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 811-21293
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Nuveen Multi-Strategy Income and Growth Fund
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: December 31
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Date of reporting period: June 30, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. SS. 3507.
ITEM 1. REPORTS TO SHAREHOLDERS
Semi-Annual Report
JUNE 30, 2007
Nuveen Investments
CLOSED-END FUNDS
NUVEEN MULTI-STRATEGY
INCOME AND GROWTH FUND
JPC
NUVEEN MULTI-STRATEGY
INCOME AND GROWTH FUND 2
JQC
Attractive Distributions from a Portfolio of
Preferred and Convertible Securities,
Domestic and Foreign Equities, and Debt Instruments
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NUVEEN INVESTMENTS LOGO
Chairman's
LETTER TO SHAREHOLDERS
(TIMOTHY
SCHWERTFEGER
PHOTO) Timothy R. Schwertfeger Chairman of the Board
Dear Shareholder:
Once again, I am pleased to report that over the six-month period covered by
this report your Fund continued to provide you with attractive income. For more
details about the management strategy and performance of your Fund, please read
the Investment Strategy and Management Update, Portfolio Managers' Comments, the
Dividend and Share Price Information, and the Performance Overview sections of
this report.
I also wanted to take this opportunity to report some important news about
Nuveen Investments. We have accepted a buyout offer from a private equity
investment firm. While this may affect the corporate structure of Nuveen
Investments, it will have no impact on the investment objectives of the Funds,
their portfolio management strategies or their dividend policies. We will
provide you with additional information about this transaction as more details
become available.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the help
of an investment professional is an important component in achieving your
long-term financial goals. A well-diversified portfolio may actually help to
reduce your overall investment risk, and we believe that investments like your
Nuveen Investments Fund can be important building blocks in a portfolio crafted
to perform well through a variety of market conditions.
We are grateful that you have chosen us as a partner as you pursue your
financial goals and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
(TIMOTHY SCHWERFEGER SIG)
Timothy R. Schwertfeger
Chairman of the Board
August 15, 2007
Portfolio Managers' COMMENTS
NUVEEN INVESTMENTS CLOSED-END FUNDS JPC, JQC
These Funds are advised by Nuveen Asset Management (NAM), which has
responsibility for determining and overseeing the Funds' asset allocation. NAM
has selected a team of sub-advisers to manage the assets within each asset
class. The sub-advisers include specialists from Spectrum Asset Management,
Inc., (Spectrum), Symphony Asset Management, LLC (Symphony), and Tradewinds
Global Investors, LLC, a new sub-adviser of the Fund as discussed below
(Tradewinds). Symphony and Tradewinds are affiliates of Nuveen Investments.
Spectrum, an affiliate of Principal Capital(SM), manages preferred securities
positions within the income-oriented debt portion of each Fund's portfolio. Mark
Lieb, Bernie Sussman and Phil Jacoby, who have more than 50 years of combined
experience in the preferred securities and other debt markets, lead the team at
Spectrum.
Over the course of this reporting period, Symphony had primary responsibility
for the multi-strategy income sleeve invested in convertible, high yield and
senior loan securities and for the domestic and international equity sleeves.
The team at Symphony managing the multi-strategy income sleeve is led by Gunther
Stein and Lenny Mason, who have more than 25 years of combined investment
management experience.
The team responsible for managing the domestic equity sleeve is led by Praveen
Gottipalli and David Wang. During the reporting period, Symphony also assumed
responsibility for managing a portion of Funds' exposure to international
equities, a strategy led by Eric Olson. On a combined basis, these three equity
portfolio managers have more than 25 years of investment management experience.
NAM also has selected Tradewinds to manage a portion of the Funds' assets
invested in global equities and began the process of transferring assets to them
late in the reporting period. The Tradewinds team, which is led by Dave Iben,
assumed responsibility for this allocation during the period. Mr. Iben has more
than 25 years of investment management experience.
Here representatives from the sub-advisers talk about their management
strategies and the performance of both Funds for the six-month period ended June
30, 2007.
Discussions of specific investments are for illustration only and are not
intended as recommendations of individual investments. The views expressed
herein represent those of the portfolio managers as of the date of this report
and are subject to change at any time, based on market conditions and other
factors. The Funds disclaim any obligation to advise shareholders of such
changes.
4
IN LIGHT OF THE CHANGES TO FUNDS' INVESTMENT POLICIES ANNOUNCED EARLIER THIS
YEAR, CAN YOU GENERALLY DESCRIBE THE FUNDS' INVESTMENT STRATEGY AND TACTICS OVER
THE SIX MONTHS ENDED JUNE 30, 2007?
In 2006, the Funds' Board of Trustees approved a number of investment policy
changes designed to provide the Funds with greater flexibility to pursue their
investment objectives of high current income and total return. Last fall, the
Funds' Board of Trustees approved the following additional changes:
-- Eliminating the minimum required investment allocations to preferred
and/or convertible securities;
-- Expanding the types of the Funds' direct equity investments to include
international as well as domestic equities;
-- Increasing the percentage of the Funds' managed assets that can be
invested directly in domestic and international stocks as part of each
Fund's 30% allocation to equity-oriented investments; and
-- Adding Tradewinds as a sub-adviser to manage a portion of each Fund's
equity-oriented investments.
To better reflect the Funds' more diversified approach in pursuit of their
existing investment objectives, the Funds changed their names to the Nuveen
Multi-Strategy Income and Growth Fund (JPC) and Nuveen Multi-Strategy Income and
Growth Fund 2 (JQC). The Funds continue to be comprised approximately 70% of
income-oriented investments and 30% of equity-oriented investments, although
during the six-month reporting period, the strategic asset mix within those
categories has transitioned to reflect the new investment policy changes.
Most notably during the period, both Funds changed the nature of their
convertible securities exposure, moving away from a relatively fixed, standalone
allocation in favor of a more dynamic allocation as part of the Funds' more
diversified debt and equity strategies. As a result, both Funds ended their
relationship with their sub-adviser that specialized in convertible securities
investments.
This transition process was still under way at the end of this reporting period
and additional information on the progress of both Funds will be provided in our
next shareholder report.
5
HOW DID THE FUNDS PERFORM OVER THE SIX-MONTH PERIOD ENDED JUNE 30, 2007?
The performance of each Fund, as well as the performance of comparative
benchmark are presented in the accompanying table.
Cumulative Total Returns on Net Asset Value
For the six months ended 6-30-07
JPC 1.97%
JQC 2.46%
Comparative benchmark(1) 2.46%
As indicated in the accompanying table, both Funds posted positive results for
the six-month period. JPC underperformed the comparative benchmark, while JQC
performed in line with this measure.
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Past performance does not guarantee future results. Current performance may be
higher or lower than the data shown.
Returns do not reflect the deduction of taxes that a shareholder may have to pay
on Fund distributions or upon the sale of Fund shares.
For additional information, please see the Performance Overview page for your
Fund in this report.
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WHAT STRATEGIES DID THE SUB-ADVISERS EMPLOY DURING THE PERIOD?
In the portion of both portfolios that were invested in preferred securities,
Spectrum generally maintained a 60/40 mix between the $25 par preferred
securities generally favored by individual investors and the $1000 par capital
securities market that generally attracts institutional investors. Over the
six-month reporting period Spectrum increased both Funds' concentrations in $25
par securities due to their relative attractiveness. These securities generally
outperformed capital securities over this period because they were less
sensitive to the increases in U.S. Treasury (UST) yields that occurred in the
spring of 2007. For example, the yield spread between higher- and lower-rated
$25 par preferred securities tightened during the period by 7 basis points,
while a similar spread in the capital securities sector widened by 24 basis
points. This means that the prices of lower-rated $25 preferred securities
generally performed better than the prices of their capital securities
counterparts.
--------------------------------------------------------------------------------
1 Comparative benchmark performance is a blended return consisting of: 1) 33% of
the Merrill Lynch Preferred Stock Hybrid Securities Index, an unmanaged index of
investment-grade, exchange traded preferred issues with outstanding market
values of at least $30 million and at least one year to maturity; 2) 27% of the
Lehman Tier 1 Capital Securities Index, an unmanaged index that includes
securities that can generally be viewed as hybrid fixed-income securities that
either receive regulatory capital treatment or a degree of "equity credit" from
a rating agency; 3) 30% of the Merrill Lynch All U.S. Convertibles Index,
consisting of approximately 575 securities with par value greater than $50
million that were issued by U.S. companies or non-U.S. based issuers that have a
significant business presence in the U.S.; and 4) 10% of the CSFB High Yield
Index, which includes approximately $375 billion of $U.S.-denominated high yield
debt with a minimum of $75 million in par value and at least one rating below
investment-grade. Index returns do not include the effects of any management
fees or fund expenses. It is not possible to invest directly in an index.
--------------------------------------------------------------------------------
In addition, there was weakness in the prices of certain lower-rated securities,
reportedly because of several large sub-prime mortgage hedge funds that
liquidated assets to meet redemptions and margin calls. As the corporate credit
markets in the U.S. weakened, Spectrum sold a portion of the Funds' U.S. dollar
denominated securities that are listed and traded in Europe because these issues
were slower to respond to the generally weakening market. Spectrum reinvested
the proceeds from these sales primarily in $1000 par capital securities that it
believed offered improved income potential and better structural terms.
In the multi-strategy income sleeves of both Funds, Symphony continued to employ
a value-oriented strategy focused on relatively higher quality, non-investment
grade credits with relatively stronger fundamental business models, more
diversified revenue streams, stronger asset coverage and relatively low earnings
volatility. Symphony avoided positions where it identified escalating credit
issues, limited upside potential, or significant downside risk with weak asset
protection. In April and May, moderate amounts of new issuance, strong equity
markets and investors' demand for yield caused higher yielding issues to perform
relatively well and credit spreads to tighten. However, this trend reversed
sharply in June as high yield
6
spreads widened in response to increased new issue supply and concerns around
the sub-prime lending market. In fact, many high yield issues declined sharply
in value (i.e. their yields rose sharply) in mid- to late June as concerns about
subprime lenders increased and seemed to reduce investor appetite for risk.
The addition of direct exposure to core domestic equities, managed by Symphony,
enhanced total returns during the period. Symphony uses both quantitative and
qualitative methods to evaluate securities. The quantitative screening process
serves as the starting point for the decision making process. The qualitative
process then provides a systematic way of researching companies from a broad
prospective, ensuring the stocks selected for the portfolio are attractive in
all important respects. Over this period, these equity holdings performed well
and provided support for the Funds' managed distribution policy and the
distribution rate increase declared in May 2006.
Looking at the reporting period as a whole, several holdings of both JPC and JQC
performed well overall. JPC benefited from bond investments in Young
Broadcasting Inc., Primedia Inc., and Universal City Development Partners, and
strong performers in JQC included Young Broadcasting Inc., American Media, and
Primedia Inc.
On the other side, both Funds had several bond positions that constrained
performance over this reporting period. In the preferred securities sleeves of
the Funds, Spectrum purchased futures on U.S. Treasury notes and bonds in order
to manage the Funds' effective duration (price sensitivity to changes in
prevailing interest rates). The significant U.S. Treasury sell off in June
affected the Funds' performance and more than offset the benefits gained by the
futures positions earlier in the period.
Among the Funds' multi-strategy income holdings, Symphony's strategy of
investing in relatively higher quality names reduced the overall risk in the
portfolios. However, this limited the Funds' exposure to some of the upside in
the high-yield market that came from lower rated credits outperforming higher
rated credits over much of the period. Underperforming credits in JPC included
SunGard Data Systems Inc., Keystone Automotive, and electric utility company
Dynegy Holdings Inc. Underperformers in JQC include Dynegy Holdings Inc.,
Keystone Automotive, and MediaNews Group, Inc.
7
Distribution and Share Price
INFORMATION
We are providing you with information regarding your Fund's distributions. This
information is as of June 30, 2007, and likely will vary over time based on the
Fund's investment activities and portfolio investment value changes. On March 1,
2007, Nuveen Investments announced that these Funds would be moving from a
monthly to a quarterly distribution schedule. The Funds' last monthly
distributions were paid on April 2, 2007, and first quarterly distributions were
paid on July 2, 2007.
Each of these Funds issues FundPreferred(TM) shares and uses financial leverage
in an effort to enhance its distribution-paying capabilities. While this
strategy adds volatility to a Fund's net asset value and share price, it
generally enhances the amount of income the Fund has to distribute to its common
shareholders. The extent of this benefit is tied in part to the short-term rates
these Funds pay their FundPreferred shareholders. As short-term rates rose
through this reporting period, the Funds paid higher dividends to their
FundPreferred shareholders.
Each Fund has a managed distribution policy. The goal of a managed distribution
program is to provide shareholders relatively consistent and predictable cash
flow by systematically converting its expected long-term return potential into
regular distributions. As a result, regular distributions throughout the year
will likely include a portion of expected long-term gains (both realized and
unrealized), along with net investment income.
Important points to understand about the managed distribution program are:
- Each Fund seeks to establish a relatively stable distribution rate that
roughly corresponds to the projected total return from its investment strategy
over an extended period of time. However, you should not draw any conclusions
about the Fund's past or future investment performance from its current
distribution rate.
- Actual returns will differ from projected long-term returns (and therefore the
Fund's distribution rate), at least over shorter time periods. Over a specific
timeframe, the difference between actual returns and total distributions will
be reflected in an increasing (returns exceed distributions) or a decreasing
(distributions exceed returns) Fund net asset value.
- Each distribution is expected to be paid from some or all of the following
sources:
- net investment income (regular interest and dividends),
- realized capital gains, and
- unrealized gains, or, in certain cases, a return of principal (non-taxable
distributions)
- A non-taxable distribution is a payment of a portion of a Fund's capital. When
a Fund's returns exceed distributions, it may represent portfolio gains
generated, but not realized as a taxable capital gain. In periods when a
Fund's return falls short of distributions, it will represent a portion of
your original principal unless the shortfall is offset during other time
8
periods over the life of your investment (previous or subsequent) when the
Fund's total return exceeds distributions.
- Because distribution source estimates are updated during the year, based on a
Fund's performance and forecast for its current fiscal year (which is the
calendar year for each Fund), these estimates may differ from both the tax
information reported to you in your Fund's IRS Form 1099 statement provided at
year end, as well as the ultimate economic sources of distributions over the
life of your investment.
The following table provides estimated information regarding each Fund's
distributions and total return performance for the six months ended June 30,
2007. The distribution information is presented on a tax basis rather than on a
generally accepted accounting principles (GAAP) basis. This information is
intended to help you better understand whether the Fund's returns for the
specified time period was sufficient to meet each Fund's distributions.
Information regarding such distributions in the future will likely vary based on
the Fund's investment activities and portfolio investment value changes at that
time.
---------------------------------------------------------------------------------------
As of 6/30/2007 JPC JQC
---------------------------------------------------------------------------------------
Inception date 3/26/03 6/25/03
Six months ended 6/30/07:
Per share distribution:
From net investment income $0.34 $0.34
From realized capital gains 0.23 0.23
From return of capital -- --
------- -------
Total per share distribution $0.57 $0.57
======= =======
Distribution rate on NAV 4.08% 4.05%
Cumulative six-month total return on NAV 1.97% 2.46%
Annualized one-year total return on NAV 10.99% 10.94%
Annualized since inception total return on NAV 8.17% 7.59%
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At the end of the reporting period, the Funds' share prices were trading
relative to their NAVs as shown in the accompanying table:
----------------------------------------------------------------------------------------
As of 6/30/07 6-Month Average
Discount Discount
----------------------------------------------------------------------------------------
JPC -5.30% -2.63%
JQC -5.69% -3.31%
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9
JPC Nuveen Multi-Strategy
PERFORMANCE Income and
OVERVIEW Growth Fund
as of 6-30-07
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)
(PORTFOLIO ALLOCATION PIE CHART)
$25 Par (or similar) Preferred Securities 29.7
Capital Preferred Securities 17
Short-Term Investments 16.5
Common Stocks 14.1
Convertible Bonds 9.7
Corporate Bonds 5.9
Variable Rate Senior Loan Interests 4.7
Investment Companies 1.4
Convertible Preferred Securities 1
2006-2007 DISTRIBUTIONS PER SHARE(2)
(MONTHLY DISTRIBUTIONS BAR CHART)
Jul 0.095
Aug 0.095
Sep 0.095
Oct 0.095
Nov 0.095
Dec 0.095
Jan 0.095
Feb 0.095
Mar 0.095
Jun 0.285
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(SHARE PRICE CHART)
7/01/06 12.38
12.43
12.46
12.49
12.79
13.02
13.07
13.28
13.37
13.47
13.35
13.5
13.78
13.87
13.88
13.67
13.86
14
13.73
13.8
13.87
14.01
14.21
14.4
14.28
14.32
14.3
14.39
14.18
14.12
14.21
14.26
14.19
14.07
14.25
14.04
14.07
13.88
14.12
14.08
14.05
13.98
13.9
13.97
14.09
14
13.74
13.8
13.82
13.63
13.31
12.94
6/30/07 13.23
FUND SNAPSHOT
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Common Share Price $13.23
------------------------------------------------------------------------
Common Share Net Asset Value $13.97
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Premium/(Discount) to NAV -5.30%
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Current Distribution Rate(1) 8.62%
------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $1,393,440
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AVERAGE ANNUAL TOTAL RETURN
(Inception 3/26/03)
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ON SHARE PRICE ON NAV
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6-Month (Cumulative) -3.51% 1.97%
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1-Year 16.92% 10.99%
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Since
Inception 6.21% 8.17%
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INDUSTRIES
(as a % of total investments)
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Commercial Banks 17.1%
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Insurance 10.3%
-------------------------------------------------------------------------------------
Real Estate 8.0%
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Capital Markets 6.7%
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Media 5.9%
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Diversified Financial Services 3.4%
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Oil, Gas & Consumable Fuels 2.8%
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Hotels, Restaurants & Leisure 1.7%
-------------------------------------------------------------------------------------
Health Care Providers & Services 1.6%
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Diversified Telecommunication Services 1.6%
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Thrifts & Mortgage Finance 1.4%
-------------------------------------------------------------------------------------
Investment Companies 1.4%
-------------------------------------------------------------------------------------
Energy Equipment & Services 1.3%
-------------------------------------------------------------------------------------
Electric Utilities 1.2%
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Short-Term Investments 16.5%
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Other 19.1%
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TOP FIVE ISSUERS
(EXCLUDING SHORT-TERM INVESTMENTS)
(as a % of total investments)
------------------------------------------------------------------------------------
Wachovia Corporation 1.7%
------------------------------------------------------------------------------------
ING Group N.V. 1.7%
------------------------------------------------------------------------------------
Union Planters Corporation 1.4%
------------------------------------------------------------------------------------
Delphi Financial Group, Inc. 1.4%
------------------------------------------------------------------------------------
Countrywide Financial Corporation 1.4%
------------------------------------------------------------------------------------
1 Current Distribution Rate is based on the Fund's current annualized quarterly
distribution divided by the Fund's current market price. The Fund's quarterly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Fund's
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a return of capital for tax purposes.
2 Effective March 1, 2007, the Fund changed from a monthly distribution to a
quarterly distribution schedule. The Fund's last monthly distribution was
declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly
distribution was declared June 1, 2007, and paid on July 2, 2007.
10
JQC Nuveen Multi-Strategy
PERFORMANCE Income and
OVERVIEW Growth Fund 2
as of 6-30-07
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)
(PORTFOLIO ALLOCATION PIE CHART)
$25 Par (or similar) Preferred Securities 29.2
Capital Preferred Securities 19.1
Short-Term Investments 16
Common Stocks 13
Convertible Bonds 10
Corporate Bonds 6.5
Variable Rate Senior Loan Interests 3.7
Investment Companies 1.4
Convertible Preferred Securities 1.1
2006-2007 DISTRIBUTIONS PER SHARE(2)
(MONTHLY DISTRIBUTIONS BAR CHART)
Jul 0.095
Aug 0.095
Sep 0.095
Oct 0.095
Nov 0.095
Dec 0.095
Jan 0.095
Feb 0.095
Mar 0.095
Jun 0.285
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(SHARE PRICE CHART)
7/01/06 12.3812
12.37
12.38
12.53
12.78
13.08
13.12
13.24
13.3476
13.41
13.39
13.52
13.72
13.78
13.88
13.62
13.79
13.9
13.72
13.79
13.87
14.05
14.26
14.35
14.27
14.06
14.14
14.18
13.88
13.97
14.03
14.16
14.11
14
14.17
13.92
14.09
13.92
14.12
14.01
13.99
13.98
13.88
13.94
14.05
14
13.82
13.88
13.87
13.65
13.28
12.94
6/30/07 13.27
FUND SNAPSHOT
---------------------------------------------------------------------------------------
Common Share Price $13.27
---------------------------------------------------------------------------------------
Common Share Net Asset Value $14.07
---------------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.69%
---------------------------------------------------------------------------------------
Current Distribution Rate(1) 8.59%
---------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $1,976,747
---------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/25/03)
-------------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------------
6-Month (Cumulative) -1.98% 2.46%
-------------------------------------------------------------------------------------
1-Year 17.40% 10.94%
-------------------------------------------------------------------------------------
Since
Inception 5.42% 7.59%
-------------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------------------------------------------------------
Commercial Banks 18.1%
-------------------------------------------------------------------------------------
Insurance 10.6%
-------------------------------------------------------------------------------------
Real Estate 7.8%
-------------------------------------------------------------------------------------
Media 6.1%
-------------------------------------------------------------------------------------
Capital Markets 5.2%
-------------------------------------------------------------------------------------
Diversified Financial Services 5.0%
-------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 2.9%
-------------------------------------------------------------------------------------
Diversified Telecommunication Services 2.3%
-------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 1.5%
-------------------------------------------------------------------------------------
Investment Companies 1.4%
-------------------------------------------------------------------------------------
Health Care Providers & Services 1.4%
-------------------------------------------------------------------------------------
Thrifts & Mortgage Finance 1.4%
-------------------------------------------------------------------------------------
Energy Equipment & Services 1.3%
-------------------------------------------------------------------------------------
Short-Term Investments 16.0%
-------------------------------------------------------------------------------------
Other 19.0%
-------------------------------------------------------------------------------------
TOP FIVE ISSUERS
(EXCLUDING SHORT-TERM INVESTMENTS)
(as a % of total investments)
------------------------------------------------------------------------------------
Wachovia Corporation 1.9%
------------------------------------------------------------------------------------
Banco Santander Central S.A. & Company 1.6%
------------------------------------------------------------------------------------
AgFirst Farm Credit Bank 1.4%
------------------------------------------------------------------------------------
JPMorgan Chase & Company 1.4%
------------------------------------------------------------------------------------
Merrill Lynch and Company Inc. 1.3%
------------------------------------------------------------------------------------
1 Current Distribution Rate is based on the Fund's current annualized quarterly
distribution divided by the Fund's current market price. The Fund's quarterly
distributions to its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year the Fund's
cumulative net ordinary income and net realized gains are less than the amount
of the Fund's distributions, a return of capital for tax purposes.
2 Effective March 1, 2007, the Fund changed from a monthly distribution to a
quarterly distribution schedule. The Fund's last monthly distribution was
declared March 1, 2007, and paid on April 2, 2007. The Fund's first quarterly
distribution was declared June 1, 2007, and paid on July 2, 2007.
11
SHAREHOLDER MEETING REPORT
The shareholder meeting was held in the offices of Nuveen
Investments on April 11, 2007, and subsequently adjourned to
April 30, 2007, for Nuveen Multi-Strategy Income and Growth
Fund (JPC) and Nuveen Multi-Strategy Income and Growth Fund
2 (JQC). Nuveen Multi-Strategy Income and Growth Fund 2
(JQC) was additionally adjourned to May 31, 2007, June 29,
2007 and July 20, 2007.
JPC JQC
------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 61,551,951 -- 90,857,114 --
Withhold 1,540,125 -- 2,350,555 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown (1)
For 61,505,752 -- 90,812,373 --
Withhold 1,586,324 -- 2,395,296 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans
For 61,573,286 -- 90,829,346 --
Withhold 1,518,790 -- 2,378,323 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
William C. Hunter
For 61,567,540 -- 90,823,304 --
Withhold 1,524,536 -- 2,384,365 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
David J. Kundert
For 61,551,509 -- 90,827,770 --
Withhold 1,540,567 -- 2,379,899 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 25,254 -- 34,498
Withhold -- 137 -- 208
------------------------------------------------------------------------------------------------------------------------------
Total -- 25,391 -- 34,706
------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 25,242 -- 34,466
Withhold -- 149 -- 240
------------------------------------------------------------------------------------------------------------------------------
Total -- 25,391 -- 34,706
------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 61,541,285 -- 90,770,204 --
Withhold 1,550,791 -- 2,437,465 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
Carole E. Stone
For 61,548,321 -- 90,795,150 --
Withhold 1,543,755 -- 2,412,519 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
12
JPC JQC
------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine (2)
For 61,569,007 -- 90,814,005 --
Withhold 1,523,069 -- 2,393,664 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 93,207,669 --
------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE AMENDMENT TO THE FEE SCHEDULE OF THE
INVESTMENT SUB-ADVISORY AGREEMENT BETWEEN NUVEEN ASSET
MANAGEMENT AND SYMPHONY ASSET MANAGEMENT, LLC WAS REACHED
AS FOLLOWS:
For 42,439,529 -- 67,553,694 --
Against 2,490,501 -- 4,583,093 --
Abstain 1,856,125 -- 2,965,587 --
Broker Non-Votes 16,305,921 -- 25,700,583 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 100,802,957 --
------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT SUB-ADVISORY AGREEMENT
BETWEEN NUVEEN ASSET MANAGEMENT AND TRADEWINDS GLOBAL
INVESTORS, LLC WAS REACHED AS FOLLOWS:
For 42,806,878 -- 67,561,997 --
Against 2,259,819 -- 4,055,663 --
Abstain 1,719,458 -- 2,920,945 --
Broker Non-Votes 16,305,921 -- 25,897,375 --
------------------------------------------------------------------------------------------------------------------------------
Total 63,092,076 -- 100,435,980 --
------------------------------------------------------------------------------------------------------------------------------
(1) Mr. Lawrence H. Brown retired from the Board of Trustees on July 1, 2007.
(2) Mr. Eugene S. Sunshine resigned from the Board of Trustees on July 31, 2007.
13
JPC
Nuveen Multi-Strategy Income and Growth Fund
Portfolio of INVESTMENTS
as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 22.3% (14.1% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.3%
18,560 Boeing Company $ 1,784,730
18,126 Lockheed Martin Corporation 1,706,200
23,190 Orbital Sciences Corporation, (2) 487,222
--------------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 3,978,152
-------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.2%
7,360 Johnson Controls, Inc. 852,067
23,950 Magna International Inc., Class A 2,179,211
--------------------------------------------------------------------------------------------------------------------------------
Total Auto Components 3,031,278
-------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.5%
24,530 Daimler-Chrysler AG 2,255,534
61,750 Honda Motor Company Limited 2,240,908
28,310 Nissan Motor 606,966
17,410 Toyota Motor Corporation 2,191,571
--------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 7,294,979
-------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.4%
24,840 Coca-Cola Company 1,299,380
25,330 Diageo PLC, Sponsored ADR 2,110,242
54,690 Fomento Economico Mexicano S.A. 2,150,411
6,840 Molson Coors Brewing Company, Class B 632,426
--------------------------------------------------------------------------------------------------------------------------------
Total Beverages 6,192,459
-------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.2%
13,660 Cephalon, Inc., (2) 1,098,127
7,940 Genzyme Corporation, (2) 511,336
6,940 Novo-Nordisk A/S 754,100
--------------------------------------------------------------------------------------------------------------------------------
Total Biotechnology 2,363,563
-------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.7%
1,810 BlackRock Inc. 283,428
14,690 Deutsche Bank AG 2,126,231
60,300 Invesco PLC 1,558,755
47,380 JPMorgan Chase & Co. 2,295,561
4,620 MarketAxess, (2) 83,114
12,020 Morgan Stanley 1,008,238
34,130 UBS AG 2,048,141
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 9,403,468
-------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.4%
12,360 Air Products & Chemicals Inc. 993,373
15,770 Ashland Inc. 1,008,492
5,230 CF Industries Holdings, Inc. 313,225
6,600 Lubrizol Corporation 426,030
30,940 Mosaic Company, (2) 1,207,279
6,990 Sparetech Corporation 185,585
30,230 Syngenta AG 1,176,854
11,590 Terra Industries, Inc., (2) 294,618
--------------------------------------------------------------------------------------------------------------------------------
Total Chemicals 5,605,456
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 1.6%
2,180 Affiliated Managers Group Inc., (2) 280,697
14,820 Allied Irish Banks 814,507
88,780 Allinaz S.E. 2,065,911
86,850 Banco Bilbao Vizcaya Argentaria S.A. 2,117,403
50,750 Banco Bradesco SA, ADR 1,223,583
14
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
76,110 Banco Santander Central S.A. $ 1,398,902
10,050 Bank of Montreal 647,522
12,170 Bank of Nova Scotia 594,261
36,780 Barclays PLC 2,051,956
14,160 Colonial BancGroup Inc. 353,575
5,170 Comerica Incorporated 307,460
36,770 ICICI Bank Limited, ADR 1,807,246
22,740 Kookmin Bank 1,994,753
21,340 Lloyds TSB Group PLC, Sponsored ADR 954,325
18,540 Mellon Financial Corporation 815,760
27,250 National Bank of Greece S.A. 312,285
9,270 Northern Trust Corporation 595,505
16,920 PNC Financial Services Group, Inc. 1,211,134
28,950 Royal Bank of Canada 1,536,377
67,690 Royal Bank of Scotland, PLC, (2) 860,426
2,730 SVB Financial Group, (2) 144,990
4,520 Umpqua Holdings Corporation 106,265
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 22,194,843
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.9%
280,000 Allied Waste Industries, Inc., (2) 3,828,608
2,976 Consolidated Graphics Inc., (2) 206,177
29,990 Corrections Corporation of America, (2) 1,892,669
2,690 CSG Systems International Inc., (2) 71,312
4,280 Dun and Bradstreet Inc. 440,754
9,870 ITT Educational Services, Inc., (2) 1,158,541
9,010 Republic Services, Inc. 276,066
36,360 SEI Investments Company 1,055,894
293,300 Toppan Printing Company Limited 3,152,220
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 12,082,241
-------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.4%
81,110 Corning Incorporated, (2) 2,072,361
76,270 Nokia Oyj, Sponsored ADR 2,143,950
4,790 Polycom Inc., (2) 160,944
23,360 QUALCOMM Inc. 1,013,590
--------------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 5,390,845
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.4%
18,651 Apple, Inc., (2) 2,276,168
15,240 Dell Inc., (2) 435,102
32,450 Hewlett-Packard Company 1,447,919
6,400 NCR Corporation, (2) 336,256
35,623 Network Appliance, Inc., (2) 1,040,192
10,240 Novatel Wireless, (2) 266,445
--------------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 5,802,082
-------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.0%
4,120 Lafarge SA 187,666
1,540 Texas Industries Inc. 120,751
--------------------------------------------------------------------------------------------------------------------------------
Total Construction Materials 308,417
-------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.3%
12,390 MasterCard, Inc. 2,055,129
45,600 Takefuji Corporation 1,533,271
--------------------------------------------------------------------------------------------------------------------------------
Total Consumer Finance 3,588,400
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.5%
12,200 CIT Group Inc. 668,926
28,680 Credit Suisse Group, (2) 2,035,133
17,990 Eaton Vance Corporation 794,798
48,380 ING Group N.V., Sponsored ADR 2,127,269
24,630 State Street Corporation 1,684,692
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 7,310,818
-------------------------------------------------------------------------------------------------------------------
15
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.9%
14,940 Alltel Corporation $ 1,009,197
30,880 AT&T Inc. 1,281,520
15,830 BT Group PLC 1,053,961
10,670 Cbeyond Inc., (2) 410,902
29,830 France Telecom SA 819,728
77,250 KT Corporation, Sponsored ADR 1,812,285
30,060 Nippon Telegraph and Telephone Corporation, 666,430
ADR
7,770 Portugal Telecom SA 107,925
14,940 Royal KPN Nederland PTT N.V. 248,153
27,650 Telecom Corporation of New Zealand Ltd 771,988
24,830 Telefonica SA 1,657,651
54,110 Telefonos de Mexico SA, Series L 2,050,228
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 11,889,968
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.9%
5,120 Black Hills Corporation 203,520
136,300 Centrais Electricas Brasileiras S.A., ADR 2,030,870
9,230 DPL Inc. 261,578
38,890 E.ON A.G. 2,163,840
28,090 Edison International 1,576,411
8,000 El Paso Electric Company, (2) 196,480
9,940 Enel SpA, Sponsored ADR 533,778
18,470 FPL Group, Inc. 1,047,988
12,360 OGE Energy Corp. 452,994
27,550 PG&E Corporation 1,248,015
3,940 Pike Electric Corporation, (2) 88,177
14,480 Progress Energy, Inc. 660,143
53,610 Reliant Energy Inc., (2) 1,444,790
--------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 11,908,584
-------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.3%
2,390 Acuity Brands Inc. 144,069
61,220 Emerson Electric Co. 2,865,096
21,390 Nikon Corporation 597,617
--------------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 3,606,782
-------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.6%
4,504 Itron Inc., (2) 351,042
27,640 MEMC Electronic Materials, (2) 1,689,357
2,730 Mettler-Toledo International Inc., (2) 260,742
60,500 Tech Data Corporation, (2) 2,335,318
3,097 Teledyne Technologies Inc., (2) 142,307
55,760 Thermo Fisher Scientific, Inc., (2) 2,883,907
--------------------------------------------------------------------------------------------------------------------------------
Total Electronic Equipment & Instruments 7,662,673
-------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.3%
6,860 Matrix Service Company, (2) 170,471
25,990 National-Oilwell Varco Inc., (2) 2,709,198
6,630 Oceaneering International Inc., (2) 349,003
20,980 Tidewater Inc. 1,487,062
3,420 Trico Marine Services Inc., (2) 139,810
--------------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 4,855,544
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.1%
42,200 Koninklijke Ahold NV, (2) 528,344
3,150 Nash Finch Company 155,925
31,520 Safeway Inc. 1,072,626
--------------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 1,756,895
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 1.2%
33,040 Campbell Soup Company 1,282,282
50,490 ConAgra Foods, Inc. 1,356,161
11,590 Flowers Foods Inc. 386,642
26,900 H.J. Heinz Company 1,276,943
18,030 Monsanto Company 1,217,746
16
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS (continued)
147,000 Smithfield Foods, Inc., (2) $ 4,539,360
166,000 Tyson Foods, Inc., Class A 3,864,480
70,840 Unilever PLC 2,285,298
--------------------------------------------------------------------------------------------------------------------------------
Total Food Products 16,208,912
-------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.2%
25,160 Energen Corporation 1,382,290
23,400 Questar Corporation 1,236,690
--------------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 2,618,980
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3%
8,500 Alfresa Holdings Corporation 593,015
29,590 Baxter International Inc. 1,667,101
6,970 Dade Behring Holdings Inc. 370,246
19,064 Express Scripts, Inc., (2) 953,391
8,120 Fresenius Medical Care, ADR 373,033
2,610 Lifecell Corporation, (2) 79,709
36,000 Paramount Bed Company Limited 553,779
3,882 Surmodics Inc., (2) 194,100
--------------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 4,784,374
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.3%
5,280 Centene Corporation, (2) 113,098
1,606 Healthways Inc., (2) 76,076
25,470 Humana Inc., (2) 1,551,378
5,420 Mentor Corporation 220,486
6,340 Nighthawk Radiology Holdings Inc., (2) 114,437
25,303 Wellcare Health Plans Inc., (2) 2,290,175
--------------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 4,365,650
-------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.1%
8,870 Bally Technologies, Inc., (2) 234,345
12,340 Choice Hotels International, Inc. 487,677
9,740 Intercontinental Hotels Group PLC, ADR 241,357
--------------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 963,379
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.2%
110,260 Matsushita Electric Industrial Co., Ltd., 2,178,091
ADR
25,261 Newell Rubbermaid Inc. 743,431
--------------------------------------------------------------------------------------------------------------------------------
Total Household Durables 2,921,522
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.5%
40,580 Colgate-Palmolive Company 2,631,613
146,000 KAO Corporation 3,782,660
11,297 Kimberly-Clark Corporation 755,656
--------------------------------------------------------------------------------------------------------------------------------
Total Household Products 7,169,929
-------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
18,660 NRG Energy Inc., (2) 775,696
-------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.2%
20,550 General Electric Company 786,654
16,460 Siemens AG, Sponsored ADR 2,354,768
2,680 Teleflex Inc. 219,170
--------------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 3,360,592
-------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.1%
50,680 Aegon N.V. 995,862
35,465 AFLAC Incorporated 1,822,901
12,150 Amtrust Financial Services, Inc. 228,299
13,600 Aon Corporation 579,496
49,750 AXA-UAP 2,141,240
92,100 Benfield Group, Limited 597,838
0 Berkshire Hathaway Inc., Class B, (2) 159
3,390 Delphi Financial Group, Inc. 141,770
17
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE (continued)
9,030 Fairfax Financial Holdings Limited $ 1,730,780
5,540 First American Corporation 274,230
18,540 Genworth Financial Inc., Class A 637,776
19,730 HCC Insurance Holdings Inc. 659,179
42,167 Philadelphia Consolidated Holding 1,762,581
Corporation, (2)
7,480 Seabright Insurance Holdings Inc., (2) 130,750
22,140 Sun Life Financial Inc. 1,057,185
4,904 Tower Group Inc. 156,438
73,730 WR Berkley Corporation 2,399,174
--------------------------------------------------------------------------------------------------------------------------------
Total Insurance 15,315,658
-------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.1%
16,820 Amazon.com, Inc., (2) 1,150,656
22,320 Coldwater Creek Inc., (2) 518,494
--------------------------------------------------------------------------------------------------------------------------------
Total Internet & Catalog Retail 1,669,150
-------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.2%
8,930 Chordiant Software, Inc., (2) 139,844
48,000 eBay Inc., (2) 1,544,640
5,460 F5 Networks, Inc., (2) 440,076
39,350 Open Text Corporation, (2) 856,256
--------------------------------------------------------------------------------------------------------------------------------
Total Internet Software & Services 2,980,816
-------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
12,400 CGI Group Inc., (2) 139,128
16,270 Convergys Corporation, (2) 394,385
9,170 FactSet Research Systems Inc. 626,770
10,440 Savvis Inc., (2) 516,884
--------------------------------------------------------------------------------------------------------------------------------
Total IT Services 1,677,167
-------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.3%
34,970 Canon Inc. 2,050,641
10,330 Fuji Photo Film Co., Ltd. 462,281
6,990 FujiFilm Holdings Corporation, ADR 311,894
13,380 Hasbro, Inc. 420,266
9,880 Marvel Entertainment Inc., (2) 251,742
--------------------------------------------------------------------------------------------------------------------------------
Total Leisure Equipment & Products 3,496,824
-------------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.0%
2,310 Illumina Inc., (2) 93,763
--------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.7%
100,570 ABB Limited 2,272,882
30,010 AGCO Corporation, (2) 1,302,734
3,830 CLARCOR, Inc. 143,357
5,250 Flow International Corporation, (2) 66,150
20,806 Harsco Corporation 1,081,912
23,920 ITT Industries Inc. 1,633,258
10,920 Manitowoc Company Inc. 877,750
3,250 Pall Corporation 149,468
7,167 Parker Hannifin Corporation 701,721
4,230 RBC Bearings Inc., (2) 174,488
2,650 Robbins & Myers, Inc. 140,795
49,370 Volvo AB 981,969
--------------------------------------------------------------------------------------------------------------------------------
Total Machinery 9,526,484
-------------------------------------------------------------------------------------------------------------------
MEDIA - 0.8%
32,760 DIRECTV Group, Inc., (2) 757,084
25,560 Echostar Communications Corporation, (2) 1,108,537
7,697 John Wiley and Sons Inc., Class A 371,688
5,790 Liberty Global Inc., Class C, (2) 227,547
5,491 Lodgenet Entertainment Corporation, (2) 176,041
38,540 McGraw-Hill Companies, Inc. 2,623,803
11,530 Multimedia Games, Inc., (2) 147,123
12,900 Pearson Public Limited Company 217,236
65,100 Premiere AG, (2) 1,550,728
18
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
MEDIA (continued)
11,920 Regal Entertainment Group, Class A $ 261,406
9,520 Shaw Communication Inc. 400,221
7,180 Thomson Corporation 294,595
41,250 Time Warner Inc. 867,900
37,300 Walt Disney Company 1,273,422
7,500 WPP Group PLC 560,625
--------------------------------------------------------------------------------------------------------------------------------
Total Media 10,837,956
-------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.5%
6,700 Alumina Limited, Sponsored ADR 177,885
73,170 Anglo American PLC, ADR 2,146,808
9,290 BHP Billiton PLC 522,098
3,280 Compass Minerals International, Inc. 113,685
169,800 Gabriel Resources, Limited, (2) 760,334
204,000 Moto Goldmines, Limited, (2) 788,998
600 Orezone Resources Inc., (2) 1,005
7,610 Rio Tinto PLC, Sponsored ADR 2,329,573
--------------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 6,840,386
-------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 0.3%
8,980 99 Cents Only Stores, (2) 117,728
14,370 Big Lots, Inc., (2) 422,765
34,430 Dollar Tree Stores Inc., (2) 1,499,427
33,850 Kohl's Corporation, (2) 2,404,366
5,650 Target Corporation 359,340
--------------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 4,803,626
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.0%
8,060 Veolia Environment S.A. 631,985
--------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 1.6%
4,350 Bill Barrett Corporation, (2) 160,211
32,120 BP Amoco PLC 2,317,137
30,170 Chesapeake Energy Corporation 1,043,882
18,130 China Petroleum and Chemical Corporation 2,024,033
30,200 Eni S.p.A., Sponsored ADR 2,184,970
15,500 EOG Resources, Inc. 1,132,430
24,980 Equitable Resources Inc. 1,238,009
14,720 Frontier Oil Corporation 644,294
17,030 Norsk Hydro ASA 651,738
7,186 Pioneer Drilling Company, (2) 107,143
36,610 Repsol YPF S.A. 1,416,807
27,580 Royal Dutch Shell PLC, Class B, Sponsored 2,298,793
ADR
6,450 St Mary Land and Exploration Company 236,199
77,610 Statoil ASA 2,406,686
6,455 Sunoco, Inc. 514,334
12,200 Tesoro Petroleum Corporation 697,230
28,700 Total SA, Sponsored ADR 2,324,126
15,282 Valero Energy Corporation 1,128,729
--------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 22,526,751
-------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.2%
10,520 Aracruz Celulose S.A. 696,845
5,250 Buckeye Technologies Inc., (2) 81,218
13,130 Rayonier Inc. 592,688
65,420 Votorantim Celulose e Papel S.A. 1,489,613
--------------------------------------------------------------------------------------------------------------------------------
Total Paper & Forest Products 2,860,364
-------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.7%
16,520 Abraxis Bioscience Inc., (2) 367,240
40,790 AstraZeneca Group 2,181,449
7,990 Biovail Corporation 203,106
12,890 Eli Lilly and Company 720,293
6,720 GlaxoSmithKline PLC, ADR 351,926
32,000 Kissei Pharmaceuticals Company Limited 563,980
27,380 Merck & Co. Inc. 1,363,524
19
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (continued)
38,300 Norvatis AG, ADR $ 2,147,481
108,900 Patheon Inc., (2) 430,386
7,730 Pozen Inc., (2) 139,681
46,560 Sanofi-Aventis, ADR 1,874,971
--------------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 10,344,037
-------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 0.2%
2,290 Essex Property Trust Inc. 266,327
5,846 LaSalle Hotel Properties 253,833
3,370 Lexington Corporate Properties Trust 70,096
5,110 Northstar Realty Finance Corporation 63,926
12,531 SL Green Realty Corporation 1,552,466
10,211 Tanger Factory Outlet Centers 382,402
7,503 Taubman Centers Inc. 372,224
--------------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 2,961,274
-------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.4%
30,370 Canadian National Railways Company 1,546,744
29,960 Canadian Pacific Railway Limited 2,061,847
27,010 Hertz Global Holdings, Inc., (2) 717,656
11,680 Landstar System 563,560
3,980 Union Pacific Corporation 458,297
--------------------------------------------------------------------------------------------------------------------------------
Total Road & Rail 5,348,104
-------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.8%
86,010 ASM Lithography Holding NV, (2) 2,360,975
146,420 Micron Technology, Inc., (2) 1,834,643
55,770 National Semiconductor Corporation 1,576,618
8,650 Semtech Corporation, (2) 149,905
114,030 STMicroelectronics NV 2,188,236
161,720 Taiwan Semiconductor Manufacturing Company 1,799,948
Ltd., Sponsored ADR
21,880 Teradyne Inc., (2) 384,650
19,130 Trident Microsystems Inc., (2) 351,036
3,530 Zoran Corporation, (2) 70,741
--------------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 10,716,752
-------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.5%
5,960 Ansys Inc., (2) 157,940
8,005 Aspen Technology Inc., (2) 112,070
14,250 Autodesk, Inc., (2) 670,890
10,268 Blackbaud, Inc. 226,717
5,070 Blackboard, Inc., (2) 213,548
15,180 BMC Software, Inc., (2) 459,954
53,990 Business Objects SA, (2) 2,096,972
22,690 Cadence Design Systems, Inc., (2) 498,272
20,770 Cognos Inc., (2) 823,946
34,070 Intuit Inc., (2) 1,024,826
7,200 SAP AG, Sponsored ADR 367,704
4,870 SPSS Inc., (2) 214,962
19,110 Synopsys Inc., (2) 505,077
--------------------------------------------------------------------------------------------------------------------------------
Total Software 7,372,878
-------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.4%
3,830 Aeropostale, Inc., (2) 159,634
59,900 American Eagle Outfitters, Inc. 1,537,034
4,500 Gymboree Corporation, (2) 177,345
2,620 J Crew Group, Inc., (2) 141,716
9,990 Luxottica Group SpA 386,014
8,750 PetSmart Inc. 283,938
47,730 RadioShack Corporation 1,581,772
38,520 Sony Corporation 1,978,772
--------------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 6,246,225
-------------------------------------------------------------------------------------------------------------------
20
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.1%
2,970 Deckers Outdoor Corporation, (2) $ 299,673
11,828 Guess Inc. 568,217
6,190 VF Corporation 566,880
--------------------------------------------------------------------------------------------------------------------------------
Total Textiles, Apparel & Luxury Goods 1,434,770
-------------------------------------------------------------------------------------------------------------------
TOBACCO - 0.3%
10,640 British American Tobacco PLC 735,650
7,800 Imperial Tobacco Group 719,394
110 Japan Tobacco, Inc. 543,188
33,860 UST Inc. 1,818,621
--------------------------------------------------------------------------------------------------------------------------------
Total Tobacco 3,816,853
-------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.0%
4,994 GATX Corporation 245,955
-------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.0%
23,480 NTT DoCoMo Inc. 370,984
--------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $294,524,992) 311,515,243
===================================================================================================================
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED SECURITIES - 1.6% (1.0% OF TOTAL INVESTMENTS)
AUTOMOBILES - 0.3%
63,700 General Motors Corporation 5.250% B- $ 1,407,770
119,500 General Motors Corporation 6.250% B- 2,994,670
--------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 4,402,440
-------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.3%
14,500 Affiliated Managers Group Inc. 5.100% BB 848,250
51,150 Affiliated Managers Group Inc. 5.100% BB 2,992,275
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 3,840,525
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.1%
14,750 Sovereign Capital Trust IV 4.375% Baa1 693,250
20,700 Washington Mutual, Inc., Unit 1 Trust 5.375% A3 1,138,500
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 1,831,750
-------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.2%
2,300 Lucent Technologies Capital Trust I 7.750% B1 2,369,000
--------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
2,500 Owens-Illinois, Inc. 4.750% B- 105,625
--------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.1%
6,900 Bunge Limited 4.875% NA 796,088
--------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.0%
250 NRG Energy Inc. 4.000% B2 533,750
--------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.1%
800 Freeport McMoran Copper & Gold, Inc. 5.500% B- 1,460,600
--------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.3%
5,550 Chesapeake Energy Corporation 5.000% B 619,519
550 El Paso Corporation 4.990% B 803,688
14,540 Williams Companies Inc. 5.500% B 2,157,373
--------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 3,580,580
-------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.1%
20,550 HRPT Properties Trust 6.500% BBB- 489,501
9,050 Simon Property Group, Inc., Series I 6.000% BBB+ 687,710
--------------------------------------------------------------------------------------------------------------------------------
Total Real Estate 1,177,211
-------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.0%
12,050 United Rentals Trust I 6.500% B- 594,969
--------------------------------------------------------------------------------------------------------------------------------
21
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
U.S. AGENCY - 0.1%
19 Fannie Mae 5.375% AA- $ 1,888,493
--------------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED SECURITIES (COST $20,249,843) 22,581,031
===================================================================================================================
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
$25 PAR (OR SIMILAR) PREFERRED SECURITIES - 47.2% (29.7% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 5.9%
229,904 BNY Capital Trust V, Series F 5.950% Aa3 $ 5,338,371
148,300 Compass Capital Trust III 7.350% A3 3,710,466
11,300 CSFB USA, Series 2002-10 (SATURNS) 7.000% AA- 283,404
668,774 Deutsche Bank Capital Funding Trust II 6.550% Aa3 16,453,512
34,200 First Union Institutional Capital II (CORTS) 8.200% A1 917,244
6,400 Goldman Sachs Capital I, Series A (CORTS) 6.000% A1 145,216
4,400 Goldman Sachs Group Inc. (SATURNS) 5.750% AA- 97,416
4,800 Goldman Sachs Group Inc., Series 2004-06 (SATURNS) 6.000% A1 111,360
42,700 Goldman Sachs Group Inc., Series 2004-4 (SATURNS) 6.000% A1 963,312
7,400 Goldman Sachs Group Inc., Series GSC-3 (PPLUS) 6.000% A1 168,424
527,188 Lehman Brothers Holdings Capital Trust III, Series K 6.375% A2 12,441,637
3,300 Lehman Brothers Holdings Capital Trust IV, Series L 6.375% A2 78,771
153,700 Merrill Lynch Preferred Capital Trust III 7.000% A1 3,844,037
124,400 Merrill Lynch Preferred Capital Trust IV 7.120% A1 3,118,708
358,400 Merrill Lynch Preferred Capital Trust V 7.280% A1 9,031,680
314,334 Morgan Stanley Capital Trust III 6.250% A1 7,518,869
456,907 Morgan Stanley Capital Trust IV 6.250% A1 10,773,867
305,429 Morgan Stanley Capital Trust VII 6.600% A2 7,476,902
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 82,473,196
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 8.8%
33,100 Abbey National PLC, Series C 7.375% A+ 831,472
74,970 ABN AMRO Capital Fund Trust V 5.900% A1 1,736,305
73,600 ASBC Capital I 7.625% A3 1,850,304
43,785 BAC Capital Trust I 7.000% Aa2 1,097,252
111,055 BAC Capital Trust II 7.000% Aa2 2,789,702
284,700 BAC Capital Trust III 7.000% Aa2 7,128,888
317,222 Banco Santander Series 144A 6.800% A+ 7,910,724
190,664 Banco Santander, 144A 6.500% A 4,677,236
42,112 Banco Santander 6.410% Aa3 1,047,747
9,100 BancorpSouth Capital Trust I 8.150% Baa1 229,866
231,600 Banesto Holdings, Series A, 144A 10.500% A1 6,846,675
81,700 Bank One Capital Trust VI 7.200% Aa3 2,075,997
4,000,000 BNP Paribas 7.195% Aa3 4,057,824
300 Capital One Capital II Corporation 7.500% Baa1 7,669
8,803 Chittenden Capital Trust I 8.000% A3 220,625
234,100 Citizens Funding Trust I 7.500% Baa2 5,947,615
107,000 Cobank ABC, 144A, (4) 7.000% A 5,308,805
338,700 Fleet Capital Trust VIII 7.200% Aa2 8,525,079
771,620 HSBC Finance Corporation 6.875% AA- 19,406,243
22,360 HSBC Holdings PLC, Series A 6.200% A1 533,286
137,400 KeyCorp Capital Trust IX 6.750% Baa1 3,398,246
539,400 National City Capital Trust II 6.625% A3 13,282,725
43,550 PNC Capital Trust 6.125% A2 1,013,844
24,029 Royal Bank of Scotland Group PLC, Series L 5.750% A1 532,723
91,395 Royal Bank of Scotland Group PLC, Series N 6.350% A1 2,211,759
198,427 USB Capital Trust XI 6.600% A1 4,905,115
30,060 VNB Capital Trust I 7.750% A3 757,211
141,648 Wachovia Capital Trust IX 6.375% A1 3,430,545
182,517 Wachovia Trust IV 6.375% A1 4,366,263
80,735 Wells Fargo Capital Trust V 7.000% Aa2 2,030,485
86,002 Wells Fargo Capital Trust VII 5.850% Aa2 2,011,587
80,700 Zions Capital Trust B 8.000% BBB- 2,036,061
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 122,205,878
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.0%
4,600 IBM Inc., Trust Certificates, Series 2001-2 7.100% A+ 115,000
--------------------------------------------------------------------------------------------------------------------------------
22
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 3.6%
63,130 BAC Capital Trust XII 6.875% Aa3 $ 1,622,757
86,500 Citigroup Capital Trust VII 7.125% Aa2 2,178,070
241,654 Citigroup Capital Trust VIII 6.950% Aa2 6,053,433
32,900 Citigroup Capital XIV 6.875% Aa2 843,227
68,255 Citigroup Capital XV 6.500% Aa3 1,680,779
57,300 Citigroup Capital XVI 6.450% Aa2 1,397,547
18,200 Citigroup Capital XVII 6.350% Aa2 439,075
11,000 General Electric Capital Corporation 6.050% AAA 266,063
33,100 General Electric Capital Corporation 6.625% AAA 826,507
16,800 ING Group N.V. 6.200% A1 399,000
786,475 ING Group N.V. 7.050% A 19,724,793
569,518 ING Group N.V. 7.200% A1 14,323,378
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 49,754,629
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.3%
67,000 AT&T Inc. 6.375% A 1,660,347
21,900 BellSouth Capital Funding (CORTS) 7.100% A 559,545
18,300 BellSouth Corporation (CORTS) 7.000% A 431,194
22,600 Verizon Communications (CORTS) 7.375% A 569,520
17,500 Verizon Communications (CORTS) 7.625% A 440,825
3,700 Verizon Communications, Series 2004-1 (SATURNS) 6.125% A+ 88,171
1,800 Verizon Global Funding Corporation Trust III, Series III (CORTS) 6.250% A 43,938
13,900 Verizon New England Inc., Series B 7.000% A3 349,724
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 4,143,264
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.6%
22,200 DTE Energy Trust I 7.800% Baa3 564,990
40,670 Entergy Louisiana LLC 7.600% A- 1,017,563
135,100 FPL Group Capital Inc. 6.600% A3 3,361,288
500 Georgia Power Company 5.750% A 11,525
4,900 National Rural Utilities Cooperative Finance Corporation 5.950% A3 113,386
6,600 National Rural Utilities Cooperative Finance Corporation 6.100% A3 153,252
2,800 Southern Company Capital Trust VI 7.125% BBB+ 70,056
134,400 Virginia Power Capital Trust 7.375% Baa2 3,394,944
--------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 8,687,004
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.1%
27,100 Dairy Farmers of America Inc., 144A 7.875% BBB- 2,743,875
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 10.7%
556,210 Ace Ltd., Series C 7.800% Baa2 14,177,793
11,556 Aegon N.V. 6.875% A- 291,673
976,600 Aegon N.V., (4) 6.375% A- 23,789,976
8,867 AMBAC Financial Group Inc. 5.950% AA 202,788
25,700 Arch Capital Group Limited, Series B 7.785% Baa3 652,780
408,100 Arch Capital Group Limited 8.000% BBB- 10,406,550
14,700 Berkley WR Corporation, Capital Trust II 6.750% BBB- 366,471
1,221,100 Delphi Financial Group, Inc. 8.000% BBB+ 31,443,325
3,000,000 Everest Reinsurance Holdings, Inc. 6.600% Baa1 2,863,170
322,955 EverestRe Capital Trust II 6.200% Baa1 7,379,522
110,400 EverestRe Group Limited 7.850% Baa1 2,803,056
82,200 Financial Security Assurance Holdings 6.250% AA 1,971,978
3,500 Lincoln National Capital Trust VI 6.750% A- 87,150
1,800 Markel Corporation 7.500% BBB- 46,647
809,050 PartnerRe Limited, Series C 6.750% BBB+ 19,902,630
82,200 PLC Capital Trust III 7.500% BBB+ 2,080,071
32,900 PLC Capital Trust IV 7.250% BBB+ 822,171
7,600 PLC Capital Trust V 6.125% BBB+ 175,560
47,900 Protective Life Corporation 7.250% BBB 1,216,660
37,400 Prudential PLC 6.750% A 938,740
376,951 RenaissanceRe Holdings Limited, Series B 7.300% BBB 9,525,552
75,000 RenaissanceRe Holdings Ltd 6.600% BBB 1,781,625
27,300 Safeco Capital Trust I (CORTS) 8.750% Baa2 792,792
7,500 Safeco Capital Trust IV (CORTS) 8.375% Baa2 208,875
47,400 Safeco Corporation, Series 2001-7 (SATURNS) 8.250% Baa2 1,186,659
44,900 Safeco Corporation, Series 2002-5 (SATURNS) 8.250% Baa2 1,124,296
23
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE (continued)
151,100 XL Capital Ltd, Series A 8.000% Baa1 $ 3,789,588
341,200 XL Capital Ltd, Series B 7.625% Baa1 8,547,060
--------------------------------------------------------------------------------------------------------------------------------
Total Insurance 148,575,158
-------------------------------------------------------------------------------------------------------------------
MEDIA - 2.9%
410,172 CBS Corporation 6.750% BBB 9,997,943
43,700 CBS Corporation 7.250% BBB 1,097,307
580,200 Comcast Corporation 7.000% BBB+ 14,505,000
605,900 Viacom Inc. 6.850% BBB 14,844,550
--------------------------------------------------------------------------------------------------------------------------------
Total Media 40,444,800
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.1%
55,600 Dominion CNG Capital Trust I 7.800% Baa2 1,407,236
--------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.9%
477,800 Nexen Inc. 7.350% Baa3 12,136,120
--------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 10.9%
10,500 AvalonBay Communities, Inc., Series H 8.700% BBB 272,790
3,000 BRE Properties, Series B 8.080% BBB- 75,345
15,266 BRE Properties, Series C 6.750% BBB- 368,674
658,185 Developers Diversified Realty Corporation, Series G 8.000% BBB- 16,645,499
74,900 Developers Diversified Realty Corporation, Series H 7.375% BBB- 1,883,735
73,000 Duke Realty Corporation, Series L 6.600% BBB 1,767,330
36,828 Duke-Weeks Realty Corporation 6.950% BBB 929,907
11,800 Equity Residential Properties Trust, Series D 8.600% BBB 294,056
389,370 Equity Residential Properties Trust, Series N 6.480% BBB 9,142,408
267,400 First Industrial Realty Trust, Inc., Series J 7.250% BBB- 6,749,176
232,400 HRPT Properties Trust, Series B 8.750% BBB- 5,895,988
652,100 HRPT Properties Trust, Series C 7.125% BBB- 16,419,878
456,287 Kimco Realty Corporation, Series F 6.650% BBB+ 11,183,594
32,982 Prologis Trust, Series C 8.540% BBB 2,003,657
12,500 Prologis Trust, Series G 6.750% BBB 308,500
2,000 PS Business Parks, Inc., Series K 7.950% BBB- 52,700
51,900 Public Storage, Inc., Series E 6.750% BBB+ 1,265,841
15,000 Public Storage, Inc., Series F 6.450% BBB+ 348,750
8,259 Public Storage, Inc., Series H 6.950% BBB+ 205,979
149,400 Public Storage, Inc., Series I 7.250% BBB+ 3,817,170
1,700 Public Storage, Inc., Series K 7.250% BBB+ 43,722
223,941 Public Storage, Inc., Series M 6.625% BBB+ 5,354,989
32,300 Public Storage, Inc., Series V 7.500% BBB+ 812,991
228,400 Public Storage, Inc. 6.750% BBB+ 5,598,655
319,900 Realty Income Corporation, Series E 6.750% BBB- 7,997,500
9,100 Regency Centers Corporation 7.250% BBB- 227,955
216,495 Regency Centers Corporation 7.450% BBB- 5,440,519
7,000 Simon Property Group, Inc., Series G 7.890% BBB 350,140
1,000 Vornado Realty Trust, Series F 6.750% BBB- 24,570
16,800 Vornado Realty Trust, Series G 6.625% BBB- 397,824
3,400 Vornado Realty Trust, Series H 6.750% BBB- 82,552
54,200 Vornado Realty Trust, Series I 6.625% BBB- 1,289,960
1,112,945 Wachovia Preferred Funding Corporation 7.250% A2 29,615,466
628,830 Weingarten Realty Trust, Preferred 6.750% A- 15,657,867
Securities
--------------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 152,525,687
-------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 2.3%
99,500 Countrywide Capital Trust III (PPLUS) 8.050% BBB+ 2,573,568
1,107,335 Countrywide Capital Trust IV 6.750% BBB+ 25,889,492
121,978 Countrywide Capital Trust V 7.000% BBB+ 3,015,150
--------------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 31,478,210
-------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
33,900 United States Cellular Corporation 8.750% A- 865,806
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $25 PAR (OR SIMILAR) PREFERRED 657,555,863
SECURITIES (COST $673,324,176)
===================================================================================================================
24
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (6) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE SENIOR LOAN INTERESTS - 7.5% (4.7% OF TOTAL INVESTMENTS) (5)
AIRLINES - 0.1%
$ 997 American Airlines, Term Loan, WI/DD TBD TBD BB- $ 998,223
-----------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.1%
1,500 Federal Mogul Corporation, Term Loan A 7.070% 12/31/07 N/R 1,503,938
-----------------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.4%
3,000 Nortek, Inc., Term Loan B 7.610% 8/27/11 Ba2 2,997,750
999 Stile Acquisition Corporation, Term Loan B, WI/DD TBD TBD BB 971,665
1,001 Stile Acquisition Corporation, Term Loan B, WI/DD TBD TBD BB 973,368
993 TFS Acquisition, Term Loan 8.860% 8/11/13 B+ 999,944
-----------------------------------------------------------------------------------------------------------------------------------
5,993 Total Building Products 5,942,727
-----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.2%
2,549 Aramark Corporation, Term Loan, DD1 TBD TBD BB- 2,553,866
199 Aramark, Letter of Credit, DD1 TBD TBD BB- 199,639
-----------------------------------------------------------------------------------------------------------------------------------
2,748 Total Commercial Services & Supplies 2,753,505
-----------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.1%
1,514 Intelsat, Ltd., Term Loan B 7.349% 7/03/13 BB+ 1,519,570
-----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.1%
343 Bluegrass Container Company, LLC, 1st Lien Term Loan 7.570% 6/30/13 BB 344,316
1,146 Bluegrass Container Company, LLC, Term Loan B 7.570% 6/30/13 BB 1,150,741
-----------------------------------------------------------------------------------------------------------------------------------
1,489 Total Containers & Packaging 1,495,057
-----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1%
2,000 Cequel Communications LLC., Term Loan B 7.351% 11/05/13 B+ 1,992,955
-----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.3%
3,491 Calpine Corporation, DD1 TBD TBD B 3,499,615
-----------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.3%
1,500 Kinder Morgan, Inc., Term Loan 6.820% 5/30/14 Ba2 1,500,670
2,000 Petroleum Geo-Services, Term Loan, WI/DD TBD TBD Ba2 2,000,000
-----------------------------------------------------------------------------------------------------------------------------------
3,500 Total Energy Equipment & Services 3,500,670
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 1.5%
5,000 Community Health Systems, Inc., Term Loan, WI/DD TBD TBD Ba3 5,011,720
500 Concentra, Inc., Term Loan, WI/DD TBD TBD Ba2 502,031
4,975 HCA, Inc., Term Loan 7.610% 11/17/13 BB 5,002,693
998 Health Management Associates, Term Loan 7.110% 2/28/14 Ba2 999,626
127 IASIS Healthcare Corporation, WI/DD TBD TBD Ba2 127,424
477 IASIS Healthcare Corporation, WI/DD TBD TBD Ba2 477,842
1,393 IASIS Healthcare LLC, Term Loan B, WI/DD TBD TBD Ba2 1,395,127
808 LifePoint Hospitals Holdings, Inc., Term Loan B 6.985% 4/15/14 BB 806,391
2,862 Select Medical Corporation, Term Loan, WI/DD TBD TBD Ba2 2,853,414
323 Sun Healthcare Group, Inc., Term Loan, WI/DD TBD TBD Ba2 323,874
408 Sun Healthcare Group, Inc., Term Loan, WI/DD TBD TBD Ba2 409,468
1,800 Sun Healthcare Group, Inc., Term Loan, WI/DD TBD TBD Ba2 1,805,745
998 Vanguard Health Holding Company, LLC, TBD TBD Ba3 1,002,697
Replacement Term Loan, WI/DD
-----------------------------------------------------------------------------------------------------------------------------------
20,669 Total Health Care Providers & Services 20,718,052
-----------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.5%
990 Cedar Fair LP, Term Loan 7.320% 8/30/12 BB 995,259
134 Travelport, Term Loan 7.860% 8/23/13 BB- 134,908
1,262 Travelport, Term Loan 7.820% 8/23/13 BB- 1,269,145
1,000 Venetian Casino Resort, LLC, Delayed Draw, Term Loan (7) (8) TBD TBD BB (893)
4,000 Venetian Casino Resort, LLC, Term Loan, DD1 TBD TBD BB 3,996,428
-----------------------------------------------------------------------------------------------------------------------------------
7,386 Total Hotels, Restaurants & Leisure 6,394,847
-----------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.2%
2,923 Dealer Computer Service, Term Loan 7.360% 10/26/12 BB 2,940,627
-----------------------------------------------------------------------------------------------------------------------------------
25
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (6) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.1%
$ 1,990 Oshkosh Truck Corporation, Term Loan 7.110% 12/06/13 BBB- $ 1,998,700
-----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 1.9%
2,000 Blockbuster, Inc., Term Loan B, WI/DD TBD TBD B+ 1,998,875
1,075 Charter Communications Operating, LLC, Term Loan 7.320% 3/06/14 B+ 1,066,938
3,000 Charter Communications Operating, LLC, Term Loan 7.360% 9/06/14 B1 2,977,500
1,500 Citadel Broadcasting Company, Term Loan 6.945% 6/12/14 BB- 1,490,625
4,000 Discovery Communications, Term Loan 7.360% 5/14/14 N/R 4,021,876
2,982 Neilsen Finance LLC, Term Loan B, DD1 TBD TBD Ba3 3,003,924
956 Philadelphia Newspapers, Term Loan 8.100% 6/29/13 N/R 960,526
1,000 Tribune Company, Term Loan 7.875% 5/17/09 BB+ 1,001,771
5,000 Tribune Company, Term Loan 8.375% 5/17/14 BB+ 4,893,750
362 Univision Communications, Inc., Delayed 1.000% 9/29/14 Ba3 (4,478)
Draw, Term Loan (7) (8)
5,638 Univision Communications, Term Loan 7.605% 9/15/14 Ba3 5,567,926
-----------------------------------------------------------------------------------------------------------------------------------
27,513 Total Media 26,979,233
-----------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.3%
1,084 NRG Energy Inc., Term Loan 7.010% 2/01/13 Ba1 1,080,517
800 NRG Energy Inc., Delayed Draw, Term Loan (7)(8) 7.110% 2/01/13 Ba1 (5,000)
2,610 NRG Energy Inc., Term Loan 7.110% 2/01/13 Ba1 2,602,718
-----------------------------------------------------------------------------------------------------------------------------------
4,494 Total Multi-Utilities 3,678,235
-----------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.1%
990 Georgia-Pacific Corporation, Term Loan B 7.110% 12/20/10 BB+ 993,334
1,446 Ply Gem Industries Inc., Term Loan 8.110% 8/15/11 BB- 1,442,351
54 Ply Gem Industries Inc., Term Loan 8.110% 8/15/11 B+ 53,763
-----------------------------------------------------------------------------------------------------------------------------------
2,490 Total Paper & Forest Products 2,489,448
-----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.1%
1,000 LNR Property Corporation, Term Loan B 8.110% 7/12/11 B+ 1,002,143
-----------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.4%
5,000 Swift Transportation, Term Loan 8.375% 5/10/14 BB- 4,947,320
-----------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.1%
1,016 Advanced Micro Devices, Term Loan B 7.360% 12/31/13 Ba2 1,015,556
-----------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.1%
1,318 Intergraph Corporation, Term Loan 7.610% 5/29/13 B+ 1,325,091
-----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.5%
2,500 Burlington Coat Factory Warehouse 7.610% 5/28/11 B2 2,475,348
Corporation, Term Loan
3,477 Michaels Stores Inc., Term Loan, DD1 TBD TBD B 3,448,361
1,500 Toys "R" Us, Inc., Term Loan 8.320% 7/19/12 B3 1,508,555
-----------------------------------------------------------------------------------------------------------------------------------
7,477 Total Specialty Retail 7,432,264
-----------------------------------------------------------------------------------------------------------------------------------
$ 106,508 TOTAL VARIABLE RATE SENIOR LOAN INTERESTS 104,127,776
(COST $104,322,394)
===================================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS - 15.5% (9.7% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.3%
$ 500 Alliant Techsystems Inc., 144A 2.750% 9/15/11 B+ $ 580,625
500 Armor Holdings Inc. 2.000% 11/01/24 B+ 895,000
450 DRS Technologies, Inc., 144A 2.000% 2/01/26 B+ 495,000
800 L-3 Communications Corporation 3.000% 8/01/35 BB+ 906,000
750 Lockheed Martin Corporation 5.110% 8/15/33 A- 1,011,300
-----------------------------------------------------------------------------------------------------------------------------------
3,000 Total Aerospace & Defense 3,887,925
-----------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.0%
400 Arvinmeritor, Inc. 4.625% 3/01/26 B+ 505,500
-----------------------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 1.2%
6,650 Amgen Inc., 144A, DD1 0.125% 2/01/11 A+ 6,051,500
500 Amgen Inc., 144A 0.375% 2/01/13 A+ 446,250
26
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY (continued)
$ 1,000 Amgen Inc. 0.375% 2/01/13 A+ $ 892,500
750 Cephalon, Inc., Series B 2.000% 6/01/15 B- 1,377,188
1,000 Genzyme Corporation 1.250% 12/01/23 BBB 1,055,000
2,600 Medimmune Inc. 1.375% 7/15/11 BBB 4,647,500
1,250 Medimmune, Inc. 1.625% 7/15/13 BBB 2,281,250
----------------------------------------------------------------------------------------------------------------------------------
13,750 Total Biotechnology 16,751,188
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
250 BlackRock Inc. 2.625% 2/15/35 A+ 396,563
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.2%
2,750 U.S. Bancorp 3.607% 8/06/37 AA 2,732,125
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.0%
450 Getty Images, Inc. 0.500% 6/09/23 Ba2 453,375
----------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.9%
2,000 Ciena Corporation 3.750% 2/01/08 B 1,987,500
400 Juniper Networks Inc. 0.000% 6/15/08 BB 518,000
6,880 Lucent Technologies Inc., Series B 2.750% 6/15/25 Ba2 7,740,000
1,515 Lucent Technologies Inc. 2.750% 6/15/23 Ba2 1,600,219
1,250 Nortel Networks Corp. 4.250% 9/01/08 B- 1,239,063
----------------------------------------------------------------------------------------------------------------------------------
12,045 Total Communications Equipment 13,084,782
----------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.3%
1,350 EMC Corporation 144A 1.750% 12/01/11 BBB+ 1,711,125
1,250 EMC Corporation 144A 1.750% 12/01/13 BBB+ 1,598,438
350 Maxtor Corporation 2.375% 8/15/12 BB+ 483,875
850 Sandisk Corporation 1.000% 5/15/13 BB- 751,188
----------------------------------------------------------------------------------------------------------------------------------
3,800 Total Computers & Peripherals 4,544,626
----------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.3%
2,530 Quanta Services Inc., Series 144A 3.750% 4/30/26 N/R 3,823,463
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.1%
750 SLM Corporation 5.305% 7/25/35 A2 753,000
----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
550 Sealed Air Corporation, 144A 3.000% 6/30/33 BBB 559,625
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.2%
300 Leucadia National Corporation 3.750% 4/15/14 B+ 501,375
1,750 Merrill Lynch & Co. Inc. 0.000% 3/13/32 Aa3 2,155,825
----------------------------------------------------------------------------------------------------------------------------------
2,050 Total Diversified Financial Services 2,657,200
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2%
1,650 Qwest Communications International Inc. 3.500% 11/15/25 B+ 2,899,875
----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
1,125 Centerpoint Energy Inc. 3.750% 5/15/23 BBB- 1,753,594
----------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.0%
350 General Cable Corporation 0.875% 11/15/13 B+ 563,063
----------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.3%
650 Anixter International Inc. 0.000% 7/07/33 BB- 740,188
300 Fisher Scientific International, Inc. 2.500% 10/01/23 BBB+ 669,375
500 SESI LLC, 144A 1.500% 12/15/26 BB- 540,625
800 Solectron Corporation, Series B 0.500% 2/15/34 BB- 767,000
800 Tech Data Corporation, 2.750% 12/15/26 BBB- 782,000
500 Vishay Intertechnology Inc. 3.625% 8/01/23 B+ 511,250
----------------------------------------------------------------------------------------------------------------------------------
3,550 Total Electronic Equipment & Instruments 4,010,438
----------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 1.2%
350 Cooper Cameron Corporation 1.500% 5/15/24 BBB+ 731,938
850 Halliburton Company 3.125% 7/15/23 A2 1,577,813
27
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES (continued)
$ 1,100 Nabors Industries Inc. Series 144A 0.940% 5/15/11 A- $ 1,078,000
4,775 Nabors Industries Inc. Series 144A 0.940% 5/15/11 A- 4,679,500
4,850 Nabors Industries Inc., DD1 0.000% 6/15/23 N/R 5,219,813
500 Pride International Inc. 3.250% 5/01/33 Ba2 749,375
1,200 Schlumberger Limited 2.125% 6/01/23 A+ 2,562,000
450 Transocean Inc. 1.500% 5/15/21 A- 667,125
----------------------------------------------------------------------------------------------------------------------------------
14,075 Total Energy Equipment & Services 17,265,564
----------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.1%
900 Archer Daniels Midland Company, 144A 0.875% 2/15/14 A 859,500
1,000 General Mills, Inc. 5.332% 4/11/37 BBB+ 1,000,000
----------------------------------------------------------------------------------------------------------------------------------
1,900 Total Food Products 1,859,500
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 1.2%
500 Advanced Medical Optics 3.250% 8/01/26 N/R 450,625
550 Beckman Coulter Inc., 144A 2.500% 12/15/36 BBB 585,750
250 Medtronic, Inc. 1.500% 4/15/11 AA- 266,250
12,725 Medtronic, Inc. 1.500% 4/15/11 AA- 13,552,125
1,200 Medtronic, Inc. 1.625% 4/15/13 AA- 1,266,000
950 Saint Jude Medical, Inc., 144A 1.220% 12/15/08 BBB+ 942,875
----------------------------------------------------------------------------------------------------------------------------------
16,175 Total Health Care Equipment & Supplies 17,063,625
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.3%
600 Health Management Associates Inc. 1.500% 8/01/23 Baa3 644,250
500 LifePoint Hospitals Inc. 3.250% 8/15/25 B 467,500
600 Manor Care, Inc. 2.125% 8/01/35 BBB- 903,750
1,800 Omnicare, Inc. 3.250% 12/15/35 BB- 1,514,250
----------------------------------------------------------------------------------------------------------------------------------
3,500 Total Health Care Providers & Services 3,529,750
----------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.8%
2,750 Caesars Entertainment Inc. 5.350% 4/15/24 Baa3 3,678,675
850 Carnival Corporation 2.000% 4/15/21 A- 1,077,375
6,215 Carnival Corporation 1.132% 4/29/33 A- 4,288,350
500 Hilton Hotels Corporation 3.375% 4/15/23 BB+ 755,625
1,150 International Game Technology, 144A 2.600% 12/15/36 BBB 1,125,563
----------------------------------------------------------------------------------------------------------------------------------
11,465 Total Hotels, Restaurants & Leisure 10,925,588
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.1%
2,500 3M Company 0.000% 11/21/32 Aa1 2,265,625
----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.6%
5,655 American Financial Group Inc. 1.486% 6/02/33 BBB 3,385,931
300 Aon Corporation 3.500% 11/15/12 BBB+ 597,375
700 Conseco, Inc. 3.500% 9/30/35 BB- 714,875
3,900 Prudential Financial, Inc. 2.960% 12/12/36 A+ 4,039,620
----------------------------------------------------------------------------------------------------------------------------------
10,555 Total Insurance 8,737,801
----------------------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.0%
254 Amazon.com Inc. 4.750% 2/01/09 Ba3 260,033
----------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.1%
600 Yahoo! Inc. 0.000% 4/01/08 BBB- 813,000
----------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
750 Electronic Data Systems Corporation 3.875% 7/15/23 BBB- 763,125
----------------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.1%
500 Eastman Kodak Company 3.375% 10/15/33 B1 527,500
300 Hasbro Inc. 2.750% 12/01/21 BBB- 438,750
----------------------------------------------------------------------------------------------------------------------------------
800 Total Leisure Equipment & Products 966,250
----------------------------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.1%
350 Apogent Technologies, Inc. 4.110% 12/15/33 BBB+ 646,590
450 Millipore Corporation 3.750% 6/01/26 N/R 484,313
----------------------------------------------------------------------------------------------------------------------------------
800 Total Life Sciences Tools & Services 1,130,903
----------------------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.5%
$ 250 Danaher Corporation 0.000% 1/22/21 A+ $ 277,188
250 Kaydon Corporation 4.000% 5/23/23 BB- 452,500
5,000 Trinity Industries Inc. 3.875% 6/01/36 BB- 5,631,250
----------------------------------------------------------------------------------------------------------------------------------
5,500 Total Machinery 6,360,938
----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 1.5%
500 Interpublic Group, Inc. 4.250% 3/15/23 Ba3 588,125
750 Liberty Media Corporation, Senior Debentures 3.750% 2/15/30 BB+ 469,688
Exchangeable for Motorola Common Stock
3,460 Liberty Media Corporation, Senior Debentures 3.500% 1/15/31 BB+ 2,867,060
Exchangeable for Motorola Common Stock
750 Liberty Media Corporation, Senior 4.000% 11/15/29 BB+ 508,125
Debentures, Exchangeable for PCS Common Stock, Series 1
8,340 Liberty Media Corporation 0.750% 3/30/23 BB+ 10,237,350
1,650 Omnicom Group, Inc. 0.000% 2/07/31 A- 1,722,188
3,675 Omnicom Group Inc. 0.000% 7/01/38 A- 4,001,156
950 Walt Disney Company 2.125% 4/15/23 A2 1,142,375
----------------------------------------------------------------------------------------------------------------------------------
20,075 Total Media 21,536,067
----------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.1%
1,511 Coeur d'Alene Mines Corporation 1.250% 1/15/24 B- 1,350,456
----------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.3%
3,025 Dominion Resources Inc., Series C 2.125% 12/15/23 BBB 3,550,594
----------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.6%
1,350 Chesapeake Energy Corporation, 144A 2.750% 11/15/35 BB 1,469,813
550 Devon Energy Corporation 4.900% 8/15/08 BBB 867,625
5,250 Peabody Energy Corp., DD1 4.750% 12/15/66 Ba3 5,571,563
----------------------------------------------------------------------------------------------------------------------------------
7,150 Total Oil, Gas & Consumable Fuels 7,909,001
----------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.9%
3,545 Allergan Inc., 144A 1.500% 4/01/26 A 3,766,563
3,650 Allergan Inc. 1.500% 4/01/26 A 3,878,125
750 Bristol-Myers Squibb Company 4.860% 9/15/23 A+ 763,125
500 Myland Labs, Inc. 1.250% 3/15/12 BB+ 485,000
650 Teva Pharmaceutical Finance, Series A 0.500% 2/01/24 BBB 749,125
650 Teva Pharmaceutical Finance, Series B 0.250% 2/01/24 BBB 794,625
600 Watson Pharmaceuticals Inc. 1.750% 3/15/23 BB+ 584,250
1,200 Wyeth 4.883% 1/15/24 A+ 1,363,440
----------------------------------------------------------------------------------------------------------------------------------
11,545 Total Pharmaceuticals 12,384,253
----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 1.2%
550 Archstone-Smith Trust 4.000% 7/15/36 BBB+ 578,875
7,825 Boston Properties Limited Partnership, 144A 2.875% 2/15/37 BBB+ 7,345,719
600 Boston Properties Limited Partnership 3.750% 5/15/36 BBB+ 662,250
450 Brandywine Operating Partnership 3.875% 10/15/26 BBB- 430,313
550 BRE Properties Inc. 4.125% 8/15/26 BBB 571,313
750 Developers Diversified Realty Corporation 3.000% 3/15/12 BBB 693,750
500 Duke Realty Corporation, Series D 3.750% 12/01/11 BBB+ 477,500
600 Health Care REIT, Inc. 4.750% 12/01/26 Baa2 609,000
800 Hospitality Properties Trust 3.800% 3/15/27 BBB 776,000
500 Host Hotels & Resorts Inc, 144A 2.625% 4/15/27 BB 460,000
400 Host Marriott LP, 144A 3.250% 4/15/24 Ba1 570,500
1,000 Prologis, 144A 2.250% 4/01/37 BBB+ 947,500
650 Vornado Realty Trust 2.850% 4/01/27 BBB 606,125
700 Vornado Realty 3.875% 4/15/25 BBB 901,250
650 Weingarten Realty Investment Trust 3.950% 8/01/26 A- 657,313
----------------------------------------------------------------------------------------------------------------------------------
16,525 Total Real Estate 16,287,408
----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.2%
400 Forest City Enterprises, Inc. 3.625% 10/15/11 BB- 439,280
2,675 Tanger Properties Limited Partnership 3.750% 8/15/26 BBB- 2,999,344
----------------------------------------------------------------------------------------------------------------------------------
3,075 Total Real Estate Management & Development 3,438,624
----------------------------------------------------------------------------------------------------------------------------------
29
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.2%
$ 1,175 CSX Corporation 0.000% 10/30/21 BBB- $ 1,884,406
500 Yellow Roadway Corporation 5.000% 8/08/23 BBB- 611,875
----------------------------------------------------------------------------------------------------------------------------------
1,675 Total Road & Rail 2,496,281
----------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.5%
1,550 Advanced Micro Devices, Inc. 6.000% 5/01/15 B- 1,499,625
600 Cypress Semiconductor Corporation 144A 1.000% 9/15/09 B- 666,000
1,400 Intel Corporation 2.950% 12/15/35 A- 1,342,250
1,957 International Rectifier Corporation 4.250% 7/15/07 B+ 1,961,893
950 Xilinx Inc. 144A 3.125% 3/15/37 BB 961,875
----------------------------------------------------------------------------------------------------------------------------------
6,457 Total Semiconductors & Equipment 6,431,643
----------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.3%
2,522 Amdocs Limited 0.500% 3/15/24 BBB- 2,616,575
500 Computer Associates International Inc. Series 144A 1.625% 12/15/09 Ba1 669,375
500 Red Hat Inc. 0.500% 1/15/24 B+ 523,125
----------------------------------------------------------------------------------------------------------------------------------
3,522 Total Software 3,809,075
----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.1%
500 TJX Companies, Inc. 0.000% 2/13/21 A- 460,625
1,250 United Auto Group, Inc. 3.500% 4/01/26 B 1,354,688
----------------------------------------------------------------------------------------------------------------------------------
1,750 Total Specialty Retail 1,815,313
----------------------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.2%
1,260 GATX Corporation 5.000% 8/15/23 BBB+ 2,508,975
----------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
400 American Tower Corporation 3.000% 8/15/12 BB+ 844,500
----------------------------------------------------------------------------------------------------------------------------------
$ 195,844 TOTAL CONVERTIBLE BONDS (COST $204,698,243) 215,680,234
==================================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 9.4% (5.9% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.3%
$ 1,000 Hexcel Corporation, Term Loan 6.750% 2/01/15 B+ $ 975,000
2,500 K&F Acquisition Inc. 7.750% 11/15/14 B- 2,662,500
----------------------------------------------------------------------------------------------------------------------------------
3,500 Total Aerospace & Defense 3,637,500
----------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.0%
500 Keystone Automotive Operations Inc. 9.750% 11/01/13 CCC+ 437,500
----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.2%
1,000 Nell AF Sarl 8.375% 8/15/15 B 962,500
1,500 Rockwood Specialties Group Inc., Series WI 7.500% 11/15/14 B- 1,515,000
----------------------------------------------------------------------------------------------------------------------------------
2,500 Total Chemicals 2,477,500
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.0%
600 Williams Scotsman Inc. 8.500% 10/01/15 B+ 622,500
----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.3%
2,000 Owens-Brockway Glass Containers, Guaranteed 8.250% 5/15/13 BB 2,080,000
Senior Note
2,000 Owens-Illinois Inc. 7.800% 5/15/18 B 2,030,000
----------------------------------------------------------------------------------------------------------------------------------
4,000 Total Containers & Packaging 4,110,000
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.3%
2,000 Intelsat Subsidiary Holding Company Limited 8.500% 1/15/13 B+ 2,040,000
1,500 Telcorida Technologies, Inc. 9.110% 7/15/12 B 1,485,000
----------------------------------------------------------------------------------------------------------------------------------
3,500 Total Diversified Telecommunication Services 3,525,000
----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
500 Mirant North America LLC 7.375% 12/31/13 B2 513,750
1,000 Sierra Pacific Resources, Series 2006 6.750% 8/15/17 B1 988,060
----------------------------------------------------------------------------------------------------------------------------------
1,500 Total Electric Utilities 1,501,810
----------------------------------------------------------------------------------------------------------------------------------
30
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.2%
$ 1,200 Hanover Compressor Company 7.500% 4/15/13 B $ 1,212,000
1,500 Pride International Inc. 7.375% 7/15/14 Ba2 1,511,250
----------------------------------------------------------------------------------------------------------------------------------
2,700 Total Energy Equipment & Services 2,723,250
----------------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.1%
2,000 Stater Brothers Holdings Inc. 8.125% 6/15/12 B+ 2,025,000
----------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.2%
2,243 Dole Foods Company 7.875% 7/15/13 B- 2,198,140
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.5%
3,000 Community Health Systems, Inc. 8.875% 7/15/15 B3 3,056,250
700 HCA The Health Care Corporation Inc., 144A 9.125% 11/15/14 BB- 737,625
700 HCA The Health Care Corporation Inc., 144A 9.250% 11/15/16 BB- 747,250
2,500 US Oncology Inc. 10.750% 8/15/14 B2 2,687,500
----------------------------------------------------------------------------------------------------------------------------------
6,900 Total Health Care Providers & Services 7,228,625
----------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 1.4%
2,000 Boyd Gaming Corporation 7.750% 12/15/12 Ba3 2,060,000
1,500 Herbst Gaming Inc. 7.000% 11/15/14 B- 1,413,750
1,400 Jacobs Entertainment Inc. 9.750% 6/15/14 B- 1,461,250
2,000 Landry's Restaurants Inc., Series B 7.500% 12/15/14 B- 1,950,000
1,600 Park Place Entertainment 8.125% 5/15/11 Ba1 1,678,000
2,500 Park Place Entertainment 7.000% 4/15/13 Baa3 2,621,860
2,000 Pinnacle Entertainment Inc. 8.250% 3/15/12 B- 2,070,000
750 Pinnacle Entertainment Inc. 8.750% 10/01/13 B- 787,500
1,750 Seminole Hard Rock Entertainment, Inc. 7.860% 3/15/14 BB 1,771,875
4,000 Universal City Development Partners 11.750% 4/01/10 B1 4,250,000
----------------------------------------------------------------------------------------------------------------------------------
19,500 Total Hotels, Restaurants & Leisure 20,064,235
----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.1%
1,650 Central Garden & Pet Company 9.125% 2/01/13 B 1,707,750
----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
400 NRG Energy Inc. 7.250% 2/01/14 B1 402,000
400 NRG Energy Inc. 7.375% 2/01/16 B1 402,000
----------------------------------------------------------------------------------------------------------------------------------
800 Total Independent Power Producers & Energy 804,000
Traders
----------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.5%
1,625 Global Cash Access LLC 8.750% 3/15/12 B- 1,694,063
4,750 SunGard Data Systems Inc. 9.125% 8/15/13 B- 4,886,563
----------------------------------------------------------------------------------------------------------------------------------
6,375 Total IT Services 6,580,626
----------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.1%
2,000 Greenbrier Companies, Inc. 8.375% 5/15/15 B+ 2,025,000
----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.2%
4,000 Allbritton Communications Company, Series B 7.750% 12/15/12 B1 4,040,000
880 American Media Operations Inc., Series B 10.250% 5/01/09 Caa2 838,200
1,000 Cablevision Systems Corporation, Series B 8.125% 8/15/09 B+ 1,022,500
5,000 Cablevision Systems Corporation 7.250% 7/15/08 B+ 5,050,000
2,000 Charter Communications Operating LLC, 144A 8.000% 4/30/12 B+ 2,035,000
1,975 MediaNews Group Inc. 6.375% 4/01/14 B 1,654,063
1,950 Panamsat Corporation 9.000% 8/15/14 B2 2,042,625
5,000 Primedia Inc., Senior Notes 8.875% 5/15/11 B 5,162,500
4,550 Vertis Inc. 9.750% 4/01/09 B1 4,641,000
4,000 Young Broadcasting Inc., Senior Subordinated 10.000% 3/01/11 Caa1 4,000,000
Note
----------------------------------------------------------------------------------------------------------------------------------
30,355 Total Media 30,485,888
----------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.2%
2,000 Chaparral Steel Company 10.000% 7/15/13 B+ 2,192,500
----------------------------------------------------------------------------------------------------------------------------------
31
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.2%
$ 1,400 Bon-Ton Department Stores Inc. 10.250% 3/15/14 B- $ 1,424,500
1,600 Dynegy Holdings Inc. 8.375% 5/01/16 B2 1,572,000
----------------------------------------------------------------------------------------------------------------------------------
3,000 Total Multi-Utilities 2,996,500
----------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.7%
2,400 Baytex Energy Ltd 9.625% 7/15/10 B- 2,496,000
400 Chaparral Energy Inc. 8.500% 12/01/15 CCC+ 393,000
2,345 Chesapeake Energy Corporation 7.750% 1/15/15 BB 2,397,763
1,000 Hilcorp Energy I LP/Hilcorp Finance Company, 7.750% 11/01/15 B 975,000
Series 144A
2,000 SemGroup LP, 144A 8.750% 11/15/15 B1 2,020,000
1,000 Whiting Petroleum Corporation 7.000% 2/01/14 B1 945,000
----------------------------------------------------------------------------------------------------------------------------------
9,145 Total Oil, Gas & Consumable Fuels 9,226,763
----------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.5%
2,000 Georgia Pacific Corporation, Debentures 7.700% 6/15/15 B 1,990,000
5,000 Georgia Pacific Corporation, Notes 8.125% 5/15/11 B 5,131,250
----------------------------------------------------------------------------------------------------------------------------------
7,000 Total Paper & Forest Products 7,121,250
----------------------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.1%
1,500 Prestige Brands Inc. 9.250% 4/15/12 B- 1,545,000
----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.3%
3,000 Felcor Lodging Trust Inc., 144A 7.260% 12/01/11 Ba3 3,015,000
1,000 Trustreet Properties, Inc. 7.500% 4/01/15 AAA 1,076,806
500 Ventas Realty LP, Series WI 7.125% 6/01/15 BB+ 506,250
----------------------------------------------------------------------------------------------------------------------------------
4,500 Total Real Estate 4,598,056
----------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.3%
1,600 Avago Technologies Finance Pte Limited 10.375% 12/01/13 B 1,712,000
2,000 NXP BV 8.106% 10/15/13 Ba2 2,012,500
----------------------------------------------------------------------------------------------------------------------------------
3,600 Total Semiconductors & Equipment 3,724,500
----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.2%
3,000 Warnaco Inc., Senior Notes 8.875% 6/15/13 BB- 3,180,000
----------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.2%
3,000 Jostens IH Corporation 7.625% 10/01/12 B1 3,000,000
----------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
1,500 IPCS, Inc. 7.480% 5/01/13 B1 1,509,375
----------------------------------------------------------------------------------------------------------------------------------
$ 128,868 TOTAL CORPORATE BONDS (COST $131,610,781) 131,248,268
==================================================================================================================================
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL PREFERRED SECURITIES - 27.1% (17.0% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 3.8%
1,250 C.A. Preferred Fund Trust II 7.000% 10/30/49 A1 $ 1,242,399
27,500 C.A. Preferred Funding Trust 7.000% 1/30/49 A1 27,299,938
10,700 Dresdner Funding Trust I, 144A 8.151% 6/30/31 A1 12,358,810
1,600 Kleinwort Benson Group PLC 5.848% 12/31/99 N/R 1,374,946
1,600 MUFG Capital Finance 2 4.850% 7/25/56 BBB 2,032,391
8,000 UBS Preferred Funding Trust I 8.622% 10/29/49 Aa2 8,694,856
-----------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 53,003,340
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 16.5%
3,000 AB Svensk Exportkredit, 144A 6.375% 10/27/49 AA- 2,977,701
9,500 Abbey National Capital Trust I 8.963% 6/30/50 A+ 12,058,854
2,155 AgFirst Farm Credit Bank 8.393% 12/15/16 A- 2,342,110
6,500 AgFirst Farm Credit Bank 7.300% 12/15/53 A- 6,493,604
3,000 Bank One Capital III 8.750% 9/01/30 Aa3 3,824,205
2,000 BanPonce Trust I, Series A 8.327% 2/01/27 A3 2,083,260
13,030 Barclays Bank PLC, 144A 8.550% 6/15/49 Aa3 14,361,275
3,400 BBVA International Preferred SA, Unipersonal 5.919% 10/18/49 A1 3,195,538
32
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
700 Capital One Capital IV Corporation 6.745% 2/17/37 Baa1 $ 646,269
8,000 CBG Florida REIT Corporation 7.114% 11/15/49 Baa3 7,906,904
3,000 Centura Capital Trust I, 144A 8.845% 6/01/27 A2 3,138,978
1,500 DBS Capital Funding Corporation, 144A 7.657% 3/15/49 Aa3 1,599,944
1,400 Den Norske Bank, 144A 7.729% 6/29/49 Aa3 1,490,724
6,200 First Empire Capital Trust I 8.234% 2/01/27 A3 6,462,589
2,000 First Midwest Bancorp Inc. 6.950% 12/01/33 Baa1 2,041,844
10,600 HBOS Capital Funding LP, Notes 6.850% 3/23/49 A1 10,356,931
8,400 HBOS PLC, Series 144A 6.413% 4/01/49 A1 7,886,810
2,400 HSBC Capital Funding LP, 144A 9.547% 12/31/49 A1 2,651,947
5,750 HSBC Capital Funding LP, Debt 10.176% 6/30/50 A1 8,070,194
11,000 KBC Bank Fund Trust III, 144A 9.860% 5/02/50 A1 12,001,033
7,800 Lloyds TSB Bank PLC, Subordinated Note 6.900% 11/22/49 Aa2 7,712,172
11,500 Mizuho Financial Group 8.375% 4/27/49 Aa3 12,012,107
5,000 NB Capital Trust IV 8.250% 4/15/27 Aa3 5,201,615
8,000 North Fork Capital Trust II 8.000% 12/15/27 Baa1 8,370,264
3,000 Northgroup Preferred Capital Corporation, 6.378% 10/15/57 A1 2,918,388
144A
1,000 Popular North American Capital Trust I 6.564% 9/15/34 A3 917,999
4,000 RBS Capital Trust B 6.800% 12/31/49 A1 3,920,932
600 Reliance Capital Trust I, Series B 8.170% 5/01/28 N/R 632,869
2,500 Shinsei Finance II Cayman Limited, Perpetual 7.160% 7/25/49 Baa2 2,497,658
Maturity, 144A
8,000 Sparebanken Rogaland, Notes, 144A 6.443% 5/01/49 A2 7,820,760
4,000 Standard Chartered PLC, 144A 7.014% 1/30/58 BBB+ 3,848,248
9,450 Swedbank ForeningsSparbanken AB, 144A 9.000% 9/17/50 Aa3 10,180,305
4,000 Unicredito Italiano Capital Trust, 144A 9.200% 4/05/51 A1 4,420,004
800 Union Bank of Norway 7.068% 11/19/49 A2 1,179,233
300 Union Planters Preferred Fund, 144A 7.750% 7/15/53 A2 32,015,625
14,200 Washington Mutual Preferred Funding Cayman, 7.250% 3/15/49 Baa1 14,077,965
Series A-1, 144A
-----------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 229,316,858
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 1.2%
3,100 Fulton Capital Trust I 6.290% 2/01/36 A3 2,935,951
10,400 JPMorgan Chase Capital Trust XVIII 6.950% 8/17/36 Aa3 10,545,205
2,800 Old Mutual Capital Funding, Notes 8.000% 6/22/53 Baa2 2,870,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 16,351,156
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.8%
9,957 Centaur Funding Corporation, Series B, 144A 9.080% 4/21/20 BBB 11,182,956
-----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 4.0%
2,000 Allstate Corporation 6.125% 5/15/37 A2 1,930,334
2,300 American General Capital II 8.500% 7/01/30 Aa3 2,868,220
13,000 AXA SA, 144A 6.463% 12/14/49 BBB+ 12,108,590
12,200 MetLife Inc. 6.400% 12/15/66 BBB+ 11,337,204
1,150 Nationwide Financial Services Capital Trust 7.899% 3/01/37 Baa1 1,300,766
5,500 Oil Insurance Limited, 144A 7.558% 12/30/49 Baa1 5,704,496
3,550 Prudential PLC 6.500% 6/29/49 A 3,375,557
6,600 QBE Capital Funding Trust II, 144A 6.797% 6/01/49 BBB 6,456,087
10,600 XL Capital, Limited 6.500% 10/15/57 BBB 9,972,904
-----------------------------------------------------------------------------------------------------------------------------------
Total Insurance 55,054,158
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.4%
6,110 KN Capital Trust III 7.630% 4/15/28 B1 5,759,469
-----------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.4%
6,400 Burlington Northern Santa Fe Funding Trust I 6.613% 12/15/55 BBB 5,861,331
-----------------------------------------------------------------------------------------------------------------------------------
33
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.0%
500 Caisse Nationale Des Caisses d'Epargne et de 6.750% 1/27/49 A+ $ 486,095
Prevoyance
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL PREFERRED SECURITIES (COST $390,559,920) 377,015,363
===================================================================================================================
SHARES DESCRIPTION (1) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 2.1% (1.4% OF TOTAL INVESTMENTS)
65,094 BlackRock Preferred and Corporate Income Strategies Fund $ 1,328,569
427,114 BlackRock Preferred Income Strategies Fund 8,311,638
8,445 BlackRock Preferred Opportunity Trust 201,413
451,397 Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc. 9,217,527
110,426 Flaherty and Crumrine/Claymore Total Return Fund Inc. 2,251,586
3,973 John Hancock Preferred Income Fund 94,445
14,154 John Hancock Preferred Income Fund II 336,865
388,926 John Hancock Preferred Income Fund III 8,466,919
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES (COST $30,386,786) 30,208,962
===================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY VALUE
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 26.2% (16.5% OF TOTAL INVESTMENTS)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 0.8%
$ 10,500 United States of America Treasury Bills 4.450% 8/02/07 $ 10,460,147
-----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 25.4%
267,334 Repurchase Agreement with Fixed Income 4.000% 7/02/07 267,333,700
Clearing Corporation, dated 6/29/07,
repurchase price $267,422,811,
collateralized by: $4,090,000 U.S. Treasury
Bonds, 7.125%, due 2/15/23, value
$4,989,800, $36,320,000 U.S. Treasury
Notes, 4.250%, due 11/15/13, value
$35,094,200, $97,680,000 U.S. Treasury
Notes, 2.625%, due 3/15/09, value
$94,627,500, $50,000,000 U.S. Treasury
Notes, 3.875%, due 5/15/10, value
$48,812,500 and $89,160,000 U.S. Treasury
Notes, 4.875%, due 5/31/11, value
$89,160,000
86,856 Repurchase Agreement with Fixed Income 4.000% 7/02/07 86,855,848
Clearing Corporation, dated 6/29/07,
repurchase price $86,884,800,
collateralized by $33,080,000 U.S. Treasury
Notes, 3.750%, due 5/15/08, value
$32,864,715 and $54,305,000 U.S. Treasury
Notes, 5.125%, due 6/30/08, value
$55,730,506
========== -------------------------------------------------------------------------------------------------------------------
$ 364,690 TOTAL SHORT-TERM INVESTMENTS (COST $364,649,695) 364,649,695
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $2,214,326,830) - 158.9% 2,214,582,435
-------------------------------------------------------------------------------------------------------------------
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (9) DATE PRICE VALUE
--------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN -- (0.1)% (10)
(210) Allied Waste Industries $ (262,500) 1/19/08 $12.5 $ (399,000)
(36) eBay, Inc. (117,000) 1/19/08 32.5 (119,000)
(77) Matsushita Electric Industrial Company, Limited (134,750) 12/22/07 17.5 (229,075)
Limited
(147) Smithfield Foods Inc. (441,000) 1/19/08 30.0 (349,125)
(45) Tech Data Corporation (180,000) 1/17/09 40.0 (207,897)
(166) Tyson Foods Inc. (373,500) 1/19/08 22.5 (401,713)
--------------------------------------------------------------------------------------------------------------------------------
(681) TOTAL CALL OPTIONS WRITTEN (PREMIUMS (1,508,750) (1,705,810)
RECEIVED $1,777,824)
--------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - (8.0)% (111,436,190)
-------------------------------------------------------------------------------------------------------------------
PREFERRED SHARES, AT LIQUIDATION VALUE - (50.8)% (708,000,000)
-------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES -100% $1,393,440,435
===================================================================================================================
34
INTEREST RATE SWAPS OUTSTANDING AT JUNE 30, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (DEPRECIATION)
---------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase $71,000,000 Receive 1-Month USD-LIBOR 2.994% Monthly 1/22/08 $ 980,293
Morgan Stanley 71,000,000 Receive 1-Month USD-LIBOR 3.406 Monthly 1/22/09 2,070,102
---------------------------------------------------------------------------------------------------------------------------
$ 3,050,395
---------------------------------------------------------------------------------------------------------------------------
USD-LIBOR (United States Dollar-London Inter Bank-Offered Rate)
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2007:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION JUNE 30, 2007 (DEPRECIATION)
------------------------------------------------------------------------------------------------
U.S. Treasury Bond Long 348 9/07 $ 37,497,000 $ (483,833)
U.S. 10-Year Treasury Notes Long 563 9/07 59,510,859 (439,742)
------------------------------------------------------------------------------------------------
$ (923,575)
------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable
to Common shares unless otherwise noted.
(2) Non-income producing.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by
Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade.
(4) Investment is eligible for the Dividends Received Deduction.
(5) Senior Loans in which the Fund invests generally pay interest at rates which are
periodically adjusted by reference to a base short-term, floating lending rate plus an
assigned fixed rate. These floating lending rates are generally (i) the lending rate
referenced by the London Inter-Bank Offered Rate ("LIBOR"), or (ii) the prime rate offered
by one or more major United States banks.
Senior Loans may be considered restricted in that the Fund ordinarily is contractually
obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition
of a Senior Loan.
(6) Senior Loans generally are subject to mandatory and/or optional prepayment. Because of
these mandatory prepayment conditions and because there may be significant economic
incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result,
the actual remaining maturity of Senior Loans held may be substantially less than the
stated maturities shown.
(7) Position represents an unfunded Senior Loan commitment outstanding at June 30, 2007.
(8) Negative value represents unrealized depreciation on Senior Loan commitment at June 30,
2007.
(9) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(10) The Fund may designate up to 100% of its Common Stock investments to cover outstanding
Call Options Written.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as
amended. These investments may only be resold in transactions exempt from registration
which are normally those transactions with qualified institutional buyers.
ADR American Depositary Receipt.
CORTS Corporate Backed Trust Securities.
DD1 Portion purchased on a delayed delivery basis.
PPLUS PreferredPlus Trust.
SATURNS Structured Asset Trust Unit Repackaging.
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 weighted average coupon rate is not available prior to settlement. At
settlement, if still unknown, the Borrower or counterparty will provide the Fund with the
final weighted average coupon rate and maturity date.
See accompanying notes to financial statements.
35
JQC
Nuveen Multi-Strategy Income and Growth Fund 2
Portfolio of Investments
as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 19.7% (13.0% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.3%
25,750 Boeing Company $ 2,476,120
25,142 Lockheed Martin Corporation 2,366,616
32,370 Orbital Sciences Corporation, (2) 680,094
---------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 5,522,830
--------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.2%
10,230 Johnson Controls, Inc. 1,184,327
32,780 Magna International Inc., Class A 2,982,652
---------------------------------------------------------------------------------------------------------------------------
Total Auto Components 4,166,979
--------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.5%
33,570 Daimler-Chrysler AG 3,086,762
84,510 Honda Motor Company Limited 3,066,868
38,750 Nissan Motor 830,800
23,820 Toyota Motor Corporation 2,998,462
---------------------------------------------------------------------------------------------------------------------------
Total Automobiles 9,982,892
--------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.4%
34,460 Coca-Cola Company 1,802,603
34,660 Diageo PLC, Sponsored ADR 2,887,525
74,860 Fomento Economico Mexicano S.A. 2,943,495
9,510 Molson Coors Brewing Company, Class B 879,295
---------------------------------------------------------------------------------------------------------------------------
Total Beverages 8,512,918
--------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.2%
19,000 Cephalon, Inc., (2) 1,527,410
11,010 Genzyme Corporation, (2) 709,044
9,510 Novo-Nordisk A/S 1,033,357
---------------------------------------------------------------------------------------------------------------------------
Total Biotechnology 3,269,811
--------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.7%
2,510 BlackRock Inc. 393,041
20,110 Deutsche Bank AG 2,910,721
82,540 Invesco PLC 2,133,659
65,880 JPMorgan Chase & Co. 3,191,886
6,450 MarketAxess, (2) 116,036
16,700 Morgan Stanley 1,400,796
46,720 UBS AG 2,803,667
---------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 12,949,806
--------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.4%
17,190 Air Products & Chemicals Inc. 1,381,560
21,970 Ashland Inc. 1,404,982
7,280 CF Industries Holdings, Inc. 435,999
9,200 Lubrizol Corporation 593,860
43,140 Mosaic Company, (2) 1,683,323
9,740 Sparetech Corporation 258,597
41,380 Syngenta AG 1,610,923
16,150 Terra Industries, Inc., (2) 410,533
---------------------------------------------------------------------------------------------------------------------------
Total Chemicals 7,779,777
--------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 1.6%
3,030 Affiliated Managers Group Inc., (2) 390,143
20,290 Allied Irish Banks 1,115,138
121,520 Allinaz S.E. 2,827,770
118,870 Banco Bilbao Vizcaya Argentaria S.A. 2,898,051
69,460 Banco Bradesco SA, ADR 1,674,681
36
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
104,170 Banco Santander Central S.A. $ 1,914,645
13,750 Bank of Montreal 885,913
16,660 Bank of Nova Scotia 813,508
50,350 Barclays PLC 2,809,027
19,760 Colonial BancGroup Inc. 493,407
7,180 Comerica Incorporated 426,995
50,330 ICICI Bank Limited, ADR 2,473,720
31,120 Kookmin Bank 2,729,846
29,210 Lloyds TSB Group PLC, Sponsored ADR 1,306,271
25,780 Mellon Financial Corporation 1,134,320
37,300 National Bank of Greece S.A. 427,458
12,890 Northern Trust Corporation 828,054
23,530 PNC Financial Services Group, Inc. 1,684,277
39,630 Royal Bank of Canada 2,103,164
191,820 Royal Bank of Scotland, PLC, (2) 2,438,277
3,810 SVB Financial Group, (2) 202,349
6,300 Umpqua Holdings Corporation 148,113
---------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 31,725,127
--------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.4%
4,138 Consolidated Graphics Inc., (2) 286,681
41,720 Corrections Corporation of America, (2) 2,632,949
3,760 CSG Systems International Inc., (2) 99,678
5,950 Dun and Bradstreet Inc. 612,731
13,770 ITT Educational Services, Inc., (2) 1,616,323
12,495 Republic Services, Inc. 382,847
50,560 SEI Investments Company 1,468,262
---------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 7,099,471
--------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.4%
112,580 Corning Incorporated, (2) 2,876,419
104,390 Nokia Oyj, Sponsored ADR 2,934,403
6,690 Polycom Inc., (2) 224,784
32,410 QUALCOMM Inc. 1,406,270
---------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 7,441,876
--------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.4%
25,890 Apple, Inc., (2) 3,159,616
21,120 Dell Inc., (2) 602,976
45,110 Hewlett-Packard Company 2,012,808
8,890 NCR Corporation, (2) 467,081
49,504 Network Appliance, Inc., (2) 1,445,517
14,300 Novatel Wireless, (2) 372,086
---------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 8,060,084
--------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.0%
5,640 Lafarge SA 256,902
2,140 Texas Industries Inc. 167,797
---------------------------------------------------------------------------------------------------------------------------
Total Construction Materials 424,699
--------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.1%
17,230 MasterCard, Inc. 2,857,940
---------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.5%
16,950 CIT Group Inc. 929,369
39,250 Credit Suisse Group, (2) 2,785,180
25,070 Eaton Vance Corporation 1,107,593
66,220 ING Group N.V., Sponsored ADR 2,911,693
34,210 State Street Corporation 2,339,964
---------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 10,073,799
--------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.8%
20,770 Alltel Corporation 1,403,014
42,930 AT&T Inc. 1,781,595
21,660 BT Group PLC 1,442,123
37
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
14,910 Cbeyond Inc., (2) $ 574,184
40,830 France Telecom SA 1,122,008
105,740 KT Corporation, Sponsored ADR 2,480,660
41,140 Nippon Telegraph and Telephone Corporation, ADR 912,074
10,630 Portugal Telecom SA 147,651
20,450 Royal KPN Nederland PTT N.V. 339,675
37,840 Telecom Corporation of New Zealand Ltd 1,056,493
33,990 Telefonica SA 2,269,172
74,060 Telefonos de Mexico SA, Series L 2,806,133
---------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 16,334,782
--------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.7%
7,110 Black Hills Corporation 282,623
12,800 DPL Inc. 362,752
53,230 E.ON A.G. 2,961,717
39,150 Edison International 2,197,098
11,150 El Paso Electric Company, (2) 273,844
13,600 Enel SpA, Sponsored ADR 730,320
25,670 FPL Group, Inc. 1,456,516
17,190 OGE Energy Corp. 630,014
38,310 PG&E Corporation 1,735,443
5,490 Pike Electric Corporation, (2) 122,866
20,210 Progress Energy, Inc. 921,374
74,670 Reliant Energy Inc., (2) 2,012,357
---------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 13,686,924
--------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.3%
3,340 Acuity Brands Inc. 201,335
85,374 Emerson Electric Co. 3,995,503
60,610 Nikon Corporation 1,693,388
---------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 5,890,226
--------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.4%
6,284 Itron Inc., (2) 489,775
38,440 MEMC Electronic Materials, (2) 2,349,453
3,790 Mettler-Toledo International Inc., (2) 361,983
4,321 Teledyne Technologies Inc., (2) 198,550
77,460 Thermo Fisher Scientific, Inc., (2) 4,006,231
---------------------------------------------------------------------------------------------------------------------------
Total Electronic Equipment & Instruments 7,405,992
--------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.4%
9,570 Matrix Service Company, (2) 237,815
36,080 National-Oilwell Varco Inc., (2) 3,760,979
9,190 Oceaneering International Inc., (2) 483,762
29,200 Tidewater Inc. 2,069,696
4,770 Trico Marine Services Inc., (2) 194,998
---------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 6,747,250
--------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.1%
57,760 Koninklijke Ahold NV, (2) 723,155
4,390 Nash Finch Company 217,305
43,830 Safeway Inc. 1,491,535
---------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 2,431,995
--------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.5%
45,900 Campbell Soup Company 1,781,379
70,420 ConAgra Foods, Inc. 1,891,481
16,180 Flowers Foods Inc. 539,765
37,330 H.J. Heinz Company 1,772,055
24,990 Monsanto Company 1,687,825
96,960 Unilever PLC 3,127,930
---------------------------------------------------------------------------------------------------------------------------
Total Food Products 10,800,435
--------------------------------------------------------------------------------------------------------------
38
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.2%
35,033 Energen Corporation $ 1,924,713
32,420 Questar Corporation 1,713,397
---------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 3,638,110
--------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3%
24,100 Alfresa Holdings Corporation 1,681,373
41,050 Baxter International Inc. 2,312,757
9,727 Dade Behring Holdings Inc. 516,698
26,448 Express Scripts, Inc., (2) 1,322,664
11,110 Fresenius Medical Care, ADR 510,393
3,650 Lifecell Corporation, (2) 111,471
5,419 Surmodics Inc., (2) 270,950
---------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 6,726,306
--------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.3%
7,380 Centene Corporation, (2) 158,080
2,249 Healthways Inc., (2) 106,535
35,440 Humana Inc., (2) 2,158,650
7,570 Mentor Corporation 307,948
8,850 Nighthawk Radiology Holdings Inc., (2) 159,743
35,213 Wellcare Health Plans Inc., (2) 3,187,129
---------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 6,078,085
--------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.1%
12,400 Bally Technologies, Inc., (2) 327,608
17,220 Choice Hotels International, Inc. 680,534
13,330 Intercontinental Hotels Group PLC, ADR 330,317
---------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 1,338,459
--------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.1%
45,520 Matsushita Electric Industrial Co., Ltd., ADR 901,751
35,262 Newell Rubbermaid Inc. 1,037,761
---------------------------------------------------------------------------------------------------------------------------
Total Household Durables 1,939,512
--------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.2%
56,330 Colgate-Palmolive Company 3,653,001
15,677 Kimberly-Clark Corporation 1,048,635
---------------------------------------------------------------------------------------------------------------------------
Total Household Products 4,701,636
--------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
25,940 NRG Energy Inc., (2) 1,078,326
---------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.2%
28,570 General Electric Company 1,093,660
22,530 Siemens AG, Sponsored ADR 3,223,142
3,740 Teleflex Inc. 305,857
---------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 4,622,659
--------------------------------------------------------------------------------------------------------------
INSURANCE - 1.0%
69,360 Aegon N.V. 1,362,924
49,208 AFLAC Incorporated 2,529,291
16,970 Amtrust Financial Services, Inc. 318,866
18,910 Aon Corporation 805,755
68,100 AXA-UAP 2,931,024
1 Berkshire Hathaway Inc., Class B, (2) 3,115
4,740 Delphi Financial Group, Inc. 198,227
12,350 Fairfax Financial Holdings Limited 2,367,125
7,700 First American Corporation 381,150
25,780 Genworth Financial Inc., Class A 886,832
27,510 HCC Insurance Holdings Inc. 919,109
58,764 Philadelphia Consolidated Holding Corporation, (2) 2,456,335
10,440 Seabright Insurance Holdings Inc., (2) 182,491
39
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
INSURANCE (continued)
30,310 Sun Life Financial Inc. $ 1,447,303
6,850 Tower Group Inc. 218,515
102,650 WR Berkley Corporation 3,340,231
---------------------------------------------------------------------------------------------------------------------------
Total Insurance 20,348,293
--------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.1%
23,380 Amazon.com, Inc., (2) 1,599,426
30,930 Coldwater Creek Inc., (2) 718,504
---------------------------------------------------------------------------------------------------------------------------
Total Internet & Catalog Retail 2,317,930
--------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.2%
12,480 Chordiant Software, Inc., (2) 195,437
65,000 eBay Inc., (2) 2,091,700
7,570 F5 Networks, Inc., (2) 610,142
53,860 Open Text Corporation, (2) 1,171,994
---------------------------------------------------------------------------------------------------------------------------
Total Internet Software & Services 4,069,273
--------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
16,970 CGI Group Inc., (2) 190,403
22,620 Convergys Corporation, (2) 548,309
12,760 FactSet Research Systems Inc. 872,146
14,580 Savvis Inc., (2) 721,856
---------------------------------------------------------------------------------------------------------------------------
Total IT Services 2,332,714
--------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.3%
47,860 Canon Inc. 2,806,510
29,270 Fuji Photo Film Co., Ltd. 1,309,870
9,560 FujiFilm Holdings Corporation, ADR 426,567
18,600 Hasbro, Inc. 584,226
13,800 Marvel Entertainment Inc., (2) 351,624
---------------------------------------------------------------------------------------------------------------------------
Total Leisure Equipment & Products 5,478,797
--------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.0%
3,220 Illumina Inc., (2) 130,700
---------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.7%
137,650 ABB Limited 3,110,890
41,730 AGCO Corporation, (2) 1,811,499
5,360 CLARCOR, Inc. 200,625
7,330 Flow International Corporation, (2) 92,358
28,968 Harsco Corporation 1,506,336
33,290 ITT Industries Inc. 2,273,041
15,200 Manitowoc Company Inc. 1,221,776
4,550 Pall Corporation 209,255
10,025 Parker Hannifin Corporation 981,548
5,900 RBC Bearings Inc., (2) 243,375
3,690 Robbins & Myers, Inc. 196,050
67,580 Volvo AB 1,344,166
---------------------------------------------------------------------------------------------------------------------------
Total Machinery 13,190,919
--------------------------------------------------------------------------------------------------------------
MEDIA - 0.7%
45,440 DIRECTV Group, Inc., (2) 1,050,118
35,590 Echostar Communications Corporation, (2) 1,543,538
10,724 John Wiley and Sons Inc., Class A 517,862
8,098 Liberty Global Inc., Class C, (2) 318,251
7,664 Lodgenet Entertainment Corporation, (2) 245,708
53,510 McGraw-Hill Companies, Inc. 3,642,961
16,110 Multimedia Games, Inc., (2) 205,564
17,660 Pearson Public Limited Company 297,394
16,660 Regal Entertainment Group, Class A 365,354
13,030 Shaw Communication Inc. 547,781
9,830 Thomson Corporation 403,325
40
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
MEDIA (continued)
57,260 Time Warner Inc. $ 1,204,750
51,850 Walt Disney Company 1,770,159
10,260 WPP Group PLC 766,935
---------------------------------------------------------------------------------------------------------------------------
Total Media 12,879,700
--------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.4%
9,170 Alumina Limited, Sponsored ADR 243,464
100,150 Anglo American PLC, ADR 2,938,401
12,710 BHP Billiton PLC 714,302
4,570 Compass Minerals International, Inc. 158,396
10,420 Rio Tinto PLC, Sponsored ADR 3,189,770
---------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 7,244,333
--------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 0.3%
12,530 99 Cents Only Stores, (2) 164,268
19,970 Big Lots, Inc., (2) 587,517
47,970 Dollar Tree Stores Inc., (2) 2,089,094
46,960 Kohl's Corporation, (2) 3,335,569
7,830 Target Corporation 497,988
---------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 6,674,436
--------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.0%
11,030 Veolia Environment S.A. 864,862
---------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 1.6%
6,070 Bill Barrett Corporation, (2) 223,558
43,960 BP Amoco PLC 3,171,274
41,950 Chesapeake Energy Corporation 1,451,470
24,820 China Petroleum and Chemical Corporation 2,770,905
41,340 Eni S.p.A., Sponsored ADR 2,990,949
21,550 EOG Resources, Inc. 1,574,443
34,790 Equitable Resources Inc. 1,724,192
20,490 Frontier Oil Corporation 896,847
23,310 Norsk Hydro ASA 892,074
10,027 Pioneer Drilling Company, (2) 149,503
50,110 Repsol YPF S.A. 1,939,257
37,750 Royal Dutch Shell PLC, Class B, Sponsored ADR 3,146,463
8,990 St Mary Land and Exploration Company 329,214
106,230 Statoil ASA 3,294,192
9,001 Sunoco, Inc. 717,200
16,960 Tesoro Petroleum Corporation 969,264
39,280 Total SA, Sponsored ADR 3,180,894
21,272 Valero Energy Corporation 1,571,150
---------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 30,992,849
--------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.2%
14,390 Aracruz Celulose S.A. 953,194
7,330 Buckeye Technologies Inc., (2) 113,395
18,300 Rayonier Inc. 826,062
89,540 Votorantim Celulose e Papel S.A. 2,038,826
---------------------------------------------------------------------------------------------------------------------------
Total Paper & Forest Products 3,931,477
--------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.7%
22,970 Abraxis Bioscience Inc., (2) 510,623
55,840 AstraZeneca Group 2,986,323
10,940 Biovail Corporation 278,095
17,920 Eli Lilly and Company 1,001,370
9,200 GlaxoSmithKline PLC, ADR 481,804
38,050 Merck & Co. Inc. 1,894,890
52,420 Norvatis AG, ADR 2,939,189
10,790 Pozen Inc., (2) 194,975
63,720 Sanofi-Aventis, ADR 2,566,004
---------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 12,853,273
--------------------------------------------------------------------------------------------------------------
41
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 0.2%
3,180 Essex Property Trust Inc. $ 369,834
8,167 LaSalle Hotel Properties 354,611
4,680 Lexington Corporate Properties Trust 97,344
7,100 Northstar Realty Finance Corporation 88,821
17,444 SL Green Realty Corporation 2,161,137
14,217 Tanger Factory Outlet Centers 532,427
10,474 Taubman Centers Inc. 519,615
---------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 4,123,789
--------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.4%
41,560 Canadian National Railways Company 2,116,651
41,010 Canadian Pacific Railway Limited 2,822,308
37,580 Hertz Global Holdings, Inc., (2) 998,501
16,240 Landstar System 783,580
5,530 Union Pacific Corporation 636,780
---------------------------------------------------------------------------------------------------------------------------
Total Road & Rail 7,357,820
--------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.7%
117,720 ASM Lithography Holding NV, (2) 3,231,414
203,710 Micron Technology, Inc., (2) 2,552,486
77,520 National Semiconductor Corporation 2,191,490
12,080 Semtech Corporation, (2) 209,346
156,070 STMicroelectronics NV 2,994,983
Taiwan Semiconductor Manufacturing Company Ltd.,
221,348 Sponsored ADR 2,463,603
30,410 Teradyne Inc., (2) 534,608
26,700 Trident Microsystems Inc., (2) 489,945
4,940 Zoran Corporation, (2) 98,998
---------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 14,766,873
--------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.5%
8,300 Ansys Inc., (2) 219,950
11,135 Aspen Technology Inc., (2) 155,890
19,930 Autodesk, Inc., (2) 938,304
14,334 Blackbaud, Inc. 316,495
7,090 Blackboard, Inc., (2) 298,631
21,050 BMC Software, Inc., (2) 637,815
73,890 Business Objects SA, (2) 2,869,888
31,540 Cadence Design Systems, Inc., (2) 692,618
28,420 Cognos Inc., (2) 1,127,421
47,260 Intuit Inc., (2) 1,421,581
9,850 SAP AG, Sponsored ADR 503,040
6,810 SPSS Inc., (2) 300,593
26,510 Synopsys Inc., (2) 700,659
---------------------------------------------------------------------------------------------------------------------------
Total Software 10,182,885
--------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.4%
5,340 Aeropostale, Inc., (2) 222,571
83,300 American Eagle Outfitters, Inc. 2,137,478
6,290 Gymboree Corporation, (2) 247,889
3,650 J Crew Group, Inc., (2) 197,429
13,670 Luxottica Group SpA 528,209
12,120 PetSmart Inc. 393,294
66,420 RadioShack Corporation 2,201,159
52,730 Sony Corporation 2,708,740
---------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 8,636,769
--------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.1%
4,140 Deckers Outdoor Corporation, (2) 417,726
16,438 Guess Inc. 789,682
8,600 VF Corporation 787,588
---------------------------------------------------------------------------------------------------------------------------
Total Textiles, Apparel & Luxury Goods 1,994,996
--------------------------------------------------------------------------------------------------------------
42
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
TOBACCO - 0.3%
14,560 British American Tobacco PLC $ 1,006,678
10,670 Imperial Tobacco Group 984,094
310 Japan Tobacco, Inc. 1,530,802
47,150 UST Inc. 2,532,427
---------------------------------------------------------------------------------------------------------------------------
Total Tobacco 6,054,001
--------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.0%
6,974 GATX Corporation 343,470
---------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.0%
32,140 NTT DoCoMo Inc. 507,812
---------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $365,161,148) 390,566,677
==============================================================================================================
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED SECURITIES - 1.5% (1.1% OF TOTAL INVESTMENTS)
AUTOMOBILES - 0.3%
88,900 General Motors Corporation 5.250% B- $ 1,964,690
166,800 General Motors Corporation 6.250% B- 4,180,008
-----------------------------------------------------------------------------------------------------------------------------
Total Automobiles 6,144,698
----------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.3%
18,750 Affiliated Managers Group Inc. 5.100% BB 1,096,875
72,000 Affiliated Managers Group Inc. 5.100% BB 4,212,000
-----------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 5,308,875
----------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.1%
20,600 Sovereign Capital Trust IV 4.375% Baa1 968,200
28,900 Washington Mutual, Inc., Unit 1 Trust 5.375% A3 1,589,500
-----------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 2,557,700
----------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.0%
850 Lucent Technologies Capital Trust I 7.750% B1 875,500
-----------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
3,700 Owens-Illinois, Inc. 4.750% B- 156,325
-----------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.1%
9,600 Bunge Limited 4.875% N/R 1,107,600
-----------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.0%
250 NRG Energy Inc. 4.000% B2 533,750
-----------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.1%
1,100 Freeport McMoran Copper & Gold, Inc. 5.500% B- 2,008,325
-----------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.3%
7,750 Chesapeake Energy Corporation 5.000% B 865,094
800 El Paso Corporation 4.990% B 1,169,000
20,535 Williams Companies Inc. 5.500% B 3,046,881
-----------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 5,080,975
----------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.1%
28,650 HRPT Properties Trust 6.500% BBB- 682,443
12,650 Simon Property Group, Inc., Series I 6.000% BBB+ 961,274
-----------------------------------------------------------------------------------------------------------------------------
Total Real Estate 1,643,717
----------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.0%
16,800 United Rentals Trust I 6.500% B- 829,500
-----------------------------------------------------------------------------------------------------------------------------
U.S. AGENCY - 0.2%
31 Fannie Mae 5.375% AA- 3,081,226
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED SECURITIES (COST $26,082,980) 29,328,191
================================================================================================================
43
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
$25 PAR (OR SIMILAR) PREFERRED SECURITIES - 44.4% (29.2% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 3.1%
229,074 BNY Capital Trust V, Series F 5.950% Aa3 $ 5,319,098
220,000 Compass Capital Trust III 7.350% A3 5,504,400
31,200 CSFB USA, Series 2002-10 (SATURNS) 7.000% AA- 782,496
396,000 Deutsche Bank Capital Funding Trust II 6.550% Aa3 9,742,590
22,600 First Union Institutional Capital II (CORTS) 8.200% A1 606,132
9,600 Goldman Sachs Capital I (CORTS) 6.000% A1 221,376
7,700 Goldman Sachs Capital I, Series A (CORTS) 6.000% A1 174,713
6,900 Goldman Sachs Group Inc., Series 2004-04 (SATURNS) 6.000% A1 158,631
2,900 Goldman Sachs Group Inc., Series 2004-06 (SATURNS) 6.000% A1 67,280
11,500 Goldman Sachs Group Inc., Series 2004-4 (CORTS) 6.000% A1 259,440
17,200 Goldman Sachs Group Inc., Series GSC-3 (PPLUS) 6.000% A1 391,472
11,200 Goldman Sachs Group Inc., Series GSG-1 (PPLUS) 6.000% AA- 254,576
4,200 Goldman Sachs Group Inc., Series GSG-2 (PPLUS) 5.750% AA- 93,660
423,200 Merrill Lynch Preferred Capital Trust III 7.000% A1 10,584,232
189,600 Merrill Lynch Preferred Capital Trust IV 7.120% A1 4,753,272
283,400 Merrill Lynch Preferred Capital Trust V 7.280% A1 7,141,680
174,392 Morgan Stanley Capital Trust III 6.250% A1 4,171,457
89,625 Morgan Stanley Capital Trust IV 6.250% A1 2,113,358
310,300 Morgan Stanley Capital Trust VI 6.600% A1 7,673,719
45,458 Morgan Stanley Capital Trust VII 6.600% A2 1,112,812
-----------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 61,126,394
----------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 8.6%
105,400 Abbey National PLC, Series C 7.375% A+ 2,647,648
657,000 ABN AMRO Capital Fund Trust V 5.900% A1 15,216,120
14,979 ABN AMRO Capital Fund Trust VI 6.250% A1 371,479
115,300 ASBC Capital I 7.625% A3 2,898,642
128,410 BAC Capital Trust I 7.000% Aa2 3,217,955
565,500 BAC Capital Trust II 7.000% Aa2 14,205,360
151,900 BAC Capital Trust III 7.000% Aa2 3,803,576
1,000 BAC Capital Trust X 6.250% Aa2 23,660
120,227 Banco Santander Series 144A 6.800% A+ 2,998,161
507,075 Banco Santander, 144A 6.500% A 12,439,209
714,475 Banco Santander 6.410% Aa3 17,776,138
6,700 BancorpSouth Capital Trust I 8.150% Baa1 169,242
28,800 Banesto Holdings, Series A, 144A 10.500% A1 851,400
167,700 Bank One Capital Trust VI 7.200% Aa3 4,261,257
55,742 Barclays Bank PLC, (4) 6.625% Aa3 1,424,208
4,000,000 BNP Paribas 7.195% Aa3 4,057,824
34,800 Capital One Capital II Corporation 7.500% Baa1 889,575
23,470 Chittenden Capital Trust I 8.000% A3 588,217
142,300 Citizens Funding Trust I 7.500% Baa2 3,615,316
146,500 Cobank ABC, 144A, (4) 7.000% A 7,268,598
430,300 Fleet Capital Trust VIII 7.200% Aa2 10,830,651
61,600 HSBC Finance Corporation 6.875% AA- 1,549,240
83,705 KeyCorp Capital Trust IX 6.750% Baa1 2,070,234
4,200 KeyCorp Capital VIII 7.000% A3 105,919
723,905 National City Capital Trust II 6.625% A3 17,826,161
21,700 ONB Capital Trust II 8.000% A3 550,963
27,300 PNC Capital Trust 6.125% A2 635,544
45,038 Royal Bank of Scotland Group PLC, Series L 5.750% A1 998,492
124,740 Royal Bank of Scotland Group PLC, Series N 6.350% A1 3,018,708
200,000 Royal Bank of Scotland Group PLC 6.600% Aa3 4,950,000
14,600 SunAmerica CORTS 6.700% AA 366,168
44,900 USB Capital Trust XI 6.600% A1 1,109,928
35,370 VNB Capital Trust I 7.750% A3 890,970
147,470 Wachovia Capital Trust IX 6.375% A1 3,571,546
290,091 Wachovia Trust IV 6.375% A1 6,939,702
483,400 Wells Fargo Capital Trust V 7.000% Aa2 12,157,510
94,882 Wells Fargo Capital Trust VII 5.850% Aa2 2,219,290
117,800 Zions Capital Trust B 8.000% BBB- 2,972,094
-----------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 171,486,705
----------------------------------------------------------------------------------------------------------------
44
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.0%
19,000 IBM Trust IV (CORTS) 7.000% A+ $ 476,710
-----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 4.3%
101,500 BAC Capital Trust XII 6.875% Aa3 2,609,058
4,900 Citigroup Capital Trust IX 6.000% Aa2 114,905
197,400 Citigroup Capital Trust VII 7.125% Aa2 4,970,532
754,422 Citigroup Capital Trust VIII 6.950% Aa2 18,898,271
22,400 Citigroup Capital XIV 6.875% Aa2 574,112
298,921 Citigroup Capital XV 6.500% Aa3 7,360,930
42,100 Citigroup Capital XVI 6.450% Aa2 1,026,819
3,200 General Electric Capital Corporation 5.875% AAA 75,552
41,800 General Electric Capital Corporation 6.625% AAA 1,043,746
755,475 ING Group N.V. 7.050% A 18,947,313
592,320 ING Group N.V. 7.200% A1 14,896,848
1,900 JP Morgan Chase Capital Trust XII 6.250% Aa3 45,486
598,100 Merrill Lynch Capital Trust I 6.450% A1 14,672,171
Royal Bank of Scotland Public Limited Company,
29,500 Series 2006Q 6.750% A1 748,415
-----------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 85,984,158
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.0%
617,100 AT&T Inc. 6.375% A 15,292,540
38,500 BellSouth Capital Funding (CORTS) 7.100% A 983,675
30,500 BellSouth Corporation (CORTS) 7.000% A 718,656
48,100 Verizon Communications (CORTS) 7.375% A 1,212,120
28,000 Verizon Communications (CORTS) 7.625% A 705,320
50,700 Verizon New England Inc., Series B 7.000% A3 1,275,612
-----------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 20,187,923
----------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.4%
21,100 DTE Energy Trust I 7.800% Baa3 536,995
28,900 Entergy Louisiana LLC 7.600% A- 723,078
8,300 Entergy Mississippi Inc. 7.250% A- 209,326
51,600 FPL Group Capital Inc. 6.600% A3 1,283,808
National Rural Utilities Cooperative Finance
1,600 Corporation 5.950% A3 37,024
National Rural Utilities Cooperative Finance
3,000 Corporation 6.100% A3 69,660
33,400 Northern States Power Company 8.000% A3 835,000
10,700 PPL Energy Supply LLC 7.000% BBB 274,522
13,100 Southern Company Capital Trust VI 7.125% BBB+ 327,762
122,500 Virginia Power Capital Trust 7.375% Baa2 3,094,350
-----------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 7,391,525
----------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.2%
35,100 Dairy Farmers of America Inc., 144A 7.875% BBB- 3,553,875
-----------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.1%
72,700 Pulte Homes Inc. 7.375% BBB 1,790,238
-----------------------------------------------------------------------------------------------------------------------------
INSURANCE - 10.7%
1,210,933 Ace Ltd., Series C 7.800% Baa2 30,866,682
2,100 Aegon N.V. 6.875% A- 53,004
1,402,000 Aegon N.V., (4) 6.375% A- 34,152,720
12,233 AMBAC Financial Group Inc. 5.950% AA 279,769
237,613 Arch Capital Group Limited, Series B 7.785% Baa3 6,035,370
389,973 Arch Capital Group Limited 8.000% BBB- 9,944,312
709,600 Berkley WR Corporation, Capital Trust II 6.750% BBB- 17,690,328
31,000 Delphi Financial Group, Inc. 7.376% BBB- 765,313
677,101 Delphi Financial Group, Inc. 8.000% BBB+ 17,435,351
6,000,000 Everest Reinsurance Holdings, Inc. 6.600% Baa1 5,726,340
200,456 EverestRe Capital Trust II 6.200% Baa1 4,580,420
97,100 EverestRe Group Limited 7.850% Baa1 2,465,369
1,401,100 Lincoln National Capital Trust VI 6.750% A- 34,887,390
123,800 Markel Corporation 7.500% BBB- 3,208,277
903,702 PartnerRe Limited, Series C 6.750% BBB+ 22,231,069
80,900 PLC Capital Trust III 7.500% BBB+ 2,047,175
71,200 PLC Capital Trust IV 7.250% BBB+ 1,779,288
24,400 PLC Capital Trust V 6.125% BBB+ 563,640
45
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
INSURANCE (continued)
37,500 Protective Life Corporation 7.250% BBB $ 952,500
39,200 Prudential PLC 6.750% A 983,920
124,700 RenaissanceRe Holdings Limited, Series B 7.300% BBB 3,151,169
18,600 RenaissanceRe Holdings Ltd 6.600% BBB 441,843
24,600 Safeco Capital Trust I (CORTS) 8.750% Baa2 714,384
17,500 Safeco Capital Trust IV (CORTS) 8.375% Baa2 487,375
40,200 Safeco Corporation, Series 2001-7 (SATURNS) 8.250% Baa2 1,006,407
38,800 Safeco Corporation, Series 2002-5 (SATURNS) 8.250% Baa2 971,552
70,300 XL Capital Ltd, Series A 8.000% Baa1 1,763,124
248,540 XL Capital Ltd, Series B 7.625% Baa1 6,225,927
-----------------------------------------------------------------------------------------------------------------------------
Total Insurance 211,410,018
----------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.0%
2,500 Vertex Industries Inc. (PPLUS) 7.625% A 62,963
-----------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.8%
52,700 CBS Corporation 7.250% BBB 1,323,297
481,000 CBS Corporation 6.750% BBB 11,724,375
1,031,100 Comcast Corporation 7.000% BBB+ 25,777,500
644,700 Viacom Inc. 6.850% BBB 15,795,150
3,000 Walt Disney Company (CORTS) 6.875% A2 76,500
-----------------------------------------------------------------------------------------------------------------------------
Total Media 54,696,822
----------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.1%
52,400 Dominion CNG Capital Trust I 7.800% Baa2 1,326,244
-----------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.9%
680,300 Nexen Inc. 7.350% Baa3 17,279,620
-----------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.1%
49,000 Bristol Myers Squibb Company (CORTS) 6.250% A+ 1,238,230
-----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 10.1%
30,600 AMB Property Corporation, Series P 6.850% Baa2 764,045
77,100 AvalonBay Communities, Inc., Series H 8.700% BBB 2,003,058
166,283 BRE Properties, Series B 8.080% BBB- 4,176,198
104,300 Developers Diversified Realty Corporation, Series G 8.000% BBB- 2,637,747
1,264,845 Developers Diversified Realty Corporation, Series H 7.375% BBB- 31,810,852
125,600 Duke Realty Corporation, Series L 6.600% BBB 3,040,776
31,700 Duke Realty Corporation, Series N 7.250% BBB 807,361
25,000 Duke-Weeks Realty Corporation, Series B 7.990% BBB 1,225,000
100,400 Duke-Weeks Realty Corporation 6.950% BBB 2,535,100
96,000 Duke-Weeks Realty Corporation 6.625% BBB 2,307,840
15,400 Equity Residential Properties Trust, Series D 8.600% BBB 383,768
312,323 Equity Residential Properties Trust, Series N 6.480% BBB 7,333,344
688,600 HRPT Properties Trust, Series B 8.750% BBB- 17,469,782
532,700 HRPT Properties Trust, Series C 7.125% BBB- 13,413,386
3,997 Prologis Trust, Series C 8.540% BBB 242,818
95,275 Prologis Trust, Series G 6.750% BBB 2,351,387
4,200 PS Business Parks, Inc., Series I 6.875% BBB- 100,464
700 PS Business Parks, Inc., Series K 7.950% BBB- 18,445
243,000 PS Business Parks, Inc., Series L 7.600% BBB- 6,135,750
131,000 PS Business Parks, Inc., Series O 7.375% BBB- 3,336,413
410,588 PS Business Parks, Inc. 7.000% BBB- 9,997,818
61,900 Public Storage, Inc., Series C 6.600% BBB+ 1,481,267
149,000 Public Storage, Inc., Series E 6.750% BBB+ 3,634,110
18,400 Public Storage, Inc., Series F 6.450% BBB+ 427,800
16,011 Public Storage, Inc., Series H 6.950% BBB+ 399,314
13,600 Public Storage, Inc., Series I 7.250% BBB+ 347,480
35,000 Public Storage, Inc., Series K 7.250% BBB+ 900,158
657,538 Public Storage, Inc., Series M 6.625% BBB+ 15,723,377
31,500 Public Storage, Inc., Series V 7.500% BBB+ 792,855
249,836 Public Storage, Inc. 6.750% BBB+ 6,124,105
30,303 Realty Income Corporation, Series E 6.750% BBB- 757,575
166,100 Regency Centers Corporation 7.450% BBB- 4,174,093
20,450 Simon Property Group, Inc., Series G 7.890% BBB 1,022,909
200 Vornado Realty Trust, Series F 6.750% BBB- 4,914
46
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE (continued)
165,000 Vornado Realty Trust, Series G 6.625% BBB- $ 3,907,200
183,000 Vornado Realty Trust, Series H 6.750% BBB- 4,443,240
1,542,834 Wachovia Preferred Funding Corporation 7.250% A2 41,054,813
127,800 Weingarten Realty Trust, Series E 6.950% A- 3,165,606
-----------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 200,452,168
----------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 1.9%
70,800 Countrywide Capital Trust III (PPLUS) 8.050% BBB+ 1,831,242
732,590 Countrywide Capital Trust IV 6.750% BBB+ 17,127,954
777,026 Countrywide Capital Trust V 7.000% BBB+ 19,207,150
-----------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 38,166,346
----------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
50,600 United States Cellular Corporation 8.750% A- 1,292,324
-----------------------------------------------------------------------------------------------------------------------------
TOTAL $25 PAR (OR SIMILAR) PREFERRED SECURITIES
(COST $898,994,240) 877,922,263
================================================================================================================
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (6) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE SENIOR LOAN INTERESTS - 5.6% (3.7% OF TOTAL INVESTMENTS) (5)
AIRLINES - 0.1%
$ 997 American Airlines, Term Loan, WI/DD TBD TBD BB- $ 998,223
----------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.1%
1,500 Federal Mogul Corporation, Term Loan A 7.070% 12/31/07 N/R 1,503,938
----------------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.3%
3,000 Nortek, Inc., Term Loan B 7.610% 8/27/11 Ba2 2,997,750
999 Stile Acquisition Corporation, Term Loan B, WI/DD TBD TBD BB 971,665
1,001 Stile Acquisition Corporation, Term Loan B, WI/DD TBD TBD BB 973,368
993 TFS Acquisition, Term Loan 8.860% 8/11/13 B+ 999,944
----------------------------------------------------------------------------------------------------------------------------------
5,993 Total Building Products 5,942,727
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.1%
3,402 Aramark Corporation, Term Loan, DD1 TBD TBD BB- 3,408,823
266 Aramark, Letter of Credit, DD1 TBD TBD BB- 266,472
----------------------------------------------------------------------------------------------------------------------------------
3,668 Total Commercial Services & Supplies 3,675,295
----------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.1%
1,514 Intelsat, Ltd., Term Loan B 7.349% 7/03/13 BB+ 1,519,570
----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.1%
Bluegrass Container Company, LLC, 1st Lien Term
343 Loan 7.570% 6/30/13 BB 344,316
1,146 Bluegrass Container Company, LLC, Term Loan B 7.570% 6/30/13 BB 1,150,741
----------------------------------------------------------------------------------------------------------------------------------
1,489 Total Containers & Packaging 1,495,057
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1%
3,000 Cequel Communications LLC., Term Loan B 7.351% 11/05/13 B+ 2,989,433
----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
3,491 Calpine Corporation, DD1 TBD TBD B 3,499,615
----------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.2%
1,500 Kinder Morgan, Inc., Term Loan 6.820% 5/30/14 Ba2 1,500,670
2,500 Petroleum Geo-Services, Term Loan, WI/DD TBD TBD Ba2 2,500,000
----------------------------------------------------------------------------------------------------------------------------------
4,000 Total Energy Equipment & Services 4,000,670
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 1.2%
6,000 Community Health Systems, Inc., Term Loan, WI/DD TBD TBD Ba3 6,014,064
500 Concentra, Inc., Term Loan, WI/DD TBD TBD Ba2 502,031
4,975 HCA, Inc., Term Loan 7.610% 11/17/13 BB 5,002,693
998 Health Management Associates, Term Loan 7.110% 2/28/14 Ba2 999,626
715 IASIS Healthcare Corporation, WI/DD TBD TBD Ba2 716,763
191 IASIS Healthcare Corporation, WI/DD TBD TBD Ba2 191,137
2,089 IASIS Healthcare LLC, Term Loan B, WI/DD TBD TBD Ba2 2,092,691
808 LifePoint Hospitals Holdings, Inc., Term Loan B 6.985% 4/15/14 BB 806,391
47
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (6) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (continued)
$ 2,862 Select Medical Corporation, Term Loan, WI/DD TBD TBD Ba2 $ 2,853,414
450 Sun Healthcare Group, Inc., Term Loan, DD1 TBD TBD Ba2 451,732
571 Sun Healthcare Group, Inc., Term Loan, DD1 TBD TBD Ba2 572,197
2,511 Sun Healthcare Group, Inc., Term Loan, DD1 TBD TBD Ba2 2,518,074
998 Vanguard Health Holding Company, LLC, Replacement Term Loan, WI/DD TBD TBD Ba3 1,002,697
------------------------------------------------------------------------------------------------------------------------------------
23,668 Total Health Care Providers & Services 23,723,510
------------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.3%
990 Cedar Fair LP, Term Loan 7.320% 8/30/12 BB 995,259
134 Travelport, Term Loan 7.860% 8/23/13 BB- 134,908
1,262 Travelport, Term Loan 7.820% 8/23/13 BB- 1,269,145
1,000 Venetian Casino Resort, LLC, Delayed Draw, Term Loan (7) (8) TBD TBD BB (893)
4,000 Venetian Casino Resort, LLC, Term Loan, DD1 TBD TBD BB 3,996,428
------------------------------------------------------------------------------------------------------------------------------------
7,386 Total Hotels, Restaurants & Leisure 6,394,847
------------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
2,923 Dealer Computer Service, Term Loan 7.360% 10/26/12 BB 2,940,627
------------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.1%
1,990 Oshkosh Truck Corporation, Term Loan 7.110% 12/06/13 BBB- 1,998,700
------------------------------------------------------------------------------------------------------------------------------------
MEDIA - 1.4%
2,000 Blockbuster, Inc., Term Loan B, WI/DD TBD TBD B+ 1,998,875
1,075 Charter Communications Operating, LLC, Term Loan 7.320% 3/06/14 B+ 1,066,938
3,000 Charter Communications Operating, LLC, Term Loan 7.360% 9/06/14 B1 2,977,500
2,500 Citadel Broadcasting Company, Term Loan 6.945% 6/12/14 BB- 2,484,375
4,000 Discovery Communications, Term Loan 7.360% 5/14/14 N/R 4,021,876
3,980 Neilsen Finance LLC, Term Loan B, DD1 TBD TBD Ba3 4,008,581
956 Philadelphia Newspapers, Term Loan 8.100% 6/29/13 N/R 960,526
1,000 Tribune Company, Term Loan 7.875% 5/17/09 BB+ 1,001,771
5,000 Tribune Company, Term Loan 8.375% 5/17/14 BB+ 4,893,750
362 Univision Communications, Inc., Delayed Draw, Term Loan (7) (8) 1.000% 9/29/14 Ba3 (4,478)
5,638 Univision Communications, Term Loan 7.605% 9/15/14 Ba3 5,567,926
------------------------------------------------------------------------------------------------------------------------------------
29,511 Total Media 28,977,640
------------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.2%
1,084 NRG Energy Inc., Term Loan 7.010% 2/01/13 Ba1 1,080,517
800 NRG Energy Inc., Delayed Draw, Term Loan (7) (8) 7.110% 2/01/13 Ba1 (5,000)
2,610 NRG Energy Inc., Term Loan 7.110% 2/01/13 Ba1 2,602,718
------------------------------------------------------------------------------------------------------------------------------------
4,494 Total Multi-Utilities 3,678,235
------------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.1%
990 Georgia-Pacific Corporation, Term Loan B 7.110% 12/20/10 BB+ 993,334
54 Ply Gem Industries Inc., Term Loan 8.110% 8/15/11 B+ 53,763
1,446 Ply Gem Industries Inc., Term Loan 8.110% 8/15/11 BB- 1,442,351
------------------------------------------------------------------------------------------------------------------------------------
2,490 Total Paper & Forest Products 2,489,448
------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.1%
1,000 LNR Property Corporation, Term Loan B 8.110% 7/12/11 B+ 1,002,143
------------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.3%
5,000 Swift Transportation, Term Loan 8.375% 5/10/14 BB- 4,947,320
------------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.1%
1,016 Advanced Micro Devices, Term Loan B 7.360% 12/31/13 Ba2 1,015,556
------------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.1%
1,318 Intergraph Corporation, Term Loan 7.610% 5/29/13 B+ 1,325,091
------------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.4%
2,500 Burlington Coat Factory Warehouse Corporation, Term Loan 7.610% 5/28/11 B2 2,475,348
3,477 Michaels Stores Inc., Term Loan, WI/DD TBD TBD B 3,448,361
1,500 Toys "R" Us, Inc., Term Loan 8.320% 7/19/12 B3 1,508,555
------------------------------------------------------------------------------------------------------------------------------------
7,477 Total Specialty Retail 7,432,264
------------------------------------------------------------------------------------------------------------------------------------
$ 113,925 Total Variable Rate Senior Loan Interests (cost $111,782,661) 111,549,909
====================================================================================================================================
48
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS - 15.3% (10.0% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.3%
$ 700 Alliant Techsystems Inc., 144A 2.750% 9/15/11 B+ $ 812,875
500 Armor Holdings Inc. 2.000% 11/01/24 B+ 895,000
600 DRS Technologies, Inc., 144A 2.000% 2/01/26 B+ 660,000
1,100 L-3 Communications Corporation 3.000% 8/01/35 BB+ 1,245,750
1,000 Lockheed Martin Corporation 5.110% 8/15/33 A- 1,348,400
----------------------------------------------------------------------------------------------------------------------------------
3,900 Total Aerospace & Defense 4,962,025
----------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.0%
600 Arvinmeritor, Inc. 4.625% 3/01/26 B+ 758,250
----------------------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 1.2%
9,435 Amgen Inc., 144A, DD1 0.125% 2/01/11 A+ 8,585,850
500 Amgen Inc., 144A 0.375% 2/01/13 A+ 446,250
1,000 Amgen Inc. 0.375% 2/01/13 A+ 892,500
1,050 Cephalon, Inc., Series B 2.000% 6/01/15 B- 1,928,063
1,400 Genzyme Corporation 1.250% 12/01/23 BBB 1,477,000
4,439 Medimmune, Inc. 1.375% 7/15/11 BBB 7,934,713
1,250 Medimmune, Inc. 1.625% 7/15/13 BBB 2,281,250
----------------------------------------------------------------------------------------------------------------------------------
19,074 Total Biotechnology 23,545,626
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
250 BlackRock Inc. 2.625% 2/15/35 A+ 396,563
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.2%
3,850 U.S. Bancorp 3.607% 8/06/37 AA 3,824,975
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.0%
650 Getty Images, Inc. 0.500% 6/09/23 Ba2 654,875
----------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.9%
2,000 Ciena Corporation 3.750% 2/01/08 B 1,987,500
550 Juniper Networks Inc. 0.000% 6/15/08 BB 712,250
9,560 Lucent Technologies Inc., Series B 2.750% 6/15/25 Ba2 10,755,000
2,740 Lucent Technologies Inc. 2.750% 6/15/23 Ba2 2,894,125
1,750 Nortel Networks Corp. 4.250% 9/01/08 B- 1,734,688
----------------------------------------------------------------------------------------------------------------------------------
16,600 Total Communications Equipment 18,083,563
----------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.3%
1,850 EMC Corporation, 144A 1.750% 12/01/11 BBB+ 2,344,875
1,700 EMC Corporation, 144A 1.750% 12/01/13 BBB+ 2,173,875
500 Maxtor Corporation 2.375% 8/15/12 BB+ 691,250
1,200 Sandisk Corporation 1.000% 5/15/13 BB- 1,060,500
----------------------------------------------------------------------------------------------------------------------------------
5,250 Total Computers & Peripherals 6,270,500
----------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.3%
3,580 Quanta Services Inc., Series 144A 3.750% 4/30/26 N/R 5,410,275
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.2%
3,750 SLM Corporation 5.305% 7/25/35 A2 3,765,000
----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
750 Sealed Air Corporation, 144A 3.000% 6/30/33 BBB 763,125
----------------------------------------------------------------------------------------------------------------------------------
49
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.2%
$ 400 Leucadia National Corporation 3.750% 4/15/14 B+ $ 668,500
2,450 Merrill Lynch & Co. Inc. 0.000% 3/13/32 Aa3 3,018,155
-------------------------------------------------------------------------------------------------------------------------------
2,850 Total Diversified Financial Services 3,686,655
-------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2%
2,500 Qwest Communications International Inc. 3.500% 11/15/25 B+ 4,393,750
-------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
1,475 Centerpoint Energy Inc. 3.750% 5/15/23 BBB- 2,299,156
-------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.0%
500 General Cable Corporation 0.875% 11/15/13 B+ 804,375
-------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.3%
900 Anixter International Inc. 0.000% 7/07/33 BB- 1,024,875
400 Fisher Scientific International, Inc. 2.500% 10/01/23 BBB+ 892,500
700 SESI LLC, Convertible Bond, 144A 1.500% 12/15/26 BB- 756,875
1,150 Solectron Corporation, Series B 0.500% 2/15/34 BB- 1,102,563
1,100 Tech Data Corporation 2.750% 12/15/26 BBB- 1,075,250
750 Vishay Intertechnology Inc. 3.625% 8/01/23 B+ 766,875
-------------------------------------------------------------------------------------------------------------------------------
5,000 Total Electronic Equipment & Instruments 5,618,938
-------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 1.2%
500 Cooper Cameron Corporation 1.500% 5/15/24 BBB+ 1,045,625
1,200 Halliburton Company 3.125% 7/15/23 A2 2,227,500
1,500 Nabors Industries Inc.,144A 0.940% 5/15/11 A- 1,470,000
6,600 Nabors Industries Inc.,144A 0.940% 5/15/11 A- 6,468,000
6,900 Nabors Industries Inc., DD1 0.000% 6/15/23 N/R 7,426,125
500 Pride International Inc. 3.250% 5/01/33 Ba2 749,375
1,700 Schlumberger Limited 2.125% 6/01/23 A+ 3,629,500
650 Transocean Inc. 1.500% 5/15/21 A- 963,625
-------------------------------------------------------------------------------------------------------------------------------
19,550 Total Energy Equipment & Services 23,979,750
-------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.1%
1,250 Archer Daniels Midland Company, 144A 0.875% 2/15/14 A 1,193,750
1,400 General Mills, Inc. 5.332% 4/11/37 BBB+ 1,400,000
-------------------------------------------------------------------------------------------------------------------------------
2,650 Total Food Products 2,593,750
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 1.2%
500 Advanced Medical Optics 3.250% 8/01/26 N/R 450,625
750 Beckman Coulter Inc., 144A 2.500% 12/15/36 BBB 798,750
250 Medtronic, Inc. 1.500% 4/15/11 AA- 266,250
17,550 Medtronic, Inc. 1.500% 4/15/11 AA- 18,690,750
1,800 Medtronic, Inc. 1.625% 4/15/13 AA- 1,899,000
1,300 Saint Jude Medical, Inc., 144A 1.220% 12/15/08 BBB+ 1,290,250
-------------------------------------------------------------------------------------------------------------------------------
22,150 Total Health Care Equipment & Supplies 23,395,625
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.2%
950 Health Management Associates Inc. 1.500% 8/01/23 Baa3 1,020,063
500 LifePoint Hospitals Inc. 3.250% 8/15/25 B 467,500
800 Manor Care, Inc. 2.125% 8/01/35 BBB- 1,205,000
2,525 Omnicare, Inc. 3.250% 12/15/35 BB- 2,124,156
-------------------------------------------------------------------------------------------------------------------------------
4,775 Total Health Care Providers & Services 4,816,719
-------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.7%
4,250 Caesars Entertainment Inc. 5.350% 4/15/24 Baa3 5,685,225
1,200 Carnival Corporation 2.000% 4/15/21 A- 1,521,000
7,150 Carnival Corporation 1.132% 4/29/33 A- 4,933,500
650 Hilton Hotels Corporation 3.375% 4/15/23 BB+ 982,313
1,550 International Game Technology, 144A 2.600% 12/15/36 BBB 1,517,063
-------------------------------------------------------------------------------------------------------------------------------
14,800 Total Hotels, Restaurants & Leisure 14,639,101
-------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.2%
3,500 3M Company 0.000% 11/21/32 Aa1 3,171,875
-------------------------------------------------------------------------------------------------------------------------------
50
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.6%
$ 8,015 American Financial Group Inc. 1.486% 6/02/33 BBB $ 4,798,981
400 Aon Corporation 3.500% 11/15/12 BBB+ 796,500
1,000 Conseco, Inc. 3.500% 9/30/35 BB- 1,021,250
5,450 Prudential Financial, Inc. 2.960% 12/12/36 A+ 5,645,110
-------------------------------------------------------------------------------------------------------------------------------
14,865 Total Insurance 12,261,841
-------------------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.1%
1,000 Amazon.com Inc. 4.750% 2/01/09 Ba3 1,023,750
-------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.1%
850 Yahoo! Inc. 0.000% 4/01/08 BBB- 1,151,750
-------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
1,050 Electronic Data Systems Corporation 3.875% 7/15/23 BBB- 1,068,375
-------------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.1%
700 Eastman Kodak Company 3.375% 10/15/33 B1 738,500
400 Hasbro Inc. 2.750% 12/01/21 BBB- 585,000
-------------------------------------------------------------------------------------------------------------------------------
1,100 Total Leisure Equipment & Products 1,323,500
-------------------------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.1%
500 Apogent Technologies, Inc. 4.110% 12/15/33 BBB+ 923,700
650 Millipore Corporation 3.750% 6/01/26 N/R 699,563
-------------------------------------------------------------------------------------------------------------------------------
1,150 Total Life Sciences Tools & Services 1,623,263
-------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.5%
250 Danaher Corporation 0.000% 1/22/21 A+ 277,188
350 Kaydon Corporation 4.000% 5/23/23 BB- 633,500
7,100 Trinity Industries Inc. 3.875% 6/01/36 BB- 7,996,375
-------------------------------------------------------------------------------------------------------------------------------
7,700 Total Machinery 8,907,063
-------------------------------------------------------------------------------------------------------------------------------
MEDIA - 1.5%
650 Interpublic Group, Inc. 4.250% 3/15/23 Ba3 764,563
Liberty Media Corporation, Senior Debentures,
1,050 Exchangeable for Motorola Common Stock 3.750% 2/15/30 BB+ 657,563
Liberty Media Corporation, Senior Debentures,
4,900 Exchangeable for Motorola Common Stock 3.500% 1/15/31 BB+ 4,060,287
Liberty Media Corporation, Senior Debentures,
1,050 Exchangeable for PCS Common Stock, Series 1 4.000% 11/15/29 BB+ 711,375
11,600 Liberty Media Corporation 0.750% 3/30/23 BB+ 14,239,000
2,250 Omnicom Group, Inc. 0.000% 2/07/31 A- 2,348,438
4,500 Omnicom Group, Inc. 0.000% 7/01/38 A- 4,899,375
1,300 Walt Disney Company 2.125% 4/15/23 A2 1,563,250
-------------------------------------------------------------------------------------------------------------------------------
27,300 Total Media 29,243,851
-------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.3%
4,325 Dominion Resources Inc., Series C 2.125% 12/15/23 BBB 5,076,469
-------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.6%
1,900 Chesapeake Energy Corporation, 144A 2.750% 11/15/35 BB 2,068,625
800 Devon Energy Corporation 4.900% 8/15/08 BBB 1,262,000
7,450 Peabody Energy Corp., Convertible Bond, DD1 4.750% 12/15/66 Ba3 7,906,313
-------------------------------------------------------------------------------------------------------------------------------
10,150 Total Oil, Gas & Consumable Fuels 11,236,938
-------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.9%
5,110 Allergan Inc., 144A 1.500% 4/01/26 A 5,429,375
5,140 Allergan Inc. 1.500% 4/01/26 A 5,461,250
1,050 Bristol-Myers Squibb Company 4.860% 9/15/23 A+ 1,068,375
700 Myland Labs, Inc. 1.250% 3/15/12 BB+ 679,000
895 Teva Pharmaceutical Finance, Series A 0.500% 2/01/24 BBB 1,031,488
900 Teva Pharmaceutical Finance, Series B 0.250% 2/01/24 BBB 1,100,250
800 Watson Pharmaceuticals Inc. 1.750% 3/15/23 BB+ 779,000
1,650 Wyeth 4.883% 1/15/24 A+ 1,874,730
-------------------------------------------------------------------------------------------------------------------------------
16,245 Total Pharmaceuticals 17,423,468
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 1.2%
750 Archstone-Smith Trust 4.000% 7/15/36 BBB+ 789,375
11,100 Boston Properties Limited Partnership, 144A 2.875% 2/15/37 BBB+ 10,420,125
51
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE (continued)
$ 800 Boston Properties Limited Partnership 3.750% 5/15/36 BBB+ $ 883,000
650 Brandywine Operating Partnership 3.875% 10/15/26 BBB- 621,563
750 BRE Properties Inc. 4.125% 8/15/26 BBB 779,063
1,050 Developers Diversified Realty Corporation 3.000% 3/15/12 BBB 971,250
700 Duke Realty Corporation, Series D 3.750% 12/01/11 BBB+ 668,500
850 Health Care REIT, Inc. 4.750% 12/01/26 Baa2 862,750
1,100 Hospitality Properties Trust 3.800% 3/15/27 BBB 1,067,000
700 Host Hotels & Resorts Inc, 144A 2.625% 4/15/27 BB 644,000
550 Host Marriott LP, 144A 3.250% 4/15/24 Ba1 784,438
1,400 Prologis, 144A 2.250% 4/01/37 BBB+ 1,326,500
900 Vornado Realty Trust 2.850% 4/01/27 BBB 839,250
950 Vornado Realty 3.875% 4/15/25 BBB 1,223,125
950 Weingarten Realty Investment Trust 3.950% 8/01/26 A- 960,688
-------------------------------------------------------------------------------------------------------------------------------
23,200 Total Real Estate 22,840,627
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.2%
550 Forest City Enterprises, Inc. 3.625% 10/15/11 BB- 604,010
3,785 Tanger Properties Limited Partnership 3.750% 8/15/26 BBB- 4,243,931
-------------------------------------------------------------------------------------------------------------------------------
4,335 Total Real Estate Management & Development 4,847,941
-------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.2%
1,575 CSX Corporation 0.000% 10/30/21 BBB- 2,525,906
700 Yellow Roadway Corporation 5.000% 8/08/23 BBB- 856,625
-------------------------------------------------------------------------------------------------------------------------------
2,275 Total Road & Rail 3,382,531
-------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.3%
2,150 Advanced Micro Devices, Inc. 6.000% 5/01/15 B- 2,080,125
800 Cypress Semiconductor Corporation 144A 1.000% 9/15/09 B- 888,000
1,900 Intel Corporation 2.950% 12/15/35 A- 1,821,625
1,300 Xilinx Inc., 144A 3.125% 3/15/37 BB 1,316,250
-------------------------------------------------------------------------------------------------------------------------------
6,150 Total Semiconductors & Equipment 6,106,000
-------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.2%
3,000 Amdocs Limited 0.500% 3/15/24 BBB- 3,112,500
Computer Associates International Inc., Series
500 144A 1.625% 12/15/09 Ba1 669,375
700 Red Hat Inc. 0.500% 1/15/24 B+ 732,375
-------------------------------------------------------------------------------------------------------------------------------
4,200 Total Software 4,514,250
-------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.1%
700 TJX Companies, Inc. 0.000% 2/13/21 A- 644,875
2,190 United Auto Group, Inc. 3.500% 4/01/26 B 2,373,413
-------------------------------------------------------------------------------------------------------------------------------
2,890 Total Specialty Retail 3,018,288
-------------------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.1%
1,524 GATX Corporation 5.000% 8/15/23 BBB+ 3,034,665
-------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.3%
550 American Tower Corporation 3.000% 8/15/12 BB+ 1,161,188
4,500 Nextel Communications, Inc. 5.250% 1/15/10 BBB 4,494,375
-------------------------------------------------------------------------------------------------------------------------------
5,050 Total Wireless Telecommunication Services 5,655,563
-------------------------------------------------------------------------------------------------------------------------------
$ 273,363 TOTAL CONVERTIBLE BONDS (COST $285,830,084) 301,574,604
===============================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 9.9% (6.5% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.2%
$ 1,000 Hexcel Corporation 6.750% 2/01/15 B+ $ 975,000
2,500 K&F Acquisition Inc. 7.750% 11/15/14 B- 2,662,500
-------------------------------------------------------------------------------------------------------------------------------
3,500 Total Aerospace & Defense 3,637,500
-------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.0%
800 Keystone Automotive Operations Inc. 9.750% 11/01/13 CCC+ 700,000
-------------------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.2%
$ 1,000 Nell AF Sarl 8.375% 8/15/15 B $ 962,500
3,000 Rockwood Specialties Group Inc., Series WI 7.500% 11/15/14 B- 3,030,000
-------------------------------------------------------------------------------------------------------------------------------
4,000 Total Chemicals 3,992,500
-------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.0%
900 Williams Scotsman Inc. 8.500% 10/01/15 B+ 933,750
-------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.3%
227 MDP Acquisitions PLC, Senior Notes 9.625% 10/01/12 B 238,918
Owens-Brockway Glass Containers, Guaranteed Senior
3,000 Note 8.250% 5/15/13 BB 3,120,000
3,000 Owens-Illinois Inc. 7.500% 5/15/10 B 3,041,250
-------------------------------------------------------------------------------------------------------------------------------
6,227 Total Containers & Packaging 6,400,168
-------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2%
2,000 Intelsat Subsidiary Holding Company Limited 8.500% 1/15/13 B+ 2,040,000
750 Syniverse Technologies Inc., Series B 7.750% 8/15/13 B 720,000
1,500 Telcorida Technologies, Inc. 9.110% 7/15/12 B 1,485,000
-------------------------------------------------------------------------------------------------------------------------------
4,250 Total Diversified Telecommunication Services 4,245,000
-------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
500 Mirant North America LLC 7.375% 12/31/13 B2 513,750
1,000 Sierra Pacific Resources, Series 2006 6.750% 8/15/17 B1 988,060
-------------------------------------------------------------------------------------------------------------------------------
1,500 Total Electric Utilities 1,501,810
-------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.2%
1,800 Hanover Compressor Company 7.500% 4/15/13 B 1,818,000
2,500 Pride International Inc. 7.375% 7/15/14 Ba2 2,518,750
-------------------------------------------------------------------------------------------------------------------------------
4,300 Total Energy Equipment & Services 4,336,750
-------------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.1%
2,000 Stater Brothers Holdings Inc. 8.125% 6/15/12 B+ 2,025,000
-------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.4%
4,610 Del Monte Corporation 8.625% 12/15/12 B 4,782,875
1,096 Dole Foods Company 8.625% 5/01/09 B- 1,098,740
2,700 Dole Foods Company 7.875% 7/15/13 B- 2,646,000
-------------------------------------------------------------------------------------------------------------------------------
8,406 Total Food Products 8,527,615
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.4%
3,000 Community Health Systems, Inc., WI/DD 8.875% 7/15/15 B3 3,056,250
700 HCA The Health Care Corporation Inc., 144A 9.125% 11/15/14 BB- 737,625
700 HCA The Health Care Corporation Inc., 144A 9.250% 11/15/16 BB- 747,250
3,000 US Oncology Inc. 10.750% 8/15/14 B2 3,225,000
-------------------------------------------------------------------------------------------------------------------------------
7,400 Total Health Care Providers & Services 7,766,125
-------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 1.1%
4,075 Boyd Gaming Corporation 7.750% 12/15/12 Ba3 4,197,250
1,500 Herbst Gaming Inc. 7.000% 11/15/14 B- 1,413,750
1,650 Jacobs Entertainment Inc. 9.750% 6/15/14 B- 1,722,188
2,000 Landry's Restaurants Inc., Series B 7.500% 12/15/14 B- 1,950,000
1,000 Park Place Entertainment 7.875% 3/15/10 Ba1 1,028,800
2,000 Pinnacle Entertainment Inc. 8.250% 3/15/12 B- 2,070,000
3,000 Pinnacle Entertainment Inc. 8.750% 10/01/13 B- 3,150,000
1,750 Seminole Hard Rock Entertainment, Inc. 7.860% 3/15/14 BB 1,771,875
4,000 Universal City Development Partners 11.750% 4/01/10 B1 4,250,000
-------------------------------------------------------------------------------------------------------------------------------
20,975 Total Hotels, Restaurants & Leisure 21,553,863
-------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
600 NRG Energy Inc. 7.250% 2/01/14 B1 603,000
600 NRG Energy Inc. 7.375% 2/01/16 B1 603,000
-------------------------------------------------------------------------------------------------------------------------------
1,200 Total Independent Power Producers & Energy Traders 1,206,000
-------------------------------------------------------------------------------------------------------------------------------
53
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.3%
$ 1,500 Liberty Mutual Group 7.800% 3/15/37 Baa3 $ 1,416,206
4,000 Progressive Corporation 6.700% 6/15/37 A2 3,982,608
-------------------------------------------------------------------------------------------------------------------------------
5,500 Total Insurance 5,398,814
-------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.4%
1,950 Global Cash Access LLC 8.750% 3/15/12 B- 2,032,875
4,750 SunGard Data Systems Inc. 9.125% 8/15/13 B- 4,886,563
-------------------------------------------------------------------------------------------------------------------------------
6,700 Total IT Services 6,919,438
-------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.2%
3,000 Greenbrier Companies, Inc. 8.375% 5/15/15 B+ 3,037,500
-------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.9%
6,900 Allbritton Communications Company, Series B 7.750% 12/15/12 B1 6,969,000
2,000 AMC Entertainment Inc. 8.000% 3/01/14 B2 1,970,000
4,200 American Media Operations Inc., Series B 10.250% 5/01/09 Caa2 4,000,500
5,000 Cablevision Systems Corporation, Series B 8.125% 8/15/09 B+ 5,112,500
3,000 Cablevision Systems Corporation 7.250% 7/15/08 B+ 3,030,000
2,000 Cablevision Systems Corporation 8.125% 7/15/09 B+ 2,045,000
2,000 Charter Communications Operating LLC, 144A 8.000% 4/30/12 B+ 2,035,000
1,000 Dex Media West LLC 8.500% 8/15/10 B1 1,038,750
2,198 Dex Media West LLC 9.875% 8/15/13 B 2,362,850
4,000 MediaNews Group Inc. 6.375% 4/01/14 B 3,350,000
1,950 Panamsat Corporation 9.000% 8/15/14 B2 2,042,625
6,000 Primedia Inc., Senior Notes 8.875% 5/15/11 B 6,195,000
2,000 R. H. Donnelley Finance Corp 1 10.875% 12/15/12 B 2,137,500
2,000 Sun Media Corporation 7.625% 2/15/13 Ba2 2,020,000
6,200 Vertis Inc. 9.750% 4/01/09 B1 6,324,000
5,500 Young Broadcasting Inc., Senior Subordinated Note 10.000% 3/01/11 Caa1 5,500,000
2,000 Young Broadcasting Inc. 8.750% 1/15/14 Caa1 1,900,000
-------------------------------------------------------------------------------------------------------------------------------
57,948 Total Media 58,032,725
-------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.2%
3,000 Chaparral Steel Company 10.000% 7/15/13 B+ 3,288,750
-------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.3%
2,600 Bon-Ton Department Stores Inc. 10.250% 3/15/14 B- 2,645,500
2,400 Dynegy Holdings Inc. 8.375% 5/01/16 B2 2,358,000
500 Northwestern Corporation 5.875% 11/01/14 BBB- 485,926
-------------------------------------------------------------------------------------------------------------------------------
5,500 Total Multi-Utilities 5,489,426
-------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.6%
600 Chaparral Energy Inc. 8.500% 12/01/15 CCC+ 589,500
4,345 Chesapeake Energy Corporation 7.750% 1/15/15 BB 4,442,763
Hilcorp Energy I LP/Hilcorp Finance Company,
1,000 Series 144A 7.750% 11/01/15 B 975,000
2,000 Premcor Refining Group Inc. 7.500% 6/15/15 BBB 2,063,792
3,000 SemGroup LP, 144A 8.750% 11/15/15 B1 3,030,000
1,500 Whiting Petroleum Corporation 7.000% 2/01/14 B1 1,417,500
-------------------------------------------------------------------------------------------------------------------------------
12,445 Total Oil, Gas & Consumable Fuels 12,518,555
-------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.4%
2,000 Georgia Pacific Corporation, Debentures 7.700% 6/15/15 B 1,990,000
5,000 Georgia Pacific Corporation, Notes 8.125% 5/15/11 B 5,131,250
-------------------------------------------------------------------------------------------------------------------------------
7,000 Total Paper & Forest Products 7,121,250
-------------------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.1%
1,600 Prestige Brands Inc. 9.250% 4/15/12 B- 1,648,000
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.2%
3,000 Felcor Lodging Trust Inc., 144A 7.260% 12/01/11 Ba3 3,015,000
1,000 Trustreet Properties, Inc. 7.500% 4/01/15 AAA 1,076,806
500 Ventas Realty LP, Series WI 7.125% 6/01/15 BB+ 506,250
-------------------------------------------------------------------------------------------------------------------------------
4,500 Total Real Estate 4,598,056
-------------------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.2%
$ 2,400 Avago Technologies Finance Pte Limited 10.375% 12/01/13 B $ 2,568,000
2,000 NXP BV 8.106% 10/15/13 Ba2 2,012,500
-------------------------------------------------------------------------------------------------------------------------------
4,400 Total Semiconductors & Equipment 4,580,500
-------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.4%
1,000 Quiksilver Inc. 6.875% 4/15/15 Ba3 945,000
7,000 Warnaco Inc., Senior Notes 8.875% 6/15/13 BB- 7,420,000
-------------------------------------------------------------------------------------------------------------------------------
8,000 Total Specialty Retail 8,365,000
-------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.2%
4,000 Jostens IH Corporation 7.625% 10/01/12 B1 4,000,000
-------------------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.1%
2,000 United Rentals North America Inc. 6.500% 2/15/12 B+ 1,975,000
-------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
1,500 IPCS, Inc. 7.480% 5/01/13 B1 1,509,375
-------------------------------------------------------------------------------------------------------------------------------
$ 192,551 TOTAL CORPORATE BONDS (COST $197,110,534) 195,308,470
===============================================================================================================================
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
CAPITAL PREFERRED SECURITIES - 29.0% (19.1% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 3.8%
1,250 C.A. Preferred Fund Trust II 7.000% 10/30/49 A1 $ 1,242,399
32,750 C.A. Preferred Funding Trust 7.000% 1/30/49 A1 32,511,744
3,000 Compass Trust I, Series A 8.230% 1/15/27 A3 3,123,450
12,400 Dresdner Funding Trust I, 144A 8.151% 6/30/31 A1 14,322,360
2,000 First Hawaiian Capital Trust I, Series B 8.343% 7/01/27 A- 2,087,154
3,500 First Union Capital Trust II, Series A 7.950% 11/15/29 A1 4,112,959
6,700 Kleinwort Benson Group PLC 5.848% 12/31/99 N/R 5,757,585
2,200 MUFG Capital Finance 2 4.850% 7/25/56 BBB 2,794,538
9,000 State Street Institutional Capital Trust, 144A 8.035% 3/15/27 A1 9,372,627
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 75,324,816
----------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 16.9%
2,000 AB Svensk Exportkredit, 144A 6.375% 10/27/49 AA- 1,985,134
8,000 Abbey National Capital Trust I 8.963% 6/30/50 A+ 10,154,824
43,100 AgFirst Farm Credit Bank 7.300% 12/15/53 A- 43,057,590
13,070 Bank One Capital III 8.750% 9/01/30 Aa3 16,660,786
2,600 BankAmerica Institutional Capital Trust, Series B, 144A 7.700% 12/31/26 Aa2 2,698,280
1,000 BanPonce Trust I, Series A 8.327% 2/01/27 A3 1,041,630
4,000 Barclays Bank PLC, 144A 8.550% 6/15/49 Aa3 4,408,680
4,000 BBVA International Preferred SA, Unipersonal 5.919% 10/18/49 A1 3,759,456
1,000 Capital One Capital IV Corporation 6.745% 2/17/37 Baa1 923,241
2,000 CBG Florida REIT Corporation 7.114% 11/15/49 Baa3 1,976,726
10,100 DBS Capital Funding Corporation, 144A 7.657% 3/15/49 Aa3 10,772,953
2,400 Den Norske Bank, 144A 7.729% 6/29/49 Aa3 2,555,527
5,750 First Empire Capital Trust I 8.234% 2/01/27 A3 5,993,530
11,000 First Empire Capital Trust II 8.277% 6/01/27 A3 11,471,757
4,250 First Midwest Bancorp Inc. 6.950% 12/01/33 Baa1 4,338,919
14,250 HBOS Capital Funding LP, Notes 6.850% 3/23/49 A1 13,923,233
18,100 HBOS PLC, Series 144A 6.413% 4/01/49 A1 16,994,199
12,838 HSBC Capital Funding LP, 144A 9.547% 12/31/49 A1 14,185,708
14,000 HSBC Capital Funding LP, Debt 10.176% 6/30/50 A1 19,649,168
19,605 KBC Bank Fund Trust III, 144A 9.860% 5/02/50 A1 21,389,114
4,000 KeyCorp Capital III 7.750% 7/15/29 A3 4,551,428
8,000 Lloyds TSB Bank PLC, Subordinated Note 6.900% 11/22/49 Aa2 7,909,920
4,000 Mizuho Financial Group 8.375% 4/27/49 Aa3 4,178,124
1,000 Nordbanken AB, 144A 8.950% 11/29/49 Aa3 1,067,059
10,000 North Fork Capital Trust II 8.000% 12/15/27 Baa1 10,462,830
6,000 Northgroup Preferred Capital Corporation, 144A 6.378% 10/15/57 A1 5,836,776
2,000 Popular North American Capital Trust I 6.564% 9/15/34 A3 1,835,998
4,150 RBS Capital Trust B 6.800% 12/31/49 A1 4,067,967
55
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
2,000 Reliance Capital Trust I, Series B 8.170% 5/01/28 N/R $ 2,109,564
1,202 Republic New York Capital II, Capital Securities 7.530% 12/04/26 A1 1,247,255
6,200 Royal Bank of Scotland Group PLC 9.118% 3/31/49 Aa3 6,744,478
3,500 Shinsei Finance II Cayman Limited, Perpetual Maturity, 144A 7.160% 7/25/49 Baa2 3,496,721
3,100 Standard Chartered PLC, 144A 6.409% 1/30/57 BBB+ 2,961,380
11,700 Standard Chartered PLC, 144A 7.014% 1/30/58 BBB+ 11,256,125
14,700 Swedbank ForeningsSparbanken AB, 144A 9.000% 9/17/50 Aa3 15,836,031
15,290 Unicredito Italiano Capital Trust, 144A 9.200% 4/05/51 A1 16,895,465
600 Union Bank of Norway 7.068% 11/19/49 A2 884,425
Washington Mutual Preferred Funding Cayman, Series
25,600 A-1, 144A 7.250% 3/15/49 Baa1 25,379,994
------------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 334,661,995
--------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 2.6%
4,800 Fulton Capital Trust I 6.290% 2/01/36 A3 4,545,989
18,600 JPMorgan Chase Capital Trust XVIII 6.950% 8/17/36 Aa3 18,859,693
3,767 MM Community Funding Trust I Limited 8.030% 6/15/31 Aaa 4,125,103
23,600 Old Mutual Capital Funding, Notes 8.000% 6/22/53 Baa2 24,190,000
------------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 51,720,785
--------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.1%
19,080 Centaur Funding Corporation, Series B, 144A 9.080% 4/21/20 BBB 21,429,225
------------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 3.6%
10,000 American General Capital II 8.500% 7/01/30 Aa3 12,470,520
4,980 American General Institutional Capital, 144A 8.125% 3/15/46 Aa3 6,030,083
9,800 AXA SA, 144A 6.463% 12/14/49 BBB+ 9,128,014
1,000 Great West Life and Annuity Insurance Company 7.153% 5/16/46 A- 1,025,770
7,300 MetLife Inc. 6.400% 12/15/66 BBB+ 6,783,737
1,550 Nationwide Financial Services Capital Trust 7.899% 3/01/37 Baa1 1,753,207
7,600 Oil Insurance Limited, 144A 7.558% 12/30/49 Baa1 7,882,576
2,550 Prudential PLC 6.500% 6/29/49 A 2,424,696
9,000 QBE Capital Funding Trust II, 144A 6.797% 6/01/49 BBB 8,803,755
15,000 XL Capital, Limited 6.500% 10/15/57 BBB 14,112,600
------------------------------------------------------------------------------------------------------------------------------------
Total Insurance 70,414,958
--------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.5%
10,355 KN Capital Trust III 7.630% 4/15/28 B1 9,760,934
------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.0%
3,500 PS Business Parks Inc., Series M 7.200% 3/30/55 BBB- 88,305
------------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.4%
7,600 Burlington Northern Santa Fe Funding Trust I 6.613% 12/15/55 BBB 6,960,331
------------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.1%
Caisse Nationale Des Caisses d'Epargne et de
2,000 Prevoyance 6.750% 1/27/49 A+ 1,944,380
1,000 Washington Mutual Preferred Funding Trust II 6.665% 3/15/57 Baa1 956,281
------------------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 2,900,661
--------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL PREFERRED SECURITIES (COST $600,320,196) 573,262,010
====================================================================================================================
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 2.2% (1.4% OF TOTAL INVESTMENTS)
BlackRock Preferred and Corporate Income
99,306 Strategies Fund $ 2,026,835
652,633 BlackRock Preferred Income Strategies Fund 12,700,238
13,829 BlackRock Preferred Opportunity Trust 329,822
Flaherty and Crumrine/Claymore Preferred
617,866 Securities Income Fund Inc. 12,616,824
Flaherty and Crumrine/Claymore Total Return Fund
147,335 Inc. 3,004,161
535,483 John Hancock Preferred Income Fund III 11,657,465
15,690 John Hancock Preferred Income Fund II 373,422
11,024 John Hancock Preferred Income Fund 262,113
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES (COST $42,900,497) 42,970,880
====================================================================================================================
56
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY VALUE
--------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 24.4% (16.0% OF TOTAL INVESTMENTS)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 0.3%
$ 5,000 United States of America Treasury Bills 4.450% 8/02/07 $ 4,980,840
--------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 24.1%
Repurchase Agreement with Fixed Income Clearing
Corporation, dated 6/29/07, repurchase price
$476,893,959, collateralized by $200,000,000 U.S.
Treasury Notes, 4.750%, due 11/15/08, value
$200,500,000, $75,000,000 U.S. Treasury Notes,
3.125%, due 10/15/08, value $73,687,500,
$2,320,000 U.S. Treasury Notes, 2.625%, due
3/15/09, value $2,247,500, $129,925,000 U.S.
Treasury Notes, 5.125%, due 6/30/08, value
$133,335,531 and $75,000,000 U.S. Treasury Notes,
476,735 4.750%, due 12/31/08, value $76,500,000 4.000% 7/02/07 476,735,047
========== ----------------------------------------------------------------------------------------------------------------
$ 481,735 TOTAL SHORT-TERM INVESTMENTS (COST $481,715,887) 481,715,887
================================================================================================================================
Total Investments (cost $3,009,898,227) - 152.0% 3,004,198,891
================================================================================================================
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (9) DATE PRICE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - 0.0% (10)
(48) eBay, Inc. $ (156,000) 1/19/08 $32.5 $ (158,666)
-----------------------------------------------------------------------------------------------------------------------------------
(48) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (156,000) (158,666)
$158,666)
===================================================================================================================================
OTHER ASSETS LESS LIABILITIES -- (3.2)% (62,293,365)
======================================================================================================================
PREFERRED SHARES, AT LIQUIDATION VALUE --(48.8)% (965,000,000)
======================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES -- 100% $1,976,746,860
======================================================================================================================
INTEREST RATE SWAPS OUTSTANDING AT JUNE 30, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase $97,000,000 Receive 1-Month USD-LIBOR 3.360% Monthly 1/23/09 $ 2,884,801
Morgan Stanley 97,000,000 Receive 1-Month USD-LIBOR 3.048 Monthly 1/23/08 1,308,940
------------------------------------------------------------------------------------------------------------------------
$ 4,193,741
========================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
FUTURES CONTRACTS OUTSTANDING AT JUNE 30, 2007:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION JUNE 30, 2007 (DEPRECIATION)
----------------------------------------------------------------------------------------
U.S. Treasury Bond Long 482 9/07 $ 51,935,500 $ (670,220)
U.S. 10-Year
Treasury Notes Long 780 9/07 82,448,438 (609,316)
----------------------------------------------------------------------------------------
$(1,279,536)
========================================================================================
57
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of 6-30-07 (Unaudited)
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable
to Common shares unless otherwise noted.
(2) Non-income producing.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by
Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be
below investment grade.
(4) Investment is eligible for the Dividends Received Deduction.
(5) Senior Loans in which the Fund invests generally pay interest at rates which are
periodically adjusted by reference to a base short-term, floating lending rate plus an
assigned fixed rate. These floating lending rates are generally (i) the lending rate
referenced by the London Inter-Bank Offered Rate ('LIBOR'), or (ii) the prime rate offered
by one or more major United States banks.
Senior Loans may be considered restricted in that the Fund ordinarily is contractually
obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition
of a Senior Loan.
(6) Senior Loans generally are subject to mandatory and/or optional prepayment. Because of
these mandatory prepayment conditions and because there may be significant economic
incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result,
the actual remaining maturity of Senior Loans held may be substantially less than the
stated maturities shown.
(7) Position represents an unfunded Senior Loan commitment outstanding at June 30, 2007.
(8) Negative value represents unrealized depreciation on Senior Loan commitment at June 30,
2007.
(9) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(10) The Fund may designate up to 100% of its Common Stock investments to cover outstanding
Call Options Written.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as
amended. These investments may only be resold in transactions exempt from registration
which are normally those transactions with qualified institutional buyers.
ADR American Depositary Receipt.
CORTS Corporate Backed Trust Securities.
DD1 Portion purchased on a delayed delivery basis.
PPLUS PreferredPlus Trust.
SATURNS Structured Asset Trust Unit Repackaging.
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 weighted average coupon rate is not available prior to settlement. At
settlement, if still unknown, the Borrower or counterparty will provide the Fund with the
final weighted average coupon rate and maturity date.
See accompanying notes to financial statements.
58
Statement of
ASSETS AND LIABILITIES
June 30, 2007 (Unaudited)
MULTI-STRATEGY
MULTI-STRATEGY INCOME
INCOME AND AND GROWTH 2
GROWTH (JPC) (JQC)
------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $2,214,326,830 and
$3,009,898,227,
respectively) $2,214,582,435 $3,004,198,891
Cash 2,598,738 6,081,117
Unrealized appreciation on interest rate swaps 3,050,395 4,193,741
Receivables:
Dividends 3,639,833 4,418,665
Interest 9,495,806 15,155,046
Investments sold 10,438,768 11,878,521
Call options sold 728,610 158,666
Reclaims 3,993 17,681
Variation margin on futures contracts 618,625 856,938
Other assets 167,637 168,156
------------------------------------------------------------------------------------------------
Total assets 2,245,324,840 3,047,127,422
------------------------------------------------------------------------------------------------
LIABILITIES
Call options written, at value (premiums received $1,777,824
and $158,666, respectively) 1,705,810 158,666
Payable for investments purchased 140,316,048 102,751,259
Accrued expenses:
Management fees 908,044 1,229,062
Other 525,365 698,553
FundPreferred shares dividends payable 429,138 543,022
------------------------------------------------------------------------------------------------
Total liabilities 143,884,405 105,380,562
------------------------------------------------------------------------------------------------
FundPreferred shares, at liquidation value 708,000,000 965,000,000
------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $1,393,440,435 $1,976,746,860
------------------------------------------------------------------------------------------------
Common shares outstanding 99,714,628 140,495,800
------------------------------------------------------------------------------------------------
Net asset value per Common share outstanding (net assets
applicable to
Common shares, divided by Common shares outstanding) $ 13.97 $ 14.07
------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 997,146 $ 1,404,958
Paid-in surplus 1,396,122,245 1,979,517,242
Undistributed (Over-distribution of) net investment income (47,998,794) (64,972,224)
Accumulated net realized gain (loss) from investments and
derivative transactions 41,863,742 63,580,327
Net unrealized appreciation (depreciation) of investments
and derivative transactions 2,456,096 (2,783,443)
------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $1,393,440,435 $1,976,746,860
------------------------------------------------------------------------------------------------
Authorized shares:
Common Unlimited Unlimited
FundPreferred Unlimited Unlimited
------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
59
Statement of
OPERATIONS
Six months ended June 30, 2007
(Unaudited)
MULTI-STRATEGY MULTI-STRATEGY
INCOME INCOME
AND GROWTH AND GROWTH 2
(JPC) (JQC)
------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $14,817 and $47,930, respectively) 27,658$,233 $ 34,927,911
Interest 26,210,734 40,242,405
------------------------------------------------------------------------------------------------------------------------
Total investment income 53,868$,967 $ 75,170,316
------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 8,920,249 12,217,996
FundPreferred shares - auction fees 877,727 1,196,336
FundPreferred shares - dividend disbursing agent fees 15,267 29,030
Shareholders' servicing agent fees and expenses 3,586 3,890
Custodian's fees and expenses 235,208 289,915
Trustees' fees and expenses 31,090 42,460
Professional fees 44,567 54,553
Shareholders' reports - printing and mailing expenses 292,185 438,289
Stock exchange listing fees 17,718 24,970
Investor relations expense 159,872 217,084
Other expenses 26,983 33,729
------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 10,624,452 14,548,252
Custodian fee credit (10,291) (15,095)
Expense reimbursement (3,390,480) (4,737,523)
------------------------------------------------------------------------------------------------------------------------
Net expenses 7,223,681 9,795,634
------------------------------------------------------------------------------------------------------------------------
Net investment income 46,645,286 65,374,682
------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 52,579,057 79,019,363
Interest rate swaps 1,726,227 2,312,954
Foreign currencies 541 (12,884)
Futures (11,733,456) (16,644,225)
Change in net unrealized appreciation (depreciation) of:
Investments (41,507,859) (54,307,159)
Interest rate swaps (1,198,144) (1,588,518)
Foreign currencies 257 (963)
Futures (923,575) (1,279,536)
Options 72,013 --
------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (984,939) 7,499,032
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO FUNDPREFERRED SHAREHOLDERS
From and in excess of net investment income (17,670,853) (24,197,759)
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to FundPreferred shareholders (17,670,853) (24,197,759)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares from operations 27,989$,494 $ 48,675,955
========================================================================================================================
See accompanying notes to financial statements.
60
Statement of
CHANGES in NET ASSETS (Unaudited)
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND GROWTH (JPC) INCOME AND GROWTH 2 (JQC)
------------------------------- -------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
6/30/07 12/31/06 6/30/07 12/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 46,645,286 $ 102,112,868 $ 65,374,682 $ 146,092,103
Net realized gain (loss) from:
Investments 52,579,057 24,700,838 79,019,363 36,010,475
Interest rate swaps 1,726,227 5,199,947 2,312,954 7,022,965
Foreign currencies 541 -- (12,884) --
Futures (11,733,456) -- (16,644,225) --
Change in net unrealized appreciation (depreciation) of:
Investments (41,507,859) 22,163,953 (54,307,159) 28,002,882
Interest rate swaps (1,198,144) (3,391,223) (1,588,518) (4,572,392)
Foreign currencies 257 1,175 (963) 1,624
Futures (923,575) -- (1,279,536) --
Options 72,013 -- -- --
Distributions to FundPreferred shareholders :
From and in excess of net investment income (17,670,853) -- (24,197,759) --
From net investment income -- (30,872,125) -- (42,096,311)
From accumulated net realized gains -- (2,714,021) -- (3,927,167)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations 27,989,494 117,201,412 48,675,955 166,534,179
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From and in excess of net investment income (56,837,339) -- (80,082,607) --
From net investment income -- (86,742,611) -- (131,242,436)
From accumulated net realized gains -- (7,661,112) -- (12,257,268)
Tax return of capital -- (15,334,925) -- (10,571,536)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (56,837,339) (109,738,648) (80,082,607) (154,071,240)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares repurchased -- (5,457,666) -- (6,388,907)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 337,266 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions 337,266 (5,457,666) -- (6,388,907)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (28,510,579) 2,005,098 (31,406,652) 6,074,032
Net assets applicable to Common shares at the beginning of period 1,421,951,014 1,419,945,916 2,008,153,512 2,002,079,480
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $1,393,440,435 $1,421,951,014 $1,976,746,860 $2,008,153,512
------------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment
income at the end of period $ (47,998,794) $ (20,135,888) $ (64,972,224) $ (26,066,540)
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
61
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share New York Stock Exchange symbols are Nuveen Multi-Strategy Income and
Growth Fund (JPC) and Nuveen Multi-Strategy Income and Growth Fund 2 (JQC). The
Funds are registered under the Investment Company Act of 1940, as amended, as
diversified, closed-end management investment companies.
The Funds' Board of Trustees recently approved certain investment policy changes
designed to provide each Fund with greater flexibility to pursue their
investment objectives of high current income and total return. Each Fund is no
longer obligated to invest a minimum of their managed assets in preferred and/or
convertible securities. Such investments are now part of a broader strategy in
which each of the Funds will allocate their assets to maintain a strategic asset
mix of approximately 70% income-oriented debt securities and 30% equities and
equity-like securities. The Funds have been authorized to invest in direct
equity investments now including both domestic and international equities. In
addition each Fund has been authorized to increase the percentage of managed
assets that may be invested directly in equity securities. In order to implement
certain of these portfolio changes, Nuveen Asset Management (the "Adviser"), a
wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), entered into a
sub-advisory agreement with Tradewinds Global Investors, LLC ("Tradewinds").
Tradewinds will manage a portion of each Fund's equity-oriented investments.
To better reflect the Funds' more diversified approach in pursuit of their
existing investment objectives, the Funds' Board of Trustees recently approved
the changing of the Funds' names from Nuveen Preferred and Convertible Income
Fund ("JPC") and Nuveen Preferred and Convertible Income Fund 2 ("JQC") to
Nuveen Multi-Strategy Income and Growth Fund and Nuveen Multi-Strategy Income
and Growth Fund 2, respectively.
Each Fund seeks to provide high income by investing primarily in a portfolio of
preferred securities, convertible securities, high yield securities and equity
securities.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
Exchange-listed securities and instruments, other than futures, are generally
valued at the last sales price on the exchange on which such securities or
instruments are primarily traded. Securities or instruments traded on an
exchange for which there are no transactions on a given day or securities or
instruments not listed on an exchange are valued at the mean of the closing bid
and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official
Closing Price. Futures contracts are valued using the closing settlement price
or, in the absence of such a price, at the mean of the bid and asked prices.
Prices of other derivative instruments, fixed-income securities and senior loans
are generally provided by an independent pricing service approved by the Funds'
Board of Trustees. When price quotes are not readily available, the pricing
service or, in the absence of a pricing service for a particular investment, the
Board of Trustees of the Funds, or its designee, may establish fair value using
a wide variety of market data including 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 by
the pricing service or the Board of Trustee's designee. If the pricing service
is unable to supply a price for a derivative investment the Fund may use a
market quote provided by a major broker/dealer in such investments. If it is
determined that the market price for an investment or derivative instrument is
unavailable or inappropriate, the Board of Trustees of the Funds, or its
designee, may establish fair value in accordance with procedures established in
good faith by the Board of Trustees. Short-term investments are valued at
amortized cost, which approximates market value.
The senior loans in which the Funds invest are not listed on an organized
exchange and the secondary market for such investments may be less liquid
relative to markets for other fixed income securities. Consequently, the value
of senior loans, determined as described above, may differ significantly from
the value that would have been determined had there been an active market for
that senior loan.
Investment Transactions
Investment transactions are recorded on a trade date basis. Trade date for
senior loans purchased in the "primary market" is considered the date on which
the loan allocations are determined. Trade date for senior loans purchased in
the "secondary market" is the date on which the transaction is entered into.
Realized gains and losses from investment transactions are determined on the
specific identification method. Investments purchased on a when-issued/delayed
delivery basis may have extended settlement periods. Any investments so
purchased are subject to market fluctuation during this period. The Funds have
instructed the custodian to segregate assets with a current value at least equal
to the amount of the when-issued/delayed delivery purchase
62
commitments. At June 30, 2007, Multi-Strategy Income and Growth (JPC) and
Multi-Strategy Income and Growth 2 (JQC) had outstanding when issued/delayed
delivery Purchase Commitments of $27,662,463 and $33,981,307, respectively.
Investment Income
Dividend income on securities purchased and dividend expense on securities sold
short, if any, are recorded on the ex-dividend date or, for foreign securities,
when information is available. Interest income, which includes the amortization
of premiums and accretion of discounts for financial reporting purposes, is
recorded on an accrual basis. Interest income also includes paydown gains and
losses. Fee income, if any, consists primarily of amendment fees. Amendment fees
are earned as compensation for evaluating and accepting changes to the original
loan agreement and are recognized when received.
Federal Income Taxes
Each Fund is a separate taxpayer for Federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required.
Dividends and Distributions to Common Shareholders
Distributions to Common shareholders are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
corporate income tax regulations, which may differ from U.S. generally accepted
accounting principles.
The Funds make quarterly cash distributions to Common shareholders of a stated
dollar amount per share. Subject to approval and oversight by the Funds' Board
of Trustees, each Fund 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 Policy"). 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 from net
unrealized gains, if any, would be distributed from the Fund's assets and would
be treated by shareholders as a non-taxable distribution for tax purposes. If a
Fund's total return on net asset value exceeds total distributions during a
calendar year, the excess will be reflected as an increase in net asset value
per share. In the event that total distributions during a calendar year exceed a
Fund's total return on net asset value, the difference will be treated as a
return of capital for tax purposes and will reduce net asset value per share.
The final determination of the source and character of all distributions for the
fiscal year are made after the end of the fiscal year and are reflected in the
financial statements contained in the annual report as of December 31 each year.
Real Estate Investment Trust ("REIT") distributions received by the Funds are
generally comprised of ordinary income, long-term and short-term capital gains,
and a return of REIT capital. The actual character of amounts received during
the period are not known until after the fiscal year-end.
For the fiscal year ended December 31, 2006, the character of distributions to
the Funds from the REITs was as follows:
MULTI- MULTI-
STRATEGY STRATEGY
INCOME INCOME
AND AND
GROWTH GROWTH 2
(JPC) (JQC)
---------------------------------------------------------------------------------------------
Ordinary income 76.30% 78.38%
Long-term and short-term capital gains 23.61 21.50
Return of REIT capital 0.09 0.12
---------------------------------------------------------------------------------------------
63
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
For the fiscal year ended December 31, 2006, the Funds applied the actual
character of distributions reported by the REITs in which the Funds invest to
their receipts from the REITs. If a REIT held in the portfolio of investments
did not report the actual character of its distributions during the period, the
Funds treated the distributions as ordinary income.
For the six months ended June 30, 2007, the Funds applied the actual percentages
for the fiscal year ended December 31, 2006, described above, to its receipts
from the REITs and treated as income in the Statement of Operations only the
amount of ordinary income so calculated. The Funds adjust that estimated
breakdown of income type (and consequently their net investment income) as
necessary early in the following calendar year when the REITs inform their
shareholders of the actual breakdown of income type.
The actual character of distributions made by the Funds during the fiscal year
ended December 31, 2006, is reflected in the accompanying financial statements.
The distributions made by the Funds during the six months ended June 30, 2007,
are provisionally classified as being "From and in excess of net investment
income", and those distributions will be classified as being from net investment
income, net realized capital gains and/or a return of capital for tax purposes
after the fiscal year end, based upon the income type breakdown information
conveyed at the time by the REITs whose securities are held in the Funds'
portfolios. For purposes of calculating "Undistributed (Over-distribution of)
net investment income" as of June 30, 2007, the distribution amounts
provisionally classified as "From and in excess of net investment income" were
treated as being entirely from net investment income. Consequently, the
financial statements at June 30, 2007, reflect an over-distribution of net
investment income.
FundPreferred Shares
The Funds have issued and outstanding FundPreferred shares, $25,000 stated value
per share, as a means of effecting financial leverage. Each Fund's FundPreferred
shares are issued in more than one Series. The dividend rate paid by the Funds
on each Series is determined every seven days, pursuant to a dutch auction
process overseen by the auction agent, and is payable at the end of each rate
period. The number of FundPreferred shares outstanding, by Series and in total,
for each Fund is as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH (JPC) GROWTH 2 (JQC)
-------------------------------------------------------------------------------------------------------
Number of shares:
Series M 4,720 3,860
Series M2 -- 3,860
Series T 4,720 3,860
Series T2 -- 3,860
Series W 4,720 3,860
Series W2 -- 3,860
Series TH 4,720 3,860
Series TH2 -- 3,860
Series F 4,720 3,860
Series F2 4,720 3,860
-------------------------------------------------------------------------------------------------------
Total 28,320 38,600
-------------------------------------------------------------------------------------------------------
Option Transactions
Each Fund is authorized to write (sell) call options. When the Funds write a
call option, an amount equal to the net premium received (the premium less
commission) is recorded as a liability and is subsequently adjusted to the
current value of the written option until the option expires or the Funds enter
into a closing purchase transaction. When a call option expires or the Funds
enter into a closing purchase transaction, the difference between the net
premium received and any amount paid at expiration or on effecting a closing
purchase transaction, including commission, is treated as a net realized gain on
option contracts written or, if the net premium received is less than the amount
paid, as a net realized loss on option contracts written. The Funds, as writers
of a call option, bears the risk of an unfavorable change in the market value of
the index underlying the written option.
64
Foreign Currency Transactions
The Funds are authorized to engage in foreign currency exchange transactions.
The Funds may engage in foreign currency forward, swap, options and futures
contracts. To the extent that the Funds invest in contracts that are denominated
in a currency other than U.S. dollars, the Funds will be subject to currency
risk, which is the risk that an increase in the U.S. dollar relative to the
foreign currency will reduce returns or portfolio value. Generally, when the
U.S. dollar rises in value against a foreign currency, the Funds' investments
denominated in that currency will lose value because its currency is worth fewer
U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative
value. Investments and other assets and liabilities denominated in foreign
currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the
spot rate prevailing in the foreign currency exchange market at the time of
valuation. Purchases and sales of investments and dividend income denominated in
foreign currencies are translated into U.S. dollars on the respective dates of
such transactions. The gains or losses resulting from changes in foreign
exchange rates on investments and derivative transactions, if any, are included
with Net realized gain (loss) from foreign currencies and Change in net
unrealized appreciation (depreciation) of foreign currencies in the Statement of
Operations.
Interest Rate Swap Transactions
The Funds are authorized to invest in interest rate swap transactions. The
Funds' use of interest rate swap transactions is intended to mitigate the
negative impact that an increase in short-term interest rates could have on
Common share net earnings as a result of leverage. Interest rate swap
transactions involve each Fund's agreement with the counterparty to pay or
receive a fixed rate payment in exchange for the counterparty paying or
receiving a variable rate payment that is intended to approximate each Fund's
variable rate payment obligation on FundPreferred shares or any variable rate
borrowing. The payment obligation is based on the notional amount of the
interest rate swap contract. Interest rate swaps do not involve the delivery of
securities or other underlying assets or principal. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the net amount of interest payments that each Fund is to receive. Interest rate
swap positions are valued daily. Although there are economic advantages of
entering into interest rate swap transactions, there are also additional risks.
The Funds help manage the credit risks associated with interest rate swap
transactions by entering into agreements only with counterparties the Adviser
believes have the financial resources to honor their obligations and by having
the Adviser continually monitor the financial stability of the swap
counterparties.
Futures Contracts
The Funds are authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and the
value of the contract when originally entered into. Cash held by the broker to
cover initial margin requirements on open futures contracts, if any, is
recognized in the Statement of Assets and Liabilities. Additionally, the
Statement of Assets and Liabilities reflects a receivable or payable for the
variation margin when applicable.
Risks of investments in futures contracts include the possible adverse movement
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.
Short Sales
The Funds are authorized to make short sales of securities if the Funds own at
least an equal amount of such securities or securities convertible into
securities of the same issuer. To secure its obligation to deliver securities
sold short, the Funds have instructed the custodian to segregate assets in an
equivalent amount of the securities sold short or securities convertible into or
exchangeable for such securities. The Fund is obligated to pay to the party to
which the securities were sold short, dividends declared on the stock by the
issuer and records such amounts as expense in the Statement of Operations. Short
sales are valued daily and the corresponding unrealized gains or losses are
included in "Change in net unrealized appreciation (depreciation) of
investments." At June 30, 2007, there were no outstanding short sales in either
Fund.
Repurchase Agreements
In connection with transactions in repurchase agreements, it is the Funds'
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
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
accrued interest, at all times. If the seller defaults, and the fair value of
the collateral declines, realization of the collateral may be delayed or
limited.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which the Fund overdraws its account at the custodian bank.
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 expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
On February 3, 2006, the Funds' Board of Trustees approved an open market share
repurchase program as part of a broad, ongoing effort designed to support the
market prices of the Funds' common shares. Under the terms of the program, each
Fund may repurchase up to 10% of its outstanding Common shares.
Transactions in Common shares were as follows:
MULTI-STRATEGY INCOME AND MULTI-STRATEGY INCOME AND
GROWTH (JPC) GROWTH 2 (JQC)
-------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
6/30/07 12/31/06 6/30/07 12/31/06
------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders due to reinvestments of
distributions 23,651 -- -- --
------------------------------------------------------------------------------------------------------------------------------
Shares repurchased -- (432,200) -- (511,200)
------------------------------------------------------------------------------------------------------------------------------
Average price per share repurchased -- $12.63 -- $12.50
------------------------------------------------------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended June 30, 2007, were as
follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME INCOME
AND GROWTH AND GROWTH 2
(JPC) (JQC)
-------------------------------------------------------------------------------------------------------
Purchases 879,202,356 1,112,912,828
Sales and maturities 1,098,343,190 1,526,033,581
-------------------------------------------------------------------------------------------------------
66
Transactions in call options written during the six months ended June 30, 2007,
were as follows:
MULTI-STRATEGY INCOME MULTI-STRATEGY INCOME
AND GROWTH (JPC) AND GROWTH 2 (JQC)
---------------------------------- ----------------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
---------------------------------------------------------------------------------------------------------------------------------
Outstanding, beginning of period -- $ -- -- $ --
Call options written 681 1,777,824 48 158,666
Call options terminated in closing purchase
transactions -- -- -- --
Call options expired -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Outstanding, end of period 681 $1,777,824 48 $158,666
---------------------------------------------------------------------------------------------------------------------------------
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis based on the
information currently available to the Funds. Differences between amounts for
financial statement and federal income tax purposes are primarily due to the
treatment of paydown gains and losses, recognition of premium amortization,
recognition of income on REIT investments, timing differences in the recognition
of income and timing differences in recognizing certain gains and losses on
investment transactions. To the extent that differences arise that are permanent
in nature, such amounts are reclassified within the capital accounts on the
Statement of Assets and Liabilities presented in the annual report, based on
their federal tax basis treatment; temporary differences do not require
reclassification. Temporary and permanent differences do not impact the net
asset values of the Funds.
At June 30, 2007, the cost of investments was as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH (JPC) GROWTH 2 (JQC)
-------------------------------------------------------------------------------------------------------
Cost of investments $2,219,964,739 $3,016,064,452
-------------------------------------------------------------------------------------------------------
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2007, were as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH GROWTH 2
(JPC) (JQC)
-------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 43,879,890 $ 57,184,900
Depreciation (49,262,194) (69,050,461)
-------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (5,382,304) $ (11,865,561)
-------------------------------------------------------------------------------------------------------
The tax components of undistributed net ordinary income and net long-term
capital gains at December 31, 2006, the Funds' last tax year end, were as
follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH GROWTH 2
(JPC) (JQC)
-------------------------------------------------------------------------------------------------------
Undistributed net ordinary income * $ -- $ --
Undistributed net long-term capital gains -- --
-------------------------------------------------------------------------------------------------------
* Net ordinary income consists of net taxable income derived from dividends,
interest, and net short-term capital gains, if any.
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax character of distributions paid during the Funds' last tax year ended
December 31, 2006, was designated for purposes of the dividends paid deduction
as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH GROWTH 2
(JPC) (JQC)
-------------------------------------------------------------------------------------------------------
Distributions from net ordinary income * $118,807,924 $174,646,948
Distributions from net long-term capital gains 9,007,830 14,650,766
Tax return of capital 15,334,925 10,571,536
-------------------------------------------------------------------------------------------------------
* Net ordinary income consists of net taxable income derived from dividends,
interest, and net short-term capital gains, if any.
Calculation of certain of the amounts presented above (namely, undistributed net
ordinary income for tax purposes) involves the application of complex aspects of
the Internal Revenue Code to certain securities held by the Funds. In
calculating the amount of taxable income derived from these securities,
management made assumptions as to the correct tax treatment of certain of those
securities and made estimates about the tax characteristics of income received
from those securities, based on information currently available to the Funds.
The use of these assumptions and estimates will not affect the qualification of
the Funds as regulated investment companies under Subchapter M of the Internal
Revenue Code, nor is it expected that these assumptions and estimates will be
used in computing taxable income for purposes of preparing the federal and state
income and excise tax returns.
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components -- a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual 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 based upon the
average daily Managed Assets of each Fund as follows:
AVERAGE DAILY MANAGED ASSETS FUND-LEVEL FEE RATE
---------------------------------------------------------------------------------------------
For the first $500 million .7000%
For the next $500 million .6750
For the next $500 million .6500
For the next $500 million .6250
For Managed Assets over $2 billion .6000
---------------------------------------------------------------------------------------------
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the tables below. As
of June 30, 2007, the complex-level fee rate was .1828%.
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL(1) EFFECTIVE RATE AT BREAKPOINT LEVEL
------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
------------------------------------------------------------------------------------------------
68
Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL(1) EFFECTIVE RATE AT BREAKPOINT LEVEL
------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
------------------------------------------------------------------------------------------------
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Adviser is
responsible for the overall strategy and asset allocation decisions. During the
period the Adviser either had or entered into Sub-Advisory Agreements with
Spectrum Asset Management, Inc. ("Spectrum"), Froley, Revy Investment Co., Inc.
("Froley, Revy"), Symphony Asset Management, LLC ("Symphony") and Tradewinds.
Spectrum manages the portion of the Funds' investment portfolios allocated to
preferred securities. Symphony manages the portion of the Funds' investment
portfolios allocated to debt securities and certain equity investments. As of
June 30, 2007, Froley, Revy no longer served as a sub-adviser to the Funds.
Froley, Revy previously managed the portion of the Funds' investment portfolios
allocated to convertible securities. Tradewinds manages the portion of the
Funds' investment portfolios allocated to global equities. Each sub-adviser is
compensated for its services to the Funds from the management fees paid to the
Adviser. Spectrum also receives compensation on certain portfolio transactions
for providing brokerage services to the Funds.
The Funds pay no compensation directly to those of their Trustees who are
affiliated with the Adviser or to its Officers, all of whom receive remuneration
for their services to the Funds from the Adviser or its affiliates. The Board of
Trustees has adopted a deferred compensation plan for independent Trustees that
enables Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
For the first eight years of Multi-Strategy Income and Growth's (JPC)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily Managed Assets, for fees and expenses in the amounts and for the
time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
-----------------------------------------------------------------------------------------------------
2003 * .32% 2008 .32%
2004 .32 2009 .24
2005 .32 2010 .16
2006 .32 2011 .08
2007 .32
-----------------------------------------------------------------------------------------------------
* From the commencement of operations.
The Adviser has not agreed to reimburse Multi-Strategy Income and Growth (JPC)
for any portion of its fees and expenses beyond March 31, 2011.
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
For the first eight years of Multi-Strategy Income and Growth 2's (JQC)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily Managed Assets, for fees and expenses in the amounts and for the
time periods set forth below:
YEAR ENDING YEAR ENDING
JUNE 30, JUNE 30,
-----------------------------------------------------------------------------------------------------
2003 * .32% 2008 .32%
2004 .32 2009 .24
2005 .32 2010 .16
2006 .32 2011 .08
2007 .32
-----------------------------------------------------------------------------------------------------
* From the commencement of operations.
The Adviser has not agreed to reimburse Multi-Strategy Income and Growth 2 (JQC)
for any portion of its fees and expenses beyond June 30, 2011.
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with an investor
group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners,
LLC is a private equity investment firm based in Chicago, Illinois. The investor
group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank
and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will
be indirect "affiliated persons" (as that term is defined in the Investment
Company Act of 1940) of the Funds. One important implication of this is that the
Funds will not be able to buy or sell securities to or from Merrill Lynch, but
the portfolio management teams and Fund management do not expect that this will
significantly impact the ability of the Funds to pursue their investment
objectives and policies. Under the terms of the merger, each outstanding share
of Nuveen Investments' common stock (other than dissenting shares) will be
converted into the right to receive a specified amount of cash, without
interest. The merger is expected to be completed by the end of the year, subject
to customary conditions, including obtaining the approval of Nuveen Investments
shareholders, obtaining necessary fund and client consents sufficient to satisfy
the terms of the Merger Agreement, and expiration of certain regulatory waiting
periods. The obligations of Madison Dearborn Partners, LLC to consummate the
merger are not conditioned on its obtaining financing.
The consummation of the merger will be deemed to be an "assignment" (as defined
in the 1940 Act) of the investment management agreement between each Fund and
the Adviser, and will result in the automatic termination of each Fund's
agreement. Prior to the consummation of the merger, it is anticipated that the
Board of Trustees of each Fund will consider a new investment management
agreement with the Adviser. If approved by the Board, the new agreement would be
presented to the Fund's shareholders for approval, and, if so approved by
shareholders, would take effect upon consummation of the merger. There can be no
assurance that the merger described above will be consummated as contemplated or
that necessary shareholder approvals will be obtained.
6. COMMITMENTS
Pursuant to the terms of certain of the variable rate senior loan agreements,
the Funds may have unfunded senior loan commitments. Each 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. At June 30, 2007, both Multi-Strategy Income and Growth (JPC) and
Multi-Strategy Income and Growth 2 (JQC) had unfunded senior loan commitments of
$2,162,146.
7. SENIOR LOAN PARTICIPATION COMMITMENTS
With respect to the senior loans held in each Fund's portfolio, the Funds may:
1) invest in assignments; 2) act as a participant in primary lending syndicates;
or 3) invest in participations. If the Fund purchases a participation of a
senior loan interest, the Fund 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 Fund 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. At June 30, 2007, there were
no such outstanding participation commitments in either Fund.
70
8. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
Effective June 29, 2007, the Funds adopted Financial Accounting Standards Board
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance regarding how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Management of
the Funds has concluded that there are no significant uncertain tax positions
that require recognition in the Funds' financial statements. Consequently, the
adoption of FIN 48 had no impact on the net assets or results of operations of
the Funds.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of June 30, 2007, the Funds do not believe the adoption of SFAS
No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
71
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
----------------------------------------------------------------
Distributions
from Net Distributions
Beginning Investment from Capital
Common Net Income to Gains to
Share Net Realized/ FundPreferred FundPreferred
Net Asset Investment Unrealized Share- Share-
Value Income(a) Gain (Loss) holders+ holders+ Total
----------------------------------------------------------------------------------------------------
MULTI-STRATEGY INCOME
AND GROWTH (JPC)
----------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007(d) $14.26 $ .47 $(.01) $(.18)**** $ -- $ .28
2006 14.18 1.02 .50 (.31) (.03) 1.18
2005 15.32 1.13 (.74) (.22) -- .17
8/01/04-12/31/04 14.73 .52 .85 (.04) (.01) 1.32
Year Ended 7/31:
2004 14.12 1.25 .71 (.08) -- 1.88
2003(b) 14.33 .30 (.02) (.02) -- .26
MULTI-STRATEGY INCOME
AND GROWTH 2 (JQC)
----------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007(d) 14.29 .47 .05 (.17)**** -- .35
2006 14.20 1.04 .48 (.30) (.03) 1.19
2005 15.18 1.12 (.70) (.21) (.01) .20
8/01/04-12/31/04 14.33 .51 .90 (.05) -- 1.36
Year Ended 7/31:
2004 13.83 1.16 .73 (.08) -- 1.81
2003(c) 14.33 .04 (.53) -- -- (.49)
----------------------------------------------------------------------------------------------------
Less Distributions
-------------------------------------------
Net Tax Offering Costs
Investment Capital Return of and Ending
Income to Gains to Capital to FundPreferred Common
Common Common Common Share Share Ending
Share- Share- Share- Underwriting Net Asset Market
holders holders holders Total Discounts Value Value
----------------------------------------------------------------------------------------------------
MULTI-STRATEGY INCOME
AND GROWTH (JPC)
----------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007(d) $ (.57)**** $ -- $ -- $ (.57) $ -- $13.97 $13.23
2006 (.87) (.08) (.15) (1.10) -- 14.26 14.29
2005 (1.15) (.16) -- (1.31) -- 14.18 11.97
8/01/04-12/31/04 (.50) (.23) -- (.73) -- 15.32 14.33
Year Ended 7/31:
2004 (1.22) (.05) -- (1.27) -- 14.73 13.95
2003(b) (.30) -- -- (.30) (.17) 14.12 14.57
MULTI-STRATEGY INCOME
AND GROWTH 2 (JQC)
----------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007(d) (.57)**** -- -- (.57) -- 14.07 13.27
2006 (.93) (.09) (.08) (1.10) -- 14.29 14.11
2005 (1.09) (.09) -- (1.18) -- 14.20 12.11
8/01/04-12/31/04 (.49) (.02) -- (.51) -- 15.18 13.87
Year Ended 7/31:
2004 (1.17) -- -- (1.17) (.14) 14.33 13.54
2003(c) -- -- -- -- (.01) 13.83 14.69
----------------------------------------------------------------------------------------------------
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** Represents distributions paid "From and in excess of net investment
income" for the six months ended June 30, 2007.
+ The amounts shown are based on Common share equivalents.
++ - Ratios do not reflect the effect of dividend payments to FundPreferred
shareholders.
- Income ratios reflect income earned on assets attributable to
FundPreferred shares.
- Each ratio includes the effect of the dividend expense on securities sold
short as follows:
Ratio of Dividend Expense on Securities
Sold Short to Average Net Assets
Applicable to Common Shares
---------------------------------------
MULTI-STRATEGY INCOME AND GROWTH
(JPC)
Year Ended 12/31:
2007(d) --%
2006 --
2005 .01
8/01/04-12/31/04 .04*
Year Ended 7/31:
2004 .03
2003(b) --
MULTI-STRATEGY INCOME AND GROWTH 2
(JQC)
Year Ended 12/31:
2007(d) --%
2006 --
2005 .01
8/01/04-12/31/04 .05*
Year Ended 7/31:
2004 .03
2003(c) --
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) For the period March 26, 2003 (commencement of operations) through July
31, 2003.
(c) For the period June 25, 2003 (commencement of operations) through July 31,
2003.
(d) For the six months ended June 30, 2007.
72
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Total Returns Before Credit/Reimbursement After Credit/Reimbursement***
----------------- ----------------------------- -----------------------------
Based
on Ending Net
Common Assets
Based Share Applicable to
on Net Common Net Net Portfolio
Market Asset Shares Investment Investment Turnover
Value** Value** (000) Expenses++ Income++ Expenses++ Income++ Rate
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
(3.51)% 1.97% $1,393,440 1.50%* 6.10%* 1.02%* 6.58%* 55%
29.81 8.71 1,421,951 1.49 6.80 1.00 7.28 72
(7.63) 1.32 1,419,946 1.50 7.25 1.03 7.72 37
8.06 9.07 1,533,722 1.51* 7.66* 1.04* 8.13* 13
4.34 13.44 1,474,983 1.53 7.90 1.05 8.37 19
(.89) .58 1,412,983 1.29* 5.67* .87* 6.09* 21
------------------------------------------------------------------------------------------------------------------
(1.98)% 2.46% 1,976,747 1.45* 6.05* .98* 6.52* 44
26.71 8.73 2,008,154 1.44 6.90 .96 7.37 77
(4.40) 1.41 2,002,079 1.46 7.25 .99 7.72 34
6.20 9.59 2,140,563 1.47* 7.81* 1.00* 8.28* 13
.10 12.25 2,021,258 1.47 7.51 1.00 7.98 27
(2.07) (3.49) 1,950,622 .97* 2.86* .65* 3.18* 5
------------------------------------------------------------------------------------------------------------------
FundPreferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Per Coverage
(000) Share Per Share
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
$708,000 $25,000 $74,203
708,000 25,000 75,210
708,000 25,000 75,139
708,000 25,000 79,157
708,000 25,000 77,083
708,000 25,000 74,893
------------------------------------------------------------------------------------------------------------------
965,000 25,000 76,211
965,000 25,000 77,025
965,000 25,000 76,867
965,000 25,000 80,455
965,000 25,000 77,364
-- -- --
---
See accompanying notes to financial statements.
73
Annual Investment
Management Agreement
APPROVAL PROCESS
The Board Members are responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. In connection with recent changes to the investment mandates of
the Fund, the Board Members, including the Independent Board Members, approved
Tradewinds Global Investors, LLC ("Tradewinds") as an additional sub-adviser to
the Funds and an amended sub-advisory agreement with Symphony Asset Management
LLC ("Symphony") at a meeting held on November 14, 2006. Such agreements were
also subject to shareholder approval. At the annual review meeting held on May
21, 2007 (the "May Meeting"), the Board Members of the Funds, including the
Independent Board Members, unanimously approved the continuance of the
Investment Management Agreement between each Fund (a "Fund") and Nuveen Asset
Management ("NAM" or the "Adviser"), and the Sub-Advisory Agreements between NAM
and Spectrum Asset Management, Inc. ("Spectrum"), Symphony and Tradewinds,
respectively. Spectrum, Symphony and Tradewinds are each a "Sub-Adviser," and
NAM and each Sub-Adviser are each a "Fund Adviser." The foregoing Investment
Management Agreements with NAM and Sub-Advisory Agreements with the respective
Sub-Adviser are hereafter referred to as "Original Investment Management
Agreements" and "Original Sub-Advisory Agreements," respectively.
Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent
company of NAM, entered into a merger agreement providing for the acquisition of
Nuveen by Windy City Investments, Inc., a corporation formed by investors led by
Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the
"Transaction"). Each Original Investment Management Agreement and Original
Sub-Advisory Agreement, as required by Section 15 of the Investment Company Act
of 1940 (the "1940 Act") provides for its automatic termination in the event of
its "assignment" (as defined in the 1940 Act). Any change in control of the
adviser is deemed to be an assignment. The consummation of the Transaction will
result in a change of control of NAM as well as its affiliated sub-advisers and
therefore cause the automatic termination of each Original Investment Management
Agreement and Original Sub-Advisory Agreement, as required by the 1940 Act.
Accordingly, in anticipation of the Transaction, at a meeting held on July 31,
2007 (the "July Meeting"), the Board Members, including the Independent Board
Members, unanimously approved new Investment Management Agreements (the "New
Investment Management Agreements") with NAM on behalf of each Fund and new
Sub-Advisory Agreements (the "New Sub-Advisory Agreements") between NAM and the
respective Sub-Adviser on behalf of each Fund to take effect immediately after
the Transaction or shareholder approval of the new advisory contracts, whichever
is later. The 1940 Act also requires that each New Investment Management
Agreement and New Sub-Advisory Agreement be approved by the respective Fund's
shareholders in order for it to become effective. Accordingly, to ensure
continuity of advisory services, the Board Members, including the Independent
Board Members, unanimously approved Interim Investment Management Agreements and
Interim Sub-Advisory Agreements to take effect upon the closing of the
Transaction if shareholders have not yet approved the New Investment Management
Agreements and New Sub-Advisory Agreements.
Because the information provided and considerations made at the prior reviews
continue to be relevant with respect to the evaluation of the New Investment
Management Agreements and New Sub-Advisory Agreements, the Board considered the
foregoing as part of its deliberations of the New Investment Management
Agreements and New Sub-Advisory Agreements. Accordingly, as indicated, the
discussions immediately below outline the materials and information presented to
the Board in connection with the Board's prior reviews and the analysis
undertaken and the conclusions reached by Board Members when determining to
continue the Original Investment Management Agreements and Original Sub-Advisory
Agreements. In this regard, although Tradewinds did not begin to serve as a
Sub-Adviser to the Funds by the time of the May Meeting, Tradewinds served as
sub-adviser to other Nuveen funds. Accordingly, the information and
considerations regarding Tradewinds at the annual review continue to be relevant
with respect to the evaluation of Tradewinds and supplement the information
provided at the prior reviews.
74
I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS AND ORIGINAL
SUB-ADVISORY AGREEMENTS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Advisers and the performance of
the Funds (as applicable). At each of its quarterly meetings, the Board reviewed
investment performance (as applicable) and various matters relating to the
operations of the Funds and other Nuveen funds, including the compliance
program, shareholder services, valuation, custody, distribution and other
information relating to the nature, extent and quality of services provided by
the Fund Adviser. Between the regularly scheduled quarterly meetings, the Board
Members received information on particular matters as the need arose.
In preparation for their considerations at the May Meeting, the Independent
Board Members received extensive materials, well in advance of the meeting,
which outlined or are related to, among other things:
- the nature, extent and quality of services provided by the Fund Adviser;
- the organization and business operations of the Fund Adviser, including the
responsibilities of various departments and key personnel;
- each Fund's past performance as well as the Fund's performance compared to
funds with similar investment objectives based on data and information
provided by an independent third party and to recognized and/or customized
benchmarks (as appropriate);
- the profitability of the Fund Adviser and certain industry profitability
analyses for unaffiliated advisers;
- the expenses of the Fund Adviser in providing the various services;
- the advisory fees and total expense ratios of each Fund, including comparisons
of such fees and expenses with those of comparable, unaffiliated funds based
on information and data provided by an independent third party (the "Peer
Universe") as well as compared to a subset of funds within the Peer Universe
(the "Peer Group") of the respective Fund (as applicable);
- the advisory fees the Fund Adviser assesses to other types of investment
products or clients;
- the soft dollar practices of the Fund Adviser, if any; and
- from independent legal counsel, a legal memorandum describing among other
things, applicable laws, regulations and duties in reviewing and approving
advisory contracts.
At the May Meeting, NAM made a presentation to, and responded to questions from,
the Board. At the May Meeting, the Independent Board Members met privately with
their legal counsel to review the Board's duties in reviewing advisory contracts
and considering the renewal of the advisory contracts (which include the
sub-advisory contracts). The Independent Board Members, in consultation with
independent counsel, reviewed the factors set out in judicial decisions and
Securities and Exchange Commission ("SEC") directives relating to the renewal of
advisory contracts. As outlined in more detail below, the Board Members
considered all factors they believed relevant with respect to each Fund,
including, but not limited to, the following: (a) the nature, extent and quality
of the services to be provided by the Fund Adviser; (b) the investment
performance of the Fund and the Fund Adviser (as applicable); (c) the costs of
the services to be provided and profits to be realized by the Fund Adviser and
its affiliates; (d) the extent to which economies of scale would be realized;
and (e) whether fee levels reflect those economies of scale for the benefit of
the Fund's investors. In addition, as noted, the Board Members met regularly
throughout the year to oversee the Funds. In evaluating the advisory contracts,
the Board Members also relied upon their knowledge of the respective Fund
Adviser, its services and the Funds resulting from their meetings and other
interactions throughout the year. It is with this background that the Board
Members considered each advisory contract.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering the renewal of the Original Investment Management Agreements and
Original Sub-Advisory Agreements, the Board Members considered the nature,
extent and quality of the respective Fund Adviser's services. The Board Members
reviewed materials outlining, among other things, the Fund Adviser's
organization and
75
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
business; the types of services that the Fund Adviser or its affiliates provide
or are expected to provide to the Funds; the performance record of the Fund (as
described in further detail below); and at the annual review, any initiatives
Nuveen had taken for the applicable fund product line. As noted, at the annual
review, the Board Members were already familiar with the organization,
operations and personnel of each respective Fund Adviser due to the Board
Members' experience in governing the respective Funds and working with such Fund
Advisers on matters relating to the Funds. At the May Meeting, the Board Members
also recognized NAM's investment in additional qualified personnel throughout
the various groups in the organization and recommended to NAM that it continue
to review staffing needs as necessary. The Board Members recognized NAM's
investment of resources and efforts to continue to enhance and refine its
investment processes.
With respect to the Sub-Advisers, the Board Members also received and reviewed
an evaluation of each Sub-Adviser from NAM at the annual review. Such evaluation
outlined, among other things, the respective Sub-Adviser's organizational
history, client base, product mix, investment team and any changes thereto,
investment process and any changes to its investment strategy, and the Funds'
investment objectives and performance (as applicable). At the May Meeting, the
Board Members noted that NAM recommended the renewal of the applicable Original
Sub-Advisory Agreements and considered the basis for such recommendations and
any qualifications in connection therewith. In its review of the Sub-Advisers,
the Board Members also considered, among other things, the experience of the
investment personnel, the quality of the respective Sub-Adviser's investment
processes in making portfolio management decisions and any additional
refinements and improvements adopted to the portfolio management processes and
Fund performance. During the last year, the Board Members noted that they
visited several sub-advisers meeting their key investment and business
personnel. In this regard, the Board Members visited Tradewinds in February,
2007. The Board Members noted such Sub-Adviser's experienced investment team.
In addition to advisory services, the Independent Board Members considered the
quality of administrative and non-advisory services provided by NAM and noted
that NAM and its affiliates provide the Funds with a wide variety of services
and officers and other personnel as are necessary for the operations of the
Funds, including:
- product management;
- fund administration;
- oversight by shareholder services and other fund service providers;
- administration of Board relations;
- regulatory and portfolio compliance; and
- legal support.
As the Funds operate in a highly regulated industry and given the importance of
compliance, the Board Members considered, in particular, NAM's compliance
activities for the Funds and enhancements thereto. In this regard, the Board
Members recognized the quality of NAM's compliance team. The Board Members also
considered NAM's ability and procedures to monitor the respective Sub-Adviser's
performance, business practices and compliance policies and procedures. The
Board Members further noted NAM's negotiations with other service providers and
the corresponding reduction in certain service providers' fees at the May
Meeting.
In addition to the foregoing services, the Board Members also noted the
additional services that NAM or its affiliates provide to Nuveen's closed-end
funds, including, in particular, its secondary market support activities. The
Board Members recognized Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include:
- maintaining shareholder communications;
- providing advertising for the Nuveen closed-end funds;
- maintaining its closed-end fund website;
76
- maintaining continual contact with financial advisers;
- providing educational symposia;
- conducting research with investors and financial analysis regarding closed-end
funds; and
- evaluating secondary market performance.
With respect to the Nuveen closed-end funds that utilize leverage through the
issuance of preferred shares ("Preferred Shares"), the Board Members noted
Nuveen's continued support for the holders of Preferred Shares by, among other
things:
- maintaining an in-house trading desk;
- maintaining a product manager for the Preferred Shares;
- developing distribution for Preferred Shares with new market participants;
- maintaining an orderly auction process;
- managing leverage and risk management of leverage; and
- maintaining systems necessary to test compliance with rating agency criteria.
With respect to the Sub-Advisers, the Board Members noted that the sub-advisory
agreements were essentially agreements for portfolio management services only
and the respective Sub-Adviser was not expected to supply other significant
administrative services to the Funds.
Based on their review, the Board Members found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the Funds
under the respective Original Investment Management Agreement or Original
Sub-Advisory Agreement, as applicable, were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND FUND ADVISERS
At the May Meeting, the Board considered the investment performance for each
Fund, including the Fund's historic performance as well as its performance
compared to funds with similar investment objectives (the "Performance Peer
Group") based on data provided by an independent third party (as described
below). The Board Members also reviewed the respective Fund's historic
performance compared to recognized and/or customized benchmarks (as applicable).
In evaluating the performance information during the annual review at the May
Meeting, in certain instances, the Board Members noted that the closest
Performance Peer Group for a fund may not adequately reflect such fund's
investment objectives and strategies, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
These Performance Peer Groups include those for the Funds and for: the Nuveen
Diversified Dividend and Income Fund; the Nuveen Tax-Advantaged Floating Rate
Fund; the Nuveen Real Estate Income Fund; the Nuveen Equity Premium Advantage
Fund; the Nuveen Equity Premium Income Fund; the Nuveen Equity Premium
Opportunity Fund; and the Nuveen Equity Premium and Growth Fund. In addition,
the Board Members noted the recent changes to the investment mandates of the
Funds thereby limiting some of the usefulness of reviewing the Funds' past
performance.
The Board Members reviewed performance information including, among other
things, total return information compared with the respective Fund's Performance
Peer Group as well as recognized and/or customized benchmarks (as appropriate)
for the one-, three- and five-year periods (as applicable) ending December 31,
2006. This information supplemented the performance information provided to the
Board at each of its quarterly meetings. Based on their review at the May
Meeting, the Board Members determined that the respective Fund's investment
performance over time had been satisfactory.
77
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
C. FEES, EXPENSES AND PROFITABILITY
1. Fees and Expenses
During the annual review, the Board evaluated the management fees and expenses
of each Fund reviewing, among other things, such Fund's advisory fees (net and
gross management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to the
gross management fees (before waivers), net management fees (after waivers)
and total expense ratios (before and after waivers) of comparable funds in the
Peer Universe and the Peer Group. In reviewing the fee schedule for a Fund,
the Board Members considered the fund-level and complex-wide breakpoint
schedules (described in further detail below) and any fee waivers and
reimbursements provided by Nuveen. The Board Members further reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis. In
certain cases, due to the small number of peers in the Peer Universe, the Peer
Universe and Peer Group had significant overlap or even consisted entirely of
the same unaffiliated funds. In reviewing the comparisons of fee and expense
information, the Board Members recognized that in certain cases, the size of a
fund relative to peers, the small size and odd composition of the Peer Group
(including differences in objectives and strategies), expense anomalies,
timing of information used or other factors impacting the comparisons thereby
limited some of the usefulness of the comparative data. The Board Members also
considered the differences in the use of leverage. The Board Members also
noted the limited Peer Groups available for the Nuveen funds with multi-
sleeves of investments (e.g., the Funds, the Nuveen Diversified Dividend and
Income Fund and the Nuveen Tax-Advantaged Total Return Strategy Fund). Based
on their review of the fee and expense information provided, the Board Members
determined that each Fund's net total expense ratio was within an acceptable
range compared to peers.
2. Comparisons with the Fees of Other Clients
At the annual review, the Board Members further reviewed data comparing the
advisory fees of NAM with fees NAM charges to other clients. Such clients
include NAM's separately managed accounts and funds that are not offered by
Nuveen but are sub-advised by one of Nuveen's investment management teams. In
general, the advisory fees charged for separate accounts are somewhat lower
than the advisory fees assessed to the Funds. The Board Members considered the
differences in the product types, including, but not limited to, the services
provided, the structure and operations, product distribution and costs
thereof, portfolio investment policies, investor profiles, account sizes and
regulatory requirements. The Board Members noted, in particular, that the
range of services provided to the Funds (as discussed above) is much more
extensive than that provided to separately managed accounts. As described in
further detail above, such additional services include, but are not limited
to: product management, fund administration, oversight of third party service
providers, administration of Board relations, and legal support. The Board
Members noted that the Funds operate in a highly regulated industry requiring
extensive compliance functions compared to other investment products. Given
the inherent differences in the products, particularly the extensive services
provided to the Funds, the Board Members believe such facts justify the
different levels of fees.
With respect to the Sub-Advisers, in considering the fees of a Sub-Adviser,
the Board Members also considered the pricing schedule or fees that the
Sub-Adviser charges for similar investment management services for other fund
sponsors or clients, as applicable. With respect to Symphony, the Board
Members also reviewed the generally higher fees for equity and taxable fixed
income hedge funds and hedge accounts it manages, which include a performance
fee. With respect to sub-advisers unaffiliated with Nuveen, such as Spectrum,
the Board Members noted that such fees were the result of arm's-length
negotiations.
3. Profitability of Fund Advisers
In conjunction with its review of fees, the Board Members also considered the
profitability of Nuveen for its advisory activities (which incorporated
Nuveen's wholly-owned affiliated sub-advisers) and its financial condition. At
the annual review, the Board Members reviewed the revenues and expenses of
Nuveen's advisory activities for the last three years, the allocation
methodology used in preparing the profitability data as well as the 2006
Annual
78
Report for Nuveen. The Board Members noted this information supplemented the
profitability information requested and received during the year to help keep
them apprised of developments affecting profitability (such as changes in fee
waivers and expense reimbursement commitments). In this regard, the Board
Members noted the enhanced dialogue and information regarding profitability
with NAM during the year, including more frequent meetings and updates from
Nuveen's corporate finance group. The Board Members considered Nuveen's
profitability compared with other fund sponsors prepared by three independent
third party service providers as well as comparisons of the revenues, expenses
and profit margins of various unaffiliated management firms with similar
amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Board Members recognized the subjective nature
of determining profitability which may be affected by numerous factors
including the allocation of expenses. Further, the Board Members recognized
the difficulties in making comparisons as the profitability of other advisers
generally is not publicly available and the profitability information that is
available for certain advisers or management firms may not be representative
of the industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations.
Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology
at the annual review and assumptions for allocating expenses across product
lines to determine profitability. Last year, the Board Members also designated
an Independent Board Member as a point person for the Board to review the
methodology determinations during the year and any refinements thereto, which
relevant information produced from such process was reported to the full Board.
In reviewing profitability, the Board Members recognized Nuveen's increased
investment in its fund business. Based on its review, the Board Members
concluded that Nuveen's level of profitability for its advisory activities was
reasonable in light of the services provided. With respect to sub-advisers
unaffiliated with Nuveen, such as Spectrum, the Board Members also considered
the Sub-Adviser's revenues from serving as Sub-Adviser to the Funds, expenses
(including the basis for allocating expenses) and profitability margins (pre-and
post-tax). Based on their review, the Board Members were satisfied that the
respective Fund Adviser's level of profitability was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Board Members also
considered other amounts paid to a Fund Adviser by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser
and its affiliates receive, or are expected to receive, that are directly
attributable to the management of the Funds, if any. See Section E below for
additional information on indirect benefits a Fund Adviser may receive as a
result of its relationship with the Funds. Based on their review of the overall
fee arrangement of each Fund, the Board Members determined that the advisory
fees and expenses of the Funds were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Board Members recognized the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure the shareholders share in these benefits, the Board Members
reviewed and considered the breakpoints in the advisory fee schedules that
reduce advisory fees. In addition to advisory fee breakpoints, the Board also
approved a complex-wide fee arrangement in 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Board Members noted that the
last complex-wide asset level breakpoint for the complex-wide fee schedule was
at $91 billion and that the Board Members anticipated further review and/or
negotiations prior to the assets of the Nuveen complex reaching such threshold.
Based on their review, the Board Members concluded that the breakpoint schedule
and complex-wide fee arrangement were acceptable and desirable in providing
benefits from economies of scale to shareholders, subject to further evaluation
of the complex-wide fee schedule as assets in the complex increase. See Section
II, Paragraph D -- "Approval of the New Investment Management Agreements and New
Sub-Advisory Agreements -- Economies of Scale and Whether Fee Levels Reflect
These Economies of Scale" for information regarding subsequent modifications to
the complex-wide fee.
79
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits the respective Fund Adviser or its affiliates may receive as a result of
its relationship with each Fund. In this regard, the Board Members considered
the revenues received by affiliates of NAM for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Board Members considered whether the Fund Adviser
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to the Fund Adviser in managing the assets of the Funds and other
clients. With respect to NAM, the Board Members noted that NAM does not
currently have any soft dollar arrangements; however, to the extent certain bona
fide agency transactions that occur on markets that traditionally trade on a
principal basis and riskless principal transactions are considered as generating
"commissions," NAM intends to comply with the applicable safe harbor provisions.
With respect to Tradewinds, the Board Members considered that such Sub-Adviser
may benefit from its soft dollar arrangements pursuant to which it receives
research from brokers that execute a Fund's portfolio transactions. For this
Sub-Adviser, the Board Members noted that such Sub-Adviser's profitability may
be lower if it were required to pay for this research with hard dollars. With
respect to Spectrum, the Board noted that such Sub-Adviser does not pay excess
brokerage commissions in order to receive research services but may from time to
time receive research generally provided to a broker's clients. With respect to
Symphony, the Board also considered that such Sub-Adviser currently does not
enter into soft dollar arrangements; however, it has adopted a soft dollar
policy in the event it does so in the future.
Based on their review, the Board Members concluded that any indirect benefits
received by a Fund Adviser as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Board Members did not identify any single factor discussed previously as
all-important or controlling in their considerations to continue an advisory
contract. The Board Members, including the Independent Board Members,
unanimously concluded that the terms of the Original Investment Management and
Original Sub-Advisory Agreements are fair and reasonable, that the respective
Fund Adviser's fees are reasonable in light of the services provided to each
Fund and that the Original Investment Management Agreements and the Original
Sub-Advisory Agreements be renewed.
II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS AND NEW SUB-ADVISORY
AGREEMENTS
Following the May Meeting, the Board Members were advised of the potential
Transaction. As noted above, the completion of the Transaction would terminate
each of the Original Investment Management Agreements and Original Sub-Advisory
Agreements. Accordingly, at the July Meeting, the Board of each Fund, including
the Independent Board Members, unanimously approved the New Investment
Management Agreements and New Sub-Advisory Agreements on behalf of the
respective Funds. Leading up to the July Meeting, the Board Members had several
meetings and deliberations with and without Nuveen management present, and with
the advice of legal counsel, regarding the proposed Transaction as outlined
below.
On June 8, 2007, the Board Members held a special telephonic meeting to discuss
the proposed Transaction. At that meeting, the Board Members established a
special ad hoc committee comprised solely of Independent Board Members to focus
on the Transaction and to keep the Independent Board Members updated with
developments regarding the Transaction. On June 15, 2007, the ad hoc committee
discussed with representatives of NAM the Transaction and modifications to the
complex-wide fee schedule that would generate additional fee savings at
specified levels of complex-wide asset growth. Following the foregoing meetings
and several subsequent telephonic conferences among Independent Board Members
and independent counsel, and between Independent Board Members and
representatives of Nuveen, the Board met on June 18, 2007 to further discuss the
proposed Transaction. Immediately prior to and then again during the June 18,
2007 meeting, the Independent Board
80
Members met privately with their independent legal counsel. At that meeting, the
Board met with representatives of MDP, of Goldman Sachs, Nuveen's financial
adviser in the Transaction, and of the Nuveen Board to discuss, among other
things, the history and structure of MDP, the terms of the proposed Transaction
(including the financing terms), and MDP's general plans and intentions with
respect to Nuveen (including with respect to management, employees, and future
growth prospects). On July 9, 2007, the Board also met to be updated on the
Transaction as part of a special telephonic Board meeting. The Board Members
were further updated at a special in-person Board meeting held on July 19, 2007
(one Independent Board Member participated telephonically). Subsequently, on
July 27, 2007, the ad hoc committee held a telephonic conference with
representatives of Nuveen and MDP to further discuss, among other things, the
Transaction, the financing of the Transaction, retention and incentive plans for
key employees, the effect of regulatory restrictions on transactions with
affiliates after the Transaction, and current volatile market conditions and
their impact on the Transaction.
In connection with their review of the New Investment Management Agreements and
New Sub-Advisory Agreements, the Independent Board Members, through their
independent legal counsel, also requested in writing and received additional
information regarding the proposed Transaction and its impact on the provision
of services by NAM and its affiliates.
The Independent Board Members received, well in advance of the July Meeting,
materials which outlined, among other things:
- the structure and terms of the Transaction, including MDP's co-investor
entities and their expected ownership interests, and the financing
arrangements that will exist for Nuveen following the closing of the
Transaction;
- the strategic plan for Nuveen following the Transaction;
- the governance structure for Nuveen following the Transaction;
- any anticipated changes in the operations of the Nuveen funds following the
Transaction, including changes to NAM's and Nuveen's day-to-day management,
infrastructure and ability to provide advisory, distribution or other
applicable services to the Funds;
- any changes to senior management or key personnel who work on Fund related
matters (including portfolio management, investment oversight, and
legal/compliance) and any retention or incentive arrangements for such
persons;
- any anticipated effect on each Fund's expense ratio (including advisory fees)
following the Transaction;
- any benefits or undue burdens imposed on the Funds as a result of the
Transaction;
- any legal issues for the Funds as a result of the Transaction;
- the nature, quality and extent of services expected to be provided to the
Funds following the Transaction, changes to any existing services and policies
affecting the Funds, and cost-cutting efforts, if any, that may impact such
services or policies;
- any conflicts of interest that may arise for Nuveen or MDP with respect to the
Funds;
- the costs associated with obtaining necessary shareholder approvals and who
would bear those costs; and
- from legal counsel, a memorandum describing the applicable laws, regulations
and duties in approving advisory contracts, including, in particular, with
respect to a change of control.
Immediately preceding the July Meeting, representatives of MDP met with the
Board to further respond to questions regarding the Transaction. After the
meeting with MDP, the Independent Board Members met with independent legal
counsel in executive session. At the July Meeting, Nuveen also made a
presentation and responded to questions. Following the presentations and
discussions of the materials presented to the Board, the Independent Board
Members met again in executive session with their counsel. As outlined in more
detail below, the Independent Board Members considered all factors they believed
relevant with respect to each Fund, including the impact that the Transaction
could be expected to have on the following: (a) the nature, extent and quality
of services to be provided; (b) the investment performance of the Funds; (c) the
costs of the services and profits to be realized by Nuveen and its affiliates;
(d) the extent to which economies of scale would be realized; and (e) whether
fee levels
81
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
reflect those economies of scale for the benefit of investors. As noted above,
during the past year, the Board Members had completed their annual review of the
respective Original Investment Management Agreements and Original Sub-Advisory
Agreements and many of the factors considered at such reviews were applicable to
their evaluation of the New Investment Management Agreements and New
Sub-Advisory Agreements. Accordingly, in evaluating such agreements, the Board
Members relied upon their knowledge and experience with the Fund Advisers and
considered the information received and their evaluations and conclusions drawn
at the reviews. While the Board reviewed many Nuveen funds at the July Meeting,
the Independent Board Members evaluated all information available to them on a
fund-by-fund basis, and their determinations were made separately in respect of
each Fund.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, quality and extent of the services expected to be
provided by the Fund Adviser under the applicable New Investment Management
Agreement or New Sub-Advisory Agreement, the Independent Board Members
considered, among other things, the expected impact, if any, of the Transaction
on the operations, facilities, organization and personnel of NAM and each
Sub-Adviser (if applicable); the potential implications of regulatory
restrictions on the Funds following the Transaction; the ability of NAM and its
affiliates to perform their duties after the Transaction; and any anticipated
changes to the current investment and other practices of the Funds.
The Board noted that the terms of each New Investment Management Agreement,
including the fees payable thereunder, are substantially identical to those of
the Original Investment Management Agreement relating to the same Fund (with
both reflecting reductions to fee levels in the complex-wide fee schedule for
complex-wide assets in excess of $80 billion that have an effective date of
August 20, 2007). Similarly, the terms of each New Sub-Advisory Agreement,
including fees payable thereunder, are substantially identical to those of the
respective Original Sub-Advisory Agreement relating to the same Fund. The Board
considered that the services to be provided and the standard of care under the
New Investment Advisory Agreements and the New Sub-Advisory Agreements are the
same as the corresponding original agreements. The Board Members noted the
Transaction does not alter the allocation of responsibilities between the
Adviser and Sub-Advisers. The respective Sub-Adviser will continue to furnish an
investment program in respect of, make investment decisions for and place all
orders for the purchase and sale of securities for the portion of each Fund's
investment portfolio allocated by the Adviser to the respective Sub-Adviser, all
on behalf of the applicable Fund and subject to oversight of the Board and the
Adviser. The Board Members further noted that key personnel of the Adviser or
Sub-Adviser who have responsibility for the Funds in each area, including
portfolio management, investment oversight, fund management, fund operations,
product management, legal/compliance and board support functions, are expected
to be the same following the Transaction. The Board Members considered and are
familiar with the qualifications, skills and experience of such personnel. The
Board also considered certain information regarding any anticipated retention or
incentive plans designed to retain key personnel. Further, the Board Members
noted that no changes to Nuveen's infrastructure (including at the affiliated
sub-adviser level) or operations as a result of the Transaction were anticipated
other than potential enhancements as a result of an expected increase in the
level of investment in such infrastructure and personnel. The Board noted MDP's
representations that it does not plan to have a direct role in the management of
Nuveen, appointing new management personnel, or directly impacting individual
staffing decisions. The Board Members also noted that there were not any planned
"cost cutting" measures that could be expected to reduce the nature, extent or
quality of services. After consideration of the foregoing, the Board Members
concluded that no diminution in the nature, quality and extent of services
provided to the Funds and their shareholders by the respective Fund Advisers is
expected.
In addition to the above, the Board Members considered potential changes in the
operations of each Fund. In this regard, the Board Members considered the
potential effect of regulatory restrictions on the Funds' transactions with
future affiliated persons. During their deliberations, it was noted that, after
the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership
interest in Nuveen at a level that will make Merrill Lynch an affiliated person
82
of Nuveen. The Board Members recognized that applicable law would generally
prohibit the Funds from engaging in securities transactions with Merrill Lynch
as principal, and would also impose restrictions on using Merrill Lynch for
agency transactions. They recognized that having MDP and Merrill Lynch as
affiliates may restrict the Nuveen funds' ability to invest in securities of
issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if
not bought directly from MDP or Merrill Lynch as principal. They also recognized
that various regulations may require the Nuveen funds to apply investment
limitations on a combined basis with affiliates of Merrill Lynch. The Board
Members considered information provided by NAM regarding the potential impact on
the Nuveen funds' operations as a result of these regulatory restrictions. The
Board Members considered, in particular, the Nuveen funds that may be impacted
most by the restricted access to Merrill Lynch, including: municipal funds
(particularly certain state-specific funds), senior loan funds, taxable fixed
income funds, preferred security funds and funds that heavily use derivatives.
The Board Members considered such funds' historic use of Merrill Lynch as
principal in their transactions and information provided by NAM regarding the
expected impact resulting from Merrill Lynch's affiliation with Nuveen and
available measures that could be taken to minimize such impact. NAM informed the
Board Members that, although difficult to determine with certainty, its
management did not believe that MDP's or Merrill Lynch's status as an affiliate
of Nuveen would have a material adverse effect on any Nuveen fund's ability to
pursue its investment objectives and policies.
In addition to the regulatory restrictions considered by the Board, the Board
Members also considered potential conflicts of interest that could arise between
the Nuveen funds and various parties to the Transaction and discussed possible
ways of addressing such conflicts.
Based on its review along with its considerations regarding services at the
annual review, the Board concluded that the Transaction was not expected to
adversely affect the nature, quality or extent of services provided by the
respective Fund Adviser and that the expected nature, quality and extent of such
services supported approval of the New Investment Management Agreements and New
Sub-Advisory Agreements.
B. PERFORMANCE OF THE FUNDS
With respect to the performance of the Funds, the Board considered that the
portfolio management personnel responsible for the management of the Funds'
portfolios were expected to continue to manage the portfolios following the
completion of the Transaction.
In addition, the Board Members recently reviewed Fund performance at the May
Meeting, as described above, and determined such Funds' performance was
satisfactory or better. The Board Members further noted that the investment
policies and strategies were not expected to change as a result of the
Transaction.
In light of the foregoing factors, along with the prior findings regarding
performance at the annual review, the Board concluded that its findings with
respect to performance supported approval of the New Investment Management
Agreements and New Sub-Advisory Agreements.
C. FEES, EXPENSES AND PROFITABILITY
As described in more detail above, during the annual review, the Board Members
considered, among other things, the management fees and expenses of the Funds,
the breakpoint schedules, and comparisons of such fees and expenses with peers.
At the annual review, the Board Members determined that the respective Fund's
advisory fees and expenses were reasonable. In evaluating the profitability of
the Fund Adviser under the New Investment Management Agreements and New
Sub-Advisory Agreements, the Board Members considered their conclusions at their
prior reviews and whether the management fees or other expenses would change as
a result of the Transaction. As described above, the investment management fee
for NAM is composed of two components -- a fund-level component and complex-wide
level component. The fee schedule under the New Investment Management Agreements
to be paid to NAM is identical to that under the Original Investment Management
Agreements, including the modified complex-wide fee schedule. As noted above,
the Board recently approved a modified complex-wide fee schedule that would
generate additional fee savings on complex-wide assets above $80 billion. The
modifications have an effective date of August 20, 2007 and are part of the
Original Investment
83
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
Management Agreements. Accordingly, the terms of the complex-wide component
under the New Investment Management Agreements are the same as under the
Original Investment Management Agreements. The Board Members also noted that
Nuveen has committed for a period of two years from the date of closing of the
Transaction that it will not increase gross management fees for any Nuveen fund
and will not reduce voluntary expense reimbursement levels for any Nuveen fund
from their currently scheduled prospective levels. Based on the information
provided, the Board Members did not expect that overall Fund expenses would
increase as a result of the Transaction.
In addition, the Board Members considered that additional fund launches were
anticipated after the Transaction which would result in an increase in total
assets under management in the complex and a corresponding decrease in overall
management fees under the complex-wide fee schedule. Taking into consideration
the Board's prior evaluation of fees and expenses at the annual renewal, and the
modification to the complex-wide fee schedule, the Board determined that the
management fees and expenses were reasonable.
While it is difficult to predict with any degree of certainty the impact of the
Transaction on Nuveen's profitability for its advisory activities (which
includes its affiliated sub-advisers), at the recent annual review, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities was reasonable. During the year, the Board Members had noted the
enhanced dialogue regarding profitability and the appointment of an Independent
Board Member as a point person to review methodology determinations and
refinements in calculating profitability. Given their considerations at the
annual review and the modifications to the complex-wide fee schedule, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities continues to be reasonable.
With respect to the Sub-Advisers, the fees paid under the New Sub-Advisory
Agreements are the same as the Original Sub-Advisory Agreements. With respect to
sub-advisers unaffiliated with Nuveen, such as Spectrum, the Board Members
considered the Sub-Adviser's revenues from serving as Sub-Adviser to the Funds,
expenses (including the basis for allocating expenses) and profitability margins
(pre- and post-tax) at the annual review. The Transaction is not anticipated to
affect the profitability of such Sub-Adviser. At the annual review, the Board
Members were satisfied that the respective Fund Adviser's level of profitability
was reasonable in light of the services provided. Taking into account the
Board's prior evaluation and the fact that sub-advisory fees will not change,
the Board Members were satisfied that the respective Fund Advisers' levels of
profitability were reasonable in light of the services provided.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
The Board Members have been cognizant of economies of scale and the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure that shareholders share in the benefits derived from
economies of scale, the Board adopted the complex-wide fee arrangement in 2004.
At the May Meeting, the Board Members reviewed the complex-wide fee arrangements
and noted that additional negotiations may be necessary or appropriate as the
assets in the complex approached the $91 billion threshold. In light of this
assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting,
the ad hoc committee met with representatives of Nuveen to further discuss
modifications to the complex-wide fee schedule that would generate additional
savings for shareholders as the assets of the complex grow. The proposed terms
for the complex-wide fee schedule are expressed in terms of targeted cumulative
savings at specified levels of complex-wide assets, rather than in terms of
targeted marginal complex-wide fee rates. Under the modified schedule, the
schedule would generate additional fee savings beginning at complex-wide assets
of $80 billion in order to achieve targeted cumulative annual savings at $91
billion of $28 million on a complex-wide level (approximately $0.6 million
higher than those generated under the then current schedule) and generate
additional fee savings for asset growth above complex-wide assets of $91 billion
in order to achieve targeted annual savings at $125 billion of assets of
approximately $50 million on a complex-wide level (approximately $2.2 million
higher annually than that generated under the then current schedule). At the
July Meeting, the Board approved the modified complex-wide fee schedule for the
Original Investment Management Agreements and these same terms will apply to the
New Investment Management Agreements.
84
Accordingly, the Board Members believe that the breakpoint schedules and revised
complex-wide fee schedule are appropriate and desirable in ensuring that
shareholders participate in the benefits derived from economies of scale.
E. INDIRECT BENEFITS
During their recent annual review, the Board Members considered any indirect
benefits that the Fund Adviser may receive as a result of its relationship with
the Funds, as described above. As the policies and operations of the Fund
Advisers are not anticipated to change significantly after the Transaction, such
indirect benefits should remain after the Transaction. The Board Members further
considered any additional indirect benefits to be received by the Fund Adviser
or its affiliates after the Transaction. The Board Members noted that other than
benefits from its ownership interest in Nuveen and indirect benefits from fee
revenues paid by the Funds under the management agreements and other
Board-approved relationships, it was currently not expected that MDP or its
affiliates would derive any benefit from the Funds as a result of the
Transaction or transact any business with or on behalf of the Funds (other than
perhaps potential Fund acquisitions, in secondary market transactions, of
securities issued by MDP portfolio companies); or that Merrill Lynch or its
affiliates would derive any benefits from the Funds as a result of the
Transaction (noting that, indeed, Merrill Lynch would stand to experience the
discontinuation of principal transaction activity with the Nuveen funds and
likely would experience a noticeable reduction in the volume of agency
transactions with the Nuveen funds).
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following with respect to the Funds:
- Nuveen would rely on the provisions of Section 15(f) of the 1940 Act. Section
15(f) provides, in substance, that when a sale of a controlling interest in an
investment adviser occurs, the investment adviser or any of its affiliated
persons may receive any amount or benefit in connection with the sale so long
as (i) during the three-year period following the consummation of a
transaction, at least 75% of the investment company's board of directors must
not be "interested persons" (as defined in the 1940 Act) of the investment
adviser or predecessor adviser and (ii) an "unfair burden" (as defined in the
1940 Act, including any interpretations or no-action letters of the SEC) must
not be imposed on the investment company as a result of the transaction
relating to the sale of such interest, or any express or implied terms,
conditions or understanding applicable thereto. In this regard, to help ensure
that an unfair burden is not imposed on the Nuveen funds, Nuveen has committed
for a period of two years from the date of the closing of the Transaction (i)
not to increase gross management fees for any Nuveen fund; (ii) not to reduce
voluntary expense reimbursement levels for any Nuveen fund from their
currently scheduled prospective levels during that period; (iii) that no
Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use Merrill
Lynch as a broker with respect to portfolio transactions done on an agency
basis, except as may be approved in the future by the Compliance Committee of
the Board; and (iv) that each adviser/portfolio team affiliated with Nuveen
shall not cause the Funds (or sleeves thereof) and other Nuveen funds that the
team manages, as a whole, to enter into portfolio transactions with or through
the other minority owners of Nuveen, on either a principal or an agency basis,
to a significantly greater extent than both what one would expect an
investment team to use such firm in the normal course of business, and what
such team has historically done, without prior Board or Compliance Committee
approval (excluding the impact of proportionally increasing the use of such
other "minority owners" to fill the void necessitated by not being able to use
Merrill Lynch).
- The Funds would not incur any costs in seeking the necessary shareholder
approvals for the New Investment Management Agreements or New Sub-Advisory
Agreements (except for any costs attributed to seeking shareholder approvals
of Fund specific matters unrelated to the Transaction, such as approval of
Board Members or changes to investment policies, in which case a portion of
such costs will be borne by the applicable Funds).
- The reputation, financial strength and resources of MDP.
- The long-term investment philosophy of MDP and anticipated plans to grow
Nuveen's business to the benefit of the Nuveen funds.
- The benefits to the Nuveen funds as a result of the Transaction including: (i)
as a private company, Nuveen may have more flexibility in making additional
investments in its business; (ii) as a private company, Nuveen may be
85
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
better able to structure compensation packages to attract and retain talented
personnel; (iii) as certain of Nuveen's distribution partners are expected to
be equity or debt investors in Nuveen, Nuveen may be able to take advantage of
new or enhanced distribution arrangements with such partners; and (iv) MDP's
experience, capabilities and resources that may help Nuveen identify and
acquire investment teams or firms and finance such acquisitions.
- The historic premium and discount levels at which the shares of the Nuveen
funds have traded at specified dates with particular focus on the premiums and
discounts after the announcement of the Transaction, taking into consideration
recent volatile market conditions and steps or initiatives considered or
undertaken by NAM to address discount levels.
G. CONCLUSION
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including the Independent Board
Members, unanimously concluded that the terms of the New Investment Management
Agreements and New Sub-Advisory Agreements are fair and reasonable, that the
fees therein are reasonable in light of the services to be provided to each Fund
and that the New Investment Management Agreements and New Sub-Advisory
Agreements should be approved and recommended to shareholders.
III. APPROVAL OF INTERIM CONTRACTS
As noted above, at the July Meeting, the Board Members, including the
Independent Board Members, unanimously approved the Interim Investment
Management Agreements and Interim Sub-Advisory Agreements. If necessary to
assure continuity of advisory services, the Interim Investment Management
Agreements and Interim Sub-Advisory Agreements will take effect upon the closing
of the Transaction if shareholders have not yet approved the New Investment
Management Agreements and New Sub-Advisory Agreements. The terms of each Interim
Investment Management Agreement and Interim Sub-Advisory Agreement are
substantially identical to those of the corresponding Original Investment
Management Agreement and New Investment Management Agreement and the Original
Sub-Advisory Agreement and New Sub-Advisory Agreement, respectively, except for
certain term and escrow provisions. In light of the foregoing, the Board
Members, including the Independent Board Members, unanimously determined that
the scope and quality of services to be provided to the Funds under the
respective Interim Investment Management Agreement and Interim Sub-Advisory
Agreement are at least equivalent to the scope and quality of services provided
under the applicable Original Investment Management Agreement and Original
Sub-Advisory Agreement.
86
Reinvest Automatically
EASILY and CONVENIENTLY
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains 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 tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or 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 month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and 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 dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
87
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
88
Glossary of
TERMS USED in this REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
Market Yield (also known as Dividend Yield or Current Yield): Market yield is
based on the Fund's current annualized monthly distribution divided by the
Fund's current market price. The Fund's monthly distributions to its
shareholders may be comprised of ordinary income, net realized capital gains
and, if at the end of the calendar year the Fund's cumulative net ordinary
income and net realized gains are less than the amount of the Fund's
distributions, a tax return of capital.
Net Asset Value (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares issued
in order to leverage the Fund) from its total assets and then dividing the
remainder by the number of shares outstanding. Fund NAVs are calculated at the
end of each business day.
89
NOTES
90
OTHER USEFUL INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
most recent 12-month period ended June 30, 2006, and (iii) a description of the
policies and procedures that the Funds used to determine how to vote proxies
relating to portfolio securities are available without charge, upon request, by
calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
Reference Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
Board of Trustees
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred
stock in the future at such times and in such amounts as is deemed
advisable. No shares were repurchased during the period covered by
this report. Any future repurchases will be reported to shareholders
in the next annual or semi-annual report.
91
Nuveen Investments:
-----------------------------------------------------------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Managing $172 billion in assets, as of June 30, 2007, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
ESA-F-0607D
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
Share prices
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Investor education
Interactive planning tools
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of this report that
includes the disclosure required by this paragraph, based on their
evaluation of the controls and procedures required by Rule 30a-3(b)
under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or
15d-15(b) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Multi-Strategy Income and Growth Fund
By (Signature and Title)* /s/ Kevin J. McCarthy
---------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: September 6, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
---------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: September 6, 2007
By (Signature and Title)* /s/ Stephen D. Foy
---------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: September 6, 2007
* Print the name and title of each signing officer under his or her signature.