   
  5,600     

Charles Schwab Corporation

    7.000%         N/A (6)         BBB         6,370,000   
  7,500     

Credit Suisse Group AG, 144A

    7.500%         N/A (6)         BB+         7,699,350   
  2,500     

Goldman Sachs Group Inc.

    5.700%         N/A (6)         Ba1         2,465,625   
  150     

Morgan Stanley

    5.550%         N/A (6)         Ba1         148,406   
  5,178     

UBS Group AG Reg S

    7.125%         N/A (6)         BB+         5,339,031   
  1,500     

UBS Group AG, Reg S

    6.875%         N/A (6)         BB+         1,470,000   
 

Total Capital Markets

                               26,550,872   
      Diversified Financial Services – 3.7%                       
  10,875     

BNP Paribas, 144A

    7.375%         N/A (6)         BBB–         10,671,094   
  7,893     

Rabobank Nederland, 144A

    11.000%         N/A (6)         Baa2         9,591,574   
  1,100     

Voya Financial Inc.

    5.650%         5/15/53         Baa3         1,067,000   
 

Total Diversified Financial Services

                               21,329,668   
      Electric Utilities – 2.2%                           
  5,200     

Electricite de France, 144A

    5.250%         N/A (6)         Baa1         4,660,500   
  1,000     

FPL Group Capital Inc.

    6.350%         10/01/66         BBB         682,500   
  2,400     

FPL Group Capital Inc.

    6.650%         6/15/67         BBB         1,797,600   
  7,000     

PPL Capital Funding Inc.

    6.700%         3/30/67         BBB         5,390,000   
 

Total Electric Utilities

                               12,530,600   
      Industrial Conglomerates – 5.6%                       
  31,356     

General Electric Company

    5.000%         N/A (6)         AA–         32,218,287   
      Insurance – 25.2%                           
  698     

Ace Capital Trust II, (3)

    9.700%         4/01/30         BBB+         991,509   
  2,600     

AIG Life Holdings Inc.

    8.500%         7/01/30         BBB         3,406,000   
  1,700     

Allstate Corporation, (3)

    5.750%         8/15/53         Baa1         1,731,875   
  3,600     

American International Group, Inc.

    8.175%         5/15/58         BBB         4,684,500   
  600     

AON Corporation

    8.205%         1/1/27         BBB         749,250   
  4,000     

AXA SA, (3)

    8.600%         12/15/30         A3         5,351,400   
  4,880     

AXA SA, 144A

    6.380%         N/A (6)         Baa1         5,197,200   
  9,895     

Catlin Insurance Company Limited, 144A

    7.249%         N/A (6)         BBB+         7,718,100   
  1,700     

Chubb Corporation, (3)

    6.375%         4/15/37         BBB+         1,592,050   
  3,250     

Dai-Ichi Life Insurance Company Ltd, 144A

    7.250%         N/A (6)         A–         3,770,000   
  1,300     

Dai-Ichi Life Insurance Company Ltd, 144A

    5.100%         N/A (6)         A–         1,365,000   
  5,500     

Great West Life & Annuity Capital I, 144A, (3)

    6.625%         11/15/34         A–         6,220,968   
  3,800     

Great West Life & Annuity Insurance Capital LP II, 144A, (3)

    7.153%         5/16/46         A–         3,800,000   
  6,700     

Liberty Mutual Group, 144A

    7.000%         3/15/37         Baa3         6,231,000   
  7,060     

Liberty Mutual Group, 144A, (3)

    7.800%         3/15/37         Baa3         8,048,400   
  2,500     

Lincoln National Corporation

    6.050%         4/20/67         BBB         1,817,188   
  6,300     

MetLife Capital Trust IV, 144A, (3)

    7.875%         12/15/37         BBB         7,560,000   
  600     

MetLife Capital Trust X, 144A

    9.250%         4/08/38         BBB         804,000   
  1,000     

MetLife Inc.

    10.750%         8/01/39         BBB         1,535,500   
  12,650     

National Financial Services Inc.

    6.750%         5/15/37         Baa2         12,650,000   
  2,225     

Oil Insurance Limited, 144A

    3.585%         N/A (6)         Baa1         1,958,000   
  15,760     

Prudential Financial Inc.

    5.625%         6/15/43         BBB+         15,937,300   
  15,075     

QBE Cap Funding III Limited, 144A

    7.250%         5/24/41         BBB         16,582,500   
  7,000     

Sompo Japan Insurance, 144A

    5.325%         3/28/73         A–         7,341,250   

 

  22      Nuveen Investments


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Insurance (continued)                           
  2,500     

Sumitomo Life Insurance Company, 144A

    4.000%         9/20/73         A3       $ 2,806,250   
  9,200     

XLIT Limited

    3.687%         N/A (6)         BBB–         7,250,750   
  6,970     

ZFS Finance USA Trust V, 144A

    6.500%         5/09/37         A         7,008,335   
 

Total Insurance

                               144,108,325   
      Machinery – 0.3%                           
  1,500     

Stanley Black & Decker Inc.

    5.750%         12/15/53         BBB+         1,563,000   
      Multi-Utilities – 0.6%                           
  2,300     

Dominion Resources Inc.

    7.500%         6/30/66         BBB–         1,923,375   
  2,000     

Dominion Resources Inc.

    2.913%         9/30/66         BBB–         1,382,328   
 

Total Multi-Utilities

                               3,305,703   
      Oil, Gas & Consumable Fuels – 1.2%                
  6,876     

Enterprise Products Operating LP, (4)

    7.034%         1/15/68         Baa2         6,876,000   
      Real Estate Investment Trust – 2.2%                
  3,800     

CoreStates Capital Trust III, Series 144A

    0.929%         2/15/27         A1         3,247,100   
  950     

Sovereign Capital Trusts

    7.908%         6/13/36         Ba1         964,300   
  8,025     

Wells Fargo & Company

    7.980%         N/A (6)         BBB         8,386,125   
 

Total Real Estate Investment Trust

                               12,597,525   
      Road & Rail – 2.1%                           
  10,900     

Burlington Northern Santa Fe Funding Trust I

    6.613%         12/15/55         BBB         11,772,000   
      U.S. Agency – 0.7%                           
  3,400     

Farm Credit Bank of Texas, 144A, (3)

    10.000%         N/A (6)         Baa1         4,247,875   
      Wireless Telecommunication Services – 3.2%         
  15,250     

Centaur Funding Corporation, Series B, 144A

    9.080%         4/21/20         BBB–         18,361,953   
 

Total $1,000 Par (or similar) Institutional Preferred (cost $503,439,545)

  

              522,914,684   
Shares     Description (1), (7)                           Value  
      INVESTMENT COMPANIES – 1.2% (0.8% of Total Investments)                           
  252,950     

Blackrock Credit Allocation Income Trust IV

           $ 3,098,638   
  198,566     

John Hancock Preferred Income Fund III

                               3,582,130   
 

Total Investment Companies (cost $9,446,348)

                               6,680,768   
 

Total Long-Term Investments (cost $770,450,201)

                               798,959,694   
Principal
Amount (000)
    Description (1)   Coupon      Maturinty              Value  
 

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

  

        
      REPURCHASE AGREEMENTS – 1.2% (0.9% of Total Investments)                       
$ 6,898     

Repurchase Agreement with Fixed Income Clearing Corporation,
dated 1/29/16, repurchase price $6,897,626,
collateralized by $5,140,000 U.S. Treasury Bonds,
5.250%, due 2/15/29, value $7,042,035

    0.030%         2/01/16                $ 6,897,626   
 

Total Short-Term Investments (cost $6,897,626)

                               6,897,626   
 

Total Investments (cost $777,347,827) – 140.9%

                               805,857,320   
 

Borrowings – (41.1)% (8), (9)

                               (235,000,000
 

Other Assets Less Liabilities – 0.2% (10)

                               1,257,862   
 

Net Assets Applicable to Common Shares – 100%

                             $ 572,115,182   

 

Nuveen Investments     23   


JTP    Nuveen Quality Preferred Income Fund   
   Portfolio of Investments (continued)    January 31, 2016 (Unaudited)

 

Investments in Derivatives as of January 31, 2016

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)
    Optional
Termination
Date
    Termination
Date
    Value     Unrealized
Appreciation
(Depreciation)
 

JPMorgan Chase Bank, N.A.

  $ 67,587,000        Receive        1-Month USD-LIBOR-ICE        1.462     Monthly        6/01/16        12/01/18        12/01/20      $ (1,655,213   $ (2,002,036

JPMorgan Chase Bank, N.A.

    67,587,000        Receive        1-Month USD-LIBOR-ICE        1.842        Monthly        6/01/16        12/01/20        12/01/22        (2,888,005     (3,363,082
    $ 135,174,000                                                              $ (4,543,218   $ (5,365,118

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) Investment, or a portion of investment, is hypothecated as described in the Notes to Financial Statements, Note 8 – Borrowings Arrangements, Rehypothecation. The total value of investments hypothecated as of the end of the reporting period was $85,469,015.

 

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

 

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

 

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

 

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

 

(8) Borrowings as a percentage of Total Investments is 29.2%.

 

(9) The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for borrowings. As of the end of the reporting period, investments with a value of $469,142,433 have been pledged as collateral for borrowings.

 

(10) Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable.

 

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

 

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-ICE United States Dollar – London Inter-Bank Offered Rate Intercontinental Exchange

 

See accompanying notes to financial statements.

 

  24      Nuveen Investments


JPS

 

Nuveen Quality Preferred Income Fund 2

Portfolio of Investments

   January 31, 2016 (Unaudited)

 

Shares     Description (1)   Coupon            Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 140.6% (99.4% of Total Investments)

  

 

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

     
      Banks – 0.4%                         
  4,300     

Wells Fargo & Company

    7.500%              BBB       $ 5,039,600   
 

Total Convertible Preferred Securities (cost $5,004,125)

                           5,039,600   
Shares     Description (1)   Coupon            Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 37.7% (26.7% of Total Investments)

     
      Banks – 9.5%                         
  60,500     

AgriBank FCB, (4)

    6.875%            BBB+       $ 6,511,313   
  13,035     

Bank of America Corporation

    6.500%            BB+         339,561   
  101,310     

Barclays Bank PLC

    8.125%            BB+         2,666,479   
  391,660     

Citigroup Inc.

    6.875%            BB+         10,758,900   
  50,000     

Cobank Agricultural Credit Bank, (4)

    6.200%            BBB+         5,034,375   
  60,000     

Fifth Third Bancorp.

    6.625%            Baa3         1,683,000   
  104,602     

First Naigara Finance Group

    8.625%            BB–         2,845,174   
  194,610     

HSBC Holdings PLC

    8.000%            Baa1         5,071,537   
  6,000     

HSBC Holdings PLC

    6.200%            Baa1         153,300   
  34,578     

HSBC USA Inc.

    6.500%            BBB+         895,570   
  762,594     

ING Groep N.V.

    7.200%            Baa3         19,880,826   
  711,114     

ING Groep N.V.

    7.050%            Baa3         18,524,520   
  5,272     

JP Morgan Chase & Company

    6.100%            BBB–         135,227   
  1,213,900     

PNC Financial Services

    6.125%              Baa2         33,843,532   
 

Total Banks

                           108,343,314   
      Capital Markets – 3.9%                         
  52,744     

Affiliated Managers Group Inc.

    6.375%            BBB+         1,366,070   
  50,869     

Charles Schwab Corporation

    6.000%            BBB         1,331,242   
  1,254,146     

Deutsche Bank Capital Funding Trust II

    6.550%            BB+         31,642,104   
  329,239     

Goldman Sachs Group, Inc.

    5.500%            Ba1         8,221,098   
  790     

Morgan Stanley

    7.125%            Ba1         22,460   
  37,600     

State Street Corporation

    5.900%            Baa1         1,011,440   
  3,373     

State Street Corporation

    5.250%              Baa1         86,956   
 

Total Capital Markets

                           43,681,370   
      Diversified Telecommunication Services – 3.1%              
  184,004     

Qwest Corporation

    7.500%            BBB–         4,763,864   
  129,290     

Qwest Corporation

    7.375%            BBB–         3,313,703   
  381,205     

Qwest Corporation

    7.000%            BBB–         9,880,834   
  74,400     

Qwest Corporation, (3)

    7.000%            BBB–         1,933,656   
  216,000     

Qwest Corporation

    6.875%            BBB–         5,566,320   
  97,600     

Qwest Corporation, (3)

    6.625%            Baa3         2,419,504   
  189,701     

Qwest Corporation

    6.125%            BBB–         4,695,100   
  109,505     

Verizon Communications Inc.

    5.900%              A–         2,904,073   
 

Total Diversified Telecommunication Services

                           35,477,054   
      Electric Utilities – 1.9%                         
  283,142     

Alabama Power Company, (4)

    6.450%            A3         7,591,745   
  76,214     

Entergy Arkansas Inc.

    4.750%            A–         1,880,199   
  50,244     

Entergy Louisiana LLC

    5.875%            A2         1,272,178   
  4,808     

Entergy Louisiana LLC

    5.250%            A2         124,191   
  12,338     

Entergy Mississippi Inc.

    6.000%            A–         322,762   
  10,000     

Gulf Power Company, (4)

    5.600%            Baa1         1,015,916   
  150,833     

Integrys Energy Group Inc., (4)

    6.000%            Baa1         3,926,379   
  103,413     

Interstate Power and Light Company

    5.100%            BBB         2,662,885   

 

Nuveen Investments     25   


JPS    Nuveen Quality Preferred Income Fund 2   
   Portfolio of Investments (continued)    January 31, 2016 (Unaudited)

 

Shares     Description (1)   Coupon            Ratings (2)      Value  
      Electric Utilities (continued)                         
  42,873     

NextEra Energy Inc.

    5.700%            BBB       $ 1,100,550   
  74,988     

NextEra Energy Inc.

    5.625%              BBB         1,935,440   
 

Total Electric Utilities

                           21,832,245   
 

Food Products – 0.7%

          
  53,400     

Dairy Farmers of America Inc., 144A, (4)

    7.875%            Baa3         5,682,096   
  19,000     

Dairy Farmers of America Inc., 144A, (4)

    7.875%              Baa3         1,936,220   
 

Total Food Products

                           7,618,316   
      Insurance – 10.9%                         
  1,632,816     

Aegon N.V.

    6.375%            Baa1         41,783,760   
  190,549     

Aflac Inc.

    5.500%            Baa1         4,891,393   
  55,714     

Allstate Corporation

    6.625%            BBB–         1,530,464   
  393,000     

Allstate Corporation

    5.100%            Baa1         9,946,830   
  143,984     

American Financial Group

    6.250%            Baa2         3,772,380   
  298,657     

Arch Capital Group Limited

    6.750%            BBB+         7,765,082   
  74,981     

Aspen Insurance Holdings Limited

    7.250%            BBB–         1,975,000   
  210,600     

Aspen Insurance Holdings Limited

    5.950%            BBB–         5,448,222   
  496,236     

Axis Capital Holdings Limited

    6.875%            BBB         12,986,496   
  188,986     

Axis Capital Holdings Limited

    5.500%            BBB         4,747,328   
  409,482     

Delphi Financial Group, Inc., (4)

    7.376%            BB+         10,121,904   
  317,875     

Prudential PLC

    6.750%            A–         8,321,968   
  280,000     

Reinsurance Group of America Inc.

    6.200%            BBB         8,008,000   
  2,771     

RenaissanceRe Holdings Limited

    5.375%            BBB+         69,552   
  89,317     

Torchmark Corporation

    5.875%              BBB+         2,329,387   
 

Total Insurance

                           123,697,766   
      Machinery – 0.8%                         
  344,353     

Stanley, Black, and Decker Inc.

    5.750%              BBB+         8,849,872   
      Real Estate Investment Trust – 5.3%              
  90,357     

DDR Corporation

    6.250%            Baa3         2,283,320   
  98,467     

Digital Realty Trust Inc.

    7.375%            Baa3         2,635,962   
  13,325     

Digital Realty Trust Inc.

    7.000%            Baa3         341,786   
  3,000     

Digital Realty Trust Inc.

    6.350%            Baa3         75,330   
  38,341     

Digital Realty Trust Inc.

    5.875%            Baa3         953,157   
  319,773     

Hospitality Properties Trust

    7.125%            Baa3         8,301,307   
  217,684     

Kimco Realty Corporation,

    5.625%            Baa2         5,470,399   
  90,626     

National Retail Properties Inc.

    6.625%            Baa2         2,363,526   
  82,301     

Prologis Inc., (4)

    8.540%            BBB–         5,128,380   
  135,389     

PS Business Parks, Inc.

    6.450%            BBB         3,499,806   
  316,174     

PS Business Parks, Inc.

    6.000%            BBB         8,046,628   
  3,400     

Public Storage, Inc.

    6.500%            A3         86,292   
  165,013     

Public Storage, Inc., (3)

    6.375%            A3         4,473,502   
  77,335     

Public Storage, Inc.

    5.750%            A3         1,974,363   
  169,411     

Realty Income Corporation

    6.625%            Baa2         4,458,898   
  146,268     

Regency Centers Corporation

    6.625%            Baa2         3,816,132   
  79,442     

Ventas Realty LP

    5.450%            BBB+         2,106,802   
  167,030     

Wells Fargo & Company, (3)

    5.850%            BBB         4,317,726   
  3,203     

Welltower Inc.

    6.500%              Baa3         84,175   
 

Total Real Estate Investment Trust

                           60,417,491   
      U.S. Agency – 1.4%                         
  144,000     

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

    6.750%              Baa1         15,363,000   
      Wireless Telecommunication Services – 0.2%              
  2,150     

Telephone and Data Systems Inc.

    7.000%            BB+         54,159   
  81,428     

Telephone and Data Systems Inc.

    6.875%              BB+         2,073,970   
 

Total Wireless Telecommunication Services

                           2,128,129   
 

Total $25 Par (or similar) Retail Preferred (cost $404,953,028)

                           427,408,557   

 

  26      Nuveen Investments


Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 7.3% (5.2% of Total Investments)

          
      Banks – 5.5%                           
$ 4,500     

Barclays Bank PLC

    7.625%         11/21/22         BBB–       $ 5,028,989   
  8,800     

Barclays Bank PLC

    7.750%         4/10/23         BBB–         9,328,000   
  1,000     

Den Norske Bank

    0.688%         2/18/35         Baa2         605,000   
  1,000     

Den Norske Bank

    0.482%         2/24/37         Baa2         605,000   
  700     

ING Groep N.V.

    6.500%         12/29/49         Ba1         678,125   
  2,900     

Integrys Holding, Inc.

    6.110%         12/01/66         Baa1         2,117,000   
  29,000     

JPMorgan Chase & Company

    6.750%         1/29/49         BBB–         31,392,500   
  7,600     

Nordea Bank AB, 144A

    5.500%         9/23/49         BBB         7,296,000   
  5,000     

Societe Generale, Reg S

    8.250%         12/31/49         BB+         5,214,570   
  60.500     

Total Banks

                               62,265,184   
 

Capital Markets – 0.2%

          
  1,700     

Macquarie Bank Limited, Reg S

    10.250%         6/20/57         BB+         1,823,180   
      Construction & Engineering – 0.2%                           
  1,800     

Hutchison Whampoa International 12 Limited, 144A

    6.000%         11/07/62         BBB         1,874,700   
      Insurance – 1.2%                           
  2,800     

AIG Life Holdings Inc. 144A

    7.570%         12/01/45         BBB         3,654,000   
  2,300     

Liberty Mutual Group Inc., 144A

    7.697%         10/15/97         BBB+         2,964,932   
  6,300     

Mitsui Sumitomo Insurance Company Limited, 144A, (5)

    7.000%         3/15/72         A–         7,304,850   
  11,400     

Total Insurance

                               13,923,782   
      Multi-Utilities – 0.1%                           
  2,000     

WEC Energy Group, Inc.

    6.250%         5/15/67         Baa1         1,440,000   
      Wireless Telecommunication Services – 0.1%                
  1,600     

Koninklijke KPN NV, 144A

    7.000%         3/28/73         BB         1,634,000   
$ 79,000     

Total Corporate Bonds (cost $81,909,092)

                               82,960,846   
Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 93.9% (66.3% of Total Investments)

  

  
      Banks – 35.5%                           
  10,400     

Banco Bilbao Vizcaya Argentaria S.A, Reg S

    9.000%         N/A (6)         BB       $ 10,877,298   
  2,000     

Banco Santander SA, Reg S

    6.375%         N/A (6)         Ba1         1,846,656   
  10,800     

Bank of America Corporation

    6.500%         N/A (6)         BB+         11,262,240   
  16,480     

Bank of America Corporation, (3)

    8.125%         N/A (6)         BB+         16,716,982   
  2,394     

Bank of America Corporation, (3)

    8.000%         N/A (6)         BB+         2,417,174   
  3,400     

Bank One Capital III

    8.750%         9/01/30         Baa2         5,024,377   
  1,600     

Barclays Bank PLC, 144A

    6.860%         N/A (6)         BBB–         1,840,320   
  19,875     

Barclays PLC

    7.434%         N/A (6)         BB+         19,335,434   
  15,200     

Barclays PLC

    8.250%         N/A (6)         BB+         15,920,495   
  1,200     

Chase Capital Trust II, Series B

    0.725%         2/01/27         Baa2         1,026,000   
  20,000     

Chase Capital Trust III, Series C, (5)

    0.777%         3/01/27         Baa2         17,100,000   
  5,500     

Citigroup Inc.

    5.950%         N/A (6)         BB+         5,362,500   
  13,000     

Citigroup Inc.

    6.250%         N/A (6)         BB+         13,077,090   
  6,000     

Citigroup Inc.

    8.400%         N/A (6)         BB+         6,577,500   
  5,500     

Citizens Financial Group Inc., 144A

    5.500%         N/A (6)         BB+         5,314,375   
  19,105     

Credit Agricole SA, 144A

    7.875%         N/A (6)         BB+         18,600,590   
  23,900     

Credit Agricole SA, 144A

    8.125%         N/A (6)         BB+         23,885,660   
  1,000     

Credit Agricole, S.A, 144A

    6.625%         N/A (6)         BB+         940,914   
  1,000     

Credit Agricole, S.A, Reg S

    7.875%         N/A (6)         BB+         973,598   
  9,500     

HSBC Bank PLC

    1.125%         6/19/35         A3         5,608,401   
  5,500     

HSBC Bank PLC

    0.975%         12/11/36         A3         3,249,125   
  10,850     

HSBC Capital Funding LP, Debt, 144A

    10.176%         N/A (6)         Baa1         16,139,375   
  5,000     

HSBC Holdings PLC

    6.375%         N/A (6)         BBB         4,818,050   

 

Nuveen Investments     27   


JPS    Nuveen Quality Preferred Income Fund 2   
   Portfolio of Investments (continued)    January 31, 2016 (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Banks (continued)                           
  7,800     

JPMorgan Chase & Company

    6.000%         N/A (6)         BBB–       $ 7,785,375   
  1,400     

JPMorgan Chase & Company

    5.150%         N/A (6)         BBB–         1,333,640   
  2,800     

JP Morgan Chase Capital XXIII

    1.364%         5/15/47         Baa2         2,065,000   
  6,000     

KeyCorp Capital III

    7.750%         7/15/29         Baa2         7,305,810   
  16,047     

Lloyd’s Banking Group PLC

    7.500%         N/A (6)         BB+         16,608,645   
  6,350     

Lloyd’s Banking Group PLC, 144A

    6.657%         N/A (6)         Ba1         7,080,250   
  6,200     

M&T Bank Corporation

    6.375%         N/A (6)         Baa1         6,333,688   
  26,000     

M&T Bank Corporation

    6.875%         N/A (6)         Baa2         26,227,500   
  11,945     

Nordea Bank AB, 144A

    6.125%         N/A (6)         BBB         11,351,572   
  20,000     

PNC Financial Services Inc.

    6.750%         N/A (6)         Baa2         21,475,000   
  3,400     

Royal Bank of Scotland Group PLC

    7.648%         N/A (6)         BB         4,199,000   
  12,500     

Royal Bank of Scotland Group PLC

    8.000%         N/A (6)         BB–         12,828,125   
  21,128     

Royal Bank of Scotland Group PLC

    7.500%         N/A (6)         BB–         21,444,920   
  2,000     

Societe Generale, 144A

    7.875%         N/A (6)         BB+         1,927,500   
  37,200     

Societe Generale, 144A

    8.000%         N/A (6)         BB+         36,734,998   
  800     

Societe Generale, 144A

    1.363%         N/A (6)         BB+         736,000   
  2,000     

Societe Generale, Reg S

    7.875%         N/A (6)         BB+         1,927,500   
  6,450     

Standard Chartered PLC, 144A

    7.014%         N/A (6)         Baa2         6,837,000   
 

Total Banks

                               402,115,677   
      Capital Markets – 5.9%                           
  9,000     

Bank of New York Mellon Corporation

    4.950%         N/A (6)         Baa1         8,879,400   
  11,000     

Charles Schwab Corporation

    7.000%         N/A (6)         BBB         12,512,500   
  14,600     

Credit Suisse Group AG, 144A

    7.500%         N/A (6)         BB+         14,988,068   
  1,200     

Credit Suisse Group AG, 144A

    6.250%         N/A (6)         BB+         1,171,399   
  750     

Goldman Sachs Group Inc.

    5.700%         N/A (6)         Ba1         739,688   
  4,000     

Morgan Stanley

    5.550%         N/A (6)         Ba1         3,957,500   
  12,975     

UBS Group AG, Reg S

    7.125%         N/A (6)         BB+         13,378,510   
  11,400     

UBS Group AG, Reg S

    6.875%         N/A (6)         BB+         11,172,000   
 

Total Capital Markets

                               66,799,065   
      Diversified Financial Services – 5.2%                
  24,410     

BNP Paribas, 144A

    7.375%         N/A (6)         BBB–         23,952,313   
  2,861     

Countrywide Capital Trust III, Series B, (5)

    8.050%         6/15/27         BBB–         3,556,698   
  23,730     

Rabobank Nederland, 144A

    11.000%         N/A (6)         Baa2         28,836,696   
  2,300     

Voya Financial Inc.

    5.650%         5/15/53         Baa3         2,231,000   
 

Total Diversified Financial Services

                               58,576,707   
      Electric Utilities – 1.7%                           
  5,900     

Electricite de France, 144A

    5.250%         N/A (6)         Baa1         5,287,875   
  5,000     

FPL Group Capital Inc.

    6.650%         6/15/67         BBB         3,745,000   
  13,782     

PPL Capital Funding Inc., (5)

    6.700%         3/30/67         BBB         10,612,140   
 

Total Electric Utilities

                               19,645,015   
      Industrial Conglomerates – 4.3%                       
  47,613     

General Electric Company

    5.000%         N/A (6)         AA–         48,922,355   
      Insurance – 30.2%                           
  800     

Ace Capital Trust II

    9.700%         4/01/30         BBB+         1,136,400   
  6,400     

AIG Life Holdings Inc.

    8.500%         7/01/30         BBB         8,384,000   
  2,000     

Allstate Corporation

    5.750%         8/15/53         Baa1         2,037,500   
  1,200     

Allstate Corporation

    6.500%         5/15/57         Baa1         1,302,600   
  6,805     

American International Group, Inc., (5)

    8.175%         5/15/58         BBB         8,855,006   
  625     

AON Corporation

    8.205%         1/01/27         BBB         780,469   
  11,350     

AXA SA, (5)

    8.600%         12/15/30         A3         15,184,598   
  9,450     

AXA SA, 144A

    6.380%         N/A (6)         Baa1         10,064,250   
  19,659     

Catlin Insurance Company Limited, 144A

    7.249%         N/A (6)         BBB+         15,334,020   
  4,400     

Chubb Corporation

    6.375%         4/15/37         BBB+         4,120,600   
  6,500     

Dai-Ichi Life Insurance Company Ltd, 144A

    7.250%         N/A (6)         A–         7,540,000   
  2,500     

Dai-Ichi Life Insurance Company Ltd, 144A

    5.100%         N/A (6)         A–         2,625,000   
  1,200     

Everest Reinsurance Holdings, Inc.

    6.600%         5/15/37         BBB         1,061,880   

 

  28      Nuveen Investments


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Insurance (continued)                           
  16,150     

Glen Meadows Pass Through Trust, 144A

    6.505%         2/12/67         BBB–       $ 12,435,500   
  2,600     

Great West Life & Annuity Capital I, 144A

    6.625%         11/15/34         A–         2,940,821   
  6,600     

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

    7.153%         5/16/46         A–         6,600,000   
  2,488     

Hartford Financial Services Group Inc.

    8.125%         6/15/38         BBB–         2,680,820   
  13,669     

Liberty Mutual Group, 144A

    7.000%         3/15/37         Baa3         12,712,170   
  10,481     

Liberty Mutual Group, 144A, (5)

    7.800%         3/15/37         Baa3         11,948,340   
  4,390     

Lincoln National Corporation

    6.050%         4/20/67         BBB         3,190,981   
  2,700     

Lincoln National Corporation

    7.000%         5/17/66         BBB         2,011,500   
  16,600     

MetLife Capital Trust IV, 144A, (5)

    7.875%         12/15/37         BBB         19,920,000   
  31,100     

MetLife Capital Trust X, 144A, (5)

    9.250%         4/08/38         BBB         41,674,000   
  2,000     

MetLife Inc.

    10.750%         8/01/39         BBB         3,071,000   
  23,754     

National Financial Services Inc., (5)

    6.750%         5/15/37         Baa2         23,754,000   
  4,200     

Oil Insurance Limited, 144A

    3.585%         N/A (6)         Baa1         3,696,000   
  3,750     

Provident Financing Trust I

    7.405%         3/15/38         Baa3         4,240,684   
  6,225     

Prudential Financial Inc.

    5.875%         9/15/42         BBB+         6,528,469   
  1,135     

Prudential Financial Inc.

    8.875%         6/15/38         BBB+         1,275,456   
  21,550     

Prudential Financial Inc., (5)

    5.625%         6/15/43         BBB+         21,792,438   
  29,870     

QBE Cap Funding III Limited, 144A, (5)

    7.250%         5/24/41         BBB         32,857,000   
  17,500     

Sompo Japan Insurance, 144A

    5.325%         3/28/73         A–         18,353,125   
  5,000     

Sumitomo Life Insurance Company, 144A

    4.000%         9/20/73         A3         5,612,500   
  5,405     

XL Capital Ltd

    6.500%         N/A (6)         BBB         3,921,328   
  6,000     

XLIT Limited

    3.687%         N/A (6)         BBB–         4,728,750   
  18,257     

ZFS Finance USA Trust V, I44A, (3)

    6.500%         5/09/37         A         18,357,414   
 

Total Insurance

                               342,728,619   
      Machinery – 0.3%                           
  3,450     

Stanley Black & Decker Inc., (5)

    5.750%         12/15/53         BBB+         3,594,900   
      Multi-Utilities – 0.5%                           
  6,400     

Dominion Resources Inc.

    7.500%         6/30/66         BBB–         5,352,000   
      Oil, Gas & Consumable Fuels – 1.1%                
  12,400     

Enterprise Products Operating LP

    7.034%         1/15/68         Baa2         12,400,000   
      Real Estate Investment Trust – 4.1%                
  17,095     

First Union Capital Trust II, Series A

    7.950%         11/15/29         Baa1         22,979,766   
  2,772     

Sovereign Capital Trusts

    7.908%         6/13/36         Ba1         2,813,727   
  20,000     

Wells Fargo & Company, (3)

    7.980%         N/A (6)         BBB         20,900,000   
 

Total Real Estate Investment Trust

                               46,693,493   
      Road & Rail – 1.1%                           
  11,400     

Burlington Northern Santa Fe Funding Trust I

    6.613%         12/15/55         BBB         12,312,000   
      U.S. Agency – 0.2%                           
  1,700     

Farm Credit Bank of Texas, 144A

    10.000%         N/A (6)         Baa1         2,123,938   
      Wireless Telecommunication Services – 3.8%                
  36,228     

Centaur Funding Corporation, Series B

    9.080%         4/21/20         BBB–         43,620,776   
 

Total $1,000 Par (or similar) Institutional Preferred (cost $1,027,295,016)

  

              1,064,884,545   
Shares     Description (1), (7)                           Value  
      INVESTMENT COMPANIES – 1.3% (0.9% of Total Investments)                
  599,835     

Blackrock Credit Allocation Income Trust IV

           $ 7,347,979   
  395,914     

John Hancock Preferred Income Fund III

                               7,142,289   
 

Total Investment Companies (cost $21,285,098)

                               14,490,268   
 

Total Long-Term Investments (cost $1,540,446,359)

                               1,594,783,816   

 

Nuveen Investments     29   


JPS    Nuveen Quality Preferred Income Fund 2   
   Portfolio of Investments (continued)    January 31, 2016 (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity            Value  
      SHORT-TERM INVESTMENTS – 0.8% (0.6% of Total Investments)                         
 

REPURCHASE AGREEMENTS – 0.8% (0.6% of Total Investments)

          
$ 8,859     

Repurchase Agreement with Fixed Income Clearing Corporation, dated 1/29/16, repurchase price $8,859,287,
collateralized by $6,475,000 U.S. Treasury Bonds,
4.750%, due 2/15/37, value $9,843,351

    0.030%         2/01/16            $ 8,859,287   
 

Total Short-Term Investments (cost $8,859,287)

                           8,859,287   
 

Total Investments (cost $1,549,305,646) – 141.4%

                           1,603,643,103   
 

Borrowings – (41.1)% (8), (9)

                           (465,800,000
 

Other Assets Less Liabilities – (0.3)% (10)

                           (3,348,788
 

Net Assets Applicable to Common Shares – 100%

                         $ 1,134,494,315   

Investments in Derivatives as of January 31, 2016

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)
    Optional
Termination
Date
    Termination
Date
    Value     Unrealized
Appreciation
(Depreciation)
 

JPMorgan Chase Bank, N.A.

  $ 134,344,000        Receive        1-Month USD-LIBOR-ICE        1.462     Monthly        6/01/16        12/01/18        12/01/20      $ (3,290,100   $ (3,979,486

JPMorgan Chase Bank, N.A.

    134,344,000        Receive        1-Month USD-LIBOR-ICE        1.842        Monthly        6/01/16        12/01/20        12/01/22        (5,740,543     (6,684,864
    $ 268,688,000                                                             $ (9,030,643   $ (10,664,350

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

 

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

 

(5) Investment, or a portion of investment, is hypothecated as described in the Notes to Financial Statements, Note 8 – Borrowings Arrangements, Rehypothecation. The total value of investments hypothecated as of the end of the reporting period was $194,909,554.

 

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

 

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

 

(8) Borrowings as a percentage of Total Investments is 29.0%.

 

(9) The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for borrowings. As of the end of the reporting period, investments with a value of $944,302,016 have been pledged as collateral for borrowings.

 

(10) Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable.

 

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

 

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-ICE United States Dollar – London Inter-Bank Offered Rate Intercontinental Exchange

 

See accompanying notes to financial statements.

 

  30      Nuveen Investments


JHP

 

Nuveen Quality Preferred Income Fund 3

  

Portfolio of Investments

   January 31, 2016 (Unaudited)

 

Shares     Description (1)   Coupon            Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 138.3% (96.9% of Total Investments)

  

        
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 35.6% (25.0% of Total Investments)

     
      Banks – 7.3%                         
  12,300     

AgriBank FCB, (3)

    6.875%            BBB+       $ 1,323,788   
  13,391     

Citigroup Inc., (4)

    7.125%            BB+         365,173   
  68,453     

Citigroup Inc.

    6.875%            BB+         1,880,404   
  25,000     

HSBC Holdings PLC

    8.000%            Baa1         651,500   
  15,816     

HSBC USA Inc.

    6.500%            BBB+         409,634   
  210,980     

ING Groep N.V.

    7.050%            Baa3         5,496,029   
  211,700     

PNC Financial Services

    6.125%              Baa2         5,902,196   
 

Total Banks

                           16,028,724   
      Capital Markets – 3.5%                         
  6,130     

Charles Schwab Corporation

    6.000%            BBB         160,422   
  237,252     

Deutsche Bank Capital Funding Trust II

    6.550%            BB+         5,985,868   
  42,000     

Goldman Sachs Group, Inc.

    5.500%            Ba1         1,048,740   
  4,000     

Morgan Stanley

    7.125%            Ba1         113,720   
  9,600     

State Street Corporation

    5.900%            Baa1         258,240   
  194     

State Street Corporation

    5.250%              Baa1         5,001   
 

Total Capital Markets

                           7,571,991   
      Diversified Telecommunication Services – 3.2%                     
  26,409     

Qwest Corporation

    7.500%            BBB–         683,729   
  85,069     

Qwest Corporation

    7.375%            BBB–         2,180,318   
  72,881     

Qwest Corporation

    7.000%            BBB–         1,889,076   
  19,554     

Qwest Corporation

    7.000%            BBB–         508,208   
  22,600     

Qwest Corporation, (4)

    6.875%            BBB–         582,402   
  10,000     

Qwest Corporation

    6.625%            Baa3         247,900   
  9,900     

Qwest Corporation

    6.125%            BBB–         245,025   
  25,859     

Verizon Communications Inc.

    5.900%              A–         685,781   
 

Total Diversified Telecommunication Services

                           7,022,439   
      Electric Utilities – 1.9%                         
  35,000     

Alabama Power Company, (3)

    6.450%            A3         938,438   
  1,330     

Entergy Arkansas Inc.

    5.750%            A–         33,769   
  1,611     

Entergy Louisiana LLC

    5.250%            A2         41,612   
  5,000     

Entergy Mississippi Inc.

    6.000%            A–         130,800   
  16,971     

Interstate Power and Light Company

    5.100%            BBB         437,003   
  11,864     

NextEra Energy Inc.

    5.700%            BBB         304,549   
  90,160     

NextEra Energy Inc.

    5.625%              BBB         2,327,030   
 

Total Electric Utilities

                           4,213,201   
      Food Products – 0.7%                         
  10,400     

Dairy Farmers of America Inc., 144A, (3)

    7.875%            Baa3         1,106,626   
  3,500     

Dairy Farmers of America Inc., 144A, (3)

    7.875%              Baa3         356,672   
 

Total Food Products

                           1,463,298   
      Insurance – 12.1%                         
  306,300     

Aegon N.V.

    6.375%            Baa1         7,838,217   
  40,300     

Aflac Inc.

    5.500%            Baa1         1,034,501   
  71,000     

Allstate Corporation

    5.100%            Baa1         1,797,010   
  42,869     

American Financial Group

    6.250%            Baa2         1,123,168   
  26,700     

Arch Capital Group Limited

    6.750%            BBB+         694,200   
  11,500     

Aspen Insurance Holdings Limited

    7.250%            BBB–         302,910   
  51,683     

Aspen Insurance Holdings Limited

    5.950%            BBB–         1,337,039   
  42,194     

Axis Capital Holdings Limited

    6.875%            BBB         1,104,217   
  61,228     

Axis Capital Holdings Limited

    5.500%            BBB         1,538,047   

 

Nuveen Investments     31   


JHP    Nuveen Quality Preferred Income Fund 3   
   Portfolio of Investments (continued)    January 31, 2016 (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
 

Insurance (continued)

          
  90,100     

Delphi Financial Group, Inc., (3)

    7.376%            BB+       $ 2,227,164   
  84,800     

Hartford Financial Services Group Inc.

    7.875%            BBB–         2,603,360   
  63,344     

Prudential PLC

    6.750%            A–         1,658,346   
  32,000     

Reinsurance Group of America Inc.

    6.200%            BBB         915,200   
  71,639     

RenaissanceRe Holdings Limited

    5.375%            BBB+         1,798,139   
  23,487     

Torchmark Corporation

    5.875%                  BBB+         612,540   
 

Total Insurance

                               26,584,058   
      Machinery – 0.8%                           
  66,519     

Stanley, Black, and Decker Inc., (4)

    5.750%                  BBB+         1,709,538   
      Real Estate Investment Trust – 3.7%                
  50,000     

DDR Corporation

    6.250%            Baa3         1,263,500   
  26,875     

Digital Realty Trust Inc.

    7.375%            Baa3         719,444   
  51,864     

Hospitality Properties Trust

    7.125%            Baa3         1,346,389   
  16,976     

Kimco Realty Corporation,

    5.625%            Baa2         426,607   
  49,396     

PS Business Parks, Inc.

    6.000%            BBB         1,257,128   
  117,100     

Realty Income Corporation

    6.625%            Baa2         3,082,072   
  4,422     

Ventas Realty LP

    5.450%                  BBB+         117,272   
 

Total Real Estate Investment Trust

                               8,212,412   
      U.S. Agency – 1.0%                           
  20,000     

Farm Credit Bank of Texas, 144A, (3)

    6.750%                  Baa1         2,133,750   
      Wireless Telecommunication Services – 1.4%                
  70,400     

Telephone and Data Systems Inc.

    7.000%            BB+         1,773,376   
  31,000     

Telephone and Data Systems Inc.

    6.875%            BB+         789,570   
  765     

United States Cellular Corporation

    7.250%            Ba1         19,430   
  5,644     

United States Cellular Corporation

    7.250%            Ba1         141,326   
  10,591     

United States Cellular Corporation

    6.950%                  Ba1         267,423   
 

Total Wireless Telecommunication Services

                               2,991,125   
 

Total $25 Par (or similar) Retail Preferred (cost $73,991,363)

  

              77,930,536   
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 8.6% (6.0% of Total Investments)

  

        
      Banks – 5.9%                           
$ 3,100     

Barclays Bank PLC

    7.750%         4/10/23         BBB–       $ 3,286,000   
  250     

Den Norske Bank

    0.688%         11/29/49         Baa2         151,250   
  250     

Den Norske Bank

    0.482%         8/29/49         Baa2         151,250   
  1,300     

ING Group N.V.

    6.500%         12/29/49         Ba1         1,259,375   
  2,000     

JPMorgan Chase & Company

    5.300%         12/29/49         BBB–         1,982,500   
  5,000     

JPMorgan Chase & Company

    6.750%         1/29/49         BBB–         5,412,500   
  600     

Nordea Bank AB, 144A

    5.500%         9/23/49         BBB         576,000   
  12,500     

Total Banks

                               12,818,875   
      Capital Markets – 0.4%                           
  910     

Macquarie Bank Limited, Reg S

    10.250%         6/20/57         BB+         975,937   
      Construction & Engineering – 0.3%                
  600     

Hutchison Whampoa International 12 Limited, 144A

    6.000%         11/07/62         BBB         624,900   
      Insurance – 2.0%                           
  700     

AIG Life Holdings Inc., 144A

    7.570%         12/01/45         BBB         913,500   
  2,750     

Liberty Mutual Group Inc., 144A

    7.697%         10/15/97         BBB+         3,545,029   
  3,450     

Total Insurance

                               4,458,529   
$ 17,460     

Total Corporate Bonds (cost $18,159,760)

                               18,878,241   

 

  32      Nuveen Investments


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 92.8% (65.0% of Total Investments)

  

  
      Banks – 39.8%                           
  1,800     

Banco Bilbao Vizcaya Argentaria S.A, Reg S

    9.000%         N/A (5)         BB       $ 1,882,609   
  8,150     

Bank of America Corporation, (4)

    8.000%         N/A (5)         BB+         8,228,892   
  5,060     

Barclays PLC

    7.434%         N/A (5)         BB+         4,922,631   
  4,600     

Barclays PLC

    8.250%         N/A (5)         BB+         4,818,045   
  2,400     

Chase Capital Trust II, Series B

    0.725%         2/01/27         Baa2         2,052,000   
  4,100     

Citigroup Inc.

    6.250%         N/A (5)         BB+         4,124,312   
  1,000     

Citigroup Inc.

    5.950%         N/A (5)         BB+         975,000   
  1,000     

Citizens Financial Group Inc., 144A

    5.500%         N/A (5)         BB+         966,250   
  1,000     

Credit Agricole SA, 144A

    7.875%         N/A (5)         BB+         973,598   
  6,800     

Credit Agricole SA, 144A

    8.125%         N/A (5)         BB+         6,795,920   
  2,600     

Credit Agricole, S.A, Reg S

    7.875%         N/A (5)         BB+         2,531,355   
  3,000     

First Chicago NBD Institutional Capital I

    0.790%         2/01/27         Baa2         2,565,000   
  500     

HSBC Bank PLC

    1.125%         N/A (5)         A3         295,179   
  1,500     

HSBC Bank PLC

    0.975%         N/A (5)         A3         886,125   
  2,800     

HSBC Capital Funding LP, Debt, 144A

    10.176%         N/A (5)         Baa1         4,165,000   
  800     

JPMorgan Chase & Company

    5.150%         N/A (5)         BBB–         762,080   
  1,800     

JPMorgan Chase Capital XXIII

    1.364%         5/15/47         Baa2         1,327,500   
  6,425     

Lloyd’s Banking Group PLC

    7.500%         N/A (5)         BB+         6,649,875   
  600     

Lloyd’s Banking Group PLC, 144A

    6.657%         N/A (5)         Ba1         669,000   
  2,500     

Lloyd’s Banking Group PLC, 144A

    6.413%         N/A (5)         Ba1         2,756,250   
  1,100     

M&T Bank Corporation

    6.375%         N/A (5)         Baa1         1,123,719   
  4,500     

M&T Bank Corporation

    6.875%         N/A (5)         Baa2         4,539,375   
  695     

Nordea Bank AB, 144A

    6.125%         N/A (5)         BBB         660,472   
  2,000     

PNC Financial Services Inc.

    6.750%         N/A (5)         Baa2         2,147,500   
  1,875     

Royal Bank of Scotland Group PLC

    8.000%         N/A (5)         BB–         1,924,219   
  4,075     

Royal Bank of Scotland Group PLC

    7.500%         N/A (5)         BB–         4,136,125   
  7,200     

Societe Generale, 144A

    8.000%         N/A (5)         BB+         7,110,000   
  500     

Societe Generale, 144A

    7.875%         N/A (5)         BB+         481,875   
  1,200     

Societe Generale, 144A

    1.363%         N/A (5)         BB+         1,104,000   
  300     

Societe Generale, Reg S

    7.875%         N/A (5)         BB+         289,125   
  4,800     

Standard Chartered PLC, 144A

    7.014%         N/A (5)         Baa2         5,088,000   
 

Total Banks

                               86,951,031   
      Capital Markets – 7.5%                
  2,100