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
811-22658
Nuveen Real Asset Income and Growth Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)
Mark L. Winget
Vice President and Secretary
333 West Wacker Drive
Chicago, Illinois 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (
800)
257-8787
Date of fiscal year end:
December
31
Date of reporting period:
December
31, 2025
Item 1. |
Reports to Stockholders. |
|
Closed-End Funds |
December 31, 2025 |
Nuveen
Closed-End Funds
| Nuveen Multi-Asset Income Fund |
NMAI | |
| Nuveen Real Asset Income and Growth Fund |
JRI | |
| Nuveen Real Estate Income Fund |
JRS | |
Annual
Report
IMPORTANT DISTRIBUTION NOTICE
for Shareholders of the Nuveen Real Estate Income Fund (JRS)
Annual Shareholder Report for the period ending December 31, 2025
The Nuveen Real Estate Income Fund (JRS) seek to offer attractive cash flow to its shareholders, by converting the expected long-term total return potential of the Fund’s investments in REITs into regular quarterly distributions. Following is a discussion of the Managed Distribution Policy the Fund uses to achieve this.
The Fund pays quarterly common share distributions that seek to convert the Fund’s expected long-term total return potential into regular cash flow. As a result, the Fund’s regular common share distributions (presently $0.1700 per share) may be derived from a variety of sources, including:
| • | distributions from portfolio companies (REITs), |
| • | realized capital gains or, |
| • | Possibly, returns of capital representing in certain cases unrealized capital appreciation. |
Such distributions are sometimes referred to as “managed distributions.” The Fund seeks to establish a distribution rate that roughly corresponds to the Adviser’s projections of the total return that could reasonably be expected to be generated by the Fund over an extended period of time. The Adviser may consider many factors when making such projections, including, but not limited to, long-term historical returns for the asset classes in which the Fund invests. As portfolio and market conditions change, the distribution amount and distribution rate on the Common Shares under the Fund’s Managed Distribution Policy could change.
When it pays a distribution, the Fund provides holders of its Common Shares a notice of the estimated sources of the Fund’s distributions (i.e., what percentage of the distributions is estimated to constitute ordinary income, short-term capital gains, long-term capital gains, and/or a non-taxable return of capital) on a year-to-date basis. It does this by posting the notice on its website (www.nuveen.com/cef), and by sending it in written form.
You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Managed Distribution Policy. The Fund’s actual financial performance will likely vary from month-to-month and from year-to-year, and there may be extended periods when the distribution rate will exceed the Fund’s actual total returns. The Managed Distribution Policy provides that the Board may amend or terminate the Policy at any time without prior notice to Fund shareholders. There are presently no reasonably foreseeable circumstances that might cause the Fund to terminate its Managed Distribution Policy.
2 |
Table
of Contents
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3 |
Important Notices
NMAI - Portfolio manager updates:
Effective January 7, 2026, Mark Zheng, CFA, James Kim and John Tribolet were added as portfolio managers of the Fund and Nathan Shetty and Anurag Dugar were removed as portfolio manager of the Fund. JRI - Portfolio manager updates:
Effective February 11, 2025, James Kim has been added as a portfolio manager of the Fund. Effective April 1, 2025, Jean Lin retired and is no longer a portfolio manager of the Fund. JRI – Rights Offering:
On January 15, 2026, the Board approved the terms of the issuance of Rights to the holders of the Fund’s Common Shares as of February 6, 2026 (the “Record Date”). Holders of Rights will be entitled to subscribe for additional Common shares (the “Offer”) at a discount to the market price of the Common Shares. After considering a number of factors, including potential benefits and costs, the Board and the Adviser, determined that the Offer will benefit both the Fund and its common shareholders and increase the assets of the Fund available to take advantage of existing investment opportunities, consistent with the Fund’s investment objective of providing shareholders with a high level of current income and long-term capital appreciation.
Certain key terms of the Offer include:
• Holders of Common Shares on the Record Date (“Record Date Shareholders”) will receive one Right for each outstanding Common Share owned on the Record Date. The Rights entitle the holders to purchase one new Common Share for every four Rights held (1-for-4).
• The subscription price per Common Share (the “Subscription Price”) will be determined based upon a formula equal to 95% of the average of the last reported sales price of the Common Shares on the NYSE on the Expiration Date and each of the four preceding trading days (the “Formula Price”). If, however, the Formula Price is less than 90% of the net asset value per Common Share at the close of trading on the NYSE on the Expiration Date, then the Subscription Price will be 90% of the Fund’s net asset value per Common Share at the close of trading on the NYSE on the Expiration Date. The Rights offering will expire at 5:00 p.m., Eastern time, on March 9, 2026 (the “Expiration Date”).
• Record Date Shareholders who fully exercise all Rights issued to them can subscribe, subject to certain limitations and allotment, for any additional Common Shares which were not subscribed for by other holders of Rights at the Subscription Price, subject to the right of the Board to eliminate this over-subscription privilege. Investors who are not Record Date Shareholders but who otherwise acquire Rights in the secondary market are not entitled to participate in the over-subscription privilege. If these requests exceed available Common Shares, they will be allocated pro rata among those fully exercising Record Date Shareholders who over-subscribe based on the number of Rights originally issued to them by the Fund.
• Rights are transferable and were admitted for trading on the NYSE under the symbol “JRI RTWI” initially trading “when-issued” on February 5, 2026. The Rights then began trading with regular settlement under the symbol “JRI RT” on February 10, 2026, and will cease trading at the close on March 6, 2026, one day before the Offer’s Expiration Date. During this time, Record Date Shareholders may also choose to sell their Rights.
More details about the Fund’s rights offering are available on www.nuveen.com/cef.
4 |
Discussion of Fund Performance
Nuveen Multi-Asset Income Fund (NMAI)
Nuveen Real Asset Income and Growth Fund (JRI)
Nuveen Real Estate Income Fund (JRS)
The Nuveen Multi-Asset Income Fund (NMAI) features features portfolio management by Nuveen Asset Management, LLC (NAM), Teachers Advisors, LLC (TAL) and Winslow Capital Management LLC (Winslow). NAM, TAL and Winslow each serve as a sub-adviser to the Fund and are each an affiliate of Nuveen Fund Advisors, LLC, the Fund’s investment adviser. Subsequent to the close of the reporting period, effective January 7, 2026, the Fund’s portfolio managers are Mark Zheng, CFA, FRM, James Kim and John Tribolet.
The Nuveen Real Asset Income and Growth Fund (JRI) features portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Fund’s investment adviser. The Fund’s portfolio managers are Tryg Sarsland, Brenda Langenfeld, CFA, Benjamin Kerl, Noah Hauser, CFA and James Kim.
The Nuveen Real Estate Income Fund (JRS) features portfolio management by a team of real estate investment professionals at Security Capital Research & Management Incorporated (Security Capital), a wholly owned subsidiary of JPMorgan Chase & Company. Anthony Manno Jr., Kevin Bedell and Nathan Gear, CFA, lead the investment and portfolio management team.
Below is a discussion of Fund performance and the factors that contributed and detracted during the 12-month reporting period ended December 31, 2025. For more information on each Fund’s investment objectives and policies, please refer to the Shareholder Update section at the end of the report.
Nuveen Multi-Asset Income Fund (NMAI)
What factors affected markets during the reporting period?
| • | Global equities posted healthy gains in 2025, led by non-U.S. developed markets, with emerging markets performing nearly as well. Both topped U.S. shares, as measured by the S&P 500 Index, by double digits for the first time since 2006, driven partly by a weaker U.S. dollar. In the U.S., large-cap growth stocks outperformed large-cap value. |
| • | U.S. Treasury yields broadly fell and the yield curve steepened during the reporting period. Intermediate-duration fixed income assets generally outperformed shorter-duration assets of similar credit rating, while very long-dated fixed income instruments underperformed. Additionally, the anticipation and announcements of tariffs by the U.S. on its trading partners contributed to volatility in April 2025 and weakened the U.S. dollar. |
| • | Credit spreads tightened during the reporting period. High-yield bonds, emerging markets debt, and preferred securities outperformed investment-grade bonds, while senior loans lagged. |
What key strategies were used to manage the Fund during the reporting period?
| • | The Fund seeks to provide attractive total return through high current income and capital appreciation. The Fund dynamically invests in a portfolio of equity and debt securities of issuers located around the world. |
| • | During the first quarter 2025, the Fund reduced its interest rates exposure by trimming the allocations to emerging markets debt and TIPS (Treasury inflation-protected securities), while increasing exposure to floating-rate loans. Additionally, after having reduced the equity exposure around mid-February 2025 via real assets and international developed stocks, the Fund added back some equity exposure in March 2025 via U.S. large-cap value and dividend growth stocks. |
| • | Early in the second quarter 2025, the Fund increased exposure to U.S. dividend growth stocks to take advantage of the April sell-off and began to wind down the Fund’s call overwriting overlay. Later in the quarter, the Fund reduced exposure to public real assets – both U.S. real estate investment trusts (REITs) and global infrastructure stocks – and to emerging markets equities, while increasing exposure to core U.S. and international developed market equities. In fixed income, the Fund reduced the floating-rate loans, preferred securities and mortgage-backed securities (MBS) allocations and increased the core bond and high yield bond allocations. |
5 |
Discussion of Fund Performance (continued)
| • | After September’s strong interest rate rally, the Fund reduced exposure to MBS and added an allocation to energy infrastructure master limited partnerships (MLPs), which helped lower the Fund’s interest rate sensitivity while enhancing the expected portfolio yield. |
| • | In the fourth quarter 2025, the Fund reduced exposure to floating-rate senior loans and increased allocation to equities as the Federal Reserve cut interest rates. |
How did the Fund perform and what factors affected relative performance?
For the 12-month reporting period ended December 31, 2025, NMAI returned 19.23%. The Fund outperformed the returns of the NMAI Blended Benchmark, which returned 15.16%. The NMAI Blended Benchmark, effective June 17, 2025, consists of 1) 50% MSCI ACWI Index (Net), 2) 35% Bloomberg U.S. Corporate high Yield Bond Index and 3) 15% Bloomberg U.S. Aggregate Bond Index. Prior to June 17, 2025, the NMAI Blended Benchmark consisted of 1) 50% MSCI ACWI (Net), and 2) 50% Bloomberg U.S. Corporate high Yield Bond Index.
Top contributors to relative performance
| • | The Fund’s use of leverage through bank borrowings and reverse repurchase agreements. |
| • | Within equities, an overweight allocation to international equities. |
| • | Within fixed income, an out-of-benchmark allocation to preferred securities. |
Top detractors from relative performance
| • | Within equities, an overweight allocation to U.S. equities. |
| • | Within fixed income, an overweight allocation to U.S. investment-grade bonds |
Nuveen Real Asset Income and Growth Fund (JRI)
What factors affected markets during the reporting period?
| • | The U.S. economy continued to expand, and pricing pressures generally eased, but inflation remained higher than the central bank’s 2% target. The labor market began to show signs of weakening toward the end of the reporting period. |
| • | Most global central banks continued to ease monetary policy. After holding steady throughout the first eight months of 2025, the Federal Reserve lowered rates by 25 basis points in September, October and December, bringing the federal funds rate to a range of 3.50%-3.75%. |
| • | In the United States, rates fell across all but the longest 30-year segment of the Treasury yield curve, but more so at the short end, causing the yield curve to steepen. The 10-year U.S. Treasury yield ended the reporting period 40 basis points lower at 4.18%. |
| • | Of the five segments within the JRI Blended Benchmark, global infrastructure common equities performed best during the reporting period, followed by the real estate common equity segment. |
| • | High yield bonds also rallied throughout the reporting period due to stronger-than-expected U.S. economic growth and consumer spending that supported credit spreads. |
| • | Despite looser monetary policy, the rate-sensitive real estate preferred securities sector within the JRI Blended Benchmark underperformed during the reporting period. |
6 |
What key strategies were used to manage the Fund during the reporting period?
| • | The Fund generally maintained a more defensive posture throughout its portfolio given ongoing geopolitical risks, along with uncertainty surrounding global growth, inflation and interest rates. The portfolio management team favored sectors that tend to have more resilient business models and greater earnings visibility, while also maintaining some cyclical exposure. |
| • | In the equity portion of the Fund, global infrastructure common shares represented the Fund’s largest overweight. Exposure increased in the more defensive and essential electric utilities sector because of these companies’ more visible cash flows and earnings, and importance in fulfilling the increased demand for power to develop generative artificial intelligence (AI). |
| • | Real estate common equity exposure also remained a modest overweight. Much of this sector continued to be attractive from a valuation standpoint relative to the broader equity market after underperforming due to higher interest rates. |
| • | The debt portion of the Fund remained an overweight at the end of the reporting period because of the potential for continued stock market volatility following three straight years of strong equity market advances. Additionally, the debt segment of the capital structure continued to offer attractive yields and pricing. |
| • | Within the debt portfolio, the portfolio management team made some opportunistic additions in commercial mortgage-backed securities (CMBS), largely due to relatively attractive spreads in the sector. While the majority of the Fund’s debt exposure remained in high yield bonds, the portfolio management team maintained modest exposure to higher-quality, investment-grade credits to allow for broader sector diversification than what was available in the high yield market. |
| • | The Fund maintained underweight exposures to preferred securities throughout the reporting period. Real estate preferreds remained the Fund’s largest underweight due to much lighter issuance and tight spreads in the sector. Global infrastructure preferreds also remained an underweight, with purchases focused on $1000 par institutional securities and hybrid structures within the group. |
| • | The portfolio management team maintained the Fund’s overweight to U.S. versus non-U.S. exposure throughout the reporting period because it found incrementally more attractive opportunities in the United States. |
How did the Fund perform and what factors affected relative performance?
For the 12-month reporting period ended December 31, 2025, JRI returned 14.15%. The Fund outperformed the returns of the JRI Blended Benchmark, which returned 10.82%. The JRI Blended Benchmark consists of 1) 25% FTSE EPRA Nareit Developed Index (Net), 2) 22% S&P Global Infrastructure Index (Net), 3) 20% ICE Hybrid & Preferred Infrastructure 7% Issuer Constrained Custom Index, 4) 13% FTSE Nareit Preferred Stock Index and 5) 20% Bloomberg U.S. Corporate High Yield Bond Index.
Top contributors to relative performance
| • | Security selection in real estate common equity, led by industrial companies, including an overweight position in LXP Industrial Trust. |
| • | Security selection in the gas utilities sector within the global infrastructure common equity segment, led by an out-of-benchmark position in Snam S.p.A. |
| • | An overweight to the electric transmission sector within the global infrastructure common equity segment, led by an overweight to National Grid. |
| • | An underweight to real estate preferred securities, including an underweight to hotel real estate investment trust (REIT) preferreds. |
7 |
Discussion of Fund Performance (continued)
| • | The Fund’s use of leverage through bank borrowings. In addition, the Fund’s use of leverage was accretive to overall common share income. |
Top detractors from relative performance
| • | An underweight to the airport sector within the global infrastructure common equity segment. |
| • | Security selection and an overweight position in real asset debt, including overweights to the rail, pipeline and technology infrastructure sectors. |
Nuveen Real Estate Income Fund (JRS)
What factors affected markets during the reporting period?
| • | The U.S. economy continued to expand, and pricing pressures generally eased, but inflation remained higher than the central bank’s 2% target. The labor market began to show signs of weakening toward the end of the reporting period. |
| • | Most global central banks continued to ease monetary policy. After holding rates steady throughout the first eight months of 2025, the Federal Reserve lowered rates three times between September and December, bringing the federal funds rate to a range of 3.50%-3.75%. |
| • | In the United States, rates fell across all but the longest 30-year segment of the Treasury yield curve, but more so at the short end, causing the curve to steepen over the reporting period. The 10-year U.S. Treasury yield ended the year 40 basis points lower at 4.18%. |
| • | Despite looser monetary policy, the real estate sector underperformed broader equity markets in 2025. Economic uncertainty and still-elevated interest rates hampered new real estate development, while investors favored technology-focused companies more closely tied to artificial intelligence (AI) spending throughout the reporting period. |
What key strategies were used to manage the Fund during the reporting period?
| • | The portfolio management team sought to maintain significant property type and geographic diversification while considering company credit quality and security type allocations. |
| • | Investment decisions were based on a multi-layered analysis of the company, the real estate it owns, its management and the relative price of the security. |
| • | The portfolio management team used fundamental security research to identify securities that it believed would be best positioned to generate sustainable income and potential price appreciation. |
| • | To manage risk at the portfolio level during the reporting period, the team continued to adjust the Fund’s exposures in common equity versus preferred securities, senior unsecured bonds, and cash. In general, during times of strong economic growth, the portfolio management team increased the Fund’s allocation to common equity. In less certain times, the portfolio management team tended to increase the Fund’s allocation toward preferred securities. |
How did the Fund perform and what factors affected relative performance?
For the 12-month reporting period ended December 31, 2025, JRS returned -1.70%. The Fund underperformed the returns of the JRS Blended Benchmark, which returned 3.44%. The JRS Blended Benchmark consists of 1) 60% FT Wilshire U.S. REIT Index and 2) 40% FTSE Nareit Preferred Stock Index.
8 |
Top contributors to relative performance
| • | An overweight to health care company Ventas Inc. |
| • | An overweight to industrial company First Industrial Realty Trust. |
Top detractors from relative performance
| • | An underweight to health care REIT Welltower Inc. |
| • | An overweight to Alexandria Real Estate Equities Inc. |
| • | An overweight to Healthpeak Properties Inc. |
| • | The Fund’s use of leverage through bank borrowings. |
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Each Fund uses credit quality ratings for its portfolio securities provided by Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s (S&P) and Fitch, Inc. (Fitch). For NMAI, if all three of Moody’s, S&P, and Fitch provide a rating for a security, the middle rating is used; if two of the three agencies rate a security, the lower rating is used; and if only one rating agency rates a security, that rating is used. For JRI and JRS, the highest rating given by Moody’s, S&P and Fitch is used. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. 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.
9 |
Common Share Information
NMAI and JRI DISTRIBUTION INFORMATION
The following information regarding the distributions for NMAI and JRI are as of December 31, 2025, the Funds’ fiscal and tax year end, and may differ from previously issued distribution notices.
Each Fund’s distribution policy, which may be changed by the Board, is to make regular monthly cash distributions to holders of its common shares (stated in terms of a fixed cents per common share dividend distribution rate which may be set from time to time). Each Fund intends to distribute all or substantially all of its net investment income each year through its regular monthly distribution and to distribute realized capital gains at least annually. In addition, in any monthly period, to maintain its declared per common share distribution amount, Each Fund may distribute more or less than its net investment income during the period. In the event a Fund distributes more than its net investment income during any yearly period, such distributions may also include realized gains and/or a return of capital. To the extent that a distribution includes a return of capital the NAV per share may erode. The practice of maintaining a stable distribution level had no material effect on the Fund’s investment strategy during the most recent fiscal period and is not expected to have such an effect in future periods, however, distributions in excess of Fund returns will cause its NAV per share to erode. For additional information, refer to the distribution information section below and in the Notes to Financial Statements herein.
The following table provides the sources of distributions and may include amounts attributed to realized gains and/or returns of capital. A return of capital may occur, for example, when some or all of the money that you invested in a Fund is paid back to you. A return of capital distribution does not necessarily reflect a Fund’s investment performance and should not be confused with “yield” or “income.” The Funds attribute these estimates equally to each regular distribution throughout the year.
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form 1099-DIV, which will be sent to shareholders shortly after calendar year-end. Because distribution source estimates are updated throughout the current fiscal year based on the Fund’s performance, those estimates may differ from both the tax information reported to you in your Fund’s 1099 statement, as well as the ultimate economic sources of distributions over the life of your investment. The figures in the table below provide the sources of distributions and may include amounts attributed to realized gains and/or returns of capital. More details about the Fund’s distributions are available on www.nuveen.com/en-us/closed-end-funds.
Data as of December 31, 2025
Per Share Sources of Distribution |
Percentage of Distributions |
|||||||||||||||||||||||||||||||||||
Per Share Distribution |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital |
||||||||||||||||||||||||||||
| NMAI (FYE 12/31) |
||||||||||||||||||||||||||||||||||||
| Current Distribution |
$ |
0.1160 |
$ |
0.0357 |
$ |
0.0000 |
$ |
0.0000 |
$ |
0.0803 |
30.80 |
% |
0.00 |
% |
0.00 |
% |
69.20 |
% | ||||||||||||||||||
| Fiscal YTD |
$ |
1.2895 |
$ |
0.3973 |
$ |
0.0000 |
$ |
0.0000 |
$ |
0.8922 |
30.80 |
% |
0.00 |
% |
0.00 |
% |
69.20 |
% | ||||||||||||||||||
| JRI (FYE 12/31) |
||||||||||||||||||||||||||||||||||||
| Current Distribution |
$ |
0.1335 |
$ |
0.0681 |
$ |
0.0000 |
$ |
0.0000 |
$ |
0.0654 |
51.00 |
% |
0.00 |
% |
0.00 |
% |
49.00 |
% | ||||||||||||||||||
| Fiscal YTD |
$ |
1.6020 |
$ |
0.8166 |
$ |
0.0000 |
$ |
0.0000 |
$ |
0.7854 |
51.00 |
% |
0.00 |
% |
0.00 |
% |
49.00 |
% | ||||||||||||||||||
JRS DISTRIBUTION INFORMATION
The following 19(a) Notice presents JRS’s most current distribution information as of December 31, 2025 as required by certain exempted regulatory relief the Fund has received.
Because the ultimate tax character of your distributions depends on the Fund’s performance for its entire fiscal year (which is the calendar year for the Fund) as well as certain fiscal year-end (FYE) tax adjustments, estimated distribution source information you receive with each distribution may differ from the tax information reported to you on your Fund’s IRS Form 1099 statement.
10 |
JRS makes regular cash distributions to shareholders of a stated dollar amount per share. Subject to approval and oversight by the Board of Trustees, the Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of the Fund’s investment strategy through regular distributions (a “Managed Distribution Program”). The practice of maintaining a stable distribution level had no material effect on the Fund’s investment strategy during the most recent fiscal period and is not expected to have such an effect in future periods, however, distributions in excess of Fund returns will cause its NAV per share to erode. For additional information, refer to the distribution information section below and in the Notes to Financial Statements herein.
DISTRIBUTION INFORMATION - AS OF November 30, 2025
This notice provides shareholders with information regarding fund distributions, as required by current securities laws. You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Managed Distribution Policy.
The following table provides estimates of the Fund’s distribution sources, reflecting year-to-date cumulative experience through the month-end prior to the latest distribution. The Fund attributes these estimates equally to each regular distribution throughout the year. Consequently, the estimated information as of the specified month-end shown below is for the current distribution, and also represents an updated estimate for all prior months in the year. It is estimated that the Fund has distributed more than its income and net realized capital gains; therefore, a portion of the distributions may be (and is shown below as being estimated to be) a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.”
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. More details about the Fund’s distributions and the basis for these estimates are available on www.nuveen.com/cef.
Data as of November 30, 2025
Per Share Estimated Sources of Distribution 1 |
Estimated Percentage of Distributions 1 |
|||||||||||||||||||||||||||||||||||
JRS (FYE 12/31) |
Per Share Distribution |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital |
|||||||||||||||||||||||||||
| Current Quarter |
$ |
0.1700 |
$ |
0.0369 |
$ |
0.0000 |
$ |
0.0000 |
$ |
0.1331 |
21.70 |
% |
0.00 |
% |
0.00 |
% |
78.30 |
% | ||||||||||||||||||
| Fiscal YTD |
$ |
0.6800 |
$ |
0.1477 |
$ |
0.0000 |
$ |
0.0000 |
$ |
0.5323 |
21.70 |
% |
0.00 |
% |
0.00 |
% |
78.30 |
% | ||||||||||||||||||
1
Net investment income (NII) is a projection through the end of the current calendar quarter using actual data through the stated month-end date above. Capital gain amounts are as of the stated date above. JRS owns REIT securities which attribute their distributions to various sources including NII, gains, and return of capital. The estimated per share sources above include an allocation of the NII based on prior year attributions which can be expected to differ from the actual final attributions for the current year. The following table provides information regarding the JRS’s distributions and total return performance over various time periods. This information is intended to help you better understand whether returns for the specified time periods were sufficient to meet its distributions.
Data as of November 30, 2025
Annualized |
Cumulative |
|||||||||||||||||||||||||||
| JRS (FYE 12/31) Inception Date |
Quarterly Distribution |
Fiscal YTD Distribution |
Net Asset Value (NAV) |
5-Year Return on NAV |
Fiscal YTD Dist Rate on NAV 1 |
Fiscal YTD Return on NAV |
Fiscal YTD Dist Rate on NAV 1 |
|||||||||||||||||||||
| Nov 2001 |
$ |
0.1700 |
$ |
0.6800 |
$ |
8.52 |
5.62 |
% |
7.98 |
% |
(0.06 |
)% |
7.98 |
% | ||||||||||||||
1
As a percentage of 11/ 30/25 NAV. DISTRIBUTION INFORMATION - AS OF December 31, 2025
The following tables provide information regarding the Fund’s common share distributions and total return performance for the fiscal year ended December 31, 2025. This information is intended to help you better understand whether the Fund’s returns for the specified time period were sufficient to meet its distributions.
11 |
Common Share Information (continued)
Data as of December 31, 2025
Per Share Sources of Distribution |
Percentage of Distributions |
|||||||||||||||||||||||||||||||||||
JRS (FYE 12/31) |
Per Share Distribution |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital1 |
Net Investment Income |
Long-Term Gains |
Short-Term Gains |
Return of Capital 1 |
|||||||||||||||||||||||||||
| Fiscal YTD |
$0.6800 |
$0.2097 |
$0.0000 |
$0.0000 |
$0.4703 |
30.80 |
% |
0.00 |
% |
0.00 |
% |
69.20 |
% | |||||||||||||||||||||||
1
Net investment income (NII) is a projection through the end of the current calendar quarter using actual data through the stated month-end date above. Capital gain amounts are as of the stated date above. JRS owns REIT securities which attribute their distributions to various sources including NII, gains, and return of capital. The estimated per share sources above include an allocation of the NII based on prior year attributions which can be expected to differ from the actual final attributions for the current year. Data as of December 31, 2025
Annualized | ||||||||||||||
JRS (FYE 12/31) Inception Date |
Net Asset Value (NAV) |
1-Year Return on NAV |
5-Year Return on NAV |
Fiscal YTD Dist Rate on NAV | ||||||||||
Nov 2001 |
$8.21 |
(1.70 |
)% |
4.68 |
% |
8.28% | ||||||||
NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS
The Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders are posted on www.nuveen.com and can be found on Nuveen’s enhanced closed-end fund resource page, which is at https://www.nuveen.com/resource-center-closedend funds, along with other Nuveen closed-end fund product updates. To ensure timely access to the latest information, shareholders may use a subscribe function, which can be activated at this web page (https://www.nuveen.com/subscriptions).
COMMON SHARE REPURCHASES
The Funds’ Board of Trustees authorized an open-market share repurchase program, allowing each Fund to repurchase and retire an aggregate of up to approximately 10% of its outstanding common shares.
During the current reporting period, the Funds did not repurchase any of their outstanding common shares. As of December 31, 2025 (and since the inception of the Funds’ repurchase programs), each Fund has cumulatively repurchased and retired common shares as shown in the accompanying table.
NMAI |
JRI |
JRS |
||||||||||
| Common shares cumulatively repurchased and retired |
0 |
243,500 |
0 |
|||||||||
| Common shares authorized for repurchase |
3,340,000 |
2,740,000 |
2,885,000 |
|||||||||
12 |
About the Funds’ Benchmarks
Bloomberg Global Capital Securities Index:
An index designed to measure the performance of fixed-rate, investment grade capital securities denominated in USD, EUR and GBP. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. Bloomberg U.S. Aggregate Bond Index:
An index designed to measure the performance of the USD-denominated, fixed-rate, U.S. investment grade taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-backed securities (MBS), asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS). Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. Bloomberg U.S. Corporate High Yield Bond Index:
An index designed to measure the performance of the USD-denominated, fixed rate corporate high yield bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. FTSE EPRA Nareit (Financial Times Stock Exchange – European Public Real Estate Association/National Association of Real Estate Investment Trusts) Developed Index (Net):
An index designed to measure the performance of listed real estate companies and REITs worldwide. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. FTSE Nareit (Financial Times Stock Exchange National Association of Real Estate Investment Trusts) Preferred Stock Index:
An index designed to measure the performance of U.S. publicly traded REITs preferred stocks. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. FT Wilshire U.S. Diversified REIT Index:
An index designed to measure the performance of U.S. publicly traded real estate securities. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. FT Wilshire U.S. REIT Index:
An index designed to measure the performance of the mainstream US REIT investment universe. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. ICE Hybrid & Preferred Infrastructure 7% Issuer Constrained Custom Index:
An index designed to measure the performance of the energy and utilities subgroups of the ICE BofA U.S. All Capital Securities Index. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. MSCI ACWI Index (Net):
An index designed to measure the performance of large and mid-cap stocks across 23 developed and 24 emerging markets. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. S&P 500
An index generally considered representative of the U.S. equity market. The index includes 500 leading companies and covers approximately 80% of available market capitalization. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. ®
Index:S&P Global Infrastructure Index (Net):
An index designed to measure the performance of listed infrastructure companies from around the world. To create diversified exposure across the global listed infrastructure market, the index has balanced weights across three distinct infrastructure clusters: utilities, transportation, and energy. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. Wells Fargo Hybrid & Preferred Securities REIT Index (discontinued on April 1, 2021):
An index designed to measure the performance of preferred securities issued in the U.S. market by REITs (index was discontinued on April 1, 2021). Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. Wilshire U.S. Real Estate Securities Index (WILRESI) (discontinued on January 1, 2025):
An index designed to measure the performance of U.S. publicly-traded real estate securities. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. 13 |
Fund Performance, Leverage and Holdings Summaries
The Fund Performance, Leverage and Holding Summaries for each Fund are shown below within this section of the report.
Fund Performance
Performance data for each Fund shown below represents past performance and does not predict or guarantee 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. Total returns for a period of less than one year are not annualized (i.e. cumulative returns). Since inception returns are shown for share classes that have less than 10-years of performance. For performance, current to the most recent month-end visit Nuveen.com or call (800) 257-8787.
Impact of Leverage
One important factor impacting the returns of the Funds’ common shares relative to their comparative benchmarks was the Funds’ use of leverage through bank borrowings and reverse repurchase agreements. The Funds use leverage because our research has shown that, over time, leveraging provides opportunities for additional income. The opportunity arises when short-term rates that a Fund pays on its leveraging instruments are lower than the interest the Fund earns on its portfolio of long-term bonds that it has bought with the proceeds of that leverage.
However, use of leverage can expose Fund common shares to additional price volatility. When a Fund uses leverage, the Fund’s common shares will experience a greater increase in their net asset value if the securities acquired through the use of leverage increase in value, but will also experience a correspondingly larger decline in their net asset value if the securities acquired through leverage decline in value. All this will make the shares’ total return performance more variable over time.
In addition, common share income in levered funds will typically decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease. In recent quarters, fund leverage expenses have generally tracked the overall movement of short-term interest rates. While fund leverage expenses are higher than their prior year lows, leverage nevertheless continues to provide the opportunity for incremental common share income, particularly over longer-term periods.
Leverage Ratios
Each Fund’s Effective Leverage and Regulatory Leverage Ratios are set forth below. “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 or borrowings of a Fund. Regulatory Leverage is a part of a Fund’s capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940. A Fund, however, may from time to time borrow for temporary purposes, typically on a transient basis in connection with its day-to-day operations, primarily in connection with the need to settle portfolio trades. Such temporary borrowings are excluded from the calculation of a Fund’s Effective Leverage and Regulatory Leverage ratios.
Holding Summaries
The Holdings Summaries data relates to the securities held in each Fund’s portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change. Refer to the Fund’s Portfolio of Investments for individual security information.
For financial reporting purposes NMAI uses credit quality ratings for its portfolio securities provided by Standard & Poor’s Group, Moody’s Investors Service, Inc. and Fitch, Inc. If all three provide a rating for a security, the middle is used; if two of the three agencies rate a security, the lower rating is used; and if only one rating agency rates a security, that rating is used. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Holdings designated N/R are not rated by these national rating agencies.
14 |
For financial reporting purposes JRI and JRS use the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Holdings designated N/R are not rated by these national rating agencies.
15 |
NMAI |
Nuveen Multi-Asset Income Fund | |
Fund Performance, Leverage and Holdings Summaries December 31, 2025 | ||
Performance* |
||
Total Returns as of December 31, 2025 |
||||||||||||
Average Annual |
||||||||||||
| Inception Date |
1-Year |
Since Inception |
||||||||||
| NMAI at Common Share NAV | 11/22/21 | 19.23% | 3.57% | |||||||||
| NMAI at Common Share Price | 11/22/21 | 19.86% | 2.75% | |||||||||
| S&P 500 ® Index |
— | 17.88% | 11.32% | |||||||||
| NMAI Blended Benchmark | — | 15.16% | 6.32% | |||||||||
| NMAI Blended Benchmark (old) | — | 15.35% | 6.98% | |||||||||
*For purposes of Fund performance, relative results are measured against the NMAI Blended Benchmark. The Fund’s Blended Benchmark consists of: 1) 50% MSCI ACWI Index (Net), 2) 35% Bloomberg U.S. Corporate High Yield Bond Index, and 3) 15% Bloomberg U.S. Aggregate Bond Index. Previously, the NMAI Blended Benchmark (old) consisted of: 1) 50% MSCI ACWI Index (Net) and 2) 50% Bloomberg U.S. Corporate High Yield Bond Index. The Fund’s investment adviser believes the new NMAI Blended Benchmark better reflects the securities in which the Fund primarily invests as well as the principal investment strategies employed by the Fund.
Daily Common Share NAV and Share Price
| Common Share NAV |
Common Share Price |
Premium/(Discount) to NAV |
Average Premium/(Discount) to NAV | |||||||||
$14.31 |
$13.04 |
(8.87)% |
(8.73)% |
Growth of an Assumed $10,000 Investment as of December 31, 2025 - Common Share Price
16 |
Leverage and Holdings
Leverage |
||
| Effective Leverage | 30.48% | |
| Regulatory Leverage | 26.76% |
| Fund Allocation (% of net assets) |
||
Common Stocks |
70.0% | |
Corporate Bonds |
19.3% | |
Emerging Market Debt and |
||
| Foreign Corporate Bonds |
14.7% | |
Mortgage-Backed Securities |
12.3% | |
| Variable Rate Senior Loan Interests |
10.5% | |
Exchange-Traded Funds |
7.6% | |
| U.S. Government and Agency Obligations |
5.8% | |
Preferred Stock |
1.1% | |
Asset-Backed Securities |
0.5% | |
Investment Companies |
0.0% | |
Repurchase Agreements |
2.2% | |
Other Assets & Liabilities, Net |
(0.2)% | |
Reverse Repurchase |
||
Agreements, including accrued interest |
(7.3)% | |
Borrowings |
(36.5)% | |
| Net Assets |
100% |
| Portfolio Credit Quality (% of total investments) |
||
AAA |
2.0% | |
AA |
10.7% | |
A |
0.8% | |
BBB |
7.8% | |
BB or Lower |
22.3% | |
N/R (not rated) |
0.9% | |
N/A (not applicable) |
55.5% | |
| Total |
100% |
| Portfolio Composition 1 (% of total investments) |
||
Banks |
7.6% | |
Capital Goods |
6.8% | |
Exchange-Traded Funds |
5.3% | |
Semiconductors & Semiconductor Equipment |
4.7% | |
Financial Services |
4.6% | |
Utilities |
4.1% | |
Energy |
4.1% | |
Software & Services |
4.1% | |
Media & Entertainment |
3.9% | |
Materials |
3.5% | |
Technology Hardware & Equipment |
3.2% | |
Pharmaceuticals, Biotechnology & Life Sciences |
3.2% | |
Consumer Discretionary Distribution & Retail |
2.8% | |
Health Care Equipment & Services |
2.6% | |
Food, Beverage & Tobacco |
2.3% | |
Insurance |
2.3% | |
Consumer Durables & Apparel |
1.8% | |
Consumer Services |
1.6% | |
Transportation |
1.3% | |
Consumer Staples Distribution & Retail |
1.2% | |
Other |
4.4% | |
Emerging Market Debt and Foreign Corporate Bonds |
10.2% | |
Mortgage-Backed Securities |
8.6% | |
U.S. Government and Agency Obligations |
4.0% | |
Asset-Backed Securities |
0.3% | |
Investment Companies |
0.0% | |
Repurchase Agreements |
1.5% | |
| Total |
100% |
| Country Allocation 2 (% of total investments) |
||
United States |
73.6% | |
Japan |
3.4% | |
United Kingdom |
3.1% | |
France |
2.4% | |
Germany |
2.0% | |
Spain |
1.9% | |
Switzerland |
1.5% | |
Canada |
1.2% | |
Netherlands |
1.1% | |
Mexico |
1.1% | |
Other |
8.7% | |
| Total |
100% |
| 1 | See the Portfolio of Investments for the remaining industries/sectors comprising “Other” and not listed in the table above. |
| 2 | Includes 7.7% (as -a percentage of total investments) in emerging market countries. |
17 |
JRI |
Nuveen Real Asset Income and Growth Fund Fund Performance, Leverage & Holdings Summaries December 31, 2025 |
Performance*
Total Returns as of December 31, 2025 | ||||||||||||||
Average Annual | ||||||||||||||
| Inception Date |
1-Year |
5-Year |
10-Year | |||||||||||
JRI at Common Share NAV |
4/25/12 |
14.15% |
5.77% |
5.70% | ||||||||||
JRI at Common Share Price |
4/25/12 |
26.60% |
10.58% |
8.20% | ||||||||||
MSCI World Index (Net) |
— |
21.09% |
12.15% |
12.17% | ||||||||||
JRI Blended Benchmark |
— |
10.82% |
4.93% |
5.74% | ||||||||||
* For purposes of Fund performance, relative results are measured against the JRI Blended Benchmark. Effective April 1, 2021, the JRI Blended benchmark consists of: 1) 25% FTSE EPRA Nareit Developed Index (Net), 2) 22% S&P Global Infrastructure Index (Net), 3) 20% ICE Hybrid & Preferred Infrastructure 7% Issuer Constrained Custom Index, 4) 13% FTSE Nareit Preferred Stock Index and 5) 20% Bloomberg U.S. Corporate High Yield Bond Index. Through March 31, 2021, the JRI Blended Benchmark consisted of 1) 21% FTSE EPRA Nareit Developed Index (Net), 2) 28% S&P Global Infrastructure Index (Net), 3) 15% Bloomberg Global Capital Securities Index, 4) 18% Wells Fargo Hybrid & Preferred Securities REIT Index, and 5) 18% Bloomberg U.S. Corporate High Yield Index.
Daily Common Share NAV and Share Price
| Common Share NAV |
Common Share Price |
Premium/(Discount) to NAV |
Average Premium/(Discount) to NAV | |||||||||
$13.37 |
$13.61 |
1.80% |
(1.43)% |
Growth of an Assumed $10,000 Investment as of December 31, 2025 -
Common Share Price
18 |
Leverage and Holdings
Leverage |
||
| Effective Leverage |
31.78% | |
| Regulatory Leverage |
31.78% | |
| Fund Allocation (% of net assets) |
||
| Common Stocks |
70.5% | |
| Corporate Bonds |
47.4% | |
| Preferred Stock |
15.4% | |
| Variable Rate Senior Loan Interests |
3.6% | |
| Convertible Preferred Securities |
3.3% | |
| Mortgage-Backed Securities |
3.0% | |
| Investment Companies |
0.8% | |
| Repurchase Agreements |
2.5% | |
| Other Assets & Liabilities, Net |
0.1% | |
| Borrowings |
(46.6)% | |
Net Assets |
100% | |
| Portfolio Credit Quality (% of total investments) |
||
| AA |
0.3% | |
| A |
2.4% | |
| BBB |
22.1% | |
| BB or Lower |
20.2% | |
| N/R (not rated) |
4.6% | |
| N/A (not applicable) |
50.4% | |
Total |
100% | |
| Portfolio Composition (% of total investments) |
||
| Utilities |
27.6% | |
| Common Stocks |
24.0% | |
| Energy |
16.4% | |
Equity Real Estate Investment Trusts (REITs) |
11.0% | |
| Transportation |
3.5% | |
| Telecommunication Services |
2.9% | |
| Mortgage-Backed Securities |
2.1% | |
Real Estate Management & Development |
1.8% | |
| Consumer Services |
1.7% | |
| Capital Goods |
1.6% | |
Health Care Equipment & Services |
1.3% | |
| Financial Services |
1.0% | |
| Media & Entertainment |
1.0% | |
| Investment Companies |
0.5% | |
Consumer Discretionary Distribution & Retail |
0.5% | |
| Preferred Stock |
0.5% | |
| Commercial & Professional Services |
0.4% | |
| Materials |
0.2% | |
| Automobiles & Components |
0.2% | |
| Technology Hardware & Equipment |
0.1% | |
| Repurchase Agreements |
1.7% | |
Total |
100% |
| Country Allocation 1 (% of total investments) |
||
| United States |
69.1% | |
| Canada |
10.0% | |
| United Kingdom |
5.2% | |
| France |
2.5% | |
| Italy |
2.5% | |
| Singapore |
1.7% | |
| Australia |
1.6% | |
| Japan |
1.5% | |
| Mexico |
1.2% | |
| Hong Kong |
1.1% | |
| Other |
3.6% | |
Total |
100% |
1 Includes 2.0% (as a percentage of total investments) in emerging market countries
19 |
JRS |
Nuveen Real Estate Income Fund Fund Performance, Leverage & Holdings Summaries December 31, 2025 |
Performance*
Total Returns as of December 31, 2025 | ||||||||||||||
| Average Annual | ||||||||||||||
| Inception Date |
1-Year |
5-Year |
10-Year | |||||||||||
JRS at Common Share NAV |
11/15/01 |
(1.70)% |
4.68% |
4.48% | ||||||||||
JRS at Common Share Price |
11/15/01 |
(3.39)% |
6.70% |
5.42% | ||||||||||
FT Wilshire U.S. REIT Index |
— |
2.71% |
6.49% |
5.73% | ||||||||||
FT Wilshire US Diversified REIT Index |
— |
3.47% |
7.04% |
5.74% | ||||||||||
JRS Blended Benchmark |
— |
3.44% |
4.87% |
4.96% | ||||||||||
* For purposes of Fund performance, relative results are measured against the JRS Blended Benchmark. Effective January 1, 2025, the JRS Blended Benchmark consisted of: 1) 60% FT Wilshire U.S. REIT Index and 2) 40% FTSE Nareit Preferred Stock Index. Through December 31, 2024, the JRS Blended Benchmark consisted of: 1) 60% Wilshire U.S. Real Estate Securities Index and 2) 40% FTSE Nareit Preferred Stock Index. Through March 31, 2021, the JRS Blended Benchmark consisted of 1) 60% Wilshire U.S. Real Estate Securities Index and 2) 40% Wells Fargo Hybrid & Preferred Securities REIT Index.
Daily Common Share NAV and Share Price
| Common Share NAV |
Common Share Price |
Premium/(Discount) to NAV |
Average Premium/(Discount) to NAV | |||||||||
$8.21 |
$7.66 |
(6.70)% |
(6.74)% |
Growth of an Assumed $10,000 Investment as of December 31, 2025 - Common Share Price
20 |
Leverage and Holdings
Leverage |
||
Effective Leverage |
30.15% | |
Regulatory Leverage |
30.15% | |
Fund Allocation (% of net assets) |
||
| Common Stocks |
103.5% | |
| Preferred Stock |
38.0% | |
| Convertible Preferred Securities |
0.7% | |
| Repurchase Agreements |
2.6% | |
| Other Assets & Liabilities, Net |
(1.6)% | |
| Borrowings |
(43.2)% | |
Net Assets |
100% | |
| Portfolio Credit Quality (% of total investments) |
||
A |
3.1% | |
BBB |
13.1% | |
BB or Lower |
4.8% | |
N/R (not rated) |
5.7% | |
N/A (not applicable) |
73.3% | |
Total |
100% |
| Portfolio Composition 1 (% of total investments) |
||
Retail REITs |
19.3% | |
Office REITs |
12.5% | |
Industrial REITs |
11.8% | |
Health Care REITs |
11.0% | |
Data Center REITs |
10.3% | |
Multi-Family Residential REITs |
9.6% | |
Self-Storage REITs |
8.3% | |
Hotel & Resort REITs |
4.9% | |
Single-Family Residential REITs |
4.9% | |
Other Specialized REITs |
2.0% | |
Other |
3.6% | |
Repurchase Agreements |
1.8% | |
Total |
100% |
| 1 | See the Portfolio of Investments for the remaining industries/sectors comprising “Other” and not listed in the table above. |
21 |
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees and Shareholders of Nuveen Multi-Asset Income Fund, Nuveen Real Asset Income and Growth Fund and Nuveen Real Estate Income Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Multi-Asset Income Fund, Nuveen Real Asset Income and Growth Fund and Nuveen Real Estate Income Fund (hereafter collectively referred to as the “Funds”), as of December 31, 2025, the related statements of operations, changes in net assets, and cash flows, including the related notes, and the financial highlights for the year ended December 31, 2025 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2025, and the results of each of their operations, changes in each of their net assets, each of their cash flows and each of the financial highlights for the year ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
The financial statements of the Funds as of and for the year ended December 31, 2024 and the financial highlights for each of the periods ended on or prior to December 31, 2024 (not presented herein, other than the statement of changes in net assets and the financial highlights) were audited by other auditors whose report dated February 28, 2025 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025 by correspondence with the custodian, transfer agent, agent banks and brokers; when replies were not received from agent banks or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
February 27, 2026
We have served as the auditor of one or more investment companies in Nuveen Funds since 2002.
Portfolio of Investments December 31, 2025
NMAI
‘
See Notes to Financial Statements |
23 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
24 |
See Notes to Financial Statements |
See Notes to Financial Statements |
25 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
26 |
See Notes to Financial Statements |
See Notes to Financial Statements |
27 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
28 |
See Notes to Financial Statements |
PRINCIPAL |
DESCRIPTION |
RATE |
MATURITY |
VALUE |
||||||||||||||
| |
|
|||||||||||||||||
BANKS (continued) |
||||||||||||||||||
| $229,000 | (g),(h),(i) | Fifth Third Bancorp (TSFR3M + 3.295%) | 6.967% | N/A | $ | 229,453 | ||||||||||||
| 163,000 | (g),(h) | First Citizens BancShares Inc/NC | 7.000 | N/A | 166,664 | |||||||||||||
| 242,000 | (g),(h),(i) | First Citizens BancShares Inc/NC (TSFR3M + 4.234%) | 7.957 | N/A | 245,051 | |||||||||||||
| 431,000 | (g),(h) | Huntington Bancshares Inc/OH | 5.625 | N/A | 438,595 | |||||||||||||
| 268,000 | (g),(h) | Huntington Bancshares Inc/OH | 6.250 | N/A | 268,226 | |||||||||||||
| 351,000 | (g),(h) | JPMorgan Chase & Co | 6.500 | N/A | 364,728 | |||||||||||||
| 1,103,000 | (c),(g),(h) | JPMorgan Chase & Co | 6.875 | N/A | 1,169,748 | |||||||||||||
| 270,000 | (g),(h) | M&T Bank Corp | 5.125 | N/A | 269,526 | |||||||||||||
| 135,000 | Morgan Stanley Private Bank NA | 4.204 | 11/17/28 | 135,422 | ||||||||||||||
| 905,000 | Morgan Stanley Private Bank NA | 4.465 | 11/19/31 | 907,369 | ||||||||||||||
| 325,000 | (g),(h) | PNC Financial Services Group Inc/The | 6.000 | N/A | 328,508 | |||||||||||||
| 253,000 | (g),(h) | PNC Financial Services Group Inc/The | 3.400 | N/A | 248,026 | |||||||||||||
| 529,000 | (g),(h) | PNC Financial Services Group Inc/The | 6.250 | N/A | 546,132 | |||||||||||||
| 715,000 | (g),(h) | Truist Financial Corp | 6.669 | N/A | 716,956 | |||||||||||||
| 152,000 | (g),(h) | Truist Financial Corp | 5.100 | N/A | 153,044 | |||||||||||||
| 120,000 | (h) | Webster Financial Corp | 5.784 | 09/11/35 | 119,928 | |||||||||||||
| 160,000 | Wells Fargo & Co | 5.150 | 04/23/31 | 165,153 | ||||||||||||||
| 950,000 | (g),(h) | Wells Fargo & Co | 7.625 | N/A | 1,013,277 | |||||||||||||
| 308,000 | (g),(h) | Wells Fargo & Co | 3.900 | N/A | 307,042 | |||||||||||||
| 110,000 | Wells Fargo & Co | 5.605 | 04/23/36 | 115,292 | ||||||||||||||
| 497,000 | (g),(h) | Wells Fargo & Co | 6.850 | N/A | 519,372 | |||||||||||||
| |
|
|||||||||||||||||
| TOTAL BANKS | 13,219,884 | |||||||||||||||||
| |
||||||||||||||||||
CAPITAL GOODS. - 0.9% |
||||||||||||||||||
| 220,000 | (a) | AECOM | 6.000 | 08/01/33 | 225,469 | |||||||||||||
| 93,000 | (g),(h) | Air Lease Corp | 4.125 | N/A | 90,785 | |||||||||||||
| 241,000 | (g),(h) | Air Lease Corp | 6.000 | N/A | 229,872 | |||||||||||||
| 300,000 | (a) | Alta Equipment Group Inc | 9.000 | 06/01/29 | 270,929 | |||||||||||||
| 255,000 | Boeing Co/The | 5.805 | 05/01/50 | 250,817 | ||||||||||||||
| 175,000 | Boeing Co/The | 6.528 | 05/01/34 | 193,613 | ||||||||||||||
| 150,000 | (a) | Camelot Return Merger Sub Inc | 8.750 | 08/01/28 | 116,234 | |||||||||||||
| 100,000 | (a) | Carpenter Technology Corp | 5.625 | 03/01/34 | 101,573 | |||||||||||||
| 75,000 | (a) | Gates Corp/DE | 6.875 | 07/01/29 | 77,886 | |||||||||||||
| 195,000 | (a) | Herc Holdings Inc | 6.625 | 06/15/29 | 202,429 | |||||||||||||
| 315,000 | (a) | Herc Holdings Inc | 7.000 | 06/15/30 | 331,515 | |||||||||||||
| 75,000 | (a) | Herc Holdings Inc | 5.750 | 03/15/31 | 76,113 | |||||||||||||
| 95,000 | (a) | Herc Holdings Inc | 6.000 | 03/15/34 | 96,266 | |||||||||||||
| 45,000 | Honeywell International Inc | 5.250 | 03/01/54 | 42,529 | ||||||||||||||
| 180,000 | (a) | Masterbrand Inc | 7.000 | 07/15/32 | 186,485 | |||||||||||||
| 250,000 | (a) | Quikrete Holdings Inc | 6.375 | 03/01/32 | 260,220 | |||||||||||||
| 245,000 | Regal Rexnord Corp | 6.050 | 04/15/28 | 253,443 | ||||||||||||||
| 120,000 | (a) | Standard Building Solutions Inc | 6.250 | 08/01/33 | 122,584 | |||||||||||||
| 450,000 | (a) | TransDigm Inc | 6.375 | 03/01/29 | 464,072 | |||||||||||||
| 300,000 | (a) | TransDigm Inc | 6.375 | 05/31/33 | 307,838 | |||||||||||||
| 375,000 | (a) | TransDigm Inc | 6.875 | 12/15/30 | 392,441 | |||||||||||||
| 200,000 | (a) | Windsor Holdings III LLC | 8.500 | 06/15/30 | 211,272 | |||||||||||||
| |
|
|||||||||||||||||
| TOTAL CAPITAL GOODS | 4,504,385 | |||||||||||||||||
| |
||||||||||||||||||
COMMERCIAL & PROFESSIONAL SERVICES - 0.4% |
||||||||||||||||||
| 300,000 | (a) | AMN Healthcare Inc | 6.500 | 01/15/31 | 300,056 | |||||||||||||
| 240,000 | (a) | ASGN Inc | 4.625 | 05/15/28 | 235,825 | |||||||||||||
| 75,000 | (a) | Boost Newco Borrower LLC | 7.500 | 01/15/31 | 79,714 | |||||||||||||
| 105,000 | (a) | Clean Harbors Inc | 5.750 | 10/15/33 | 107,709 | |||||||||||||
| 270,000 | (a) | Neptune Bidco US Inc | 9.290 | 04/15/29 | 270,461 | |||||||||||||
| 54,000 | (a) | Prime Security Services Borrower LLC / Prime Finance Inc | 5.750 | 04/15/26 | 54,019 | |||||||||||||
| 200,000 | (a) | Prime Security Services Borrower LLC / Prime Finance Inc | 3.375 | 08/31/27 | 196,091 | |||||||||||||
| 400,000 | (a) | RR Donnelley & Sons Co | 9.500 | 08/01/29 | 412,201 | |||||||||||||
| 110,000 | Waste Management Inc | 4.950 | 03/15/35 | 111,720 | ||||||||||||||
| |
|
|||||||||||||||||
| TOTAL COMMERCIAL & PROFESSIONAL SERVICES | 1,767,796 | |||||||||||||||||
| |
||||||||||||||||||
CONSUMER DISCRETIONARY DISTRIBUTION & RETAIL - 0.6% |
||||||||||||||||||
| 240,000 | (a) | Academy Ltd | 6.000 | 11/15/27 | 240,177 | |||||||||||||
| 225,000 | (a) | Bath & Body Works Inc | 6.625 | 10/01/30 | 230,039 | |||||||||||||
| 310,000 | Kohl’s Corp | 5.125 | 05/01/31 | 272,684 | ||||||||||||||
See Notes to Financial Statements |
29 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
30 |
See Notes to Financial Statements |
See Notes to Financial Statements |
31 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
PRINCIPAL |
DESCRIPTION |
RATE |
MATURITY |
VALUE |
||||||||||||||
| |
|
|||||||||||||||||
FINANCIAL SERVICES (continued) |
||||||||||||||||||
$150,000 |
(a) |
Azorra Finance Ltd |
7.250% |
01/15/31 |
$ |
157,175 |
||||||||||||
250,000 |
Block Inc |
6.500 |
05/15/32 |
259,965 |
||||||||||||||
200,000 |
(a) |
Burford Capital Global Finance LLC |
7.500 |
07/15/33 |
190,852 |
|||||||||||||
130,000 |
(g),(h) |
Capital One Financial Corp |
5.500 |
N/A |
130,433 |
|||||||||||||
200,000 |
(g),(h) |
Capital One Financial Corp |
3.950 |
N/A |
197,596 |
|||||||||||||
307,000 |
(g),(h) |
Charles Schwab Corp/The |
4.000 |
N/A |
305,124 |
|||||||||||||
411,748 |
(a) |
Compass Group Diversified Holdings LLC |
5.250 |
04/15/29 |
381,910 |
|||||||||||||
250,000 |
(a),(g),(h) |
Compeer Financial ACA |
7.875 |
N/A |
255,387 |
|||||||||||||
162,000 |
(g),(h) |
Corebridge Financial Inc |
6.875 |
N/A |
166,483 |
|||||||||||||
380,000 |
(a) |
Encore Capital Group Inc |
8.500 |
05/15/30 |
408,479 |
|||||||||||||
180,000 |
(a) |
Encore Capital Group Inc |
6.625 |
04/15/31 |
180,899 |
|||||||||||||
285,000 |
(a) |
FirstCash Inc |
6.875 |
03/01/32 |
296,457 |
|||||||||||||
330,000 |
(a) |
Freedom Mortgage Holdings LLC |
8.375 |
04/01/32 |
347,379 |
|||||||||||||
150,000 |
(a) |
Freedom Mortgage Holdings LLC |
7.875 |
04/01/33 |
155,334 |
|||||||||||||
150,000 |
(a) |
Freedom Mortgage Holdings LLC |
6.875 |
05/01/31 |
150,090 |
|||||||||||||
105,000 |
Global Payments Inc |
4.875 |
11/15/30 |
105,117 |
||||||||||||||
505,000 |
(g),(h) |
Goldman Sachs Group Inc/The |
6.850 |
N/A |
525,157 |
|||||||||||||
179,000 |
(g),(h) |
Goldman Sachs Group Inc/The |
5.300 |
N/A |
179,348 |
|||||||||||||
305,000 |
(g),(h) |
Goldman Sachs Group Inc/The |
6.125 |
N/A |
309,255 |
|||||||||||||
543,000 |
(g),(h) |
Goldman Sachs Group Inc/The |
7.500 |
N/A |
574,796 |
|||||||||||||
294,000 |
(g),(h) |
Goldman Sachs Group Inc/The |
7.379 |
N/A |
294,516 |
|||||||||||||
338,000 |
(g),(h) |
Goldman Sachs Group Inc/The |
7.500 |
N/A |
359,865 |
|||||||||||||
300,000 |
(a) |
Hunt Cos Inc |
5.250 |
04/15/29 |
292,848 |
|||||||||||||
300,000 |
(a) |
Icahn Enterprises LP / Icahn Enterprises Finance Corp |
10.000 |
11/15/29 |
299,788 |
|||||||||||||
500,000 |
Icahn Enterprises LP / Icahn Enterprises Finance Corp |
5.250 |
05/15/27 |
493,128 |
||||||||||||||
400,000 |
(a) |
Jane Street Group / JSG Finance Inc |
6.125 |
11/01/32 |
407,024 |
|||||||||||||
395,000 |
JPMorgan Chase & Co |
5.103 |
04/22/31 |
407,828 |
||||||||||||||
375,000 |
JPMorgan Chase & Co |
5.572 |
04/22/36 |
393,435 |
||||||||||||||
365,000 |
Morgan Stanley |
5.664 |
04/17/36 |
383,128 |
||||||||||||||
600,000 |
Navient Corp |
5.500 |
03/15/29 |
595,594 |
||||||||||||||
125,000 |
OneMain Finance Corp |
6.750 |
09/15/33 |
126,579 |
||||||||||||||
115,000 |
OneMain Finance Corp |
6.125 |
05/15/30 |
117,253 |
||||||||||||||
690,000 |
OneMain Finance Corp |
6.625 |
05/15/29 |
714,662 |
||||||||||||||
140,000 |
(a) |
Osaic Holdings Inc |
6.750 |
08/01/32 |
146,247 |
|||||||||||||
180,000 |
(a) |
PennyMac Financial Services Inc |
7.875 |
12/15/29 |
191,529 |
|||||||||||||
300,000 |
(a) |
PennyMac Financial Services Inc |
7.125 |
11/15/30 |
315,369 |
|||||||||||||
175,000 |
(a) |
Rocket Cos Inc |
6.125 |
08/01/30 |
180,894 |
|||||||||||||
60,000 |
(a) |
Starwood Property Trust Inc |
6.500 |
07/01/30 |
62,586 |
|||||||||||||
375,000 |
(a) |
Starwood Property Trust Inc |
6.000 |
04/15/30 |
384,901 |
|||||||||||||
177,000 |
(g),(h) |
State Street Corp |
6.700 |
N/A |
184,669 |
|||||||||||||
170,000 |
(a) |
UWM Holdings LLC |
6.625 |
02/01/30 |
172,138 |
|||||||||||||
229,000 |
(g),(h) |
Voya Financial Inc |
7.758 |
N/A |
241,530 |
|||||||||||||
240,000 |
(a) |
WEX Inc |
6.500 |
03/15/33 |
245,679 |
|||||||||||||
90,000 |
(a) |
Wynnton Funding Trust II |
5.991 |
08/15/55 |
90,549 |
|||||||||||||
| |
|
|||||||||||||||||
TOTAL FINANCIAL SERVICES |
13,066,817 |
|||||||||||||||||
| |
||||||||||||||||||
FOOD, BEVERAGE & TOBACCO - 0.7% |
||||||||||||||||||
165,000 |
Constellation Brands Inc |
4.800 |
05/01/30 |
167,756 |
||||||||||||||
345,000 |
(a) |
Darling Ingredients Inc |
6.000 |
06/15/30 |
350,634 |
|||||||||||||
45,000 |
Kraft Heinz Foods Co |
5.200 |
07/15/45 |
41,266 |
||||||||||||||
145,000 |
Kraft Heinz Foods Co |
3.875 |
05/15/27 |
144,610 |
||||||||||||||
75,000 |
Kraft Heinz Foods Co |
5.500 |
06/01/50 |
70,166 |
||||||||||||||
1,000,000 |
(a),(g),(h) |
Land O’ Lakes Inc |
8.000 |
N/A |
983,791 |
|||||||||||||
110,000 |
(a) |
Mars Inc |
4.600 |
03/01/28 |
111,507 |
|||||||||||||
180,000 |
(a) |
Mars Inc |
5.200 |
03/01/35 |
185,009 |
|||||||||||||
35,000 |
(a) |
Mars Inc |
5.650 |
05/01/45 |
35,281 |
|||||||||||||
220,000 |
(a) |
Mars Inc |
5.700 |
05/01/55 |
219,148 |
|||||||||||||
300,000 |
(a) |
Post Holdings Inc |
6.375 |
03/01/33 |
303,000 |
|||||||||||||
120,000 |
(a) |
Post Holdings Inc |
6.500 |
03/15/36 |
120,162 |
|||||||||||||
300,000 |
(a) |
Primo Water Holdings Inc / Triton Water Holdings Inc |
6.250 |
04/01/29 |
301,450 |
|||||||||||||
390,000 |
(a) |
Viking Baked Goods Acquisition Corp |
8.625 |
11/01/31 |
391,253 |
|||||||||||||
| |
|
|||||||||||||||||
TOTAL FOOD, BEVERAGE & TOBACCO |
3,425,033 |
|||||||||||||||||
| |
||||||||||||||||||
32 |
See Notes to Financial Statements |
See Notes to Financial Statements |
33 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
34 |
See Notes to Financial Statements |
See Notes to Financial Statements |
35 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
36 |
See Notes to Financial Statements |
See Notes to Financial Statements |
37 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
38 |
See Notes to Financial Statements |
See Notes to Financial Statements |
39 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
40 |
See Notes to Financial Statements |
See Notes to Financial Statements |
41 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
42 |
See Notes to Financial Statements |
See Notes to Financial Statements |
43 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
PRINCIPAL |
DESCRIPTION |
RATE |
MATURITY |
VALUE |
||||||||||||||
| |
|
|||||||||||||||||
MORTGAGE-BACKED SECURITIES (continued) |
||||||||||||||||||
| $ | 1,728,007 | (k) | Fannie Mae Pool, FN MA4700, Series 2022 1 | 4.000% | 08/01/52 | $ | 1,640,925 | |||||||||||
| 692,904 | Fannie Mae Pool, FN MA4732 | 4.000 | 09/01/52 | 660,149 | ||||||||||||||
| 2,034,464 | (k) | Fannie Mae Pool, FN MA4733 | 4.500 | 09/01/52 | 1,994,209 | |||||||||||||
| 1,540,957 | (k) | Fannie Mae Pool, FN MA4737, Series 2022 1 | 5.000 | 08/01/52 | 1,543,329 | |||||||||||||
| 1,288,594 | Fannie Mae Pool, FN MA4783 | 4.000 | 10/01/52 | 1,227,880 | ||||||||||||||
| 584,724 | (k) | Fannie Mae Pool, FN MA4785 | 5.000 | 10/01/52 | 586,529 | |||||||||||||
| 913,642 | (k) | Fannie Mae Pool, FN MA4918 | 5.000 | 02/01/53 | 914,860 | |||||||||||||
| 2,397,972 | (k) | Fannie Mae Pool, FN MA5165 | 5.500 | 10/01/53 | 2,438,013 | |||||||||||||
| 655,867 | Fannie Mae Pool, FN MA4942 | 6.000 | 03/01/53 | 675,946 | ||||||||||||||
| 908,748 | (k) | Fannie Mae Pool, FN MA4978 | 5.000 | 04/01/53 | 909,866 | |||||||||||||
| 736,525 | (k) | Fannie Mae Pool, FN MA5039 | 5.500 | 06/01/53 | 749,333 | |||||||||||||
| 266,025 | Fannie Mae Pool, FN MA5106 | 5.000 | 08/01/53 | 266,147 | ||||||||||||||
| 108,518 | Fannie Mae Pool, FN MA5107 | 5.500 | 08/01/53 | 110,355 | ||||||||||||||
| 2,369,944 | (k) | Fannie Mae Pool, FN MA4655 | 4.000 | 07/01/52 | 2,261,766 | |||||||||||||
| 1,783,466 | (k) | Fannie Mae Pool, FN MA5353 | 5.500 | 05/01/54 | 1,809,802 | |||||||||||||
| 1,173,607 | (k) | Fannie Mae Pool, FN MA5497 | 5.500 | 10/01/54 | 1,190,518 | |||||||||||||
| 360,076 | Fannie Mae Pool, FN MA4919 | 5.500 | 02/01/53 | 365,423 | ||||||||||||||
| 783,356 | (k) | Fannie Mae Pool, FN MA4644, Series 2022 1 | 4.000 | 05/01/52 | 746,664 | |||||||||||||
| 202,021 | Fannie Mae Pool, FN MA5247 | 6.000 | 01/01/54 | 207,722 | ||||||||||||||
| 768,936 | Fannie Mae Pool, FN MA4600, Series 2022 2 | 3.500 | 05/01/52 | 712,625 | ||||||||||||||
| 237,762 | Fannie Mae Pool, FN MA4578 | 2.500 | 04/01/52 | 202,142 | ||||||||||||||
| 438,224 | (k) | Fannie Mae Pool, FN FS7299 | 3.000 | 05/01/52 | 392,499 | |||||||||||||
| 1,486,589 | (k) | Fannie Mae Pool, FN FS1535 | 3.000 | 04/01/52 | 1,330,704 | |||||||||||||
| 1,110,836 | (k) | Fannie Mae Pool, FN FS1533 | 3.000 | 04/01/52 | 995,111 | |||||||||||||
| 750,059 | Fannie Mae Pool, FN FS0522 | 2.500 | 02/01/52 | 642,842 | ||||||||||||||
| 1,192,842 | (k) | Fannie Mae Pool, FN CB3905 | 3.500 | 06/01/52 | 1,105,811 | |||||||||||||
| 165,197 | Fannie Mae Pool, FN CB2795 | 3.000 | 02/01/52 | 146,430 | ||||||||||||||
| 1,305,503 | (k) | Fannie Mae Pool, FN CB1301 | 2.500 | 08/01/51 | 1,124,991 | |||||||||||||
| 427,802 | (k) | Fannie Mae Pool, FN BW3383 | 4.500 | 07/01/52 | 419,204 | |||||||||||||
| 4,291,819 | (k) | Fannie Mae Pool, FN BW3382 | 4.500 | 07/01/52 | 4,209,116 | |||||||||||||
| 1,236,635 | (k) | Fannie Mae Pool, FN MA4626 | 4.000 | 06/01/52 | 1,180,189 | |||||||||||||
| 91,368 | (a),(i) | Flagstar Mortgage Trust 2021-10INV, Series 2021 10IN | 3.498 | 10/25/51 | 76,338 | |||||||||||||
| 28,524 | Freddie Mac Gold Pool, FG U99084 | 4.500 | 02/01/44 | 28,523 | ||||||||||||||
| 50,778 | Freddie Mac Pool, FR SD4999 | 5.000 | 08/01/53 | 50,841 | ||||||||||||||
| 177,822 | Freddie Mac Pool, FR SD8329 | 5.000 | 06/01/53 | 177,995 | ||||||||||||||
| 719,516 | (k) | Freddie Mac Pool, FR SD8288 | 5.000 | 01/01/53 | 720,512 | |||||||||||||
| 1,276,618 | (k) | Freddie Mac Pool, FR RA6766 | 2.500 | 02/01/52 | 1,097,300 | |||||||||||||
| 1,478,730 | (k) | Freddie Mac Pool, FR RA9629 | 5.500 | 08/01/53 | 1,504,218 | |||||||||||||
| 818,658 | (k) | Freddie Mac Pool, FR QE5382 | 4.500 | 07/01/52 | 802,798 | |||||||||||||
| 1,258,446 | Freddie Mac REMICS, Series 2021 5160 | 3.000 | 09/25/50 | 932,423 | ||||||||||||||
| 500,000 | (a),(i) | Freddie Mac STACR REMIC Trust, Series 2022 DNA6, (SOFR30A + 5.750%) | 9.624 | 09/25/42 | 539,065 | |||||||||||||
| 285,000 | (a),(i) | Freddie Mac STACR REMIC Trust, Series 2023 DNA1, (SOFR30A + 3.100%) | 8.444 | 03/25/43 | 295,621 | |||||||||||||
| 80,000 | (a),(i) | Freddie Mac STACR REMIC Trust, Series 2022 DNA4, (SOFR30A + 3.350%) | 7.224 | 05/25/42 | 82,593 | |||||||||||||
| 1,056,349 | Ginnie Mae II Pool, G2 MA8149 | 3.500 | 07/20/52 | 971,343 | ||||||||||||||
| 270,113 | (k) | Ginnie Mae II Pool, G2 MA7419, Series 2021 MTGE | 3.000 | 06/20/51 | 243,021 | |||||||||||||
| 344,224 | (k) | Ginnie Mae II Pool, G2 MA7768, Series 2021 1 | 3.000 | 12/20/51 | 309,698 | |||||||||||||
| 427,601 | (k) | Ginnie Mae II Pool, G2 MA7871, Series 2022 1 | 2.500 | 02/20/52 | 360,571 | |||||||||||||
| 616,220 | Ginnie Mae II Pool, G2 MA8200 | 4.000 | 08/20/52 | 586,189 | ||||||||||||||
| 587,117 | (k) | Ginnie Mae II Pool, G2 MA8428 | 5.000 | 11/20/52 | 588,074 | |||||||||||||
| 260,558 | Ginnie Mae II Pool, G2 MA8724 | 4.500 | 03/20/53 | 255,424 | ||||||||||||||
| 249,815 | Government National Mortgage Association, Series 2021 209 | 3.000 | 11/20/51 | 184,595 | ||||||||||||||
| 269,354 | Government National Mortgage Association, Series 2022 124 | 4.000 | 07/20/52 | 230,300 | ||||||||||||||
| 428,966 | Government National Mortgage Association, Series 2023 111 | 3.000 | 02/20/52 | 301,477 | ||||||||||||||
| 484,195 | Government National Mortgage Association, Series 2022 174 | 4.500 | 09/20/52 | 453,489 | ||||||||||||||
| 710,914 | Government National Mortgage Association, Series 2013 188 | 2.500 | 12/20/43 | 642,129 | ||||||||||||||
| 250,000 | GS Mortgage Securities Trust, Series 2019 GC42 | 3.001 | 09/10/52 | 236,025 | ||||||||||||||
| 751,590 | (a),(i) | GS Mortgage-Backed Securities Corp Trust, Series 2022 PJ2 | 3.000 | 06/25/52 | 652,066 | |||||||||||||
| 445,625 | (a),(i) | GS Mortgage-Backed Securities Trust, Series 2022 INV1 | 3.000 | 07/25/52 | 387,612 | |||||||||||||
| 230,221 | (a),(i) | GS Mortgage-Backed Securities Trust, Series 2023 PJ1 | 3.500 | 02/25/53 | 207,812 | |||||||||||||
44 |
See Notes to Financial Statements |
See Notes to Financial Statements |
45 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
46 |
See Notes to Financial Statements |
See Notes to Financial Statements |
47 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
PRINCIPAL |
DESCRIPTION |
RATE |
MATURITY |
VALUE |
||||||||||||||
| |
|
|||||||||||||||||
CAPITAL GOODS (continued) |
||||||||||||||||||
| $ | 93,341 | (i) | Oregon Tool, Inc., 2nd Lien Term Loan, (TSFR3M + 4.000%) | 8.140% | 10/15/29 | $ | 67,392 | |||||||||||
| 48,000 | (i) | Oregon Tool, Inc., First Lien Term Loan, (TSFR3M + 5.350%) | 9.228 | 10/15/29 | 49,005 | |||||||||||||
| 10,484 | (i),(m) | Pinnacle Buyer LLC, Delayed Draw Term Loan | 1.250 | 10/01/32 | 10,536 | |||||||||||||
| 54,380 | (i) | Pinnacle Buyer LLC, Term Loan, (CME Term SOFR 1 Month + 2.500%) | 6.485 | 10/01/32 | 54,652 | |||||||||||||
| 160,785 | (i) | Quikrete Holdings, Inc., Term Loan B, (TSFR1M + 2.250%) | 5.966 | 01/31/32 | 161,463 | |||||||||||||
| 37,490 | (i) | Quikrete Holdings, Inc., Term Loan B1, (TSFR1M + 2.250%) | 5.966 | 04/14/31 | 37,641 | |||||||||||||
| 68,000 | (i) | QXO Inc, Term Loan B, (TSFR1M + 2.000%) | 5.716 | 04/30/32 | 68,321 | |||||||||||||
| 104,738 | (i) | Resideo Funding Inc., Incremental Term Loan, (TSFR3M + 2.000%) | 5.723 | 08/13/32 | 105,130 | |||||||||||||
| 514,270 | (i) | TK Elevator Midco GmbH, Term Loan B, (TSFR6M + 2.750%) | 6.947 | 04/30/30 | 518,053 | |||||||||||||
| 154,050 | (i) | TransDigm, Inc., Term Loan, (TSFR1M + 2.500%) | 6.216 | 01/20/32 | 154,841 | |||||||||||||
| 284,961 | (i) | TransDigm, Inc., Term Loan J, (TSFR1M + 2.500%) | 6.216 | 02/28/31 | 286,353 | |||||||||||||
| 174,563 | (i) | TransDigm, Inc., Term Loan M, (TSFR1M + 2.500%) | 6.216 | 08/19/32 | 175,487 | |||||||||||||
| 263,877 | (i) | Victory Buyer LLC, Term Loan, (TSFR1M + 3.750%) | 7.581 | 11/20/28 | 265,608 | |||||||||||||
| |
|
|||||||||||||||||
| TOTAL CAPITAL GOODS | 4,510,173 | |||||||||||||||||
| |
||||||||||||||||||
COMMERCIAL & PROFESSIONAL SERVICES - 0.8% |
||||||||||||||||||
| 279,300 | (i) | Allied Universal Holdco LLC, Term Loan B, (TSFR1M + 3.250%) | 6.966 | 08/20/32 | 281,089 | |||||||||||||
| 68,335 | (i) | Amentum Government Services Holdings LLC, Term Loan B, (TSFR1M + 2.000%) | 5.716 | 09/29/31 | 68,613 | |||||||||||||
| 275,923 | (i) | Anticimex International AB, Term Loan, (TSFR3M + 2.900%) | 7.310 | 11/21/31 | 277,647 | |||||||||||||
| 10,345 | (i),(m) | Archkey Solutions LLC, Delayed Draw Term Loan B | 4.250 | 11/03/31 | 10,474 | |||||||||||||
| 88,984 | (i) | Archkey Solutions LLC, Term Loan B, (TSFR3M + 4.250%) | 7.922 | 11/03/31 | 90,097 | |||||||||||||
| 196,505 | (i) | CoreLogic, Inc., Term Loan, (TSFR1M + 3.500%) | 7.331 | 06/02/28 | 196,951 | |||||||||||||
| 122,235 | (i) | Creative Artists Agency, LLC , Repriced Term Loan B, (TSFR1M + 2.500%) | 6.216 | 10/01/31 | 122,846 | |||||||||||||
| 155,930 | (i) | Ensemble RCM, LLC, Term Loan B, (TSFR3M + 3.000%) | 6.840 | 08/01/29 | 156,877 | |||||||||||||
| 291,963 | (i) | Garda World Security Corporation, Term Loan B, (TSFR1M + 3.000%) | 6.750 | 02/01/29 | 293,569 | |||||||||||||
| 94,763 | (i) | GFL Environmental Inc., Term Loan B, (TSFR3M + 2.500%) | 6.273 | 03/03/32 | 95,284 | |||||||||||||
| 133,656 | (i) | Medical Solutions Holdings Inc, Term Loan, (CME Term SOFR 3 Month + 3.500%) | 7.440 | 11/01/28 | 96,232 | |||||||||||||
| 67,824 | (i) | OMNIA Partners LLC, Term Loan B, (TSFR3M + 2.750%) | 6.455 | 07/25/30 | 68,175 | |||||||||||||
| 61,000 | (i) | Openlane Inc, Term Loan B, (TSFR3M + 2.500%) | 6.365 | 10/08/32 | 61,153 | |||||||||||||
| 44,505 | (i) | PG Investment Company 59 S.a r.l., Repriced Term Loan B, (TSFR3M + 2.250%) | 5.922 | 03/26/31 | 44,710 | |||||||||||||
| 48,784 | (i) | Prime Security Services Borrower, LLC, First Lien Term Loan B, (TSFR6M + 2.000%) | 6.129 | 10/15/30 | 48,916 | |||||||||||||
| 324,183 | (i) | Prime Security Services Borrower, LLC, Incremental Term Loan B, (TSFR1M + 1.750%) | 5.585 | 03/08/32 | 323,757 | |||||||||||||
| 17,160 | (i),(m) | Pye-Barker Fire & Safety, LLC, Delayed Draw Term Loan | 1.250 | 12/16/32 | 17,287 | |||||||||||||
| 114,840 | (i) | Pye-Barker Fire & Safety, LLC, Term Loan, (TSFR3M + 2.500%) | 6.205 | 12/16/32 | 115,689 | |||||||||||||
| 19,570 | (i) | Reworld Holding Corp, First Lien Term Loan C, (TSFR1M + 2.250%) | 5.984 | 01/15/31 | 19,611 | |||||||||||||
| 81,047 | (i) | Reworld Holding Corp, Term Loan B, (TSFR1M + 2.250%) | 5.984 | 11/30/28 | 81,279 | |||||||||||||
| 120,430 | (i) | Reworld Holding Corp, Term Loan B1, (TSFR1M + 2.250%) | 5.984 | 01/15/31 | 120,681 | |||||||||||||
| 30,035 | (i) | Signal Parent, Inc, Term Loan B, (TSFR3M + 3.500%) | 7.440 | 04/03/28 | 21,675 | |||||||||||||
| 353,000 | (i),(n) | United States, Term Loan, (TBD) | TBD | TBD | 352,371 | |||||||||||||
| 140,474 | (i) | West Corporation, Term Loan B3, (TSFR3M + 4.000%) | 8.090 | 04/12/27 | 45,391 | |||||||||||||
| 570,693 | (i) | WIN Waste Innovations Holdings, Inc., Term Loan B, (TSFR1M + 2.750%) | 6.581 | 03/27/28 | 572,953 | |||||||||||||
| 118,503 | (i) | XPLOR T1 LLC, Term Loan, (TSFR3M + 3.500%) | 7.292 | 12/01/32 | 118,799 | |||||||||||||
| |
|
|||||||||||||||||
| TOTAL COMMERCIAL & PROFESSIONAL SERVICES | 3,702,126 | |||||||||||||||||
| |
||||||||||||||||||
CONSUMER DISCRETIONARY DISTRIBUTION & RETAIL - 0.4% |
||||||||||||||||||
| 118,505 | (i) | Belron Finance LLC, Repriced Term Loan B, (TSFR3M + 2.250%) | 6.120 | 10/16/31 | 119,319 | |||||||||||||
| 249,237 | (i) | CNT Holdings I Corp, Term Loan, (TSFR3M + 2.250%) | 6.090 | 11/08/32 | 250,107 | |||||||||||||
| 44,444 | (i) | Gulfside Supply Inc, Term Loan B, (TSFR3M + 3.000%) | 6.672 | 06/17/31 | 43,917 | |||||||||||||
| 241,936 | (i) | Johnstone Supply LLC, Term Loan B, (TSFR1M + 2.500%) | 6.230 | 06/09/31 | 243,582 | |||||||||||||
| 65,694 | (i),(o) | LBM Acquisition LLC, Incremental Term Loan B, (TSFR1M + 3.750%) | 7.584 | 06/06/31 | 61,800 | |||||||||||||
| 151,118 | (i) | Les Schwab Tire Centers, Term Loan B, (TSFR1M + TSFR3M + 2.500%) | 6.269 | 04/23/31 | 151,508 | |||||||||||||
48 |
See Notes to Financial Statements |
See Notes to Financial Statements |
49 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
50 |
See Notes to Financial Statements |
See Notes to Financial Statements |
51 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
52 |
See Notes to Financial Statements |
See Notes to Financial Statements |
53 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
54 |
See Notes to Financial Statements |
All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.
| ADR | American Depositary Receipt |
| BRL | Brazilian Real |
| CLP | Chilean Peso |
| COP | Colombian Peso |
| CZK | Czech Koruna |
| ETF | Exchange-Traded Fund |
| EUR | Euro |
| GDR | Global Depositary Receipt |
| HUF | Hungarian Forint |
| IDR | Indonesian Rupiah |
| INR | Indian Rupee |
| KZT | Kazakhstani Tenge |
| MSCI | Morgan Stanley Capital International |
| MXN | Mexican Peso |
| MYR | Malaysian Ringgit |
| PEN | Peruvian Sol |
| PIK | Payment-in-kind (“PIK”) security. Depending on the terms of the security, income may be received in the form of cash, securities, or a combination of both. The PIK rate shown, where applicable, represents the annualized rate of the last PIK payment made by the issuer as of the end of the reporting period. |
| PLN | Polish Zloty |
| Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
| REIT | Real Estate Investment Trust |
| RON | Romanian Leu |
| S&P | Standard & Poor’s |
| SOFR30A | 30 Day Average Secured Overnight Financing Rate |
| SOFR90A | 90 Day Average Secured Overnight Financing Rate |
| TBD | Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date. |
| TRY | Turkish Lira |
| TSFR1M | CME Term Secured Overnight Financing Rate 1 Month |
| TSFR3M | CME Term Secured Overnight Financing Rate 3 Month |
See Notes to Financial Statements |
55 |
Portfolio of Investments December 31, 2025
(continued)
NMAI
| TSFR6M | CME Term Secured Overnight Financing Rate 6 Month |
| UGX | Ugandan Shilling |
| UYU | Uruguayan Peso |
| ZAR | South African Rand |
| (a) | Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities are deemed liquid and may be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. As of the end of the fiscal period, the aggregate value of these securities is $114,263,539 or 16.6% of Total Investments. |
| (b) | For fair value measurement disclosure purposes, investment classified as Level 3. |
| (c) | Investment, or portion of investment, is hypothecated. The total value of investments hypothecated as of the end of the fiscal period was $153,946,639. |
| (d) | Non-income producing; issuer has not declared an ex-dividend date within the past twelve months. |
| (e) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives. |
| (f) | Contains $1,000 Par Preferred and/or Contingent Capital Securities. |
| (g) | Perpetual security. Maturity date is not applicable. |
| (h) | $1,000 Par Institutional Preferred security. As of the end of the period, the percent of $1,000 Par Institutional Preferred securities was 3.8% of Total Investments. |
| (i) | Floating or variable rate security includes the reference rate and spread, when applicable. For mortgage-backed or asset-backed securities the variable rate is based on the underlying asset of the security. Coupon rate reflects the rate at period end. |
| (j) | Contingent Capital Securities (“CoCos”) are debt or preferred securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer, for example an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level. As of the end of the reporting period, the Fund’s total investment in CoCos was 3.1% of Total Investments. |
| (k) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in reverse repurchase agreements. As of the end of the fiscal period, investments with a value of $37,802,647 have been pledged as collateral for reverse repurchase agreements. |
| (l) | Principal amount for interest accrual purposes is periodically adjusted based on changes in the Consumer Price Index. |
| (m) | Investment, or portion of investment, represents an outstanding unfunded senior loan commitment. |
| (n) | When-issued or delayed delivery security. |
| (o) | Portion of investment purchased on a delayed delivery basis. |
| (p) | Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
| (q) | Agreement with Fixed Income Clearing Corporation, 3.780% dated 12/31/25 to be repurchased at $10,302,163 on 1/2/26, collateralized by Government Agency Securities, with coupon rate 3.625% and maturity date 10/31/30, valued at $10,506,122. |
| (r) | Borrowings as a percentage of Total Investments is 25.4%. |
| (s) | 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 $327,912,626 have been pledged as collateral for borrowings. |
| (t) | Reverse Repurchase Agreements, including accrued interest as a percentage of Total investments is 5.1%. |
Principal denominated in U.S. Dollars, unless otherwise noted.
Investments in Derivatives
Forward Foreign Currency Contracts
Currency Purchased |
Notional Amount (Local Currency) |
Currency Sold |
Notional Amount (Local Currency) |
Counterparty |
Settlement Date |
Unrealized Appreciation (Depreciation) |
||||||||||||
| $ |
882,331 |
EUR |
752,159 |
Citibank N.A. |
1/08/26 |
$(1,732) |
||||||||||||
| Total |
$(1,732) |
|||||||||||||||||
| Total unrealized appreciation on forward foreign currency contracts |
$- |
|||||||||||||||||
| Total unrealized depreciation on forward foreign currency contracts |
$(1,732) |
|||||||||||||||||
56 |
See Notes to Financial Statements |
Portfolio of Investments December 31, 2025
JRI
See Notes to Financial Statements |
57 |
Portfolio of Investments December 31, 2025
(continued)
JRI
58 |
See Notes to Financial Statements |
SHARES |
DESCRIPTION |
VALUE |
||||||||||||||||
| |
|
|||||||||||||||||
UTILITIES - 15.4% |
||||||||||||||||||
| 3,270 | American Electric Power Co Inc | $ | 377,064 | |||||||||||||||
| 54,283 | Capital Power Corp | 2,315,595 | ||||||||||||||||
| 115,027 | CK Infrastructure Holdings Ltd | 852,376 | ||||||||||||||||
| 121,948 | Clearway Energy Inc, Class A | 3,831,606 | ||||||||||||||||
| 61,548 | Dominion Energy Inc | 3,606,097 | ||||||||||||||||
| 6,320 | DTE Energy Co | 815,154 | ||||||||||||||||
| 6,166 | Duke Energy Corp | 722,717 | ||||||||||||||||
| 140,327 | E.ON SE | 2,657,080 | ||||||||||||||||
| 582,949 | Enel SpA | 6,061,115 | ||||||||||||||||
| 75,871 | Engie SA | 1,993,081 | ||||||||||||||||
| 8,139 | Entergy Corp | 752,288 | ||||||||||||||||
| 73,315 | Evergy Inc | 5,314,604 | ||||||||||||||||
| 53,589 | Exelon Corp | 2,335,944 | ||||||||||||||||
| 49,032 | Iberdrola SA | 1,061,709 | ||||||||||||||||
| 23,776 | Italgas SpA | 265,188 | ||||||||||||||||
| 381,892 | National Grid PLC | 5,857,642 | ||||||||||||||||
| 47,892 | National Grid PLC, Sponsored ADR | 3,704,446 | ||||||||||||||||
| 7,737 | Northwestern Energy Group Inc | 499,346 | ||||||||||||||||
| 56,147 | OGE Energy Corp | 2,397,477 | ||||||||||||||||
| 342,080 | Pennon Group PLC | 2,424,497 | ||||||||||||||||
| 66,760 | Redeia Corp SA | 1,190,115 | ||||||||||||||||
| 20,720 | Severn Trent PLC | 778,058 | ||||||||||||||||
| 283,618 | Snam SpA | 1,884,605 | ||||||||||||||||
| 37,435 | Terna - Rete Elettrica Nazionale | 398,260 | ||||||||||||||||
| 32,582 | United Utilities Group PLC | 523,476 | ||||||||||||||||
| 35,917 | Veolia Environnement SA | 1,249,821 | ||||||||||||||||
| 19,041 | WEC Energy Group Inc | 2,008,064 | ||||||||||||||||
| 8,309 | Xcel Energy Inc | 613,703 | ||||||||||||||||
| |
|
|||||||||||||||||
| TOTAL UTILITIES | 56,491,128 | |||||||||||||||||
| |
||||||||||||||||||
TOTAL COMMON STOCKS (Cost $228,889,553) |
258,866,246 |
|||||||||||||||||
| |
||||||||||||||||||
See Notes to Financial Statements |
59 |
Portfolio of Investments December 31, 2025
(continued)
JRI
60 |
See Notes to Financial Statements |
PRINCIPAL |
DESCRIPTION |
RATE |
MATURITY |
VALUE |
||||||||||||||
| |
|
|||||||||||||||||
ENERGY (continued) |
||||||||||||||||||
| $350,000 | (a) | Rockies Express Pipeline LLC | 4.800% | 05/15/30 | $ | 344,203 | ||||||||||||
| 378,000 | (e) | South Bow Canadian Infrastructure Holdings Ltd | 7.500 | 03/01/55 | 404,033 | |||||||||||||
| 654,000 | (e) | South Bow Canadian Infrastructure Holdings Ltd | 7.625 | 03/01/55 | 681,711 | |||||||||||||
| 840,000 | South Bow USA Infrastructure Holdings LLC | 5.584 | 10/01/34 | 848,318 | ||||||||||||||
| 950,000 | (a),(d),(e) | Sunoco LP | 7.875 | N/A | 975,911 | |||||||||||||
| 1,175,000 | (a) | Sunoco LP | 6.250 | 07/01/33 | 1,203,573 | |||||||||||||
| 675,000 | (a) | Sunoco LP | 7.250 | 05/01/32 | 713,702 | |||||||||||||
| 450,000 | (a) | Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp | 6.000 | 09/01/31 | 447,896 | |||||||||||||
| 330,000 | Targa Resources Corp | 6.150 | 03/01/29 | 347,396 | ||||||||||||||
| 840,000 | Targa Resources Corp | 6.125 | 03/15/33 | 898,529 | ||||||||||||||
| 1,386,000 | (e) | TransCanada PipeLines Ltd | 7.590 | 05/15/67 | 1,225,999 | |||||||||||||
| 1,151,000 | (e) | Transcanada Trust | 5.600 | 03/07/82 | 1,136,813 | |||||||||||||
| 1,038,000 | (e) | Transcanada Trust | 5.500 | 09/15/79 | 1,030,194 | |||||||||||||
| 286,000 | (e) | Transcanada Trust | 5.300 | 03/15/77 | 285,978 | |||||||||||||
| 1,130,000 | (e) | Transcanada Trust | 5.875 | 08/15/76 | 1,131,383 | |||||||||||||
| 555,000 | (a) | TransMontaigne Partners LLC | 8.500 | 06/15/30 | 560,320 | |||||||||||||
| 260,000 | (a) | Transocean International Ltd | 7.875 | 10/15/32 | 271,544 | |||||||||||||
| 546,429 | (a) | Transocean Titan Financing Ltd | 8.375 | 02/01/28 | 558,058 | |||||||||||||
| 720,000 | (a) | USA Compression Partners LP / USA Compression Finance Corp | 7.125 | 03/15/29 | 745,280 | |||||||||||||
| 3,723,000 | (a),(d),(e) | Venture Global LNG Inc | 9.000 | N/A | 2,940,167 | |||||||||||||
| 450,000 | (a) | Venture Global LNG Inc | 9.875 | 02/01/32 | 464,883 | |||||||||||||
| 450,000 | (a) | Venture Global Plaquemines LNG LLC | 6.500 | 01/15/34 | 460,908 | |||||||||||||
| |
|
|||||||||||||||||
| TOTAL ENERGY | 48,601,925 | |||||||||||||||||
| |
||||||||||||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) - 5.4% |
||||||||||||||||||
| 1,170,000 | Agree LP | 4.800 | 10/01/32 | 1,177,258 | ||||||||||||||
| 735,000 | American Assets Trust LP | 6.150 | 10/01/34 | 745,571 | ||||||||||||||
| 1,000,000 | American Homes 4 Rent LP | 5.500 | 02/01/34 | 1,032,594 | ||||||||||||||
| 900,000 | (a) | Diversified Healthcare Trust | 7.250 | 10/15/30 | 920,239 | |||||||||||||
| 1,080,000 | Essex Portfolio LP | 5.500 | 04/01/34 | 1,118,626 | ||||||||||||||
| 730,000 | Extra Space Storage LP | 5.700 | 04/01/28 | 754,210 | ||||||||||||||
| 820,000 | Federal Realty OP LP | 5.375 | 05/01/28 | 840,469 | ||||||||||||||
| 480,000 | GLP Capital LP / GLP Financing II Inc | 6.750 | 12/01/33 | 521,700 | ||||||||||||||
| 575,000 | Highwoods Realty LP | 5.350 | 01/15/33 | 574,569 | ||||||||||||||
| 1,540,000 | (a) | Iron Mountain Inc | 6.250 | 01/15/33 | 1,552,885 | |||||||||||||
| 750,000 | Kite Realty Group LP | 5.500 | 03/01/34 | 774,041 | ||||||||||||||
| 823,000 | Kite Realty Group LP | 4.000 | 10/01/26 | 821,620 | ||||||||||||||
| 585,000 | (a) | Lineage OP LP | 5.250 | 07/15/30 | 590,170 | |||||||||||||
| 575,000 | Mid-America Apartments LP | 5.300 | 02/15/32 | 600,221 | ||||||||||||||
| 750,000 | (a) | Millrose Properties Inc | 6.375 | 08/01/30 | 767,418 | |||||||||||||
| 450,000 | (a) | Millrose Properties Inc | 6.250 | 09/15/32 | 454,043 | |||||||||||||
| 1,255,000 | (a) | MPT Operating Partnership LP / MPT Finance Corp | 8.500 | 02/15/32 | 1,340,256 | |||||||||||||
| 420,000 | National Health Investors Inc | 5.350 | 02/01/33 | 419,415 | ||||||||||||||
| 1,215,000 | Piedmont Operating Partnership LP | 9.250 | 07/20/28 | 1,342,488 | ||||||||||||||
| 1,665,000 | (a) | RHP Hotel Properties LP / RHP Finance Corp | 6.500 | 04/01/32 | 1,726,747 | |||||||||||||
| 385,000 | (a) | RHP Hotel Properties LP / RHP Finance Corp | 6.500 | 06/15/33 | 400,222 | |||||||||||||
| 380,000 | (a) | Uniti Group LP / Uniti Group Finance 2019 Inc / CSL Capital LLC | 6.500 | 02/15/29 | 364,920 | |||||||||||||
| 995,000 | Ventas Realty LP | 5.000 | 01/15/35 | 996,219 | ||||||||||||||
| |
|
|||||||||||||||||
| TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 19,835,901 | |||||||||||||||||
| |
||||||||||||||||||
FINANCIAL SERVICES - 1.4% |
||||||||||||||||||
| 500,000 | (a) | Azorra Finance Ltd | 7.750 | 04/15/30 | 527,959 | |||||||||||||
| 225,000 | (a) | Azorra Finance Ltd | 7.250 | 01/15/31 | 235,762 | |||||||||||||
| 350,000 | (a) | Freedom Mortgage Holdings LLC | 8.375 | 04/01/32 | 368,433 | |||||||||||||
| 250,000 | (a) | Freedom Mortgage Holdings LLC | 7.875 | 04/01/33 | 258,891 | |||||||||||||
| 524,000 | (e) | HA Sustainable Infrastructure Capital Inc | 8.000 | 06/01/56 | 547,611 | |||||||||||||
| 1,150,000 | (a) | Hunt Cos Inc | 5.250 | 04/15/29 | 1,122,585 | |||||||||||||
| 580,000 | (e) | National Rural Utilities Cooperative Finance Corp | 7.125 | 09/15/53 | 608,349 | |||||||||||||
| 1,360,000 | (a) | Starwood Property Trust Inc | 6.000 | 04/15/30 | 1,395,907 | |||||||||||||
| |
|
|||||||||||||||||
| TOTAL FINANCIAL SERVICES | 5,065,497 | |||||||||||||||||
| |
||||||||||||||||||
See Notes to Financial Statements |
61 |
Portfolio of Investments December 31, 2025
(continued)
JRI
62 |
See Notes to Financial Statements |
See Notes to Financial Statements |
63 |
Portfolio of Investments December 31, 2025
(continued)
JRI
64 |
See Notes to Financial Statements |
See Notes to Financial Statements |
65 |
Portfolio of Investments December 31, 2025
(continued)
JRI
66 |
See Notes to Financial Statements |
All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.
| ADR | American Depositary Receipt |
| CAD | Canadian Dollar |
| EUR | Euro |
| GBP | Pound Sterling |
| PIK | Payment-in-kind (“PIK”) security. Depending on the terms of the security, income may be received in the form of cash, securities, or a combination of both. The PIK rate shown, where applicable, represents the annualized rate of the last PIK payment made by the issuer as of the end of the reporting period. |
| Reg S | Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States. |
| REIT | Real Estate Investment Trust |
| TBD | Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to settlement. At settlement, if still unknown, the borrower or counterparty will provide the Fund with the final coupon rate and maturity date. |
| TSFR1M | CME Term Secured Overnight Financing Rate 1 Month |
| TSFR3M | CME Term Secured Overnight Financing Rate 3 Month |
| TSFR6M | CME Term Secured Overnight Financing Rate 6 Month |
| (a) | Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities are deemed liquid and may be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. As of the end of the fiscal period, the aggregate value of these securities is $97,855,797 or 18.2% of Total Investments. |
| (b) | Non-income producing; issuer has not declared an ex-dividend date within the past twelve months. |
| (c) | Contains $1,000 Par Preferred and/or Contingent Capital Securities. |
| (d) | Perpetual security. Maturity date is not applicable. |
| (e) | $1,000 Par Institutional Preferred security. As of the end of the period, the percent of $1,000 Par Institutional Preferred securities was 15.2% of Total Investments. |
| (f) | Floating or variable rate security includes the reference rate and spread, when applicable. For mortgage-backed or asset-backed securities the variable rate is based on the underlying asset of the security. Coupon rate reflects the rate at period end. |
| (g) | When-issued or delayed delivery security. |
| (h) | Agreement with Fixed Income Clearing Corporation, 3.780% dated 12/31/25 to be repurchased at $9,126,916 on 1/2/26, collateralized by Government Agency Securities, with coupon rate 3.500% and maturity date 11/30/30, valued at $9,307,720. |
| (i) | Borrowings as a percentage of Total Investments is 31.8%. |
| (j) | 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 $294,830,992 have been pledged as collateral for borrowings. |
Principal denominated in U.S. Dollars, unless otherwise noted.
Investments in Derivatives
Futures Contracts - Short
Description |
Number of Contracts |
Expiration Date |
Notional Amount |
Value |
Unrealized Appreciation (Depreciation) |
|||||||||||||||
| U.S. Treasury Ultra 10-Year Note | (52 | ) | 3/26 | $ | (5,999,295 | ) | $ | (5,980,812 | ) | $ | 18,483 |
See Notes to Financial Statements |
67 |
Portfolio of Investments December 31, 2025
JRS
68 |
See Notes to Financial Statements |
See Notes to Financial Statements |
69 |
Portfolio of Investments December 31, 2025
(continued)
JRS
All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.
| REIT | Real Estate Investment Trust |
| (a) | Agreement with Fixed Income Clearing Corporation, 3.780% dated 12/31/25 to be repurchased at $6,101,281 on 1/2/26, collateralized by Government Agency Securities, with coupon rate 3.625% and maturity date 10/31/30, valued at $6,222,131. |
| (b) | Borrowings as a percentage of Total Investments is 29.8%. |
| (c) | 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 $204,342,798 have been pledged as collateral for borrowings. |
70 |
See Notes to Financial Statements |
Statement of Assets and Liabilities
December 31, 2025 |
NMAI |
JRI |
JRS |
|||||||||
ASSETS |
||||||||||||
Long-term investments, at value † |
$ |
678,724,227 |
$ |
528,450,385 |
$ |
337,489,756 |
||||||
Short-term investments, at value à |
10,300,000 |
9,125,000 |
6,100,000 |
|||||||||
Cash denominated in foreign currencies ^ |
28,534 |
889,782 |
– |
|||||||||
Cash collateral at broker for investments in futures contracts (1) |
– |
142,769 |
– |
|||||||||
Receivables: |
||||||||||||
Dividends |
222,158 |
1,183,392 |
1,496,088 |
|||||||||
Interest |
3,253,347 |
3,109,907 |
641 |
|||||||||
Investments sold |
1,856,995 |
447,478 |
– |
|||||||||
Reclaims |
626,012 |
134,218 |
– |
|||||||||
Reimbursement from Adviser |
4,234 |
81,663 |
– |
|||||||||
Variation margin on futures contracts |
– |
9,750 |
– |
|||||||||
Other |
71,191 |
23,839 |
36,682 |
|||||||||
Total assets |
695,086,698 |
543,598,183 |
345,123,167 |
|||||||||
LIABILITIES |
||||||||||||
Cash overdraft |
3,049,665 |
3,181,402 |
4,623,102 |
|||||||||
Borrowings |
174,786,000 |
170,945,000 |
102,400,000 |
|||||||||
Reverse repurchase agreements, including accrued interest |
35,122,150 |
– |
– |
|||||||||
Unrealized depreciation on forward foreign currency contracts |
1,732 |
– |
– |
|||||||||
Payables: |
||||||||||||
Management fees |
496,139 |
435,189 |
248,618 |
|||||||||
Capital gain taxes |
891 |
– |
– |
|||||||||
Interest |
604,050 |
744,703 |
434,092 |
|||||||||
Investments purchased - regular settlement |
32,608 |
750,118 |
– |
|||||||||
Investments purchased - when-issued/delayed-delivery settlement |
1,818,425 |
206,477 |
– |
|||||||||
Unfunded senior loans |
135,795 |
– |
– |
|||||||||
Accrued expenses: |
||||||||||||
Custodian fees |
413,217 |
260,343 |
47,371 |
|||||||||
Investor relations fees |
34,147 |
9,911 |
53,412 |
|||||||||
Trustees fees |
70,167 |
26,535 |
37,618 |
|||||||||
Professional fees |
3,707 |
3,828 |
4,921 |
|||||||||
Shareholder reporting expenses |
31,083 |
33,123 |
27,633 |
|||||||||
Shareholder servicing agent fees |
308 |
2,619 |
252 |
|||||||||
Other |
10,853 |
1,643 |
– |
|||||||||
Total liabilities |
216,610,937 |
176,600,891 |
107,877,019 |
|||||||||
Net assets applicable to common shares |
$ |
478,475,761 |
$ |
366,997,292 |
$ |
237,246,148 |
||||||
Common shares outstanding |
33,425,645 | 27,440,071 | 28,892,471 | |||||||||
Net asset value (“NAV”) per common share outstanding |
$ | 14.31 | $ | 13.37 | $ | 8.21 | ||||||
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: |
||||||||||||
Common shares, $0.01 par value per share |
$ |
334,256 |
$ |
274,401 |
$ |
288,925 |
||||||
Paid-in capital |
391,479,465 |
533,129,317 |
205,269,874 |
|||||||||
Total distributable earnings (loss) |
86,662,040 |
(166,406,426 |
) |
31,687,349 |
||||||||
Net assets applicable to common shares |
$ | 478,475,761 | $ | 366,997,292 | $ | 237,246,148 | ||||||
Authorized shares: |
||||||||||||
Common |
Unlimited |
Unlimited |
Unlimited |
|||||||||
Preferred |
Unlimited | Unlimited | Unlimited | |||||||||
† |
$ |
584,217,446 |
$ |
503,778,189 |
$ |
298,347,280 |
||||||
à |
$ |
10,300,000 |
$ |
9,125,000 |
$ |
6,100,000 |
||||||
^ Cash denominated in foreign currencies, cost |
$ |
29,781 |
$ |
891,672 |
$ |
– |
||||||
(1) Cash pledged to collateralize the net payment obligations for investments in derivatives is in addition to the Fund’s securities pledged as collateral as noted in the Portfolio of Investments. |
||||||||||||
See Notes to Financial Statements
71
Statement of Operations
Year Ended December 31, 2025 |
NMAI |
JRI |
JRS |
|||||||||
| INVESTMENT INCOME |
||||||||||||
| Affiliated income |
$ |
60,834 |
$ |
386,660 |
$ |
— |
||||||
| Dividends |
8,364,301 |
17,748,619 |
13,414,970 |
|||||||||
| Interest |
20,252,609 |
13,903,671 |
214,085 |
|||||||||
| Rehypothecation income |
48,092 |
— |
— |
|||||||||
| Tax withheld |
(352,234 |
) |
(719,766 |
) |
— |
|||||||
| Total investment income |
28,373,602 |
31,319,184 |
13,629,055 |
|||||||||
| EXPENSES |
||||||||||||
| Management fees |
5,554,497 |
5,156,401 |
3,027,988 |
|||||||||
| Shareholder servicing agent fees |
1,375 |
18,920 |
— |
|||||||||
| Interest expense |
9,240,970 |
8,598,323 |
5,147,839 |
|||||||||
| Trustees fees |
22,969 |
19,045 |
12,425 |
|||||||||
| Custodian expenses |
383,759 |
240,526 |
48,120 |
|||||||||
| Investor relations expenses |
86,021 |
127,085 |
75,690 |
|||||||||
| Professional fees |
111,677 |
70,736 |
58,174 |
|||||||||
| Shareholder reporting expenses |
61,069 |
58,768 |
56,186 |
|||||||||
| Stock exchange listing fees |
10,567 |
8,671 |
9,130 |
|||||||||
| Other |
24,010 |
10,112 |
6,413 |
|||||||||
| Total expenses |
15,496,914 |
14,308,587 |
8,441,965 |
|||||||||
| Net investment income (loss) |
12,876,688 |
17,010,597 |
5,187,090 |
|||||||||
| REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||
| Realized gain (loss) from: |
||||||||||||
| Investments* |
23,387,621 |
10,506,081 |
9,579,927 |
|||||||||
| Forward foreign currency contracts |
(21,494 |
) |
— |
— |
||||||||
| Futures contracts |
— |
122,842 |
— |
|||||||||
| Written options |
462,943 |
— |
— |
|||||||||
| Swap contracts |
— |
1,652,687 |
1,063,133 |
|||||||||
| Foreign currency transactions |
(197,421 |
) |
125,383 |
(17,209 |
) | |||||||
| Net realized gain (loss) |
23,631,649 |
12,406,993 |
10,625,851 |
|||||||||
| Change in unrealized appreciation (depreciation) on: |
||||||||||||
| Investments ** |
44,873,684 |
21,522,783 |
(19,108,883 |
) | ||||||||
| Forward foreign currency contracts |
(60,225 |
) |
— |
— |
||||||||
| Futures contracts |
— |
(323,497 |
) |
— |
||||||||
| Written options |
(115,914 |
) |
— |
— |
||||||||
| Swap contracts |
— |
(1,577,197 |
) |
(1,015,917 |
) | |||||||
| Foreign currency translations |
59,390 |
71,538 |
— |
|||||||||
| Net change in unrealized appreciation (depreciation) |
44,756,935 |
19,693,627 |
(20,124,800) |
|||||||||
| Net realized and unrealized gain (loss) |
68,388,584 |
32,100,620 |
(9,498,949) |
|||||||||
| Net increase (decrease) in net assets applicable to common shares from operations |
$ |
81,265,272 |
$ |
49,111,217 |
$ |
(4,311,859 |
) | |||||
| * Net of foreign capital gains tax |
$ |
(32 |
) |
$ |
— |
$ |
— |
|||||
| * Net of change in foreign capital gains tax |
$ |
(891 |
) |
$ |
— |
$ |
— |
|||||
See Notes to Financial Statements
72
Statement of Changes in Net Assets
NMAI |
JRI | |||||||||||||||||||
| Year Ended 12/31/25 |
Year Ended 12/31/24 |
Year Ended 12/31/25 |
Year Ended 12/31/24 |
|||||||||||||||||
| OPERATIONS |
||||||||||||||||||||
| Net investment income (loss) |
$ | 12,876,688 | $ | 12,289,623 | $ | 17,010,597 | $ | 14,857,796 | ||||||||||||
| Net realized gain (loss) |
23,631,649 | 2,139,980 | 12,406,993 | 11,025,082 | ||||||||||||||||
| Net change in unrealized appreciation (depreciation) |
44,756,935 | 21,345,470 | 19,693,627 | (375,263 | ) | |||||||||||||||
| Net increase (decrease) in net assets applicable to common shares from operations |
81,265,272 | 35,775,073 | 49,111,217 | 25,507,615 | ||||||||||||||||
| DISTRIBUTIONS TO COMMON SHAREHOLDERS |
||||||||||||||||||||
| Dividends |
(13,281,245 | ) | (12,673,637 | ) | (22,392,838 | ) | (18,052,526 | ) | ||||||||||||
| Return of Capital |
(29,821,124 | ) | (42,562,242 | ) | (21,534,905 | ) | (21,276,701 | ) | ||||||||||||
| Total distributions |
(43,102,369 | ) | (55,235,879 | ) | (43,927,743 | ) | (39,329,227 | ) | ||||||||||||
| CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
| Common shares: |
||||||||||||||||||||
| Reinvestments of distributions |
— | — | 316,245 | — | ||||||||||||||||
| Net increase (decrease) applicable to common shares from capital share transactions |
— | — | 316,245 | — | ||||||||||||||||
| Net increase (decrease) in net assets applicable to common shares |
38,162,903 | (19,460,806 | ) | 5,499,719 | (13,821,612 | ) | ||||||||||||||
| Net assets applicable to common shares at the beginning of period |
440,312,858 | 459,773,664 | 361,497,573 | 375,319,185 | ||||||||||||||||
| Net assets applicable to common shares at the end of period |
$ |
478,475,761 |
$ |
440,312,858 |
$ |
366,997,292 |
$ |
361,497,573 |
||||||||||||
See Notes to Financial Statements
73
Statement of Changes in Net Assets
(continued)
JRS | ||||||||||
| Year Ended 12/31/25 |
Year Ended 12/31/24 |
|||||||||
| OPERATIONS |
||||||||||
| Net investment income (loss) |
$ | 5,187,090 | $ | 2,420,053 | ||||||
| Net realized gain (loss) |
10,625,851 | 8,991,450 | ||||||||
| Net change in unrealized appreciation (depreciation) |
(20,124,800 | ) | 13,892,645 | |||||||
| Net increase (decrease) in net assets applicable to common shares from operations |
(4,311,859 | ) | 25,304,148 | |||||||
| DISTRIBUTIONS TO COMMON SHAREHOLDERS |
||||||||||
| Dividends |
(6,058,316 | ) | (7,022,713 | ) | ||||||
| Return of Capital |
(13,588,564 | ) | (12,624,167 | ) | ||||||
| Total distributions |
(19,646,880 | ) | (19,646,880 | ) | ||||||
| Net increase (decrease) in net assets applicable to common shares |
(23,958,739 | ) | 5,657,268 | |||||||
| Net assets applicable to common shares at the beginning of period |
261,204,887 | 255,547,619 | ||||||||
| Net assets applicable to common shares at the end of period |
$ |
237,246,148 |
$ |
261,204,887 |
||||||
See Notes to Financial Statements
74
Statement of Cash Flows
See Notes to Financial Statements
75
The following table provides a reconciliation of cash, cash denominated in foreign currencies and cash collateral at brokers to the Statement of Assets and Liabilities:
NMAI |
JRI |
JRS |
||||||||||
| Cash denominated in foreign currencies |
$ |
28,534 |
$ |
889,782 |
$ |
— |
||||||
| Cash collateral at broker for investments in futures contracts |
— |
142,769 |
— |
|||||||||
| |
||||||||||||
Total cash, cash denominated in foreign currencies and cash collateral at brokers |
$ |
28,534 |
$ |
1,032,551 |
$ |
— |
||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
NMAI |
JRI |
JRS |
|||||||||
| Cash paid for interest |
$ |
9,135,518 |
$ |
8,650,410 |
$ |
5,236,104 |
||||||
Non-cash financing activities not included herein consists of reinvestments of common share distributions |
— |
316,245 |
— |
|||||||||
See Notes to Financial Statements
76
[This page intentionally left blank.]
77
Financial Highlights
The following data is for a common share outstanding for each fiscal year end unless otherwise noted:
Investment Operations |
Less Distributions to Common Shareholders |
Common Share | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common Share Net Asset Value, Beginning of Period |
Net Investment Income (NII) (Loss) (a) |
Net Realized/ Unrealized Gain (Loss) |
Total |
From NII |
From Net Realized Gains |
Return of Capital |
Total |
Discount Per Share Repurchased and Retired |
Net Asset Value, End of Period |
Share Price, End of Period | ||||||||||||||||||||||||||||||||||||||||
NMAI |
||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/25 |
$13.17 |
$0.39 |
$2.04 |
$2.43 |
$(0.40) |
$— |
$(0.89) |
$(1.29) |
$— |
$14.31 |
$13.04 | |||||||||||||||||||||||||||||||||||||||
| 12/31/24 |
13.76 |
0.37 |
0.69 |
1.06 |
(0.38 |
) |
— |
(1.27) |
(1.65 |
) |
— |
13.17 |
12.04 | |||||||||||||||||||||||||||||||||||||
| 12/31/23 |
13.41 |
0.39 |
1.26 |
1.65 |
(0.62 |
) |
— |
(0.68) |
(1.30 |
) |
— |
13.76 |
12.30 | |||||||||||||||||||||||||||||||||||||
| 12/31/22 |
20.03 |
0.47 |
(4.86) |
(4.39) |
(1.40 |
) |
(0.83) |
— |
(2.23 |
) |
— |
13.41 |
11.49 | |||||||||||||||||||||||||||||||||||||
12/31/21 (e) |
20.00 |
0.07 |
0.31 |
0.38 |
(0.06 |
) |
(0.29) |
— |
(0.35 |
) |
— |
20.03 |
18.65 | |||||||||||||||||||||||||||||||||||||
JRI |
||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/25 |
13.19 |
0.62 |
1.16 |
1.78 |
(0.81 |
) |
— |
(0.79) |
(1.60 |
) |
— |
13.37 |
13.61 | |||||||||||||||||||||||||||||||||||||
| 12/31/24 |
13.69 |
0.54 |
0.39 |
0.93 |
(0.65 |
) |
— |
(0.78) |
(1.43 |
) |
— |
13.19 |
12.13 | |||||||||||||||||||||||||||||||||||||
| 12/31/23 |
13.57 |
0.55 |
0.65 |
1.20 |
(0.66 |
) |
— |
(0.42) |
(1.08 |
) |
— |
(g) |
13.69 |
11.72 | ||||||||||||||||||||||||||||||||||||
| 12/31/22 |
17.41 |
0.78 |
(3.46) |
(2.68) |
(0.77 |
) |
— |
(0.39) |
(1.16 |
) |
— |
13.57 |
11.70 | |||||||||||||||||||||||||||||||||||||
12/31/21 |
15.84 |
1.00 |
1.73 |
2.73 |
(1.09 |
) |
— |
(0.07) |
(1.16 |
) |
— |
17.41 |
16.12 | |||||||||||||||||||||||||||||||||||||
JRS |
||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/25 |
9.04 |
0.18 |
(0.33) |
(0.15) |
(0.21 |
) |
— |
(0.47) |
(0.68 |
) |
— |
8.21 |
7.66 | |||||||||||||||||||||||||||||||||||||
| 12/31/24 |
8.84 |
0.08 |
0.80 |
0.88 |
(0.24 |
) |
— |
(0.44) |
(0.68 |
) |
— |
9.04 |
8.63 | |||||||||||||||||||||||||||||||||||||
| 12/31/23 |
8.12 |
0.16 |
1.24 |
1.40 |
(0.23 |
) |
— |
(0.45) |
(0.68 |
) |
— |
8.84 |
7.82 | |||||||||||||||||||||||||||||||||||||
| 12/31/22 |
13.22 |
0.27 |
(4.54) |
(4.27) |
(0.26 |
) |
(0.30 |
) |
(0.27 |
) |
(0.83 |
) |
— |
8.12 |
7.56 | |||||||||||||||||||||||||||||||||||
12/31/21 |
9.63 |
0.25 |
4.10 |
4.35 |
(0.20 |
) |
(0.56 |
) |
— |
(0.76 |
) |
— |
13.22 |
12.82 | ||||||||||||||||||||||||||||||||||||
| (a) | Based on average shares outstanding. |
| (b) | Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested distributions at Common Share NAV, if any. The last distribution declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last distribution declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested distributions, if any, at the average price paid per share at the time of reinvestment. The last distribution declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last distribution declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
78
Common Share Supplemental Data/ Ratios Applicable to Common Shares | ||||||||||||||||||||||
Common Share Total Returns |
Ratios to Average Net Assets |
|||||||||||||||||||||
Based on Net Asset Value (b) |
Based on Share Price (b) |
Net Assets, End of Period (000) |
Expenses (c) |
Net Investment Income (Loss) (c) ,(d) |
Portfolio Turnover Rate | |||||||||||||||||
19.23% |
19.86% |
$478,476 |
3.38% |
2.81% |
68% | |||||||||||||||||
7.85 |
11.46 |
440,313 |
3.50 |
2.66 |
41 | |||||||||||||||||
12.87 |
19.43 |
459,774 |
3.68 |
2.86 |
46 | |||||||||||||||||
(21.91) |
(26.29) |
448,357 |
2.53 |
2.88 |
129 | |||||||||||||||||
1.90 |
(5.00) |
669,611 |
1.63 (f) |
3.35 (f) |
66 | |||||||||||||||||
14.15 |
26.60 |
366,997 |
3.90 |
4.64 |
72 | |||||||||||||||||
7.03 |
16.12 |
361,498 |
4.14 |
3.99 |
80 | |||||||||||||||||
9.32 |
10.02 |
375,319 |
4.07 |
4.15 |
59 | |||||||||||||||||
(15.83) |
(20.83) |
372,451 |
2.63 |
5.09 |
71 | |||||||||||||||||
17.73 |
29.09 |
477,911 |
1.82 |
5.94 |
73 | |||||||||||||||||
(1.70) |
(3.39) |
237,246 |
3.40 |
2.09 |
22 | |||||||||||||||||
10.28 |
19.66 |
261,205 |
3.52 |
0.93 |
31 | |||||||||||||||||
18.14 |
13.46 |
255,548 |
3.64 |
1.88 |
33 | |||||||||||||||||
(32.94) |
(35.25) |
234,497 |
2.33 |
2.58 |
58 | |||||||||||||||||
46.38 |
62.73 |
381,815 |
1.54 |
2.16 |
92 | |||||||||||||||||
| (c) | • Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to borrowings, preferred shares and/or reverse repurchase agreements (as described in Notes to Financial Statements), where applicable. |
• The expense ratios reflect, among other things, all interest expense and other costs related to borrowings, preferred shares and/or reverse repurchase agreements (as described in Notes to Financial Statements) and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund (as described in Notes to Financial Statements), where applicable, as follows: |
| (d) | Includes voluntary compensation from the Adviser as further described in the Notes to Financial Statements. |
| (e) | For the period November 22, 2021 (commencement of operations) through December 31, 2021. |
| (f) | Annualized. |
| (g) | Value rounded to zero. |
See Notes to Financial Statements
79
Financial Highlights
The following table sets forth information regarding each Fund’s outstanding senior securities as of the end of each of the Fund’s last five fiscal periods, as applicable.
Borrowings |
||||||||||||
Aggregate Amount Outstanding (000) (a) |
Asset Coverage Per $1,000 (b) |
|||||||||||
NMAI |
||||||||||||
12/31/25 |
$ |
174,786 |
$ |
3,737 |
||||||||
12/31/24 |
122,336 |
4,599 |
||||||||||
12/31/23 |
85,416 |
6,383 |
||||||||||
12/31/22 |
175,601 |
3,553 |
||||||||||
12/31/21 (c) |
178,550 |
4,750 |
||||||||||
JRI |
||||||||||||
12/31/25 |
170,945 |
3,147 |
||||||||||
12/31/24 |
178,945 |
3,020 |
||||||||||
12/31/23 |
151,695 |
3,474 |
||||||||||
12/31/22 |
166,985 |
3,230 |
||||||||||
12/31/21 |
197,935 |
3,414 |
||||||||||
JRS |
||||||||||||
12/31/25 |
102,400 |
3,317 |
||||||||||
12/31/24 |
112,400 |
3,324 |
||||||||||
12/31/23 |
94,400 |
3,707 |
||||||||||
12/31/22 |
104,400 |
3,246 |
||||||||||
12/31/21 |
144,000 |
3,651 |
||||||||||
| (a) | Aggregate Amount Outstanding: Aggregate amount outstanding represents the principal amount outstanding or liquidation preference, if applicable, as of the end of the relevant fiscal year. |
| (b) | Asset Coverage Per $1,000: Asset coverage per $1,000 is calculated by subtracting the Fund’s liabilities and indebtedness not represented by senior securities from the Fund’s total assets, dividing the result by the aggregate amount of the Fund’s borrowings (excluding temporary borrowings) then outstanding and multiplying the result by 1,000. For purpose of asset coverage above, senior securities consist of preferred shares or borrowings of a Fund and does not include derivative transactions and other investments that have the economic effect of leverage such as reverse repurchase agreements and tender option bonds. If the leverage effects of such investments were included, the asset coverage amounts presented would be lower. |
| (c) | For the period November 22, 2021 (commencement of operations) through December 31, 2021. |
80
Notes to Financial Statements
1. |
General Information |
Fund Information:
• Nuveen Multi-Asset Income Fund (NMAI)
• Nuveen Real Asset Income and Growth Fund (JRI)
• Nuveen Real Estate Income Fund (JRS)
The Funds are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as closed-end management investment companies. NMAI, JRI and JRS were organized as Massachusetts business trusts on April 22, 2021, January 10, 2012 and August 27, 2001, respectively.
Current Fiscal Period
Investment Adviser and Sub-Adviser:
2. |
Significant Accounting Policies |
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. The Funds are investment companies and follow accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services — Investment Companies. The net asset value (“NAV”) for financial reporting purposes may differ from the NAV for processing security and common share transactions. The NAV for financial reporting purposes includes security and common share transactions through the date of the report. Total return is computed based on the NAV used for processing security and common share transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Compensation:
Distributions to Shareholders:
NMAI and JRI make monthly cash distributions, while JRS makes quarterly cash distributions to common shareholders of a stated dollar amount per share. Prior to the June 2025 distribution, NMAI made quarterly cash distribution. Subject to approval and oversight by the Board, JRS seeks to maintain a stable distribution level designed to deliver the long-term return potential of each Fund’s investment strategy through regular quarterly distributions (a “Managed Distribution Program”). Total distributions during a calendar year generally will be made from each Fund’s net investment income, net realized capital gains and net unrealized capital gains in the Fund’s portfolio, if any. The portion of distributions paid attributed to net unrealized gains, if any, is distributed from the Fund’s assets and is treated by common shareholders as a non-taxable distribution (“return of capital”) for tax purposes. In the event that total distributions during a calendar year exceed a Fund’s total return on NAV, the difference will reduce NAV per share. If a Fund’s total return on NAV exceeds total distributions during a calendar year, the excess will be reflected as an increase in NAV per share. The final determination of the source and character of all distributions paid by a Fund during the fiscal year is made after the end of the fiscal year and is reflected in the financial statements contained in the annual report as of December 31 each year.
The distribution policy for NMAI and JRI, which may be changed by the Board, is to make regular monthly cash distributions to holders of its common shares (stated in terms of a fixed cents per common share dividend distribution rate which may be set from time to time). Each Fund intends to distribute all or substantially all of its net investment income each year through its regular monthly distribution and to distribute realized capital gains at least annually. In addition, in any monthly period, to maintain its declared per common share distribution amount, Each Fund may distribute more or less than its net investment income during the period. In the event a Fund distributes more than its net investment income during any yearly period, such distributions may also include realized gains and/or a return of capital. To the extent that a distribution includes a return
81
Notes to Financial Statements
(continued)
of capital the NAV per share may erode. The practice of maintaining a stable distribution level had no material effect on each Fund’s investment strategy during the most recent fiscal period and is not expected to have such an effect in future periods, however, distributions in excess of Fund returns will cause its NAV per share to erode.
The tax character of Fund distributions for a fiscal year is dependent upon the amount and tax character of distributions received from securities held in a Fund’s portfolio. Distributions received from certain securities in which a Fund invests, most notably real estate investment trust securities, may be characterized for tax purposes as ordinary income, long-term capital gain and/or a return of capital. The issuer of a security reports the tax character of its distributions only once per year, generally during the first two months of the calendar year for the previous year. The distribution is included in a Fund’s ordinary income until such time a Fund is notified by the issuer of the actual tax character. Dividend income, net realized gain (loss) and unrealized appreciation (depreciation) recognized on the Statement of Operations reflect the amounts of ordinary income, capital gain, and/or return of capital as reported by the issuers of such securities for distributions during the current fiscal period.
Foreign Currency Transactions and Translation:
To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because their currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions. The books and records of the Funds are maintained in U.S. dollars. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollars at the end of each day. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions.
Some markets in which the Funds invest impose capital controls, repatriation limits and/or transaction fees, for example, on the amount of foreign currency that may be converted to U.S. dollars. These restrictions, in some markets where foreign exchange restrictions are imposed, may be reflected in non-deliverable forward rates (NDF), or prevailing “offshore” rates that apply to non-local investors. Accordingly, the Fund may apply NDF rates, or another alternative exchange rate believed by the Adviser to be more reflective of the rates at which the Funds may transact, where applicable, to convert the value of non-U.S. dollar denominated securities to U.S. dollars. The U.S. dollar market value of such securities held in markets where NDF rates exist may be lower than the U.S. dollar market value of securities using prevailing local or “onshore” foreign currency exchange rates.
Net realized foreign currency gains and losses resulting from changes in exchange rates associated with (i) foreign currency, (ii) investments and (iii) derivatives include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received are recognized as a component of “Net realized gain (loss) from foreign currency transactions” on the Statement of Operations, when applicable.
The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments and (ii) other assets and liabilities are recognized as a component of “Change in net unrealized appreciation (depreciation) of foreign currency translations” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.
As of the end of the current fiscal period, NMAI’s and JRI’s investments in non-U.S. securities were as follows:
NMAI |
Value |
% of Total Investments | ||||
| Country: |
||||||
| Japan |
$ |
23,557,362 |
3.4% | |||
| United Kingdom |
21,247,823 |
3.1 | ||||
| France |
16,601,217 |
2.4 | ||||
| Germany |
14,062,508 |
2.0 | ||||
| Spain |
13,229,630 |
1.9 | ||||
| Switzerland |
10,011,048 |
1.5 | ||||
| Canada |
8,465,285 |
1.2 | ||||
| Netherlands |
7,369,736 |
1.1 | ||||
| Mexico |
7,227,339 |
1.1 | ||||
| Other |
60,149,827 |
8.7 | ||||
| Total non-U.S. Securities |
$ |
181,921,775 |
26.4% | |||
82
JRI |
Value |
% of Total Investments | ||||
| Country: |
||||||
| Canada |
$ |
53,731,450 |
10.0% | |||
| United Kingdom |
28,114,275 |
5.2 | ||||
| France |
13,524,433 |
2.5 | ||||
| Italy |
13,321,106 |
2.5 | ||||
| Singapore |
9,397,019 |
1.7 | ||||
| Australia |
8,808,782 |
1.6 | ||||
| Japan |
8,033,456 |
1.5 | ||||
| Mexico |
6,698,126 |
1.2 | ||||
| Hong Kong |
5,814,369 |
1.1 | ||||
| Other |
18,882,476 |
3.6 | ||||
| Total non-U.S. Securities |
$ |
166,325,492 |
30.9% | |||
Foreign Taxes:
The Funds may be subject to foreign taxes on income, gains on investments or foreign currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon the current interpretation of tax rules and regulations that exist in the markets in which the Funds invest. Indemnifications:
Under the Funds’ organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Investments and Investment Income:
Securities transactions are accounted for as of the trade date for financial reporting purposes. Trade date for senior and subordinated loans purchased in the “primary market” is considered the date on which the loan allocations are determined. Trade date for senior and subordinated loans purchased in the “secondary market” is the date on which the transaction is entered into. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when information is available. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded at fair value. Interest income, is recorded on an accrual basis and includes accretion of discounts and amortization of premiums for financial reporting purposes. Interest income also reflects payment-in kind (“PIK”) interest, paydown gains and losses and fee income, if any. PIK interest represents income received in the form of securities in lieu of cash. Fee income consists primarily of amendment fees. Amendment fees are earned as compensation for evaluating and accepting changes to an original senior loan agreement and are recognized when received. Rehypothecation income when applicable, is comprised of fees earned in connection with the rehypothecation of pledged collateral as further described later in these Notes to Financial Statements Netting Agreements:
In the ordinary course of business, the Funds may enter into transactions subject to enforceable master repurchase agreements, International Swaps and Derivatives Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis. With respect to certain counterparties, in accordance with the terms of the netting agreements, collateral posted to the Funds is held in a segregated account by the Funds’ custodian and/or with respect to those amounts which can be sold or repledged, are presented in the Funds’ Portfolio of Investments or Statement of Assets and Liabilities. The Funds’ investments subject to netting agreements as of the end of the current fiscal period, if any, are further described later in these Notes to Financial Statements.
Segment Reporting:
Each Fund represents a single operating segment. The officers of the Funds act as the chief operating decision maker (“CODM”), as defined in U.S. GAAP. The CODM monitors the operating results of each Fund as a whole and is responsible for each Fund’s long-term strategic asset allocation in accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the Fund’s portfolio managers as a team. The financial information in the form of the Fund’s portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions), which are used by the CODM to assess the segment’s performance versus the Fund’s comparative benchmarks and to make resource allocation decisions for the Fund’s single segment, is consistent with that presented within the Fund’s financial statements. Segment assets are reflected on the Statement of Assets and Liabilities as “total assets” and significant segment revenues and expenses are listed on the Statement of Operations. New Accounting Pronouncement (ASU No. 2023-09)
: In December 2023, the FASB issued Accounting Standard Update (“ASU”) No. 2023-09, Income Taxes (Topic 740) Improvements to Income tax disclosures (“ASU 2023-09”). The primary purpose of the amendments within ASU 2023-09 is to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation table and income taxes paid information. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. During the current fiscal period, the Funds adopted the new guidance. See Note 7 for more information. 83
Notes to Financial Statements
(continued)
New Accounting Pronouncement (ASU No. 2025-11)
: In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270) Narrow Scope Improvements (“ASU 2025-11”). The amendments in ASU 2025-11 provide a comprehensive list of interim disclosures that are required by U.S. GAAP. ASU 2025-11 also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted for all entities. Management is currently evaluating the implications of these changes on the financial statements. 3. |
Investment Valuation and Fair Value Measurements |
The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Adviser, subject to oversight of the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy which is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect management’s assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
A description of the valuation techniques applied to the Funds’ major classifications of assets and liabilities measured at fair value follows:
Equity securities and exchange-traded funds listed or traded on a national market or exchange are valued based on their last reported sales price or official closing price of such market or exchange on the valuation date. Foreign equity securities and registered investment companies that trade on a foreign exchange are valued at the last reported sales price or official closing price on the principal exchange where traded, and converted to U.S. dollars at the prevailing rates of exchange on the valuation date. For events affecting the value of foreign securities between the time when the exchange on which they are traded closes and the time when the Funds’ net assets are calculated, such securities will be valued at fair value in accordance with procedures adopted by the Adviser, subject to the oversight of the Board. To the extent these securities are actively traded and no valuation adjustments are applied, they are generally classified as Level 1. When valuation adjustments are applied to the most recent last sales price or official closing price, these securities are generally classified as Level 2.
Prices of fixed-income securities are generally provided by pricing services approved by the Adviser, which is subject to review by the Adviser and oversight of the Board. Pricing services establish a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, pricing services may consider information about a security, its issuer or market activity provided by the Adviser. These securities are generally classified as Level 2.
Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in the United States are valued based on the last traded price, official closing price, or an evaluated price provided by the pricing services and are generally classified as Level 1 or 2.
Investments in investment companies are valued at their respective NAVs or share price on the valuation date and are generally classified as Level 1.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. These securities are generally classified as Level 2.
Forward foreign currency contracts are valued using the prevailing forward exchange rate which is derived from quotes provided by the pricing service using the procedures approved by the Adviser, subject to the oversight of the Board, and are generally classified as Level 2.
Futures contracts are valued using the closing settlement price or, in the absence of such a price, the last traded price and are generally classified as Level 1.
Swap contracts are marked-to-market daily based upon a price supplied by a pricing service. Swaps are generally classified as Level 2.
Purchased and written options traded and listed on a national market or exchange are valued at the mean of the closing bid and asked prices and are generally classified as Level 1.
For any portfolio security or derivative for which market quotations are not readily available or for which the Adviser deems the valuations derived using the valuation procedures described above not to reflect fair value, the Adviser will determine a fair value in good faith using alternative procedures approved by the Adviser, subject to the oversight of the Board. As a general principle, the fair value of a security is the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity
84
and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. To the extent the inputs are observable and timely, the values would be classified as Level 2; otherwise they would be classified as Level 3.
The following table summarizes the market value of the Funds’ investments as of the end of the current fiscal period, based on the inputs used to value them:
NMAI |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Long-Term Investments: |
||||||||||||||||
| Asset-Backed Securities |
$ |
– |
$ |
1,954,469 |
$ |
217,130 |
$ |
2,171,599 |
||||||||
| Common Stocks |
235,199,801 |
100,246,667 |
8 |
335,446,476 |
||||||||||||
| Corporate Bonds |
– |
92,572,057 |
– |
92,572,057 |
||||||||||||
| Emerging Market Debt and Foreign Corporate Bonds |
– |
68,760,634 |
1,446,701 |
70,207,335 |
||||||||||||
| Exchange-Traded Funds |
36,419,316 |
– |
– |
36,419,316 |
||||||||||||
| Investment Companies |
66,548 |
– |
– |
66,548 |
||||||||||||
| Mortgage-Backed Securities |
– |
58,937,504 |
– |
58,937,504 |
||||||||||||
| Preferred Stock |
5,120,097 |
– |
– |
5,120,097 |
||||||||||||
| U.S. Government and Agency Obligations |
– |
27,674,863 |
– |
27,674,863 |
||||||||||||
| Variable Rate Senior Loan Interests |
– |
50,107,305 |
1,127 |
50,108,432 |
||||||||||||
Short-Term Investments: |
||||||||||||||||
| Repurchase Agreements |
– |
10,300,000 |
– |
10,300,000 |
||||||||||||
Investments in Derivatives: |
||||||||||||||||
| Forward Foreign Currency Contracts* |
– |
(1,732 |
) |
– |
(1,732 |
) | ||||||||||
Total |
$ |
276,805,762 |
$ |
410,551,767 |
$ |
1,664,966 |
$ |
689,022,495 |
||||||||
JRI |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Long-Term Investments: |
||||||||||||||||
| Common Stocks |
$ |
177,551,827 |
$ |
81,314,419 |
$ |
– |
$ |
258,866,246 |
||||||||
| Convertible Preferred Securities |
11,984,914 |
– |
– |
11,984,914 |
||||||||||||
| Corporate Bonds |
– |
173,904,488 |
– |
173,904,488 |
||||||||||||
| Investment Companies |
2,812,750 |
– |
– |
2,812,750 |
||||||||||||
| Mortgage-Backed Securities |
– |
11,240,351 |
– |
11,240,351 |
||||||||||||
| Preferred Stock |
56,488,356 |
– |
– |
56,488,356 |
||||||||||||
| Variable Rate Senior Loan Interests |
– |
13,153,280 |
– |
13,153,280 |
||||||||||||
Short-Term Investments: |
||||||||||||||||
| Repurchase Agreements |
– |
9,125,000 |
– |
9,125,000 |
||||||||||||
Investments in Derivatives: |
||||||||||||||||
| Futures Contracts* |
18,483 |
– |
– |
18,483 |
||||||||||||
Total |
$ |
248,856,330 |
$ |
288,737,538 |
$ |
– |
$ |
537,593,868 |
||||||||
JRS |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Long-Term Investments: |
||||||||||||||||
| Common Stocks |
$ |
245,664,976 |
$ |
– |
$ |
– |
$ |
245,664,976 |
||||||||
| Convertible Preferred Securities |
1,766,178 |
– |
– |
1,766,178 |
||||||||||||
| Preferred Stock |
90,058,602 |
– |
– |
90,058,602 |
||||||||||||
Short-Term Investments: |
||||||||||||||||
| Repurchase Agreements |
– |
6,100,000 |
– |
6,100,000 |
||||||||||||
Total |
$ |
337,489,756 |
$ |
6,100,000 |
$ |
– |
$ |
343,589,756 |
||||||||
*Represents net unrealized appreciation (depreciation).
4. |
Portfolio Securities |
Unfunded Commitments:
Pursuant to the terms of certain of the variable rate senior loan agreements, NMAI and JRI may have unfunded senior loan commitments. The Fund will maintain with its custodian, cash, liquid securities and/or liquid senior loans having an aggregate value at least equal to the amount of unfunded senior loan commitments. As of the end of the current fiscal period, JRI had no value in outstanding unfunded senior loan commitments, whereas NMAI’s outstanding unfunded senior loan commitments were as follows: 85
Notes to Financial Statements
(continued)
| Fund |
Outstanding Unfunded Senior Loan Commitments |
|||
NMAI |
$135,795 |
|||
| |
||||
Participation Commitments
:
With respect to the senior loans held in NMAI and JRI portfolio, the Funds may: 1) invest in assignments; 2) act as a participant in primary lending syndicates; or 3) invest in participations. If the Funds purchases a participation of a senior loan interest, the Funds would typically enter into a contractual agreement with the lender or other third party selling the participation, rather than directly with the borrower. As such, the Funds not only assumes the credit risk of the borrower, but also that of the selling participant or other persons interpositioned between the Fund and the borrower. As of the end of the current fiscal period, the Funds had no such outstanding participation commitments. Repurchase Agreements:
In connection with transactions in repurchase agreements, it is each Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited. The following table presents the repurchase agreements for the Funds that are subject to netting agreements as of the end of the current fiscal period, and the collateral delivered related to those repurchase agreements.
Fund |
Counterparty |
Short-term Investments, at Value |
Collateral Pledged (From) Counterparty |
|||||||||
| NMAI |
Fixed Income Clearing Corporation | $ | 10,300,000 | $ | (10,506,122 | ) | ||||||
| JRI |
Fixed Income Clearing Corporation | 9,125,000 | (9,307,720 | ) | ||||||||
| JRS |
Fixed Income Clearing Corporation | 6,100,000 | (6,222,131 | ) | ||||||||
Zero Coupon Securities:
A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. Purchases and Sales:
Long-term purchases and sales during the current fiscal period were as follows: Fund |
Non-U.S. Government Purchases |
U.S. Government Purchases |
Non-U.S. Government Sales and Maturities |
U.S. Government Sales |
||||||||||||
| NMAI |
$ | 407,951,674 | $ | 27,853,842 | $ | 390,957,707 | $ | 54,108,278 | ||||||||
| JRI |
383,961,249 | — | 413,716,250 | — | ||||||||||||
| JRS |
78,351,665 | — | 95,668,689 | — | ||||||||||||
The Funds may purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market fluctuation during this period. If a Fund has outstanding when-issued/delayed-delivery purchases commitments as of the end of the current fiscal period, such amounts are recognized on the Statement of Assets and Liabilities.
5. |
Derivative Investments |
Each Fund is authorized to invest in certain derivative instruments. As defined by U.S. GAAP, a derivative is a financial instrument whose value is derived from an underlying security price, foreign exchange rate, interest rate, index of prices or rates, or other variables. Investments in derivatives as of the end of and/or during the current fiscal period, if any, are included within the Statement of Assets and Liabilities and the Statement of Operations, respectively.
Forward Foreign Currency Contracts:
During the current fiscal period, NMAI used foreign exchange forwards partially hedge its exposure to non-U.S. dollar denominated positions. A forward contract is an agreement between two parties to purchase or sell a specified quantity of a currency at or before a specified date in the future at a specified price. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. Forward contracts are typically traded in the over-the-counter (“OTC”) markets and all details of the contract are negotiated between the counterparties to the agreement. Forward contracts are marked-to-market daily and any resulting unrealized gains or losses are reflected as appreciation or depreciation on the Statement of Assets and Liabilities. The Funds realizes gains and losses at the time the forward contracts are closed and are included on the Statement of Operations. Risks may arise upon entering into forward contracts from unanticipated movements in the value of a foreign currency relative to the U.S. dollar; and that losses may exceed amounts recognized on the Statement of Assets and Liabilities.
86
The average notional amount of forward foreign currency contracts outstanding during the current fiscal period was as follows:
Fund |
Average Notional Amount of Forward Contracts Outstanding* | |
| NMAI |
$1,868,586 |
| * | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the forward foreign currency contracts subject to netting agreements and the collateral delivered related to those forward foreign currency contracts as of the end of the current fiscal period.
Fund |
Counterparty |
Gross Unrealized Appreciation on Forward Foreign Currency Contracts* |
Gross Unrealized (Depreciation) on Forward Foreign Currency Contracts* |
Net Unrealized |
Collateral Pledged to (from) Counterparty |
Net Exposure |
||||||||||||||||||
| NMAI |
Citibank, N.A | $ | - | $ | (1,732 | ) | $ | (1,732 | ) | $ | - | $ | (1,732 | ) | ||||||||||
* Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Funds’ Portfolio of Investments.
Futures Contracts:
During the current fiscal period, JRI continued to use interest rate futures to partially hedge the portfolio against movements in interest rates. A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Upon execution of a futures contract, the Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Securities deposited for initial margin, if any, are identified in the Portfolio of Investments and cash deposited for initial margin, if any, is reflected on the Statement of Assets and Liabilities.
During the period the futures contract is open, changes in the market value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis. The Fund and the clearing broker are obligated to settle monies on a daily basis representing the changes in the value of the contracts. These daily cash settlements are known as “variation margin” and is recognized on the Statement of Assets and Liabilities as a receivable or payable for variation margin on futures contracts. When the contract is closed or expired, the Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into. The net realized gain or loss and the change in unrealized appreciation (depreciation) on futures contracts held during the period is included on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.
The average notional amount of futures contracts outstanding during the current fiscal period was as follows:
Fund |
Average Notional Amount of Futures Contracts Outstanding* | |
| JRI |
$8,110,899 |
| * | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
Options Transactions:
During the current fiscal period, NMAI purchased and wrote call and put options as part of its overwrite strategy.The Funds may purchase (buy) or write (sell) put and call options on specific securities (including groups or “baskets” of specific securities), interest rates, stock indices and/or bond indices (each a “financial instrument”). Options can be settled either directly with the counterparty (over the counter) or through a central clearing house (exchange traded). Call and put options give the holder the right, in return for a premium paid, to purchase or sell, respectively, a financial instrument at a specified exercise price at any time during the period of the option.
When a Fund purchases an option, an amount equal to the premium paid (the premium plus commission) is recognized as an asset on the Statement of Asset and Liabilities. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recognized as a liability on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option until the option is exercised or expires or the Fund enters into a closing purchase transaction. The changes in the value of options purchased and/or written during the fiscal period are recognized as in unrealized appreciation (depreciation) on the Statement of Operations. When an option expires, the premiums
87
Notes to Financial Statements
(continued)
received or paid are recognized as realized gains or losses on the Statement of Operations. When an option is exercised or a closing purchase transaction is entered into, the difference between the premium and the amount received or paid in a closing transaction is recognized as a realized gain or loss on the Statement of Operations.
The market risk associated with purchasing options is limited to the premium paid. The Fund, as writer of an option, has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
The average notional amount of outstanding options purchased during the current fiscal period, was as follows:
Fund |
Average Notional Amount of Purchased Options Contracts Outstanding* | |
| NMAI |
$7,000 |
| * | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The average notional amount of outstanding options written during the current fiscal period, was as follows:
Fund |
Average Notional Amount of Written Options Contracts Outstanding* | |
| NMAI |
$20,300,000 |
| * | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
Interest Rate Swap Contracts:
During the current fiscal period, JRI and JRS continued to use interest rate swap contracts to partially hedge its interest cost of leverage, which the Funds employed through the use if bank borrowings. Interest rate swap contracts involve the Fund’s agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment. Forward interest rate swap contracts involve the Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”).
Upon entering into an interest rate swap contract (and beginning on the effective date for a forward interest rate swap contract), the Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on the interest rate swap contracts on a daily basis, and recognizes the daily change in the fair value of the Fund’s contractual rights and obligations under the contracts. The amount of the payment obligation for an interest rate swap is based on the notional amount and the termination date of the contract. Interest rate swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss on such transactions is limited to the net amount of interest payments that the Fund is to receive from the counterparty. Payments paid (received) at the beginning of the measurement period are reflected as swap premiums paid (received) on the Statement of Assets and Liabilities, when applicable. Interest rate swaps can be settled either directly with the counterparty (“OTC”) or through a central clearinghouse (“centrally cleared”). For OTC swaps, the daily change in the market value of the swap contract, along with any daily interest fees accrued, are recognized as unrealized appreciation (depreciation) on interest rate swaps contracts on the Statement of Assets and Liabilities.
Upon the execution of a centrally cleared swap, a Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Securities deposited for initial margin, if any, are identified in the Portfolio of Investments and cash deposited for initial margin, if any, is reflected on the Statement of Assets and Liabilities. The Fund and the clearing broker are obligated to settle monies on a daily basis representing the changes in the value of the swap contracts. These daily cash settlements are known as “variation margin” and is recognized on the Statement of Assets and Liabilities as a receivable or payable for variation margin on interest rate swaps contracts.
Changes in the value of the swap contracts during the fiscal period are recognized as net unrealized appreciation (depreciation) of swaps contracts on the Statement of Operations. The net amount of periodic payments settled in cash are recognized as net realized gain (loss) from swaps on the Statement of Operations, in addition to the net realized gain or loss recorded upon the termination of the swap contract.
The average notional amount of interest rate swap contracts outstanding during the current fiscal period was as follows:
Fund |
Average Notional Amount of Interest Rate Swap Contracts Outstanding* | |
| JRI |
$67,440,000 | |
| JRS |
43,440,000 |
| * | The average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period and at the end of each fiscal quarter within the current fiscal period. |
88
As of the end of the current fiscal period, the Funds have invested in derivative contracts which are reflected in the Statement of Assets and Liabilities as follows:
| Asset Derivatives |
Liability Derivatives | |||||||||||||||
Derivative Instrument |
Risk Exposure |
Location |
Value |
Location |
Value | |||||||||||
| NMAI |
||||||||||||||||
Forward Foreign Currency Contracts |
Foreign currency exchange rate |
- |
$– |
Unrealized depreciation on forward contracts |
$(1,732) | |||||||||||
| JRI |
||||||||||||||||
Futures Contracts |
Interest rate |
Unrealized appreciation on futures contracts* |
18,483 |
- |
– | |||||||||||
| * | The fair value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected in the accompanying Statement of Assets and Liabilities is only the receivable or payable for variation margin on open futures contracts. |
During the current fiscal period, the effect of derivative contracts on the Funds’ Statements of Operations was as follows:
Derivative Instrument |
Risk Exposure |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) | |||
| NMAI |
||||||
Forward foreign currency contracts |
Foreign currency exchange rate |
$(21,494) |
$(60,225) | |||
Purchased options |
Equity |
1,410* |
1,596* | |||
Written options |
Equity |
462,943 |
(115,914) | |||
| JRI |
||||||
Futures contracts |
Interest rate |
122,842 |
(323,497) | |||
Swap contracts |
Interest rate |
1,652,687 |
(1,577,197) | |||
| JRS |
||||||
Swap contracts |
Interest rate |
1,063,133 |
(1,015,917) |
* Shown as a component of Realized gain (loss) from Investments on the Statement of Operations.
Market and Counterparty Credit Risk:
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
89
Notes to Financial Statements
(continued)
6. |
Fund Shares |
Common Share Transactions:
Transactions in common shares for the Funds during the Funds’ current and prior fiscal period, where applicable, were as follows: JRI |
||||||||
Year Ended 12/31/25 |
Year Ended 12/31/24 |
|||||||
| Common Shares: |
||||||||
| Issued to shareholders due to reinvestment of distributions |
23,392 |
— |
||||||
Total |
23,392 |
— |
||||||
7. |
Income Tax Information |
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
Each Fund files income tax returns in U.S. federal and applicable state and local jurisdictions. A Fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after being filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed each Fund’s tax positions taken for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements.
Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing gains and losses on investment transactions. Temporary differences do not require reclassification. As of year end, permanent differences that resulted in reclassifications among the components of net assets relate primarily to bond premium amortization adjustments, complex securities character adjustments, deemed dividend due to corporate actions, foreign currency transactions, foreign taxes paid, investments in partnerships, investments in passive foreign investment companies, paydowns, return of capital and long-term capital gain distributions received from portfolio investments, and treatment of notional principal contracts. Temporary and permanent differences have no impact on a Fund’s net assets.
As of year end, the aggregate cost and the net unrealized appreciation/(depreciation) of all investments for federal income tax purposes were as follows:
Fund |
Tax Cost |
Gross Unrealized Appreciation |
Gross Unrealized (Depreciation) |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
| NMAI |
$ | 596,724,777 | $ | 108,200,363 | $ | (15,902,645) | $ | 92,297,718 | ||||||||
| JRI |
517,478,794 | 39,417,297 | (19,302,223) | 20,115,074 | ||||||||||||
| JRS |
311,549,612 | 61,674,178 | (29,634,034) | 32,040,144 | ||||||||||||
For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized income and/or capital gains for tax reporting, if applicable.
As of year end, the components of accumulated earnings on a tax basis were as follows:
Fund |
Undistributed Ordinary Income |
Undistributed Long-Term Capital Gains |
Unrealized Appreciation (Depreciation) |
Capital Loss Carryforwards |
Late-Year Loss Deferrals |
Other Book-to-Tax Differences |
Total |
|||||||||||||||||||||
| NMAI |
$ | — | $ | — | $ | 92,325,152 | $ | (5,663,112) | $ | — | $ | — | $ | 86,662,040 | ||||||||||||||
| JRI |
— | — | 20,119,979 | (186,526,405) | — | — | (166,406,426) | |||||||||||||||||||||
| JRS |
— | — | 32,040,143 | (316,032) | — | (36,762) | 31,687,349 | |||||||||||||||||||||
The tax character of distributions paid was as follows:
12/31/25 |
12/31/24 |
|||||||||||||||||||||||
Fund |
Ordinary Income |
Long-Term Capital Gains |
Return of Capital |
Ordinary Income |
Long-Term Capital Gains |
Return of Capital |
||||||||||||||||||
| NMAI |
$ | 13,281,245 | $ | — | $ | 29,821,124 | $ | 12,673,637 | $ | — | $ | 42,562,242 | ||||||||||||
| JRI |
22,392,838 | — | 21,534,905 | 18,052,526 | — | 21,276,701 | ||||||||||||||||||
| JRS |
6,058,316 | — | 13,588,564 | 7,022,713 | — | 12,624,167 | ||||||||||||||||||
90
As of year end, the Funds had capital loss carryforwards, which will not expire:
Fund |
Short-Term |
Long-Term |
Total |
|||||||||
NMAI |
$ |
— |
$ |
5,663,112 |
$ |
5,663,112 |
||||||
JRI |
52,614,366 |
133,912,039 |
186,526,405 |
|||||||||
JRS |
316,032 |
— |
316,032 |
|||||||||
As of year end, the Funds utilized the following capital loss carryforwards:
Fund |
Utilized | |
NMAI |
$16,330,789 | |
JRI |
7,553,244 | |
JRS |
7,418,362 |
The following table presents income taxes paid by the Funds in foreign jurisdictions during the current fiscal period. The Funds did not pay any other income taxes.
8. |
Management Fees and Other Transactions with Affiliates |
Management Fees:
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund
91
Notes to Financial Statements
(continued)
shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is calculated according to the following schedule:
Average Daily Managed Assets* |
NMAI Fund-Level Fee Rate |
JRI Fund-Level Fee Rate |
JRS Fund-Level Fee Rate |
|||||||||
For the first $500 million |
0.7000 |
% |
0.8000 |
% |
0.7000 |
% | ||||||
For the next $500 million |
0.6750 |
0.7750 |
0.6750 |
|||||||||
For the next $500 million |
0.6500 |
0.7500 |
0.6500 |
|||||||||
For the next $500 million |
0.6250 |
0.7250 |
0.6250 |
|||||||||
For managed assets over $2 billion |
0.6000 |
0.7000 |
0.6000 |
|||||||||
The annual complex-level fee, payable monthly, for each Fund is calculated according to the following schedule:
Complex-Level Asset Breakpoint Level* |
Complex-Level Fee |
|||
For the first $124.3 billion |
0.1600 |
% | ||
For the next $75.7 billion |
0.1350 |
|||
For the next $200 billion |
0.1325 |
|||
For eligible assets over $400 billion |
0.1300 |
|||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen-branded closed-end funds and Nuveen branded open-end funds (“Nuveen Mutual Funds”). Except as described below, eligible assets include the assets of all Nuveen-branded closed-end funds and Nuveen Mutual Funds organized in the United States. Eligible assets do not include the net assets of: Nuveen fund-of-funds, Nuveen money market funds, Nuveen index funds, Nuveen Large Cap Responsible Equity Fund or Nuveen Life Large Cap Responsible Equity Fund. In addition, eligible assets include a fixed percentage of the aggregate net assets of the active equity and fixed income Nuveen Mutual Funds advised by the Adviser’s affiliate, Teachers Advisors, LLC (except those identified above). The fixed percentage will increase annually until May 1, 2033, at which time eligible assets will include all of the aggregate net assets of the active equity and fixed income Nuveen Mutual Funds advised by Teachers Advisors, LLC (except those identified above). Eligible assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. |
As of the end of the current fiscal period, the annual complex-level fee for each Fund was as follows:
Fund |
Complex-Level Fee |
|||
NMAI |
0.1560 |
% | ||
JRI |
0.1560 |
|||
JRS |
0.1560 |
|||
Other Transactions with Affiliates:
Fund |
Value |
|||
NMAI |
$ |
60,834 |
||
JRI |
386,660 |
|||
JRS |
— |
|||
The Funds are permitted to purchase or sell securities from or to certain other funds or accounts managed by the Sub-Adviser or by an affiliate of the Adviser (each an, “Affiliated Entity”) under specified conditions outlined in procedures adopted by the Board (“cross-trade”). These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to an Affiliated Entity by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 under the 1940 Act. These transactions are effected at the current market price (as provided by an independent pricing service) without incurring broker commissions. During the current fiscal period, the Funds engaged in the following security transactions with affiliated entities:
92
Fund |
Purchases |
Sales |
Realized Gain (Loss) |
|||||||||
NMAI |
$ |
21,825,347 |
$ |
219,209 |
$ (45,397 |
) | ||||||
JRI |
— |
— |
— |
|||||||||
JRS |
— |
— |
— |
|||||||||
9. |
Fund Leverage |
Borrowings:
Fund |
Commitment Amount |
|||
NMAI |
$ |
215,000,000 |
||
JRI |
200,000,000 |
|||
JRS |
150,000,000 |
|||
As of the end of the current fiscal period, each Fund’s outstanding balance on its Borrowings was as follows:
Fund |
Outstanding balance on Borrowings |
|||
NMAI |
$ |
174,786,000 |
||
JRI |
170,945,000 |
|||
JRS |
102,400,000 |
|||
For NMAI interest is charged on the Borrowings at a rate per annum equal to OBFR (Overnight Bank Funding Rate) plus a spread that is determined by a portion of the underlying collateral pledged to secure the amount borrowed. The Fund is charged an undrawn fee of 0.50% per annum if the undrawn portion of the Borrowings on that day is more than 20% of the maximum commitment amount, however this fee was waived during the current fiscal period.
For JRI interest is charged on these Borrowings at Daily SOFR plus 0.600% per annum on the amounts borrowed. For JRS interest is charged on these Borrowings at 1-Month Term SOFR plus 0.610% per annum on the amounts borrowed.
During the current fiscal period, the average daily balance outstanding and average annual interest rate on each Fund’s Borrowings were as follows:
Fund |
Utilization Period (Days Outstanding) |
Average Daily Balance Outstanding |
Average Annual Interest Rate |
|||||||||
NMAI |
365 |
$ |
148,105,452 |
4.77 |
% | |||||||
JRI |
365 |
173,136,781 |
4.94 |
|||||||||
JRS |
365 |
105,057,534 |
4.89 |
|||||||||
Other Borrowings Information for the Funds:
Borrowings outstanding are recognized as “Borrowings” on the Statement of Assets and Liabilities. Interest expense and other fees incurred on the drawn amount and undrawn balance are recognized as a component of “Interest expense” on the Statement of Operations.
Rehypothecation:
93
Notes to Financial Statements
(continued)
The Fund also has the right to apply and set-off an amount equal to one-hundred percent (100%) of the then-current fair market value of such Pledged Collateral against the current Borrowings under the Side Letter in the event that the prime brokerage lender fails to timely return the Pledged Collateral and in certain other circumstances. In such circumstances, however, the Fund may not be able to obtain replacement financing required to purchase replacement securities and, consequently, the Fund income generating potential may decrease. Even if the Fund is able to obtain replacement financing, it might not be able to purchase replacement securities at favorable prices.
The Fund will receive a fee in connection with the Hypothecated Securities (“Rehypothecation Fees”) in addition to any principal, interest, dividends and other distributions paid on the Hypothecated Securities.
As of the end of the current fiscal period, NMAI had Hypothecated Securities as follows:
NMAI |
||||
| |
||||
| Hypothecated Securities |
$ |
153,946,639 |
||
| |
||||
NMAI earns Rehypothecation Fees, which are recognized as “Rehypothecation income” on the Statement of Operations. During the current fiscal period, the Rehypothecation Fees earned by NMAI was as follows:
NMAI |
||||
| |
||||
| Rehypothecation Fees |
$ |
48,092 |
||
| |
||||
Reverse Repurchase Agreements:
During the current fiscal period, NMAI utilized reverse repurchase agreements as a means of leverage. Each Fund may enter into a reverse repurchase agreement with brokers, dealers, banks or other financial institutions that have been determined by the Adviser to be creditworthy. In a reverse repurchase agreement, the Fund sells to the counterparty a security that it holds with a contemporaneous agreement to repurchase the same security at an agreed-upon price and date, reflecting the interest rate effective for the term of the agreement. It may also be viewed as the borrowing of money by the Fund. Cash received in exchange for securities delivered, plus accrued interest payments to be made by the Fund to a counterparty, are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Fund to counterparties are recognized as a component of “Interest expense” on the Statement of Operations.
In a reverse repurchase agreement, the Fund retains the risk of loss associated with the sold security. Reverse repurchase agreements also involve the risk that the purchaser fails to return the securities as agreed upon, files for bankruptcy or becomes insolvent. Upon a bankruptcy or insolvency of a counterparty, the Fund is considered to be an unsecured creditor with respect to excess collateral and as such the return of excess collateral may be delayed.
As of the end of the current fiscal period, the Fund’s outstanding balances on its reverse repurchase agreements were as follows:
Fund |
Counterparty |
Rate |
Principal Amount |
Maturity |
Value |
Value and Accrued Interest |
||||||||||||||||
| |
||||||||||||||||||||||
| NMAI |
BNP Paribas SA |
4.18 |
% |
$ |
(21,225,000 |
) |
35-day Evergreen |
$ |
(21,225,000 |
) |
$ |
(21,367,603 |
) | |||||||||
| |
||||||||||||||||||||||
| NMAI |
Royal Bank of Canada |
4.05 |
% |
(13,753,000 |
) |
On-Demand |
(13,753,000 |
) |
(13,754,547 |
) | ||||||||||||
| |
||||||||||||||||||||||
| Total |
$ |
(34,978,000 |
) |
$ |
(34,978,000 |
) |
$ |
(35,122,150 |
) | |||||||||||||
| |
||||||||||||||||||||||
During the current fiscal period, the average daily balance outstanding and average annual interest rate on the Funds’ reverse repurchase agreements were as follows:
Fund |
Utilization Period (Days Outstanding) |
Average Daily Balance Outstanding |
Weighted Average Interest rate |
|||||||||
| |
||||||||||||
| NMAI |
365 |
$ |
(45,941,642 |
) |
4.13 |
% | ||||||
| |
||||||||||||
94
The following table presents the reverse repurchase agreements subject to netting agreements and the collateral delivered related to those reverse repurchase agreements.
Fund |
Counterparty |
Reverse Repurchase Agreements* |
Collateral Pledged to Counterparty |
|||||||
| |
||||||||||
NMAI |
BNP Paribas SA |
$ (21,367,603) |
$ |
23,252,704 |
||||||
| |
||||||||||
NMAI |
RBC Capital Markets, LLC |
(13,754,547 |
) |
14,549,943 |
||||||
| |
||||||||||
Total |
(35,122,150 |
) |
37,802,647 |
|||||||
| |
||||||||||
* Represents gross value and accrued interest for the counterparty as reported in the preceding table.
Inter-Fund Lending Program:
The SEC has granted an exemptive order permitting registered open-end and closed-end Nuveen funds to participate in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting in an unanticipated cash shortfall) (the “Inter-Fund Program”). The closed-end Nuveen funds, including the Funds covered by this shareholder report, will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including, among other things, the requirements that (1) no fund may borrow or lend money through the Inter-Fund Program unless it receives a more favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no fund may borrow on an unsecured basis through the Inter-Fund Program unless the fund’s outstanding borrowings from all sources immediately after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing fund has a secured borrowing outstanding from any other lender, including but not limited to another fund, the inter-fund loan must be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after an inter-fund borrowing would be greater than 10% of its total assets, the fund may borrow through the inter-fund loan on a secured basis only; (4) no fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15% of its net assets at the time of the loan; (5) a fund’s inter-fund loans to any one fund shall not exceed 5% of the lending fund’s net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending fund and may be repaid on any day by a borrowing fund. In addition, a Nuveen fund may participate in the Inter-Fund Program only if and to the extent that such participation is consistent with the fund’s investment objective and investment policies. The Board is responsible for overseeing the Inter-Fund Program. The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
During the current fiscal period, none of the Funds covered by this shareholder report have entered into any inter-fund loan activity.
10. Subsequent Events
JRI – Rights Offering:
On January 15, 2026, the Board approved the terms of the issuance of Rights to the holders of the Fund’s Common Shares as of February 6, 2026 (the “Record Date”). Holders of Rights will be entitled to subscribe for additional Common shares (the “Offer”) at a discount to the market price of the Common Shares. After considering a number of factors, including potential benefits and costs, the Board and the Adviser, determined that the Offer will benefit both the Fund and its common shareholders and increase the assets of the Fund available to take advantage of existing investment opportunities, consistent with the Fund’s investment objective of providing shareholders with a high level of current income and long-term capital appreciation.
Certain key terms of the Offer include:
• Holders of Common Shares on the Record Date (“Record Date Shareholders”) will receive one Right for each outstanding Common Share owned on the Record Date. The Rights entitle the holders to purchase one new Common Share for every four Rights held (1-for-4).
• The subscription price per Common Share (the “Subscription Price”) will be determined based upon a formula equal to 95% of the average of the last reported sales price of the Common Shares on the NYSE on the Expiration Date and each of the four preceding trading days (the “Formula Price”). If, however, the Formula Price is less than 90% of the net asset value per Common Share at the close of trading on the NYSE on the Expiration Date, then the Subscription Price will be 90% of the Fund’s net asset value per Common Share at the close of trading on the NYSE on the Expiration Date. The Rights offering will expire at 5:00 p.m., Eastern time, on March 9, 2026 (the “Expiration Date”).
• Record Date Shareholders who fully exercise all Rights issued to them can subscribe, subject to certain limitations and allotment, for any additional Common Shares which were not subscribed for by other holders of Rights at the Subscription Price, subject to the right of the Board to eliminate this over-subscription privilege. Investors who are not Record Date Shareholders but who otherwise acquire Rights in the secondary market are not entitled to participate in the over-subscription privilege. If these requests exceed available Common Shares, they will be allocated pro rata among those fully exercising Record Date Shareholders who over-subscribe based on the number of Rights originally issued to them by the Fund.
95
Notes to Financial Statements
(continued)
• Rights are transferable and were admitted for trading on the NYSE under the symbol “JRI RTWI” initially trading “when-issued” on February 5, 2026. The Rights then began trading with regular settlement under the symbol “JRI RT” on February 10, 2026, and will cease trading at the close on March 6, 2026, one day before the Offer’s Expiration Date. During this time, Record Date Shareholders may also choose to sell their Rights.
More details about the Fund’s rights offering are available on www.nuveen.com/cef.
96
Shareholder Update
(Unaudited)
CURRENT INVESTMENT OBJECTIVES, INVESTMENT POLICIES AND PRINCIPAL RISKS OF THE FUND
NUVEEN MULTI-ASSET INCOME FUND (NMAI)
Investment Objective
The Fund’s investment objective is to provide total return through high current income and capital appreciation.
Investment Policies
Under normal circumstances, the Fund will dynamically invest in a portfolio of equity and debt securities of issuers located around the world. This dynamic investment strategy uses a risk-based framework in which any amount can be allocated to an asset-class at any time. The Fund may invest in equity and debt securities of any type. The Fund may use derivatives for a variety of reasons, including but not limited to, adjusting its exposures to markets, sectors, asset classes and securities, and may utilize derivatives of any type.
As part of its investment strategy, the Fund may employ an options strategy whereby the Fund sells (writes) call options on a percentage of the market value of the Fund’s equity portfolio. The Fund is not required to allocate its investments among asset classes, issuer jurisdiction, or any other investment parameter in any fixed proportion except as specifically described herein.
The Fund will employ a dynamic asset allocation strategy in seeking to achieve the Fund’s investment objective. Nuveen Asset Management, LLC (“Nuveen Asset Management”) will implement the Fund’s dynamic multi-asset income strategy by allocating the Fund’s assets among equity and debt investments.
The relative allocations of the Fund’s Managed Assets (as defined below) for investment between equity and debt securities, and relative allocations to the different types of equity and income strategies, will vary from time to time consistent with the Fund’s investment objective.
Under normal market conditions:
| • | The Fund may invest in equity securities of any type and across various investment styles (e.g., growth- or value-oriented styles), sectors, market capitalizations (e.g., large-, mid-, and small-cap) and geographic regions throughout the world (including the United States (“U.S.”), non-U.S. developed markets, and emerging markets) without limit. |
| • | The Fund may invest in debt securities of any type without limit. The Fund may invest in debt securities paying a fixed or fluctuating rate of interest, and with any maturity or duration. The Fund may invest in debt securities across various geographic regions throughout the world (including the U.S., non-U.S. developed markets, and emerging markets) without limit. |
| • | The Fund may invest in debt securities of any rating (including below-investment-grade debt securities, commonly known as “high yield” or “junk” bonds), distressed securities, and in debt securities that are unrated. |
| • | The Acquiring Fund may invest in the securities of companies of any market capitalization. |
| • | The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the Securities Act of 1933 Act, as amended (the “1933 Act”), and repurchase agreements with maturities in excess of seven days. |
| • | The Fund may invest in inverse floating rate securities. |
The foregoing policies apply only at the time of any new investment.
“Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.
Approving Changes in Investment Policies
The Board of Trustees of the Fund may change the policies described above without a shareholder vote.
Portfolio Contents
The Fund may invest in equity securities of any type and across various investment styles (e.g., growth- or value-oriented styles), sectors, market capitalizations (e.g., large-, mid-, and small-cap) and geographic regions throughout the world (including the U.S. and emerging markets) without limit. These securities may include, but are not limited to, common stock, preferred stock, securities convertible into common, depositary receipts, stock, master-limited partnership (“MLPs”) and other partnership interests, real estate investment trusts (“REITs”), rights and warrants, or securities or other instruments whose price is linked to (or derived from) the value of common stock.
97
Shareholder Update
(continued)
Common stocks generally represent an ownership interest in an issuer, without preference over any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks are entitled to the income and increase in the value of the assets and business of the issuer after all its debt obligations and obligations to preferred stockholders are satisfied. Common stocks generally have voting rights. Common stocks fluctuate in price in response to many factors, including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.
Equity securities in which the Fund may invest include MLPs. An MLP is an entity, most commonly a limited partnership, that is taxed as a partnership, publicly traded and listed on a national securities exchange. Holders of common units of MLPs typically have limited control and limited voting rights as compared to holders of a corporation’s common shares.
The Fund may invest in all types of preferred securities, including both traditional preferred securities and non-traditional preferred securities. Traditional preferred securities are generally equity securities of the issuer that have priority over the issuer’s common shares as to the payment of dividends (i.e., the issuer cannot pay dividends on its common shares until the dividends on the preferred shares are current) and as to the payout of proceeds of a bankruptcy or other liquidation, but are subordinate to an issuer’s senior debt and junior debt as to both types of payments. Additionally, in a bankruptcy or other liquidation, traditional preferred securities are generally subordinate to an issuer’s trade creditors and other general obligations. Traditional preferred securities may be perpetual or have a term, and typically have a fixed liquidation (or “par”) value.
The Fund may invest in contingent capital securities (sometimes referred to as “CoCos”). CoCos are hybrid securities, issued primarily by non-U.S. financial institutions, which have loss absorption mechanisms benefitting the issuer built into their terms. CoCos generally provide for mandatory conversion into the common stock of the issuer or a write-down of the principal amount or value of the CoCos upon the occurrence of certain triggers linked to regulatory capital thresholds. In addition, they may provide for mandatory conversion or a principal write-down upon the occurrence of certain events such as regulatory actions calling into question the issuing banking institution’s continued viability as a going-concern. Equity conversion or principal write-down features are tailored to the issuer and its regulatory requirements and, unlike traditional convertible securities, conversions are not voluntary.
The Fund may invest in REITs. REITs are publicly traded corporations or trusts that specialize in acquiring, holding, and managing residential, commercial or industrial real estate. A REIT is not taxed at the entity level on income distributed to its shareholders or unitholders if it distributes to shareholders or unitholders at least 90% of its taxable income for each taxable year and complies with regulatory requirements relating to its organization, ownership, assets and income.
The Fund may invest in equity securities of special purpose acquisition companies (“SPACs”). Also known as a “blank check company,” a SPAC is a company with no commercial operations that is formed solely to raise capital from investors for the purpose of acquiring one or more existing private companies. SPACs often have pre-determined time frames to make an acquisition (typically two years), or the SPAC will liquidate.
The Fund may invest in debt securities of any type without limit, including but not limited to debt securities of the U.S. government and other governments throughout the world (including emerging markets) as well as their agencies and instrumentalities and government-sponsored enterprises, municipal securities, domestic and foreign corporate debt obligations, convertible bonds, municipal bonds, structured notes, credit-linked notes, loan assignments and participations, repurchase agreements, residential and commercial mortgage-backed securities, asset-backed securities, debt obligations of MLPs, and securities issued or guaranteed by certain international organizations such as the World Bank.
The Fund may invest in zero coupon bonds. A zero coupon bond is a bond that typically does not pay interest for the entire life of the obligation or for an initial period after the issuance of the obligation.
The Fund may invest in payment-in-kind securities (“PIKs”). PIKs pay dividends or interest in the form of additional securities of the issuer, rather than in cash. Each of these instruments is typically issued and traded at a deep discount from its face amount. The amount of the discount varies depending on such factors as the time remaining until maturity of the securities, prevailing interest rates, the liquidity of the security and the perceived credit quality of the issuer.
The debt obligations in which the Fund may invest may have variable, floating, or fixed interest rates. Variable rate securities provide for periodic adjustments in the interest rate. Floating rate securities are generally offered at an initial interest rate which is at or above prevailing market rates. The interest rate paid on floating rate securities is then reset periodically (commonly every 90 days) to an increment over some predetermined interest rate index. Commonly utilized indices include the three-month Treasury bill rate, the 180-day Treasury bill rate, the prime rate of a bank, the commercial paper rates, or the longer-term rates on U.S. Treasury securities. Variable and floating rate securities are relatively long-term instruments that often carry demand features permitting the holder to demand payment of principal at any time or at specified intervals prior to maturity plus accrued interest. In order to most effectively use these securities, the Fund must correctly assess probable movements in interest rates.
The Fund may invest in debt securities paying a fixed or fluctuating rate of interest, including senior loans and secured and unsecured junior loans, and with any maturity or duration.
The Fund may invest in debt securities across various geographic regions throughout the world (including the U.S., non-U.S. developed markets, and emerging markets) without limit.
The Fund may invest in foreign securities payable in either U.S. dollars or foreign currencies. These securities may include securities issued or guaranteed by (i) the Government of Canada, any Canadian Province or any instrumentality and political subdivision thereof; (ii) any other foreign government agency or instrumentality; (iii) foreign subsidiaries of U.S. corporations; and (iv) other foreign issuers.
98
The Fund has no geographic limits on where it may invest, and therefore may invest in the securities of corporate and governmental issuers in both developed and emerging markets around the world. The Fund may emphasize foreign securities when the Fund’s applicable sub-adviser expects these investments to outperform U.S. securities. In addition to investing in foreign securities, the Fund may actively manage its exposure to foreign currencies through the use of forward currency contracts and other currency derivatives.
The Fund will classify an issuer of a security as being a U.S. or non-U.S. issuer based on the determination of an unaffiliated, recognized financial data provider. Such determinations are based on a number of criteria, such as the issuer’s country of domicile, the primary exchange on which the security predominately trades, the location from which the majority of the issuer’s revenue comes, and the issuer’s reporting currency. Furthermore, a country is considered to be an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies and the potential for rapid economic growth. The Fund considers a country an emerging market country based on the determination of an international organization, such as the International Monetary Fund (“IMF”), or an unaffiliated, recognized financial data provider.
The Fund may invest in debt securities of any rating (including below-investment-grade debt securities, commonly known as “high yield” or “junk” bonds), distressed securities, and in debt securities that are unrated. The Fund may invest in junk bonds and distressed securities when the Fund’s applicable sub-adviser believes that they will provide an attractive total return, relative to their risk, as compared to higher quality debt securities. The Fund may invest in distressed securities when the Fund’s applicable sub-adviser believes they offer significant potential for higher returns or can be exchanged for other securities that offer this potential.
The Fund may invest in debt securities of governmental issuers in all countries, including emerging market countries. These debt securities may include: debt securities issued or guaranteed by governments and governmental agencies or instrumentalities; debt securities issued by government owned, controlled or sponsored entities; interests in entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued by any of the above issuers; Brady Bonds, which are debt securities issued under the framework of the Brady Plan as a means for debtor nations to restructure their outstanding external indebtedness; participations in loans between governments and financial institutions; or debt securities issued by supranational entities such as the World Bank or the European Economic Community. A supranational entity is a bank, commission or company established or financially supported by the national governments of one or more countries to promote reconstruction or development.
The Fund may invest in U.S. dollar-denominated “Brady Bonds.” Brady Bonds are created through the exchange of existing commercial bank loans to public and private entities in certain emerging markets for new obligations in connection with debt restructurings. These foreign debt obligations, which may be fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to repayment of principal at maturity by U.S. Treasury zero-coupon obligations that have the same maturity as the Brady Bonds. Brady Bonds can be viewed as having three or four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity.
The Fund may invest in convertible securities, which may include convertible debt, convertible preferred stock, synthetic convertible securities and may also include secured and unsecured debt, based upon the judgment of the Fund’s applicable sub-adviser. Convertible securities may pay interest or dividends that are based on a fixed or floating rate. A convertible security is a preferred stock, warrant or other security that may be converted into or exchanged for a prescribed amount of common stock or other security of the same or a different issuer or into cash within a particular period of time at a specified price or formula.
The Fund may invest in corporate debt securities. Corporate debt securities are bonds, senior loans and notes issued by corporations or other business entities.
Corporate debt securities are fully taxable debt obligations that fund capital improvements, expansions, debt refinancing or acquisitions that require more capital than would ordinarily be available from a single lender. Investors in corporate debt securities lend money to the issuing corporation in exchange for interest payments and repayment of the principal at a set maturity date. Rates on corporate debt securities are set according to prevailing interest rates at the time of the issue, the credit rating of the issuer, the length of the maturity and other terms of the security, such as a call feature. Corporate debt securities are subject to the risk of an issuer’s inability to meet principal and interest payments on the obligations and may also be subject to price volatility due to such factors as market interest rates, market perception of the creditworthiness of the issuer and general market liquidity. In addition, corporate restructurings, such as mergers, leveraged buyouts, takeovers or similar corporate transactions are often financed by an increase in a corporate issuer’s debt securities. As a result of the added debt burden, the credit quality and market value of an issuer’s existing debt securities may decline significantly.
The Fund may invest in exchange-traded notes (“ETNs”). ETNs are a type of senior, unsecured, unsubordinated debt security issued by financial institutions that combine aspects of both bonds and exchange-traded fund (“ETFs”). An ETN’s returns are based on the performance of a market index minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an ETF, an ETN has a maturity date, at which time the issuer will pay a return linked to the performance of the market index to which the ETN is linked minus certain fees.
The Fund may invest in the securities of companies of any market capitalization. The Fund will generally seek diversification across markets and industries.
The Fund may invest in senior loans. Senior loans typically hold the most senior position in the capital structure of a business entity, are typically secured with specific collateral and have a claim on the assets and/or stock of the issuer that is senior to that held by subordinated debt holders and stockholders of the issuer.
Senior loans generally include: (i) senior loans made by banks or other financial institutions to U.S. and non-U.S. corporations, partnerships and other business entities (each a “Borrower” and, collectively, “Borrowers”), (ii) assignments of such interests in senior loans, or (iii) participation interests in senior loans. Generally, an assignment is the actual sale of the loan, in whole or in part. A participation, on the other hand, means that the original
99
Shareholder Update
(continued)
lender maintains ownership over the loan and the participant has only a contract right against the original lender, not a credit relationship with the Borrower. Senior loans typically hold the most senior position in the capital structure of a Borrower, are typically secured with specific collateral and have a claim on the assets and/or stock of the Borrower that is senior to that held by subordinated debt holders and stockholders of the Borrower. The capital structure of a Borrower may include senior loans, senior and junior subordinated debt, preferred stock and common stock issued by the Borrower, typically in descending order of seniority with respect to claims on the Borrower’s assets. The proceeds of senior loans primarily are used by Borrowers to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, refinancings, internal growth and for other corporate purposes. A senior loan is typically originated, negotiated and structured by a U.S. or non-U.S. commercial bank, insurance company, finance company or other financial institution (“Agent”) for a lending syndicate of financial institutions which typically includes the Agent (“Lenders”). The Agent typically administers and enforces the senior loan on behalf of the other Lenders in the syndicate. In addition, an institution, typically but not always the Agent, holds any collateral on behalf of the Lenders. The Fund normally will rely primarily on the Agent to collect principal of and interest on a senior loan. Also, the Fund usually will rely on the Agent to monitor compliance by the Borrower with the restrictive covenants in a loan agreement.
Senior loans typically have rates of interest that are redetermined either daily, monthly, quarterly or semi-annually by reference to a base lending rate plus a premium or credit spread. These base lending rates are primarily the prime rate offered by one or more major U.S. banks and the certificate of deposit rate or other base lending rates used by commercial lenders. The base rate for senior loans are generally based on the Secured Overnight Financing Rate (“SOFR”), a U.S. bank’s prime or base rate, the overnight federal funds rate or another rate. As adjustable rate loans, the frequency of how often a senior loan resets its interest rate will impact how closely such senior loans track current market interest rates.
The Fund may purchase participation interests in the original syndicate making senior loans. Loan participation interests typically represent direct participations in a loan to a corporate Borrower, and generally are offered by banks or other financial institutions or lending syndicates. The Fund may participate in such syndications, or can buy part of a senior loan, becoming a Lender. When purchasing a participation interest, the Fund assumes the credit risk associated with the corporate Borrower and may assume the credit risk associated with an interposed bank or other financial intermediary. The participation interests in which the Fund may invest may not be rated by any nationally recognized statistical rating organization.
The Fund may invest in second lien loans and unsecured loans. Such loans are made by public and private corporations and other non-governmental Borrowers for a variety of purposes. As in the case of senior loans, the Fund may purchase interests in second lien loans and unsecured loans through assignments or participations. Second lien loans have similar characteristics as senior loans except that such interests are junior in priority to debt secured with a first lien. Second lien loans are second in priority of payment to one or more senior loans of the related Borrower and are typically secured by a second priority security interest or lien to or on specified collateral securing the Borrower’s obligation under the indebtedness. They typically have similar protections and rights as senior loans. Second lien loans are not (and by their terms cannot become) subordinate in priority of payment to any obligation of the related Borrower other than senior loans of such Borrower. Second lien loans may feature fixed or floating rate interest payments. Because second lien loans are junior to senior loans, they present a greater degree of investment risk but often pay interest at higher rates reflecting this additional risk. In addition, second lien loans of below investment grade quality share many of the risk characteristics of other below investment grade debt instruments.
Unsecured loans generally have lower priority in right of payment compared to holders of secured interests of the Borrower. Unsecured loans are not secured by a security interest or lien to or on specified collateral securing the Borrower’s obligation under the indebtedness. Unsecured loans by their terms may be or may become subordinate in right of payment to other obligations of the Borrower, including senior loans, second lien loans and other interests. Unsecured loans may have fixed or adjustable floating rate interest payments. Because unsecured loans are subordinate to senior loans and other secured debt of the Borrower, they present a greater degree of investment risk but often pay interest at higher rates reflecting this additional risk. Such investments generally are of below investment grade quality. Unsecured loans of below investment grade quality share many of the same risks of other below investment grade debt instruments.
The Fund may invest in subordinated loans that are primarily unsecured and that provide for relatively high, adjustable rates of interest, providing the Fund with significant current interest income. The subordinated loans in which the Fund may invest may have interest-only payments in the early years, with amortization of principal deferred to the later years of the subordinated loans. In some cases, the Fund may acquire subordinated loans that, by their terms, convert into equity or additional debt instruments or defer payments of interest for the first few years after issuance. Also, in some cases the subordinated loans in which the Fund may invest will be collateralized by a subordinated lien on some or all of the assets of the Borrower.
The Fund may invest in asset-backed securities (“ABS”). ABS are securities that are secured or “backed” by pools of various types of assets on which cash payments are due at fixed intervals over set periods of time. ABS are created in a process called securitization.
In a securitization transaction, an originator of loans or an owner of accounts receivables of a certain type of asset class sells such underlying assets in a “true sale” to a special purpose entity, so that there is no recourse to such originator or owner. Payments of principal and interest on asset-backed securities typically are tied to payments made on the pool of underlying assets in the related securitization. Such payments on the underlying assets are effectively “passed through” to the asset-backed security holders on a monthly or other regular, periodic basis. The level of seniority of a particular asset-backed security will determine the priority in which the holder of such asset-backed security is paid, relative to other security holders and parties in such securitization.
The Fund may invest in mortgage-backed securities (“MBS”). MBS are structured debt obligations collateralized by pools of commercial or residential mortgages. Pools of mortgage loans and mortgage-related loans, such as mezzanine loans, are assembled into pools of assets that secure or back securities sold to investors by various governmental, government-related and private organizations. MBS in which the Fund may invest include those with fixed, floating or variable interest rates, those with interest rates that change based on a specified index of interest rates and those with interest rates that change inversely to changes in interest rates, as well as those that do not bear interest.
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The Fund may invest in residential mortgage-backed securities (“RMBS”). RMBS are securities with payments which depend (except for rights or other assets designed to assure the servicing or timely distribution of proceeds to holders of such securities) primarily on the cash flow from residential mortgage loans made to borrowers that are secured on a first priority basis or second priority basis, subject to permitted liens, easements and other encumbrances by residential real estate (one-to four-family properties) the proceeds of which are used to purchase real estate and purchase or construct dwellings thereon (or to refinance indebtedness previously so used). Residential mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan secured by residential property is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair borrowers’ abilities to repay their loans.
The Fund may invest in commercial mortgage-backed securities (“CMBS”). CMBS generally are multi-class debt or pass-through certificates secured or backed by mortgage loans on commercial properties. CMBS generally are structured to provide protection to the senior class investors against potential losses on the underlying mortgage loans. This protection generally is provided by having the holders of subordinated classes of securities take the first loss if there are defaults on the underlying commercial mortgage loans. Other protection, which may benefit all of the classes or particular classes, may include issuer guarantees, reserve funds, cross-collateralization and over-collateralization. The Fund may invest in CMBS issued or sponsored by commercial banks, savings and loan institutions, mortgage bankers, private mortgage insurance companies and other non-governmental issuers. CMBS have no governmental guarantee.
The Fund may purchase event-linked bonds or “catastrophe bonds.” Event-linked bonds are asset-backed securities generally issued by special purpose vehicles organized by insurance companies, with interest payments tied to the insurance losses of casualty insurance contracts. Large insurance losses, such as those caused by a trigger event, such as a hurricane, earthquake or other physical or weather related phenomenon, will reduce the interest payments and, accordingly, the Fund may lose a portion or all of its principal invested in the bond or suffer a reduction in credited interest. Small losses will lead to above-market interest payments. Generally, event-linked bonds are issued as Rule 144A securities (i.e., securities which are not registered under the Securities Act of 1933, as amended (the “1933 Act”), but which can be sold to certain institutional buyers in accordance with Rule 144A under the Securities Act). If a trigger event causes losses exceeding a specific amount in the geographic region and time period specified in a bond, liability under the terms of the bond is limited to the principal and accrued interest of the bond. If no trigger event occurs, the Fund will recover its principal plus interest. Often, event-linked bonds provide for extensions of maturity that are mandatory, or optional at the discretion of the issuer, in order to process and audit loss claims in those cases where a trigger event has, or possibly has, occurred. An extension of maturity may increase volatility.
The Fund may invest in Collateralized Debt Obligations (“CDOs”) and Collateralized Loan Obligations (“CLOs”). CDOs are debt obligations typically issued by a private special-purpose entity and collateralized principally by debt securities, including, for example, high yield, high-risk bonds, structured finance securities including ABS, mortgage-backed securities and REITs. CLOs are similar to CDOs, but are typically collateralized principally by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade (commonly known as “high yield” or “junk” bonds). The special purpose entity typically issues one or more classes (sometimes referred to as “tranches”) of rated debt securities, one or more unrated classes of debt securities that are generally treated as equity interests, and a residual equity interest. The tranches of CDOs and CLOs typically have different interest rates, projected weighted average lives and ratings, with the higher rated tranches paying lower interest rates. One or more forms of credit enhancement are almost always necessary in a CDO/CLO structure to obtain the desired credit ratings for the most highly rated debt securities issued by a CDO or CLO. The types of credit enhancement used include “internal” credit enhancement provided by the underlying assets themselves, such as subordination, excess spread and cash collateral accounts, hedges provided by interest rate swaps, and “external” credit enhancement provided by third parties, principally financial guaranty insurance issued by monoline insurers. Despite this credit enhancement, CDO and CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and the disappearance of lower rated protecting tranches, market anticipation of defaults, as well as aversion to CDO and CLO securities as a class.
The Fund may invest in municipal securities. Municipal securities include municipal bonds, notes, securities issued to finance and refinance public projects, certificates of participation, variable rate demand obligations, lease obligations, municipal notes, pre-refunded municipal bonds, private activity bonds, securities issued by tender option bond trusts, including inverse floating rate securities, and other forms of municipal bonds and securities, and other related instruments that create exposure to municipal bonds, notes and securities that provide for the payment of interest income that is exempt from regular U.S. federal income tax.
Municipal securities are debt obligations generally issued by states, cities and local authorities and certain possessions and territories of the United States (such as Puerto Rico and Guam) to finance or refinance public purpose projects such as roads, schools, and water supply systems.
The Fund may invest in tobacco settlement bonds, which are municipal securities that are backed solely by expected revenues to be derived from lawsuits involving tobacco related deaths and illnesses which were settled between certain states and American tobacco companies. Tobacco settlement bonds are secured by an issuing state’s proportionate share in the Master Settlement Agreement.
The Fund may enter into mortgage dollar rolls in which the Fund sells mortgage securities for delivery in the current month, realizing a gain (loss), and simultaneously contracts to repurchase similar securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. The difference between the sales proceeds and the repurchase price is recorded as a realized gain or loss.
The Fund’s investments in foreign securities may include investment in depositary receipts, including American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”) and Global Depositary Receipts (“GDRs”). U.S. dollar-denominated ADRs, which are traded in the United States on exchanges or over-the-counter, are issued by domestic banks. ADRs represent the right to receive securities of foreign issuers deposited in a domestic bank or a correspondent bank. In general, there is a large, liquid market in the United States for many ADRs. The information available for ADRs is subject to the accounting, auditing and financial reporting standards of the domestic market or exchange on which they are traded, which standards are more uniform and more exacting than those to which many foreign issuers may be subject.
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The Fund may also invest in EDRs, GDRs and in other similar instruments representing securities of foreign companies. EDRs and GDRs are securities that are typically issued by foreign banks or foreign trust companies, although U.S. banks or U.S. trust companies may issue them. EDRs and GDRs are structured similarly to the arrangements of ADRs. EDRs, in bearer form, are designed for use in European securities markets and are not necessarily denominated in the currency of the underlying security.
The Fund may invest in inflation protected securities. Inflation protected securities are debt securities designed to provide protection against the negative effects of inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of the bond. Most other issuers pay out the inflation accruals as part of a semiannual coupon.
The Fund may invest a portion of their assets in securities of companies offering shares in initial public offerings (“IPOs”). IPOs may have a magnified performance impact on the Fund with a small asset base. The impact of IPOs on the Fund’s performance likely will decrease as the Fund’s asset size increases, which could reduce the Fund’s total returns. IPOs may not be consistently available to the Fund for investing, particularly as the Fund’s asset base grows. Because IPO shares frequently are volatile in price, the Fund may hold IPO shares for a very short period of time.
The Fund may invest in participatory notes issued by banks or broker-dealers that are designed to replicate the performance of certain non-U.S. companies traded on a non-U.S. exchange. Participatory notes are a type of equity-linked derivative which generally are traded over-the-counter.
The Fund may invest in debentures the interest on which may be paid in other securities rather than cash (“PIKs”) or may be delayed (“delayed interest securities”).
The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.
The Fund may hold a portion of its assets in cash or cash equivalents, including foreign cash equivalents or foreign bank deposits.
As part of its investment strategy, the Fund may employ an options strategy whereby the Fund sells (writes) call options on a varying percentage of the market value of the Fund’s equity portfolio. The Fund may also buy calls, buy puts, and sell puts as a secondary emphasis of the options strategy. This may also include certain uncovered options positions. The options may be on indexes, custom baskets of securities and individual securities.
The Fund’s options strategy may include options traded in the over-the-counter (“OTC”) market and exchange-traded options.
An option contract is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the reference instrument underlying the option (or the cash value of the index) at a specified exercise price at any time during the term of the option. The writer of an option on a security has the obligation upon exercise of the option to deliver the reference instrument (or the cash) upon payment of the exercise price or to pay the exercise price upon delivery of the reference instrument (or the cash). Upon exercise of an index option, the writer of an option on an index is obligated to pay the difference between the cash value of the index and the exercise price multiplied by the specified multiplier for the index option. Options may be “covered,” meaning that the party required to deliver the reference instrument if the option is exercised owns that instrument (or has set aside sufficient assets to meet its obligation to deliver the instrument). Options may be listed on an exchange or traded in the OTC market. In general, exchange-traded options have standardized exercise prices and expiration dates and may require the parties to post margin against their obligations, and the performance of the parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.
The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days. Illiquid securities may also include securities legally restricted as to resale, such as securities issued pursuant to Section 4(a)(2) of the 1933 Act.
The Fund may purchase equity securities in a private placement that are issued by issuers who have outstanding, publicly-traded equity securities of the same class (“private investments in public equity” or “PIPES”). Shares in PIPES generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restricted period can last many months. Until the public registration process is completed, PIPES are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPES to be illiquid during this time.
The Fund may use certain derivative instruments in pursuit of its investment objective. Such instruments include financial futures contracts, forward contracts, swap contracts (including interest rate, total return and credit default swaps), options on financial futures, options on swap contracts or other derivative instruments. The credit default swaps in which the Fund may invest include credit default swap indexes and single-name credit default swaps. A credit default swap index is a portfolio of credit default swaps with similar characteristics, such as credit default swaps on high-yield bonds. The Fund will usually enter into interest rate swaps on a net basis; that is, the two payment streams will be netted out in a cash settlement on the payment date or dates specified in the instrument, with the Fund receiving or paying, as the case may be, only the net amount of the two payments.
The Fund may also invest in securities of other open- or closed-end investment companies (including exchange-traded funds (“ETFs”)) that invest primarily in securities of the types in which the Fund may invest directly, to the extent permitted by the Investment Company Act of 1940 Act, as amended (the “1940 Act”), the rules and regulations issued thereunder and applicable exemptive orders issued by the Securities and Exchange Commission (“SEC”).
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Use of Leverage
The Fund may use leverage to seek to achieve its investment objective. The Fund may source leverage through the issuance of “senior securities” as defined under the 1940 Act, which include (1) borrowings, including loans from financial institutions; (2) the issuance of debt securities; and (3) the issuance of preferred shares of beneficial interest (“Preferred Shares”). In addition, the Fund may also use certain derivatives and other financing instruments that have the economic effect of leverage by creating additional investment exposures, such as investments in inverse floating rate securities and reverse repurchase agreements. The amount and sources of leverage will vary depending on market conditions.
Temporary Defensive Periods
During temporary defensive periods the Fund may invest any percentage of its total assets in short-term high quality debt securities. The Fund may not achieve its investment objective during such periods.
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Shareholder Update
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NUVEEN REAL ESTATE INCOME FUND (JRS)
Investment Objectives
The Fund’s primary investment objective is to provide high current income. The Fund’s secondary investment objective is capital appreciation.
Investment Policies
Under normal market conditions, the Fund will invest at least 90% of its total assets in income-producing common stocks, preferred stocks, convertible securities and debt securities issued by real estate companies. The Fund has a fundamental policy of concentrating its investments in the United States (“U.S.”) real estate industry and not in any other industry.
Under normal market conditions:
| • | The Fund will invest at least 80% of its total assets in income producing equity securities issued by Real Estate Investment Trusts (“REITs”), excluding convertible securities. |
| • | The Fund will not invest more than 25% of its total assets in non-investment grade preferred stocks, convertible preferred stocks and debt securities. Investment grade quality preferred stocks, convertible preferred stocks and debt securities are those that, at the time of investment, are rated within the four highest letter grades (BBB or Baa or better) by at least one nationally recognized statistical rating organization (“NRSRO”) that rates such instrument (even if it is rated lower by another), or if it is unrated by any NRSRO but judged to be of comparable quality by the portfolio managers. |
| • | The Fund may invest up to 20% of its total assets in debt securities, including convertible debt securities, issued or guaranteed by real estate companies. |
| • | The Fund will invest at least 25% of its Managed Assets in securities of companies in the financial services sector. |
| • | The Fund will not invest more than 10% of its total assets in the securities of any one issuer. |
| • | The Fund will not enter into short sales or invest in derivatives, except as described below in connection with the interest rate swap or interest rate cap transactions. |
The foregoing policies apply only at the time of any new investment.
“Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.
Approving Changes in Investment Policies
The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, with respect to the Fund’s policy of investing at least 90% of its total assets in income-producing securities issued by real estate companies, such policy may not be changed without 60 days’ prior written notice to shareholders.
The Fund has a fundamental policy of concentrating its investments in the U.S. real estate industry and not in any other industry. This policy may not be changed without the approval of the holders of a majority of the outstanding common shares and preferred shares voting together as a single class, and the approval of the holders of a majority of the outstanding preferred shares, voting separately as a single class. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.
Portfolio Contents
The Fund’s investments are concentrated in the U.S. real estate industry. A real estate company generally derives at least 50% of its revenue from the ownership, construction, financing, management or sale of commercial, industrial or residential real estate (or that has at least 50% of its assets invested in such real estate). A common type of real estate company, a REIT, is a company that pools investors’ funds for investment primarily in income-producing real estate or in real estate related loans (such as mortgages) or other interests. Therefore, a REIT normally derives its income from rents or from interest payments, and may realize capital gains by selling properties that have appreciated in value. REITs generally pay relatively high dividends (as compared to other types of companies) and the Fund intends to use these REIT dividends in an effort to meet its primary objective of high current income.
The Fund may invest in common stocks. Common stock generally represents an equity ownership interest in an issuer, without preference over and with a lower priority than any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks usually carry voting rights and earn dividends. Common stocks fluctuate in price in response to many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity, as such the company may or may not pay dividends. Dividends on common stocks are declared at the discretion of the company’s board. In addition, common stock generally has the greatest appreciation and depreciation potential because increases and decreases in earnings are usually reflected in a company’s stock price.
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The Fund may invest in preferred stocks. Preferred stock, which generally pays fixed or adjustable rate dividends or interest to investors, has preference over common stock in the payment of dividends or interest and the liquidation of a company’s assets, which means that a company typically must pay dividends or interest on its preferred stock before paying any dividends on its common stock. On the other hand, preferred stock is junior to all forms of the company’s debt, including both senior and subordinated debt. Because of its subordinated position in the capital structure of an issuer, the ability to defer dividend or interest payments for extended periods of time without adverse consequences to the issuer, and certain other features, preferred stock is often treated as an equity-like instrument by both issuers and investors, as its quality and value is heavily dependent on the profitability and cash flows of the issuer rather than on any legal claims to specific assets.
The Fund may invest in convertible securities, which may include convertible debt, convertible preferred stock, synthetic convertible securities and may also include secured and unsecured debt, based upon the judgment of the Fund’s sub-adviser. Convertible securities may pay interest or dividends that are based on a fixed or floating rate. A convertible security is a preferred stock, warrant or other security that may be converted into or exchanged for a prescribed amount of common stock or other security of the same or a different issuer or into cash within a particular period of time at a specified price or formula.
The Fund may invest in debt securities, including convertible debt securities, issued or guaranteed by real estate companies.
The Fund’s may invest in below investment grade preferred stocks, convertible preferred stocks and debt securities. Below investment grade preferred stocks, convertible preferred stocks and debt securities (such securities are commonly referred to as “high yield” or “junk”) generally provide high income in an effort to compensate investors for their higher risk of default, which is the failure to make required interest or principal payments.
The Fund will invest in securities of companies in the financial services sector. For purposes of identifying companies in the financial services sector, the Fund will use sector and industry classifications such as those provided by MSCI and Standard & Poor’s (The Global Industry Classification Standard (GICS)), Bloomberg, Barclays or similar sources commonly used in the financial industry. As a result, if one or more of these classifications include a company “in” the financial services sector, the Fund will consider such company as “in” the financial services sector.
The Fund may invest directly or indirectly in foreign securities, including securities denominated in foreign currencies or in multinational currency units. Since foreign securities often are purchased with and payable in currencies of foreign countries, the value of these assets as measured in U.S. dollars may be affected favorably or unfavorably by changes in currency rates and exchange control regulations.
The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and repurchase agreements with maturities in excess of seven days. Illiquid securities may also include securities legally restricted as to resale, such as securities issued pursuant to Section 4(a)(2) of the 1933 Act.
The Fund may enter into interest rate swap transactions that are intended to hedge the Fund’s payment obligations. Interest rate swaps involve the Fund’s agreement with the swap counterparty to pay a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment that is intended to approximate the Fund’s variable rate payment obligation on Borrowings or any preferred shares. The payment obligation is based on the notional amount of the swap.
The Fund may also enter into interest rate cap transactions, which would require it to pay a premium to the cap counterparty and would entitle it, to the extent that a specified variable rate index exceeds a predetermined fixed rate, to receive from the counterparty payment of the difference based on the notional amount.
The Fund may also invest in securities of other open- or closed-end investment companies (including exchange-traded funds (“ETFs”)) that invest primarily in securities of the types in which the Fund may invest directly, to the extent permitted by the Investment Company Act of 1940, as amended (the “1940 Act”), the rules and regulations issued thereunder and applicable exemptive orders issued by the Securities and Exchange Commission (“SEC”). In addition, the Fund may invest a portion of its Managed Assets in pooled investment vehicles (other than investment companies) that invest primarily in securities of the types in which the Fund may invest directly.
Use of Leverage
The Fund uses leverage to pursue its investment objectives. The Fund may source leverage through the issuance of “senior securities” as defined under the 1940 Act, which include (1) borrowings, including loans from financial institutions; (2) the issuance of debt securities; and (3) the issuance of preferred shares of beneficial interest (“Preferred Shares”). In addition, the Fund may also use certain derivatives and other financing instruments that have the economic effect of leverage by creating additional investment exposures, such as investments in reverse repurchase agreements. The amount and sources of leverage will vary depending on market conditions.
Temporary Defensive Periods
During temporary defensive periods the Fund may deviate from investment objectives and policies, and in order to keep the Fund’s cash fully invested, the Fund may invest any percentage of its net assets in short-term investments including high quality, short-term debt securities that may be either tax-exempt or taxable. The Fund may not achieve its investment objectives during such periods.
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Shareholder Update
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NUVEEN REAL ASSET INCOME AND GROWTH FUND (JRI)
Investment Objective
The Fund’s investment objective is to provide a high level of current income and long-term capital appreciation.
Investment Policies
Under normal circumstances, the Fund will invest at least 80% of its Managed Assets (as defined below) in equity and debt securities issued by real asset-related companies located anywhere in the world.
Real asset-related companies are defined as: (i) companies that are in the energy, telecommunications, utilities or materials sectors; (ii) companies in the real estate or transportation industry groups; (iii) companies that, if not in one of these sectors or industry groups (a) derive at least 50% of their revenues or profits from the ownership, management, operation, development, construction, financing or sale of real assets or (b) have at least 50% of the fair market value of their assets invested in real assets; or (iv) pooled investment vehicles that primarily invest in the foregoing companies or that are otherwise designed primarily to provide investment exposure to real assets.
The Fund also employs an option strategy focused on securities issued by real asset-related companies that seeks to generate option premiums for the purpose of enhancing the Fund’s risk-adjusted total returns over time.
Under normal market conditions:
| • | The Fund’s investments will be concentrated in the infrastructure and real estate sectors. |
| • | The Fund will not have more than 40% of its Managed Assets, at the time of purchase, in debt securities. All of the Fund’s debt securities may be rated lower than investment grade quality (BB+/Ba1 or lower); however, no more than 10% of its Managed Assets may be invested in debt securities rated CCC+/Caa1 or lower at any time. |
| • | The Fund may invest up to 5% of its Managed Assets in senior loans. |
| • | The Fund will invest at least 25% and no more than 75% of its Managed Assets in securities of non-United States (“U.S.”) issuers through the direct investment in securities of non-U.S. companies and depository receipts. |
| • | The Fund may invest up to 50% of its Managed Assets in securities of emerging markets issuers. |
| • | The Fund may write (sell) options with a notional value of options ranging from 0% to 25% of its Managed Assets. |
| • | The Fund may invest up to 10% of is Managed Assets in securities of other open- or closed-end investment companies (including exchange-traded fund (“ETFs”)) that invest primarily in securities of the types in which the Fund may invest directly. In addition, the Fund may invest a portion of its Managed Assets in pooled investment vehicles (other than investment companies) that invest primarily in securities of the types in which the Fund may invest directly. |
The foregoing policies apply only at the time of any new investment.
“Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.
Approving Changes in Investment Policies
The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, with respect to the Fund’s policy of investing at least 80% of its Managed Assets in equity and debt securities issued by real asset-related companies located anywhere in the world, such policy may not be changed without 60 days’ prior written notice to shareholders.
Portfolio Contents
The Fund generally invests in equity and debt securities issued by real asset-related companies located anywhere in the world in the infrastructure and real estate sectors. The infrastructure sector includes investments related to the energy, telecommunications, utilities and materials sectors. The real estate sector includes investments in real estate companies.
Debt securities in which the Fund may invest include: corporate debt, high yield debt, mortgage-backed securities (“MBS”), commercial mortgage-backed securities (“CMBS”), debt securities issued by master-limited partnerships (“MLPs”) and REITs, exchange-traded notes (“ETNs”), commercial paper & repurchase agreements, asset-backed securities (“ABS”) and senior loans.
The Fund may invest in common stocks issued by real asset-related companies. Common stock generally represents an equity ownership interest in an issuer, without preference over and with a lower priority than any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks usually carry voting rights and earn dividends. Common stocks fluctuate in price in response to many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor
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perceptions and market liquidity, as such the company may or may not pay dividends. Dividends on common stocks are declared at the discretion of the company’s board. In addition, common stock generally has the greatest appreciation and depreciation potential because increases and decreases in earnings are usually reflected in a company’s stock price.
The Fund may invest in rights and warrants of common stock. Rights and warrants are pure speculation in that they have no voting rights, pay no dividends and have no rights with respect to the assets of the entity issuing them. They do not represent ownership of the securities, but only the right to buy them. The prices of rights (if traded independently) and warrants do not necessarily move parallel to the prices of the underlying securities.
The Fund may invest in the securities of less seasoned companies, which may include start-up companies that have insubstantial operational or earnings history or limited products, markets, financial resources or management depth. These companies may also include emerging companies at the research and development stage with no products or technologies to market or that are approved for marketing.
The Fund may invest in preferred stocks issued by real asset-related companies. Preferred stock, which generally pays fixed or adjustable rate dividends or interest to investors, has preference over common stock in the payment of dividends or interest and the liquidation of a company’s assets, which means that a company typically must pay dividends or interest on its preferred stock before paying any dividends on its common stock. On the other hand, preferred stock is junior to all forms of the company’s debt, including both senior and subordinated debt. Because of its subordinated position in the capital structure of an issuer, the ability to defer dividend or interest payments for extended periods of time without adverse consequences to the issuer, and certain other features, preferred stock is often treated as an equity-like instrument by both issuers and investors, as its quality and value is heavily dependent on the profitability and cash flows of the issuer rather than on any legal claims to specific assets.
The Fund may invest in convertible securities issued by real asset-related companies, which may include convertible debt, convertible preferred stock, synthetic convertible securities and may also include secured and unsecured debt, based upon the judgment of the Fund’s sub-adviser. Convertible securities may pay interest or dividends that are based on a fixed or floating rate. A convertible security is a preferred stock, warrant or other security that may be converted into or exchanged for a prescribed amount of common stock or other security of the same or a different issuer or into cash within a particular period of time at a specified price or formula.
The Fund may invest in securities of non-U.S. issuers, including emerging market issuers. The Fund will classify an issuer of a security as being a U.S. or non-U.S. issuer based on the determination of an unaffiliated, recognized financial data provider. Such determinations are based on a number of criteria, such as the issuer’s country of domicile, the primary exchange on which the security predominately trades, the location from which the majority of the issuer’s revenue comes, and the issuer’s reporting currency. Furthermore, a country is considered to be an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies and the potential for rapid economic growth. The Fund considers a country an emerging market country based on the determination of an international organization, such as the International Monetary Fund (“IMF”), or an unaffiliated, recognized financial data provider.
The Fund may invest in debt securities issued or guaranteed by real asset-related companies.
The Fund’s investments in debt securities may include investment grade and below investment grade securities. Below investment grade securities (such securities are commonly referred to as “high yield” or “junk”) generally provide high income in an effort to compensate investors for their higher risk of default, which is the failure to make required interest or principal payments.
The Fund may invest in corporate debt securities, including corporate bonds. Corporate debt securities are fully taxable debt obligations issued by corporations. These securities fund capital improvements, expansions, debt refinancing or acquisitions that require more capital than would ordinarily be available from a single lender. Investors in corporate debt securities lend money to the issuing corporation in exchange for interest payments and repayment of the principal at a set maturity date. Rates on corporate debt securities are set according to prevailing interest rates at the time of the issue, the credit rating of the issuer, the length of the maturity and other terms of the security, such as a call feature. Corporate debt securities are subject to the risk of an issuer’s inability to meet principal and interest payments on the obligations and may also be subject to price volatility due to such factors as market interest rates, market perception of the creditworthiness of the issuer and general market liquidity. In addition, corporate restructurings, such as mergers, leveraged buyouts, takeovers or similar corporate transactions are often financed by an increase in a corporate issuer’s debt securities. As a result of the added debt burden, the credit quality and market value of an issuer’s existing debt securities may decline significantly.
The Fund may invest in zero coupon bonds. A zero coupon bond is a bond that typically does not pay interest for the entire life of the obligation or for an initial period after the issuance of the obligation.
The Fund may invest in PIKs. PIKs pay dividends or interest in the form of additional securities of the issuer, rather than in cash. Each of these instruments is typically issued and traded at a deep discount from its face amount. The amount of the discount varies depending on such factors as the time remaining until maturity of the securities, prevailing interest rates, the liquidity of the security and the perceived credit quality of the issuer.
The Fund may invest in senior loans. Senior loans typically hold the most senior position in the capital structure of a business entity, are typically secured with specific collateral and have a claim on the assets and/or stock of the issuer that is senior to that held by subordinated debt holders and stockholders of the issuer.
Senior loans generally include: (i) senior loans made by banks or other financial institutions to U.S. and non-U.S. corporations, partnerships and other business entities (each a “Borrower” and, collectively, “Borrowers”), (ii) assignments of such interests in senior loans, or (iii) participation interests in senior loans. Generally, an assignment is the actual sale of the loan, in whole or in part. A participation, on the other hand, means that the original lender maintains ownership over the loan and the participant has only a contract right against the original lender, not a credit relationship with the Borrower. Senior loans typically hold the most senior position in the capital structure of a Borrower, are typically secured with specific collateral and
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Shareholder Update
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have a claim on the assets and/or stock of the Borrower that is senior to that held by subordinated debt holders and stockholders of the Borrower. The capital structure of a Borrower may include senior loans, senior and junior subordinated debt, preferred stock and common stock issued by the Borrower, typically in descending order of seniority with respect to claims on the Borrower’s assets. The proceeds of senior loans primarily are used by Borrowers to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, refinancings, internal growth and for other corporate purposes. A senior loan is typically originated, negotiated and structured by a U.S. or non-U.S. commercial bank, insurance company, finance company or other financial institution (“Agent”) for a lending syndicate of financial institutions which typically includes the Agent (“Lenders”). The Agent typically administers and enforces the senior loan on behalf of the other Lenders in the syndicate. In addition, an institution, typically but not always the Agent, holds any collateral on behalf of the Lenders. The Fund normally will rely primarily on the Agent to collect principal of and interest on a senior loan. Also, the Fund usually will rely on the Agent to monitor compliance by the Borrower with the restrictive covenants in a loan agreement.
Senior loans typically have rates of interest that are redetermined either daily, monthly, quarterly or semi-annually by reference to a base lending rate plus a premium or credit spread. These base lending rates are the prime rate offered by one or more major U.S. banks and the certificate of deposit rate or other base lending rates used by commercial lenders. The base rate for senior loans are generally based on SOFR, a U.S. bank’s prime or base rate, the overnight federal funds rate or another rate. As adjustable rate loans, the frequency of how often a senior loan resets its interest rate will impact how closely such senior loans track current market interest rates.
The Fund may invest in MBS. MBS are structured debt obligations collateralized by pools of commercial or residential mortgages. Pools of mortgage loans and mortgage-related loans, such as mezzanine loans, are assembled into pools of assets that secure or back securities sold to investors by various governmental, government-related and private organizations. MBS in which the Fund may invest include those with fixed, floating or variable interest rates, those with interest rates that change based on a specified index of interest rates and those with interest rates that change inversely to changes in interest rates, as well as those that do not bear interest.
The Fund may invest in CMBS. CMBS generally are multi-class debt or pass-through certificates secured or backed by mortgage loans on commercial properties. CMBS generally are structured to provide protection to the senior class investors against potential losses on the underlying mortgage loans. This protection generally is provided by having the holders of subordinated classes of securities take the first loss if there are defaults on the underlying commercial mortgage loans. Other protection, which may benefit all of the classes or particular classes, may include issuer guarantees, reserve funds, cross-collateralization and over-collateralization. The Fund may invest in CMBS issued or sponsored by commercial banks, savings and loan institutions, mortgage bankers, private mortgage insurance companies and other non-governmental issuers. CMBS have no governmental guarantee.
The Fund may also invest in ABS. ABS are securities that are primarily serviced by the cash flows of a discrete pool of receivables or other financial assets, either fixed or revolving, that by their terms convert into cash within a finite time period. Asset-backed securitization is a financing technique in which financial assets, in many cases themselves less liquid, are pooled and converted into instruments that may be offered and sold in the capital markets. While residential mortgages were the first financial assets to be securitized in the form of MBS, non-mortgage related securitizations have grown to include many other types of financial assets, such as credit card receivables, auto loans and student loans.
The Fund may invest in ETNs. ETNs are a type of senior, unsecured, unsubordinated debt security issued by financial institutions that combine aspects of both bonds and ETFs. An ETN’s returns are based on the performance of a market index minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an ETF, an ETN has a maturity date, at which time the issuer will pay a return linked to the performance of the market index to which the ETN is linked minus certain fees.
The Fund may invest in REITs. A common type of real estate company, a REIT is a company that pools investors’ funds for investment primarily in income-producing real estate or in real estate related loans (such as mortgages) or other interests. Therefore, a REIT normally derives its income from rents or from interest payments, and may realize capital gains by selling properties that have appreciated in value. REITs generally pay relatively high dividends (as compared to other types of companies) and the Fund intends to use these REIT dividends in an effort to meet its primary objective of high current income. REITs generally can be classified as Equity REITs, Mortgage REITs and Hybrid REITs. An Equity REIT invests the majority of its assets directly in real property and derives its income primarily from rents and from capital gains on real estate appreciation which are realized through property sales. A Mortgage REIT invests the majority of its assets in real estate mortgage loans and derives its income primarily from interest payments. A Hybrid REIT combines the characteristics of an Equity REIT and a Mortgage REIT. Although each Fund can invest in all three kinds of REITs, the emphasis of each Fund is expected to be on investments in the common stock and preferred stock of Equity REITs.
The Fund may invest in MLPs. MLPs are publicly traded limited partnerships. The partnership units are registered with the SEC and are freely exchanged on a securities exchange or in the over-the-counter (“OTC”) market. MLPs that are taxed as partnerships for federal income tax purposes are limited by the Code to enterprises that engage in certain businesses, mostly pertaining to the use of natural resources, such as petroleum and natural gas extraction and transportation. Some real estate enterprises also may qualify as MLPs taxed as partnerships.
The Fund may enter into repurchase agreements (the purchase of a security coupled with an agreement to resell that security at a higher price) with respect to its permitted investments. The Fund’s repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the agreement, and will be marked-to-market daily.
The Fund may invest in commercial paper. Commercial paper represents short-term unsecured promissory notes issued in bearer form by corporations such as banks or bank holding companies and finance companies. The rate of return on commercial paper may be linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency or currencies.
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The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days. Illiquid securities may also include securities legally restricted as to resale, such as securities issued pursuant to Section 4(a)(2) of the 1933 Act.
The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.
The Fund may opportunistically employ an option strategy by writing (selling) call options on custom baskets of real estate securities not owned by the Fund. The Fund may also write (sell) covered call options on individual real estate and/or infrastructure securities owned by the Fund. The Fund also may write (sell) covered call options on individual securities issued by real asset-related companies.
An option contract is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the reference instrument underlying the option (or the cash value of the index) at a specified exercise price at any time during the term of the option. The writer of an option on a security has the obligation upon exercise of the option to deliver the reference instrument (or the cash) upon payment of the exercise price or to pay the exercise price upon delivery of the reference instrument (or the cash). Upon exercise of an index option, the writer of an option on an index is obligated to pay the difference between the cash value of the index and the exercise price multiplied by the specified multiplier for the index option. Options may be “covered,” meaning that the party required to deliver the reference instrument if the option is exercised owns that instrument (or has set aside sufficient assets to meet its obligation to deliver the instrument). Options may be listed on an exchange or traded in the OTC market. In general, exchange-traded options have standardized exercise prices and expiration dates and may require the parties to post margin against their obligations, and the performance of the parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation. OTC options have more flexible terms negotiated between the buyer and the seller, but generally are subject to counterparty risk. The ability of the Fund to transact business with any one or any number of counterparties, the lack of any independent evaluation of the counterparties or their financial capabilities, and the absence of a regulated market to facilitate settlement, may increase the potential for losses to the Fund. OTC options also involve greater liquidity risk. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes limited. The staff of the SEC takes the position that certain purchased OTC options, and assets used as cover for certain written OTC options, are illiquid.
The Fund may also write call options on custom baskets of real estate securities. A custom basket call option is an OTC option with a counterparty whose value is linked to the market value of a portfolio of underlying securities and is collateralized by a portion of the Fund’s portfolio. In order to minimize the difference between the returns of the underlying securities in the custom basket (commonly referred to as a tracking error), the sub-adviser will use optimization calculations when selecting the individual securities for inclusion in the custom basket.
In selecting real estate securities for each custom basket, the Fund seeks to minimize the difference between the returns of the underlying stocks of the custom basket and an index of real estate securities (commonly referred to as tracking error) and, at the same time, maximize exposure to securities that the portfolio managers believe are less likely to outperform the relevant market benchmarks over time. Securities selected for each custom basket will primarily consist of underweighted positions relative to the relevant market benchmarks, and may include securities held and not held in the Fund’s portfolio. The objective in structuring these custom baskets is to produce option premiums without limiting the upside potential for specific securities that the portfolio managers believe may outperform over time.
In addition to the use of call options as described above, the Fund may enter into certain derivative instruments in pursuit of its investment objective, including to seek to enhance return, to hedge certain risks of its investments in fixed-income securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts, swap contracts (including interest rate, credit default swaps and credit default swap indices), options on financial futures, options on swap contracts or other derivative instruments.
Use of Leverage
The Fund uses leverage to pursue its investment objective. The Fund may source leverage through the issuance of “senior securities” as defined under the 1940 Act, which include (1) borrowings, including loans from financial institutions; (2) the issuance of debt securities; (3) the issuance of preferred shares of beneficial interest (“Preferred Shares”). In addition, the Fund may also use certain derivatives and other financing instruments that have the economic effect of leverage by creating additional investment exposures, such as investments in reverse repurchase agreements. The amount and sources of leverage will vary depending on market conditions.
Temporary Defensive Periods
During temporary defensive periods the Fund may deviate from its investment objective and policies, and in order to keep the Fund’s cash fully invested, the Fund may invest up to 100% of its Managed Assets in short-term investments, including high quality, short-term securities or may invest in short-, intermediate-, or long-term U.S. Treasury Bonds. The Fund may not achieve its investment objective during such periods.
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Shareholder Update
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PRINCIPAL RISKS OF THE FUNDS
The factors that are most likely to have a material effect on the Fund’s portfolio as a whole are called “principal risks.” The Fund is subject to the principal risks indicated below, whether through direct investment or derivative positions. The Fund may be subject to additional risks other than those identified and described below because the types of investments made by the Fund can change over time.
Risk |
NMAI |
JRS |
JRI | |||
Portfolio Level Risks |
||||||
Basis Risk |
X |
- |
- | |||
Below Investment Grade Risk |
X |
X |
X | |||
Call Option Risk |
X |
- |
X | |||
Call Risk |
X |
X |
X | |||
Collateralized Debt Obligation (“CDO”) and Collateralized Loan Obligation (“CLO”) Risk |
X |
- |
- | |||
Common Stock Risk |
X |
X |
X | |||
Contingent Capital Security (“CoCos”) Risk |
X |
- |
- | |||
Convertible Securities Risk |
X |
X |
X | |||
Counterparty Risk |
X |
X |
X | |||
Credit Risk |
X |
X |
X | |||
Credit Spread Risk |
X |
X |
X | |||
Debt Securities Risk |
X |
X |
X | |||
Deflation Risk |
X |
X |
X | |||
Depositary Receipts Risk |
X |
- |
- | |||
Derivatives Risk |
X |
X |
X | |||
Dividend-Paying Securities Risk |
X |
X |
X | |||
Distressed or Defaulted Securities Risk |
X |
- |
- | |||
Duration Risk |
X |
X |
X | |||
Exchange-Traded Notes (“ETNs”) Risk |
X |
- |
X | |||
Extension Risk |
X |
- |
- | |||
Financial Futures and Options Transactions Risk |
X |
- |
X | |||
Financial Services Sector Risk |
- |
X |
- | |||
Floating and Variable Rate Securities Risk |
X |
- |
- | |||
Foreign Currency Risk |
X |
X |
X | |||
Foreign Currency Contracts Risk |
X |
- |
- | |||
Foreign Debt Investment Risk |
X |
- |
X | |||
Foreign/Emerging Markets Issuer Risk |
X |
X |
X | |||
Frequent Trading Risk |
X |
- |
X | |||
Growth Stock Risk |
X |
- |
- | |||
Hedging Risk |
X |
X |
X | |||
Income Risk |
X |
X |
X | |||
Inflation Risk |
X |
X |
X | |||
Infrastructure Related Securities Risk |
X |
- |
X | |||
Interest Rate Risk |
X |
X |
X | |||
Inverse Floating Rate Securities Risk |
X |
- |
- | |||
Large-Cap Company Risk |
X |
- |
X | |||
Loan Risk |
X |
- |
- | |||
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Risk |
NMAI |
JRS |
JRI | |||
Portfolio Level Risks |
||||||
Master Limited Partnerships (“MLPs”) Risk |
X |
- |
X | |||
Mortgage-Backed Securities (“MBS”) and Asset-Backed Securities (“ABS”) Risk |
X |
- |
X | |||
Mortgage Roll Risk |
X |
- |
- | |||
Municipal Securities Risk |
X |
- |
- | |||
Natural Resource Related Securities Risk |
- |
- |
X | |||
Options Strategy Risk |
X |
- |
X | |||
Other Investment Companies Risk |
X |
X |
X | |||
Preferred Securities Risk |
X |
X |
X | |||
Prepayment Risk |
X |
- |
- | |||
Put Options Risk |
X |
- |
- | |||
Real Estate Related Securities Risk |
X |
X |
X | |||
Reinvestment Risk |
X |
X |
X | |||
Restricted and Illiquid Investments Risk |
X |
X |
X | |||
Rights and Warrants Risk |
X |
- |
X | |||
Senior Loan Risk |
X |
- |
X | |||
Senior Loan Agent Risk |
X |
- |
X | |||
Small and Mid-Cap Company Risk |
X |
- |
X | |||
Sovereign Government and Supranational Debt Risk |
X |
- |
- | |||
Special Purpose Acquisition Companies (“SPACs”) Risk |
X |
- |
- | |||
Special Risks for Inflation-Indexed Bonds |
X |
- |
- | |||
Swap Transactions Risk |
X |
X |
X | |||
Unrated Securities Risk |
X |
X |
X | |||
U.S. Government Securities Risk |
X |
- |
- | |||
Unseasoned Company Risk |
- |
- |
X | |||
Valuation Risk |
X |
X |
X | |||
Value Stock Risk |
X |
- |
- | |||
When-Issued and Delayed-Delivery Transactions Risk |
X |
- |
X | |||
Whole Loans, Loan Participations and Other Mortgage-Related Interests Risk |
- |
- |
X | |||
Zero Coupon or Pay-In-Kind Securities Risk |
X |
- |
X | |||
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Shareholder Update
(continued)
Risk |
NMAI |
JRS |
JRI | |||
Fund Level and Other Risks |
||||||
Allocation Risk |
X |
- |
- | |||
Anti-Takeover Provisions |
X |
X |
X | |||
Borrowing Risk |
X |
X |
X | |||
Cybersecurity Risk |
X |
X |
X | |||
Distribution Risk |
- |
- |
X | |||
Global Economic Risk |
X |
X |
X | |||
Investment and Market Risk |
X |
X |
X | |||
Legislation and Regulatory Risk |
X |
X |
X | |||
Leverage Risk |
X |
X |
X | |||
Market Discount from Net Asset Value |
X |
X |
X | |||
Multi-Manager Risk |
X |
- |
- | |||
Recent Market Conditions |
X |
X |
X | |||
Reverse Repurchase Agreement Risk |
X |
X |
X | |||
Fund Tax Risk |
X |
X |
X | |||
112
Portfolio Level Risks:
Basis Risk.
Below Investment Grade Risk.
Call Risk.
Call Option Risk.
In addition, because the exercise of index options is settled in cash, sellers of index call options, such as the Fund, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities. The Fund bears a risk that the value of the securities held by the Fund will vary from the value of the underlying index and relative to the written index call option positions. Accordingly, the Fund may incur losses on the index call options that it has sold that exceed gains on the Fund’s equity portfolio. The value of index options written by the Fund, which will be priced daily, will be affected by changes in the value of and dividend rates of the underlying common stocks in the index, changes in the actual or perceived volatility of the stock market and the remaining time to the options’ expiration. The value of the index options also may be adversely affected if the market for the index options becomes less liquid or smaller.
Collateralized Debt Obligation (“CDO”) and Collateralized Loan Obligation (“CLO”) Risk.
Common Stock Risk.
Contingent Capital Securities (“CoCos”) Risk.
CoCos may be subject to an automatic write-down (i.e., the automatic write-down of the principal amount or value of the securities, potentially to zero, and the cancellation of the securities) under certain circumstances, which could result in the Fund losing a portion or all of its investment in such securities. In addition, the Fund may not have any rights with respect to repayment of the principal amount of the securities that has not become due or the payment of interest or dividends on such securities for any period from (and including) the interest or dividend payment date falling immediately prior to the occurrence of such automatic write-down. An automatic write-down could also result in a reduced income rate if the
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Shareholder Update
(continued)
dividend or interest payment is based on the security’s par value. Coupon payments on CoCos may be discretionary and may be cancelled by the issuer for any reason or may be subject to approval by the issuer’s regulator and may be suspended in the event there are insufficient distributable reserves.
In certain scenarios, investors in CoCos may suffer a loss of capital ahead of equity holders or when equity holders do not. There is no guarantee that the Fund will receive a return of principal on CoCos. Any indication that an automatic write-down or conversion event may occur can be expected to have a material adverse effect on the market price of CoCos.
The prices of CoCos may be volatile. Additionally, the trading behavior of a given issuer’s CoCo may be strongly impacted by the trading behavior of other issuers’ CoCos, such that negative information from an unrelated CoCo may cause a decline in value of one or more CoCos held by a fund. Accordingly, the trading behavior of CoCos may not follow the trading behavior of other similarly structured securities.
CoCos are issued primarily by financial institutions. Therefore, CoCos present substantially increased risks at times of financial turmoil, which could affect financial institutions more than companies in other sectors and industries.
Convertible Securities Risk.
Counterparty Risk.
Credit Risk.
Credit Spread Risk.
Debt Securities Risk.
Deflation Risk.
Depositary Receipts Risk
114
the price of the underlying foreign securities on which they are based, may have limited voting rights, and may have a distribution subject to a fee charged by the depository. As a result, equity shares of the underlying issuer may trade at a discount or premium to the market price of the depositary receipts.
Derivatives Risk.
It is possible that regulatory or other developments in the derivatives market, including changes in government regulation could adversely impact the Fund’s ability to invest in certain derivatives or successfully use derivative instruments.
Distressed or Defaulted Securities Risk.
Dividend-Paying Securities Risk
.
Duration Risk
.
Exchange-Traded Notes (“ETNs”) Risk.
Extension Risk.
Financial Futures and Options Transactions Risk.
If the Fund engages in futures transactions or in the writing of options on futures, it will be required to maintain initial margin and maintenance margin and may be required to make daily variation margin payments in accordance with applicable rules of the exchanges and the Commodity Futures Trading Commission (“CFTC”). If the Fund purchases a financial futures contract or a call option or writes a put option in order to hedge the anticipated purchase of securities, and if the Fund fails to complete the anticipated purchase transaction, the Fund may have a loss or a gain on the futures or options transaction that will not be offset by price movements in the securities that were the subject of the anticipatory hedge. There can be no assurance that a liquid market will exist at a time when the Fund seeks to close out a derivatives or futures or a futures option position, and the Fund would remain obligated to meet margin requirements until the position is closed.
Financial Services Sector Risk.
| • | financial services companies may suffer a setback if regulators change the rules under which they operate; |
| • | unstable interest rates can have a disproportionate effect on the financial services sector; |
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Shareholder Update
(continued)
| • | financial services companies whose securities the Fund may purchase may themselves have concentrated portfolios, such as a high level of loans to real estate developers, which makes them vulnerable to economic conditions that affect that sector; |
| • | financial services companies have been affected by increased competition, which could adversely affect the profitability or viability of such companies; and |
| • | financial services companies have been significantly and negatively affected by the downturn in the subprime mortgage lending market and the resulting impact on the world’s economies. |
Floating and Variable Rate Secur
ities
Risk.Foreign Currency Risk.
Forward Currency Contracts Risk.
Foreign Debt Investment Risk.
Foreign/Emerging Markets Issuer Risk.
Frequent Trading Risk.
116
Growth Stock Risk.
Hedging Risk.
Income Risk.
Inflation Risk.
Infrastructure Related Securities Risk.
General
. The Fund invests significantly in infrastructure related securities, which will expose the Fund to the consequences of any adverse economic, regulatory, political, legal and other changes affecting the issuers of such securities. Infrastructure related businesses are subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown and surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Additionally, infrastructure related businesses may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, service interruption and/or legal challenges due to environmental, operational or other mishaps and the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards. There is also the risk that corruption may negatively affect publicly funded infrastructure projects, especially in emerging markets, resulting in delays and cost overruns. Technological Risk.
Technological changes in the way a service or product is delivered may render existing technologies obsolete. Infrastructure assets have very few alternative uses should they become obsolete. Communications utilities may be particularly sensitive to these risks, as telecommunications products and services also may be subject to rapid obsolescence resulting from changes in consumer tastes, intense competition and strong market reactions to technological development. Developing Industries Risk.
Some infrastructure companies are focused on developing new technologies and are strongly influenced by technological changes. Product development efforts by infrastructure companies may not result in viable commercial products. Infrastructure companies may bear high research and development costs, which can limit their ability to maintain operations during periods of organizational growth or instability. Some infrastructure companies may be in the early stages of operations and may have limited operating histories and smaller market capitalizations on average than companies in other sectors. As a result of these and other factors, the value of investments in such infrastructure issuers may be considerably more volatile than those in more established segments of the economy. Regional Risk
. Should an event that impairs assets occur in a region where an infrastructure company operates, the performance of such infrastructure company may be adversely affected. As many infrastructure assets are not moveable, such an event may have enduring effects on the infrastructure company that are difficult to mitigate. Strategic Asset Risk
. Infrastructure companies may control significant strategic assets. Strategic assets are assets that have a national or regional profile, and may have monopolistic characteristics. Given the national or regional profile and/or their irreplaceable nature, strategic assets may constitute a higher risk target for terrorist acts or adverse political actions. Environmental Risk
. Infrastructure companies, in particular those in the electrical utility industry, can have substantial environmental impacts. Ordinary operations or operational accidents may cause major environmental damage, which could cause infrastructure companies significant financial distress. Community and environmental groups may protest the development or operation of assets or facilities of infrastructure companies, and these protests may induce government action to the detriment of infrastructure companies. Political and Expropriation Risk
. Governments may attempt to influence the operations, revenue, profitability or contractual relationships of infrastructure companies or expropriate infrastructure companies’ assets. The public interest aspect of the products and services provided by infrastructure companies means political oversight will remain pervasive. Operational Risk
. The long-term profitability of infrastructure companies is partly dependent on the efficient operation and maintenance of their assets. Infrastructure companies may be subject to service interruptions due to environmental disasters, operational accidents or terrorist activities, which may impair their ability to maintain payments of dividends or interest to investors. The destruction or loss of an asset or facility may have a major adverse impact on an infrastructure company. Failure by the infrastructure company to operate and maintain its assets or facilities appropriately or to carry appropriate, enforceable insurance could lead to significant losses. 117
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Regulatory Risk
. Many infrastructure companies are subject to significant national, regional and local government regulation, which may include how facilities are constructed, maintained and operated, environmental and safety controls and the prices they may charge for the products and services they provide. Various governmental authorities have the power to enforce compliance with these regulations and the permits issued under them, and violators are subject to administrative, civil and criminal penalties, including civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which would likely increase compliance costs and may adversely affect the operations and financial performance of infrastructure issuers. Regulators that have the power to set or modify the prices infrastructure issuers can charge for their products or services can have a significant impact on the profitability of such infrastructure issuers. The returns on regulated assets or services are usually stable during regulated periods, but may be volatile during any period that rates are reset by the regulator. Infrastructure companies may be adversely affected by additional regulatory requirements enacted in response to environmental disasters or to address ongoing environment concerns, which may impose additional costs or limit certain operations by such companies operating in various sectors. Non-U.S. infrastructure companies are also subject to regulation, although such regulations may or may not be comparable to those in the United States. Non-U.S. infrastructure companies may be more heavily regulated by their respective governments than companies in the United States and, as in the United States, may be required to seek government approval for rate increases. In addition, non-U.S. infrastructure companies in the electrical utility industry may use fuels that may cause more pollution than those used in the United States, which may require such companies to invest in pollution control equipment to meet any proposed pollution restrictions. Non-U.S. regulatory systems vary from country to country and may evolve in ways different from regulation in the United States.
Interest Rate Risk
. Due to the high costs of developing, constructing, operating and distributing assets and facilities, many infrastructure companies are highly leveraged. As such, movements in the level of interest rates may affect the returns from these assets. The structure and nature of the debt is therefore an important element to consider in assessing the interest rate risk posed by infrastructure companies. In particular, the type of facilities, maturity profile, rates being paid, fixed versus variable components and covenants in place (including how they impact returns to equity holders) are crucial factors in assessing the degree of interest rate risk. Inflation Risk
. Many infrastructure companies may have fixed income streams and, therefore, may be unable to increase their dividends during inflationary periods. The market value of infrastructure companies may decline in value in times of higher inflation rates. The prices that an infrastructure company is able to charge users of its assets may not always be linked to inflation. In this case, changes in the rate of inflation may affect the forecast profitability of the infrastructure company. Interest Rate Risk.
Inverse Floating Rate Securities Risk.
The Fund may invest in inverse floating rate securities issued by special purpose trusts that have recourse to the Fund. In such instances, the Fund may be at risk of loss that exceeds its investment in the inverse floating rate securities.
The Fund may be required to sell its inverse floating rate securities at less than favorable prices, or liquidate other Fund portfolio holdings in certain circumstances, including, but not limited to, the following:
| • | If the Fund has a need for cash and the securities in a special purpose trust are not actively trading due to adverse market conditions; |
| • | If special purpose trust sponsors (as a collective group or individually) experience financial hardship and consequently seek to terminate their respective outstanding special purpose trusts; and |
| • | If the value of an underlying security declines significantly and if additional collateral has not been posted by the Fund. |
Large-Cap Company Risk.
Loan Risk.
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that the value of any collateral securing a loan in which the Fund has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the loan. Interests in loans made to finance highly leveraged companies or transactions such as corporate acquisitions may be especially vulnerable to adverse changes in economic or market conditions. Loans may have restrictive covenants limiting the ability of a borrower to further encumber its assets. However, in periods of high demand by lenders like the Fund for loan investments, borrowers may limit these covenants and weaken a lender’s ability to access collateral securing the loan; reprice the credit risk associated with the borrower; and mitigate potential loss. The Fund may experience relatively greater realized or unrealized losses or delays and expenses in enforcing its rights with respect to loans with fewer restrictive covenants. Additionally, loans may not be considered “securities” and, as a result, the Fund may not be entitled to rely on the anti-fraud protections of the securities laws. Because junior loans have a lower place in an issuer’s capital structure and may be unsecured, junior loans involve a higher degree of overall risk than senior loans of the issuer.
Master Limited Partnerships (“MLPs”) Risk.
Mortgage-Backed Securities (“MBS”) and Asset-Backed Securities (“ABS”) Risk
MBS, including CMBS and RMBS, may be negatively affected by the quality of the mortgages underlying such security, the credit quality of its issuer or guarantor, and the nature and structure of its credit support. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of MBS and will result in losses to the Fund. Privately issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities that have government or government-sponsored entity guarantee. As a result, the mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored mortgage-related securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.
Certain non-agency MBS are only entitled to payments provided for in the underlying agreement when and if funds are generated by the underlying mortgage loan pool. This likelihood of the return of interest and principal may be assessed as a credit matter. However, the holders of such non-agency MBS may not have the legal status of secured creditors, and therefore may not be able to accelerate a claim for payment on their securities or force a sale of the mortgage loan pool in the event that insufficient funds exist to pay such amounts on any date designated for such payment. The holders of such non-agency MBS do not typically have any right to remove a servicer solely as a result of a failure of the mortgage pool to perform as expected. In addition, there can be no assurance that originators and servicers of mortgage loans for non-agency MBS will not experience financial difficulties, which may increase the chances that these entities may default on their warehousing or other credit lines or become insolvent or bankrupt, thus increasing the likelihood that repurchase obligations will not be fulfilled and the potential for loss to holders of such non-agency MBS. Further, the prices of non-agency MBS may decline substantially, for reasons that may not be attributable to any of the other risks described herein. In particular, purchasing assets at what may appear to be “undervalued” levels is no guarantee that these assets will not be trading at even more “undervalued” levels at a time of valuation or at the time of sale. It may not be possible to predict, or to protect against, such “spread widening” risk.
Mortgage Roll Risk.
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Municipal Securities Risk.
To the extent that a fund invests a significant portion of its assets in the securities of issuers located in a given state or U.S. territory, it will be disproportionally affected by political and economic conditions and developments in that state or territory and may involve greater risk than funds that invest in a larger universe of securities. In addition, economic, political or regulatory changes in that state or territory could adversely affect municipal securities issuers in that state or territory and therefore the value of a fund’s investment portfolio.
Natural Resource Related Securities Risk.
Options Strategy Risk.
Other Investment Companies Risk.
With respect to ETF’s, an ETF that is based on a specific index may not be able to replicate and maintain exactly the composition and relative weighting of securities in the index. The value of an ETF based on a specific index is subject to change as the values of its respective component assets fluctuate according to market volatility. ETFs typically rely on a limited pool of authorized participants to create and redeem shares, and an active trading market for ETF shares may not develop or be maintained. The market value of shares of ETFs and closed-end funds may differ from their NAV.
Preferred Securities Risk.
Prepayment Risk.
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Put Options Risk.
Real Estate Related Securities Risk.
Reinvestment Risk.
Restricted and Illiquid Investments Risk.
Rights and Warrants Risk.
Senior Loan Risk.
Although the Fund may invest in senior loans that are secured by specific collateral, there can be no assurance that the liquidation of such collateral would satisfy an issuer’s obligation to the Fund in the event of issuer default or that such collateral could be readily liquidated under such circumstances. If the terms of a senior loan do not require the issuer to pledge additional collateral in the event of a decline in the value of the already pledged collateral, the Fund will be exposed to the risk that the value of the collateral will not at all times equal or exceed the amount of the issuer’s obligations under the senior loan.
In the event of bankruptcy of an issuer, the Fund could also experience delays or limitations with respect to its ability to realize the benefits of any collateral securing a senior loan. Some senior loans are subject to the risk that a court, pursuant to fraudulent conveyance or other similar laws, could subordinate the senior loans to presently existing or future indebtedness of the issuer or take other action detrimental to lenders, including the Fund. Such court action could, under certain circumstances, include invalidation of senior loans.
Senior Loan Agent Risk.
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Small and Mid-Cap Company Risk.
Sovereign Government and Supranational Debt Risk.
Special Purpose Acquisition Companies (“SPACs”) Risk.
Special Risks for Inflation-Indexed Bonds.
Swap Transactions Risk.
Unrated Securities Risk.
U.S. Government Securities Risk.
Unseasoned Company Risk.
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Valuation Risk.
Value Stock Risk.
When-Issued and Delayed-Delivery Transactions Risk.
Whole Loans, Loan Participations and Other Mortgage-Related Interests Risk.
Investment in whole loans and loan participations relating to multi-family residential properties may subject the Fund to a higher level of risk than investment in whole loans and loan participations relating to other residential properties. Multi-family lending is generally viewed as involving a greater risk of loss than one- to four-family residential lending. Multi-family lending typically involves larger loans to single borrowers or groups of related borrowers than residential one- to four-family mortgage loans. Furthermore, the repayment of loans secured by income-producing multifamily properties is typically dependent upon the successful operation of the underlying real estate project. If the cash flow from the project is reduced (for example, if leases are not obtained or renewed), the borrower’s ability to repay the multi-family loan may be impaired. The market values of and cash flow to multi-family real estate can be affected significantly by supply and demand in the local market for the residential rental property and, therefore, the value to the Fund of any whole loans or loan participations relating to multi-family properties will be highly sensitive to changes in the local economic conditions where such multi-family properties are located. In addition, market values may vary as a result of economic events or governmental regulations outside the control of the borrower or lender, such as rent control laws, which impact the future cash flow to the property.
Investment in whole loans and loan participations relating to commercial properties may subject the Fund to certain risks that do not typically apply to investment in whole loans and loan participations relating to residential properties. Market values of and cash flows to commercial real estate may be adversely affected by declines in rental or occupancy rates and extended vacancies, the management skills of the borrower or third-party manager operating a business at the commercial property, overbuilding and changes in zoning laws and other environmental and land use regulations. Mortgage loans relating to commercial properties are also generally not fully amortizing, meaning they may have a significant “balloon” payment due at maturity. Loans with a balloon payment may be riskier than fully amortizing loans because the ability of a borrower to make a balloon payment will typically depend on its ability to either refinance the loan or sell the property, which the borrower may not be able to accomplish on commercially acceptable terms, if at all. In addition, mortgage loans relating to commercial properties are typically non-recourse to the borrowers, resulting in a higher risk of loss in the event of a foreclosure.
Certain loan participations held by the Fund may continue to have the mortgage servicers reflected as record owners of the underlying mortgages. Accordingly, if the mortgage servicer under a particular loan participation were to become insolvent, to have a receiver, conservator or similar official appointed for it by an appropriate regulatory authority or to become a debtor in a bankruptcy proceeding, there is a risk that the Fund’s rights to payments under the loan participation could become subject to the claims of the mortgage servicer’s creditors, which would adversely affect the value of the loan participation to the Fund. The Fund could also incur costs and delays in enforcing its rights to such payments.
Whole loans and loan participations are illiquid and may be difficult to sell when the sub-adviser deems it advisable to do so. See “Illiquid Securities Risk” above. Whole loans and loan participations, like mortgage-backed securities, are also subject to pre-payment risk, which is the risk that the borrowers under the mortgage loans might pay off their mortgage loans sooner than expected, which could happened when interest rates fall or for other reasons, which could cause the value of the Fund’s whole loans and loan participations to fall. Moreover, if the mortgage loans are paid off sooner than expected, the Fund may have to reinvest the proceeds in other securities that have lower yields.
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Zero Coupon or Pay-In-Kind Securities Risk.
Fund Level and Other Risks:
Allocation Risk.
Anti-Takeover Provisions.
Borrowing Risk.
Cybersecurity Risk.
Distribution Risk.
Global Economic Risk.
The Fund does not know and cannot predict how long the securities markets may be affected by these events, and the future impact of these and similar events on the global economy and securities markets is uncertain. The Fund may be adversely affected by abrogation of international agreements and national laws which have created the market instruments in which the Fund may invest, failure of the designated national and international authorities to enforce compliance with the same laws and agreements, failure of local, national and international organizations to carry out the duties prescribed to them under the relevant agreements, revisions of these laws and agreements which dilute their effectiveness or conflicting interpretation of provisions of the same laws and agreements.
Governmental and quasi-governmental authorities and regulators throughout the world have in the past responded to major economic disruptions with a variety of significant fiscal and monetary policy changes, including but not limited to, direct capital infusions into companies, new monetary programs and dramatically lower interest rates. An unexpected or quick reversal of these policies, or the ineffectiveness of these policies, could increase volatility in securities markets, which could adversely affect the Fund’s investments.
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Investment and Market Risk.
Legislation and Regulatory Risk.
Leverage Risk.
Certain types of leverage may result in the Fund being subject to certain covenants, asset coverage or other portfolio composition limits by its lenders, debt or preferred securities purchasers, rating agencies that may rate the debt or preferred securities, or reverse repurchase counterparties. Such limitations may be more stringent than those imposed by the 1940 Act and may impact whether the Fund is able to maintain its desired amount of leverage. In addition, whenever the Fund incurs borrowings and/or preferred shares are outstanding, Common Shareholders will not be entitled to receive any cash distributions from the Fund unless all interest on such borrowings has been paid and all accumulated dividends on preferred shares have been paid, unless asset coverage (as defined in the 1940 Act) with respect to any borrowings would be at least 300% after giving effect to the distributions and asset coverage (as defined in the 1940 Act) with respect to preferred shares would be at least 200% after giving effect to the distributions.
The Fund will pay (and common shareholders will bear) any costs and expenses relating to the Fund’s use of leverage, which will result in a reduction in the Fund’s NAV. The investment adviser may, based on its assessment of market conditions and composition of the Fund’s holdings, increase or decrease the amount of leverage. Such changes may impact the Fund’s distributions and the price of the common shares in the secondary market. There is no assurance that the Fund’s use of leverage will be successful.
The Fund may seek to refinance its leverage over time, in the ordinary course, as current forms of leverage mature or it is otherwise desirable to refinance; however, the form that such leverage will take cannot be predicted at this time. If the Fund is unable to replace existing leverage on comparable terms, its costs of leverage will increase. Accordingly, there is no assurance that the use of leverage may result in a higher yield or return to common shareholders.
The amount of fees paid to the investment adviser and the applicable sub-adviser for investment advisory services will be higher if the Fund uses leverage because the fees will be calculated based on the Fund’s Managed Assets - this may create an incentive for the investment adviser and the applicable sub-adviser to leverage the Fund or increase the Fund’s leverage.
Market Discount from Net Asset Value.
Multi-Manager Risk.
Recent Market Conditions.
Ukraine has experienced ongoing military conflict, most recently commencing in February 2022 when Russia invaded Ukraine; this conflict may expand and military attacks could occur elsewhere in Europe. Europe has also been struggling with mass migration from the Middle East and Africa. The ultimate effects of these events and other socio-political or geographical issues are not known but could profoundly affect global economies and
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markets. Additionally, in October 2023 armed conflict broke out between Israel and the militant group Hamas after Hamas infiltrated Israel’s southern border from the Gaza Strip. Israel has since declared war against Hamas and this conflict has escalated into a greater regional conflict. The ultimate effects of these events and other socio-political or geographical issues are not known but could profoundly affect global economies and markets.
The ongoing trade war between China and the United States, including the imposition of tariffs by each country on the other country’s products, has created a tense political environment. These actions may trigger a significant reduction in international trade, adverse effects in the supply of certain manufactured goods, substantial adverse price changes for goods and possible failure of individual companies and/or large segments of China’s export industry and U.S. importers, which could have a negative impact on the Fund’s performance. U.S. companies that source material and goods from China and those that make large amounts of sales in China would are vulnerable to an escalation of trade tensions. Beginning in early 2025, the United States also imposed tariffs on other countries, including Mexico and Canada. The possibility of additional tariffs being imposed or the outbreak of a trade war may adversely impact U.S. and international markets. Uncertainty regarding the outcome of the trade tensions and the potential for a trade war could cause the U.S. dollar to decline further. Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other escalating actions may be taken in the future. Additionally, political uncertainty regarding U.S. policy, including the U.S. government’s approach to trade, may impact the markets and the Fund’s performance.
The U.S. Federal Reserve (the “Fed”) has in the past sharply raised interest rates, and has signaled an intention to maintain relatively higher interest rates until current inflation levels re-align with the Fed’s long-term inflation target. Changing interest rate environments impact the various sectors of the economy in different ways. For example, in March 2023, the Federal Deposit Insurance Corporation (“FDIC”) was appointed receiver for each of Silicon Valley Bank and Signature Bank, the second- and third-largest bank failures in U.S. history, which failures may be attributable, in part, to rising interest rates. Bank failures may have a destabilizing impact on the broader banking industry or markets generally.
The impact of these developments in the near- and long-term is unknown and could have additional adverse effects on economies, financial markets and asset valuations around the world.
Reverse Repurchase Agreement Risk.
Fund Tax Risk.
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EFFECTS OF LEVERAGE
The following table is furnished in response to requirements of the SEC. It is designed to illustrate the effects of leverage through the use of senior securities, as that term is defined under Section 18 of the 1940 Act, as well as certain other forms of leverage, on common share total return, assuming investment portfolio total returns (consisting of income and changes in the value of investments held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. The table below reflects the Fund’s (i) continued use of leverage as of December 31, 2025 as a percentage of Managed Assets (including assets attributable to such leverage), (ii) the estimated annual effective interest expense rate payable by the Fund on such instruments (based on actual leverage costs incurred during the fiscal year ended December 31, 2025) as set forth in the table, and (iii) the annual return that the Fund’s portfolio must experience (net of expenses) in order to cover such costs of leverage based on such estimated annual effective interest expense rate. The information below does not reflect any Fund’s use of certain other forms of economic leverage achieved through the use of certain derivative instruments.
The numbers are merely estimates, used for illustration. The costs of leverage may vary frequently and may be significantly higher or lower than the estimated rate. The assumed investment portfolio returns in the table below are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be experienced by the Fund. Your actual returns may be greater or less than those appearing below.
NMAI |
JRI |
JRS | ||||||
| Estimat ed Leverage as a Percentage of Managed Assets (Including Assets Attributable to Leverage) |
30.48% |
31.78 % |
30.15% | |||||
Estimated Annual Effective Leverage Expense Rate Payable by Fund on Leverage |
4.75% |
4.94% |
4.89% | |||||
| Annual Return Fund Portfolio Must Experience (net of expenses) to Cover Estimated Annual Effective Interest Expense Rate on Leverage |
1.45% |
1.57% |
1.48% | |||||
Common Share Total Return for (10.00)% Assumed Portfolio Total Return |
(16.47)% |
(16.96)% |
(16.43)% | |||||
Common Share Total Return for (5.00)% Assumed Portfolio Total Return |
(9.27)% |
(9.63)% |
(9.27)% | |||||
Common Share Total Return for 0.00% Assumed Portfolio Total Return |
(2.08)% |
(2.30)% |
(2.11)% | |||||
Common Share Total Return for 5.00% Assumed Portfolio Total Return |
5.11% |
5.03% |
5.05% | |||||
Common Share Total Return for 10.00% Assumed Portfolio Total Return |
12.30% |
12.36% |
12.20% | |||||
Common Share total return is composed of two elements — the distributions paid by the Fund to holders of common shares (the amount of which is largely determined by the net investment income of the Fund after paying dividend payments on any preferred shares issued by the Fund and expenses on any forms of leverage outstanding) and gains or losses on the value of the securities and other instruments the Fund owns. As required by SEC rules, the table assumes that the Fund are more likely to suffer capital losses than to enjoy capital appreciation. For example, to assume a total return of 0%, the Fund must assume that the income it receives on its investments is entirely offset by losses in the value of those investments. This table reflects hypothetical performance of the Fund’s portfolio and not the actual performance of the Fund’s common shares, the value of which is determined by market forces and other factors. Should the Fund elect to add additional leverage to its portfolio, any benefits of such additional leverage cannot be fully achieved until the proceeds resulting from the use of such leverage have been received by the Fund and invested in accordance with the Fund’s investment objectives and policies. As noted above, the Fund’s willingness to use additional leverage, and the extent to which leverage is used at any time, will depend on many factors.
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DIVIDEND REINVESTMENT PLAN
Nuveen Closed-End Funds Automatic Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares. By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each quarter you’ll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above NAV at the time of valuation, the Fund will issue new shares at the greater of the NAV or 95% of the then-current market price. If the shares are trading at less than NAV, shares for your account will be purchased on the open market. If Computershare Trust Company, N.A. (the “Plan Agent”) begins purchasing Fund shares on the open market while shares are trading below NAV, but the Fund’s shares subsequently trade at or above their NAV before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ NAV or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Dividend Reinvestment Plan (the “Plan”) participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment adviser if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial professional or call us at (800) 257-8787.
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CHANGES OCCURRING DURING THE FISCAL YEAR
The following information in this annual report is a summary of certain changes during the most recent fiscal year. This information may not reflect all of the changes that have occurred since you purchased shares of a Fund.
During the most recent fiscal year, there have been no changes required to be reported in connection with: (i) the Fund’s investment objectives and principal investment policies that have not been approved by shareholders, (ii) the principal risks of the Fund, (iii) the portfolio managers of the Fund; or (iv) the Fund’s charter or by-laws that would delay or prevent a change of control of the Fund that have not been approved by shareholders, except as follows:
Principal Risks
The following risk factor was added as a principal risk for Nuveen Real Estate Income Fund (“JRS”):
Dividend-Paying Securities Risk.
The Fund’s investment in dividend-paying stocks could cause the Fund to underperform similar funds that invest without consideration of a company’s track record of paying dividends. Stocks of companies with a history of paying dividends may not participate in a broad market advance to the same degree as most other stocks, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. There is no guarantee that the issuers of the stocks held by the Fund will declare dividends in the future or that, if declared, they will remain at their current levels or increase over time. The Fund may also be harmed by changes to the favorable federal income tax treatment generally afforded to dividends. The following risk factor was added as a principal risk for Nuveen Real Asset Income and Growth Fund (“JRI”):
Foreign Debt Investment Risk.
Foreign investments, which may include debt securities of foreign issuers, or securities or contracts payable or denominated in non-U.S. currencies, can involve special risks that arise from one or more of the following events or circumstances: (1) changes in currency exchange rates; (2) possible imposition of market controls or currency exchange controls; (3) possible imposition of withholding taxes on dividends and interest; (4) possible seizure, expropriation or nationalization of assets; (5) more limited financial information about the foreign debt issuer or difficulties interpreting it because of foreign regulations and accounting standards; (6) lower liquidity and higher volatility in some foreign markets; (7) the impact of political, social or diplomatic events; (8) economic sanctions or other measures by the United States or other governments; (9) the difficulty of evaluating some foreign economic trends; and (10) the possibility that a foreign government could restrict an issuer from paying principal and interest on its debt obligations to investors outside the country. It may also be difficult to use foreign laws and courts to force a foreign issuer to make principal and interest payments on its debt obligations. In addition, the cost of servicing external debt will also generally be adversely affected by rising international interest rates because many external debt obligations bear interest at rates which are adjusted based upon international interest rates. To the extent the Fund invests a significant portion of its assets in the securities of companies in a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. Investment in the Fund may be more exposed to a single country or a region’s economic cycles, stock market valuations and currency, which could increase its risk compared with a more geographically diversified fund. In addition, political, social, regulatory, economic or environmental events that occur in a single country or region may adversely affect the values of that country or region’s securities and thus the holdings of the Fund. Mortgage-Backed Securities (“MBS”) and Asset-Backed Securities (“ABS”) Risk.
These securities generally can be prepaid at any time, and prepayments that occur either more quickly or more slowly than expected can adversely impact the value of such securities. They are also subject to extension risk, which is the risk that rising interest rates could cause mortgages or other obligations underlying the securities to be prepaid more slowly than expected, thereby lengthening the duration of such securities, increasing their sensitivity to interest rate changes and causing their prices to decline. The Fund may invest in MBS and ABS that are subordinate in right of payment and rank junior to other securities that are secured by or represent an ownership interest in the same pool of assets. In addition, many of the transactions in which such securities are issued have structural features that divert payments of interest and/or principal to more senior classes when the delinquency or loss experience of the pool exceeds certain levels. As a result, such securities may be more sensitive to risk of loss, write-downs, the non-fulfillment of repurchase obligations, over-advancing on a pool of loans and the costs of transferring servicing than senior classes of securities. Further, some of the MBS and ABS in which the Fund invests may be comprised of subprime loans. Subprime loans are those made to borrowers with lower credit ratings and/or shorter credit history, who are more likely to default on their loan obligations as compared to more credit-worthy borrowers. As a result, liquidity risk is even greater for MBS and ABS comprised of subprime loans. MBS, including CMBS and RMBS, may be negatively affected by the quality of the mortgages underlying such security, the credit quality of its issuer or guarantor, and the nature and structure of its credit support. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of MBS and will result in losses to the Fund. Privately issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages that are applicable to those mortgage-related securities that have government or government-sponsored entity guarantee. As a result, the mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored mortgage-related securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics.
Certain non-agency MBS are only entitled to payments provided for in the underlying agreement when and if funds are generated by the underlying mortgage loan pool. This likelihood of the return of interest and principal may be assessed as a credit matter. However, the holders of such non-agency MBS may not have the legal status of secured creditors, and therefore may not be able to accelerate a claim for payment on their securities or force a sale of the mortgage loan pool in the event that insufficient funds exist to pay such amounts on any date designated for such payment. The holders of such non-agency MBS do not typically have any right to remove a servicer solely as a result of a failure of the mortgage pool to perform as expected. In addition, there can be no assurance that originators and servicers of mortgage loans for non-agency MBS will not experience financial difficulties, which may increase the chances that these entities may default on their warehousing or other credit lines or become
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insolvent or bankrupt, thus increasing the likelihood that repurchase obligations will not be fulfilled and the potential for loss to holders of such non-agency MBS. Further, the prices of non-agency MBS may decline substantially, for reasons that may not be attributable to any of the other risks described herein. In particular, purchasing assets at what may appear to be “undervalued” levels is no guarantee that these assets will not be trading at even more “undervalued” levels at a time of valuation or at the time of sale. It may not be possible to predict, or to protect against, such “spread widening” risk.
The following principal risks are no longer included as stand-alone risks because they were consolidated into other principal risk factors as indicated below:
Stand-Alone Risk Removed |
Consolidated Into the Following Risk | |
Emerging Markets Risk |
Foreign/Emerging Market Issuer Risk | |
Non-U.S. Securities Risk |
Foreign/Emerging Market Issuer Risk |
Portfolio Managers
Nuveen Real Asset Income and Growth Fund (“JRI” or the “Fund”)
Effective February 11, 2025, James Kim was added as a portfolio manager of the Fund. Effective April 1, 2025, Jean Lin retired and is no longer a portfolio manager of the Fund. The biography of James Kim is presented below:
James is a portfolio manager for Nuveen’s leveraged finance team with a focus on the management of high yield mandates. James is the lead manager of the High Yield Income strategy and a co-manager on the High Yield, Real Asset Income and Credit Income strategies. He has also been the head of special situations, leading workouts and opportunistic investing for the leveraged finance platform for over five years.
Previously, James was co-head of global fixed income research and head of the leveraged finance research team, overseeing its daily investment process. He also served as the co-head of research at Nuveen affiliate Symphony Asset Management, leading the firm’s research team, daily investment process and opportunistic investments across its various mandates. Prior to this, he was a distressed generalist and an industry analyst responsible for a number of different industries, including energy, power, metals & mining and chemicals, providing long and short ideas across the capital structure. Prior to joining the firm, James was an associate at Greywolf Capital in its special situations group and an analyst at Watershed Asset Management. He began his career at Goldman Sachs, as an investment banking analyst both in the Strategy Group and Energy & Power Group.
James graduated with a B.S. in Economics from the University of Pennsylvania’s Wharton School of Business.
130
CHANGES OCCURRING AFTER THE FISCAL YEAR END
Portfolio Managers
Nuveen Multi-Asset Income Fund (“NMAI” or the “Fund”)
Effective January 7, 2026, Mark Zheng, James Kim and John Tribolet became portfolio managers of the Fund. Nathan Shetty and Anurag Dugar are no longer managers of the Fund. The biographies of Nathan Shetty and Anurag Dugar are presented below:
Mark Zheng
Mark Zheng is a portfolio manager for Nuveen, focused on Multi-Sector portfolio management. He is currently lead manager of a diversified, total return component portfolio for the CREF Real Estate Account. He is also a co-manager for the Stable Value Account. Mark is a member of the Core and Core-Plus Strategy teams. Mark provides strategic and quantitative analysis across a broad set of Multi-Sector Fixed Income strategies incorporating emerging markets, mortgage-backed securities, high yield bond and loans and non-agency structured products. Since joining the firm in 2010, he has held several positions, including co-manager of fixed income ETFs. He also served as a research analyst for investments in mortgage-backed securities and as a business analyst for fixed income business applications.
Prior to working in the financial services industry, Mark worked in the engineering industry, providing consulting services for global pharmaceutical, chemical, and manufacturing firms.
Mark graduated with a Bachelor’s degree in Chemical Engineering and Master’s degree in Engineering from The Cooper Union and an M.S. in Computational Finance from the Carnegie Mellon Tepper School of Business. He is a CFA charter holder and certified Financial Risk Manager (FRM), with membership in the CFA Institute and Global Association of Risk Professionals, respectively.
James Kim
James is a portfolio manager for Nuveen’s leveraged finance team with a focus on the management of high yield mandates. James is the lead manager of the High Yield Income strategy and a co-manager on the High Yield, Real Asset Income and Credit Income strategies. He has also been the head of special situations, leading workouts and opportunistic investing for the leveraged finance platform for over five years.
Previously, James was co-head of global fixed income research and head of the leveraged finance research team, overseeing its daily investment process. He also served as the co-head of research at Nuveen affiliate Symphony Asset Management, leading the firm’s research team, daily investment process and opportunistic investments across its various mandates. Prior to this, he was a distressed generalist and an industry analyst responsible for a number of different industries, including energy, power, metals & mining and chemicals, providing long and short ideas across the capital structure. Prior to joining the firm, James was an associate at Greywolf Capital in its special situations group and an analyst at Watershed Asset Management. He began his career at Goldman Sachs, as an investment banking analyst both in the Strategy Group and Energy & Power Group.
James graduated with a B.S. in Economics from the University of Pennsylvania’s Wharton School of Business.
John Tribolet
John is a portfolio manager for Nuveen’s equities team and has lead portfolio management responsibilities for several global and international strategies. He is also a member of the Equities Investment Council (EIC) with a focus on international investing.
Prior to his current role and since joining Nuveen in 2005, John has served as head of global equities research for Nuveen as well as a lead international and global portfolio manager on multiple strategies. Prior to joining Nuveen, John was co-head of the Loomis Sayles International Equity Fund and an international portfolio manager at Nicholas Applegate.
John graduated with a B.A. in Economics from Columbia University and an M.B.A., with honors, in Finance from the University of Chicago.
131
Shareholder Update
(continued)
ADDITIONAL DISCLOSURES FOR THE FUND AS OF THE FISCAL YEAR ENDED DECEMBER 31, 2025
This annual report includes additional disclosures for certain Funds that have, or intend to have, an effective shelf offering registration statement on file with the Securities and Exchange Commission (SEC) at the time this report was prepared. Refer to Note 6, Fund Shares of the Notes to Financial Statements for further details on the shelf offering program.
NUVEEN REAL ASSET INCOME AND GROWTH FUND (JRI)
SUMMARY OF FUND EXPENSES
The purpose of the tables and the example below are to help you understand all fees and expenses that you, as a common shareholder, would bear directly or indirectly. The tables show the expenses of the Fund as a percentage of the average net assets applicable to Common Shares and not as a percentage of total assets or managed assets.
Shareholder Transaction Expenses |
JRI | |||
Maximum Sales Charge (as a percentage of offering price) (1) |
1.00% | |||
Dividend Reinvestment Plan Fees (2) |
$2.50 | |||
| (1) | The maximum sales charge for offerings made at-the-market is 1.00%. If the Common Shares are sold to or through underwriters in an offering that is not made at-the-market, the applicable Prospectus Supplement will set forth any other applicable sales load. Additionally, the applicable Prospectus Supplement will set forth the offering expenses (if any) borne by Fund common shareholders. |
| (2) | You will be charged a $2.50 service charge and pay brokerage charges if you direct Computershare Inc. and Computershare Trust Company, N.A., as agent for the common shareholders, to sell your Common Shares held in a dividend reinvestment account. |
Annual Expenses (As a Percentage of Net Assets Attributable to Common Shares) (1) |
JRI | |||
Management Fees |
1.41% | |||
Interest and Other Related Expenses (2) |
2.34% | |||
Other Expenses (3) |
0.15% | |||
Total Annual Expenses |
3.90% | |||
| (1) | Stated as percentages of average net assets attributable to Common Shares for the fiscal year ended December 31, 2025. |
| (2) | Interest and Other Related Expenses reflect actual expenses and fees for leverage incurred by a Fund for the fiscal year ended December 31, 2025. The types of leverage used by the Fund during the fiscal year ended December 31, 2025 are described in the Fund Leverage and the Notes to Financial Statements sections of this annual report. Actual Interest and Other Related Expenses incurred in the future may be higher or lower. If short-term market interest rates rise in the future, and if the Fund continues to maintain leverage, the cost of which is tied to short-term interest rates, the Fund’s interest expenses on its short-term borrowings can be expected to rise in tandem. The Fund’s use of leverage will increase the amount of management fees paid to the Fund’s adviser and sub-advisor(s). |
| (3) | Other Expenses are based on estimated amounts for the current fiscal year. Expenses attributable to the Fund’s investments, if any, in other investment companies are currently estimated not to exceed 0.01%. |
Example
The following example illustrates the expenses, including the applicable transaction fees (referred to as the “Maximum Sales Charge” in the Shareholder Transaction Expenses table above), if any, that a common shareholder would pay on a $1,000 investment that is held for the time periods provided in the table. The example assumes that all dividends and other distributions are reinvested in the Fund and that the Fund’s Annual Expenses, as provided above, remain the same. The example also assume a 5% annual return. Actual expenses may be greater or less than those assumed. Moreover, the Fund’s actual rate of return may be greater or less than the hypothetical 5% return shown in the example.
Example # 1 (At-the-Market Transaction)
The following example assumes a transaction fee of 1.00%, as a percentage of the offering price.
1 Year |
3 Years |
5 Years |
10 Years | |||||
JRI |
$49 |
$128 |
$208 |
$418 |
The example should not be considered a representation of future expenses. Actual expenses may be greater or less than those shown above.
132
TRADING AND NET ASSET VALUE INFORMATION
The following table shows for the periods indicated: (i) the high and low sales prices for the Common Shares reported as of the end of the day on the NYSE, (ii) the corresponding NAV per share; and (iii) the premium/(discount) to NAV per share at which the Common Shares were trading as of such date.
JRI |
Closing Market Price per Common Share |
NAV per Common Share on Date of Market Price |
Premium/(Discount) on Date of Market Price | |||||||||
Fiscal Quarter End |
High |
Low |
High |
Low |
High |
Low | ||||||
December 2025 |
$14.33 |
$13.16 |
$13.76 |
$13.15 |
4.14% |
0.08% | ||||||
September 2025 |
$14.25 |
$13.03 |
$13.71 |
$13.38 |
3.94% |
(2.62)% | ||||||
June 2025 |
$13.50 |
$11.26 |
$13.56 |
$12.32 |
(0.44)% |
(8.60)% | ||||||
March 2025 |
$13.14 |
$12.04 |
$13.36 |
$12.91 |
(1.65)% |
(6.74)% | ||||||
December 2024 |
$13.61 |
$11.95 |
$14.02 |
$12.97 |
(2.92)% |
(7.86)% | ||||||
September 2024 |
$13.67 |
$12.21 |
$14.54 |
$13.21 |
(5.98)% |
(7.57)% | ||||||
June 2024 |
$12.21 |
$10.86 |
$13.18 |
$12.66 |
(7.36)% |
(14.22)% | ||||||
March 2024 |
$12.12 |
$11.35 |
$13.68 |
$13.25 |
(11.40)% |
(14.34)% | ||||||
The following table shows, as of December 31, 2025 the Fund’s: (i) NAV per Common Share, (ii) market price, (iii) percentage of premium/(discount) to NAV per Common Share and, (iv) net assets attributable to Common Shares.
December 31, 2025 |
JRI |
|||
NAV per Common Share |
$ 13.37 |
|||
Market Price |
$ 13.61 |
|||
Percentage of Premium/(Discount) to NAV per Common Share |
1.80% |
|||
Net Assets Attributable to Common Shares |
$ 366,997,292 |
|||
Shares of closed-end investment companies, including the Fund, may frequently trade at prices lower than NAV, the Fund’s Board of Trustees (Board) has currently determined that, at least annually, it will consider action that might be taken to reduce or eliminate any material discount from NAV in respect of Common Shares, which may include the repurchase of such shares in the open market or in private transactions, the making of a tender offer for such shares at NAV, or the conversion of the Fund to an open-end investment company. The Fund cannot assure you that its Board will decide to take any of these actions, or that share repurchases or tender offers will actually reduce market discount.
133
Shareholder Update
(continued)
SENIOR SECURITIES
The following table sets forth information regarding the Fund’s outstanding senior securities as of the end of the Fund’s last ten fiscal years, as applicable. The Fund’s senior securities during this time period are comprised of borrowings that constitute “senior securities” as defined in the Investment Company Act of 1940, as amended (1940 Act). The information in this table is derived from the financial statements. The financial statements for the year ended December 31, 2025 have been audited by PricewaterhouseCoopers LLP (“PwC”), independent registered public accounting firm. The financial statements with respect to the fiscal years ended prior to 2025, where applicable, have been audited by other auditors. The Funds’ audited financial statements for the year ended December 31, 2025, including the report of PwC thereon, and accompanying notes thereto, are included in this Annual Report.
JRI
Borrowings Outstanding at the End of Period | ||||
Year Ended 12/31: |
Aggregate Amount Outstanding (000) (1) |
Asset Coverage Per $1,000 (2) | ||
2025 |
$170,945 |
$3,147 | ||
2024 |
$178,945 |
$3,020 | ||
2023 |
$151,695 |
$3,474 | ||
2022 |
$166,985 |
$3,230 | ||
2021 |
$197,935 |
$3,414 | ||
2020 |
$166,035 |
$3,618 | ||
2019 |
$222,225 |
$3,477 | ||
2018 |
$215,225 |
$3,103 | ||
2017 |
$225,225 |
$3,406 | ||
2016 |
$73,275 |
$3,408 | ||
| (1) | Aggregate Amount Outstanding: Aggregate amount outstanding represents the principal amount outstanding or liquidation preference, if applicable, as of the end of the relevant fiscal year. |
| (2) | Asset Coverage Per $1,000: Asset coverage per $1,000 is calculated by subtracting the Fund’s liabilities and indebtedness not represented by senior securities from the Fund’s total assets, dividing the result by the aggregate amount of Fund’s borrowings (excluding temporary borrowings) then outstanding and multiplying the result by 1,000. For purpose of asset coverage above, senior securities consist of preferred shares or borrowings of a Fund and does not include derivative transactions and other investments that have the economic effect of leverage such as reverse repurchase agreements and tender option bonds. If the leverage effects of such investments were included, the asset coverage amounts presented would be lower. |
UNRESOLVED STAFF COMMENTS
The Fund believes that there are no material unresolved written comments, received 180 days or more before December 31, 2025, from the Staff of the Securities and Exchange Commission (SEC) regarding any of its periodic or current reports under the Securities Exchange Act or the Investment Company Act of 1940, or its registration statement.
134
Important Tax Information
(Unaudited)
As required by the Internal Revenue Code and Treasury Regulations, certain tax information, as detailed below, must be provided to shareholders. Shareholders are advised to consult their tax advisor with respect to the tax implications of their investment. The amounts listed below may differ from the actual amounts reported on Form 1099-DIV, which will be sent to shareholders shortly after calendar year end.
Long-Term Capital Gains
As of year end, each Fund designates the following distribution amounts, or maximum amount allowable, as being from net long-term capital gains pursuant to Section 852(b)(3) of the Internal Revenue Code:
Fund |
Net Long-Term Capital Gains |
|||
NMAI |
$– |
|||
JRI |
– |
|||
JRS |
– |
|||
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders:
Fund |
Percentage |
|||
NMAI |
32.3 |
% | ||
JRI |
17.9 |
|||
JRS |
9.9 |
|||
Qualified Dividend Income (QDI)
Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions treated as qualified dividend income for individuals pursuant to Section 1(h)(11) of the Internal Revenue Code:
Fund |
Percentage |
|||
NMAI |
75.4 |
% | ||
JRI |
46.8 |
|||
JRS |
9.9 |
|||
Qualified Interest Income (QII)
Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions treated as qualified interest income and/or short-term capital gain dividends pursuant to Section 871(k) of the Internal Revenue Code:
Fund |
1/1 to Current Year End Percentage |
|||
NMAI |
44.4 |
% | ||
JRI |
28.4 |
|||
JRS |
1.5 |
|||
135
Important Tax Information
(continued)
Qualified Business Income (QBI)
Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions treated as qualified business income for individuals pursuant to Section 199A of the Internal Revenue Code:
Fund |
Percentage |
|||
| NMAI |
|
2.5 |
% | |
| JRI |
|
17.3 |
| |
| JRS |
|
82.2 |
| |
163(j)
Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary dividends treated as Section 163(j) interest dividends pursuant to Section 163(j) of the Internal Revenue Code:
Fund |
Percentage |
|||
| NMAI |
|
56.0 |
% | |
| JRI |
|
33.0 |
| |
| JRS |
|
1.5 |
| |
136
Additional Fund Information
(Unaudited)
Board of Trustees | ||||||||||||
| Joseph A. Boateng |
Michael A. Forrester |
Thomas J. Kenny |
Amy B.R. Lancellotta |
Joanne T. Medero |
Albin F. Moschner |
John K. Nelson | ||||||
| Loren M. Starr |
Matthew Thornton III |
Terence J. Toth |
Margaret L. Wolff |
Robert L. Young |
||||||||
| Investment Adviser Nuveen Fund Advisors, LLC 333 West Wacker Drive Chicago, IL 60606 |
Custodian State Street Bank & Trust Company One Congress Street Suite 1 Boston, MA 02114-2016 |
Legal Counsel Chapman and Cutler LLP Chicago, IL 60606 |
Independent Registered Public Accounting Firm PricewaterhouseCoopers LLPOne North Wacker Drive Chicago, IL 60606 |
Transfer Agent and Shareholder Services Computershare Trust Company, N.A. 150 Royall Street Canton, MA 02021 (800) 257-8787 |
Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. You may obtain this information on the SEC’s website at http://www.sec.gov. Nuveen Funds’ Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov. CEO Certification Disclosure
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. Common Share Repurchases
Each Fund intends to repurchase, through its open-market share repurchase program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, each Fund repurchased shares of its common stock as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report. NMAI |
JRI |
JRS |
||||||||||
| Common shares repurchased |
0 |
0 |
0 |
|||||||||
FINRA BrokerCheck:
The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. 137
Glossary of Terms Used in this Report
(Unaudited)
19(a) Notice:
Section 19(a) of the Investment Company Act of 1940 requires that the payment of any distribution which is made from a source other than the fund’s net income be accompanied by a written notice that discloses the estimated sources of such payment. Average Annual Total Return:
This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered. Effective Leverage:
Effective leverage is a fund’s effective economic leverage, and includes both regulatory leverage (see below) and the leverage effects of certain derivative investments in the fund’s portfolio. Leverage:
Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. Net Asset Value (NAV) Per Share:
A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less its total liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares outstanding. Regulatory Leverage:
Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund’s capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940. 138
Board Members & Officers
(Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each Trustee oversees and other directorships they hold are set forth below.
| Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term (1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen By Board Member | ||||
Independent Trustees: |
||||||||
| Joseph A. Boateng 1963 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2019 Class II |
Chief Investment Officer, Casey Family Programs (since 2007); formerly, Director of U.S. Pension Plans, Johnson & Johnson (2002–2006); Board Member, Lumina Foundation (since 2019) and Waterside School (since 2021); Board Member (2012–2019) and Emeritus Board Member (since 2020), Year-Up Puget Sound; Investment Advisory Committee Member and Former Chair (since 2007), Seattle City Employees’ Retirement System; Investment Committee Member (since 2019), The Seattle Foundation; Trustee (2018–2023), the College Retirement Equities Fund; Manager (2019–2023), TIAA Separate Account VA-1. |
216 | ||||
| Michael A. Forrester 1967 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2007 Class I |
Formerly, Chief Executive Officer (2014–2021) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC; Director, Aflac Incorporated (since 2025); Trustee, Dexter Southfield School (since 2019); Member (since 2020), Governing Council of the Independent Directors Council (IDC); Trustee, the College Retirement Equities Fund and Manager, TIAA Separate Account VA-1 (2007–2023). |
216 | ||||
| Thomas J. Kenny 1963 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2011 Class I |
Formerly, Advisory Director (2010–2011), Partner (2004–2010), Managing Director (1999–2004) and Co-Head of Global Cash and Fixed Income Portfolio Management Team (2002–2010), Goldman Sachs Asset Management; Director (since 2015) and Chair of the Finance and Investment Committee (since 2018), Aflac Incorporated; Director (since 2018), ParentSquare; formerly, Director (2021–2022) and Finance Committee Chair (2016–2022), Sansum Clinic; formerly, Advisory Board Member (2017–2019), B’Box; formerly, Member (2011–2012), the University of California at Santa Barbara Arts and Lectures Advisory Council; formerly, Investment Committee Member (2012–2020), Cottage Health System; formerly, Board member (2009–2019) and President of the Board (2014–2018), Crane Country Day School; Trustee (2011–2023) and Chairman (2017–2023), the College Retirement Equities Fund; Manager (2011–2023) and Chairman (2017–2023), TIAA Separate Account VA-1. |
217 | ||||
| Amy B. R. Lancellotta 1959 333 W. Wacker Drive Chicago, IL 60606 |
Board Member |
2021 Class II |
Formerly, Managing Director, IDC (supports the fund independent director community and is part of the Investment Company Institute (ICI), which represents regulated investment companies) (2006-2019); formerly, various positions with ICI (1989-2006); President (since 2023) and Member (since 2020) of the Board of Directors, Jewish Coalition Against Domestic Abuse (JCADA). |
217 |
139
Board Members & Officers
(continued)
| Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term (1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen By Board Member | ||||
| Joanne T. Medero 1954 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2021 Class III |
Formerly, Managing Director, Government Relations and Public Policy (2009-2020) and Senior Advisor to the Vice Chairman (2018-2020), BlackRock, Inc. (global investment management firm); formerly, Managing Director, Global Head of Government Relations and Public Policy, Barclays Group (IBIM) (investment banking, investment management and wealth management businesses) (2006-2009); formerly, Managing Director, Global General Counsel and Corporate Secretary, Barclays Global Investors (global investment management firm) (1996-2006); formerly, Partner, Orrick, Herrington & Sutcliffe LLP (law firm) (1993-1995); formerly, General Counsel, Commodity Futures Trading Commission (government agency overseeing U.S. derivatives markets) (1989-1993); formerly, Deputy Associate Director/Associate Director for Legal and Financial Affairs, Office of Presidential Personnel, The White House (1986-1989); Member of the Board of Directors, Baltic-American Freedom Foundation (seeks to provide opportunities for citizens of the Baltic states to gain education and professional development through exchanges in the U.S.) (since 2019). |
217 | ||||
| Albin F. Moschner 1952 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2016 Class III |
Founder and Chief Executive Officer, Northcroft Partners, LLC, (management consulting) (since 2012); formerly, Chairman (2019), and Director (2012-2019), USA Technologies, Inc., (provider of solutions and services to facilitate electronic payment transactions); formerly, Director, Wintrust Financial Corporation (1996-2016); previously, held positions at Leap Wireless International, Inc. (consumer wireless services), including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (telecommunication services) (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (internet technology provider) (1996-1997); formerly, various executive positions (1991-1996) including Chief Executive Officer (1995-1996) of Zenith Electronics Corporation (consumer electronics). |
217 | ||||
| John K. Nelson 1962 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2013 Class II |
Formerly, Member of Board of Directors of Core12 LLC (2008–2023) (private firm which develops branding, marketing and communications strategies for clients); formerly, Member of The President’s Council of Fordham University (2010–2019); formerly, Director of the Curran Center for Catholic American Studies (2009–2018); formerly, senior external advisor to the Financial Services practice of Deloitte Consulting LLP. (2012–2014); formerly, Trustee and Chairman of the Board of Trustees of Marian University (2010–2013); formerly Chief Executive Officer of ABN AMRO Bank N.V., North America, and Global Head of the Financial Markets Division (2007–2008), with various executive leadership roles in ABN AMRO Bank N.V. between 1996 and 2007. | 217 |
140
| Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term (1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen By Board Member | ||||
| Loren M. Starr 1961 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2022 Class III |
Independent Consultant/Advisor (since 2021); formerly, Vice Chair, Senior Managing Director (2020–2021), Chief Financial Officer, Senior Managing Director (2005–2020), Invesco Ltd.; Director (since 2023) and Chair of the Board (since 2025), formerly, Chair of the Audit Committee (2024-2025), AMG; formerly, Chair and Member of the Board of Directors (2014–2021), Georgia Leadership Institute for School Improvement (GLISI); formerly, Chair and Member of the Board of Trustees (2014–2018), Georgia Council on Economic Education (GCEE); Trustee, the College Retirement Equities Fund and Manager, TIAA Separate Account VA-1 (2022–2023). |
216 | ||||
| Matthew Thornton III 1958 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2020 Class III |
Formerly, Executive Vice President and Chief Operating Officer (2018-2019), FedEx Freight Corporation, a subsidiary of FedEx Corporation (FedEx) (provider of transportation, e-commerce and business services through its portfolio of companies); formerly, Senior Vice President, U.S. Operations (2006-2018), Federal Express Corporation, a subsidiary of FedEx; formerly Member of the Board of Directors (2012-2018), Safe Kids Worldwide ® (a non-profit organization dedicated to preventing childhood injuries). Member of the Board of Directors (since 2014), The Sherwin-Williams Company (develops, manufactures, distributes and sells paints, coatings and related products); Director (since 2020), Crown Castle International (provider of communications infrastructure). |
217 | ||||
| Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2008 Class II |
Formerly, a Co–Founding Partner, Promus Capital (investment advisory firm) (2008–2017); formerly, Director, Quality Control Corporation (manufacturing) (2012–2021); formerly, Chair and Member of the Board of Directors (2021–2024), Kehrein Center for the Arts (philanthropy); Member of the Board of Directors (since 2008), Catalyst Schools of Chicago (philanthropy); Member of the Board of Directors (since 2012), formerly, Investment Committee Chair (2017–2022), Mather Foundation Board (philanthropy); formerly, Member (2005–2016), Chicago Fellowship Board (philanthropy); formerly, Director, Fulcrum IT Services LLC (information technology services firm to government entities) (2010–2019); formerly, Director, LogicMark LLC (health services) (2012–2016); formerly, Director, Legal & General Investment Management America, Inc. (asset management) (2008–2013); formerly, CEO and President, Northern Trust Global Investments (financial services) (2004–2007); Executive Vice President, Quantitative Management & Securities Lending (2000–2004); prior thereto, various positions with Northern Trust Company (financial services) (since 1994); formerly, Member, Northern Trust Mutual Funds Board (2005–2007), Northern Trust Global Investments Board (2004–2007), Northern Trust Japan Board (2004–2007), Northern Trust Securities Inc. Board (2003–2007) and Northern Trust Hong Kong Board (1997–2004). | 217 |
141
Board Members & Officers
(continued)
| Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed and Term (1) |
Principal Occupation(s) Including other Directorships During Past 5 Years |
Number of Portfolios in Fund Complex Overseen By Board Member | ||||
| Margaret L. Wolff 1955 333 W. Wacker Drive Chicago, IL 60606 |
Board Member | 2016 Class I |
Formerly, member of the Board of Directors (2013-2017) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (legal services) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member of the Board of Trustees (since 2004) formerly, Chair (2015-2022) of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. |
217 | ||||
| Robert L. Young 1963 333 W. Wacker Drive Chicago, IL 60606 |
Chair and Board Member | 2017 Class I |
Formerly, Chief Operating Officer and Director, J.P. Morgan Investment Management Inc. (financial services) (2010-2016); formerly, President and Principal Executive Officer (2013-2016), and Senior Vice President and Chief Operating Officer (2005-2010), of J.P. Morgan Funds; formerly, Director and various officer positions for J.P. Morgan Investment Management Inc. (formerly, JPMorgan Funds Management, Inc. and formerly, One Group Administrative Services) and JPMorgan Distribution Services, Inc. (financial services) (formerly, One Group Dealer Services, Inc.) (1999-2017). |
217 |
142
| Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed (2) |
Principal Occupation(s) Including other Directorships During Past 5 Years | |||
Officers of the Funds: |
||||||
| David J. Lamb 1963 333 W. Wacker Drive Chicago, IL 60606 |
Chief Administrative Officer (Principal Executive Officer) |
2015 |
Senior Managing Director of Nuveen Fund Advisors, LLC, Nuveen Securities, LLC and Nuveen; has previously held various positions with Nuveen. | |||
| Brett E. Black 1972 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Chief Compliance Officer |
2022 |
Managing Director, Chief Compliance Officer of Nuveen; formerly, Vice President (2014-2022), Chief Compliance Officer and Anti-Money Laundering Compliance Officer (2017-2022) of BMO Funds, Inc. | |||
| Marc Cardella 1984 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President and Controller (Principal Financial Officer) |
2024 |
Senior Managing Director, Head of Public Investment Finance of Nuveen; Senior Managing Director of Nuveen Fund Advisors, LLC, Nuveen Asset Management, LLC, Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC, Managing Director of Teachers Insurance and Annuity Association of America and TIAA SMA Strategies LLC; Principal Financial Officer, Principal Accounting Officer and Treasurer of TIAA Separate Account VA-1 and the College Retirement Equities Fund; Senior Managing Director, Brooklyn Artificial Intelligence, Inc. and Brooklyn Investment Group, LLC. | |||
| Joseph T. Castro 1964 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2025 |
Executive Vice President, Chief Risk and Compliance Officer, formerly, Senior Managing Director and Head of Compliance, Nuveen; Executive Vice President and Chief Risk and Compliance Officer, formerly, Senior Managing Director, Nuveen Securities, LLC and Nuveen, LLC; formerly, Senior Managing Director, Nuveen Fund Advisors, LLC. | |||
| Mark J. Czarniecki 1979 901 Marquette Avenue Minneapolis, MN 55402 |
Vice President and Assistant Secretary |
2013 |
Managing Director and Assistant Secretary of Nuveen Securities, LLC and Nuveen Fund Advisors, LLC; Managing Director and Associate General Counsel of Nuveen; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC; has previously held various positions with Nuveen; Managing Director, Associate General Counsel and Assistant Secretary of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; Managing Director, General Counsel and Assistant Secretary, Brooklyn Artificial Intelligence, Inc. and Brooklyn Investment Group, LLC. | |||
| Jeremy D. Franklin 1983 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President and Assistant Secretary |
2024 |
Managing Director and Assistant Secretary, Nuveen Fund Advisors, LLC; Managing Director, Associate General Counsel and Assistant Secretary, Nuveen Asset Management, LLC, Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; Vice President and Associate General Counsel, Teachers Insurance and Annuity Association of America; Vice President and Assistant Secretary, TIAA-CREF Funds and TIAA-CREF Life Funds; Vice President, Associate General Counsel, and Assistant Secretary, TIAA Separate Account VA-1 and College Retirement Equities Fund. | |||
| Diana R. Gonzalez 1978 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President and Assistant Secretary |
2017 |
Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC; Vice President, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC, Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; Vice President and Associate General Counsel of Nuveen. | |||
| Nathaniel T. Jones 1979 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2016 |
Senior Managing Director, Head of Public Product of Nuveen; President. formerly, Senior Managing Director, of Nuveen Fund Advisors, LLC; has previously held various positions with Nuveen; Chartered Financial Analyst. | |||
| Brian H. Lawrence 1982 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President and Assistant Secretary |
2023 |
Vice President and Associate General Counsel of Nuveen; Vice President, Associate General Counsel and Assistant Secretary of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; formerly Corporate Counsel of Franklin Templeton (2018-2022). | |||
| Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 |
Vice President |
2002 |
Managing Director of Nuveen Securities, LLC. |
143
Board Members & Officers
(continued)
| Name, Year of Birth & Address |
Position(s) Held with the Funds |
Year First Elected or Appointed (2) |
Principal Occupation(s) Including other Directorships During Past 5 Years | |||
| Brian J. Lockhart 1974 333 W. Wacker Drive Chicago, IL 60606 |
Vice President | 2019 | Senior Managing Director and Head of Investment Oversight of Nuveen; Senior Managing Director of Nuveen Fund Advisors, LLC; has previously held various positions with Nuveen; Chartered Financial Analyst and Certified Financial Risk Manager. | |||
| John M. McCann 1975 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President and Assistant Secretary | 2022 | Senior Managing Director, Division General Counsel of Nuveen; Senior Managing Director, General Counsel and Secretary of Nuveen Fund Advisors, LLC; Senior Managing Director, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; Managing Director and Assistant Secretary of TIAA SMA Strategies LLC; Managing Director, Associate General Counsel and Assistant Secretary of College Retirement Equities Fund, TIAA Separate Account VA-1, TIAA-CREF Funds, TIAA-CREF Life Funds, Teachers Insurance and Annuity Association of America and Nuveen Alternative Advisors LLC; Senior Managing Director, Associate General Counsel and Assistant Secretary, Brooklyn Artificial Intelligence, Inc. and Brooklyn Investment Group, LLC; has previously held various positions with Nuveen/TIAA. | |||
| Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Assistant Secretary | 2007 | Executive Vice President, Secretary and General Counsel of Nuveen Investments, Inc.; Executive Vice President and Assistant Secretary of Nuveen Securities, LLC and Nuveen Fund Advisors, LLC; Executive Vice President and Secretary of Nuveen Asset Management, LLC, Teachers Advisors, LLC, TIAA-CREF Investment Management, LLC and Nuveen Alternative Investments, LLC; Executive Vice President, Associate General Counsel and Assistant Secretary of TIAA-CREF Funds and TIAA-CREF Life Funds; has previously held various positions with Nuveen; Vice President and Secretary of Winslow Capital Management, LLC; Executive Vice President, Brooklyn Artificial Intelligence, Inc. and Brooklyn Investment Group, LLC; formerly, Vice President (2007-2021) and Secretary (2016-2021) of NWQ Investment Management Company, LLC and Santa Barbara Asset Management, LLC. | |||
| R. Tanner Page 1985 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Treasurer | 2025 | Managing Director, formerly, Vice President of Nuveen; has previously held various positions with Nuveen. | |||
| William A. Siffermann 1975 333 W. Wacker Drive Chicago, IL 60606 |
Vice President | 2017 | Senior Managing Director of Nuveen. | |||
| Mark L. Winget 1968 333 W. Wacker Drive Chicago, IL 60606 |
Vice President and Secretary | 2008 | Vice President and Assistant Secretary of Nuveen Securities, LLC and Nuveen Fund Advisors, LLC; Vice President, Associate General Counsel and Assistant Secretary of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC and Nuveen Asset Management, LLC; Vice President and Associate General Counsel of Nuveen; Vice President, Associate General Counsel and Assistant Secretary, Brooklyn Artificial Intelligence, Inc. and Brooklyn Investment Group, LLC. | |||
| Rachael Zufall 1973 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 |
Vice President and Assistant Secretary | 2022 | Managing Director and Assistant Secretary of Nuveen Fund Advisors, LLC; Managing Director, Associate General Counsel and Assistant Secretary of the College Retirement Equities Fund, TIAA Separate Account VA-1, TIAA-CREF Funds and TIAA-CREF Life Funds; Managing Director, Associate General Counsel and Assistant Secretary of Teacher Advisors, LLC and TIAA-CREF Investment Management, LLC; Managing Director of Nuveen, LLC and of TIAA. |
| (1) | The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares, when applicable, to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen complex. |
| (2) | Officers serve indefinite terms until their successor has been duly elected and qualified, their death or their resignation or removal. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. |
144
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Nuveen:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.
Find out how we can help you.
To learn more about how the products and services of Nuveen may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/closed-end-funds
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Nuveen Securities, LLC, member FINRA and SIPC |
333 West Wacker Drive |
Chicago, IL 60606 |
www.nuveen.com |
EAN-C-1225P 5093099 |
| Item 2. | Code of Ethics. |
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the code during the period covered by this report. Upon request, a copy of the registrant’s code of ethics is available without charge by calling 800-257-8787.
| Item 3. | Audit Committee Financial Expert. |
As of the end of the period covered by this report, the registrant’s Board of Directors or Trustees (“Board”) had determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The members of the registrant’s audit committee that have been designated as audit committee financial experts are Joseph A. Boateng, John K. Nelson and Loren M. Starr, who are “independent” for purposes of Item 3 of Form N-CSR.
Mr. Boateng has served as the Chief Investment Officer for Casey Family Programs since 2007. He was previously Director of U.S. Pension Plans for Johnson & Johnson from 2002-2006. Mr. Boateng is a board member of the Lumina Foundation and Waterside School, an emeritus board member of Year Up Puget Sound, member of the Investment Advisory Committee and former Chair for the Seattle City Employees’ Retirement System, and an Investment Committee Member for The Seattle Foundation. Mr. Boateng previously served on the Board of Trustees for the College Retirement Equities Fund (2018-2023) and on the Management Committee for TIAA Separate Account VA-1 (2019-2023).
Mr. Nelson formerly served on the Board of Directors of Core12, LLC from 2008 to 2023, a private firm which develops branding, marketing, and communications strategies for clients. Mr. Nelson has extensive experience in global banking and markets, having served in several senior executive positions with ABN AMRO Holdings N.V. and its affiliated entities and predecessors, including LaSalle Bank Corporation from 1996 to 2008, ultimately serving as Chief Executive Officer of ABN AMRO N.V. North America. During his tenure at the bank, he also served as Global Head of its Financial Markets Division, which encompassed the bank’s Currency, Commodity, Fixed Income, Emerging Markets, and Derivatives businesses. He was a member of the Foreign Exchange Committee of the Federal Reserve Bank of the United States and during his tenure with ABN AMRO served as the bank’s representative on various committees of The Bank of Canada, European Central Bank, and The Bank of England. Mr. Nelson previously served as a senior, external advisor to the financial services practice of Deloitte Consulting LLP. (2012-2014).
Mr. Starr was Vice Chair, Senior Managing Director from 2020 to 2021, and Chief Financial Officer, Senior Managing Director from 2005 to 2020, for Invesco Ltd. Mr. Starr is also a Director and Chair of the Board for AMG. He is former Chair and member of the Board of Directors, Georgia Leadership Institute for School Improvement (GLISI); former Chair and member of the Board of Trustees, Georgia Council on Economic Education (GCEE). Mr. Starr previously served on the Board of Trustees for the College Retirement Equities Fund and on the Management Committee for TIAA Separate Account VA-1 (2022-2023).
| Item 4. | Principal Accountant Fees and Services. |
Nuveen Real Asset Income and Growth Fund
The following tables show the amount of fees that PricewaterhouseCoopers LLP (“PwC”), the Registrant’s current independent registered public accounting firm, billed to the Registrant during the Registrant’s fiscal year ended December 31, 2025, and the amount of fees that KPMG LLP (“KPMG”), the Registrant’s former independent registered public accounting firm, billed to the Registrant during the Registrant’s fiscal year ended December 31, 2024. The Audit Committee approved in advance all audit services and non-audit services that PwC and KPMG provided to the Registrant, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Registrant waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Registrant during the fiscal year in which the services are provided; (B) the Registrant did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chair.
SERVICES THAT THE REGISTRANT’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM BILLED TO THE REGISTRANT
| Fiscal Year Ended5 | Audit Fees Billed to Registrant1 |
Audit-Related Fees Billed to Registrant2 |
Tax Fees Billed to Registrant3 |
All Other Fees Billed to Registrant4 |
||||||||||||
| December 31, 2025 (PwC) |
$31,383 | $7,000 | $0 | $0 | ||||||||||||
|
|
|
|||||||||||||||
| Percentage approved pursuant to pre-approval exception | 0% | 0% | 0% | 0% | ||||||||||||
|
|
|
|||||||||||||||
| December 31, 2024 (KPMG) |
$31,400 | $0 | $0 | $0 | ||||||||||||
|
|
|
|||||||||||||||
| Percentage approved pursuant to pre-approval exception | 0% | 0% | 0% | 0% | ||||||||||||
|
|
|
|||||||||||||||
| 1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Registrant’s annual financial statements and services provided in connection with statutory and regulatory filings. |
| 2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Registrant’s common shares and leverage. |
| 3 | “Tax Fees” are the aggregate fees billed for professional services for tax compliance, tax advice, and tax planning. |
| 4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. |
| 5 | The Registrant changed audit firm from KPMG to PwC on October 24, 2024. |
SERVICES THAT THE REGISTRANT’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM BILLED TO THE ADVISER AND AFFILIATED REGISTRANT SERVICE PROVIDERS
The following tables show the amount of fees billed by PwC to Nuveen Fund Advisors, LLC (the “Adviser”), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Registrant (“Affiliated Fund Service Provider”), for engagements directly related to the Registrant’s operations and financial reporting, during the Registrant’s fiscal year ended December 31, 2025, and the amount of fees billed by KPMG to the Adviser and any Affiliated Fund Service Provider, for engagements directly related to the Registrant’s operations and financial reporting, during the Registrant’s fiscal year ended December 31, 2024.
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Registrant, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Registrant did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the Registrant’s audit is completed.
| Fiscal Year Ended | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers |
Tax Fees Billed to Adviser and Affiliated Fund Service Providers |
All Other Fees Billed to Adviser and Affiliated Fund Service Providers |
|||||||||
| December 31, 2025 (PwC) |
$0 | $0 | $0 | |||||||||
|
|
|
|||||||||||
| Percentage approved pursuant to pre-approval exception |
0% | 0% | 0% | |||||||||
|
|
|
|||||||||||
| December 31, 2024 (KPMG) |
$0 | $0 | $0 | |||||||||
|
|
|
|||||||||||
| Percentage approved pursuant to pre-approval exception |
0% | 0% | 0% | |||||||||
|
|
|
|||||||||||
NON-AUDIT SERVICES
The following table shows the amount of fees that PwC billed during the Registrant’s fiscal year ended December 31, 2025 for non-audit services, and the amount of fees that KPMG billed during the Registrant’s fiscal year ended December 31, 2024 for non-audit services. The Audit Committee is required to pre-approve non-audit services that the Registrant’s independent registered public accounting firm provides to the Adviser and any Affiliated Fund Service Provider, if the engagement related directly to the Registrant’s operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from PwC and KPMG about any non-audit services rendered during the Registrant’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PwC’s and KPMG’s independence.
| Fiscal Year Ended | Total Non-Audit Fees Billed to Registrant |
Total Non-Audit Fees Billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Registrant) |
Total Non-Audit Fees Billed to Adviser and Affiliated Fund Service Providers (all other engagements) |
Total | ||||||||||||
| December 31, 2025 (PwC) |
$0 | $0 | $11,542,000 | $11,542,000 | ||||||||||||
| December 31, 2024 (KPMG) |
$0 | $0 | $0 | $0 | ||||||||||||
“Non-Audit Fees billed to Registrant” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to the Registrant in their respective amounts from the previous table.
Less than 50 percent of the hours expended on the independent registered public accounting firm’s engagement to audit the Registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the independent registered public accounting firm’s full-time, permanent employees.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Registrant by the Registrant’s independent registered public accounting firm and (ii) all audit and non-audit services to be performed by the Registrant’s independent registered public accounting firm for the Affiliated Fund Service Providers with respect to the operations and financial reporting of the Registrant.
Item 4(i) and Item 4(j) are not applicable to the Registrant.
| Item 5. | Audit Committee of Listed Registrants. |
The registrant’s Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Joseph A. Boateng, Amy B. R. Lancellotta, John K. Nelson, Chair, Loren M. Starr, Terence J. Toth, Matthew Thornton III and Margaret L. Wolff.
| Item 6. | Investments. |
| (a) | Schedule of Investments is included as part of the Portfolio of Investments filed under Item 1 of this Form N-CSR. |
| (b) | Not applicable. |
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
Not applicable.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Nuveen Fund Advisors, LLC is the registrant’s investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio managers at the Sub-Adviser:
(a)(1) Portfolio Manager Biographies
As of the date of filing this report, the following individuals at the Sub-Adviser (the “Portfolio Managers”) have primary responsibility for the day-to-day implementation of the registrant’s investment strategies:
Brenda A. Langenfeld, CFA, is a portfolio manager for Nuveen’s global fixed income team and a member of the preferred securities sector team. She is the lead manager for Nuveen’s preferred and income-focused closed-end funds and portfolio manager of the Preferred Securities and Income strategy. She joined the preferred securities sector team in 2011. Brenda has been a co-manager for the Real Asset Income strategy since 2015, which invests in income generating debt and equity securities from both the real estate and infrastructure segments. In 2020 she became co-manager of the Credit Income strategy. Prior to her portfolio management roles, Brenda was a member of the high-grade credit sector team, responsible for trading corporate bonds. Previously, she was a member of the securitized debt sector team, trading mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities.
Noah P. Hauser, CFA, serves as Head of Infrastructure Investments for Nuveen, overseeing strategy, investment process and performance of the firm’s infrastructure platform and also serves as a portfolio manager for Nuveen’s public global infrastructure strategies. Offerings span both the traditional public real assets and responsible investing-focused investment styles. Previously, Noah served as a senior research analyst and head of North American utilities. Prior to joining Nuveen in 2015, Noah worked at Xcel Energy as the director of investor relations. Previously, he was a buy-side investment analyst for an energy-focused, relative value equity strategy at Decade Capital Management, a Millennium Group company. In that role, Noah performed detailed analysis on regulated utilities, independent power producers, pipelines and master limited partnerships. He began his career working as a sell-side equity analyst covering regulated utilities and power companies at Barclays Capital and Lehman Brothers. Noah began working in the investment industry in 2008.
Tryg T. Sarsland, Managing Director and Director of Global Infrastructure Research at Nuveen, is a portfolio manager for Nuveen’s public global infrastructure and real asset income strategies. Offerings span both the traditional public real assets and responsible investing-focused investment styles. In addition, he is the director of research—infrastructure, overseeing direct management of the U.S.-based equity research analysts dedicated to global infrastructure and real asset income. Tryg also maintains analyst responsibilities for the global infrastructure and real asset income strategies, specializing in non-U.S. utilities. Before joining the firm in 2011, he was vice president and director of project finance at National Wind, LLC, where he spearheaded the development, procurement and investment of funds for wind energy projects. He was also vice president with Meridian Companies, LLC, and Standard Chartered Bank.
Benjamin T. Kerl, Managing Director at Nuveen, is a portfolio manager for Nuveen’s global real estate securities and global real estate carbon reduction strategies. He is also head of real estate investments for the Real Assets investment team at Nuveen. He specializes in real estate equities in the U.K., Europe and Canada. From 2012 through 2017, Ben also covered the multi-family and healthcare sectors for the firm’s Real Estate Securities strategy. Ben began working in the investment industry in 2012 when he joined the firm. Before joining the firm, he worked for eight years in the real estate and renewable energy industries. Most recently, Ben was an independent consultant providing project development services to national and international wind energy
developers. He started his career as a real estate development manager at Lander Group, where he managed infill multifamily and commercial projects from 2005 to 2007.
James Kim is a portfolio manager for Nuveen’s leveraged finance team with a focus on the management of high yield mandates. James is the lead manager of the High Yield Income strategy and a co-manager on the High Yield, Real Asset Income and Credit Income strategies. He is also head of special situations, leading workouts and opportunistic investing for the leveraged finance platform. Previously, James was co-head of global fixed income research and head of the leveraged finance research team, overseeing its daily investment process. He also served as the co-head of research at Nuveen affiliate Symphony Asset Management, leading the firm’s research team, daily investment process and opportunistic investments across its various mandates. Prior to this, he was a distressed generalist and an industry analyst responsible for a number of different industries, including energy, power, metals & mining and chemicals, providing long and short ideas across the capital structure. Prior to joining the firm, James was an associate at Greywolf Capital in its special situations group and an analyst at Watershed Asset Management. He began his career at Goldman Sachs, as an investment banking analyst both in the Strategy Group and Energy & Power Group.
(a)(2) Other Accounts Managed by Portfolio Managers
Other Accounts Managed. In addition to managing the registrant, the Portfolio Managers are also primarily responsible for the day-to-day portfolio management of the following accounts:
| Portfolio Manager | Type of Account Managed |
Number of Accounts |
Assets* | |||
| Brenda A. Langenfeld |
Registered Investment Company | 9 | $13.40 billion | |||
| Other Pooled Investment Vehicles | 1 | $3.46 million | ||||
| Other Accounts | 4,480 | $4.56 billion | ||||
| Noah P. Hauser |
Registered Investment Company | 3 | $1.74 billion | |||
| Other Pooled Investment Vehicles | 6 | $1.42 billion | ||||
| Other Accounts | 2 | $186.58 million | ||||
| Tryg T. Sarsland |
Registered Investment Company | 3 | $1.74 billion | |||
| Other Pooled Investment Vehicles | 6 | $1.42 billion | ||||
| Other Accounts | 2 | $186.58 million | ||||
| Benjamin T. Kerl |
Registered Investment Company | 7 | $5.15 billion | |||
| Other Pooled Investment Vehicles | 7 | $1.54 billion | ||||
| Other Accounts | 5 | $726.23 million | ||||
| James Kim |
Registered Investment Company | 9 | $8.13 billion | |||
| Other Pooled Investment Vehicles | 2 | $71.64 million | ||||
| Other Accounts | 3 | $152.51 million |
| * | Assets are as of December 31, 2025. None of the assets in these accounts are subject to an advisory fee based on performance. |
Potential Material Conflicts of Interest
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented a number of potential conflicts, including, among others, those discussed below.
The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Nuveen Asset Management seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.
If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Nuveen Asset Management has adopted procedures for allocating limited opportunities across multiple accounts.
With respect to many of its clients’ accounts, Nuveen Asset Management determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, Nuveen Asset Management may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Nuveen Asset Management may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.
Some clients are subject to different regulations. As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques or transactions or to engage in these transactions to the same extent as the other accounts managed by a portfolio manager. Finally, the appearance of a conflict of interest may arise where Nuveen Asset Management has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.
Conflicts of interest may also arise when the Sub-Adviser invests one or more of its client accounts in different or multiple parts of the same issuer’s capital structure, including investments in public versus private securities, debt versus equity, or senior versus junior/subordinated debt, or otherwise where there are different or inconsistent rights or benefits. Decisions or actions such as investing, trading, proxy voting, exercising, waiving or amending rights or covenants, workout activity, or serving on a board, committee or other involvement in governance may result in conflicts of interest between clients holding different securities or investments. Generally, individual portfolio managers will seek to act in a manner that they believe serves the best interest of the accounts they manage. In cases where a portfolio manager or team faces a conflict among its client accounts, it will seek to act in a manner that it believes best reflects its overall fiduciary duty, which may result in relative advantages or disadvantages for particular accounts.
Nuveen Asset Management has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
Nuveen Asset Management or its affiliates, including TIAA, sponsor an array of financial products for retirement and other investment goals, and provide services worldwide to a diverse customer base. Accordingly, from time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other investment activities because of regulatory, legal or contractual restrictions that arise due to another client account’s investments and/or the internal policies of Nuveen Asset Management, TIAA or its affiliates designed to comply with such restrictions. As a result, there may be periods, for example, when Nuveen Asset Management will not initiate or recommend certain types of transactions in certain securities or instruments with respect to which investment limits have been reached.
The investment activities of Nuveen Asset Management or its affiliates may also limit the investment strategies and rights of the Funds. For example, in certain circumstances where the Funds invest in securities issued by companies that operate in certain regulated industries, in certain emerging or international markets, or are subject to corporate or regulatory ownership definitions, or invest in certain futures and derivative transactions, there may be limits on the aggregate amount invested by Nuveen Asset Management or its affiliates for the Funds and other client accounts that may not be exceeded without the grant of a license or other regulatory or corporate consent. If certain aggregate ownership thresholds are reached or certain transactions undertaken, the ability of Nuveen Asset Management, on behalf of the Funds or other client accounts, to purchase or dispose of investments or
exercise rights or undertake business transactions may be restricted by regulation or otherwise impaired. As a result, Nuveen Asset Management, on behalf of the Funds or other client accounts, may limit purchases, sell existing investments, or otherwise restrict or limit the exercise of rights (including voting rights) when Nuveen Asset Management, in its sole discretion, deems it appropriate in light of potential regulatory or other restrictions on ownership or other consequences resulting from reaching investment thresholds.
(a)(3) Fund Manager Compensation
As of the most recently completed fiscal year end, the primary Portfolio Managers’ compensation is as follows:
Portfolio manager compensation consists primarily of base salary and variable components consisting of (i) a cash bonus; (ii) a long-term performance award; and (iii) participation in a profits interest plan.
Base salary. A portfolio manager’s base salary is determined based upon an analysis of the portfolio manager’s general performance, experience and market levels of base pay for such position.
Cash bonus. A portfolio manager is eligible to receive an annual cash bonus that is based on three variables: risk-adjusted investment performance relative to benchmark generally measured over the most recent one, three and five year periods (unless the portfolio manager’s tenure is shorter), ranking versus Morningstar peer funds generally measured over the most recent one, three and five year periods (unless the portfolio manager’s tenure is shorter), and management and peer reviews.
Long-term performance award. A portfolio manager is eligible to receive a long-term performance award that vests after three years. The amount of the award when granted is based on the same factors used in determining the cash bonus. The value of the award at the completion of the three-year vesting period is adjusted based on the risk-adjusted investment performance of Fund(s) managed by the portfolio manager during the vesting period and the performance of the TIAA organization as a whole.
Profits interest plan. Portfolio managers are eligible to receive profits interests in Nuveen Asset Management and its affiliate, Teachers Advisors, LLC, which vest over time and entitle their holders to a percentage of the firms’ annual profits. Profits interests are allocated to each portfolio manager based on such person’s overall contribution to the firms.
There are generally no differences between the methods used to determine compensation with respect to the Fund and the Other Accounts shown in the table above.
(a)(4) Beneficial Ownership of JRI Securities
As of December 31, 2025, the portfolio managers beneficially owned the following dollar range of equity securities issued by the Fund.
| Name of Portfolio Manager | None | $1- $10,000 |
$10,001- $50,000 |
$50,001- $100,000 |
$100,001- $500,000 |
$500,001- $1,000,000 |
Over $1,000,000 |
|||||||||||||||||||||
| Brenda A. Langenfeld |
X | |||||||||||||||||||||||||||
| Noah P. Hauser |
X | |||||||||||||||||||||||||||
| Tryg T. Sarsland |
X | |||||||||||||||||||||||||||
| Benjamin T. Kerl |
X | |||||||||||||||||||||||||||
| James Kim |
X | |||||||||||||||||||||||||||
| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
| Item 15. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
| Item 16. | Controls and Procedures. |
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
| Item 18. | Recovery of Erroneously Awarded Compensation. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| Item 19. | Exhibits. |
| (a)(1) | Not applicable because the code of ethics is available, upon request and without charge, by calling 800-257-8787 and there were no amendments during the period covered by this report. |
| (a)(2) | Not applicable. |
| (a)(3) |
| (a)(4) | Not applicable. |
| (a)(5) | Not applicable. |
| (b) |
| (c) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Nuveen Real Asset Income and Growth Fund
| Date: March 6, 2026 | By: | /s/ David J. Lamb | ||||
| David J. Lamb | ||||||
| Chief Administrative Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| Date: March 6, 2026 | By: | /s/ David J. Lamb | ||||
| David J. Lamb | ||||||
| Chief Administrative Officer | ||||||
| (principal executive officer) | ||||||
| Date: March 6, 2026 | By: | /s/ Marc Cardella | ||||
| Marc Cardella | ||||||
| Vice President and Controller | ||||||
| (principal financial officer) | ||||||
