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
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(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: December 31, 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
Annual Report
DECEMBER 31, 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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account.
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 twelve-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 Portfolio Managers' Comments, the Distribution and Share Price Information,
and the Performance Overview sections of this report.
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
February 15, 2008
Portfolio Managers' COMMENTS
NUVEEN INVESTMENTS CLOSED-END FUNDS JPC, JQC
These Funds have been managed since their inceptions in 2003 by Nuveen Asset
Management (NAM), which has responsibility for determining and overseeing the
Funds' asset allocations. NAM has selected a team of sub-advisers to manage the
investments within each of the selected asset classes. These subadvisers include
specialists from Spectrum Asset Management, Inc. (Spectrum), Symphony Asset
Management, LLC (Symphony), and Tradewinds Global Investors, LLC (Tradewinds).
Symphony and Tradewinds are affiliates of Nuveen Investments.
Spectrum, an affiliate of Principal Capital(SM), manages preferred securities
positions within the income-oriented 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.
Symphony has primary responsibility for investments in convertible, high yield
and senior loan securities, and for domestic and international equity
investments. The team at Symphony managing the convertible, high yield and
senior loan portions of each portfolio is led by Gunther Stein and Lenny Mason,
who have more than 25 years of combined investment management experience. The
Symphony team responsible for managing domestic equity investments is led by
Praveen Gottipalli and David Wang, while the group overseeing the Funds'
international equity exposure is led by Eric Olson. On a combined basis, these
three equity portfolio managers have more than 25 years of investment management
experience.
Tradewinds began managing a portion of the Funds' assets invested in global
equities in the spring of 2007. The Tradewinds team is led by Dave Iben, who has
more than 25 years of investment management experience.
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Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary 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.
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Here representatives from Spectrum, Symphony and Tradewinds talk about their
management strategies and the performance of both Funds for the twelve-month
period ended December 31, 2007.
WHAT WERE THE GENERAL ECONOMIC CONDITIONS AND MARKET TRENDS DURING THE ANNUAL
REPORTING PERIOD ENDED DECEMBER 31, 2007?
During the first part of the period, equities generally performed well as
favorable corporate earnings and export-driven economic growth were sufficient
to offset some growing anxiety over the deteriorating housing and mortgage
markets. The second half of the year was dominated by concerns about the impact
of possible sub-prime mortgage defaults and fears of a recession, especially as
the impact began to spread beyond mortgage lenders to interna-
4
tional and domestic money center banks and other financial institutions. When
data began to show the potential for a severely weakening economy, the Federal
Reserve cut the widely followed short-term fed funds rate by a half a percentage
point in September, by another quarter of a percentage point in October and yet
another quarter point in December. (On January 22 and 29, 2008, after the close
of this reporting period, the Federal Reserve cut the fed funds rate by a
combined 1.25%, bringing the rate to 3.00%.)
During 2007, the volatility caused by sub-prime mortgage concerns severely
impacted the preferred securities market. Over 70% of preferred securities come
from issuers in the financial service sector, and the fourth quarter of 2007 was
the worst quarter on record for the $25 par preferred market, These securities,
as well as $1000 par capital market preferreds, experienced heavy selling
(exacerbated by year-end tax loss selling) late in 2007 as the Merrill Lynch
Preferred Stock Hybrid Securities Index fell by more than 9% in the fourth
quarter alone. In addition, there was a large calendar of new issuance late in
the calendar year. Net preferred issuance totaled about $40 billion in the
fourth quarter, with $17.7 billion in December alone. That was greater than the
net issuance for any of the past four entire years, and expanded the size of the
total preferred market by roughly 10%. This new supply forced a re-pricing of
the entire market, pulling down the prices of all existing issues.
The U.S. equity markets also suffered through significant turbulence during the
year, as concerns about the credit markets, a slowing economy and rising
commodity prices (particularly oil) weighed on investor sentiment. Additionally,
recent inflation reports have not been favorable, further raising investor
concerns about the equity market's prospects. Nevertheless, several leading
market indicators did finish 2007 with positive returns, including the S&P 500
Index (up 5.49%) and the Russell 3000 Index (up 5.14%).
Global equity markets generally registered positive returns in 2007, despite
increased volatility in the second half of the year. Many international equity
benchmarks outpaced U.S. stocks. For example, the MSCI World Index returned
12.41% for 2007, with emerging market countries such as Brazil, India and China
leading the field. Overall, investors grappled with uncertain credit markets,
U.S. housing and mortgage-related concerns, increased commodity prices, and, in
the latter half of the year, apprehension over a U.S. recession. In general,
large-cap and growth oriented stocks performed considerably better than
small-cap and value stocks.
In the debt markets, the senior loan and high yield markets were robust for the
first six months of the year, with record levels of new issuance, tightening
spreads, and record inflows into the leveraged loan asset class. Sentiment began
to shift during the second quarter of 2007 as liquidity issues driven by
mortgage market concerns and a large pipeline of new institutional loans created
a supply/demand imbalance that resulted in downward pressure on bank loans, high
yield bonds, and many convertibles. The CSFB Leveraged Loan Index, which had
generated 56 consecutive months of positive returns, declined - 3.32% in July,
its largest monthly loss since inception in 1992. It was only the ninth time the
Index had moved more than one point in a month. Even more unusual, this
volatility was unrelated to defaults or credit fundamentals and was primarily
supply/demand driven.
5
The first six months of the year were characterized by the record level of new
loan issuance from mergers and acquisition and leveraged buy-out activity, and a
strong demand for new loans fueled by the creation of Collateralized Loan
Obligations (CLOs) and Collateralized Debt Obligations (CDOs). The last six
months of 2007 were sharply different. As investors became concerned about
negative headlines in the asset backed and mortgage markets, CLO creation slowed
significantly. This left a large overhang of new loans in the Wall Street
pipeline with fewer buyers, which put continued pressure on prices during this
volatile period. Adding to this pressure towards the end of the period was the
growing perception that sustained weakness in the housing sector and instability
in the financial markets would negatively impact the U.S. economy, particularly
among consumer-sensitive businesses such as homebuilders and retailers. These
factors continued to put pressure on bank loans, high yield bonds, and
convertible bonds through the end of 2007.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING
THIS PERIOD?
In late 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. These
changes included:
- eliminating any requirement to invest in preferred and/or convertible
securities;
- expanding direct equity investments to include international as well as
domestic equities; and
- adding Tradewinds as a sub-adviser for a portion of each Fund's
equity-oriented investments.
To better reflect the Funds' new, more diversified investment parameters, the
Funds changed their names to Nuveen Multi-Strategy Income and Growth Fund (JPC)
and Nuveen Multi-Strategy Income and Growth Fund 2 (JQC). The Funds continued to
be comprised approximately 70% of income-oriented investments and 30% of
equity-oriented investments, although the strategic asset mix within those
categories began to change to reflect their expanded investment policies.
In addition, both Funds began moving away from a relatively fixed, stand alone
convertible securities 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 a sub-adviser that specialized in
convertible securities investments.
Within their preferred securities allocations, both Funds had to contend with a
relatively heavy number of calls during this period. Overall, we strove to
maintain an approximate 60/40 portfolio mix between the $25 par (retail driven)
sector and the $1000 par capital securities (institutionally driven) sector. We
started 2007 buying mainly $25 par securities, but six months later we were
purchasing more capital securities as the relative attractiveness between the
two sectors had shifted.
6
While we did have some opportunities to buy attractively priced preferred stock
issued by certain U.S. government agencies, we were disappointed by what we
considered to be the relatively weak call protection associated with these
issues. We felt that too many non-traditional preferred securities buyers were
willing to give up call protection at the very time that the issuers had no
choice but to provide it if buyers insisted. As a result, when the new issues
were announced the secondary markets experienced large price declines. We were
able to buy some agency issues at discounts, which we believed would benefit the
Funds' earnings and returns in the future. We also had one of our busiest days
on the last trading day of 2007 when the availability of some deep discounts
allowed the Funds to buy at bargain prices.
For income-oriented investments, Symphony continued to use fundamental analysis
to select senior loans, high yield bonds, and convertible bonds that we believed
offered attractive risk-adjusted return potential. During this period, we
avoided the senior loans of most automotive part suppliers as well as smaller
homebuilders and land developers, even though many loans in these sectors traded
at discounts throughout the year. We also avoided many smaller loans that were
done to finance leveraged buyouts. We didn't believe that there was sufficient
incremental spread in many small loans to compensate for potential illiquidity
and volatility if earnings of the companies issuing them should become
challenged. Throughout the year we focused on adding quality new-issue senior
loans to the portfolios, which were often priced at a discount to par and were
structured with strong covenant protection. We also continued to avoid the vast
majority of second lien loans. Similar to smaller loans, we didn't believe that
second lien loans offered sufficient additional yield to compensate investors
for potentially increased volatility and lower recovery rates.
The core domestic equities managed by Symphony used both quantitative and
qualitative methods to evaluate securities. The quantitative screening process
served as the starting point for the decision making process. The qualitative
process then provided a systematic way of researching companies from a broad
prospective, ensuring the stocks selected for the portfolio were attractive in
all important respects.
For the international equities managed by Tradewinds, our basic investment
philosophy focused on buying good or improving business franchises around the
globe whose securities were selling below their intrinsic value. In 2007, we
found that the best value opportunities often were in the securities of those
businesses that were most leveraged to the growth of the global economy. We
liked the materials, food, agriculture and energy sectors, all of which benefit
from increased global demand. Conversely, we were rewarded for not holding
financial and retail stocks in the developed markets, especially during the
second half of the year, as these sectors experienced sizable corrections.
Corporate and high yield bonds remained unattractive to us during most of the
year. Writing covered calls remained an attractive way to enhance cash flow,
especially in a period of higher implied volatility, higher interest rates and
higher valuations for common stocks.
7
HOW DID THE FUNDS PERFORM OVER THIS TWELVE-MONTH PERIOD?
The performance of JPC and JQC, as well a comparative benchmark, is presented in
the accompanying table.
Annualized Total Returns on Net Asset Value
For the twelve-month period ended 12/31/07
JPC -5.71%
JQC -5.34%
Comparative Benchmark(1) -3.69%
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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 shareholders may have to pay
on Fund distributions or upon the sale of Fund shares. For additional
information, see the individual Performance Overview for your Fund in this
report.
--------------------------------------------------------------------------------
For the twelve months ended December 31, 2007, the total return on net asset
value for both Funds underperformed the unleveraged, unmanaged comparative
benchmark. In a very challenging and unforgiving market environment, both Funds'
underperformance relative to the benchmark was in large part due to the Funds'
use of financial leverage. Over this past year, leverage tended to exacerbate
the price declines suffered by the Fund's holdings. However, leverage is a
strategy that the Funds have used since their inceptions, and we believe it has
and will continue to benefit shareholders over time by providing opportunities
for enhanced distributions and total return.
--------------------------------------------------------------------------------
1. 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.
--------------------------------------------------------------------------------
Looking more specifically at the various components of both Fund's portfolios,
the heavy selling of financial services sector securities in the third and
fourth quarters of 2007 hurt the performance of the Funds' allocations to
preferred securities. As noted, the fourth quarter was the worst quarter on
record for $25 par securities, and the Funds' exposure to this retail-oriented
market hurt their absolute and relative performance as the $25 par market
significantly underperformed the institutionally oriented $1000 par market.
Among our debt market investments, both Funds saw certain names contribute
positively to the Funds' performance during the first half of the year. The
second half of the period was better characterized by broad declines across the
entire asset class, as bank loans sold off significantly during the final months
of the period. There were no individual company-specific events that negatively
impacted performance. Rather, the decline was characteristic of the credit
market in general, which were influenced heavily by technical trends late in the
year. Default rates and fundamental factors remained relatively favorable
throughout 2007 compared to historical levels.
Although both Funds' loan positions suffered as a result of the broad-based
sell-off, the market dislocation also provided an opportunity to buy loans in
good companies with strong covenants at attractive prices, as well as selected
high yield and convertible bond issues.
The addition of direct exposure to core domestic equities, managed by Symphony,
enhanced total returns during the period. On an absolute basis, the energy,
materials and industrial sectors were the largest contributors to performance.
The strongest individual contributors to performance were information technology
companies --Apple, Inc., MEMC Electronic Materials & Mastercard, Inc., oil & gas
drilling and production company National-Oilwell Varco Inc. and crop nutrient
producer/distributor Mosaic Company. Relative to the
8
Russell 3000 Index, stock selection was the main driver of
outperformance -- contributing positively across every sector with the exception
of consumer staples and information technology. An underweight to financials
also significantly added to the strategy's relative return.
Our international equity holdings in the energy, consumer staples and materials
sectors were the largest contributors to positive performance in this asset
class. In particular, our overweight exposure to the materials sector, relative
to the MSCI World Index, enhanced returns. The strongest individual contributors
to performance were domestic coal producer Peabody Energy Corporation, global
agricultural equipment supplier Agco Corporation, and gold mining companies
Barrick Gold Corporation and Lihir Gold Limited. Our global focus allowed us to
participate in several fast growing foreign markets and benefit from the
declining value of the U.S. dollar. Our covered call writing strategy generated
positive cash flow, which enhanced the Funds' performance.
Among the Funds' worst equity performers for the year were pulp and paper
producer AbitibiBowater, Japanese consumer finance company Takefuji Corporation,
and gold mining companies NovaGold Resources Inc. and Gold Fields Limited.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
During February 2008, after the close of this reporting period, regularly
scheduled auctions for the FundPreferred(R) shares issued by your Fund began
attracting more shares for sale than offers to buy. This meant that these
auctions "failed to clear," and that many FundPreferred shareholders who wanted
to sell their shares in these auctions were unable to do so. It is important to
note this decline in liquidity did not lower the credit quality of these shares,
and that FundPreferred shareholders unable to sell their shares received
distributions at the "maximum rate" calculated in accordance with the
pre-established terms of the FundPreferred stock. At the time this report was
prepared, the Funds' managers could not predict when future auctions might
succeed in attracting sufficient buyers for the shares offered. The Funds'
managers are working diligently to develop mechanisms designed to improve the
liquidity of the FundPreferred shares, but at present there is no assurance that
those efforts will succeed.
These developments do not affect the management or investment policies of the
Funds. However, one implication of these auction failures for common
shareholders is that the Funds' cost of leverage will be higher than it
otherwise would have been had the auctions been successful. As a result, the
Funds' future common share earnings may be marginally lower than they otherwise
might have been.
9
Common Share
Distribution and Share Price
INFORMATION
On March 1, 2007, Nuveen Investments announced that these Funds would move from
a monthly to a quarterly common share distribution schedule. The Funds' last
monthly distributions were paid on April 2, 2007, and first quarterly
distributions were paid on July 2, 2007.
The Funds employ financial leverage through the issuance of FundPreferred
shares. Financial leverage provides the potential for higher earnings (net
investment income), total returns and distributions over time, but - as noted
earlier - also increases the variability of common shareholders' net asset value
per share in response to changing market conditions. Financial leverage
contributed positively to the Funds' common share net earnings over the
reporting period, but detracted from the Funds' overall common share total
return.
Each Fund has a managed distribution program. The goal of a managed distribution
program is to provide common shareholders with relatively consistent and
predictable cash flow by systematically converting its expected long-term return
potential into regular distributions. As a result, regular common share
distributions throughout the year are likely to 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 common share 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 a Fund's past or future investment performance from
its current distribution rate.
- Actual common share returns will differ from projected long-term returns (and
therefore a 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
10
periods over the life of your investment (previous or subsequent) when a
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), estimates on the nature of your distributions
provided at the time distributions are paid 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 information regarding each Fund's common share
distributions and total return performance for the fiscal year ended December
31, 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 Funds' returns for the
specified time period were sufficient to meet each Funds' distributions.
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As of 12/31/07 (Common Shares) JPC JQC
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Inception date 3/26/03 6/25/03
Calendar year:
Per share distribution:
From net investment income $0.77 $0.79
From short-term capital gains 0.25 0.29
From long-term capital gains -- 0.01
From return of capital 0.12 0.05
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Total per share distribution $1.14 $1.14
======= =======
Distribution rate on NAV 9.21% 9.15%
Annualized one-year total return on NAV -5.71% -5.34%
Annualized since inception total return on NAV 5.53% 4.86%
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SHARE REPURCHASE AND SHARE PRICE INFORMATION
On November 21, 2007, 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. Repurchases not only help to support
the market price but, because such purchases are made at a discount to NAV, they
have the effect of augmenting NAV. Under the terms of the program, each Fund may
repurchase up to 10% of its outstanding common shares. As of December 31, 2007,
JPC had repurchased 311,100 common shares and JQC had repurchased 725,600 common
shares, representing approximately 0.3% and 0.5% of the Funds' total common
shares outstanding, respectively.
As of December 31, 2007, the Funds' share prices were trading relative to their
NAVs as shown in the accompanying table:
------------------------------------------------------------------------------------------
12/31/07 Average 12-Month
Discount Period Discount
------------------------------------------------------------------------------------------
JPC -11.71% -7.28%
JQC -11.72% -7.57%
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11
JPC Nuveen Multi-Strategy
PERFORMANCE Income and
OVERVIEW Growth Fund
as of December 31, 2007
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)(2)
(PORTFOLIO ALLOCATION PIE CHART)
Convertible Bonds 6.6
Corporate Bonds 6.7
Variable Rate Senior Loan Interests 7.6
Capital Preferred Securities 18.8
Common Stocks 26.5
$25 Par (or similar) Preferred Securities 29.2
Convertible Preferred Securities 1.1
Investment Companies 1.5
Short-Term Investments 2.0
2007 DISTRIBUTIONS PER COMMON SHARE(3)
(MONTHLY DISTRIBUTIONS BAR CHART)
JAN 0.095
--- -----
Feb 0.095
Mar 0.095
Jun 0.285
Sep 0.285
Dec 0.285
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(SHARE PRICE CHART)
1/01/07 14.30
14.27
14.12
14.21
14.14
14.24
14.20
14.07
14.26
14.28
14.06
13.85
14.07
14.09
14.08
14.04
13.90
13.97
14.09
14.02
13.87
13.74
13.87
13.56
13.46
13.13
13.23
13.32
12.99
12.80
12.26
12.16
11.45
11.37
12.20
12.20
12.32
11.76
11.91
12.00
12.15
12.01
11.64
11.78
11.61
11.07
10.90
10.7534
11.27
11.33
10.83
10.52
10.73
12/31/07 10.93
FUND SNAPSHOT
------------------------------------------------------------------------
Common Share Price $10.93
------------------------------------------------------------------------
Common Share Net Asset Value $12.38
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Premium/(Discount) to NAV -11.71%
------------------------------------------------------------------------
Current Distribution Rate(1) 10.43%
------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $1,230,342
------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/26/03)
-------------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------------
1-Year -16.28% -5.71%
-------------------------------------------------------------------------------------
Since
Inception 2.44% 5.53%
-------------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)(2)
-------------------------------------------------------------------------------------
Commercial Banks 18.5%
-------------------------------------------------------------------------------------
Insurance 10.2%
-------------------------------------------------------------------------------------
Real Estate/Mortgage 7.1%
-------------------------------------------------------------------------------------
Capital Markets 6.8%
-------------------------------------------------------------------------------------
Media 5.8%
-------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 4.2%
-------------------------------------------------------------------------------------
Diversified Financial Services 3.9%
-------------------------------------------------------------------------------------
Metals & Mining 3.4%
-------------------------------------------------------------------------------------
Electric Utilities 2.4%
-------------------------------------------------------------------------------------
Diversified Telecommunication Services 2.4%
-------------------------------------------------------------------------------------
Health Care Providers & Services 2.1%
-------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 1.6%
-------------------------------------------------------------------------------------
Food Products 1.6%
-------------------------------------------------------------------------------------
Investment Companies 1.5%
-------------------------------------------------------------------------------------
Energy Equipment & Services 1.4%
-------------------------------------------------------------------------------------
Chemicals 1.3%
-------------------------------------------------------------------------------------
Pharmaceuticals 1.2%
-------------------------------------------------------------------------------------
Communications Equipment 1.2%
-------------------------------------------------------------------------------------
Thrifts & Mortgage Finance 1.0%
-------------------------------------------------------------------------------------
Machinery 0.9%
-------------------------------------------------------------------------------------
Short-Term Investments 2.0%
-------------------------------------------------------------------------------------
Other 19.5%
-------------------------------------------------------------------------------------
TOP FIVE ISSUERS
(as a % of total investments)(4)
------------------------------------------------------------------------------------
Union Planters Corporation 1.8%
------------------------------------------------------------------------------------
Wachovia Corporation 1.7%
------------------------------------------------------------------------------------
ING Groep N.V. 1.6%
------------------------------------------------------------------------------------
Delphi Financial Group, Inc. 1.5%
------------------------------------------------------------------------------------
HSBC Corporation 1.5%
------------------------------------------------------------------------------------
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 Excluding common stocks sold short and derivative transactions.
3 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.
4 Excluding short-term investments, common stocks sold short and derivative
transactions.
12
JQC Nuveen Multi-Strategy
PERFORMANCE Income and
OVERVIEW Growth Fund 2
as of December 31, 2007
PORTFOLIO ALLOCATION (AS A % OF TOTAL INVESTMENTS)(2)
(PORTFOLIO ALLOCATION PIE CHART)
Convertible Bonds 6.7
Corporate Bonds 6.5
Variable Rate Senior Loan Interests 6.9
Capital Preferred Securities 19.1
Common Stocks 26.2
$25 Par (or similar) Preferred Securities 28.8
Convertible Preferred Securities 1.1
Investment Companies 1.5
Short-Term Investments 3.2
2007 DISTRIBUTIONS PER COMMON SHARE(3)
(MONTHLY DISTRIBUTIONS BAR CHART)
Jan 0.095
Feb 0.095
Mar 0.095
Jun 0.285
Sep 0.285
Dec 0.285
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
(SHARE PRICE CHART)
1/01/07 14.14
14.09
13.89
14.01
14.02
14.16
14.12
14.02
14.16
14.20
14.04
13.87
14.10
14.00
14.00
13.99
13.88
13.93
14.06
14.01
13.88
13.80
13.92
13.58
13.45
13.10
13.27
13.32
12.99
12.87
12.31
12.21
11.56
11.46
12.45
12.43
12.51
11.94
12.13
12.10
12.25
12.06
11.66
11.80
11.61
11.11
10.98
10.79
11.29
11.41
10.90
10.60
10.79
12/31/07 11.00
FUND SNAPSHOT
---------------------------------------------------------------------------------------
Common Share Price $11.00
---------------------------------------------------------------------------------------
Common Share Net Asset Value $12.46
---------------------------------------------------------------------------------------
Premium/(Discount) to NAV -11.72%
---------------------------------------------------------------------------------------
Current Distribution Rate(1) 10.36%
---------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $1,740,952
---------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/25/03)
-------------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------------
1-Year -14.70% -5.34%
-------------------------------------------------------------------------------------
Since
Inception 1.63% 4.86%
-------------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)(2)
-------------------------------------------------------------------------------------
Commercial Banks 18.1%
-------------------------------------------------------------------------------------
Insurance 10.7%
-------------------------------------------------------------------------------------
Real Estate/Mortgage 6.6%
-------------------------------------------------------------------------------------
Media 5.9%
-------------------------------------------------------------------------------------
Diversified Financial Services 5.6%
-------------------------------------------------------------------------------------
Capital Markets 4.9%
-------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 4.3%
-------------------------------------------------------------------------------------
Metals & Mining 3.3%
-------------------------------------------------------------------------------------
Diversified Telecommunication Services 3.0%
-------------------------------------------------------------------------------------
Electric Utilities 2.2%
-------------------------------------------------------------------------------------
Health Care Providers & Services 1.8%
-------------------------------------------------------------------------------------
Food Products 1.8%
-------------------------------------------------------------------------------------
Energy Equipment & Services 1.6%
-------------------------------------------------------------------------------------
Investment Companies 1.5%
-------------------------------------------------------------------------------------
Chemicals 1.3%
-------------------------------------------------------------------------------------
Pharmaceuticals 1.3%
-------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 1.3%
-------------------------------------------------------------------------------------
Communication Equipment 1.2%
-------------------------------------------------------------------------------------
Thrifts & Mortgage Finance 0.9%
-------------------------------------------------------------------------------------
Short-Term Investments 3.2%
-------------------------------------------------------------------------------------
Other 19.5%
-------------------------------------------------------------------------------------
TOP FIVE ISSUERS
(as a % of total investments)(4)
------------------------------------------------------------------------------------
Wachovia Corporation 1.8%
------------------------------------------------------------------------------------
Citigroup Inc. 1.7%
------------------------------------------------------------------------------------
ING Groep N.V. 1.5%
------------------------------------------------------------------------------------
JPMorgan Chase & Company 1.5%
------------------------------------------------------------------------------------
AgFirst Farm Credit Bank 1.5%
------------------------------------------------------------------------------------
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 Excluding common stocks sold short and derivative transactions.
3 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.
4 Excluding short-term investments, common stocks sold short and derivative
transactions.
13
SHAREHOLDER MEETING REPORT
The special meeting of shareholders was held in the offices of Nuveen
Investments on October 12, 2007.
JPC JQC
------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred
shares voting shares voting
together together
as a class as a class
------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
For 47,278,778 67,131,058
Against 3,234,142 3,464,865
Abstain 1,754,236 2,781,381
Broker Non-Votes 15,705,917 24,479,784
------------------------------------------------------------------------------------------------------
Total 67,973,073 97,857,088
------------------------------------------------------------------------------------------------------
TO APPROVE A NEW SUB-ADVISORY AGREEMENT BETWEEN
NUVEEN ASSET MANAGEMENT AND SPECTRUM ASSET MANAGEMENT, INC.:
For 46,947,098 66,682,033
Against 3,371,633 3,649,140
Abstain 1,948,426 3,046,131
Broker Non-Votes 15,705,916 24,479,784
------------------------------------------------------------------------------------------------------
Total 67,973,073 97,857,088
------------------------------------------------------------------------------------------------------
TO APPROVE A NEW SUB-ADVISORY AGREEMENT BETWEEN
NUVEEN ASSET MANAGEMENT AND SYMPHONY ASSET MANAGEMENT LLC:
For 46,859,523 66,621,211
Against 3,430,627 3,701,997
Abstain 1,977,007 3,054,096
Broker Non-Votes 15,705,916 24,479,784
------------------------------------------------------------------------------------------------------
Total 67,973,073 97,857,088
------------------------------------------------------------------------------------------------------
TO APPROVE A NEW SUB-ADVISORY AGREEMENT BETWEEN
NUVEEN ASSET MANAGEMENT AND TRADEWINDS GLOBAL INVESTORS,
LLC:
For 46,914,640 66,741,416
Against 3,360,202 3,580,073
Abstain 1,992,315 3,055,815
Broker Non-Votes 15,705,916 24,479,784
------------------------------------------------------------------------------------------------------
Total 67,973,073 97,857,088
------------------------------------------------------------------------------------------------------
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
FOR THE CURRENT FISCAL YEAR:
For 65,113,594 93,548,227
Against 1,451,880 2,072,360
Abstain 1,407,599 2,236,501
------------------------------------------------------------------------------------------------------
Total 67,973,073 97,857,088
------------------------------------------------------------------------------------------------------
14
Report of INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN MULTI-STRATEGY INCOME AND GROWTH FUND
(FORMERLY NUVEEN PREFERRED AND CONVERTIBLE INCOME FUND)
NUVEEN MULTI-STRATEGY INCOME AND GROWTH FUND 2
(FORMERLY NUVEEN PREFERRED AND CONVERTIBLE INCOME FUND 2)
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Multi-Strategy Income and Growth Fund
(formerly Nuveen Preferred and Convertible Income Fund) and Nuveen
Multi-Strategy Income and Growth Fund 2 (formerly Nuveen Preferred and
Convertible Income Fund 2) (the "Funds") as of December 31, 2007, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of December 31, 2007, by correspondence with the custodian,
selling or agent banks and brokers or by other appropriate auditing procedures
where replies from selling or agent banks or brokers were not received. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Multi-Strategy Income and Growth Fund and Nuveen Multi-Strategy Income
and Growth Fund 2 at December 31, 2007, the results of their operations for the
year then ended, the changes in their net assets for each of the two years in
the period then ended, and the financial highlights for the periods indicated
therein in conformity with U.S. generally accepted accounting principles.
(ERNST & YOUNG LLP LOGO)
Chicago, Illinois
February 26, 2008
15
JPC
Nuveen Multi-Strategy Income and Growth Fund
Portfolio of INVESTMENTS
as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 41.9% (26.5% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.6%
22,520 Boeing Company $ 1,969,599
12,930 Finmeccanica S.p.A. 414,846
12,056 Lockheed Martin Corporation 1,269,015
18,200 Orbital Sciences Corporation, (2) 446,264
43,900 Thales S.A. 2,615,048
12,460 United Technologies Corporation 953,688
--------------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 7,668,460
-------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.1%
42,100 Lufthansa AG 1,122,237
2,000 Ryanair Holdings PLC, (2) 78,880
--------------------------------------------------------------------------------------------------------------------------------
Total Airlines 1,201,117
-------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.4%
12,580 Advance Auto Parts, Inc. 477,914
8,530 Aftermarket Tech, (2) 232,528
40,810 Aisin Seiki Company Limited 1,689,625
9,560 Cooper Tire & Rubber 158,505
13,710 Johnson Controls, Inc. 494,108
24,790 Magna International Inc., Class A 1,993,860
--------------------------------------------------------------------------------------------------------------------------------
Total Auto Components 5,046,540
-------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.7%
24,530 Daimler-Chrysler AG, (2) 2,345,804
37,480 Honda Motor Company Limited 1,242,087
28,310 Nissan Motor 614,893
31,830 Nissan Motor 347,408
1,140 S.A. D'Ieteren N.V. 409,662
18,840 Toyota Motor Corporation 2,000,243
3,240 Volkswagen AG 148,203
70,300 Yamaha Motor Company Limited 1,682,460
--------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 8,790,760
-------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.3%
99,780 Coca Cola Amatil Limited 825,089
49,090 Coca-Cola Company 3,012,653
38,690 Coca-Cola Enterprises Inc. 1,007,101
25,540 Diageo PLC, Sponsored ADR 2,192,098
54,690 Fomento Economico Mexicano S.A. 2,087,517
66,280 Heineken N.V. 4,280,536
16,200 Molson Coors Brewing Company, Class B 836,244
29,900 Pepsi Bottling Group, Inc. 1,179,854
41,410 SABMiller PLC 1,162,198
--------------------------------------------------------------------------------------------------------------------------------
Total Beverages 16,583,290
-------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.6%
2,332 Abraxis Bioscience Inc. 160,372
69,500 Amgen Inc., (2), (11) 3,227,580
17,400 Cephalon, Inc., (2) 1,248,624
23,180 Genzyme Corporation, (2) 1,725,519
5,610 Invitrogen Corporation, (2) 524,030
13,880 Novo-Nordisk A/S 900,257
--------------------------------------------------------------------------------------------------------------------------------
Total Biotechnology 7,786,382
-------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.2%
207,110 Sonae Industria-SPGS S.A. 1,995,234
--------------------------------------------------------------------------------------------------------------------------------
16
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 1.2%
5,460 Ameriprise Financial, Inc. $ 300,901
188,000 Babcock & Brown Limited 4,422,204
33,030 Bank of New York Company, Inc. 1,610,543
1,990 BlackRock Inc. 431,432
11,340 Calamos Asset Management, Inc. Class A 337,705
30,160 Credit Suisse Group, (2) 1,812,616
12,290 Credit Suisse Group 739,803
17,670 Invesco LTD 554,485
41,130 JPMorgan Chase & Co. 1,795,325
20,130 SEI Investments Company 647,582
18,700 State Street Corporation 1,518,440
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 14,171,036
-------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.6%
11,840 Air Products & Chemicals Inc. 1,167,779
670 Bayer AG 61,096
3,370 CF Industries Holdings, Inc. 370,902
7,900 Lubrizol Corporation 427,864
207,300 Mitusi Chemicals 1,345,759
38,990 Mosaic Company, (2) 3,678,317
335,480 Nissan Chemical Industries Limited 4,375,886
300 Potash Corporation of Saskatchewan 43,188
16,640 Potash Corporation of Saskatchewan 2,419,245
16,560 Praxair, Inc. 1,469,038
67,230 Shin--Etsu Chemical Company Limited 4,181,113
8,360 Terra Industries, Inc., (2) 399,274
--------------------------------------------------------------------------------------------------------------------------------
Total Chemicals 19,939,461
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 2.1%
15,700 Allied Irish Banks 721,258
14,880 Allied Irish Banks 341,229
77,920 Allinaz S.E. 1,655,800
1,650 Banco Bilbao Vizcaya Argentaria S.A. 40,013
1,080 Banco Bradesco S.A., ADR 34,560
1,310 Banco Itau Holdings Financeira, S.A. 33,877
40,870 Banco Santander Central S.A. 880,340
24,090 Bank of Montreal 1,363,494
1,660 Barclays PLC 67,014
25,720 BNP Paribas S.A. 2,790,618
31,950 Credit Agricole S.A. 1,077,873
246,750 DnB NOR ASA 3,753,556
70,990 Hang Seng Bank 1,452,240
34,900 ICICI Bank Limited, ADR 2,146,350
17,430 Kookmin Bank 1,277,968
24,160 Lloyds TSB Group PLC, Sponsored ADR 909,624
2,600 National Bank of Greece S.A. 178,295
30,210 National Bank of Greece S.A. 416,596
859,260 Nishi-Nippon City Bank Limited 2,128,226
9,350 Northern Trust Corporation 716,023
9,930 PNC Financial Services Group, Inc. 651,905
4,650 Prosperity Bancshares, Inc. 136,664
154,690 Royal Bank of Scotland, PLC, (2) 1,365,828
4,780 SVB Financial Group, (2) 240,912
20,920 Sydbank A/S 895,757
5,540 UMB Financial Corporation 212,514
3,680 Wintrust Financial Corporation 121,918
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 25,610,452
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.9%
327,800 Allied Waste Industries, Inc., (2), (11) 3,612,356
21,890 Apollo Group, Inc., (2) 1,535,584
2,366 Consolidated Graphics Inc., (2) 113,142
1,940 Dun and Bradstreet Inc. 171,942
208,260 Michael Page International PLC 1,185,663
26,410 Randstad Holding N.V. 1,032,135
17
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (continued)
10,930 Republic Services, Inc. $ 342,656
293,300 Toppan Printing Company Limited 2,876,352
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 10,869,830
-------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.7%
4,620 Comtech Telecom Corporation, (2) 249,526
98,320 Corning Incorporated 2,358,697
79,780 Nokia Oyj, Sponsored ADR 3,062,754
76,700 QUALCOMM Inc. 3,018,145
6,470 Tandberg ASA 133,590
--------------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 8,822,712
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.8%
22,771 Apple, Inc., (2) 4,510,480
39,260 Hewlett-Packard Company 1,981,845
8,100 International Business Machines Corporation 875,610
(IBM)
7,950 NCR Corporation, (2) 199,545
85,653 Network Appliance, Inc., (2) 2,137,899
9,710 SanDisk Corporation, (2) 322,081
7,950 Teradata Corporation 217,910
--------------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 10,245,370
-------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.8%
315,280 AMEC PLC 5,271,016
9,450 Fluor Corporation 1,377,054
151,790 JGC Corporation 2,602,621
5,160 Perini Corporation 213,727
--------------------------------------------------------------------------------------------------------------------------------
Total Construction & Engineering 9,464,418
-------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.0%
1,180 Cemex SAB de CV, Sponsored ADR, (2) 30,503
1,720 Texas Industries Inc. 120,572
--------------------------------------------------------------------------------------------------------------------------------
Total Construction Materials 151,075
-------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.4%
11,040 MasterCard, Inc. 2,375,808
45,600 Takefuji Corporation 1,095,248
50,050 Western Union Company 1,215,214
--------------------------------------------------------------------------------------------------------------------------------
Total Consumer Finance 4,686,270
-------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
10,600 Owens-Illinois, Inc. 524,700
--------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTORS - 0.1%
82,910 Jardine Cycle & Carriage Limited 1,237,987
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES - 0.0%
2,210 Capella Education Company 144,667
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.7%
41,970 Citigroup Inc. 1,235,597
21,380 Deutsche Boerse AG 4,219,644
26,150 Eaton Vance Corporation 1,187,472
23,160 ING Groep N.V. 901,156
13,710 Nasdaq Stock Market, Inc., (2) 678,508
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 8,222,377
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.0%
37,390 AT&T Inc. 1,553,928
430 Brasil Telecom 32,069
15,830 BT Group PLC 853,554
7,550 Cbeyond Inc., (2) 294,375
96,909 Chunghwa Telecom Co., Ltd., Sponsored ADR, (11) 2,045,749
21,320 France Telecom S.A. 759,632
114,750 KT Corporation, Sponsored ADR, (11) 2,960,550
18
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
389,550 Nippon Telegraph and Telephone Corporation, ADR, $ 9,606,303
(11)
59,090 Telecom Argentina S.A., (2) 1,314,753
39,324 Telecom Corporation of New Zealand, Limited 653,172
39,031 Telecom Corporation of New Zealand, Limited 130,384
24,830 Telefonica S.A. 2,423,160
54,110 Telefonos de Mexico SA, de C.V., Series L 1,993,412
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 24,621,041
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.2%
600 Ameren Corporation 32,526
6,120 Black Hills Corporation 269,892
263,700 Centrais Electricas Brasileiras S.A., ADR 3,399,963
40,600 E.ON A.G 2,878,223
35,180 Edison International 1,877,557
9,240 El Paso Electric Company, (2) 236,267
9,940 Enel S.p.A., Sponsored ADR 585,218
15,580 FPL Group, Inc. 1,056,012
100,500 IDACORP, INC 3,539,610
245,500 Korea Electric Power Corporation, Sponsored ADR 5,118,675
148,600 PNM Resources Inc. 3,187,470
63,520 Progress Energy, Inc., (11) 3,076,274
64,810 Reliant Energy Inc., (2) 1,700,614
--------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 26,958,301
-------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.4%
36,840 ABB Limted 1,062,162
58,310 Emerson Electric Co. 3,303,845
18,930 Nikon Corporation 643,967
--------------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 5,009,974
-------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.7%
1,714 Itron Inc., (2) 164,493
4,390 LG Philips LCD Company Limited, Sponsored ADR, 114,052
(2)
17,890 MEMC Electronic Materials, (2) 1,583,086
3,310 Mettler-Toledo International Inc., (2) 376,678
60,500 Tech Data Corporation, (2), (11) 2,282,060
3,577 Teledyne Technologies Inc., (2) 190,761
67,650 Thermo Fisher Scientific, Inc., (2) 3,902,052
--------------------------------------------------------------------------------------------------------------------------------
Total Electronic Equipment & Instruments 8,613,182
-------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.5%
6,620 Cooper Cameron Corporation, (2) 318,621
9,390 Dresser Rand Group, Inc., (2) 366,680
43,400 Global Industries, Limited, (2) 929,628
7,910 Matrix Service Company, (2) 172,596
26,060 National-Oilwell Varco Inc., (2) 1,914,368
9,350 Noble Corporation 528,369
10,600 Technip S.A. 843,137
10,030 Tidewater Inc. 550,246
5,080 Transocean Inc. 727,202
4,070 Trico Marine Services Inc., (2) 150,671
--------------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 6,501,518
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.5%
18,600 Casino Guichard-Perrachon S.A. 2,023,358
3,660 Koninklijke Ahold N.V., (2) 50,545
150,840 Marks and Spencer Group PLC 1,669,716
3,660 Nash Finch Company 129,125
38,020 Safeway Inc. 1,300,664
31,130 Wal-Mart Stores, Inc. 1,479,609
--------------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 6,653,017
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 1.8%
22,770 ConAgra Foods, Inc. 541,698
19
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS (continued)
16,805 Flowers Foods Inc. $ 393,405
32,720 H.J. Heinz Company 1,527,370
198,950 Jeronimo Martins SGPS 1,580,629
3,310 Monsanto Company 369,694
460 Nestle S.A. 52,820
267,000 Smithfield Foods, Inc., (2), (11) 7,721,640
98,450 Tingyi Holding Corporation 154,666
481,100 Tyson Foods, Inc., Class A, (11) 7,375,263
70,840 Unilever PLC 2,650,833
--------------------------------------------------------------------------------------------------------------------------------
Total Food Products 22,368,018
-------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.5%
1,170 BG PLC 133,918
4,850 E.ON AG 1,031,075
26,950 Energen Corporation 1,730,999
2,640 Gas Natural SDG 154,106
42,200 Questar Corporation 2,283,020
13,620 Spectra Energy Corporation 351,668
--------------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 5,684,786
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
20,050 Alfresa Holdings Corporation 1,208,857
2,360 Analogic Corporation 159,819
28,610 Baxter International Inc. 1,660,811
20,664 Express Scripts, Inc., (2) 1,508,472
594 Fresenius Medical Care, ADR 31,334
2,840 Lifecell Corporation, (2) 122,432
109,400 Paramount Bed Company Limited 1,406,829
4,402 Surmodics Inc., (2) 238,897
--------------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 6,337,451
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.3%
30,830 Humana Inc., (2) 2,321,807
4,890 Mentor Corporation 191,199
23,693 Wellcare Health Plans Inc., (2) 1,004,820
--------------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 3,517,826
-------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.2%
3,690 Bally Technologies, Inc., (2) 183,467
970 Carnival Corporation 42,496
14,890 Choice Hotels International, Inc. 494,348
23,840 McDonald's Corporation 1,404,414
13,320 Multimedia Games, Inc., (2) 111,089
--------------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 2,235,814
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.1%
1,630 Desarrolladora Homex SAB de C.V., Sponsored ADR 80,604
360 Koninklijke Philips Electronics N.V. 15,390
2,650 Matsushita Electric Industrial Co., Ltd., ADR 54,166
30,181 Newell Rubbermaid Inc. 781,084
4,780 Tupperware Corporation 157,883
--------------------------------------------------------------------------------------------------------------------------------
Total Household Durables 1,089,127
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.7%
38,900 Colgate-Palmolive Company 3,032,644
146,000 KAO Corporation 4,389,189
11,057 Kimberly-Clark Corporation 766,692
--------------------------------------------------------------------------------------------------------------------------------
Total Household Products 8,188,525
-------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
22,440 NRG Energy Inc., (2) 972,550
--------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.5%
24,870 General Electric Company 921,931
250,340 Keppel Corporation 2,230,697
20
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (continued)
16,460 Siemens AG, Sponsored ADR $ 2,590,146
3,240 Teleflex Inc. 204,152
--------------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 5,946,926
-------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.1%
790 Aegon N.V. 13,849
34,685 AFLAC Incorporated 2,172,322
8,270 American International Group, Inc. 482,141
10,690 Amtrust Financial Services, Inc. 147,201
16,830 Aon Corporation 802,623
13,100 Arch Capital Group Limited, (2) 921,585
4,160 Aspen Insurance Holdings Limited 119,974
8,720 Axis Capital Holdings Limited 339,818
254,800 Benfield Group, Limited 1,418,680
8,210 Delphi Financial Group, Inc. 289,649
3,970 Fairfax Financial Holdings Limited 1,135,936
13,920 HCC Insurance Holdings Inc. 399,226
33,977 Philadelphia Consolidated Holding Corporation, 1,336,995
(2)
6,550 Power Financial Corporation 270,575
8,630 Seabright Insurance Holdings Inc., (2) 130,140
7,780 Security Capital Assurance Limited 30,264
24,030 Sun Life Financial Inc. 1,344,238
5,664 Tower Group Inc. 189,178
7,160 Universal American Financial Corporation, (2) 183,224
65,580 WR Berkley Corporation 1,954,940
1,280 Zurich Financial Services AG 375,663
--------------------------------------------------------------------------------------------------------------------------------
Total Insurance 14,058,221
-------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.2%
16,790 Amazon.com, Inc., (2) 1,555,426
133,350 Home Retail Group 866,652
--------------------------------------------------------------------------------------------------------------------------------
Total Internet & Catalog Retail 2,422,078
-------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.0%
2,410 Blue Coat Systems Inc. 79,217
--------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.2%
33,770 Accenture Limited 1,216,733
12,400 CGI Group Inc., (2) 144,336
7,120 Convergys Corporation, (2) 117,195
12,420 FactSet Research Systems Inc. 691,794
6,520 Savvis Inc., (2) 181,973
5,910 TNS Inc. 104,903
--------------------------------------------------------------------------------------------------------------------------------
Total IT Services 2,456,934
-------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.2%
19,150 Canon Inc. 877,645
13,990 Fuji Photo Film Co., Ltd. 585,559
8,040 FujiFilm Holdings Corporation, ADR 335,188
16,200 Hasbro, Inc. 414,396
11,440 Marvel Entertainment Inc., (2) 305,562
--------------------------------------------------------------------------------------------------------------------------------
Total Leisure Equipment & Products 2,518,350
-------------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.0%
5,770 Illumina Inc., (2) 341,930
--------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.9%
58,130 ABB Limted 1,674,144
40,550 AGCO Corporation, (2) 2,756,589
7,980 Deere & Company 743,098
20,166 Harsco Corporation 1,292,036
18,510 ITT Industries Inc. 1,222,400
30,050 Manitowoc Company Inc. 1,467,342
156,840 Mitsui Engineering & Shipbuilding Company 602,633
Limited
8,370 Pall Corporation 337,478
21
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
MACHINERY (continued)
5,440 Parker Hannifin Corporation $ 409,686
8,220 RBC Bearings Inc., (2) 357,241
3,160 Robbins & Myers, Inc. 238,991
--------------------------------------------------------------------------------------------------------------------------------
Total Machinery 11,101,638
-------------------------------------------------------------------------------------------------------------------
MARINE - 0.1%
181,660 Kawasaki Kisen Kaisha Limited 1,763,540
--------------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.7%
55,630 DIRECTV Group, Inc., (2) 1,286,166
46,310 Echostar Communications Corporation, (2) 1,746,813
47,130 Eniro AB 418,779
16,220 ProSiebensati Media AG 387,806
15,860 Regal Entertainment Group, Class A 286,590
54,400 Scholastic Corporation, (2), (11) 1,898,016
19,700 Shaw Communication Inc. 466,496
7,180 Thomson Corporation 292,585
23,060 Walt Disney Company 744,377
8,370 WPP Group PLC 538,107
--------------------------------------------------------------------------------------------------------------------------------
Total Media 8,065,735
-------------------------------------------------------------------------------------------------------------------
METALS & MINING - 4.7%
199,200 AngloGold Ashanti Limited, Sponsored ADR, (11) 8,527,752
204,700 Apex Silver Mines Limited, (2), (11) 3,119,628
213,500 Barrick Gold Corporation, (11) 8,977,675
12,710 BHP Billiton PLC 387,570
10,020 BHP Billiton PLC 614,226
60,500 BHP Billiton PLC 2,114,966
3,530 Compass Minerals International, Inc. 144,730
148,530 Cookson Group 2,059,901
235,600 Crystallex International Corporation, (2) 537,168
19,100 Freeport-McMoRan Copper & Gold, Inc. 1,956,604
966,500 Gabriel Resources, Limited, (2) 1,929,181
202,500 Gold Fields Limited, (11) 2,875,500
1,504,600 Lihir Gold Limited, (2) 4,681,064
500,810 Mitsubishi Materials 2,114,701
204,000 Moto Goldmines, Limited, (2) 754,446
183,700 Newmont Mining Corporation, (11) 8,970,071
188,200 NovaGold Resources Inc., (2) (11) 1,535,712
496,500 Orezone Resources Inc., (2) 600,765
4,280 Rio Tinto PLC, Sponsored ADR 1,797,172
132,270 SSAB Svenskt Stal AB 3,569,609
--------------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 57,268,441
-------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 0.6%
15,180 Big Lots, Inc., (2) 242,728
38,000 Costco Wholesale Corporation 2,650,880
8,610 Dollar Tree Stores Inc., (2) 223,171
116,870 Next PLC 3,764,492
--------------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 6,881,271
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.4%
47,210 National Grid Group PLC 782,962
138,900 Puget Energy, Inc., (11) 3,810,027
--------------------------------------------------------------------------------------------------------------------------------
Total Multi-Utilities 4,592,989
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 3.7%
60,500 Arch Coal Inc., (11) 2,718,265
5,020 Bill Barrett Corporation, (2) 210,187
123,120 BP Amoco PLC, (11) 9,008,690
36,770 Chesapeake Energy Corporation 1,441,384
11,450 Chevron Corporation 1,068,629
4,420 Comstock Resources Inc. 150,280
30,200 Eni S.p.A., Sponsored ADR 2,187,386
10,810 EOG Resources, Inc. 964,793
22
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (continued)
14,960 Equitable Resources Inc. $ 797,069
20,990 Frontier Oil Corporation 851,774
31,840 Hess Corporation 3,211,382
24,740 Murphy Oil Corporation 2,098,942
100 Nexen Inc. 3,227
14,320 Occidental Petroleum Corporation 1,102,497
7,900 Patriot Coal Corporation 329,746
79,000 Peabody Energy Corporation, (11) 4,869,560
16,800 Petroquest Energy Inc., (2) 240,240
8,286 Pioneer Drilling Company, (2) 98,438
36,610 Repsol YPF S.A. 1,304,414
82,100 Royal Dutch Shell PLC, Class B, Sponsored ADR, 6,814,300
(11)
72,950 Singapore Petroleum 380,841
7,950 St Mary Land and Exploration Company 306,950
59,319 Statoil ASA 1,810,416
7,765 Sunoco, Inc. 562,497
21,330 Total S.A., Sponsored ADR 1,761,858
11,612 Valero Energy Corporation 813,188
--------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 45,106,953
-------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.3%
10,520 Aracruz Celulose S.A. 782,162
6,290 Buckeye Technologies Inc., (2) 78,625
7,400 Potlatch Corporation 328,856
10,030 Rayonier Inc. 473,817
8,400 Stora Enso Oyj, R Shares 125,394
55,210 Votorantim Celulose e Papel S.A. 1,645,810
--------------------------------------------------------------------------------------------------------------------------------
Total Paper & Forest Products 3,434,664
-------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.1%
17,690 Herbalife, Limited 712,553
3,400 Oriflame Cosmetics S.A. 216,431
--------------------------------------------------------------------------------------------------------------------------------
Total Personal Products 928,984
-------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 1.4%
9,390 APP Pharmaceuticals Inc. 96,435
17,900 Astellas Pharma Inc. 776,334
152,370 AstraZeneca Group 6,524,483
54,050 Daiichi Sankyo Company Limited 1,663,057
18,710 Eli Lilly and Company 998,927
6,720 GlaxoSmithKline PLC, ADR 338,621
20,870 H. Lundbeck A/S 560,808
98,000 Kissei Pharaceuticals Company Limited 2,005,726
33,420 Merck & Co. Inc. 1,942,036
2,960 Novo Nordisk A/S 193,233
189,800 Patheon Inc., (2) 600,006
8,920 Pozen Inc., (2) 107,040
22,190 Sanofi-Aventis, ADR 1,010,311
35,760 Shionogi & Company Limited 633,992
17,880 Warner Chilcott Limited, (2) 317,012
--------------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 17,768,021
-------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 0.5%
76,660 Annaly Capital Management Inc. 1,393,679
119,090 CFX Retail Property Trust 243,565
6,746 LaSalle Hotel Properties 215,197
8,120 Lexington Corporate Properties Trust 118,065
6,620 Macerich Company 470,417
13,851 SL Green Realty Corporation 1,294,514
10,471 Tanger Factory Outlet Centers 394,861
14,883 Taubman Centers Inc. 732,095
791,417 Wing Tai Holdings Limited 1,463,514
--------------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 6,325,907
-------------------------------------------------------------------------------------------------------------------
23
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0%
94,390 New World Development Company, Limited $ 331,656
--------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.2%
12,880 Canadian National Railways Company 604,458
1,970 Canadian Pacific Railway Limited 127,341
32,660 Hertz Global Holdings, Inc., (2) 518,967
14,400 Landstar System 606,960
4,990 Union Pacific Corporation 626,844
--------------------------------------------------------------------------------------------------------------------------------
Total Road & Rail 2,484,570
-------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.5%
58,623 ASM Lithography Holding N.V. 1,834,314
11,920 Broadcom Corporation, Class A, (2) 311,589
25,830 Intel Corporation 688,628
6,580 Monolithic Power Systems, Inc., (2) 141,273
66,460 National Semiconductor Corporation 1,504,654
11,230 NVIDIA Corporation, (2) 382,045
15,490 Semtech Corporation, (2) 240,405
84,930 Taiwan Semiconductor Manufacturing Company Ltd., 845,903
Sponsored ADR
8,660 Zoran Corporation, (2) 194,937
--------------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 6,143,748
-------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.7%
46,030 Activision Inc., (2) 1,367,091
31,790 Adobe Systems Incorporated, (2) 1,358,387
6,870 Ansys Inc., (2) 284,830
8,695 Aspen Technology Inc., (2) 141,033
42,990 Autodesk, Inc., (2) 2,139,182
6,158 Blackbaud, Inc. 172,670
6,000 Blackboard, Inc., (2) 241,500
27,420 Cadence Design Systems, Inc., (2) 466,414
41,320 Intuit Inc., (2) 1,306,125
5,940 SPSS Inc., (2) 213,305
23,180 Synopsys Inc., (2) 601,057
--------------------------------------------------------------------------------------------------------------------------------
Total Software 8,291,594
-------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.2%
6,575 Aeropostale, Inc., (2) 174,238
5,810 GameStop Corporation 360,859
18,700 Gap, Inc. 397,936
2,610 Hennes & Mauritz AB 157,659
4,770 J. Crew Group Inc., (2) 229,962
5,210 Luxottica Group S.p.A. 164,063
12,650 NetFlix.com Inc. 336,743
52,080 RadioShack Corporation 878,069
600 Sony Corporation 32,580
--------------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 2,732,109
-------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.1%
2,140 Deckers Outdoor Corporation, (2) 331,828
1,100 Gildan Activewear Inc, Sponsored ADR, (2) 45,276
32,558 Guess Inc. 1,233,623
--------------------------------------------------------------------------------------------------------------------------------
Total Textiles, Apparel & Luxury Goods 1,610,727
-------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.2%
134,400 Hudson City Bancorp, Inc. 2,018,688
--------------------------------------------------------------------------------------------------------------------------------
TOBACCO - 0.4%
11,150 British American Tobacco PLC 875,944
7,800 Imperial Tobacco Group 836,784
260 Japan Tobacco, Inc. 1,537,314
22,550 UST Inc. 1,235,740
--------------------------------------------------------------------------------------------------------------------------------
Total Tobacco 4,485,782
-------------------------------------------------------------------------------------------------------------------
24
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.0%
2,590 W.W. Grainger, Inc. $ 226,677
--------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.3%
885,990 Macquarie Airports 3,129,314
--------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.0%
2,850 China Unicom Limited 63,840
350 Millicom International Cellular S.A. 41,272
1,390 Mobile Telesystems, Sponsored ADR 141,482
--------------------------------------------------------------------------------------------------------------------------------
Total Wireless Telecommunication Services 246,594
-------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $495,587,372) 514,676,526
===================================================================================================================
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED SECURITIES - 1.7% (1.1% OF TOTAL INVESTMENTS)
AUTOMOBILES - 0.3%
30,200 General Motors Corporation, Convertible Bonds 1.500% B- $ 730,538
63,700 General Motors Corporation, Convertible Notes, 5.250% B- 1,233,232
Senior Debentures, Series B
108,800 General Motors Corporation 6.250% B- 2,129,216
----------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 4,092,986
---------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
11,300 AMG Capital Trust II, Convertible Bond 5.150% BB 501,438
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.1%
14,750 Sovereign Capital Trust IV, Convertible Security 4.375% Baa1 488,594
27,600 Washington Mutual, Inc., Unit 1 Trust 5.375% A3 779,700
----------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 1,268,294
---------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.6%
9,200 Lucent Technologies Capital Trust I 7.750% B2 7,433,784
----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
7,450 Owens-Illinois, Inc., Convertible Bonds 4.750% B- 372,351
----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
18,850 Centerpoint Energy Inc. 2.000% BBB- 614,133
6,500 CMS Energy Corporation, Convertible Bonds 4.500% Ba2 589,875
----------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 1,204,008
---------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.1%
6,500 Bunge Limited, Convertible Bonds 4.875% BB 917,313
----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.1%
12,000 Newell Financial Trust I 5.250% BBB- 550,500
----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
300 NRG Energy Inc., Convertible Bond 4.000% B2 665,682
----------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.1%
800 Freeport McMoran Copper & Gold, Inc. 5.500% B- 1,777,500
----------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.1%
550 El Paso Corporation 4.990% B 774,606
----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.1%
20,550 HRPT Properties Trust, Preferred Convertible 6.500% BBB- 392,711
Bonds
12,250 Simon Property Group, Inc., Series I 6.000% BBB+ 876,365
----------------------------------------------------------------------------------------------------------------------------------
Total Real Estate 1,269,076
---------------------------------------------------------------------------------------------------------------------
U.S. AGENCY - 0.0%
5 Federal National Mortgage Association 5.375% AA- 423,994
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED SECURITIES (COST 21,251,532
$23,049,461)
=====================================================================================================================
25
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
$25 PAR (OR SIMILAR) PREFERRED SECURITIES - 45.9% (29.2% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 5.8%
230,404 BNY Capital Trust V, Series F 5.950% Aa3 $ 4,783,187
946,417 Deutsche Bank Capital Funding Trust II 6.550% Aa3 20,452,071
3,600 Deutsche Bank Capital Funding Trust IX 6.625% Aa3 78,156
34,400 First Union Institutional Capital II (CORTS) 8.200% A1 869,976
3,900 Goldman Sachs Capital I, Series A (CORTS) 6.000% A1 77,298
4,700 Goldman Sachs Group Inc. (SATURNS) 5.750% AA- 95,645
4,800 Goldman Sachs Group Inc., Series 2004-06 6.000% A1 95,808
(SATURNS)
41,500 Goldman Sachs Group Inc., Series 2004-4 6.000% A1 815,475
(CORTS)
7,500 Goldman Sachs Group Inc., Series GSC-3 6.000% A1 148,350
(PPLUS)
521,588 Lehman Brothers Holdings Capital Trust III, 6.375% A2 10,379,601
Series K
3,500 Lehman Brothers Holdings Capital Trust IV, 6.375% A2 72,100
Series L
106,161 Merrill Lynch Preferred Capital Trust III 7.000% A2 2,208,149
122,400 Merrill Lynch Preferred Capital Trust IV 7.120% A2 2,680,560
341,000 Merrill Lynch Preferred Capital Trust V 7.280% A2 7,502,000
314,334 Morgan Stanley Capital Trust III 6.250% A1 6,006,923
456,907 Morgan Stanley Capital Trust IV 6.250% A1 8,704,078
4,700 Morgan Stanley Capital Trust V 5.750% A+ 82,250
305,429 Morgan Stanley Capital Trust VII 6.600% A2 5,989,463
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 71,041,090
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 9.0%
72,670 ABN AMRO Capital Fund Trust V 5.900% A1 1,322,594
74,400 ASBC Capital I 7.625% A3 1,785,600
28,685 BAC Capital Trust I 7.000% Aa2 655,165
80,855 BAC Capital Trust II 7.000% Aa2 1,835,409
277,500 BAC Capital Trust III 7.000% Aa2 6,410,250
8,200 BAC Capital Trust IV 5.875% Aa2 161,950
8,000 BAC Capital Trust V 6.000% Aa3 159,040
10,200 BAC Capital Trust VIII 6.000% Aa2 200,430
5,000 BAC Capital Trust X 6.250% Aa2 102,550
358,086 Banco Santander Finance 6.800% Aa3 7,895,796
323,606 Banco Santander Finance 6.500% A 6,755,275
859 Banco Santander Finance 6.410% Aa3 18,941
9,100 BancorpSouth Capital Trust I 8.150% Baa1 227,500
231,600 Banesto Holdings, Series A, 144A 10.500% A1 7,136,175
81,700 Bank One Capital Trust VI 7.200% Aa3 1,903,610
300 Capital One Capital II Corporation 7.500% Baa1 5,700
217,300 Citizens Funding Trust I 7.500% Baa2 3,368,150
107,000 Cobank ABC, 144A 7.000% A 5,407,459
347,358 Fifth Third Capital Trust VI 7.250% A1 7,225,046
338,400 Fleet Capital Trust VIII 7.200% Aa2 7,952,400
759,620 HSBC Finance Corporation 6.875% AA- 17,828,281
16,860 HSBC Holdings PLC, Series A 6.200% A1 343,438
136,400 KeyCorp Capital Trust IX 6.750% Baa1 2,584,780
539,400 National City Capital Trust II 6.625% A3 8,927,070
35,900 National City Capital Trust IV 8.000% A2 756,593
43,750 PNC Capital Trust 6.125% A2 918,750
2,900 Royal Bank of Scotland Group PLC 6.600% Aa3 58,754
13,129 Royal Bank of Scotland Group PLC, Series L 5.750% A1 235,666
100,395 Royal Bank of Scotland Group PLC, Series N 6.350% A1 1,957,703
2,400 Royal Bank of Scotland Group PLC, Series P 6.250% A1 46,104
16,600 Royal Bank of Scotland Group PLC, Series T 7.250% Aa3 383,294
192,827 USB Capital Trust XI 6.600% A1 4,078,291
26,720 VNB Capital Trust I 7.750% A3 661,053
139,348 Wachovia Capital Trust IX 6.375% A1 2,779,993
159,417 Wachovia Trust IV 6.375% A1 3,193,123
80,735 Wells Fargo Capital Trust V 7.000% Aa2 1,864,979
86,002 Wells Fargo Capital Trust VII 5.850% Aa2 1,734,660
81,700 Zions Capital Trust B 8.000% BBB- 2,021,258
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 110,902,830
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.0%
4,447 IBM Inc., Trust Certificates, Series 2001-2 7.100% A+ 109,841
--------------------------------------------------------------------------------------------------------------------------------
26
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 4.2%
22,700 Allied Capital Corporation 6.875% BBB+ $ 385,900
58,130 BAC Capital Trust XII 6.875% Aa3 1,313,738
70,400 Citigroup Capital Trust VII 7.125% A+ 1,510,080
241,654 Citigroup Capital Trust VIII 6.950% A+ 5,086,817
2,000 Citigroup Capital Trust IX 6.000% A+ 37,100
15,900 Citigroup Capital Trust XI 6.000% A+ 293,355
2,800 Citigroup Capital X 6.100% A+ 51,660
30,600 Citigroup Capital XIV 6.875% A+ 619,650
347,800 CitiGroup Capital XIX 7.250% A+ 7,651,600
68,755 Citigroup Capital XV 6.500% Aa3 1,337,285
57,700 Citigroup Capital XVI 6.450% A+ 1,095,723
19,200 Citigroup Capital XVII 6.350% A+ 364,800
63,900 Citigroup Capital XX 7.875% Aa3 1,595,506
16,000 General Electric Capital Corporation 6.050% AAA 400,000
564,518 ING Groep N.V. 7.200% A1 12,656,494
786,475 ING Groep N.V. 7.050% A 17,223,803
5,900 ING Groep N.V. 6.200% A1 115,050
5,200 JP Morgan Chase Capital Trust XII 6.250% Aa3 108,992
5,000 Royal Bank of Scotland Group PLC, Series R 6.125% A1 95,500
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 51,943,053
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.3%
67,000 AT&T Inc. 6.375% A 1,616,040
21,900 BellSouth Capital Funding (CORTS) 7.100% A 488,644
18,300 BellSouth Corporation (CORTS) 7.000% A 377,209
17,500 Verizon Communications (CORTS) 7.625% A 439,950
8,500 Verizon Communications, Series 2004-1 6.125% A+ 186,065
(SATURNS)
1,800 Verizon Global Funding Corporation Trust 6.250% A 41,580
III, Series III (CORTS)
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 3,149,488
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.7%
22,200 DTE Energy Trust I 7.800% Baa3 553,890
40,670 Entergy Louisiana LLC 7.600% A- 996,008
135,100 FPL Group Capital Inc. 6.600% A3 3,242,400
800 Georgia Power Company 5.750% A 17,520
7,100 National Rural Utilities Cooperative Finance 6.100% A3 150,591
Corporation
4,900 National Rural Utilities Cooperative Finance 5.950% A3 103,586
Corporation
132,500 Virginia Power Capital Trust 7.375% BBB 3,231,675
--------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 8,295,670
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.2%
27,100 Dairy Farmers of America Inc., 144A 7.875% BBB- 2,679,513
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 9.2%
556,210 Ace Ltd., Series C 7.800% BBB 13,293,419
13,256 Aegon N.V. 6.875% A- 281,027
976,600 Aegon N.V. 6.375% A- 19,287,850
2,567 AMBAC Financial Group Inc. 5.950% AA 46,334
25,700 Arch Capital Group Limited, Series B 7.785% BBB- 596,240
408,100 Arch Capital Group Limited 8.000% BBB- 10,198,419
15,400 Berkley WR Corporation, Capital Trust II 6.750% BBB- 322,938
1,221,900 Delphi Financial Group, Inc. 8.000% BBB+ 28,971,249
3,000,000 Everest Reinsurance Holdings, Inc. 6.600% Baa1 2,661,543
322,955 EverestRe Capital Trust II 6.200% Baa1 6,078,013
82,200 Financial Security Assurance Holdings 6.250% AA 1,500,150
3,500 Lincoln National Capital Trust VI 6.750% A- 78,925
1,800 Markel Corporation 7.500% BBB- 43,398
809,050 PartnerRe Limited, Series C 6.750% BBB+ 15,582,303
82,200 PLC Capital Trust III 7.500% BBB+ 1,868,406
33,900 PLC Capital Trust IV 7.250% BBB+ 745,800
7,800 PLC Capital Trust V 6.125% BBB+ 148,746
47,900 Protective Life Corporation 7.250% BBB 1,046,615
37,400 Prudential PLC 6.750% A 760,716
377,051 RenaissanceRe Holdings Limited, Series B 7.300% BBB 8,200,859
27
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE (continued)
75,000 RenaissanceRe Holdings Ltd. 6.600% BBB $ 1,390,500
--------------------------------------------------------------------------------------------------------------------------------
Total Insurance 113,103,450
-------------------------------------------------------------------------------------------------------------------
MEDIA - 2.8%
27,900 CBS Corporation 7.250% BBB 603,477
410,172 CBS Corporation 6.750% BBB 7,895,811
586,200 Comcast Corporation 7.000% BBB+ 13,154,328
605,900 Viacom Inc. 6.850% BBB 13,341,918
--------------------------------------------------------------------------------------------------------------------------------
Total Media 34,995,534
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.9%
477,800 Nexen Inc. 7.350% Baa3 11,080,182
--------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 10.7%
10,300 AvalonBay Communities, Inc., Series H 8.700% BBB 260,899
15,266 BRE Properties, Series C 6.750% BBB- 295,244
658,185 Developers Diversified Realty Corporation, 8.000% BBB- 14,776,253
Series G
75,300 Developers Diversified Realty Corporation, 7.375% BBB- 1,543,650
Series H
16,500 Duke Realty Corporation, Series K 6.500% BBB 312,840
73,000 Duke Realty Corporation, Series L 6.600% BBB 1,434,450
37,228 Duke-Weeks Realty Corporation 6.950% BBB 750,144
388,070 Equity Residential Properties Trust, Series 6.480% BBB 7,842,895
N
5,900 First Industrial Realty Trust, Inc., Series 7.250% BBB- 119,534
J
267,400 First Industrial Realty Trust, Inc., Series 7.250% BBB- 5,414,850
J
135,567 HRPT Properties Trust, Series B 8.750% BBB- 3,383,752
652,100 HRPT Properties Trust, Series C 7.125% BBB- 13,172,420
456,287 Kimco Realty Corporation, Series F 6.650% BBB+ 9,810,171
59,000 Kimco Realty Corporation, Series G 7.750% BBB+ 1,367,915
32,982 Prologis Trust, Series C 8.540% BBB 1,717,125
12,500 Prologis Trust, Series G 6.750% BBB 262,750
2,000 PS Business Parks, Inc., Series K 7.950% BBB- 44,020
228,400 Public Storage, Inc. 6.750% BBB+ 4,488,060
99,295 Public Storage, Inc., Series C 6.600% BBB+ 1,876,676
51,900 Public Storage, Inc., Series E 6.750% BBB+ 1,017,759
15,000 Public Storage, Inc., Series F 6.450% BBB+ 282,750
9,359 Public Storage, Inc., Series H 6.950% BBB+ 185,683
149,400 Public Storage, Inc., Series I 7.250% BBB+ 3,143,376
1,700 Public Storage, Inc., Series K 7.250% BBB+ 35,785
253,741 Public Storage, Inc., Series M 6.625% BBB+ 4,821,079
32,300 Public Storage, Inc., Series V 7.500% BBB+ 720,290
320,700 Realty Income Corporation, Series E 6.750% BBB- 6,786,012
216,495 Regency Centers Corporation 7.450% BBB- 4,773,715
9,200 Regency Centers Corporation 7.250% BBB- 189,520
1,000 Vornado Realty Trust, Series F 6.750% BBB- 20,620
16,800 Vornado Realty Trust, Series G 6.625% BBB- 330,456
3,400 Vornado Realty Trust, Series H 6.750% BBB- 70,142
54,900 Vornado Realty Trust, Series I 6.625% BBB- 1,085,373
1,113,245 Wachovia Preferred Funding Corporation 7.250% A2 25,259,529
5,800 Weingarten Realty Investors Series F 6.500% BBB 112,520
625,330 Weingarten Realty Trust, Preferred 6.750% A- 13,694,727
Securities
--------------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 131,402,984
-------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 1.3%
99,700 Countrywide Capital Trust III (PPLUS) 8.050% BBB- 1,206,370
1,083,885 Countrywide Capital Trust IV 6.750% BBB- 12,779,004
145,428 Countrywide Capital Trust V 7.000% BBB- 1,665,151
--------------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 15,650,525
-------------------------------------------------------------------------------------------------------------------
U.S. AGENCY - 0.7%
31,400 Federal Home Loan Mortgage Corporation 6.550% AA- 730,050
129,000 Federal Home Loan Mortgage Corporation 8.375% AA- 3,373,349
108,000 Federal National Mortgage Association 7.000% AA- 5,005,129
--------------------------------------------------------------------------------------------------------------------------------
Total U.S. Agency 9,108,528
-------------------------------------------------------------------------------------------------------------------
28
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
33,900 United States Cellular Corporation 8.750% A- $ 845,466
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $25 PAR (OR SIMILAR) PREFERRED 564,308,154
SECURITIES (COST $675,497,337)
===================================================================================================================
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (5) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE SENIOR LOAN INTERESTS -- 11.9% (7.6% OF TOTAL INVESTMENTS) (6)
AEROSPACE & DEFENSE - 0.2%
$ 669 DAE Aviation Holdings, Inc., Asset Sale 7.803% 7/31/09 BB- $ 668,638
756 DAE Aviation Holdings, Inc., Term Loan B-1 8.738% 7/31/14 BB- 752,858
572 DAE Aviation Holdings, Inc., Term Loan B-2 8.748% 7/31/13 BB- 569,987
----------------------------------------------------------------------------------------------------------------------------------
1,997 Total Aerospace & Defense 1,991,483
----------------------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.3%
1,669 ACTS Aero Technical Support & Services Inc., Term 8.474% 10/01/14 N/R 1,610,679
Loan
992 American Airlines, Inc., Term Loan 6.852% 12/17/10 BB- 958,206
995 Delta Air Lines, Inc., Term Loan 8.082% 4/30/14 B 950,935
----------------------------------------------------------------------------------------------------------------------------------
3,656 Total Airlines 3,519,820
----------------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.6%
2,582 Building Materials Corporation of America, Term 7.938% 2/22/14 BB 2,185,099
Loan
2,985 Nortek, Inc., Term Loan B 7.100% 8/27/11 Ba2 2,783,117
994 Stile Acquisition Corporation, Canadian Term Loan 7.084% 4/05/13 BB 907,488
993 Stile Acquisition Corporation, Term Loan B 7.084% 4/05/13 BB 906,701
988 TFS Acquisition, Term Loan 8.330% 8/11/13 B+ 967,750
----------------------------------------------------------------------------------------------------------------------------------
8,542 Total Building Products 7,750,155
----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.2%
997 Celanese Holdings LLC, Term Loan 6.979% 4/02/14 BB 964,313
1,990 Hercules Offshore, Inc., Term Loan 6.580% 7/11/13 BB 1,931,046
----------------------------------------------------------------------------------------------------------------------------------
2,987 Total Chemicals 2,895,359
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.2%
179 Aramark Corporation, Letter of Credit 6.705% 1/24/14 BB- 170,867
2,509 Aramark Corporation, Term Loan 6.830% 1/24/14 BB- 2,390,717
----------------------------------------------------------------------------------------------------------------------------------
2,688 Total Commercial Services & Supplies 2,561,584
----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.1%
340 Bluegrass Container Company LLC, Delayed Draw 7.095% 6/30/13 BB 338,288
1,137 Bluegrass Container Company LLC, Term Loan B 7.095% 6/30/13 BB 1,130,592
----------------------------------------------------------------------------------------------------------------------------------
1,477 Total Containers & Packaging 1,468,880
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES - 0.3%
1,995 Cengage Learning Acquisitions, Inc., Term Loan 7.598% 7/05/14 B+ 1,891,232
194 Laureate Education, Inc., Delayed Draw, Term Loan 1.000% 8/17/14 B1 (6,871)
B (7), (8)
1,306 Laureate Education, Inc., Term Loan B 8.729% 8/17/14 B1 1,260,073
----------------------------------------------------------------------------------------------------------------------------------
3,495 Total Diversified Consumer Services 3,144,434
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.3%
1,995 Alltel Communications, Inc., Term Loan B3 7.778% 5/18/15 BB- 1,924,067
1,506 Intelsat, Tranche B-2, Term Loan 7.225% 12/03/13 BB 1,480,770
----------------------------------------------------------------------------------------------------------------------------------
3,501 Total Diversified Telecommunication Services 3,404,837
----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.7%
4,466 Calpine Corporation, DIP Term Loan 7.080% 3/29/09 N/R 4,360,177
1,000 TXU Corporation, Term Loan B-2 8.396% 10/10/14 Ba3 982,876
3,000 TXU Corporation, Term Loan B-3 8.396% 10/10/14 Ba3 2,951,762
----------------------------------------------------------------------------------------------------------------------------------
8,466 Total Electric Utilities 8,294,815
----------------------------------------------------------------------------------------------------------------------------------
29
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (5) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.3%
$ 1,451 Kinder Morgan, Inc., Term Loan B 6.350% 5/30/14 Ba2 $ 1,443,996
1,990 PGS Finance, Inc., Term Loan 6.580% 6/29/15 Ba2 1,934,031
----------------------------------------------------------------------------------------------------------------------------------
3,441 Total Energy Equipment & Services 3,378,027
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3%
3,990 Biomet, Inc., Term Loan 7.858% 12/25/13 BB- 3,952,594
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 1.7%
278 Community Health Systems, Inc., Delayed Draw, Term 0.500% 7/25/14 Ba3 (10,202)
Loan, (7), (8)
5,536 Community Health Systems, Inc., Term Loan 7.331% 7/25/14 BB 5,336,726
499 Concentra, Inc., Term Loan 7.080% 6/25/14 B+ 467,994
5,945 HCA, Inc., Term Loan 7.080% 11/18/13 BB 5,736,654
993 Health Management Associates, Inc., Term Loan 6.580% 2/28/14 Ba2 928,677
477 IASIS Healthcare LLC, Delayed Term Loan, (7) 7.151% 3/14/14 Ba2 329,293
127 IASIS Healthcare LLC, Letter of Credit 4.531% 3/14/14 Ba2 120,880
1,385 IASIS Healthcare LLC, Term Loan 7.064% 3/14/14 Ba2 1,316,705
747 LifePoint Hospitals, Inc., Term Loan B 6.715% 4/18/12 BB 713,928
1,853 Select Medical Corporation, Term Loan 6.997% 2/24/12 Ba2 1,755,891
995 Select Medical Corporation, Term Loan B-2 6.832% 2/24/12 Ba2 942,970
262 Sun Healthcare Group, Inc., Delayed Term Loan 6.973% 4/12/14 Ba2 251,121
404 Sun Healthcare Group, Inc., Synthetic Letter of 6.830% 4/19/14 Ba2 388,014
Credit
1,799 Sun Healthcare Group, Inc., Term Loan 7.171% 4/19/14 Ba2 1,726,580
995 Vanguard Health Holding Company II LLC, 7.095% 9/23/11 Ba3 964,327
Replacement Term Loan
----------------------------------------------------------------------------------------------------------------------------------
22,295 Total Health Care Providers & Services 20,969,558
----------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.6%
985 Cedar Fair LP, Term Loan 6.845% 8/30/12 BB 934,765
134 Travelport, LLC, Letter of Credit 7.080% 8/23/13 BB- 127,662
669 Travelport, LLC, Term Loan 7.080% 8/23/13 BB- 636,240
1,200 Venetian Casino Resort LLC, Delayed Draw, Term 0.750% 5/23/14 BB (71,523)
Loan, (7), (8)
4,776 Venetian Casino Resort LLC, Term Loan 6.580% 5/23/14 BB 4,491,338
968 Wintergames Holdings, Term Loan 8.102% 4/24/08 N/R 960,439
----------------------------------------------------------------------------------------------------------------------------------
8,732 Total Hotels, Restaurants & Leisure 7,078,921
----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.3%
1,084 NRG Energy, Inc., Credit Linked Deposit 6.480% 2/01/13 Ba1 1,035,706
2,347 NRG Energy, Inc., Term Loan 6.580% 2/01/13 Ba1 2,243,264
----------------------------------------------------------------------------------------------------------------------------------
3,431 Total Independent Power Producers & Energy Traders 3,278,970
----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.1%
1,993 Conseco, Inc., Term Loan 6.845% 10/10/13 Ba3 1,836,305
----------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.1%
1,000 Sabre, Inc., Term Loan 6.960% 9/30/14 B+ 914,432
----------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
1,995 First Data Corporation Term Loan, B-1 7.630% 9/24/14 BB- 1,896,373
----------------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.3%
4,000 Wimar OpCo LLC, Term Loan 10.500% 1/03/12 B2 3,991,110
----------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.2%
1,975 Oshkosh Truck Corporation, Term Loan 6.900% 12/06/13 BBB- 1,899,366
----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.5%
2,987 Cequel Communications LLC, Term Loan B 7.212% 11/05/13 BB- 2,800,776
4,075 Charter Communications Operating Holdings, LLC, 6.990% 3/06/14 B+ 3,815,416
Term Loan
1,500 Citadel Broadcasting Corporation, Term Loan 6.465% 6/12/14 BB- 1,364,063
3,980 Discovery Communications Holdings LLC, Term Loan 6.830% 5/14/14 N/R 3,864,083
980 Idearc, Inc., Term Loan 6.830% 11/17/14 BBB- 935,002
2,975 Neilsen Finance LLC, Term Loan 7.276% 8/09/13 Ba3 2,827,057
951 Philadelphia Newspapers, Term Loan 8.750% 6/29/13 N/R 855,005
995 Readers Digest Association, Inc., Term Loan 7.188% 3/02/14 B+ 907,938
5,970 Tribune Company, Term Loan B 7.910% 6/04/14 BB 5,097,634
2,433 Tribune Company, Term Loan X 7.994% 6/04/09 BB 2,354,684
30
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (5) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
MEDIA (continued)
$ 235 Univision Communications, Delayed Term Loan, (7), 0.100% 9/29/14 Ba3 $ (20,260)
(8)
6,765 Univision Communications, Inc., Term Loan 7.207% 9/29/14 Ba3 6,181,611
----------------------------------------------------------------------------------------------------------------------------------
33,846 Total Media 30,983,009
----------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.3%
2,975 Georgia-Pacific Corporation, Term Loan B 6.866% 12/21/12 BB+ 2,839,315
45 Ply Gem Industries, Inc., Canadian Term Loan 7.580% 8/15/11 BB- 41,099
1,435 Ply Gem Industries, Inc., Term Loan B3 7.580% 8/15/11 BB- 1,313,853
----------------------------------------------------------------------------------------------------------------------------------
4,455 Total Paper & Forest Products 4,194,267
----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.3%
1,000 LNR Property Corporation, Term Loan B 7.630% 7/12/11 BB 956,875
2,985 Realogy Corporation Delayed Draw Term Loan 8.240% 10/01/13 BB- 2,620,184
----------------------------------------------------------------------------------------------------------------------------------
3,985 Total Real Estate Management & Development 3,577,059
----------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.4%
5,419 Swift Transportation Company, Inc., Term Loan 7.938% 5/10/14 BB- 4,472,042
----------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.3%
2,787 Dealer Computer Services, Inc., Term Loan 6.843% 10/26/12 BB 2,706,945
1,256 Intergraph Corporation, Term Loan 7.075% 5/29/13 BB- 1,210,539
----------------------------------------------------------------------------------------------------------------------------------
4,043 Total Software 3,917,484
----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.8%
1,977 Blockbuster, Inc., Tranene B Term Loan 9.212% 8/20/11 B 1,905,380
4,442 Burlington Coat Factory Warehouse Corporation, 7.320% 5/28/11 B2 3,938,367
Term Loan
3,459 Michaels Stores, Inc., Term Loan 7.614% 10/31/13 B 3,191,277
1,500 TRU 2005 RE Holding Co I LLC, Term Loan 8.225% 12/08/08 B3 1,449,219
----------------------------------------------------------------------------------------------------------------------------------
11,378 Total Specialty Retail 10,484,243
----------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.4%
4,000 Asurion Corporation, Term Loan 7.878% 7/03/14 N/R 3,868,748
995 Cricket Communications, Inc., Term Loan 7.830% 1/10/11 Ba2 981,711
----------------------------------------------------------------------------------------------------------------------------------
4,995 Total Wireless Telecommunication Services 4,850,459
----------------------------------------------------------------------------------------------------------------------------------
$ 157,782 TOTAL VARIABLE RATE SENIOR LOAN INTERESTS (COST 146,705,586
$153,688,363)
==================================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS - 10.4% (6.6% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.3%
$ 400 Alliant Techsystems, Inc., Convertible Bonds 2.750% 9/15/11 B+ $ 529,500
400 Alliant Techsystems, Inc., Convertible Bonds 2.750% 2/15/24 B+ 594,500
450 DRS Technologies, Inc., Convertible Bonds, 144A 2.000% 2/01/26 B+ 491,063
600 L-3 Communications Corporation, Convertible Bond 3.000% 8/01/35 BB+ 728,250
750 Lockheed Martin Corporation 4.620% 8/15/33 A- 1,105,350
-------------------------------------------------------------------------------------------------------------------------------
2,600 Total Aerospace & Defense 3,448,663
-------------------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.4%
3,650 Amgen Inc., 144A 0.125% 2/01/11 A+ 3,344,313
900 Genzyme Corporation 1.250% 12/01/23 BBB 1,041,750
-------------------------------------------------------------------------------------------------------------------------------
4,550 Total Biotechnology 4,386,063
-------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
250 BlackRock Inc. 2.625% 2/15/35 A+ 539,375
-------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.2%
2,750 U.S. Bancorp, Convertible Bonds 3.148% 8/06/37 AA 2,746,150
-------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.6%
550 Ciena Corporation, Convertible Bond 0.875% 6/15/17 B 582,313
2,400 Ciena Corporation 3.750% 2/01/08 B 2,400,000
200 CommScope Inc. 1.000% 3/15/24 B 459,000
31
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT (continued)
$ 250 Juniper Networks Inc., Convertible Subordinated 0.000% 6/15/08 BB $ 416,563
Notes, (4)
660 Liberty Media Corporation, Senior Debentures 3.500% 1/15/31 BB+ 493,035
Exchangeable for Motorola Common Stock
500 Lucent Technologies Inc., Series B 2.750% 6/15/25 BB- 415,625
750 Lucent Technologies Inc. 2.750% 6/15/23 BB- 688,125
719 Nortel Networks Corp. 4.250% 9/01/08 B- 709,114
750 Nortel Networks Corporation, Convertible Bonds, 1.750% 4/15/12 B- 606,563
144A
600 Nortel Networks Corporation, Convertible Bonds, 2.125% 4/15/14 B- 468,000
144A
-------------------------------------------------------------------------------------------------------------------------------
7,379 Total Communications Equipment 7,238,338
-------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.4%
1,250 EMC Corporation, Convertible Bonds 144A 1.750% 12/01/11 BBB+ 1,695,313
1,000 EMC Corporation, Convertible Bonds 144A 1.750% 12/01/13 BBB+ 1,376,250
200 Maxtor Corporation, Convertible Bonds 2.375% 8/15/12 BB+ 318,750
1,250 Sandisk Corporation, Convertible Bond 1.000% 5/15/13 BB- 1,010,938
-------------------------------------------------------------------------------------------------------------------------------
3,700 Total Computers & Peripherals 4,401,251
-------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.1%
250 Fluor Corporation, Convertible Bonds 1.500% 2/15/24 A3 650,625
250 Quanta Services, Inc., Convertible Bonds 4.500% 10/01/23 B+ 598,125
-------------------------------------------------------------------------------------------------------------------------------
500 Total Construction & Engineering 1,248,750
-------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
550 Sealed Air Corporation, 144A 3.000% 6/30/33 BBB 529,375
-------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.0%
250 Leucadia National Corporation, Convertible Bonds 3.750% 4/15/14 BB- 543,125
-------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1%
1,000 Qwest Communications International Inc., 3.500% 11/15/25 B+ 1,338,750
Convertible Bond
-------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
500 Centerpoint Energy Inc., Convertible Bond 3.750% 5/15/23 BBB- 768,750
300 Covanta Holding Corporation, Convertible Bonds 1.000% 2/01/27 B1 336,000
-------------------------------------------------------------------------------------------------------------------------------
800 Total Electric Utilities 1,104,750
-------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.1%
450 General Cable Corporation, Convertible Bonds 0.875% 11/15/13 B+ 725,063
-------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.2%
500 Anixter Internatinal Inc., Convertible Bond, (4) 0.000% 7/07/33 BB- 476,250
350 Itron Inc. 2.500% 8/01/26 B- 563,063
500 Tech Data Corporation, Convertible Bonds 2.750% 12/15/26 BBB- 487,500
500 Vishay Intertechnology Inc. 3.625% 8/01/23 B+ 500,000
-------------------------------------------------------------------------------------------------------------------------------
1,850 Total Electronic Equipment & Instruments 2,026,813
-------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 1.6%
300 Cooper Cameron Corporation 1.500% 5/15/24 BBB+ 840,000
850 Halliburton Company, Convertible Bond 3.125% 7/15/23 A 1,726,563
4,125 Nabors Industries Inc., Convertible Bond Series 0.940% 5/15/11 A- 3,898,125
144A
1,650 Nabors Industries Inc., Convertible Bond Series 0.940% 5/15/11 A- 1,559,250
144A
4,850 Nabors Industries Inc., (4) 0.000% 6/15/23 N/A 4,880,313
300 Pride International Inc. 3.250% 5/01/33 BB+ 405,750
100 Schlumberger Limited, Convertible Bonds 1.500% 6/01/23 A+ 272,000
550 Schlumberger Limited 2.125% 6/01/23 A+ 1,360,563
2,000 Transocean Inc. 1.500% 12/15/37 BBB+ 2,187,500
2,000 Transocean Inc. 1.500% 12/15/37 BBB+ 2,182,500
-------------------------------------------------------------------------------------------------------------------------------
16,725 Total Energy Equipment & Services 19,312,564
-------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.2%
900 Archer Daniels Midland Company, Convertible Bonds 0.875% 2/15/14 A 1,090,125
200 Archer Daniels Midland Company, Convertible Bonds 0.875% 2/15/14 A 242,250
1,000 General Mills, Inc., Convertible Bonds 5.134% 4/11/37 BBB+ 1,002,500
-------------------------------------------------------------------------------------------------------------------------------
2,100 Total Food Products 2,334,875
-------------------------------------------------------------------------------------------------------------------------------
32
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
$ 550 Advanced Medical Optics 3.250% 8/01/26 B- $ 435,875
350 American Medical Systems Holdings, Convertible 3.250% 7/01/36 B 347,375
Bond
350 Beckman Coulter Inc., Convertible Bonds, 144A 2.500% 12/15/36 BBB 408,188
1,100 Hologic Inc. 2.000% 12/15/37 B 1,194,875
2,800 Medtronic, Inc., Convertible Bond 1.500% 4/15/11 AA- 3,003,000
250 Medtronic, Inc. 1.500% 4/15/11 AA- 268,125
725 Saint Jude Medical, Inc., Convertible Bonds 1.220% 12/15/08 BBB+ 730,438
-------------------------------------------------------------------------------------------------------------------------------
6,125 Total Health Care Equipment & Supplies 6,387,876
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.6%
900 Health Management Associates Inc. 1.500% 8/01/23 Baa3 886,500
400 Laboratory Corporation of America Holdings, (4) 0.000% 9/11/21 BBB- 412,000
700 LifePoint Hospitals, Inc., Convertible Bonds 3.500% 5/15/14 B 625,625
250 Manor Care, Inc., Convertible Bond 2.000% 6/01/36 B 337,813
600 Manor Care, Inc. 2.125% 8/01/35 Baa3 900,750
6,090 Omnicare, Inc. 3.250% 12/15/35 B+ 4,468,538
225 Saint Jude Medical, Inc., Convertible Bonds 1.220% 12/15/08 BBB+ 226,688
-------------------------------------------------------------------------------------------------------------------------------
9,165 Total Health Care Providers & Services 7,857,914
-------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.2%
600 Caesars Entertainment Inc. 5.243% 4/15/24 Baa3 817,320
600 Carnival Corporation 2.000% 4/15/21 A- 704,250
500 International Game Technology 2.600% 12/15/36 BBB 510,000
-------------------------------------------------------------------------------------------------------------------------------
1,700 Total Hotels, Restaurants & Leisure 2,031,570
-------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.3%
750 American Financial Group Inc. 1.486% 6/02/33 BBB 388,125
2,750 Prudential Financial, Inc., Convertible Bonds 2.741% 12/12/36 A+ 2,754,400
-------------------------------------------------------------------------------------------------------------------------------
3,500 Total Insurance 3,142,525
-------------------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.1%
500 Amazon.com Inc., Convertible Bonds 4.750% 2/01/09 Ba3 609,375
150 Priceline.com, Inc., Convertible Bonds 0.500% 9/30/11 B+ 431,438
150 Priceline.com, Inc., Convertible Bonds 0.750% 9/30/13 B+ 436,500
-------------------------------------------------------------------------------------------------------------------------------
800 Total Internet & Catalog Retail 1,477,313
-------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.0%
500 Yahoo! Inc., Convertible Bond, (4) 0.000% 4/01/08 BBB- 584,375
-------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
1,000 Electronic Data Systems Corporation, Convertible 3.875% 7/15/23 BBB- 998,750
Bonds
-------------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.0%
500 Eastman Kodak Company 3.375% 10/15/33 B 511,250
-------------------------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.2%
350 Apogent Technologies, Inc., Convertible Bonds 3.716% 12/15/33 BBB+ 703,535
500 Charles River Laboratories International, Inc. 2.250% 6/15/13 BB- 736,875
250 Fisher Scientific International, Inc., 2.500% 10/01/23 BBB+ 618,125
Convertible Bonds
-------------------------------------------------------------------------------------------------------------------------------
1,100 Total Life Sciences Tools & Services 2,058,535
-------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.2%
800 Danaher Corporation, Convertible Bonds, (4) 0.000% 1/22/21 A+ 1,022,000
250 Kaydon Corporation, Convertible Bonds 4.000% 5/23/23 BB- 470,625
500 Trinity Industries Inc., Convertible Bonds 3.875% 6/01/36 Ba2 450,625
-------------------------------------------------------------------------------------------------------------------------------
1,550 Total Machinery 1,943,250
-------------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.9%
600 ELF Special Financing Limited, Convertible Bonds, 5.341% 6/15/09 Ba3 569,580
144A
2,250 Getty Images, Inc., Convertible Bonds 0.500% 6/09/23 Ba2 2,188,125
300 Hasbro Inc. 2.750% 12/01/21 BBB 382,125
250 Interpublic Group Companies Inc. 4.500% 3/15/23 Ba3 255,000
500 Interpublic Group, Inc., Convertible Bonds 4.250% 3/15/23 Ba3 491,875
300 Lamar Advertising Company, Convertible 2.875% 12/31/10 B1 349,875
650 Liberty Media Corporation, Senior Debentures, 3.250% 3/15/31 BB+ 478,563
Exchangeable for Class B Viacom Common Stock
33
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
MEDIA (continued)
$ 1,100 Liberty Media Corporation, Senior Debentures, 4.000% 11/15/29 BB+ $ 715,000
Exchangeable for PCS Common Stock, Series 1
1,500 Liberty Media Corporation 0.750% 3/30/23 BB+ 1,569,375
550 Omnicom Group, Inc., (4) 0.000% 7/01/38 A- 598,125
1,250 Omnicom Group, Inc., (4) 0.000% 2/07/31 A- 1,296,875
500 Sinclair Broadcast Group, Inc., Convertible Bonds 3.000% 5/15/27 B 450,000
1,500 Walt Disney Company, Convertible Senior Notes 2.125% 4/15/23 A 1,717,500
-------------------------------------------------------------------------------------------------------------------------------
11,250 Total Media 11,062,018
-------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.2%
2,000 Gold Reserve, Inc., Convertible Bonds 5.500% 6/15/22 N/A 1,975,000
650 Newmont Mining Corporation 1.625% 7/15/17 BBB+ 811,688
200 Newmont Mining Corp., Senior Convertible Note 1.625% 7/15/17 BBB 249,750
-------------------------------------------------------------------------------------------------------------------------------
2,850 Total Metals & Mining 3,036,438
-------------------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 0.0%
250 Saks, Inc., Convertible Bonds 2.000% 3/15/24 B+ 444,688
-------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.8%
800 Chesapeake Energy Corporation, 144A 2.750% 11/15/35 BB 940,000
1,150 Chesapeake Energy Corporation, Convertible Bonds 2.500% 5/15/37 BB 1,283,688
600 Devon Energy Corporation 4.900% 8/15/08 Baa1 1,049,250
5,350 Peabody Energy Corp., Convertible Bond 4.750% 12/15/66 Ba3 6,807,875
-------------------------------------------------------------------------------------------------------------------------------
7,900 Total Oil, Gas & Consumable Fuels 10,080,813
-------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.5%
500 Allergan Inc., Convertible Bond 1.500% 4/01/26 A 588,125
750 Bristol-Myers Squibb Company, Convertible Bond 4.491% 9/15/23 A+ 755,625
650 Myland Labs, Inc., Convertible Bonds 1.250% 3/15/12 B 593,125
650 Teva Pharmaceutical Finance, Series A 0.500% 2/01/24 BBB 817,375
600 Teva Pharmaceutical Finance, Series B 0.250% 2/01/24 BBB 822,750
750 Watson Pharmaceuticals Inc., Convertible Bond 1.750% 3/15/23 BB+ 714,375
1,500 Wyeth, Convertible Bond 4.888% 1/15/24 A+ 1,590,060
-------------------------------------------------------------------------------------------------------------------------------
5,400 Total Pharmaceuticals 5,881,435
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.7%
1,250 Boston Properties Limited Partnership, 2.875% 2/15/37 BBB+ 1,167,188
Convertible Bonds, 144A
450 Brandywine Operating Partnership, Convertible 3.875% 10/15/26 BBB- 397,125
Bonds
550 BRE Properties Inc., Convertible Bond 4.125% 8/15/26 BBB 508,750
750 Developers Diversified Realty Corporation, 3.000% 3/15/12 BBB 644,063
Convertible Bonds
500 Duke Realty Corporation, Series D 3.750% 12/01/11 BBB+ 460,000
800 Hospitality Properties Trust, Convertible Bonds 3.800% 3/15/27 BBB 715,000
500 Host Hotels & Resorts Inc, Convertible Bonds, 2.625% 4/15/27 BB 429,375
144A
650 Host Marriot LP, Convertible Bonds, 144A 3.250% 4/15/24 Ba1 747,500
1,750 Prologis, Convertible Bonds, 144A 2.250% 4/01/37 BBB+ 1,732,500
650 Vornado Realty Trust, Convertible Bonds 2.850% 4/01/27 BBB 577,688
700 Vornado Realty, Convertible Bond 3.875% 4/15/25 BBB 790,125
650 Weingarten Realty Investment Trust, Convertible 3.950% 8/01/26 BBB+ 611,813
Bonds
-------------------------------------------------------------------------------------------------------------------------------
9,200 Total Real Estate 8,781,127
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0%
400 Forest City Enterprises, Inc., Convertible Bonds 3.625% 10/15/11 BB- 376,080
-------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.0%
250 CSX Corporation, (4) 0.000% 10/30/21 BBB- 391,250
-------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.5%
1,000 Advanced Micro Devices, Inc., Convertible Bonds 5.750% 8/15/12 B 800,000
1,000 Advanced Micro Devices, Inc., Convertible Bonds 6.000% 5/01/15 B 716,250
550 Advanced Micro Devices, Inc., Convertible Bonds 6.000% 5/01/15 B 393,938
1,550 Intel Corporation, Convertible Bond 2.950% 12/15/35 A- 1,679,813
850 Micron Technology, Inc. 1.875% 6/01/14 BB- 681,063
500 ON Semiconductor Corporation 2.625% 12/15/26 B 545,000
750 Xilinx Inc., Convertible Bond, 144A 3.125% 3/15/37 BB 648,750
-------------------------------------------------------------------------------------------------------------------------------
6,200 Total Semiconductors & Equipment 5,464,814
-------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.1%
$ 400 Computer Associates International Inc., 1.625% 12/15/09 Ba1 $ 528,000
Convertible Bond, Series 144A
500 Red Hat Inc., Convertible Bond 0.500% 1/15/24 B+ 508,750
-------------------------------------------------------------------------------------------------------------------------------
900 Total Software 1,036,750
-------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.0%
250 TJX Companies, Inc., (4) 0.000% 2/13/21 A- 241,563
-------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.0%
300 Iconix Brand Group, Inc., Convertible Notes 1.875% 6/30/12 B- 291,000
-------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.1%
1,550 Countrywide Financial Corporation, Convertible 1.714% 4/15/37 BBB+ 1,216,440
Bonds, 144A
-------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
300 American Tower Corporation 3.000% 8/15/12 BB+ 637,492
1,150 Liberty Media Corporation Convertible Bonds 3.750% 2/15/30 BB+ 654,055
-------------------------------------------------------------------------------------------------------------------------------
1,450 Total Wireless Telecommunication Services 1,291,547
-------------------------------------------------------------------------------------------------------------------------------
$ 119,544 TOTAL CONVERTIBLE BONDS (COST $126,917,460) 128,513,226
===============================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 10.2% (6.7% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.1%
$ 1,000 Hexcel Corporation, Term Loan 6.750% 2/01/15 B+ $ 985,000
------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.0%
500 Keystone Automotive Operations Inc. 9.750% 11/01/13 CCC 370,000
------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
500 LVB Acquisition Merger LLC 10.000% 10/15/17 B- 512,500
------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.2%
1,000 Nell AF Sarl 8.375% 8/15/15 B- 812,500
1,500 Rockwood Specialties Group Inc., Series WI 7.500% 11/15/14 B 1,492,500
------------------------------------------------------------------------------------------------------------------------------
2,500 Total Chemicals 2,305,000
------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.3%
2,000 Owens-Brockway Glass Containers, Guaranteed 8.250% 5/15/13 B 2,085,000
Senior Note
2,000 Owens-Illinois Inc. 7.800% 5/15/18 B 2,045,000
------------------------------------------------------------------------------------------------------------------------------
4,000 Total Containers & Packaging 4,130,000
------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2%
2,000 Intelsat Subsidiary Holding Company Limited 8.500% 1/15/13 B 2,020,000
------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
1,000 Sierra Pacific Resources, Series 2006 6.750% 8/15/17 Ba3 1,016,591
------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.1%
1,500 Pride International Inc. 7.375% 7/15/14 BB+ 1,548,750
------------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.2%
2,000 Stater Brothers Holdings Inc. 8.125% 6/15/12 B+ 1,985,000
------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.2%
2,243 Dole Foods Company 7.875% 7/15/13 B- 2,074,775
------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.7%
3,000 Community Health Systems, Inc. 8.875% 7/15/15 B- 3,071,250
1,700 HCA Inc. 9.125% 11/15/14 BB- 1,772,250
700 HCA Inc. 9.250% 11/15/16 BB- 736,750
2,500 US Oncology Inc. 10.750% 8/15/14 B3 2,481,250
------------------------------------------------------------------------------------------------------------------------------
7,900 Total Health Care Providers & Services 8,061,500
------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 1.6%
2,000 Boyd Gaming Corporation 7.750% 12/15/12 B+ 2,035,000
1,500 Herbst Gaming Inc. 7.000% 11/15/14 CCC+ 892,500
35
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE (continued)
$ 1,400 Jacobs Entertainment Inc. 9.750% 6/15/14 B- $ 1,309,000
2,000 Landry's Restaurants Inc. 9.500% 12/15/14 B3 1,990,000
1,600 Park Place Entertainment 8.125% 5/15/11 Ba1 1,496,000
2,500 Park Place Entertainment 7.000% 4/15/13 Baa3 2,863,355
2,000 Pinnacle Entertainment Inc. 8.250% 3/15/12 B- 2,030,000
750 Pinnacle Entertainment Inc. 8.750% 10/01/13 B- 766,875
1,750 Seminole Hard Rock Entertainment, Inc. 7.651% 3/15/14 BB 1,680,000
4,000 Universal City Development Partners 11.750% 4/01/10 B1 4,150,000
------------------------------------------------------------------------------------------------------------------------------
19,500 Total Hotels, Restaurants & Leisure 19,212,730
------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.1%
1,650 Central Garden & Pet Company, Senior Subordinate 9.125% 2/01/13 CCC+ 1,423,125
Notes
------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
500 Mirant North America LLC 7.375% 12/31/13 B1 503,750
400 NRG Energy Inc. 7.250% 2/01/14 B1 391,000
400 NRG Energy Inc. 7.375% 2/01/16 B1 391,000
------------------------------------------------------------------------------------------------------------------------------
1,300 Total Independent Power Producers & Energy 1,285,750
Traders
------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.8%
3,500 First Data Corporation 9.875% 9/24/15 B- 3,259,375
1,625 Global Cash Access LLC 8.750% 3/15/12 B 1,535,625
4,750 Sungard Data Systems Inc. 9.125% 8/15/13 B- 4,856,875
------------------------------------------------------------------------------------------------------------------------------
9,875 Total IT Services 9,651,875
------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.2%
2,000 Greenbrier Companies, Inc. 8.375% 5/15/15 B+ 1,920,000
------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.1%
4,000 Allbritton Communications Company, Series B 7.750% 12/15/12 B1 3,980,000
1,000 Cablevision Systems Corporation, Series B 8.125% 8/15/09 B+ 1,020,000
5,000 Cablevision Systems Corporation 7.250% 7/15/08 B+ 5,018,750
2,000 Charter Communications Operating LLC, 144A 8.000% 4/30/12 B+ 1,940,000
1,975 Medianews Group Inc. 6.375% 4/01/14 B 1,194,875
1,950 Panamsat Corporation 9.000% 8/15/14 B2 1,969,500
4,000 R.H. Donnelley Corporation 8.875% 10/15/17 B 3,720,000
4,550 Vertis Inc. 9.750% 4/01/09 B1 4,208,750
4,000 Young Broadcasting Inc., Senior Subordinated Note 10.000% 3/01/11 Caa1 3,145,000
------------------------------------------------------------------------------------------------------------------------------
28,475 Total Media 26,196,875
------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.3%
3,700 MagIndustries Corporation, (12) 11.000% 12/14/12 N/A 3,720,901
------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.1%
1,600 Dynegy Holdings, Inc., Term Loan 8.375% 5/01/16 B2 1,572,000
------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.7%
2,400 Baytex Energy Ltd 9.625% 7/15/10 B- 2,460,000
400 Chaparral Energy Inc. 8.500% 12/01/15 CCC+ 362,000
2,345 Chesapeake Energy Corporation 7.750% 1/15/15 BB 2,403,625
1,000 Hilcorp Energy I LP/Hilcorp Finance Company, 7.750% 11/01/15 B 987,500
Series 144A
2,000 SemGroup LP, 144A 8.750% 11/15/15 B1 1,910,000
1,000 Whiting Petroleum Corporation 7.000% 2/01/14 B1 995,000
------------------------------------------------------------------------------------------------------------------------------
9,145 Total Oil, Gas & Consumable Fuels 9,118,125
------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.6%
5,000 Georgia-Pacific Corporation 8.125% 5/15/11 B 5,100,000
2,000 Georgia-Pacific Corporation 7.700% 6/15/15 B 1,980,000
------------------------------------------------------------------------------------------------------------------------------
7,000 Total Paper & Forest Products 7,080,000
------------------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.1%
1,500 Prestige Brands Inc. 9.250% 4/15/12 B- 1,503,750
------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.4%
3,000 Felcor Lodging Trust Inc., 144A 6.788% 12/01/11 Ba3 2,947,500
1,000 Trustreet Properties, Inc. 7.500% 4/01/15 AAA 1,077,262
36
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE (continued)
$ 500 Ventas Realty LP, Series WI 7.125% 6/01/15 BB+ $ 507,500
------------------------------------------------------------------------------------------------------------------------------
4,500 Total Real Estate 4,532,262
------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.3%
1,600 Avago Technologies Finance Pte Limited 10.375% 12/01/13 B 1,682,000
2,000 NXP BV 7.974% 10/15/13 BB- 1,847,500
------------------------------------------------------------------------------------------------------------------------------
3,600 Total Semiconductors & Equipment 3,529,500
------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.2%
3,000 Telcorida Technologies, Inc. 8.716% 7/15/12 B 2,692,500
------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.2%
3,000 Warnaco Inc., Senior Notes 8.875% 6/15/13 BB- 3,060,000
------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.2%
3,000 Jostens IH Corporation 7.625% 10/01/12 B1 3,030,000
------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
1,500 IPCS, Inc. 7.036% 5/01/13 B1 1,421,250
------------------------------------------------------------------------------------------------------------------------------
$ 129,488 TOTAL CORPORATE BONDS (COST $131,441,609) 125,959,759
==============================================================================================================================
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL PREFERRED SECURITIES - 29.6% (18.8% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 3.6%
1,250 C.A. Preferred Fund Trust II 7.000% 10/30/49 A1 $ 1,217,274
20,800 C.A. Preferred Funding Trust 7.000% 1/30/49 A1 20,282,850
10,700 Dresdner Funding Trust I, 144A 8.151% 6/30/31 A1 10,941,959
1,600 Kleinwort Benson Group PLC 5.377% 12/31/99 N/A 1,288,000
1,600 MUFG Capital Finance 2 4.850% 7/25/56 BBB+ 1,985,336
8,000 UBS Preferred Funding Trust I 8.622% 10/29/49 Aa2 8,625,872
----------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 44,341,291
------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 17.6%
3,000 AB Svensk Exportkredit, 144A 6.375% 10/27/49 AA- 2,984,136
9,050 Abbey National Capital Trust I 8.963% 6/30/50 A+ 10,658,710
2,155 AgFirst Farm Credit Bank 8.393% 12/15/16 A- 2,294,213
6,500 AgFirst Farm Credit Bank 7.300% 12/15/53 A- 6,131,678
3,000 Bank One Capital III 8.750% 9/01/30 Aa3 3,482,808
2,000 BanPonce Trust I, Series A 8.327% 2/01/27 Baa1 2,088,686
13,030 Barclays Bank PLC, 144A 8.550% 6/15/49 Aa3 13,734,623
1,500 Barclays Bank PLC 7.434% 12/15/57 Aa3 1,561,464
2,200 BBVA International Perferred S.A., Unipersonal 5.919% 10/18/49 A1 1,929,024
4,000 BNP Paribas 7.195% 12/25/57 AA- 3,955,560
700 Capital One Capital IV Corporation 6.745% 2/17/37 Baa1 521,842
8,000 CBG Florida REIT Corporation 7.114% 11/15/49 Baa3 7,445,784
3,000 Centura Capital Trust I, 144A 8.845% 6/01/27 A2 3,132,600
1,500 DBS Capital Funding Corporation, 144A 7.657% 3/15/49 Aa3 1,603,968
1,400 Den Norske Bank, 144A 7.729% 6/29/49 Aa3 1,492,788
6,200 First Empire Capital Trust I 8.234% 2/01/27 A3 6,468,987
2,000 First Midwest Bancorp Inc. 6.950% 12/01/33 Baa1 1,835,218
1,800 HBOS Capital Funding LP, Notes 6.850% 3/23/49 A1 1,578,613
16,200 HBOS PLC, Series 144A 6.413% 4/01/49 A1 13,218,908
2,400 HSBC Capital Funding LP, 144A 9.547% 12/31/49 A1 2,624,616
5,750 HSBC Capital Funding LP, Debt 10.176% 6/30/50 A1 7,277,649
11,000 KBC Bank Fund Trust III, 144A 9.860% 5/02/50 A1 11,822,382
4,800 Lloyds TSB Bank PLC, Subordinated Note 6.900% 11/22/49 Aa2 4,666,152
11,500 Mizuho Financial Group 8.375% 4/27/49 Aa3 11,622,935
5,000 NB Capital Trust IV 8.250% 4/15/27 Aa3 5,192,500
8,000 North Fork Capital Trust II 8.000% 12/15/27 Baa1 7,538,048
4,500 Northgroup Preferred Capital Corporation, 144A 6.378% 10/15/57 A1 3,989,286
600 Reliance Capital Trust I, Series B 8.170% 5/01/28 N/R 630,875
2,000 Royal Bank of Scotland Group PLC, Series U 7.640% 3/31/49 A1 2,059,702
2,500 Shinsei Finance II Cayman Limited, Perpetual 7.160% 7/25/49 Baa2 2,116,408
Maturity, 144A
8,000 Sparebanken Rogaland, Notes, 144A 6.443% 5/01/49 A2 7,904,216
37
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
4,000 Standard Chartered PLC, 144A 7.014% 1/30/58 BBB+ $ 3,798,716
9,450 Swedbank ForeningsSparbanken AB, 144A 9.000% 9/17/50 Aa3 10,097,675
4,000 Unicredito Italiano Capital Trust, 144A 9.200% 4/05/51 A1 4,361,728
800 Union Bank of Norway 7.068% 11/19/49 A2 1,206,472
-- (9) Union Planters Preferred Fund, 144A 7.750% 7/15/53 A2 34,078,125
14,200 Washington Mutual Preferred Funding Cayman, Series 7.250% 3/15/49 BBB 9,341,243
A-1, 144A
----------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 216,448,338
------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 1.2%
3,100 Fulton Capital Trust I 6.290% 2/01/36 A3 2,335,785
10,400 JPMorgan Chase Capital Trust XVIII 6.950% 8/17/36 Aa3 9,908,111
2,800 Old Mutual Capital Funding, Notes 8.000% 6/22/53 Baa2 2,807,840
----------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 15,051,736
------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.9%
10 Centaur Funding Corporation, Series B, 144A 9.080% 4/21/20 BBB 11,556,343
----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 5.2%
1,000 AMBAC Financial Group Inc. 6.150% 2/15/87 Aa3 732,420
2,300 American General Capital II 8.500% 7/01/30 Aa3 2,697,599
13,000 AXA S.A., 144A 6.463% 12/14/49 BBB+ 11,728,223
2,000 Liberty Mutual Group 7.800% 3/15/37 Baa3 1,783,750
4,400 MetLife Inc. 6.400% 12/15/66 BBB+ 4,045,153
1,150 Nationwide Financial Services Capital Trust 7.899% 3/01/37 Baa1 1,184,832
6,500 Nationwide Financial Services Inc. 6.750% 5/15/67 Baa1 6,005,311
5,500 Oil Insurance Limited, 144A 7.558% 12/30/49 Baa1 5,621,704
7,600 Progressive Corporation 6.700% 6/15/37 A2 7,067,582
1,100 Prudential PLC 6.500% 6/29/49 A 987,828
9,900 QBE Capital Funding Trust II, 144A 6.797% 6/01/49 BBB 9,496,050
14,600 XL Capital, Limited 6.500% 10/15/57 BBB 12,786,928
----------------------------------------------------------------------------------------------------------------------------------
Total Insurance 64,137,380
------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.5%
6,110 KN Capital Trust III 7.630% 4/15/28 B1 5,541,770
----------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.5%
6,400 Burlington Northern Santa Fe Funding Trust I 6.613% 12/15/55 BBB 5,991,302
----------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.1%
1,500 Washington Mutual Preferred Funding Trust II 6.665% 3/15/57 BBB 886,289
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL PREFERRED SECURITIES (COST 363,954,449
$391,438,283)
==================================================================================================================
SHARES DESCRIPTION (1) VALUE
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 2.4% (1.5% OF TOTAL INVESTMENTS)
65,094 Blackrock Preferred and Corporate Income $ 1,044,759
Strategies Fund
504,716 Blackrock Preferred Income Strategies Fund 8,040,126
59,226 Blackrock Preferred Opportunity Trust 1,025,202
542,663 Flaherty and Crumrine/Claymore Preferred 8,769,434
Securities Income Fund Inc.
81,797 Flaherty and Crumrine/Claymore Total Return Fund 1,380,733
Inc.
50,586 John Hancock Preferred Income Fund 959,616
52,411 John Hancock Preferred Income Fund II 981,134
388,926 John Hancock Preferred Income Fund III 7,016,225
-----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES (COST $35,848,012) 29,217,229
================================================================================================================
SHARES DESCRIPTION (1) VALUE
-----------------------------------------------------------------------------------------------------------------------------
WARRANTS - 0.0% (0.0% OF TOTAL INVESTMENTS)
647,500 MagIndustries Corporation, (12) $ 282,107
-----------------------------------------------------------------------------------------------------------------------------
TOTAL WARRANTS (COST $281,919) 282,107
================================================================================================================
38
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY VALUE
-------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.1% (2.0% OF TOTAL INVESTMENTS)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 0.6%
$ 7,000 United States of America Treasury Bills, (4) 0.000% 1/10/08 $ 6,991,521
-------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 2.5%
20,836 Repurchase Agreement with Fixed Income Clearing 1.000% 1/02/08 20,836,052
Corporation, dated 12/31/07, repurchase price
$20,837,210, collateralized by $19,705,000 U.S.
Treasury Notes, 4.875%, due 8/15/16, value
$21,256,769
2 Repurchase Agreement with Fixed Income Clearing 1.000% 1/02/08 1,883
Corporation, dated 12/31/07, repurchase price
$1,883, collateralized by $5,000 U.S. Treasury
Notes, 4.875%, due 8/15/16, value $5,394
10,009 Repurchase Agreement with Fixed Income Clearing 1.000% 1/02/08 10,008,864
Corporation, dated 12/31/07, repurchase price
$10,009,420, collateralized by $9,345,000 U.S.
Treasury Notes, 6.500%, due 2/15/10, value
$10,209,413
-------------------------------------------------------------------------------------------------------------------------------
$ 37,847 TOTAL SHORT-TERM INVESTMENTS (COST $37,838,320) 37,838,320
===============================================================================================================================
TOTAL INVESTMENTS (COST $2,071,588,136) - 157.1% 1,932,706,888
================================================================================================================
SHARES DESCRIPTION (1) VALUE
-----------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS SOLD SHORT -- (0.7)%
BEVERAGES -- (0.0)%
(14,800) Hansen Natural Corporation $ (655,492)
-----------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS -- (0.1)%
(3,600) Apple, Inc., (2) (713,088)
-----------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES -- (0.1)%
(8,000) Alcon Inc. (1,144,320)
-----------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES -- (0.1)%
(23,200) Bankrate Inc., (2) (1,115,688)
-----------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS -- (0.3)%
(19,800) Allergan, Inc. (1,271,952)
(50,100) Merck & Co. Inc. (2,911,311)
-----------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals (4,183,263)
----------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL -- (0.1)%
(8,600) AutoZone, Inc., (2) (1,031,226)
---------- ----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS SOLD SHORT (PROCEEDS (8,843,077)
$8,905,544)
================================================================================================================
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (10) DATE PRICE VALUE
----------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - (0.6)%
(2,100) Allied Waste Industries $(2,625,000) 1/19/08 $ 12.5 $ (21,000)
(1,175) Allied Waste Industries (1,468,750) 1/19/08 12.5 (11,750)
(330) Amgen, Inc. (1,897,500) 1/19/08 57.5 (1,320)
(249) Amgen, Inc. (1,245,000) 4/19/08 50.0 (44,696)
(990) AngloGold Limited (4,455,000) 1/19/08 45.0 (74,250)
(1,530) Apex Silver Mines Limited (3,060,000) 1/19/08 20.0 (7,650)
(450) Arch Coal Inc. (1,350,000) 1/19/08 30.0 (670,500)
(415) Astrazenica PLC (2,075,000) 1/19/08 50.0 (2,075)
(315) Astrazenica PLC (1,732,500) 1/19/08 55.0 (1,575)
(560) Astrazenica PLC (2,520,000) 7/19/08 45.0 (128,800)
(1,060) Barrick Gold Corporation (3,445,000) 1/19/08 32.5 (1,022,900)
(910) BP Amoco, PLC (6,825,000) 1/19/08 75.0 (72,800)
(1,060) Chunghwa Telecom Company Limited (1,855,000) 3/22/08 17.5 (540,600)
(1,050) Gold Fields Limited (1,837,500) 1/19/08 17.5 (5,250)
(201) KT Corporation (502,500) 1/19/08 25.0 (29,145)
(1,830) Newmont Mining Corporation (8,235,000) 1/19/08 45.0 (786,900)
(3,870) Nippon Telegraph & Telephone Corporation (9,675,000) 6/21/08 25.0 (628,875)
(1,410) NovaGold Resources, Inc. (1,410,000) 1/19/08 10.0 (10,575)
(790) Peabody Energy Corporation (3,555,000) 1/19/08 45.0 (1,647,150)
(550) Progress Energy, Inc. (2,475,000) 1/19/08 45.0 (195,250)
(1,380) Puget Energy, Inc. (3,450,000) 1/19/08 25.0 (341,550)
(820) Royal Dutch Shell PLC (6,560,000) 1/19/08 80.0 (303,400)
(540) Scholastic Corporation (1,620,000) 3/22/08 30.0 (310,500)
(1,470) Smithfield Foods Inc. (4,410,000) 1/19/08 30.0 (51,450)
(530) Smithfield Foods Inc. (1,590,000) 1/17/09 30.0 (198,750)
39
JPC
Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS as of December 31, 2007
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (10) DATE PRICE VALUE
----------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN (continued)
(450) Tech Data Corporation (1,800,000) 1/17/09 40.0 $ (157,500)
(1,660) Tyson Foods Inc. (3,735,000) 1/19/08 22.5 (8,300)
(1,950) Tyson Foods Inc. (2,925,000) 1/17/09 15.0 (507,000)
----------------------------------------------------------------------------------------------------------------------------
(29,645) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (88,333,750) (7,781,511)
$(6,960,983))
============================================================================================================================
OTHER ASSETS LESS LIABILITIES - 1.7% 22,260,078
===============================================================================================================
FUNDPREFERRED SHARES, AT LIQUIDATION (708,000,000)
VALUE - (57.5)% (13)
===============================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES - 100% $1,230,342,378
===============================================================================================================
INTEREST RATE SWAPS OUTSTANDING AT DECEMBER 31, 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 $ 96,858
Morgan Stanley 71,000,000 Receive 1-Month USD-LIBOR 3.406 Monthly 1/22/09 489,187
--------------------------------------------------------------------------------------------------------------------------------
$ 586,045
================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(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 (not covered by the report of independent registered public accounting firm):
Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's
are considered to be below investment grade.
(4) A zero coupon security does not pay a regular interest coupon to its holders during the
life of the security. Income to the holder of the security comes from accretion of the
difference between the original price of the security at issuance and the par value of the
security at maturity and is effectively paid at maturity. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that pay
interest periodically.
(5) 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.
(6) Senior Loans 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.
(7) Position or portion of position represents an unfunded Senior Loan commitment outstanding
at December 31, 2007.
(8) Negative value represents unrealized depreciation on unfunded Senior Loan commitment
outstanding at December 31, 2007.
(9) Principal Amount(000)/Shares rounds to less than $1,000.
(10) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(11) Investment has been pledged as collateral to cover call options written.
(12) Investment valued at fair value using methods determined in good faith by, or at the
discretion of, the Board of Trustees.
(13) FundPreferred Shares, at Liquidation Value as a percentage of total investments is
(36.6)%.
N/A Not applicable.
N/R Not rated.
144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as
amended. These investments may only be resold in transactions exempt from registration
which are normally those transactions with qualified institutional buyers.
ADR American Depositary Receipt.
CORTS Corporate Backed Trust Securities.
PPLUS PreferredPlus Trust.
SATURNS Structured Asset Trust Unit Repackaging.
See accompanying notes to financial statements.
40
JQC
Nuveen Multi-Strategy Income and Growth Fund 2
Portfolio of INVESTMENTS
as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 40.5% (26.2% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.6%
30,950 Boeing Company $ 2,706,887
17,420 Finmeccanica S.p.A. 558,904
16,572 Lockheed Martin Corporation 1,744,369
25,090 Orbital Sciences Corporation, (2) 615,207
59,500 Thales S.A. 3,544,314
17,170 United Technologies Corporation 1,314,192
--------------------------------------------------------------------------------------------------------------------------------
Total Aerospace & Defense 10,483,873
-------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.1%
57,810 Lufthansa AG 1,541,010
2,770 Ryanair Holdings PLC, (2) 109,249
--------------------------------------------------------------------------------------------------------------------------------
Total Airlines 1,650,259
-------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.4%
17,300 Advance Auto Parts, Inc. 657,227
11,780 Aftermarket Tech, (2) 321,123
56,190 Aisin Seiki Company Limited 2,326,391
13,170 Cooper Tire & Rubber 218,359
18,890 Johnson Controls, Inc. 680,796
33,950 Magna International Inc., Class A 2,730,599
--------------------------------------------------------------------------------------------------------------------------------
Total Auto Components 6,934,495
-------------------------------------------------------------------------------------------------------------------
AUTOMOBILES - 0.7%
33,570 Daimler-Chrysler AG, (2) 3,210,299
51,620 Honda Motor Company Limited 1,710,687
38,750 Nissan Motor 841,650
44,070 Nissan Motor 481,002
1,566 S.A. D'Ieteren N.V. 562,747
25,810 Toyota Motor Corporation 2,740,248
4,490 Volkswagen AG 205,381
96,800 Yamaha Motor Company Limited 2,316,673
--------------------------------------------------------------------------------------------------------------------------------
Total Automobiles 12,068,687
-------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.3%
134,440 Coca Cola Amatil Limited 1,111,695
67,540 Coca-Cola Company 4,144,930
53,370 Coca-Cola Enterprises Inc. 1,389,221
34,950 Diageo PLC, Sponsored ADR 2,999,759
74,860 Fomento Economico Mexicano S.A. 2,857,406
91,030 Heineken N.V. 5,878,956
22,320 Molson Coors Brewing Company, Class B 1,152,158
41,280 Pepsi Bottling Group, Inc. 1,628,909
57,070 SABMiller PLC 1,601,706
--------------------------------------------------------------------------------------------------------------------------------
Total Beverages 22,764,740
-------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.6%
3,230 Abraxis Bioscience Inc. 222,127
99,100 Amgen Inc., (2), (10) 4,602,204
23,970 Cephalon, Inc., (2) 1,720,087
31,860 Genzyme Corporation, (2) 2,371,658
7,730 Invitrogen Corporation, (2) 722,059
19,020 Novo-Nordisk A/S 1,233,637
--------------------------------------------------------------------------------------------------------------------------------
Total Biotechnology 10,871,772
-------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.2%
286,762 Sonae Industria-SPGS S.A. 2,762,576
--------------------------------------------------------------------------------------------------------------------------------
41
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 1.1%
7,530 Ameriprise Financial, Inc. $ 414,978
258,830 Babcock & Brown Limited 6,088,293
45,500 Bank of New York Company, Inc. 2,218,580
2,730 BlackRock Inc. 591,864
15,664 Calamos Asset Management, Inc. Class A 466,474
41,310 Credit Suisse Group, (2) 2,482,731
17,010 Credit Suisse Group 1,023,926
24,340 Invesco LTD 763,789
56,660 JPMorgan Chase & Co. 2,473,209
27,670 SEI Investments Company 890,144
25,751 State Street Corporation 2,090,981
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 19,504,969
-------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.6%
16,310 Air Products & Chemicals Inc. 1,608,655
930 Bayer AG 84,805
4,650 CF Industries Holdings, Inc. 511,779
10,900 Lubrizol Corporation 590,344
285,700 Mitusi Chemicals 1,854,719
53,840 Mosaic Company, (2) 5,079,266
464,520 Nissan Chemical Industries Limited 6,059,040
420 Potash Corporation of Saskatchewan 60,463
23,050 Potash Corporation of Saskatchewan 3,351,177
22,760 Praxair, Inc. 2,019,040
92,670 Shin-Etsu Chemical Company Limited 5,763,256
11,520 Terra Industries, Inc., (2) 550,195
--------------------------------------------------------------------------------------------------------------------------------
Total Chemicals 27,532,739
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 2.0%
21,510 Allied Irish Banks 988,169
20,490 Allied Irish Banks 469,878
105,050 Allinaz S.E. 2,232,313
2,290 Banco Bilbao Vizcaya Argentaria S.A. 55,533
1,500 Banco Bradesco S.A., ADR 48,000
1,820 Banco Itau Holdings Financeira, S.A. 47,065
55,110 Banco Santander Central S.A. 1,187,069
33,160 Bank of Montreal 1,876,856
2,300 Barclays PLC 92,851
35,620 BNP Paribas S.A. 3,864,767
43,980 Credit Agricole S.A. 1,483,720
341,600 DnB NOR ASA 5,196,413
98,310 Hang Seng Bank 2,011,125
46,990 ICICI Bank Limited, ADR 2,889,885
23,470 Kookmin Bank 1,720,820
33,120 Lloyds TSB Group PLC, Sponsored ADR 1,246,968
3,510 National Bank of Greece S.A. 240,698
41,410 National Bank of Greece S.A. 571,044
1,189,740 Nishi-Nippon City Bank Limited 2,946,763
12,880 Northern Trust Corporation 986,350
13,680 PNC Financial Services Group, Inc. 898,092
6,413 Prosperity Bancshares, Inc. 188,478
212,440 Royal Bank of Scotland, PLC, (2) 1,875,729
6,590 SVB Financial Group, (2) 332,136
28,170 Sydbank A/S 1,206,189
7,640 UMB Financial Corporation 293,070
5,080 Wintrust Financial Corporation 168,300
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 35,118,281
-------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.9%
444,100 Allied Waste Industries, Inc., (2), (10) 4,893,982
30,220 Apollo Group, Inc., (2) 2,119,933
3,268 Consolidated Graphics Inc., (2) 156,276
2,690 Dun and Bradstreet Inc. 238,415
288,360 Michael Page International PLC 1,641,687
36,580 Randstad Holding N.V. 1,429,591
15,015 Republic Services, Inc. 470,720
42
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (continued)
435,000 Toppan Printing Company Limited $ 4,265,984
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Services & Supplies 15,216,588
-------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.7%
6,360 Comtech Telecom Corporation, (2) 343,504
135,220 Corning Incorporated 3,243,928
109,260 Nokia Oyj, Sponsored ADR 4,194,491
105,530 QUALCOMM Inc. 4,152,606
8,730 Tandberg ASA 180,253
--------------------------------------------------------------------------------------------------------------------------------
Total Communications Equipment 12,114,782
-------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.8%
31,370 Apple, Inc., (2) 6,213,770
54,090 Hewlett-Packard Company 2,730,463
11,160 International Business Machines Corporation 1,206,396
(IBM)
10,920 NCR Corporation, (2) 274,092
118,054 Network Appliance, Inc., (2) 2,946,628
13,450 SanDisk Corporation, (2) 446,137
10,920 Teradata Corporation 299,317
--------------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 14,116,803
-------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.7%
434,060 AMEC PLC 7,256,842
13,020 Fluor Corporation 1,897,274
210,210 JGC Corporation 3,604,302
7,120 Perini Corporation 294,910
--------------------------------------------------------------------------------------------------------------------------------
Total Construction & Engineering 13,053,328
-------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS - 0.0%
1,640 Cemex SAB de C.V., Sponsored ADR, (2) 42,394
2,370 Texas Industries Inc. 166,137
--------------------------------------------------------------------------------------------------------------------------------
Total Construction Materials 208,531
-------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 0.3%
15,200 MasterCard, Inc. 3,271,040
68,950 Western Union Company 1,674,106
--------------------------------------------------------------------------------------------------------------------------------
Total Consumer Finance 4,945,146
-------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
14,560 Owens-Illinois, Inc. 720,720
--------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTORS - 0.1%
114,090 Jardine Cycle & Carriage Limited 1,703,557
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES - 0.0%
3,050 Capella Education Company 199,653
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.7%
57,810 Citigroup Inc. 1,701,926
29,600 Deutsche Boerse AG 5,841,976
36,090 Eaton Vance Corporation 1,638,847
31,320 ING Groep N.V. 1,218,661
18,890 Nasdaq Stock Market, Inc., (2) 934,866
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 11,336,276
-------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.9%
51,510 AT&T Inc. 2,140,756
590 Brasil Telecom 44,002
21,660 BT Group PLC 1,167,907
10,410 Cbeyond Inc., (2) 405,886
137,818 Chunghwa Telecom Co., Ltd., Sponsored ADR, 2,909,338
(10)
29,370 France Telecom S.A. 1,046,453
149,040 KT Corporation, Sponsored ADR, (10) 3,845,232
527,000 Nippon Telegraph and Telephone Corporation, 12,995,820
ADR, (10)
81,350 Telecom Argentina S.A., (2) 1,810,038
43
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
53,816 Telecom Corporation of New Zealand, Limited $ 893,884
52,595 Telecom Corporation of New Zealand, Limited 175,695
33,990 Telefonica S.A. 3,317,084
74,060 Telefonos de Mexico de C.V., Series L 2,728,370
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 33,480,465
-------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.1%
400 Ameren Corporation 21,684
8,440 Black Hills Corporation 372,204
357,200 Centrais Electricas Brasileiras S.A., ADR 4,605,487
55,600 E.ON A.G 3,941,606
48,570 Edison International 2,592,181
12,730 El Paso Electric Company, (2) 325,506
13,600 Enel S.p.A., Sponsored ADR 800,700
21,460 FPL Group, Inc. 1,454,559
146,000 IDACORP, INC 5,142,120
332,100 Korea Electric Power Corporation, Sponsored 6,924,285
ADR
211,100 PNM Resources Inc. 4,528,095
86,150 Progress Energy, Inc., (10) 4,172,245
89,500 Reliant Energy Inc., (2) 2,348,480
--------------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 37,229,152
-------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.4%
50,590 ABB Limted 1,458,599
80,224 Emerson Electric Co. 4,545,492
26,070 Nikon Corporation 886,857
--------------------------------------------------------------------------------------------------------------------------------
Total Electrical Equipment 6,890,948
-------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.7%
2,364 Itron Inc., (2) 226,873
6,080 LG Philips LCD Company Limited, Sponsored 157,958
ADR, (2)
24,730 MEMC Electronic Materials, (2) 2,188,358
4,550 Mettler-Toledo International Inc., (2) 517,790
89,700 Tech Data Corporation, (2), (10) 3,383,484
4,931 Teledyne Technologies Inc., (2) 262,970
93,200 Thermo Fisher Scientific, Inc., (2) 5,375,776
--------------------------------------------------------------------------------------------------------------------------------
Total Electronic Equipment & Instruments 12,113,209
-------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.5%
9,100 Cooper Cameron Corporation, (2) 437,983
13,000 Dresser Rand Group, Inc., (2) 507,650
59,690 Global Industries, Limited, (2) 1,278,560
10,900 Matrix Service Company, (2) 237,838
35,930 National-Oilwell Varco Inc., (2) 2,639,418
12,880 Noble Corporation 727,849
14,300 Technip S.A. 1,137,439
13,890 Tidewater Inc. 762,005
6,990 Transocean Inc. 1,000,619
5,610 Trico Marine Services Inc., (2) 207,682
--------------------------------------------------------------------------------------------------------------------------------
Total Energy Equipment & Services 8,937,043
-------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.5%
25,040 Casino Guichard-Perrachon S.A. 2,723,919
5,070 Koninklijke Ahold N.V., (2) 70,017
208,910 Marks and Spencer Group PLC 2,312,519
5,040 Nash Finch Company 177,811
52,370 Safeway Inc. 1,791,578
42,780 Wal-Mart Stores, Inc. 2,033,333
--------------------------------------------------------------------------------------------------------------------------------
Total Food & Staples Retailing 9,109,177
-------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 1.8%
31,440 ConAgra Foods, Inc. 747,958
23,160 Flowers Foods Inc. 542,176
45,030 H.J. Heinz Company 2,102,000
267,890 Jeronimo Martins SGPS 2,128,348
44
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS (continued)
4,550 Monsanto Company $ 508,190
640 Nestle S.A. 73,489
377,700 Smithfield Foods, Inc., (2), (10) 10,923,084
135,550 Tingyi Holding Corporation 212,950
679,300 Tyson Foods, Inc., Class A, (10) 10,413,669
96,960 Unilever PLC 3,628,243
--------------------------------------------------------------------------------------------------------------------------------
Total Food Products 31,280,107
-------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.4%
1,620 BG PLC 185,425
6,530 E.ON AG 1,388,231
37,213 Energen Corporation 2,390,191
3,560 Gas Natural SDG 207,810
58,190 Questar Corporation 3,148,079
18,780 Spectra Energy Corporation 484,900
--------------------------------------------------------------------------------------------------------------------------------
Total Gas Utilities 7,804,636
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
27,550 Alfresa Holdings Corporation 1,661,047
3,250 Analogic Corporation 220,090
39,330 Baxter International Inc. 2,283,107
28,398 Express Scripts, Inc., (2) 2,073,054
823 Fresenius Medical Care, ADR 43,413
3,920 Lifecell Corporation, (2) 168,991
155,500 Paramount Bed Company Limited 1,999,651
6,069 Surmodics Inc., (2) 329,365
--------------------------------------------------------------------------------------------------------------------------------
Total Health Care Equipment & Supplies 8,778,718
-------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.3%
42,510 Humana Inc., (2) 3,201,428
6,740 Mentor Corporation 263,534
32,643 Wellcare Health Plans Inc., (2) 1,384,390
--------------------------------------------------------------------------------------------------------------------------------
Total Health Care Providers & Services 4,849,352
-------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.2%
5,090 Bally Technologies, Inc., (2) 253,075
1,350 Carnival Corporation 59,144
20,620 Choice Hotels International, Inc. 684,584
32,770 McDonald's Corporation 1,930,481
18,360 Multimedia Games, Inc., (2) 153,122
--------------------------------------------------------------------------------------------------------------------------------
Total Hotels, Restaurants & Leisure 3,080,406
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.1%
2,250 Desarrolladora Homex SAB de C.V., Sponsored 111,263
ADR
510 Koninklijke Philips Electronics N.V. 21,803
3,880 Matsushita Electric Industrial Co., Ltd., 79,307
ADR
41,682 Newell Rubbermaid Inc. 1,078,730
6,590 Tupperware Corporation 217,668
--------------------------------------------------------------------------------------------------------------------------------
Total Household Durables 1,508,771
-------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.6%
53,520 Colgate-Palmolive Company 4,172,419
198,000 KAO Corporation 5,952,462
15,197 Kimberly-Clark Corporation 1,053,760
--------------------------------------------------------------------------------------------------------------------------------
Total Household Products 11,178,641
-------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
30,910 NRG Energy Inc., (2) 1,339,639
--------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES - 0.5%
34,250 General Electric Company 1,269,648
344,660 Keppel Corporation 3,071,151
22,530 Siemens AG, Sponsored ADR 3,545,321
4,480 Teleflex Inc. 282,285
--------------------------------------------------------------------------------------------------------------------------------
Total Industrial Conglomerates 8,168,405
-------------------------------------------------------------------------------------------------------------------
45
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.1%
1,140 Aegon N.V. $ 19,984
47,738 AFLAC Incorporated 2,989,831
11,390 American International Group, Inc. 664,037
14,740 Amtrust Financial Services, Inc. 202,970
23,180 Aon Corporation 1,105,454
18,110 Arch Capital Group Limited, (2) 1,274,039
5,730 Aspen Insurance Holdings Limited 165,253
12,020 Axis Capital Holdings Limited 468,419
345,100 Benfield Group, Limited 1,921,454
11,310 Delphi Financial Group, Inc. 399,017
5,470 Fairfax Financial Holdings Limited 1,565,131
19,270 HCC Insurance Holdings Inc. 552,664
46,864 Philadelphia Consolidated Holding 1,844,098
Corporation, (2)
9,020 Power Financial Corporation 372,608
11,900 Seabright Insurance Holdings Inc., (2) 179,452
10,720 Security Capital Assurance Limited 41,701
32,920 Sun Life Financial Inc. 1,841,545
7,800 Tower Group Inc. 260,520
9,870 Universal American Financial Corporation, 252,573
(2)
90,470 WR Berkley Corporation 2,696,911
1,730 Zurich Financial Services AG 507,731
--------------------------------------------------------------------------------------------------------------------------------
Total Insurance 19,325,392
-------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.2%
23,130 Amazon.com, Inc., (2) 2,142,763
184,690 Home Retail Group 1,200,315
--------------------------------------------------------------------------------------------------------------------------------
Total Internet & Catalog Retail 3,343,078
-------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.0%
3,310 Blue Coat Systems Inc. 108,800
--------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.2%
46,430 Accenture Limited 1,672,873
16,970 CGI Group Inc., (2) 197,531
9,860 Convergys Corporation, (2) 162,296
17,140 FactSet Research Systems Inc. 954,698
8,990 Savvis Inc., (2) 250,911
8,140 TNS Inc. 144,485
--------------------------------------------------------------------------------------------------------------------------------
Total IT Services 3,382,794
-------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.2%
26,380 Canon Inc. 1,208,995
19,370 Fuji Photo Film Co., Ltd. 810,741
11,010 FujiFilm Holdings Corporation, ADR 459,007
22,320 Hasbro, Inc. 570,946
15,770 Marvel Entertainment Inc., (2) 421,217
--------------------------------------------------------------------------------------------------------------------------------
Total Leisure Equipment & Products 3,470,906
-------------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.0%
7,950 Illumina Inc., (2) 471,117
--------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.9%
78,440 ABB Limted 2,259,072
55,920 AGCO Corporation, (2) 3,801,442
10,990 Deere & Company 1,023,389
27,838 Harsco Corporation 1,783,581
25,580 ITT Industries Inc. 1,689,303
41,490 Manitowoc Company Inc. 2,025,957
211,160 Mitsui Engineering & Shipbuilding Company 811,349
Limited
11,510 Pall Corporation 464,083
7,528 Parker Hannifin Corporation 566,896
11,330 RBC Bearings Inc., (2) 492,402
4,360 Robbins & Myers, Inc. 329,747
--------------------------------------------------------------------------------------------------------------------------------
Total Machinery 15,247,221
-------------------------------------------------------------------------------------------------------------------
46
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
MARINE - 0.1%
250,340 Kawasaki Kisen Kaisha Limited $ 2,430,280
--------------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.6%
76,470 DIRECTV Group, Inc., (2) 1,767,986
63,820 Echostar Communications Corporation, (2) 2,407,290
65,250 Eniro AB 579,786
22,450 ProSiebensati Media AG 536,760
21,960 Regal Entertainment Group, Class A 396,817
77,300 Scholastic Corporation, (2), (10) 2,696,997
26,980 Shaw Communication Inc. 638,886
9,830 Thomson Corporation 400,573
31,760 Walt Disney Company 1,025,213
11,470 WPP Group PLC 737,406
--------------------------------------------------------------------------------------------------------------------------------
Total Media 11,187,714
-------------------------------------------------------------------------------------------------------------------
METALS & MINING - 4.4%
269,400 AngloGold Ashanti Limited, Sponsored ADR, 11,533,014
(10)
276,900 Apex Silver Mines Limited, (2), (10) 4,219,956
288,800 Barrick Gold Corporation, (10) 12,144,040
17,590 BHP Billiton PLC 536,377
13,720 BHP Billiton PLC 841,036
83,770 BHP Billiton PLC 2,928,441
4,860 Compass Minerals International, Inc. 199,260
204,690 Cookson Group 2,838,761
319,100 Crystallex International Corporation, (2) 727,548
26,290 Freeport-McMoRan Copper & Gold, Inc. 2,693,148
766,000 Gabriel Resources, Limited, (2) 1,528,973
286,100 Gold Fields Limited, (10) 4,062,620
2,015,500 Lihir Gold Limited, (2) 6,270,559
690,190 Mitsubishi Materials 2,914,369
265,300 Moto Goldmines, Limited, (2) 981,149
247,600 Newmont Mining Corporation, (10) 12,090,308
265,900 NovaGold Resources Inc., (2), (10) 2,169,744
634,700 Orezone Resources Inc., (2) 767,987
5,900 Rio Tinto PLC, Sponsored ADR 2,477,410
182,100 SSAB Svenskt Stal AB 4,914,386
--------------------------------------------------------------------------------------------------------------------------------
Total Metals & Mining 76,839,086
-------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 0.5%
20,920 Big Lots, Inc., (2) 334,511
52,150 Costco Wholesale Corporation 3,637,984
11,830 Dollar Tree Stores Inc., (2) 306,634
161,810 Next PLC 5,212,052
--------------------------------------------------------------------------------------------------------------------------------
Total Multiline Retail 9,491,181
-------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.4%
63,560 National Grid Group PLC 1,054,122
186,900 Puget Energy, Inc., (10) 5,126,667
--------------------------------------------------------------------------------------------------------------------------------
Total Multi-Utilities 6,180,789
-------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 3.5%
86,100 Arch Coal Inc., (10) 3,868,473
6,920 Bill Barrett Corporation, (2) 289,740
167,060 BP Amoco PLC, (10) 12,223,780
50,650 Chesapeake Energy Corporation 1,985,480
15,770 Chevron Corporation 1,471,814
6,090 Comstock Resources Inc. 207,060
41,340 Eni S.p.A., Sponsored ADR 2,994,256
14,900 EOG Resources, Inc. 1,329,825
20,600 Equitable Resources Inc. 1,097,568
28,900 Frontier Oil Corporation 1,172,762
43,940 Hess Corporation 4,431,788
34,170 Murphy Oil Corporation 2,898,983
200 Nexen Inc. 6,454
19,730 Occidental Petroleum Corporation 1,519,013
10,750 Patriot Coal Corporation 448,705
47
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS (continued)
107,500 Peabody Energy Corporation, (10) $ 6,626,300
23,160 Petroquest Energy Inc., (2) 331,188
11,427 Pioneer Drilling Company, (2) 135,753
50,110 Repsol YPF S.A. 1,785,419
111,100 Royal Dutch Shell PLC, Class B, Sponsored 9,221,300
ADR, (10)
101,050 Singapore Petroleum 527,539
10,920 St Mary Land and Exploration Company 421,621
80,083 Statoil ASA 2,444,133
10,761 Sunoco, Inc. 779,527
28,770 Total S.A., Sponsored ADR 2,376,402
16,022 Valero Energy Corporation 1,122,021
--------------------------------------------------------------------------------------------------------------------------------
Total Oil, Gas & Consumable Fuels 61,716,904
-------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.3%
14,390 Aracruz Celulose S.A. 1,069,897
8,670 Buckeye Technologies Inc., (2) 108,375
10,200 Potlatch Corporation 453,288
13,890 Rayonier Inc. 656,164
11,320 Stora Enso Oyj, R Shares 168,983
74,400 Votorantim Celulose e Papel S.A. 2,217,864
--------------------------------------------------------------------------------------------------------------------------------
Total Paper & Forest Products 4,674,571
-------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.1%
24,390 Herbalife, Limited 982,429
4,680 Oriflame Cosmetics S.A. 297,911
--------------------------------------------------------------------------------------------------------------------------------
Total Personal Products 1,280,340
-------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 1.5%
13,000 APP Pharmaceuticals Inc. 133,510
24,100 Astellas Pharma Inc. 1,045,232
211,610 AstraZeneca Group 9,061,140
74,850 Daiichi Sankyo Company Limited 2,303,050
25,750 Eli Lilly and Company 1,374,793
9,200 GlaxoSmithKline PLC, ADR 463,588
28,730 H. Lundbeck A/S 772,018
139,000 Kissei Pharaceuticals Company Limited 2,844,856
46,020 Merck & Co. Inc. 2,674,222
3,990 Novo Nordisk A/S 260,473
494,200 Patheon Inc., (2) 1,562,292
12,290 Pozen Inc., (2) 147,480
30,830 Sanofi-Aventis, ADR 1,403,690
49,240 Shionogi & Company Limited 872,980
24,510 Warner Chilcott Limited, (2) 434,562
--------------------------------------------------------------------------------------------------------------------------------
Total Pharmaceuticals 25,353,886
-------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 0.5%
105,600 Annaly Capital Management Inc. 1,919,808
163,540 CFX Retail Property Trust 334,475
9,307 LaSalle Hotel Properties 296,893
11,200 Lexington Corporate Properties Trust 162,848
9,100 Macerich Company 646,646
19,124 SL Green Realty Corporation 1,787,329
14,427 Tanger Factory Outlet Centers 544,042
20,524 Taubman Centers Inc. 1,009,576
1,089,583 Wing Tai Holdings Limited 2,014,893
--------------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 8,716,510
-------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0%
129,610 New World Development Company, Limited 455,407
--------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.2%
17,820 Canadian National Railways Company 836,293
2,730 Canadian Pacific Railway Limited 176,467
45,100 Hertz Global Holdings, Inc., (2) 716,639
19,870 Landstar System 837,521
48
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL (continued)
6,870 Union Pacific Corporation $ 863,009
--------------------------------------------------------------------------------------------------------------------------------
Total Road & Rail 3,429,929
-------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.5%
81,170 ASM Lithography Holding N.V. 2,539,809
16,390 Broadcom Corporation, Class A, (2) 428,435
35,500 Intel Corporation 946,430
9,070 Monolithic Power Systems, Inc., (2) 194,733
91,670 National Semiconductor Corporation 2,075,409
15,450 NVIDIA Corporation, (2) 525,609
21,350 Semtech Corporation, (2) 331,352
117,618 Taiwan Semiconductor Manufacturing Company 1,171,475
Ltd., Sponsored ADR
11,930 Zoran Corporation, (2) 268,544
--------------------------------------------------------------------------------------------------------------------------------
Total Semiconductors & Equipment 8,481,796
-------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.7%
63,410 Activision Inc., (2) 1,883,277
43,690 Adobe Systems Incorporated, (2) 1,866,874
9,470 Ansys Inc., (2) 392,626
11,975 Aspen Technology Inc., (2) 194,235
59,260 Autodesk, Inc., (2) 2,948,778
8,484 Blackbaud, Inc. 237,891
8,270 Blackboard, Inc., (2) 332,868
37,770 Cadence Design Systems, Inc., (2) 642,468
56,800 Intuit Inc., (2) 1,795,448
8,190 SPSS Inc., (2) 294,103
31,860 Synopsys Inc., (2) 826,130
--------------------------------------------------------------------------------------------------------------------------------
Total Software 11,414,698
-------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.2%
9,060 Aeropostale, Inc., (2) 240,090
7,990 GameStop Corporation 496,259
25,750 Gap, Inc. 547,960
3,515 Hennes & Mauritz AB 212,326
6,580 J. Crew Group Inc., (2) 317,222
7,010 Luxottica Group S.p.A. 220,745
17,430 NetFlix.com Inc. 463,987
71,760 RadioShack Corporation 1,209,874
830 Sony Corporation 45,069
--------------------------------------------------------------------------------------------------------------------------------
Total Specialty Retail 3,753,532
-------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.1%
2,950 Deckers Outdoor Corporation, (2) 457,427
1,530 Gildan Activewear Inc, Sponsored ADR, (2) 62,975
44,898 Guess Inc. 1,701,185
--------------------------------------------------------------------------------------------------------------------------------
Total Textiles, Apparel & Luxury Goods 2,221,587
-------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.2%
185,310 Hudson City Bancorp, Inc. 2,783,356
--------------------------------------------------------------------------------------------------------------------------------
TOBACCO - 0.4%
15,260 British American Tobacco PLC 1,198,826
10,670 Imperial Tobacco Group 1,144,678
350 Japan Tobacco, Inc. 2,069,461
31,140 UST Inc. 1,706,472
--------------------------------------------------------------------------------------------------------------------------------
Total Tobacco 6,119,437
-------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.0%
3,590 W.W. Grainger, Inc. 314,197
--------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE - 0.3%
1,226,750 Macquarie Airports 4,332,877
--------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.0%
3,950 China Unicom Limited 88,476
480 Millicom International Cellular S.A. 56,606
49
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) VALUE
--------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (continued)
1,920 Mobile Telesystems, Sponsored ADR $ 195,437
--------------------------------------------------------------------------------------------------------------------------------
Total Wireless Telecommunication Services 340,519
-------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $678,481,693) 705,924,348
===================================================================================================================
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED SECURITIES - 1.7% (1.1% OF TOTAL INVESTMENTS)
AUTOMOBILES - 0.3%
42,300 General Motors Corporation, Convertible Bonds 1.500% B- $ 1,023,237
89,200 General Motors Corporation, Convertible Notes, 5.250% B- 1,726,912
Senior Debentures, Series B
152,300 General Motors Corporation 6.250% B- 2,980,511
-----------------------------------------------------------------------------------------------------------------------------
Total Automobiles 5,730,660
----------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
15,800 AMG Capital Trust II, Convertible Bond 5.150% BB 701,125
-----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.1%
20,650 Sovereign Capital Trust IV, Convertible Security 4.375% Baa1 684,031
38,650 Washington Mutual, Inc., Unit 1 Trust 5.375% A3 1,091,863
-----------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 1,775,894
----------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.6%
12,500 Lucent Technologies Capital Trust I 7.750% B2 10,100,250
-----------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
10,450 Owens-Illinois, Inc., Convertible Bonds 4.750% B- 522,291
-----------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
26,400 Centerpoint Energy Inc. 2.000% BBB- 860,112
9,100 CMS Energy Corporation, Convertible Bonds 4.500% Ba2 825,825
-----------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 1,685,937
----------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.1%
9,150 Bunge Limited, Convertible Bonds 4.875% BB 1,291,294
-----------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.1%
16,800 Newell Financial Trust I 5.250% BBB- 770,700
-----------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
400 NRG Energy Inc., Convertible Bond 4.000% B2 887,576
-----------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.1%
1,100 Freeport McMoran Copper & Gold, Inc. 5.500% B- 2,444,063
-----------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.1%
750 El Paso Corporation 4.990% B 1,056,281
-----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.1%
28,750 HRPT Properties Trust, Preferred Convertible Bonds 6.500% BBB- 549,413
17,150 Simon Property Group, Inc., Series I 6.000% BBB+ 1,226,910
-----------------------------------------------------------------------------------------------------------------------------
Total Real Estate 1,776,323
----------------------------------------------------------------------------------------------------------------
U.S. AGENCY - 0.0%
7 Federal National Mortgage Association 5.375% AA- 593,593
-----------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED SECURITIES (COST 29,335,987
$31,821,930)
================================================================================================================
50
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
$25 PAR (OR SIMILAR) PREFERRED SECURITIES - 44.6% (28.8% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 3.4%
227,474 BNY Capital Trust V, Series F 5.950% Aa3 $ 4,722,360
1,195,600 Deutsche Bank Capital Funding Trust II 6.550% Aa3 25,836,916
23,000 First Union Institutional Capital II (CORTS) 8.200% A1 581,670
11,000 Goldman Sachs Capital I (CORTS) 6.000% A1 221,210
12,000 Goldman Sachs Capital I, Series A (CORTS) 6.000% A1 237,840
3,000 Goldman Sachs Group Inc. (CORTS) 6.300% A 62,820
5,600 Goldman Sachs Group Inc., Series 2003-11 (SATURNS) 5.625% Aa3 107,912
7,600 Goldman Sachs Group Inc., Series 2004-04 (SATURNS) 6.000% A1 151,544
2,900 Goldman Sachs Group Inc., Series 2004-06 (SATURNS) 6.000% A1 57,884
16,200 Goldman Sachs Group Inc., Series 2004-4 (CORTS) 6.000% A1 318,330
20,200 Goldman Sachs Group Inc., Series GSC-3 (PPLUS) 6.000% A1 399,556
7,900 Goldman Sachs Group Inc., Series GSC-4 Class A 6.000% A1 156,183
(PPLUS)
13,500 Goldman Sachs Group Inc., Series GSG-1 (PPLUS) 6.000% AA- 282,150
4,500 Goldman Sachs Group Inc., Series GSG-2 (PPLUS) 5.750% AA- 89,415
1,900 Lehman Brothers Holdings Capital Trust IV, Series 6.375% A2 39,140
L
1,900 Lehman Brothers Holdings Capital Trust VI, Series 6.240% A2 38,760
N
347,345 Merrill Lynch Preferred Capital Trust III 7.000% A2 7,224,776
21,800 Merrill Lynch Preferred Capital Trust IV 7.120% A2 477,420
230,600 Merrill Lynch Preferred Capital Trust V 7.280% A2 5,073,200
189,892 Morgan Stanley Capital Trust III 6.250% A1 3,628,836
113,125 Morgan Stanley Capital Trust IV 6.250% A1 2,155,031
12,794 Morgan Stanley Capital Trust V 5.750% A+ 223,895
300,100 Morgan Stanley Capital Trust VI 6.600% A1 6,017,005
49,158 Morgan Stanley Capital Trust VII 6.600% A2 963,988
-----------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 59,067,841
----------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 8.8%
651,200 ABN AMRO Capital Fund Trust V 5.900% A1 11,851,840
116,700 ASBC Capital I 7.625% A3 2,800,800
120,510 BAC Capital Trust I 7.000% Aa2 2,752,448
554,400 BAC Capital Trust II 7.000% Aa2 12,584,880
146,800 BAC Capital Trust III 7.000% Aa2 3,391,080
13,600 BAC Capital Trust IV 5.875% Aa2 268,600
7,800 BAC Capital Trust V 6.000% Aa3 155,064
8,900 BAC Capital Trust VIII 6.000% Aa2 174,885
2,600 BAC Capital Trust X 6.250% Aa2 53,326
494,642 Banco Santander Finance 6.800% Aa3 10,906,856
696,618 Banco Santander Finance 6.500% A 14,541,901
157,252 Banco Santander Finance 6.410% Aa3 3,467,407
7,500 BancorpSouth Capital Trust I 8.150% Baa1 187,500
28,800 Banesto Holdings, Series A, 144A 10.500% A1 887,400
167,700 Bank One Capital Trust VI 7.200% Aa3 3,907,410
213,590 Barclays Bank PLC 7.750% Aa3 5,382,468
41,042 Barclays Bank PLC 6.625% Aa3 891,432
36,800 Capital One Capital II Corporation 7.500% Baa1 699,200
142,300 Citizens Funding Trust I 7.500% Baa2 2,205,650
146,500 Cobank ABC, 144A 7.000% A 7,403,671
1,500 Fifth Third Capital Trust V 7.250% A1 32,370
52,900 Fifth Third Capital Trust VI 7.250% A1 1,100,320
1,800 Fleet Capital Trust IX 6.000% Aa2 35,550
438,000 Fleet Capital Trust VIII 7.200% Aa2 10,293,000
61,100 HSBC Finance Corporation 6.875% AA- 1,434,017
83,705 KeyCorp Capital Trust IX 6.750% Baa1 1,586,210
6,800 KeyCorp Capital Trust V 5.875% A3 120,360
3,100 Keycorp Capital VI 6.125% A3 57,877
3,200 KeyCorp Capital VIII 7.000% A3 64,320
723,905 National City Capital Trust II 6.625% A3 11,980,628
400 National City Capital Trust II 6.625% A3 6,680
136,561 National City Capital Trust IV 8.000% A2 2,878,023
21,700 ONB Capital Trust II 8.000% A3 526,225
30,000 PNC Capital Trust 6.125% A2 630,000
172,900 Royal Bank of Scotland Group PLC 6.600% Aa3 3,502,954
41,890 Royal Bank of Scotland Group PLC, Series L 5.750% A1 751,926
57,600 Royal Bank of Scotland Group PLC, Series M 6.400% A1 1,138,752
125,740 Royal Bank of Scotland Group PLC, Series N 6.350% A1 2,451,930
5,000 Royal Bank of Scotland Group PLC, Series P 6.250% A1 96,050
18,000 Royal Bank of Scotland Group PLC, Series T 7.250% Aa3 415,620
15,200 SunAmerica CORTS 6.700% AA 322,088
51
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS (continued)
5,400 USB Capital Trust VI 5.750% Aa3 $ 104,166
5,000 USB Capital Trust VII 5.875% Aa3 97,700
11,000 USB Capital Trust VIII 6.350% Aa3 220,880
7,200 USB Capital Trust X 6.500% Aa3 151,200
65,700 USB Capital Trust XI 6.600% A1 1,389,555
7,100 USB Capital XII 6.300% Aa3 141,361
32,040 VNB Capital Trust I 7.750% A3 792,670
142,870 Wachovia Capital Trust IX 6.375% A1 2,850,257
285,891 Wachovia Trust IV 6.375% A1 5,726,397
475,500 Wells Fargo Capital Trust V 7.000% Aa2 10,984,050
112,882 Wells Fargo Capital Trust VII 5.850% Aa2 2,276,830
7,500 Wells Fargo Capital Trust VIII 5.625% Aa2 147,675
19,700 Wells Fargo Capital Trust IX 5.625% Aa2 378,240
30,200 Wells Fargo Capital Trust XI 6.250% AA- 622,120
117,800 Zions Capital Trust B 8.000% BBB- 2,914,372
-----------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 152,736,191
----------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.0%
1,000 IBM Corporation, Class A (CORTS) 5.625% A+ 20,250
19,000 IBM Trust IV (CORTS) 7.000% A+ 470,820
-----------------------------------------------------------------------------------------------------------------------------
Total Computers & Peripherals 491,070
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 5.3%
100,500 BAC Capital Trust XII 6.875% Aa3 2,271,300
197,000 Citigroup Capital Trust VII 7.125% A+ 4,225,650
756,422 Citigroup Capital Trust VIII 6.950% A+ 15,922,683
8,100 Citigroup Capital Trust IX 6.000% A+ 150,255
14,100 Citigroup Capital Trust XI 6.000% A+ 260,145
9,100 Citigroup Capital X 6.100% A+ 167,895
2,400 Citigroup Capital XIV 6.875% A+ 48,600
298,521 Citigroup Capital XV 6.500% Aa3 5,806,233
32,100 Citigroup Capital XVI 6.450% A+ 609,579
8,300 Citigroup Capital XVII 6.350% A+ 157,700
744,100 Citigroup Capital XIX 7.250% A+ 16,370,200
6,000 Deutsche Bank Capital Funding Trust VIII 6.375% A 127,260
17,100 General Electric Capital Corporation 6.000% AAA 412,110
389,600 ING Groep N.V. 7.375% A1 9,258,844
570,220 ING Groep N.V. 7.200% A1 12,784,332
722,175 ING Groep N.V. 7.050% A 15,815,633
117,200 ING Groep N.V. 6.375% A1 2,359,236
7,300 JPMorgan Chase Capital Trust X 7.000% Aa3 172,280
49,000 JPMorgan Chase Capital Trust XI 5.875% Aa3 964,320
4,400 JP Morgan Chase Capital Trust XII 6.250% Aa3 92,224
13,800 JPMorgan Chase Capital Trust XIV 6.200% Aa3 280,278
8,200 JPMorgan Chase Capital Trust XVI 6.350% Aa3 169,576
236,000 Merrill Lynch Capital Trust I 6.450% A 4,585,480
13,000 Royal Bank of Scotland Group PLC, Series R 6.125% A1 248,300
-----------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 93,260,113
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.0%
622,400 AT&T Inc. 6.375% A 15,012,288
38,500 BellSouth Capital Funding (CORTS) 7.100% A 859,031
30,500 BellSouth Corporation (CORTS) 7.000% A 628,681
28,000 Verizon Communications (CORTS) 7.625% A 703,920
-----------------------------------------------------------------------------------------------------------------------------
Total Diversified Telecommunication Services 17,203,920
----------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.4%
21,100 DTE Energy Trust I 7.800% Baa3 526,445
1,700 Entergy Arkansas Inc. 6.700% AAA 42,075
2,400 Entergy Arkansas Inc. 6.000% AAA 58,416
28,900 Entergy Louisiana LLC 7.600% A- 707,761
5,300 Entergy Mississippi Inc. 7.250% A- 134,249
2,800 Entergy Mississippi Inc. 6.000% AAA 68,656
51,600 FPL Group Capital Inc. 6.600% A3 1,238,400
6,000 National Rural Utilities Cooperative Finance 6.750% A3 143,100
Corporation
8,600 National Rural Utilities Cooperative Finance 6.100% A3 182,406
Corporation
2,500 National Rural Utilities Cooperative Finance 5.950% A3 52,850
Corporation
9,300 PPL Capital Funding, Inc. 6.850% Baa2 218,643
15,000 PPL Energy Supply LLC 7.000% BBB 372,750
52
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (continued)
4,000 Tennessee Valley Authority, Series A 4.793% AAA $ 96,120
122,500 Virginia Power Capital Trust 7.375% BBB 2,987,775
-----------------------------------------------------------------------------------------------------------------------------
Total Electric Utilities 6,829,646
----------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.2%
35,100 Dairy Farmers of America Inc., 144A 7.875% BBB- 3,470,513
-----------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES - 0.0%
15,962 Pulte Homes Inc. 7.375% BB+ 305,832
-----------------------------------------------------------------------------------------------------------------------------
INSURANCE - 10.1%
1,210,933 Ace Ltd., Series C 7.800% BBB 28,941,299
12,000 Aegon N.V., Series 1 5.915% A- 213,000
10,000 Aegon N.V. 6.875% A- 212,000
8,700 Aegon N.V. 6.500% A- 175,044
1,420,300 Aegon N.V. 6.375% A- 28,050,925
3,000 Aegon N.V. 7.250% A- 66,570
12,233 AMBAC Financial Group Inc. 5.950% AA 220,806
238,113 Arch Capital Group Limited, Series B 7.785% BBB- 5,524,222
392,973 Arch Capital Group Limited 8.000% BBB- 9,820,395
709,600 Berkley WR Corporation, Capital Trust II 6.750% BBB- 14,880,312
677,301 Delphi Financial Group, Inc. 8.000% BBB+ 16,058,807
32,500 Delphi Financial Group, Inc. 7.376% BBB- 599,463
6,000,000 Everest Reinsurance Holdings, Inc. 6.600% Baa1 5,323,086
200,456 EverestRe Capital Trust II 6.200% Baa1 3,772,582
7,800 Financial Security Assurance Holdings 6.250% AA 142,350
6,100 Financial Security Assurance Holdings 5.600% AA 98,210
1,401,500 Lincoln National Capital Trust VI 6.750% A- 31,603,825
4,000 Lincoln National Corporation 6.750% A- 90,000
123,700 Markel Corporation 7.500% BBB- 2,982,407
1,300 MetLife Inc. 5.875% A 27,521
903,702 PartnerRe Limited, Series C 6.750% BBB+ 17,405,301
146,500 PLC Capital Trust III 7.500% BBB+ 3,329,945
6,800 PLC Capital Trust IV 7.250% BBB+ 149,600
29,800 PLC Capital Trust V 6.125% BBB+ 568,286
43,300 Protective Life Corporation 7.250% BBB 946,105
39,343 Prudential PLC 6.750% A 800,237
4,300 Prudential PLC 6.500% A- 86,774
124,700 RenaissanceRe Holdings Limited, Series B 7.300% BBB 2,712,225
35,600 RenaissanceRe Holdings Limited, Series C 6.080% BBB+ 613,032
25,300 RenaissanceRe Holdings Ltd. 6.600% BBB 469,062
7,500 Torchmark Capital Trust III 7.100% BBB+ 171,750
-----------------------------------------------------------------------------------------------------------------------------
Total Insurance 176,055,141
----------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.0%
2,500 Vertex Industries Inc. (PPLUS) 7.625% A 63,050
-----------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.8%
38,600 CBS Corporation 7.250% BBB 834,918
554,400 CBS Corporation 6.750% BBB 10,672,200
1,038,100 Comcast Corporation 7.000% BBB+ 23,294,964
14,200 Comcast Corporation 6.625% BBB+ 292,378
649,400 Viacom Inc. 6.850% BBB 14,299,788
1,400 Walt Disney Company (CORTS) 6.875% A 35,434
-----------------------------------------------------------------------------------------------------------------------------
Total Media 49,429,682
----------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.9%
680,300 Nexen Inc. 7.350% Baa3 15,776,157
-----------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.1%
49,200 Bristol Myers Squibb Company (CORTS) 6.250% A+ 1,033,200
-----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE - 9.7%
30,600 AMB Property Corporation, Series P 6.850% Baa2 656,370
77,100 AvalonBay Communities, Inc., Series H 8.700% BBB 1,952,943
4,000 BRE Properties, Series C 6.750% BBB- 77,360
9,100 BRE Properties, Series D 6.750% BBB- 182,000
104,300 Developers Diversified Realty Corporation, Series 8.000% BBB- 2,341,535
G
1,265,945 Developers Diversified Realty Corporation, Series 7.375% BBB- 25,951,873
H
53
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
SHARES DESCRIPTION (1) COUPON RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE/MORTGAGE (continued)
126,000 Duke Realty Corporation, Series L 6.600% BBB $ 2,475,900
31,700 Duke Realty Corporation, Series N 7.250% BBB 653,654
104,400 Duke-Weeks Realty Corporation 6.950% BBB 2,103,660
96,000 Duke-Weeks Realty Corporation 6.625% BBB 1,866,240
312,323 Equity Residential Properties Trust, Series N 6.480% BBB 6,312,048
4,700 First Industrial Realty Trust, Inc., Series J 7.250% BBB- 95,222
1,700 First Industrial Realty Trust, Inc., Series J 7.250% BBB- 34,425
401,683 HRPT Properties Trust, Series B 8.750% BBB- 10,026,008
533,000 HRPT Properties Trust, Series C 7.125% BBB- 10,766,600
430,800 Kimco Realty Corporation, Series G 7.750% BBB+ 9,988,098
3,997 Prologis Trust, Series C 8.540% BBB 208,094
95,275 Prologis Trust, Series G 6.750% BBB 2,002,681
7,600 PS Business Parks, Inc. 6.700% BBB- 144,096
412,088 PS Business Parks, Inc. 7.000% BBB- 8,076,925
4,800 PS Business Parks, Inc., Series I 6.875% BBB- 92,160
700 PS Business Parks, Inc., Series K 7.950% BBB- 15,407
243,000 PS Business Parks, Inc., Series L 7.600% BBB- 5,112,720
131,000 PS Business Parks, Inc., Series O 7.375% BBB- 2,665,850
249,836 Public Storage, Inc. 6.750% BBB+ 4,909,277
3,000 Public Storage, Inc., Series N 7.000% BBB+ 60,210
63,900 Public Storage, Inc., Series C 6.600% BBB+ 1,207,710
149,000 Public Storage, Inc., Series E 6.750% BBB+ 2,921,890
21,400 Public Storage, Inc., Series F 6.450% BBB+ 403,390
16,511 Public Storage, Inc., Series H 6.950% BBB+ 327,578
19,000 Public Storage, Inc., Series I 7.250% BBB+ 399,760
40,000 Public Storage, Inc., Series K 7.250% BBB+ 842,000
726,938 Public Storage, Inc., Series M 6.625% BBB+ 13,811,822
31,500 Public Storage, Inc., Series V 7.500% BBB+ 702,450
3,403 Realty Income Corporation, Series E 6.750% BBB- 706,807
166,100 Regency Centers Corporation 7.450% BBB- 3,662,505
6,000 United Dominion Realty Trust 6.750% BBB- 122,100
600 Vornado Realty Trust, Series F 6.750% BBB- 12,372
169,000 Vornado Realty Trust, Series G 6.625% BBB- 3,324,230
185,000 Vornado Realty Trust, Series H 6.750% BBB- 3,816,550
1,542,834 Wachovia Preferred Funding Corporation 7.250% A2 35,006,903
126,800 Weingarten Realty Trust, Series E 6.950% A- 2,624,760
-----------------------------------------------------------------------------------------------------------------------------
Total Real Estate/Mortgage 168,664,183
----------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 1.1%
70,800 Countrywide Capital Trust III (PPLUS) 8.050% BBB- 856,680
732,590 Countrywide Capital Trust IV 6.750% BBB- 8,637,236
783,026 Countrywide Capital Trust V 7.000% BBB- 8,965,648
-----------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 18,459,564
----------------------------------------------------------------------------------------------------------------
U.S. AGENCY - 0.7%
42,200 Federal Home Loan Mortgage Corporation 6.550% AA- 981,149
175,000 Federal Home Loan Mortgage Corporation 8.375% AA- 4,576,249
150,000 Federal National Mortgage Association 7.000% AA- 6,951,569
-----------------------------------------------------------------------------------------------------------------------------
Total U.S. Agency 12,508,967
----------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
52,800 United States Cellular Corporation 8.750% A- 1,316,831
-----------------------------------------------------------------------------------------------------------------------------
TOTAL $25 PAR (OR SIMILAR) PREFERRED SECURITIES 776,671,901
(COST $923,714,844)
================================================================================================================
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (5) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE SENIOR LOAN INTERESTS - 10.6% (6.9% OF TOTAL INVESTMENTS) (6)
AEROSPACE & DEFENSE - 0.1%
$ 670 DAE Aviation Holdings, Inc., Asset Sale 7.803% 7/31/09 BB- $ 668,637
756 DAE Aviation Holdings, Inc., Term Loan B-1 8.738% 7/31/14 BB- 752,858
572 DAE Aviation Holdings, Inc., Term Loan B-2 8.748% 7/31/13 BB- 569,987
----------------------------------------------------------------------------------------------------------------------------------
1,998 Total Aerospace & Defense 1,991,482
----------------------------------------------------------------------------------------------------------------------------------
54
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (5) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
AIRLINES - 0.3%
$ 2,504 ACTS Aero Technical Support & Services Inc., Term 8.474% 10/01/14 N/R $ 2,416,018
Loan
992 American Airlines, Inc., Term Loan 6.852% 12/17/10 BB- 958,206
1,990 Delta Air Lines, Inc., Term Loan 8.082% 4/30/14 B 1,901,871
----------------------------------------------------------------------------------------------------------------------------------
5,486 Total Airlines 5,276,095
----------------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.5%
3,577 Building Materials Corporation of America, Term 7.938% 2/22/14 BB 3,027,302
Loan
2,985 Nortek, Inc., Term Loan B 7.100% 8/27/11 Ba2 2,783,117
994 Stile Acquisition Corporation, Canadian Term Loan 7.084% 4/05/13 BB 907,490
993 Stile Acquisition Corporation, Term Loan B 7.084% 4/05/13 BB 906,700
988 TFS Acquisition, Term Loan 8.330% 8/11/13 B+ 967,750
----------------------------------------------------------------------------------------------------------------------------------
9,537 Total Building Products 8,592,359
----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.3%
1,995 Celanese Holdings LLC, Term Loan 6.979% 4/02/14 BB 1,928,626
2,985 Hercules Offshore, Inc., Term Loan 6.580% 7/11/13 BB 2,896,569
----------------------------------------------------------------------------------------------------------------------------------
4,980 Total Chemicals 4,825,195
----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES - 0.2%
239 Aramark Corporation, Letter of Credit 6.705% 1/24/14 BB- 228,068
3,349 Aramark Corporation, Term Loan 6.830% 1/24/14 BB- 3,191,056
----------------------------------------------------------------------------------------------------------------------------------
3,588 Total Commercial Services & Supplies 3,419,124
----------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.1%
340 Bluegrass Container Company LLC, Delayed Draw 7.095% 6/30/13 BB 338,288
1,137 Bluegrass Container Company LLC, Term Loan B 7.095% 6/30/13 BB 1,130,593
----------------------------------------------------------------------------------------------------------------------------------
1,477 Total Containers & Packaging 1,468,881
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES - 0.3%
2,993 Cengage Learning Acquisitions, Inc., Term Loan 7.598% 7/05/14 B+ 2,836,848
258 Laureate Education, Inc., Delayed Draw, Term Loan 1.000% 8/17/07 B1 (9,161)
B, (7), (8)
1,742 Laureate Education, Inc., Term Loan B 8.729% 8/17/14 B1 1,680,097
----------------------------------------------------------------------------------------------------------------------------------
4,993 Total Diversified Consumer Services 4,507,784
----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.3%
2,993 Alltel Communications, Inc., Term Loan B3 7.778% 5/18/15 BB- 2,886,100
1,506 Intelsat, Tranche B-2, Term Loan 7.225% 12/03/13 BB 1,480,770
----------------------------------------------------------------------------------------------------------------------------------
4,499 Total Diversified Telecommunication Services 4,366,870
----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.6%
5,459 Calpine Corporation, DIP Term Loan 7.080% 3/29/09 N/R 5,329,105
2,000 TXU Corporation, Term Loan B-2 8.396% 10/10/14 Ba3 1,965,752
4,000 TXU Corporation, Term Loan B-3 8.396% 10/10/14 Ba3 3,935,682
----------------------------------------------------------------------------------------------------------------------------------
11,459 Total Electric Utilities 11,230,539
----------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.2%
1,451 Kinder Morgan, Inc., Term Loan B 6.350% 5/30/14 Ba2 1,443,996
2,488 PGS Finance, Inc., Term Loan 6.580% 6/29/15 Ba2 2,417,539
----------------------------------------------------------------------------------------------------------------------------------
3,939 Total Energy Equipment & Services 3,861,535
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3%
5,985 Biomet, Inc., Term Loan 7.858% 12/25/13 BB- 5,928,891
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 1.4%
371 Community Health Systems, Inc., Delayed Draw, Term 0.500% 7/25/14 Ba3 (13,360)
Loan, (7), (8)
7,381 Community Health Systems, Inc., Term Loan 7.331% 7/25/14 BB 7,115,635
499 Concentra, Inc., Term Loan 7.080% 6/25/14 B+ 467,994
5,945 HCA, Inc., Term Loan 7.080% 11/18/13 BB 5,736,654
993 Health Management Associates, Inc., Term Loan 6.580% 2/28/14 Ba2 928,677
715 IASIS Healthcare LLC, Delayed Term Loan, (7) 7.151% 3/14/14 Ba2 493,939
191 IASIS Healthcare LLC, Letter of Credit 4.531% 3/14/14 Ba2 181,320
2,078 IASIS Healthcare LLC, Term Loan 7.064% 3/14/14 Ba2 1,975,058
747 LifePoint Hospitals, Inc., Term Loan B 6.715% 4/18/12 BB 713,929
1,853 Select Medical Corporation, Term Loan 6.997% 2/24/12 Ba2 1,755,891
995 Select Medical Corporation, Term Loan B-2 6.832% 2/24/12 Ba2 942,970
366 Sun Healthcare Group, Inc., Delayed Term Loan 6.973% 4/12/14 Ba2 351,256
566 Sun Healthcare Group, Inc., Synthetic Letter of 6.830% 4/19/14 Ba2 543,779
Credit
55
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (5) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES (continued)
$ 2,505 Sun Healthcare Group, Inc., Term Loan 7.171% 4/19/14 Ba2 $ 2,404,924
995 Vanguard Health Holding Company II LLC, 7.095% 9/23/11 Ba3 964,327
Replacement Term Loan
----------------------------------------------------------------------------------------------------------------------------------
26,200 Total Health Care Providers & Services 24,562,993
----------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.5%
985 Cedar Fair LP, Term Loan 6.845% 8/30/12 BB 934,765
998 Orbitz Worldwide, Inc., Term Loan, 7.830% 7/25/14 BB- 945,131
134 Travelport, LLC, Letter of Credit 7.080% 8/23/13 BB- 127,662
669 Travelport, LLC, Term Loan 7.080% 8/23/13 BB- 636,240
1,200 Venetian Casino Resort, LLC, Delayed Draw, Term 0.750% 5/23/14 BB (71,523)
Loan, (7), (8)
4,776 Venetian Casino Resort, LLC, Term Loan 6.580% 5/23/14 BB 4,491,338
968 Wintergames Holdings, Term Loan 8.102% 4/24/08 N/R 960,439
----------------------------------------------------------------------------------------------------------------------------------
9,730 Total Hotels, Restaurants & Leisure 8,024,052
----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.2%
1,084 NRG Energy, Inc., Credit Linked Deposit 6.480% 2/01/13 Ba1 1,035,706
2,347 NRG Energy, Inc., Term Loan 6.580% 2/01/13 Ba1 2,243,264
----------------------------------------------------------------------------------------------------------------------------------
3,431 Total Independent Power Producers & Energy Traders 3,278,970
----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.2%
3,987 Conseco, Inc., Term Loan 6.845% 10/10/13 Ba3 3,672,610
----------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.1%
1,000 Sabre, Inc., Term Loan 6.960% 9/30/14 B+ 914,432
----------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.2%
3,990 First Data Corporation Term Loan, B-1 7.630% 9/24/14 BB- 3,792,746
----------------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.3%
6,000 Winmar OpCo LLC, Term Loan 10.500% 1/03/12 B2 5,986,665
----------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.1%
1,975 Oshkosh Truck Corporation, Term Loan 6.900% 12/06/13 BBB- 1,899,366
----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.2%
3,982 Cequel Communications LLC, Term Loan B 7.212% 11/05/13 BB- 3,733,588
4,075 Charter Communications Operating Holdings, LLC, 6.990% 3/06/14 B+ 3,815,416
Term Loan
2,500 Citadel Broadcasting Corporation, Term Loan 6.465% 6/12/14 BB- 2,273,438
3,980 Discovery Communications Holdings LLC, Term Loan 6.830% 5/14/14 N/R 3,864,083
995 Idearc, Inc., Term Loan 6.830% 11/17/14 BBB- 949,240
1,990 Metro-Goldwyn-Mayer Studios, Inc., Term Loan 8.108% 4/08/12 N/R 1,848,773
3,970 Neilsen Finance LLC, Term Loan 7.276% 8/09/13 Ba3 3,772,561
951 Philadelphia Newspapers, Term Loan 8.750% 6/29/13 N/R 855,005
1,990 Readers Digest Association, Inc., Term Loan 7.188% 3/02/14 B+ 1,815,875
5,970 Tribune Company, Term Loan B 7.910% 6/04/14 BB 5,097,634
3,433 Tribune Company, Term Loan X 7.994% 6/04/09 BB 3,322,363
268 Univision Communications, Delayed Term Loan, (7), 0.100% 9/29/14 Ba3 (23,154)
(8)
7,732 Univision Communications, Inc., Term Loan 7.207% 9/29/14 Ba3 7,064,698
----------------------------------------------------------------------------------------------------------------------------------
41,836 Total Media 38,389,520
----------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.3%
3,970 Georgia-Pacific Corporation, Term Loan B 6.866% 12/21/12 BB+ 3,788,934
45 Ply Gem Industries, Inc., Canadian Term Loan 7.580% 8/15/11 BB- 41,099
1,435 Ply Gem Industries, Inc., Term Loan B3 7.580% 8/15/11 BB- 1,313,853
----------------------------------------------------------------------------------------------------------------------------------
5,450 Total Paper & Forest Products 5,143,886
----------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.3%
1,000 LNR Property Corporation, Term Loan B 7.630% 7/12/11 BB 956,875
3,980 Realogy Corporation Delayed Draw Term Loan 8.240% 10/01/13 BB- 3,493,578
----------------------------------------------------------------------------------------------------------------------------------
4,980 Total Real Estate Management & Development 4,450,453
----------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.3%
6,419 Swift Transportation Company, Inc., Term Loan 7.938% 5/10/14 BB- 5,297,355
----------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.2%
2,787 Dealer Computer Services, Inc., Term Loan 6.843% 10/26/12 BB 2,706,945
1,256 Intergraph Corporation, Term Loan 7.075% 5/29/13 BB- 1,210,539
----------------------------------------------------------------------------------------------------------------------------------
4,043 Total Software 3,917,484
----------------------------------------------------------------------------------------------------------------------------------
56
WEIGHTED
PRINCIPAL AVERAGE
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY (5) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.7%
$ 1,977 Blockbuster, Inc., Tranche B, Term Loan 9.212% 8/20/11 B $ 1,905,380
6,416 Burlington Coat Factory Warehouse Corporation, 7.320% 5/28/11 B2 5,688,753
Term Loan
3,459 Michaels Stores, Inc., Term Loan 7.614% 10/31/13 B 3,191,277
1,500 TRU 2005 RE Holding Co I LLC, Term Loan 8.225% 12/08/08 B3 1,449,219
----------------------------------------------------------------------------------------------------------------------------------
13,352 Total Specialty Retail 12,234,629
----------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.4%
6,000 Asurion Corporation, Term Loan 7.878% 7/03/14 N/R 5,803,124
1,990 Cricket Communications, Inc., Term Loan 7.830% 1/10/11 Ba2 1,963,425
----------------------------------------------------------------------------------------------------------------------------------
7,990 Total Wireless Telecommunication Services 7,766,549
----------------------------------------------------------------------------------------------------------------------------------
$ 198,324 TOTAL VARIABLE RATE SENIOR LOAN INTERESTS (COST 184,800,465
$192,771,958)
==================================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS - 10.3% (6.7% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.3%
$ 550 Alliant Techsystems, Inc., Convertible Bonds 2.750% 9/15/11 B+ $ 728,063
550 Alliant Techsystems, Inc., Convertible Bonds 2.750% 2/15/24 B+ 817,438
650 DRS Technologies, Inc., Convertible Bonds, 144A 2.000% 2/01/26 B+ 709,313
850 L-3 Communications Corporation, Convertible Bond 3.000% 8/01/35 BB+ 1,031,688
1,050 Lockheed Martin Corporation 4.620% 8/15/33 A- 1,547,490
-------------------------------------------------------------------------------------------------------------------------------
3,650 Total Aerospace & Defense 4,833,992
-------------------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.4%
5,100 Amgen Inc., 144A 0.125% 2/01/11 A+ 4,672,875
1,250 Genzyme Corporation 1.250% 12/01/23 BBB 1,446,875
-------------------------------------------------------------------------------------------------------------------------------
6,350 Total Biotechnology 6,119,750
-------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
350 BlackRock Inc. 2.625% 2/15/35 A+ 755,125
-------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 0.2%
3,850 U.S. Bancorp, Convertible Bonds 3.148% 8/06/37 AA 3,844,610
-------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 0.5%
750 Ciena Corporation, Convertible Bond 0.875% 6/15/17 B 794,063
2,550 Ciena Corporation 3.750% 2/01/08 B 2,550,000
300 CommScope Inc. 1.000% 3/15/24 B 688,500
350 Juniper Networks Inc., Convertible Subordinated 0.000% 6/15/08 BB 583,188
Notes, (4)
950 Liberty Media Corporation, Senior Debentures 3.500% 1/15/31 BB+ 709,671
Exchangeable for Motorola Common Stock
700 Lucent Technologies Inc., Series B 2.750% 6/15/25 BB- 581,875
1,050 Lucent Technologies Inc. 2.750% 6/15/23 BB- 963,375
1,006 Nortel Networks Corp. 4.250% 9/01/08 B- 992,168
1,000 Nortel Networks Corporation, Convertible Bonds, 1.750% 4/15/12 B- 808,750
144A
850 Nortel Networks Corporation, Convertible Bonds, 2.125% 4/15/14 B- 663,000
144A
-------------------------------------------------------------------------------------------------------------------------------
9,506 Total Communications Equipment 9,334,590
-------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - 0.4%
1,750 EMC Corporation, Convertible Bonds 144A 1.750% 12/01/11 BBB+ 2,373,438
1,300 EMC Corporation, Convertible Bonds 144A 1.750% 12/01/13 BBB+ 1,789,125
50 EMC Corporation, Convertible Bonds 144A 1.750% 12/01/13 BBB+ 68,813
300 Maxtor Corporation, Convertible Bonds 2.375% 8/15/12 BB+ 478,125
1,750 Sandisk Corporation, Convertible Bond 1.000% 5/15/13 BB- 1,415,313
-------------------------------------------------------------------------------------------------------------------------------
5,150 Total Computers & Peripherals 6,124,814
-------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING - 0.1%
350 Fluor Corporation, Convertible Bonds 1.500% 2/15/24 A3 910,875
350 Quanta Services, Inc., Convertible Bonds 4.500% 10/01/23 B+ 837,375
-------------------------------------------------------------------------------------------------------------------------------
700 Total Construction & Engineering 1,748,250
-------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.0%
750 Sealed Air Corporation, 144A 3.000% 6/30/33 BBB 721,875
-------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 0.0%
350 Leucadia National Corporation, Convertible Bonds 3.750% 4/15/14 BB- 760,375
-------------------------------------------------------------------------------------------------------------------------------
57
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1%
$ 1,400 Qwest Communications International Inc., 3.500% 11/15/25 B+ $ 1,874,250
Convertible Bond
-------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
700 Centerpoint Energy Inc., Convertible Bond 3.750% 5/15/23 BBB- 1,076,250
400 Covanta Holding Corporation, Convertible Bonds 1.000% 2/01/27 B1 448,000
-------------------------------------------------------------------------------------------------------------------------------
1,100 Total Electric Utilities 1,524,250
-------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.1%
650 General Cable Corporation, Convertible Bonds 0.875% 11/15/13 B+ 1,047,313
-------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.2%
700 Anixter Internatinal Inc., Convertible Bond, (4) 0.000% 7/07/33 BB- 666,750
500 Itron Inc. 2.500% 8/01/26 B- 804,375
700 Tech Data Corporation, Convertible Bonds 2.750% 12/15/26 BBB- 682,500
700 Vishay Intertechnology Inc. 3.625% 8/01/23 B+ 700,000
-------------------------------------------------------------------------------------------------------------------------------
2,600 Total Electronic Equipment & Instruments 2,853,625
-------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 1.6%
400 Cooper Cameron Corporation 1.500% 5/15/24 BBB+ 1,120,000
1,200 Halliburton Company, Convertible Bond 3.125% 7/15/23 A 2,437,500
5,600 Nabors Industries Inc., Convertible Bond Series 0.940% 5/15/11 A- 5,292,000
144A
2,350 Nabors Industries Inc., Convertible Bond Series 0.940% 5/15/11 A- 2,220,750
144A
6,900 Nabors Industries Inc., (4) 0.000% 6/15/23 N/A 6,943,125
400 Pride International Inc. 3.250% 5/01/33 BB+ 541,000
150 Schlumberger Limited, Convertible Bonds 1.500% 6/01/23 A+ 408,000
750 Schlumberger Limited 2.125% 6/01/23 A+ 1,855,313
2,800 Transocean Inc. 1.500% 12/15/37 BBB+ 3,062,500
2,800 Transocean Inc. 1.500% 12/15/37 BBB+ 3,055,500
-------------------------------------------------------------------------------------------------------------------------------
23,350 Total Energy Equipment & Services 26,935,688
-------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.2%
1,250 Archer Daniels Midland Company, Convertible Bonds 0.875% 2/15/14 A 1,514,063
300 Archer Daniels Midland Company, Convertible Bonds 0.875% 2/15/14 A 363,375
1,400 General Mills, Inc., Convertible Bonds 5.134% 4/11/37 BBB+ 1,403,500
-------------------------------------------------------------------------------------------------------------------------------
2,950 Total Food Products 3,280,938
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
750 Advanced Medical Optics 3.250% 8/01/26 B- 594,375
500 American Medical Systems Holdings, Convertible 3.250% 7/01/36 B 496,250
Bond
450 Beckman Coulter Inc., Convertible Bonds, 144A 2.500% 12/15/36 BBB 524,813
1,600 Hologic Inc. 2.000% 12/15/37 B 1,738,000
4,000 Medtronic, Inc., Convertible Bond 1.500% 4/15/11 AA- 4,290,000
250 Medtronic, Inc. 1.500% 4/15/11 AA- 268,125
1,050 Saint Jude Medical, Inc., Convertible Bonds 1.220% 12/15/08 BBB+ 1,057,875
-------------------------------------------------------------------------------------------------------------------------------
8,600 Total Health Care Equipment & Supplies 8,969,438
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.6%
1,250 Health Management Associates Inc. 1.500% 8/01/23 Baa3 1,231,250
550 Laboratory Corporation of America Holdings, (4) 0.000% 9/11/21 BBB- 566,500
1,000 LifePoint Hospitals, Inc., Convertible Bonds 3.500% 5/15/14 B 893,750
350 Manor Care, Inc., Convertible Bond 2.000% 6/01/36 B 472,938
850 Manor Care, Inc. 2.125% 8/01/35 Baa3 1,276,063
8,637 Omnicare, Inc. 3.250% 12/15/35 B+ 6,337,399
300 Saint Jude Medical, Inc., Convertible Bonds 1.220% 12/15/08 BBB+ 302,250
-------------------------------------------------------------------------------------------------------------------------------
12,937 Total Health Care Providers & Services 11,080,150
-------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 0.2%
850 Caesars Entertainment Inc. 5.243% 4/15/24 Baa3 1,157,870
850 Carnival Corporation 2.000% 4/15/21 A- 997,688
650 International Game Technology 2.600% 12/15/36 BBB 663,000
-------------------------------------------------------------------------------------------------------------------------------
2,350 Total Hotels, Restaurants & Leisure 2,818,558
-------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.3%
1,050 American Financial Group Inc. 1.486% 6/02/33 BBB 543,375
3,850 Prudential Financial, Inc., Convertible Bonds 2.741% 12/12/36 A+ 3,856,160
-------------------------------------------------------------------------------------------------------------------------------
4,900 Total Insurance 4,399,535
-------------------------------------------------------------------------------------------------------------------------------
58
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL - 0.1%
$ 700 Amazon.com Inc., Convertible Bonds 4.750% 2/01/09 Ba3 $ 853,125
250 Priceline.com, Inc., Convertible Bonds 0.500% 9/30/11 B+ 719,063
250 Priceline.com, Inc., Convertible Bonds 0.750% 9/30/13 B+ 727,500
-------------------------------------------------------------------------------------------------------------------------------
1,200 Total Internet & Catalog Retail 2,299,688
-------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - 0.0%
700 Yahoo! Inc., Convertible Bond, (4) 0.000% 4/01/08 BBB- 818,125
-------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.1%
1,400 Electronic Data Systems Corporation, Convertible 3.875% 7/15/23 BBB- 1,398,250
Bonds
-------------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS - 0.0%
700 Eastman Kodak Company 3.375% 10/15/33 B 715,750
-------------------------------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES - 0.2%
500 Apogent Technologies, Inc., Convertible Bonds 3.716% 12/15/33 BBB+ 1,005,050
700 Charles River Laboratories International, Inc. 2.250% 6/15/13 BB- 1,031,625
350 Fisher Scientific International, Inc., Convertible 2.500% 10/01/23 BBB+ 865,375
Bonds
-------------------------------------------------------------------------------------------------------------------------------
1,550 Total Life Sciences Tools & Services 2,902,050
-------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.2%
1,100 Danaher Corporation, Convertible Bonds, (4) 0.000% 1/22/21 A+ 1,405,250
350 Kaydon Corporation, Convertible Bonds 4.000% 5/23/23 BB- 658,875
700 Trinity Industries Inc., Convertible Bonds 3.875% 6/01/36 Ba2 630,875
-------------------------------------------------------------------------------------------------------------------------------
2,150 Total Machinery 2,695,000
-------------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.9%
800 ELF Special Financing Limited, Convertible Bonds, 5.341% 6/15/09 Ba3 759,440
144A
2,950 Getty Images, Inc., Convertible Bonds 0.500% 6/09/23 Ba2 2,868,875
400 Hasbro Inc. 2.750% 12/01/21 BBB 509,500
350 Interpublic Group Companies Inc. 4.500% 3/15/23 Ba3 357,000
700 Interpublic Group, Inc., Convertible Bonds 4.250% 3/15/23 Ba3 688,625
400 Lamar Advertising Company, Convertible 2.875% 12/31/10 B1 466,500
900 Liberty Media Corporation, Senior Debentures, 3.250% 3/15/31 BB+ 662,625
Exchangeable for Class B Viacom Common Stock
1,550 Liberty Media Corporation, Senior Debentures, 4.000% 11/15/29 BB+ 1,007,500
Exchangeable for PCS Common Stock, Series 1
2,100 Liberty Media Corporation 0.750% 3/30/23 BB+ 2,197,125
750 Omnicom Group, Inc., (4) 0.000% 7/01/38 A- 815,625
1,750 Omnicom Group, Inc., (4) 0.000% 2/07/31 A- 1,815,625
700 Sinclair Broadcast Group, Inc., Convertible Bonds 3.000% 5/15/27 B 630,000
2,100 Walt Disney Company, Convertible Senior Notes 2.125% 4/15/23 A 2,404,500
-------------------------------------------------------------------------------------------------------------------------------
15,450 Total Media 15,182,940
-------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.3%
3,000 Gold Reserve, Inc., Convertible Bonds 5.500% 6/15/22 N/A 2,962,500
900 Newmont Mining Corporation 1.625% 7/15/17 BBB+ 1,123,875
300 Newmont Mining Corp., Senior Convertible Note 1.625% 7/15/17 BBB 374,625
-------------------------------------------------------------------------------------------------------------------------------
4,200 Total Metals & Mining 4,461,000
-------------------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL - 0.0%
350 Saks, Inc., Convertible Bonds 2.000% 3/15/24 B+ 622,563
-------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.8%
1,150 Chesapeake Energy Corporation, 144A 2.750% 11/15/35 BB 1,351,250
1,650 Chesapeake Energy Corporation, Convertible Bonds 2.500% 5/15/37 BB 1,841,813
850 Devon Energy Corporation 4.900% 8/15/08 Baa1 1,486,438
7,600 Peabody Energy Corp., Convertible Bond 4.750% 12/15/66 Ba3 9,671,000
-------------------------------------------------------------------------------------------------------------------------------
11,250 Total Oil, Gas & Consumable Fuels 14,350,501
-------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.5%
700 Allergan Inc., Convertible Bond 1.500% 4/01/26 A 823,375
1,050 Bristol-Myers Squibb Company, Convertible Bond 4.491% 9/15/23 A+ 1,057,875
900 Myland Labs, Inc., Convertible Bonds 1.250% 3/15/12 B 821,250
895 Teva Pharmaceutical Finance, Series A 0.500% 2/01/24 BBB 1,125,463
900 Teva Pharmaceutical Finance, Series B 0.250% 2/01/24 BBB 1,234,125
1,050 Watson Pharmaceuticals Inc., Convertible Bond 1.750% 3/15/23 BB+ 1,000,125
2,100 Wyeth, Convertible Bond 4.888% 1/15/24 A+ 2,226,084
-------------------------------------------------------------------------------------------------------------------------------
7,595 Total Pharmaceuticals 8,288,297
-------------------------------------------------------------------------------------------------------------------------------
59
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.7%
$ 1,750 Boston Properties Limited Partnership, Convertible 2.875% 2/15/37 BBB+ $ 1,634,063
Bonds, 144A
650 Brandywine Operating Partnership, Convertible 3.875% 10/15/26 BBB- 573,625
Bonds
750 BRE Properties Inc., Convertible Bond 4.125% 8/15/26 BBB 693,750
1,050 Developers Diversified Realty Corporation, 3.000% 3/15/12 BBB 901,688
Convertible Bonds
700 Duke Realty Corporation, Series D 3.750% 12/01/11 BBB+ 644,000
1,100 Hospitality Properties Trust, Convertible Bonds 3.800% 3/15/27 BBB 983,125
700 Host Hotels & Resorts Inc, Convertible Bonds, 144A 2.625% 4/15/27 BB 601,125
900 Host Marriot LP, Convertible Bonds, 144A 3.250% 4/15/24 Ba1 1,035,000
2,500 Prologis, Convertible Bonds, 144A 2.250% 4/01/37 BBB+ 2,475,000
900 Vornado Realty Trust, Convertible Bonds 2.850% 4/01/27 BBB 799,875
1,000 Vornado Realty, Convertible Bond 3.875% 4/15/25 BBB 1,128,750
900 Weingarten Realty Investment Trust, Convertible 3.950% 8/01/26 BBB+ 847,125
Bonds
-------------------------------------------------------------------------------------------------------------------------------
12,900 Total Real Estate 12,317,126
-------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0%
550 Forest City Enterprises, Inc., Convertible Bonds 3.625% 10/15/11 BB- 517,110
-------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.0%
350 CSX Corporation, (4) 0.000% 10/30/21 BBB- 547,750
-------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.4%
1,400 Advanced Micro Devices Inc., Convertible Bond 5.750% 8/15/12 B 1,120,000
1,400 Advanced Micro Devices, Inc., Convertible Bonds 6.000% 5/01/15 B 1,002,750
750 Advanced Micro Devices, Inc., Convertible Bonds 6.000% 5/01/15 B 537,188
2,150 Intel Corporation, Convertible Bond 2.950% 12/15/35 A- 2,330,063
1,200 Micron Technology, Inc. 1.875% 6/01/14 BB- 961,500
700 ON Semiconductor Corporation 2.625% 12/15/26 B 763,000
1,000 Xilinx Inc., Convertible Bond, 144A 3.125% 3/15/37 BB 865,000
50 Xilinx Inc., Convertible Bond, 144A 3.125% 3/15/37 BB 43,250
-------------------------------------------------------------------------------------------------------------------------------
8,650 Total Semiconductors & Equipment 7,622,751
-------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.1%
600 Computer Associates International Inc., 1.625% 12/15/09 Ba1 792,000
Convertible Bond, Series 144A
700 Red Hat Inc., Convertible Bond 0.500% 1/15/24 B+ 712,250
-------------------------------------------------------------------------------------------------------------------------------
1,300 Total Software 1,504,250
-------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.0%
400 TJX Companies, Inc., (4) 0.000% 2/13/21 A- 386,500
-------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.0%
400 Iconix Brand Group, Inc., Convertible Notes 1.875% 6/30/12 B- 388,000
-------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.1%
2,150 Countrywide Financial Corporation, Convertible 1.714% 4/15/37 BBB+ 1,687,320
Bonds, 144A
-------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
400 American Tower Corporation 3.000% 8/15/12 BB+ 849,993
1,600 Liberty Media Corporation Convertible Bonds 3.750% 2/15/30 BB+ 909,994
-------------------------------------------------------------------------------------------------------------------------------
2,000 Total Wireless Telecommunication Services 1,759,987
-------------------------------------------------------------------------------------------------------------------------------
$ 166,738 TOTAL CONVERTIBLE BONDS (COST $177,169,986) 179,492,084
===============================================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 10.0% (6.5% OF TOTAL INVESTMENTS)
AEROSPACE & DEFENSE - 0.1%
$ 1,000 Hexcel Corporation, Term Loan 6.750% 2/01/15 B+ $ 985,000
---------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS - 0.0%
800 Keystone Automotive Operations Inc. 9.750% 11/01/13 CCC 592,000
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS - 0.0%
500 LVB Acquisition Merger LLC 10.000% 10/15/17 B- 512,500
---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.2%
1,000 Nell AF Sarl 8.375% 8/15/15 B- 812,500
3,000 Rockwood Specialties Group Inc., Series WI 7.500% 11/15/14 B 2,985,000
---------------------------------------------------------------------------------------------------------------------------------
4,000 Total Chemicals 3,797,500
---------------------------------------------------------------------------------------------------------------------------------
60
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING - 0.3%
$ 3,000 Owens-Brockway Glass Containers, Guaranteed Senior 8.250% 5/15/13 B $ 3,127,500
Note
3,000 Owens-Illinois Inc. 7.500% 5/15/10 B 3,052,500
---------------------------------------------------------------------------------------------------------------------------------
6,000 Total Containers & Packaging 6,180,000
---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2%
2,000 Intelsat Subsidiary Holding Company Limited 8.500% 1/15/13 B 2,020,000
750 Syniverse Technologies Inc., Series B 7.750% 8/15/13 B 727,500
---------------------------------------------------------------------------------------------------------------------------------
2,750 Total Diversified Telecommunication Services 2,747,500
---------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.1%
1,000 Sierra Pacific Resources, Series 2006 6.750% 8/15/17 Ba3 1,016,591
---------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES - 0.1%
2,500 Pride International Inc. 7.375% 7/15/14 BB+ 2,581,250
---------------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING - 0.1%
2,000 Stater Brothers Holdings Inc. 8.125% 6/15/12 B+ 1,985,000
---------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS - 0.5%
4,610 Del Monte Corporation 8.625% 12/15/12 B 4,667,625
1,096 Dole Foods Company 8.625% 5/01/09 B- 1,063,120
2,700 Dole Foods Company 7.875% 7/15/13 B- 2,497,500
---------------------------------------------------------------------------------------------------------------------------------
8,406 Total Food Products 8,228,245
---------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES - 0.5%
3,000 Community Health Systems, Inc. 8.875% 7/15/15 B- 3,071,250
1,700 HCA Inc. 9.125% 11/15/14 BB- 1,772,250
700 HCA Inc. 9.250% 11/15/16 BB- 736,750
3,000 US Oncology Inc. 10.750% 8/15/14 B3 2,977,500
---------------------------------------------------------------------------------------------------------------------------------
8,400 Total Health Care Providers & Services 8,557,750
---------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE - 1.2%
4,075 Boyd Gaming Corporation 7.750% 12/15/12 B+ 4,146,313
1,500 Herbst Gaming Inc. 7.000% 11/15/14 CCC+ 892,500
1,650 Jacobs Entertainment Inc. 9.750% 6/15/14 B- 1,542,750
2,000 Landry's Restaurants Inc. 9.500% 12/15/14 B3 1,990,000
1,000 Park Place Entertainment 7.875% 3/15/10 Ba1 945,000
2,000 Pinnacle Entertainment Inc. 8.250% 3/15/12 B- 2,030,000
3,000 Pinnacle Entertainment Inc. 8.750% 10/01/13 B- 3,067,500
1,750 Seminole Hard Rock Entertainment, Inc. 7.651% 3/15/14 BB 1,680,000
4,000 Universal City Development Partners 11.750% 4/01/10 B1 4,150,000
---------------------------------------------------------------------------------------------------------------------------------
20,975 Total Hotels, Restaurants & Leisure 20,444,063
---------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.1%
500 Mirant North America LLC 7.375% 12/31/13 B1 503,750
600 NRG Energy Inc. 7.250% 2/01/14 B1 586,500
600 NRG Energy Inc. 7.375% 2/01/16 B1 586,500
---------------------------------------------------------------------------------------------------------------------------------
1,700 Total Independent Power Producers & Energy Traders 1,676,750
---------------------------------------------------------------------------------------------------------------------------------
IT SERVICES - 0.6%
3,500 First Data Corporation 9.875% 9/24/15 B- 3,259,375
1,950 Global Cash Access LLC 8.750% 3/15/12 B 1,842,750
4,750 Sungard Data Systems Inc. 9.125% 8/15/13 B- 4,856,875
---------------------------------------------------------------------------------------------------------------------------------
10,200 Total IT Services 9,959,000
---------------------------------------------------------------------------------------------------------------------------------
MACHINERY - 0.2%
3,000 Greenbrier Companies, Inc. 8.375% 5/15/15 B+ 2,880,000
---------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.6%
6,900 Allbritton Communications Company, Series B 7.750% 12/15/12 B1 6,865,500
2,000 AMC Entertainment Inc. 8.000% 3/01/14 B2 1,890,000
5,000 Cablevision Systems Corporation, Series B 8.125% 8/15/09 B+ 5,100,000
3,000 Cablevision Systems Corporation 7.250% 7/15/08 B+ 3,011,250
2,000 Cablevision Systems Corporation 8.125% 7/15/09 B+ 2,037,500
2,000 Charter Communications Operating LLC, 144A 8.000% 4/30/12 B+ 1,940,000
1,000 Dex Media West LLC 8.500% 8/15/10 Ba3 1,018,750
2,198 Dex Media West LLC 9.875% 8/15/13 B1 2,291,415
4,000 Medianews Group Inc. 6.375% 4/01/14 B 2,420,000
1,950 Panamsat Corporation 9.000% 8/15/14 B2 1,969,500
61
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
MEDIA (continued)
$ 4,000 R.H. Donnelley Corporation 8.875% 10/15/17 B $ 3,720,000
2,000 Sun Media Corporation 7.625% 2/15/13 Ba1 1,957,500
6,200 Vertis Inc. 9.750% 4/01/09 B1 5,735,000
5,500 Young Broadcasting Inc., Senior Subordinated Note 10.000% 3/01/11 Caa1 4,324,375
2,000 Young Broadcasting Inc. 8.750% 1/15/14 Caa1 1,432,500
---------------------------------------------------------------------------------------------------------------------------------
49,748 Total Media 45,713,290
---------------------------------------------------------------------------------------------------------------------------------
METALS & MINING - 0.3%
5,200 MagIndustries Corporation, (11) 11.000% 12/14/12 N/A 5,229,375
---------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES - 0.2%
2,400 Dynegy Holdings, Inc., Term Loan 8.375% 5/01/16 B2 2,358,000
500 Northwestern Corporation 5.875% 11/01/14 BBB 493,499
---------------------------------------------------------------------------------------------------------------------------------
2,900 Total Multi-Utilities 2,851,499
---------------------------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.7%
600 Chaparral Energy Inc. 8.500% 12/01/15 CCC+ 543,000
4,345 Chesapeake Energy Corporation 7.750% 1/15/15 BB 4,453,625
1,000 Hilcorp Energy I LP/Hilcorp Finance Company, 7.750% 11/01/15 B 987,500
Series 144A
2,000 Premcor Refining Group Inc. 7.500% 6/15/15 BBB 2,072,902
3,000 SemGroup LP, 144A 8.750% 11/15/15 B1 2,865,000
1,500 Whiting Petroleum Corporation 7.000% 2/01/14 B1 1,492,500
---------------------------------------------------------------------------------------------------------------------------------
12,445 Total Oil, Gas & Consumable Fuels 12,414,527
---------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.4%
5,000 Georgia-Pacific Corporation 8.125% 5/15/11 B 5,100,000
2,000 Georgia-Pacific Corporation 7.700% 6/15/15 B 1,980,000
---------------------------------------------------------------------------------------------------------------------------------
7,000 Total Paper & Forest Products 7,080,000
---------------------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS - 0.1%
1,600 Prestige Brands Inc. 9.250% 4/15/12 B- 1,604,000
---------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.3%
3,000 Felcor Lodging Trust Inc., 144A 6.788% 12/01/11 Ba3 2,947,500
1,000 Trustreet Properties, Inc. 7.500% 4/01/15 AAA 1,077,262
500 Ventas Realty LP, Series WI 7.125% 6/01/15 BB+ 507,500
---------------------------------------------------------------------------------------------------------------------------------
4,500 Total Real Estate 4,532,262
---------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 0.2%
2,400 Avago Technologies Finance Pte Limited 10.375% 12/01/13 B 2,523,000
2,000 NXP BV 7.974% 10/15/13 BB- 1,847,500
---------------------------------------------------------------------------------------------------------------------------------
4,400 Total Semiconductors & Equipment 4,370,500
---------------------------------------------------------------------------------------------------------------------------------
SOFTWARE - 0.1%
3,000 Telcorida Technologies, Inc. 8.716% 7/15/12 B 2,692,500
---------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.5%
1,000 Quiksilver Inc. 6.875% 4/15/15 Ba3 862,500
7,000 Warnaco Inc., Senior Notes 8.875% 6/15/13 BB- 7,140,000
---------------------------------------------------------------------------------------------------------------------------------
8,000 Total Specialty Retail 8,002,500
---------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.2%
4,000 Jostens IH Corporation 7.625% 10/01/12 B1 4,040,000
---------------------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS - 0.1%
2,000 United Rentals North America Inc. 6.500% 2/15/12 B+ 1,825,000
---------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES - 0.1%
1,500 IPCS, Inc. 7.036% 5/01/13 B1 1,421,249
---------------------------------------------------------------------------------------------------------------------------------
$ 179,524 TOTAL CORPORATE BONDS (COST $182,818,554) 173,919,851
=================================================================================================================================
62
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
CAPITAL PREFERRED SECURITIES - 29.6% (19.1% OF TOTAL INVESTMENTS)
CAPITAL MARKETS - 3.0%
1,250 C.A. Preferred Fund Trust II 7.000% 10/30/49 A1 $ 1,217,274
26,850 C.A. Preferred Funding Trust 7.000% 1/30/49 A1 26,182,428
12,400 Dresdner Funding Trust I, 144A 8.151% 6/30/31 A1 12,680,401
3,500 First Union Capital Trust II, Series A 7.950% 11/15/29 A1 3,735,396
6,700 Kleinwort Benson Group PLC 5.377% 12/31/99 N/A 5,393,500
2,200 MUFG Capital Finance 2 4.850% 7/25/56 BBB+ 2,729,837
--------------------------------------------------------------------------------------------------------------------------------
Total Capital Markets 51,938,836
----------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS - 16.8%
2,000 AB Svensk Exportkredit, 144A 6.375% 10/27/49 AA- 1,989,424
7,600 Abbey National Capital Trust I 8.963% 6/30/50 A+ 8,950,961
43,100 AgFirst Farm Credit Bank 7.300% 12/15/53 A- 40,657,739
13,070 Bank One Capital III 8.750% 9/01/30 Aa3 15,173,434
2,600 BankAmerica Institutional Capital Trust, Series B, 7.700% 12/31/26 Aa2 2,716,035
144A
1,000 BanPonce Trust I, Series A 8.327% 2/01/27 Baa1 1,044,343
4,000 Barclays Bank PLC, 144A 8.550% 6/15/49 Aa3 4,216,308
1,000 Barclays Bank PLC 7.434% 12/15/57 Aa3 1,040,976
2,500 BBVA International Preferred S.A., Unipersonal 5.919% 10/18/49 A1 2,192,073
4,000 BNP Paribas 7.195% 12/25/57 AA- 3,955,560
1,000 Capital One Capital IV Corporation 6.745% 2/17/37 Baa1 745,489
2,000 CBG Florida REIT Corporation 7.114% 11/15/49 Baa3 1,861,446
10,100 DBS Capital Funding Corporation, 144A 7.657% 3/15/49 Aa3 10,800,051
2,400 Den Norske Bank, 144A 7.729% 6/29/49 Aa3 2,559,065
5,750 First Empire Capital Trust I 8.234% 2/01/27 A3 5,999,464
4,250 First Midwest Bancorp Inc. 6.950% 12/01/33 Baa1 3,899,838
1,750 HBOS Capital Funding LP, Notes 6.850% 3/23/49 A1 1,534,762
29,600 HBOS PLC, Series 144A 6.413% 4/01/49 A1 24,153,067
12,838 HSBC Capital Funding LP, 144A 9.547% 12/31/49 A1 14,039,508
14,000 HSBC Capital Funding LP, Debt 10.176% 6/30/50 A1 17,719,492
19,605 KBC Bank Fund Trust III, 144A 9.860% 5/02/50 A1 21,070,709
4,000 KeyCorp Capital III 7.750% 7/15/29 A3 4,384,428
7,000 Lloyds TSB Bank PLC, Subordinated Note 6.900% 11/22/49 Aa2 6,804,805
4,000 Mizuho Financial Group 8.375% 4/27/49 Aa3 4,042,760
1,000 Nordbanken AB, 144A 8.950% 11/29/49 Aa3 1,076,969
10,000 North Fork Capital Trust II 8.000% 12/15/27 Baa1 9,422,560
6,000 Northgroup Preferred Capital Corporation, 144A 6.378% 10/15/57 A1 5,319,048
2,000 Reliance Capital Trust I, Series B 8.170% 5/01/28 N/R 2,102,918
6,200 Royal Bank of Scotland Group PLC 9.118% 3/31/49 Aa3 6,631,470
3,500 Shinsei Finance II Cayman Limited, Perpetual 7.160% 7/25/49 Baa2 2,962,971
Maturity, 144A
3,100 Standard Chartered PLC, 144A 6.409% 1/30/57 BBB+ 2,812,342
11,700 Standard Chartered PLC, 144A 7.014% 1/30/58 BBB+ 11,111,244
14,700 Swedbank ForeningsSparbanken AB, 144A 9.000% 9/17/50 Aa3 15,707,494
15,290 Unicredito Italiano Capital Trust, 144A 9.200% 4/05/51 A1 16,672,705
600 Union Bank of Norway 7.068% 11/19/49 A2 904,854
25,600 Washington Mutual Preferred Funding Cayman, Series 7.250% 3/15/49 BBB 16,840,550
A-1, 144A
--------------------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 293,116,862
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 2.6%
4,800 Fulton Capital Trust I 6.290% 2/01/36 A3 3,616,699
18,600 JPMorgan Chase Capital Trust XVIII 6.950% 8/17/36 Aa3 17,720,276
23,600 Old Mutual Capital Funding, Notes 8.000% 6/22/53 Baa2 23,666,080
--------------------------------------------------------------------------------------------------------------------------------
Total Diversified Financial Services 45,003,055
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.3%
19 Centaur Funding Corporation, Series B, 144A 9.080% 4/21/20 BBB 22,144,725
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 4.8%
2,000 Allstate Corporation 6.500% 5/15/57 A2 1,867,184
4,000 AMBAC Financial Group Inc. 6.150% 2/15/87 Aa3 2,929,680
10,000 American General Capital II 8.500% 7/01/30 Aa3 11,728,690
4,980 American General Institutional Capital, 144A 8.125% 3/15/46 Aa3 5,853,133
9,800 AXA S.A., 144A 6.463% 12/14/49 BBB+ 8,841,276
1,000 Great West Life and Annuity Insurance Company 7.153% 5/16/46 A- 1,003,117
3,500 Liberty Mutual Group 7.800% 3/15/37 Baa3 3,121,563
3,500 MetLife Inc. 6.400% 12/15/66 BBB+ 3,217,736
1,550 Nationwide Financial Services Capital Trust 7.899% 3/01/37 Baa1 1,596,948
63
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
PRINCIPAL
AMOUNT (000)/
SHARES DESCRIPTION (1) COUPON MATURITY RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
INSURANCE (continued)
4,000 Nationwide Financial Services Inc. 6.750% 5/15/67 Baa1 $ 3,695,576
7,600 Oil Insurance Limited, 144A 7.558% 12/30/49 Baa1 7,768,173
3,800 Progressive Corporation 6.700% 6/15/37 A2 3,533,791
1,000 Prudential PLC 6.500% 6/29/49 A 898,025
9,000 QBE Capital Funding Trust II, 144A 6.797% 6/01/49 BBB 8,632,773
22,200 XL Capital, Limited 6.500% 10/15/57 BBB 19,443,137
--------------------------------------------------------------------------------------------------------------------------------
Total Insurance 84,130,802
----------------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 0.6%
10,355 KN Capital Trust III 7.630% 4/15/28 B1 9,391,985
--------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.0%
4 PS Business Parks Inc., Series M 7.200% 3/30/55 BBB- 76,570
--------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL - 0.4%
7,600 Burlington Northern Santa Fe Funding Trust I 6.613% 12/15/55 BBB 7,114,672
--------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE - 0.1%
1,000 Caisse Nationale Des Caisses d'Epargne et de 6.750% 1/27/49 A+ 966,596
Prevoyance
1,000 Washington Mutual Preferred Funding Trust II 6.665% 3/15/57 BBB 590,860
--------------------------------------------------------------------------------------------------------------------------------
Total Thrifts & Mortgage Finance 1,557,456
----------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL PREFERRED SECURITIES (COST 514,474,963
$570,008,769)
================================================================================================================
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 2.4% (1.5% OF TOTAL INVESTMENTS)
99,306 Blackrock Preferred and Corporate Income $ 1,593,861
Strategies Fund
751,883 Blackrock Preferred Income Strategies Fund 11,977,496
88,292 Blackrock Preferred Opportunity Trust 1,528,335
753,964 Flaherty and Crumrine/Claymore Preferred 12,184,058
Securities Income Fund Inc.
109,139 Flaherty and Crumrine/Claymore Total Return Fund 1,842,266
Inc.
84,688 John Hancock Preferred Income Fund 1,606,532
63,914 John Hancock Preferred Income Fund II 1,196,470
540,883 John Hancock Preferred Income Fund III 9,757,529
---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES (COST $50,880,311) 41,686,547
==============================================================================================================
SHARES DESCRIPTION (1) VALUE
---------------------------------------------------------------------------------------------------------------------------
WARRANTS - 0.0% (0.0% OF TOTAL INVESTMENTS)
910,000 MagIndustries Corporation, (11) $ 396,474
---------------------------------------------------------------------------------------------------------------------------
TOTAL WARRANTS (COST $396,211) 396,474
==============================================================================================================
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) COUPON MATURITY VALUE
-----------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 5.0% (3.2% OF TOTAL INVESTMENTS)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 0.6%
$ 11,000 United States of America Treasury Bills 0.000% 1/10/08 $ 10,986,676
-----------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 4.4%
31,737 Repurchase Agreement with Fixed Income Clearing 1.000% 1/02/08 31,737,038
Corporation, dated 12/31/07, repurchase price
$31,738,801, collateralized by $23,210,000 U.S.
Treasury Bonds, 7.625%, due 2/15/25, value
$32,377,950
44,403 Repurchase Agreement with Fixed Income Clearing 1.000% 1/02/08 44,402,734
Corporation, dated 12/31/07, repurchase price
$44,405,201, collateralized by $12,685,000 U.S.
Treasury Bonds, 7.625%, due 2/15/25, value
$17,695,575, $10,545,000 U.S. Treasury Notes,
6.500%, due 2/15/10, value $11,520,413 and
$16,035,000 U.S. Treasury Notes, 3.250%, due
12/31/09, value $16,075,088
-----------------------------------------------------------------------------------------------------------------------------
$ 87,140 TOTAL SHORT-TERM INVESTMENTS (COST $87,126,448) 87,126,448
=============================================================================================================================
TOTAL INVESTMENTS (COST $2,895,190,704) - 154.7% 2,693,829,068
==============================================================================================================
64
SHARES DESCRIPTION (1) VALUE
----------------------------------------------------------------------------------
COMMON STOCKS SOLD SHORT - (0.7)%
BEVERAGES - (0.0)%
(20,900) Hansen Natural Corporation $ (925,661)
----------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS - (0.1)%
(6,400) Apple, Inc., (2) (1,267,712)
----------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES - (0.1)%
(10,700) Alcon Inc. (1,530,528)
----------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES - (0.1)%
(31,300) Bankrate Inc., (2) (1,505,217)
----------------------------------------------------------------------------------
PHARMACEUTICALS - (0.3)%
(26,600) Allergan, Inc. (1,708,784)
(24,480) Merck & Co. Inc. (4,096,755)
----------------------------------------------------------------------------------
Total Pharmaceuticals (5,801,539)
---------------------------------------------------------------------
SPECIALTY RETAIL - (0.1)%
(11,600) AutoZone, Inc., (2) (1,390,956)
----------------------------------------------------------------------------------
TOTAL COMMON STOCKS SOLD SHORT (PROCEEDS (12,425,613)
$12,507,045)
=====================================================================
NOTIONAL EXPIRATION STRIKE
CONTRACTS TYPE AMOUNT (9) DATE PRICE VALUE
-----------------------------------------------------------------------------------------------------------------------------
CALL OPTIONS WRITTEN - (0.6)%
(4,440) Allied Waste Industries $ (5,550,000) 1/19/08 $12.5 $ (44,400)
(450) Amgen, Inc. (2,587,500) 1/19/08 57.5 (1,800)
(388) Amgen, Inc. (1,940,000) 4/19/08 50.0 (69,646)
(1,340) AngloGold Limited (6,030,000) 1/19/08 45.0 (100,500)
(2,070) Apex Silver Mines Limited (4,140,000) 1/19/08 20.0 (10,350)
(640) Arch Coal Inc. (1,920,000) 1/19/08 30.0 (953,600)
(610) Astrazenica PLC (3,050,000) 1/19/08 50.0 (3,050)
(430) Astrazenica PLC (2,365,000) 1/19/08 55.0 (2,150)
(750) Astrazenica PLC (3,375,000) 7/19/08 45.0 (172,500)
(1,440) Barrick Gold Corporation (4,680,000) 1/19/08 32.5 (1,389,600)
(1,230) BP Amoco, PLC (9,225,000) 1/19/08 75.0 (98,400)
(1,510) Chunghwa Telecom Company Limited (2,642,500) 3/22/08 17.5 (770,100)
(1,500) Gold Fields Limited (2,625,000) 1/19/08 17.5 (7,500)
(197) KT Corporation (492,500) 1/19/08 25.0 (28,565)
(2,470) Newmont Mining Corporation (11,115,000) 1/19/08 45.0 (1,062,100)
(5,230) Nippon Telegraph & Telephone Corporation (13,075,000) 6/21/08 25.0 (849,875)
(1,990) NovaGold Resources, Inc. (1,990,000) 1/19/08 10.0 (14,925)
(1,075) Peabody Energy Corporation (4,837,500) 1/19/08 45.0 (2,241,375)
(740) Progress Energy, Inc. (3,330,000) 1/19/08 45.0 (262,700)
(1,860) Puget Energy, Inc. (4,650,000) 1/19/08 25.0 (460,350)
(1,110) Royal Dutch Shell PLC (8,880,000) 1/19/08 80.0 (410,700)
(770) Scholastic Corporation (2,310,000) 3/22/08 30.0 (442,750)
(2,030) Smithfield Foods Inc. (6,090,000) 1/19/08 30.0 (71,050)
(800) Smithfield Foods Inc. (2,400,000) 1/17/09 30.0 (300,000)
(670) Tech Data Corporation (2,680,000) 1/17/09 40.0 (234,500)
(2,220) Tyson Foods Inc. (4,995,000) 1/19/08 22.5 (11,100)
(2,870) Tyson Foods Inc. (4,305,000) 1/17/09 15.0 (746,200)
-----------------------------------------------------------------------------------------------------------------------------
(40,830) TOTAL CALL OPTIONS WRITTEN (PREMIUMS RECEIVED (121,280,000) (10,759,786)
$(9,718,151))
=============================================================================================================================
OTHER ASSETS LESS LIABILITIES - 2.0% 35,308,777
================================================================================================================
FUNDPREFERRED SHARES, AT LIQUIDATION (965,000,000)
VALUE - (55.4)% (12)
================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES - 100% $1,740,952,446
================================================================================================================
65
JQC
Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS as of December 31, 2007
INTEREST RATE SWAPS OUTSTANDING AT DECEMBER 31, 2007:
FIXED
FUND RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT TERMINATION (DEPRECIATION)
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE APPRECIATION
------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase $97,000,000 Receive 1-Month USD-LIBOR 3.360% Monthly 1/23/09 $ 707,763
Morgan Stanley 97,000,000 Receive 1-Month USD-LIBOR 3.048 Monthly 1/23/08 137,724
------------------------------------------------------------------------------------------------------------------------
$ 845,487
========================================================================================================================
USD-LIBOR (Unites States Dollar-London Inter-Bank Offered Rate)
(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 (not covered by the report of independent registered public accounting firm):
Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's
are considered to be below investment grade.
(4) A zero coupon security does not pay a regular interest coupon to its holders during the
life of the security. Income to the holder of the security comes from accretion of the
difference between the original price of the security at issuance and the par value of the
security at maturity and is effectively paid at maturity. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that pay
interest periodically.
(5) 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.
(6) Senior Loans 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.
(7) Position or portion of position represents an unfunded Senior Loan commitment outstanding
at December 31, 2007.
(8) Negative value represents unrealized depreciation on unfunded Senior Loan commitment
outstanding at December 31, 2007.
(9) For disclosure purposes, Notional Amount is calculated by multiplying the number of
Contracts by the Strike Price by 100.
(10) Investment has been pledged as collateral to cover call options written.
(11) Investment valued at fair value using methods determined in good faith by, or at the
discretion of, the Board of Trustees.
(12) FundPreferred Shares, at Liquidation Value as a percentage of total investments is
(35.8)%.
N/A Not applicable.
N/R Not rated.
144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as
amended. These investments may only be resold in transactions exempt from registration
which are normally those transactions with qualified institutional buyers.
ADR American Depositary Receipt.
CORTS Corporate Backed Trust Securities.
PPLUS PreferredPlus Trust.
SATURNS Structured Asset Trust Unit Repackaging.
See accompanying notes to financial statements.
66
Statement of
ASSETS AND LIABILITIES
December 31, 2007
MULTI-STRATEGY MULTI-STRATEGY
INCOME INCOME
AND GROWTH AND GROWTH 2
(JPC) (JQC)
-------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $2,071,588,136 and
$2,895,190,704, respectively) $1,932,706,888 $ 2,693,829,068
Cash 8,453,972 11,074,800
Cash deposits with brokers 4,171,770 9,982,272
Cash denominated in foreign currencies (cost $443,542 and
$--, respectively) 442,344 --
Unrealized appreciation on interest rate swaps 586,045 845,487
Receivables:
Dividends 2,302,267 2,696,967
Interest 8,466,541 12,961,955
Investments sold 1,543,371 6,305,846
Reclaims 27,903 113,499
Other assets 151,231 194,468
-------------------------------------------------------------------------------------------------
Total assets 1,958,852,332 2,738,004,362
-------------------------------------------------------------------------------------------------
LIABILITIES
Securities sold short, at value (proceeds $8,905,544 and
$12,507,045, respectively) 8,843,077 12,425,613
Call options written, at value (premiums received $6,960,983
and $9,718,151, respectively) 7,781,511 10,759,786
Payable for investments purchased 2,011,421 6,330,735
Accrued expenses:
Management fees 881,909 1,190,863
Other 561,724 672,594
Dividends payable:
FundPreferred shares 411,274 645,535
Securities sold short 19,038 26,790
-------------------------------------------------------------------------------------------------
Total liabilities 20,509,954 32,051,916
-------------------------------------------------------------------------------------------------
FundPreferred shares, at liquidation value 708,000,000 965,000,000
-------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $1,230,342,378 $ 1,740,952,446
-------------------------------------------------------------------------------------------------
Common shares outstanding 99,403,528 139,770,200
-------------------------------------------------------------------------------------------------
Net asset value per Common share outstanding (net assets
applicable to
Common shares, divided by Common shares outstanding) $ 12.38 $ 12.46
-------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 994,035 $ 1,397,702
Paid-in surplus 1,380,691,001 1,964,555,223
Undistributed (Over-distribution of) net investment income (11,441,461) (20,601,671)
Accumulated net realized gain (loss) from investments and
derivative transactions (846,256) (2,921,816)
Net unrealized appreciation (depreciation) of investments
and derivative transactions (139,054,941) (201,476,992)
-------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $1,230,342,378 $ 1,740,952,446
-------------------------------------------------------------------------------------------------
Authorized shares:
Common Unlimited Unlimited
FundPreferred Unlimited Unlimited
-------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
67
Statement of
OPERATIONS
Year ended December 31, 2007
MULTI-STRATEGY MULTI-STRATEGY
INCOME INCOME
AND GROWTH AND GROWTH 2
(JPC) (JQC)
------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $190,025 and
$321,362, respectively) $ 56,778,933 $ 74,455,288
Interest 54,548,324 81,866,255
------------------------------------------------------------------------------------------------
Total investment income 111,327,257 156,321,543
------------------------------------------------------------------------------------------------
EXPENSES
Management fees 17,602,432 24,112,980
Dividend expense on securities sold short 33,216 46,360
FundPreferred shares - auction fees 1,770,000 2,412,500
FundPreferred shares - dividend disbursing agent fees 32,101 55,939
Shareholders' servicing agent fees and expenses 7,756 9,023
Custodian's fees and expenses 514,759 630,340
Trustees' fees and expenses 58,485 73,377
Professional fees 119,588 157,223
Shareholders' reports - printing and mailing expenses 577,130 1,101,052
Stock exchange listing fees 36,979 51,604
Investor relations expense 338,083 458,124
Prime broker expense 1,432 3,862
Other expenses 65,225 82,011
------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 21,157,186 29,194,395
Custodian fee credit (33,992) (33,830)
Expense reimbursement (6,679,664) (9,338,530)
------------------------------------------------------------------------------------------------
Net expenses 14,443,530 19,822,035
------------------------------------------------------------------------------------------------
Net investment income 96,883,727 136,499,508
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments and securities sold short 57,700,944 81,973,158
Interest rate swaps 3,200,749 4,297,734
Foreign currencies (96,087) (149,515)
Futures (9,930,657) (14,369,007)
Call options written (825,947) (1,262,638)
Change in net unrealized appreciation (depreciation) of:
Investments and securities sold short (180,582,470) (249,889,055)
Interest rate swaps (3,662,494) (4,936,771)
Foreign currencies (2,852) (2,264)
Call options written (820,528) (1,041,635)
------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (135,019,342) (185,379,993)
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO FUNDPREFERRED SHAREHOLDERS
From net investment income (27,675,110) (36,573,078)
From accumulated net realized gains (9,138,483) (13,728,192)
------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions
to FundPreferred shareholders (36,813,593) (50,301,270)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (74,949,208) $ (99,181,755)
================================================================================================
See accompanying notes to financial statements.
68
Statement of
CHANGES in NET ASSETS
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND GROWTH (JPC) INCOME AND GROWTH 2 (JQC)
-------------------------------- ----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12/31/07 12/31/06 12/31/07 12/31/06
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 96,883,727 $ 102,112,868 $ 136,499,508 $ 146,092,103
Net realized gain (loss) from:
Investments 57,700,944 24,700,838 81,973,158 36,010,475
Interest rate swaps 3,200,749 5,199,947 4,297,734 7,022,965
Foreign currencies (96,087) -- (149,515) --
Futures (9,930,657) -- (14,369,007) --
Call options written (825,947) -- (1,262,638) --
Change in net unrealized appreciation (depreciation) of:
Investments (180,582,470) 22,163,953 (249,889,055) 28,002,882
Interest rate swaps (3,662,494) (3,391,223) (4,936,771) (4,572,392)
Foreign currencies (2,852) 1,175 (2,264) 1,624
Call options written (820,528) -- (1,041,635) --
Distributions to FundPreferred shareholders:
From net investment income (27,675,110) (30,872,125) (36,573,078) (42,096,311)
From accumulated net realized gains (9,138,483) (2,714,021) (13,728,192) (3,927,167)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares
from operations (74,949,208) 117,201,412 (99,181,755) 166,534,179
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (76,330,955) (86,742,611) (111,173,317) (131,242,436)
From accumulated net realized gains (25,112,801) (7,661,112) (41,701,368) (12,257,268)
Tax return of capital (12,226,104) (15,334,925) (7,272,288) (10,571,536)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (113,669,860) (109,738,648) (160,146,973) (154,071,240)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares repurchased (3,326,834) (5,457,666) (7,872,338) (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 (2,989,568) (5,457,666) (7,872,338) (6,388,907)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares (191,608,636) 2,005,098 (267,201,066) 6,074,032
Net assets applicable to Common shares at the beginning of
year 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 year $1,230,342,378 $1,421,951,014 $1,740,952,446 $2,008,153,512
---------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of) net investment income
at the end of year $ (11,441,461) $ (20,135,888) $ (20,601,671) $ (26,066,540)
---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
69
Notes to
FINANCIAL STATEMENTS
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 its 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 increase their
percentage of managed assets in direct equity investments to include both
domestic and international equities. 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 (JPC) and Nuveen Multi-Strategy Income and
Growth Fund 2 (JQC), respectively.
Each Fund seeks to provide high income by investing primarily in a portfolio of
preferred securities, equity securities, high yield securities and convertible
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 are generally valued at the last sales price on the
security exchange on which such securities are primarily traded. Securities
traded on an exchange for which there are no transactions on a given day or
securities not listed on a securities 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. The value of options written are based on the
last sale price in the case of exchange-traded options or, in the case of
options traded in the OTC market, the last asked 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 fixed-income securities, senior
loans and interest rate swaps 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 an
investment or derivative instrument the Fund may use market quotes provided by
major broker/dealers 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
70
custodian to segregate assets with a current value at least equal to the amount
of the when-issued/delayed delivery purchase commitments. At December 31, 2007,
the Funds had no such outstanding purchase commitments.
Investment Income
Dividend income on securities purchased and dividend expense on securities sold
short 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, if any. Interest income also includes fee income and amendment fees, if
any. Fee income 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.
Effective June 29, 2007, the Funds adopted Financial Accounting Standards Board
(FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e. greater than 50-percent) of being sustained by
the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax benefit or expense in the
current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e. the last four
tax year ends and the interim tax period since then). The Funds have no
examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the fiscal year ended December 31,
2007.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
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 Program").
Total distributions during a calendar year generally will be made from each
Fund's net investment income, net realized capital gains and net unrealized
capital gains in the Fund's portfolio, if any. The portion of distributions paid
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. 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. 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. 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 accompanying financial statements.
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.
71
Notes to
FINANCIAL STATEMENTS (continued)
For the fiscal year ended December 31, 2007, 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 72.59% 82.98%
Long-term and short-term capital gains 27.32 16.92
Return of REIT capital 0.09 0.10
---------------------------------------------------------------------------------------------
For the fiscal year ended December 31, 2006, the character of distributions to
the Funds from 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
---------------------------------------------------------------------------------------------
For the fiscal years ended December 31, 2007 and 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.
The actual character of distributions made by the Funds during the fiscal years
ended December 31, 2007 and December 31, 2006, are reflected in the accompanying
financial statements.
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
-------------------------------------------------------------------------------------------------------
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 Funds are 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 the Statement of Operations.
72
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. The Funds accrue the fixed rate payment
expected to be paid or received and the variable rate payment expected to be
received or paid on interest rate swap contracts on a daily basis, and recognize
an unrealized gain (loss) for the daily changes in the market value of the
Funds' contractual rights and obligations under the contracts. The net amount
recorded for these transactions is recognized in the Statement of Assets and
Liabilities. Once periodic payments are settled in cash, the net amount is
recorded as net realized gain (loss) from interest rate swaps, in addition to
net realized gain (loss) recorded upon the termination of interest rate swap
contracts on the Statement of Operations. For tax purposes, periodic payments
are treated as ordinary income or expense. 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. In addition, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when a Fund has
an unrealized loss on a swap contract, the Funds have instructed the custodian
to pledge assets of the Fund as collateral with a value approximately equal to
the amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the interest rate
swap valuations fluctuate, either up or down, by at least the pre-determined
threshold amount.
Foreign Currency Transactions
The Funds are authorized to engage in foreign currency exchange transactions
including 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 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 are included in "Realized gain
(loss) on foreign currencies" and "Change in unrealized appreciation
(depreciation) of foreign currencies" on the Statement of Operations.
The books and records of the Funds are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at 4:00 p.m. Eastern time. Investments and income and expenses are
translated on the respective dates of such transactions. Net realized foreign
currency gains and losses resulting from changes in exchange rates include
foreign currency gains and losses between trade date and settlement date of the
transactions, foreign currency transactions, and the difference between the
amounts of interest and dividends recorded on the books of the Funds and the
amounts actually received.
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
73
Notes to
FINANCIAL STATEMENTS (continued)
receivable or payable for the variation margin when applicable. During the
fiscal year ended December 31, 2007, each Fund invested in futures contracts. At
December 31, 2007, there were no outstanding futures contracts in either Fund.
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.
Options 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 reflect
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 security underlying the written option. There is the risk the Funds may not
be able to enter into closing transactions because of an illiquid market.
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 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 Funds overdraws their 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 and November 21, 2007, the Funds' Board of Trustees approved
open market share repurchase programs 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.
74
Transactions in Common shares were as follows:
MULTI-STRATEGY INCOME AND MULTI-STRATEGY INCOME AND
GROWTH (JPC) GROWTH 2 (JQC)
-------------------------- -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/07 12/31/06 12/31/07 12/31/06
------------------------------------------------------------------------------------------------------------------------------
Common shares:
Repurchased (311,100) (432,200) (725,600) (511,200)
Issued to shareholders due to reinvestments of
distributions 23,651 -- -- --
------------------------------------------------------------------------------------------------------------------------------
(287,449) (432,200) (725,600) (511,200)
------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased $10.67 $12.61 $10.83 $12.48
Weighted average discount per Common share repurchased 13.81% 11.74% 13.85% 12.72%
------------------------------------------------------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities and proceeds from securities sold
short, but excluding short-term investments and derivative transactions) during
the fiscal year ended December 31, 2007, were as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME INCOME
AND GROWTH AND GROWTH 2
(JPC) (JQC)
-------------------------------------------------------------------------------------------------------
Purchases $1,506,585,359 $2,081,451,892
Sales and maturities 1,551,967,491 2,216,974,078
-------------------------------------------------------------------------------------------------------
Transactions in call options written during the fiscal year ended December 31,
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 year -- $ -- -- $ --
Call options written 40,279 8,823,930 55,333 12,190,788
Call options terminated in closing purchase
transactions (4,105) (808,842) (5,550) (1,094,246)
Call options expired (3,620) (337,024) (4,890) (455,690)
Call options exercised (2,909) (717,081) (4,063) (922,701)
---------------------------------------------------------------------------------------------------------------------------------
Outstanding, end of year 29,645 $6,960,983 40,830 $ 9,718,151
---------------------------------------------------------------------------------------------------------------------------------
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, recognition of
premium amortization, timing differences in the recognition of income on REIT
investments and timing differences in recognizing certain gains and losses on
investment transactions. To the extent that differences arise that are permanent
in nature, such amounts are reclassified within the capital accounts 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 December 31, 2007, the cost of investments (excluding proceeds received on
securities sold short and call options written) was as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH (JPC) GROWTH 2 (JQC)
-------------------------------------------------------------------------------------------------------
Cost of investments $2,083,508,725 $2,916,606,415
-------------------------------------------------------------------------------------------------------
75
Notes to
FINANCIAL STATEMENTS (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
(excluding proceeds received on securities sold short and call options written)
at December 31, 2007, were as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH (JPC) GROWTH 2 (JQC)
-------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 67,041,556 $ 83,804,370
Depreciation (217,843,393) (306,581,717)
-------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (150,801,837) $ (222,777,347)
-------------------------------------------------------------------------------------------------------
The tax components of undistributed net ordinary income and net long-term
capital gains at December 31, 2007, the Funds' tax year end, were as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
GROWTH (JPC) GROWTH 2 (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.
The tax character of distributions paid during the Funds' tax years ended
December 31, 2007 and December 31, 2006, was designated for purposes of the
dividends paid deduction as follows:
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
2007 GROWTH (JPC) GROWTH 2 (JQC)
-------------------------------------------------------------------------------------------------------
Distributions from net ordinary income * $138,358,876 $200,640,767
Distributions from net long-term capital gains** -- 2,560,636
Tax return of capital 12,226,104 7,272,288
-------------------------------------------------------------------------------------------------------
MULTI-STRATEGY MULTI-STRATEGY
INCOME AND INCOME AND
2006 GROWTH (JPC) GROWTH 2 (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.
** The Funds hereby designate these amounts paid during the fiscal year ended
December 31, 2007, as long-term capital gain dividends pursuant to Internal
Revenue Code Section 852(b)(3).
Multi-Strategy Income and Growth 2 (JQC) elected to defer net realized losses
from investments incurred from November 1, 2007 through December 31, 2007, the
Funds' tax year end, ("post-October losses") in accordance with federal income
tax regulations. Post-October losses of $1,573,568 were treated as having arisen
on the first day of the following fiscal year.
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
---------------------------------------------------------------------------------------------
76
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 December 31, 2007, the complex-level fee rate was .1846%.
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
------------------------------------------------------------------------------------------------
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
77
Notes to
FINANCIAL STATEMENTS (continued)
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.
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 Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser and, if applicable, each
sub-advisory agreement between the Adviser and any sub-adviser of the Fund, and
resulted in the automatic termination of each such agreement. The Board of
Trustees of each Fund considered and approved a new investment management
agreement with the Adviser, and, if applicable, a new sub-advisory agreement
between the Adviser and any sub-adviser on the same terms as the previous
agreements. Each new ongoing investment management agreement and sub-advisory
agreement, if applicable, was approved by the shareholders of each Fund and took
effect on November 13, 2007.
The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
78
Related Party Holdings
At December 31, 2007, Multi-Strategy Income and Growth (JPC) and Multi-Strategy
Income and Growth 2 (JQC) owned 569,561 and 835,745 shares, respectively, of
Merrill Lynch and Company, Inc. preferred securities with aggregate market
values of $12,390,709 and $17,360,876, respectively. Total income earned by
Multi-Strategy Income and Growth (JPC) and Multi-Strategy Income and Growth 2
(JQC) from such securities amounted to $1,099,809 and $2,044,776, respectively,
and is included in dividend income on the Statement of Operations.
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 December 31, 2007, Multi-Strategy Income and Growth (JPC) and
Multi-Strategy Income and Growth 2 (JQC) had unfunded senior loan commitments of
$2,030,876 and $2,283,759, respectively.
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 a Fund purchases a participation of a senior
loan interest, a 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, a 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 December 31, 2007, there
were no such outstanding participation commitments in either Fund.
8. NEW ACCOUNTING PRONOUNCEMENT
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 December 31, 2007, the management does 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.
9. SUBSEQUENT EVENTS
During February 2008, regularly scheduled auctions for the FundPreferred shares
issued by the Funds began attracting more shares for sale than offers to buy.
This meant that these auctions "failed to clear," and that many FundPreferred
shareholders who wanted to sell their shares in these auctions were unable to do
so. FundPreferred shareholders unable to sell their shares received
distributions at the "maximum rate" calculated in accordance with the
pre-established terms of the FundPreferred stock.
These developments do not affect the management or investment policies of the
Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will be higher than it
otherwise would have been had the auctions been successful. As a result, the
Funds' future Common share earnings may be lower than they otherwise might have
been.
79
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations
----------------------------------------------------------------
Distributions
Beginning from Net Distributions
Common Net Investment from Capital
Share Realized/ Income to Gains to
Net Net Unrealized FundPreferred FundPreferred
Asset Investment Gain Share- Share-
Value Income(a) (Loss) holders+ holders+ Total
----------------------------------------------------------------------------------------------------------
MULTI-STRATEGY INCOME AND GROWTH (JPC)
----------------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007 $14.26 $.97 $(1.34) $(.28) $(.09) $(.74)
2006 14.18 1.02 .50 (.31) (.03) 1.18
2005 15.32 1.13 (.74) (.22) -- .17
2004(b) 14.73 .52 .85 (.04) (.01) 1.32
Year Ended 7/31:
2004 14.12 1.25 .71 (.08) -- 1.88
2003(c) 14.33 .30 (.02) (.02) -- .26
MULTI-STRATEGY INCOME AND GROWTH 2
(JQC)
----------------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007 14.29 .97 (1.30) (.26) (.10) (.69)
2006 14.20 1.04 .48 (.30) (.03) 1.19
2005 15.18 1.12 (.70) (.21) (.01) .20
2004(b) 14.33 .51 .90 (.05) -- 1.36
Year Ended 7/31:
2004 13.83 1.16 .73 (.08) -- 1.81
2003(d) 14.33 .04 (.53) -- -- (.49)
----------------------------------------------------------------------------------------------------------
Less Distributions
------------------------------------------
Tax
Net Return
Investment Capital of Offering Ending
Income Gains Capital Costs and Common
to to to FundPreferred Share
Common Common Common Share Net Ending
Share- Share- Share- Underwriting Asset Market
holders holders holders Total Discounts Value Value
----------------------------------------------------------------------------------------------------------
MULTI-STRATEGY INCOME AND GR
----------------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007 $(.77) $(.25) $(.12) $(1.14) $ -- $12.38 $10.93
2006 (.87) (.08) (.15) (1.10) -- 14.26 14.29
2005 (1.15) (.16) -- (1.31) -- 14.18 11.97
2004(b) (.50) (.23) -- (.73) -- 15.32 14.33
Year Ended 7/31:
2004 (1.22) (.05) -- (1.27) -- 14.73 13.95
2003(c) (.30) -- -- (.30) (.17) 14.12 14.57
MULTI-STRATEGY INCOME AND GR
(JQC)
----------------------------------------------------------------------------------------------------------
Year Ended 12/31:
2007 (.79) (.30) (.05) (1.14) -- 12.46 11.00
2006 (.93) (.09) (.08) (1.10) -- 14.29 14.11
2005 (1.09) (.09) -- (1.18) -- 14.20 12.11
2004(b) (.49) (.02) -- (.51) -- 15.18 13.87
Year Ended 7/31:
2004 (1.17) -- -- (1.17) (.14) 14.33 13.54
2003(d) -- -- -- -- (.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.
**** Ratio rounds to less than .01%.
+ 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 --%****
2006 --
2005 .01
2004(b) .04*
Year Ended 7/31:
2004 .03
2003(c) --
---------------------------------------------------------------------------
MULTI-STRATEGY INCOME AND GROWTH 2
(JQC)
Year Ended 12/31:
2007 --%****
2006 --
2005 .01
2004(b) .05*
Year Ended 7/31:
2004 .03
2003(d) --
(a) Per share Net Investment Income is calculated using the average daily
shares method.
(b) For the period August 1, 2004 through December 31, 2004.
(c) For the period March 26, 2003 (commencement of operations) through July
31, 2003.
(d) For the period June 25, 2003 (commencement of operations) through July 31,
2003.
80
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
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
(16.28)% (5.71)% $1,230,342 1.53% 6.54% 1.05% 7.03% 84%
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
------------------------------------------------------------------------------------------------------------------
(14.70)% (5.34)% 1,740,952 1.50 6.51 1.02 6.99 78
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 $64,444
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 70,102
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.
81
BOARD MEMBERS & OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at eight. None of the board members who are not interested persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NAME, BIRTHDATE POSITION(S) HELD WITH YEAR FIRST NUMBER OF PORTFOLIOS
& ADDRESS THE FUNDS ELECTED OR IN FUND COMPLEX PRINCIPAL OCCUPATION(S)
APPOINTED OVERSEEN BY INCLUDING OTHER DIRECTORSHIPS
AND TERM(2) BOARD MEMBER DURING PAST 5 YEARS
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
- TIMOTHY R.
SCHWERTFEGER(1)
3/28/49 Chairman of 1994 Former director
333 W. Wacker Drive the Board ANNUAL (1994-November 12, 2007),
Chicago, IL 60606 and Board Member Chairman (1996-June 30,
2007), Non-Executive Chairman
(July 1, 2007-November 12,
2007) and Chief Executive
184 Officer (1996-June 30, 2007)
of Nuveen Investments, Inc.
and Nuveen Asset Management
and certain other subsidi-
aries of Nuveen Investments,
Inc.; formerly, Director
(1992-2006) of Institutional
Capital Corporation.
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- ROBERT P. BREMNER
8/22/40 Lead Independent 1997 184 Private Investor and
333 W. Wacker Drive Board member CLASS III Management Consultant.
Chicago, IL 60606
- JACK B. EVANS
10/22/48 1999 President, The Hall-Perrine
333 W. Wacker Drive Board member CLASS III Foundation, a private phil-
Chicago, IL 60606 anthropic corporation (since
1996); Director and Vice
Chairman, United Fire Group,
a publicly held company;
Member of the Board of
Regents Companies; for the
State of Iowa University
System; Director, Gazette
Life Trustee of Coe College
184 and Iowa College Foundation;
Member of the Advisory
Council of the Department of
Finance in the Tippie College
of Business, University of
Iowa; formerly, Director,
Alliant Energy; formerly,
Director, Federal Reserve
Bank of Chicago; formerly,
President and Chief Operating
Officer, SCI Financial Group,
Inc., a regional financial
services firm.
- WILLIAM C. HUNTER
3/6/48 2004 Dean, Tippie College of
333 W. Wacker Drive Board member CLASS II Business, University of Iowa
Chicago, IL 60606 (since July 2006); formerly,
Dean and Distinguished
Professor of Finance, School
of Business at the University
of Connecticut (2003-2006);
previously, Senior Vice
President and Director of
Research at the Federal
184 Reserve Bank of Chicago
(1995-2003); Director (since
1997), Credit Research Center
at George Washington
University; Director (since
2004) of Xerox Corporation;
Director (since 2005) Beta
Gamma Sigma International
Honor Society; Director, SS&C
Technologies, Inc. (May
2005-October 2005).
82
NAME, BIRTHDATE POSITION(S) HELD WITH YEAR FIRST NUMBER OF PORTFOLIOS
& ADDRESS THE FUNDS ELECTED OR IN FUND COMPLEX PRINCIPAL OCCUPATION(S)
APPOINTED OVERSEEN BY INCLUDING OTHER DIRECTORSHIPS
AND TERM(2) BOARD MEMBER DURING PAST 5 YEARS
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
- DAVID J. KUNDERT
10/28/42 2005 Director, Northwestern Mutual
333 W. Wacker Drive Board member CLASS II Wealth Management Company;
Chicago, IL 60606 Retired (since 2004) as
Chairman, JPMorgan Fleming
Asset Management, President
and CEO, Banc One Investment
Advisors Corporation, and
President, One Group Mutual
Funds; prior thereto,
Executive Vice President,
182 Banc One Corporation and
Chairman and CEO, Banc One
Investment Management Group;
Member, Board of Regents,
Luther College; member of the
Wisconsin Bar Association;
member of Board of Directors,
Friends of Boerner Botanical
Gardens; member of Investment
Committee, Greater Milwaukee
Foundation.
- WILLIAM J. SCHNEIDER
9/24/44 1997 Chairman of Miller-Valentine
333 W. Wacker Drive Board member ANNUAL Partners Ltd., a real estate
Chicago, IL 60606 investment company, formerly,
Senior Partner and Chief
184 Operating Officer (retired,
2004); Director, Dayton
Development Coalition;
formerly, Member, Business
Advisory Council, Cleveland
Federal Reserve Bank.
- JUDITH M. STOCKDALE
12/29/47 1997 Executive Director, Gaylord
333 W. Wacker Drive Board member CLASS I and Dorothy Donnelley
Chicago, IL 60606 Foundation (since 1994);
184 prior thereto, Executive
Director, Great Lakes
Protection Fund (from 1990 to
1994).
- CAROLE E. STONE
6/28/47 2007 Director, Chicago Board
333 W. Wacker Drive Board member CLASS I Options Exchange (since
Chicago, IL 60606 2006); Chair New York Racing
Association Oversight Board
(2005-12/2007); Commissioner,
New York State Commission on
Public Authority Reform
184 (since 2005); formerly
Director, New York State
Division of the Budget
(2000-2004), Chair, Public
Authorities Control Board
(2000-2004) and Director,
Local Government Assistance
Corporation (2000-2004).
83
NAME, BIRTHDATE POSITION(S) HELD WITH NUMBER OF PORTFOLIOS
& ADDRESS THE FUNDS YEAR FIRST IN FUND COMPLEX PRINCIPAL
ELECTED OR OVERSEEN OCCUPATION(S)
APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
OFFICERS OF THE FUND:
- GIFFORD R. ZIMMERMAN
9/9/56 Chief Administrative Managing Director (since
333 W. Wacker Drive Officer 1988 2002), Assistant
Chicago, IL 60606 Secretary and Associate
General Counsel,
formerly, Vice Presi-
dent and Assistant
General Counsel, of
Nuveen Investments, LLC;
Managing Director (since
2002), Associate General
Counsel and Assistant
Secretary, of Nuveen
Asset Management; Vice
President and Assistant
Secretary of NWQ
Investment Management
Company, LLC. (since
2002), Nuveen Investments
Advisers Inc. (since
2002), Symphony Asset
Management LLC, and NWQ
184 Investment Management
Company, LLC (since
2003), Tradewinds Global
Investors, LLC, and Santa
Barbara Asset Management,
LLC (since 2006); Nuveen
HydePark Group LLC and
Richards & Tierney, Inc.
(since 2007); Managing
Director, Associate
General Counsel and
Assistant Secretary of
Rittenhouse Asset
Management, Inc. (since
2003); Managing Director
(since 2004) and
Assistant Secretary
(since 1994) of Nuveen
Investments, Inc.,
Assistant Secretary
(since 2003) of Symphony
Asset Management LLC.
- WILLIAM ADAMS IV
6/9/55 Executive Vice President,
333 W. Wacker Drive Vice President 2007 U.S. Structured Products
Chicago, IL 60606 of Nuveen Investments,
120 LLC, (since 1999), prior
thereto, Managing
Director of Structured
Investments.
- JULIA L. ANTONATOS
9/22/63 Managing Director (since
333 W. Wacker Drive Vice President 2004 2005), formerly Vice
Chicago, IL 60606 184 President (2002-2005) of
Nuveen Investments, LLC;
Chartered Financial
Analyst.
- CEDRIC H. ANTOSIEWICZ
1/11/62 Managing Director, (since
333 W. Wacker Drive Vice President 2007 120 2004) previously, Vice
Chicago, IL 60606 President (1993-2004) of
Nuveen Investments, LLC.
- MICHAEL T. ATKINSON
2/3/66 Vice President Vice President (since
333 W. Wacker Drive and Assistant 2000 184 2002) of Nuveen
Chicago, IL 60606 Secretary Investments, LLC.
- PETER H. D'ARRIGO
11/28/67 Vice President and
333 W. Wacker Drive Vice President 1999 Treasurer of Nuveen
Chicago, IL 60606 Investments, LLC and
Nuveen Investments, Inc.;
Vice President and
Treasurer of Nuveen Asset
Management (since 2002),
Nuveen Investments
Advisers Inc. (since
2002); NWQ Investment
Management Company, LLC.
(since 2002); Rittenhouse
Asset Management, Inc.
(since 2003), Tradewinds
NWQ Global Investors, LLC
184 (since 2006), Santa
Barbara Asset Management,
LLC (since 2006) and
Nuveen HydePark Group,
LLC and Richards &
Tierney, Inc. (since
2007); Treasurer of
Symphony Asset Management
LLC (since 2003);
formerly, Vice President
and Treasurer (1999-2004)
of Nuveen Advisory Corp.
and Nuveen Institutional
Advisory Corp.(3),
Chartered Financial
Analyst.
84
NAME, BIRTHDATE POSITION(S) HELD WITH NUMBER OF PORTFOLIOS
& ADDRESS THE FUNDS YEAR FIRST IN FUND COMPLEX PRINCIPAL
ELECTED OR OVERSEEN OCCUPATION(S)
APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
OFFICERS OF THE FUND (CONTINUED):
- LORNA C. FERGUSON
10/24/45 Managing Director (since
333 W. Wacker Drive Vice President 1998 2004), formerly, Vice
Chicago, IL 60606 President of Nuveen
Investments, LLC,
Managing Director (2004)
184 formerly, Vice President
(1998-2004) of Nuveen
Advisory Corp. and Nuveen
Institutional Advisory
Corp.(3); Managing
Director (since 2005) of
Nuveen Asset Management.
- STEPHEN D. FOY
5/31/54 Vice President Vice President (since
333 W. Wacker Drive and Controller 1998 1993) and Funds
Chicago, IL 60606 Controller (since 1998)
of Nuveen Investments,
LLC; Vice President
(since 2005) of Nuveen
184 Asset Management;
formerly, Vice President
and Funds Controller
(1998-2004) of Nuveen
Investments, Inc.;
Certified Public
Accountant.
- WALTER M. KELLY
2/24/70 Chief Compliance Vice President (since
333 W. Wacker Drive Officer and 2003 2006) formerly, Assistant
Chicago, IL 60606 Vice President Vice President and
Assistant General Counsel
(2003-2006) of Nuveen
Investments, LLC;
184 Assistant Vice President
and Assistant Secretary
of the Nuveen Funds
(2003-2006); previously,
Associate (2001-2003) at
the law firm of
VedderPrice P.C.
- DAVID J. LAMB
3/22/63 Vice President (since
333 W. Wacker Drive Vice President 2000 2000) of Nuveen
Chicago, IL 60606 184 Investments, LLC;
Certified Public
Accountant.
- TINA M. LAZAR
8/27/61 Vice President of Nuveen
333 W. Wacker Drive Vice President 2002 184 Investments, LLC (since
Chicago, IL 60606 1999).
- LARRY W. MARTIN
7/27/51 Vice President Vice President, Assistant
333 W. Wacker Drive and Assistant 1988 Secretary and Assistant
Chicago, IL 60606 Secretary General Counsel of Nuveen
Investments, LLC;
formerly, Vice President
and Assistant Secretary
of Nuveen Advisory Corp.
and Nuveen Institutional
Advisory Corp.(3); Vice
President (since 2005)
and Assistant Secretary
of Nuveen Investments,
Inc.; Vice President
(since 2005) and
Assistant Secretary
(since 1997) of Nuveen
Asset Management; Vice
President (since 2000),
Assistant Secretary and
184 Assistant General Counsel
(since 1998) of
Rittenhouse Asset Manage-
ment, Inc.; Vice
President and Assistant
Secretary of Nuveen
Investments Advisers Inc.
(since 2002); NWQ
Investment Management
Company, LLC (since
2002), Symphony Asset
Management LLC (since
2003), Tradewinds Global
Investors, LLC, Santa
Barbara Asset Management
LLC (since 2006) and of
Nuveen HydePark Group,
LLC and Richards &
Tierney, Inc. (since
2007).
85
NAME, BIRTHDATE POSITION(S) HELD WITH NUMBER OF PORTFOLIOS
& ADDRESS THE FUNDS YEAR FIRST IN FUND COMPLEX PRINCIPAL
ELECTED OR OVERSEEN OCCUPATION(S)
APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
OFFICERS OF THE FUND (CONTINUED):
- KEVIN J. MCCARTHY
3/26/66 Vice President Vice President, Nuveen
333 W. Wacker Drive and Secretary 2007 Investments, LLC (since
Chicago, IL 60606 2007); Vice President,
and Assistant Secretary,
Nuveen Asset Management,
Rittenhouse Asset
Management, Inc., Nuveen
Investment Advisers Inc.,
Nuveen Investment
Institutional Services
Group LLC, NWQ Investment
Management Company, LLC,
Tradewinds Global
184 Investors LLC, NWQ
Holdings, LLC, Symphony
Asset Management LLC,
Santa Barbara Asset
Management LLC, Nuveen
HydePark Group, LLC and
Richards & Tierney, Inc.
(since 2007); Vice
President and Assistant
General Counsel, Nuveen
Investments, Inc. (since
2007). Prior thereto,
Partner, Bell, Boyd &
Lloyd LLP (1997-2007).
- JOHN V. MILLER
4/10/67 Managing Director (since
333 W. Wacker Drive Vice President 2007 2007), formerly, Vice
Chicago, IL 60606 184 President (2002-2007) of
Nuveen Investments, LLC;
Chartered Financial
Analyst.
- JAMES F. RUANE
7/3/62 Vice President Vice President, Nuveen
333 W. Wacker Drive and Assistant 2007 Investments (since 2007);
Chicago, IL 60606 Secretary prior thereto, Partner,
184 Deloitte & Touche USA LLP
(since 2005), formerly,
senior tax manager (since
2002); Certified Public
Accountant.
- MARK L. WINGET
12/21/68 Vice President Vice President, Nuveen
333 W. Wacker Drive and Assistant 2008 Investments, LLC (since
Chicago, IL 60606 Secretary 2008); Vice President and
Assistant Secretary,
Nuveen Asset Management,
Rittenhouse Asset
Management, Inc., Nuveen
Investment Advisers Inc.,
Nuveen Investment
Institutional Services
Group LLC, NWQ Investment
Management Company, LLC,
Tradewinds Global
184 Investors, LLC, NWQ
Holdings, LLC, Symphony
Asset Management LLC,
Santa Barbara Asset
Management, LLC, Nuveen
HydePark Group, LLC and
Richards & Tierney, Inc.
(since 2008); Vice
President and Assistant
General Counsel, Nuveen
Investments Inc. (since
2008); prior thereto,
Counsel, VedderPrice P.C.
(1997-2007).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, by reason of being the former Chairman and
Chief Executive Officer of Nuveen Investments, Inc. and having previously
served in various other capacities with Nuveen Investments, Inc. and its
subsidiaries. It is expected that Mr. Schwertfeger will resign from the
Board of Trustees by the end of the second quarter of 2008.
(2) Board Members serve three year terms, except for two board members who are
elected by the holders of Preferred Shares. The Board of Trustees is divided
into three classes, Class I, Class II, and Class III, with each being
elected to serve until the third succeeding annual shareholders' meeting
subsequent to its election or thereafter in each case when its respective
successors are duly elected or appointed, except two board members are
elected by the holders of Preferred Shares to serve until the next annual
shareholders' meeting subsequent to its election or thereafter in each case
when its respective successors are duly elected or appointed. The first year
elected or appointed represents the year in which the board member was first
elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
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.
Collateralized Debt Obligations (CDOs): Collateralized debt obligations are a
type of asset-backed security constructed from a portfolio of fixed-income
assets. CDOs usually are divided into different tranches having different
ratings and paying different interest rates. Losses, if any, are applied in
reverse order of seniority and so junior tranches generally offer higher coupons
to compensate for added default risk.
Market Yield (also known as Dividend Yield or Current Yield): Market yield 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 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 twelve-month period ended June 30, 2007, 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.
Distribution Information
Nuveen Multi-Strategy Income and Growth Fund (JPC) and Nuveen Multi-Strategy
Income and Growth Fund 2 (JQC) hereby designate 12.10% and 9.29%, respectively,
of dividends paid from ordinary income as dividends qualifying for the 70%
dividends received deduction for corporations and 20.44% and 17.49%,
respectively, as qualified dividend income for individuals under Section
1(h)(11) of the Internal Revenue Code.
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. During the period covered by this report JPC and JQC
repurchased 311,100 and 725,600 common shares, respectively. 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 $170 billion in assets, as of September 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.
EAN-F-1207D
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. [There were no amendments to or waivers
from the Code during the period covered by this report.] The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Shareholder Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors (the "Board") determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Multi-Strategy Income and Growth Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND(1) BILLED TO FUND(2) BILLED TO FUND(3) BILLED TO FUND(4)
-------------------------------------------------------------------------------------------------------------------------------
December 31, 2007 $ 22,060 $ 0 $ 625 $ 4,300
-------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
December 31, 2006 $ 20,731 $ 0 $ 800 $ 3,950
-------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the
audit of the Fund's annual financial statements and services provided in
connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and related
services reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services for
agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------
December 31, 2007 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------
December 31, 2006 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
December 31, 2007 $ 4,925 $ 0 $ 0 $ 4,925
December 31, 2006 $ 4,750 $ 0 $ 0 $ 4,750
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, David J. Kundert and William J. Schneider. Mr.
Eugene S. Sunshine, who also served as a member of the Committee during this
reporting period, has resigned from the Board of Directors. His resignation
became effective on July 31, 2007.
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.
The Adviser has engaged Spectrum Asset Management, Inc. ("Spectrum"), Tradewinds
Global Investors, LLC ("Tradewinds"), and Symphony Asset Management, LLC
("Symphony") (Spectrum, Tradewinds and Symphony are also collectively referred
to as "Sub-Advisers") as Sub-Advisers to provide discretionary investment
advisory services. As part of these services, the Adviser has also delegated to
each Sub-Adviser the full responsibility for proxy voting and related duties in
accordance with the Sub-Adviser's policy and procedures. The Adviser
periodically will monitor each Sub-Adviser's voting to ensure that they are
carrying out their duties. The Sub-Advisers' proxy voting policies and
procedures are summarized as follows:
SPECTRUM
Spectrum has adopted a Policy on Proxy Voting for Investment Advisory Clients
(the "Voting Policy"), which provides that Spectrum aims to ensure that, when
delegated proxy voting authority by a client, Spectrum act (1) solely in the
interest of the client in providing for ultimate long-term stockholder value,
and (2) without undue influence from individuals or groups who may have an
economic interest in the outcome of a proxy vote. Spectrum relies on the
custodian bank to deliver proxies to Spectrum for voting.
Spectrum has selected Institutional Shareholder Services, Inc. ("ISS") to assist
with Spectrum's proxy voting responsibilities. Spectrum generally follows ISS
standard proxy voting guidelines which embody the positions and factors Spectrum
considers important in casting proxy votes. In connection with each proxy vote,
ISS prepares a written analysis and recommendation based on its guidelines. In
order to avoid any conflict of interest for ISS, the CCO will require ISS to
deliver additional information or certify that ISS has adopted policies and
procedures to detect and mitigate such conflicts of interest in issuing voting
recommendations. Spectrum also may obtain voting recommendations from two proxy
voting services as an additional check on the independence of ISS' voting
recommendations.
Spectrum may, on any particular proxy vote, diverge from ISS' guidelines or
recommendations. In such a case, Spectrum's Voting Policy requires that: (i) the
requesting party document the reason for the request; (ii) the approval of the
Chief Investment Officer; (iii) notification to appropriate compliance
personnel; (iv) a determination that the decision is not influenced by any
conflict of interest; and (v) a written record of the process.
When Spectrum determines not to follow ISS' guidelines or recommendations,
Spectrum classifies proxy voting issues into three broad categories: (1) Routine
Administrative Items; (2) Special Interest Issues; and (3) Issues having the
Potential for Significant Economic Impact, and casts proxy votes in accordance
with the philosophy and decision guidelines developed for that category in the
Voting Policy.
- Routine Administrative Items. Spectrum is willing to defer to
management on matters a routine administrative nature. Examples of
issues on which Spectrum will normally defer to management's
recommendation include selection of auditors, increasing the
authorized number of common shares and the election of unopposed
directors.
- Special Interest Issues. In general, Spectrum will abstain from
voting on shareholder social, political, environmental proposals
because their long-term impact on share value cannot be calculated
with any reasonable degree of confidence.
- Issues Having the Potential for Significant Economic Impact.
Spectrum is not willing to defer to management on proposals which
have the potential for major economic impact on the corporation and
value of its shares and believes such issues should be carefully
analyzed and decided by shareholders. Examples of such issues are
classification of board of directors' cumulative voting and
supermajority provisions, defensive strategies (e.g., greenmail
prevention), business combinations and restructurings and executive
and director compensation.
Conflicts of Interest. There may be a material conflict of interest when
Spectrum votes, on behalf of a client, a proxy that is solicited by an
affiliated person of Spectrum or another Spectrum client. To avoid such
conflicts, Spectrum has established procedures under its Voting Policy to seek
to ensure that voting decisions are based on a client's best interests and are
not the product of a material conflict. In addition to employee monitoring for
potential conflicts, the CCO reviews Spectrum's and its affiliates' material
business relationships and personal and financial relationships of senior
personnel of Spectrum and its affiliates to monitor for conflicts of interest.
If a conflict of interest is identified, Spectrum considers both financial and
non-financial materiality to determine if a conflict of interest is material. If
a material conflict of interest is found to exist, the CCO discloses the
conflict to affected clients and obtains consent from each client in the manner
in which Spectrum proposed to vote.
Spectrum clients can obtain a copy of the Voting Policy or information on how
Spectrum voted their proxies by calling Spectrum's Compliance Department at
(203) 322-0189.
TRADEWINDS
Tradewinds' Proxy Voting Policies and Procedures apply to securities held in
client accounts over which Tradewinds has voting authority. Tradewinds' Proxy
Voting Policy seeks to ensure that proxies for which Tradewinds has ultimate
voting authority are voted consistently and solely in the best economic
interests of the beneficiaries of these equity investments. In addition,
Tradewinds may determine not to vote proxies relating to certain securities if
Tradewinds determines it would be in its clients' overall best interests not to
vote, such as when Tradewinds is in the process of selling the securities, or
the securities are foreign securities subject to share blocking (short-term
prohibitions on selling after voting). If a client requests Tradewinds to follow
specific voting guidelines, Tradewinds will review the request and inform the
client only if Tradewinds is not able to follow the client's request.
The Proxy Voting Committee is responsible for oversight of the proxy voting
process. Tradewinds has engaged the services of Institutional Shareholder
Services, Inc. ("ISS") to make recommendations to Tradewinds on the voting of
proxies for securities held in its clients' accounts. Tradewinds reviews
and frequently follows ISS recommendations. However, Tradewinds may not vote in
accordance with the ISS recommendations when Tradewinds believes an ISS
recommendation is not in the best economic interest of clients. Specifically,
Tradewinds will usually vote against any proposals for granting employees stock
options, and if ISS or Tradewinds does not receive information about the proxy
vote in time to research the proxy issues, Tradewinds will vote no on all such
issues.
If Tradewinds is faced with a material conflict of interest in voting a proxy,
such as when it manages the assets of a company or its pension plan and any of
Tradewinds' clients hold any securities of that company, Tradewinds will vote
proxies relating to such company's securities in accordance with the ISS
recommendations to avoid any conflict of interest.
Tradewinds shall retain required records relating to the voting of proxies and
shall provide a client with information on how Tradewinds voted proxies on
behalf of the client as requested.
SYMPHONY
Symphony uses the proxy voting services of Institutional Shareholder Services
("ISS"). The ISS Proxy Voting Services provide Symphony and its clients with an
independent source of proxy voting research and services. The use of ISS is
designed to offer client-centered proxy voting which minimizes conflicts of
interests between Symphony's interests and those of its clients.
In order to monitor how ISS votes client proxies, Symphony has established a
Proxy Voting Review Committee (the "Committee"). The Committee is composed of
Symphony's Chief Operating Officer and its Chief Investment Officer. Each year,
the Committee reviews ISS proxy voting policies and practices to determine
whether such policies and practices are consistent with Symphony's fiduciary
duty to the clients for whom Symphony is responsible for voting proxies. During
the year, the Committee review how ISS votes on specific issues. From time to
time, the Committee discusses the proxy voting process with representatives of
ISS in order to ensure that Symphony's client interests are being protected.
When Symphony disagrees with ISS' policies with respect to certain issues,
Symphony will direct the voting of its clients' proxies according to what
Symphony believes is the best interests of its clients.
Clients who have questions about how particular proxies are voted for their
account may request such information from Symphony by calling (415) 676-4000.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The Adviser has engaged Spectrum Asset Management, Inc. ("Spectrum") for the
registrant's preferred securities investments, Tradewinds Global Investors, LLC
("Tradewinds"), for the registrant's convertible securities and Symphony Asset
Management, LLC ("Symphony"), for the registrant's high yield, fixed income
investments (Spectrum, Tradewinds and Symphony are also collectively referred to
as "Sub-Advisers") as Sub-Advisers to provide discretionary investment advisory
services. The following section provides information on the portfolio managers
at each Sub-Adviser:
SPECTRUM
ITEM 8(a)(1). PORTFOLIO MANAGER BIOGRAPHIES
MARK A. LIEB - Mr. Lieb is Executive Director and is responsible for business
development. Prior to founding Spectrum in 1987, Mr. Lieb was a Founder,
Director and Partner of DBL Preferred Management, Inc., a wholly owned corporate
cash management subsidiary of Drexel Burnham Lambert, Inc. Mr. Lieb was
instrumental in the formation and development of all aspects of DBL Preferred
Management, Inc., including the daily management of preferred stock portfolios
for institutional clients, hedging strategies, and marketing strategies. Mr.
Lieb's prior employment included the development of the preferred stock trading
desk at Mosley Hallgarten & Estabrook. BA Economics, Central Connecticut State
College; MBA Finance, University of Hartford.
L. PHILLIP JACOBY, IV -- Managing Director and Portfolio Manager. Mr. Jacoby
joined Spectrum in 1995. From 1989-1995, Mr. Jacoby was a Senior Investment
Officer at USL Capital Corporation (a subsidiary of Ford Motor Corporation) and
was co-portfolio manager of a $600 million preferred stock portfolio. Mr. Jacoby
was a trader and portfolio manager at Northern Trust Company (1982-1983) and
Vice President of Institutional Sales, E.F. Hutton (1983-1987). BS Business
Administration & Finance, Boston University. NASD Series 55 "Equity Trader
Limited Representative".
BERNARD M. SUSSMAN - Mr. Sussman is Chief Investment Officer and Chairman of
Spectrum's Investment Committee. Prior to joining Spectrum in 1995, Mr. Sussman
was with Goldman Sachs & Co. for nearly 18 years. A General Partner and head of
the Preferred Stock Department, he was in charge of sales, trading and
underwriting for all preferred products and was instrumental in the development
of the hybrid (MIPS) market. He was a Limited Partner at Goldman Sachs from
December 1994 through November 1996. BS Industrial Relations and MBA Finance,
Cornell University. NASD Series 55 "Equity Trader Limited Representative".
ITEM 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS*
----------------------------------------- ---------------------------------------------------- --------- ----------------
Phillip Jacoby Separately Managed accounts 43 $2,765,773,535
Pooled Accounts 11 $1,887,834,020
Registered Investment Vehicles 11 $6,609,930.590
Mark Lieb Separately Managed accounts 52 $2,775,356,100
Pooled Accounts 11 $1,887,834,020
Registered Investment Vehicles 11 $6,609,930,590
Bernard Sussman Separately Managed accounts 46 $2,772,486,173
Pooled Accounts 16 $2,254,008,805
Registered Investment Vehicles 11 $6,609,930,590
POTENTIAL MATERIAL CONFLICTS OF INTEREST
There are no material conflicts of interest to report.
ITEM 8(a)(3). FUND MANAGER COMPENSATION
All employees of Spectrum Asset Management are paid a base salary and
discretionary bonus. The bonus is paid quarterly and may represent a significant
proportion of an individual's total annual compensation. Discretionary bonuses
are determined by management after consideration of several factors including
but not necessarily limited to:
- Changes in overall firm assets under management (employees have no
direct incentive to increase assets)
- Portfolio performance relative to benchmarks
- Contribution to client servicing
- Compliance with firm and/or regulatory policies and procedures
- Work ethic
- Seniority and length of service
- Contribution to overall functioning of organization
ITEM 8(a)(4). OWNERSHIP OF JPC SECURITIES AS OF DECEMBER 31, 2007
DOLLAR RANGE OF EQUITY SECURITIES
NAME OF PORTFOLIO MANAGER BENEFICIALLY OWNED IN FUND
---------------------------- -------------------------------------------
Phillip Jacoby $0
Mark Lieb $0
Bernard Sussman $0
SYMPHONY
ITEM 8(a)(1). PORTFOLIO MANAGER BIOGRAPHIES
LENNY MASON, CPA, Fixed-Income Portfolio Manager
Lenny is a Fixed-Income Portfolio Manager for Symphony Asset Management LLC. His
responsibilities include portfolio management for Symphony's high yield and bank
loan strategies and credit research for its fixed income strategies. Prior to
joining Symphony in 2001, Lenny was a Managing Director in FleetBoston's
Technology & Communications Group where he headed its Structuring and Advisory
Team. Before joining Fleet, Lenny worked for Wells Fargo Bank's Corporate
Banking Group dealing primarily with leveraged transactions and for Coopers &
Lybrand as an auditor. Lenny has an MBA in Finance from the University of
Chicago, a BS in Accounting from Babson College. Lenny is a Certified Public
Accountant.
GUNTHER STEIN, Director of Fixed-Income Strategies
Gunther is a Principal and the Director of Fixed-Income Strategies at Symphony
Asset Management. He has close to 20 years of investment and research
experience. Gunther is responsible for all of Symphony's fixed-income
strategies, in addition to portfolio management, trading, and
research for the fixed-income funds. Prior to joining Symphony in 1999, Gunther
was a high-yield portfolio manager at Wells Fargo. Gunther joined Wells Fargo in
1993 as an associate in its Loan Syndications & Leveraged Finance Group after
completing its credit-management training program. Previously, Gunther worked
for First Interstate Bank as a euro-currency deposit trader. He also worked for
Standard Chartered Bank in Mexico City and Citibank Investment Bank in London.
Gunther received an MBA from the University of Texas at Austin and a BA in
Economics from the University of California at Berkeley.
DAVID T. WANG, Director of Equity Strategies
David's is the Director of Equity Strategies, and his responsibilities include
design, research and implementation of Symphony's long-only strategies. David
joined Symphony in 1994 from Barra, Inc. where he was a member of the Active
Strategies Group. At Barra he was responsible for investment-strategy research,
portfolio construction and rebalancing for several domestic and global equity
funds. David received his MBA from the University of Illinois at
Urbana-Champaign and holds a BS degree in Chemical Engineering from Tamkang
University in Taipei.
ITEM 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS
OTHER ACCOUNTS MANAGED BY SYMPHONY PMS
AS OF 12/31/07
GUNTHER STEIN LENNY MASON DAVID WANG
(a) RICs
Number of accts 6 6 1
Assets ($000s) $ 2,789,182 $ 2,789,182 $ 520,925
(b) Other pooled accts
Non-performance fee accts
Number of accts 7 7 11
Assets ($000s) $ 2,074,448 $ 2,074,448 $ 865,965
Performance fee accts
Number of accts 8 8 1
Assets ($000s) $ 1,573,741 $ 1,573,741 $ 2,463
(c) Other
Non-performance fee accts
Number of accts 2 - 1
Assets ($000s) $ 1,370 - $ 19,724
Performance fee accts
Number of accts 2 - -
Assets ($000s) $ 318,650 - -
POTENTIAL MATERIAL CONFLICTS OF INTEREST
As described above, the portfolio manager may manage other accounts with
investment strategies similar to the Fund, including other investment companies
and separately managed accounts. Fees earned by the sub-advisers may vary among
these accounts and the portfolio managers may personally invest in some but not
all of these accounts. In addition, certain accounts may be subject to
performance-based fees. These factors could create conflicts of interest because
a portfolio manager may have incentives to favor certain accounts over others,
resulting in other accounts outperforming the Fund. A conflict may also exist if
a portfolio manager identified a limited investment opportunity that may be
appropriate for more than one account, but the Fund is not able to take full
advantage of that opportunity due to the need to allocate that opportunity among
multiple accounts. In addition, the portfolio manger may execute transactions
for another account that may adversely impact the value of securities held by
the Fund. However, the sub-advisers believe that these risks are mitigated by
the fact that accounts with like investment strategies managed by a particular
portfolio manager are generally managed in a similar fashion, subject to
exceptions to account for particular investment restrictions or policies
applicable only to certain accounts, differences in cash flows and account
sizes, and other factors. In addition, each sub-adviser has adopted trade
allocation procedures that require equitable allocation of trade orders for a
particular security among participating accounts.
ITEM 8(a)(3). FUND MANAGER COMPENSATION
Symphony investment professionals receive competitive base salaries and
participate in a bonus pool which is tied directly to the firm's operating
income with a disproportionate amount paid to the managers responsible for
generating the alpha. The bonus paid to investment personnel is based on acumen,
overall contribution and strategy performance. However, there is no fixed
formula which guides bonus allocations. Bonuses are paid on an annual basis. In
addition, investment professionals may participate in an equity-based
compensation pool.
ITEM 8(a)(4). OWNERSHIP OF JPC SECURITIES AS OF DECEMBER 31, 2007
NAME OF PORTFOLIO $1 - $10,001- $50,001- $100,001- $500,001- OVER
MANAGER NONE $10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000
------------------------------------------------------------------------------------------
Gunther Stein X
------------------------------------------------------------------------------------------
Lenny Mason X
------------------------------------------------------------------------------------------
David Wang X
------------------------------------------------------------------------------------------
TRADEWINDS
ITEM 8(a)(1). PORTFOLIO MANAGER BIOGRAPHY
DAVID IBEN, Prior to joining NWQ in 2000, and forming the affiliate Tradewinds,
Mr. Iben was lead Portfolio Manager, CEO, and a founding member of Palladian
Capital Management. Before launching Palladian, he worked at Cramblit & Carney,
Inc. managing large institutional accounts. Formerly, he was acting CIO at the
Farmers Group, responsible for $16 billion of investable assets before his
departure in 1996.
ITEM 8(a)(2). OTHER ACCOUNTS MANAGED
David Iben
(a) RICs
Number of accts 7
Assets ($000s) 1,974,848
(b) Other pooled accts
Non-performance fee accts
Number of accts 8
Assets ($000s) 749,263
(c) Other
Non-performance fee accts
Number of accts 6112
Assets ($000s) 7,174,080
Performance fee accts
Number of accts 3
Assets ($000s) 2,831,918
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Actual or apparent conflicts of interest may arise when a portfolio manager has
day-to-day management responsibilities with respect to more than one account.
More specifically, portfolio managers who manage multiple accounts are presented
with the following potential conflicts:
- The management of multiple accounts may result in a portfolio
manager devoting unequal time and attention to the management
of each account. Tradewinds seeks to manage such competing
interests for the time and attention of portfolio managers by
having portfolio managers focus on a particular investment
discipline. Most accounts managed by a portfolio manager in a
particular investment strategy are managed using the same
investment models.
- If a portfolio manager identifies a limited investment
opportunity which may be suitable for more than one account,
an account may not be able to take full advantage of that
opportunity due to an allocation of filled purchase or sale
orders
across all eligible accounts. To deal with these situations,
Tradewinds has adopted procedures for allocating portfolio
transactions across multiple accounts.
- With respect to many of its clients' accounts, Tradewinds
determines which broker to use to execute transaction orders,
consistent with its duty to seek best execution of the
transaction. However, with respect to certain other accounts,
Tradewinds may be limited by the client with respect to the
selection of brokers or may be instructed to direct trades
through a particular broker. In these cases, Tradewinds may
place separate, non-simultaneous, transactions for a Fund and
other accounts which may temporarily affect the market price
of the security or the execution of the transactions, or both,
to the detriment of the Fund or the other accounts.
- The Fund is subject to different regulation than other pooled
investment vehicles and other accounts managed by the
portfolio managers. As a consequence of this difference in
regulatory requirements, the Fund may not be permitted to
engage in all the investment techniques or transactions or to
engage in these transactions to the same extent as the other
accounts managed by the portfolio managers. Finally, the
appearance of a conflict of interest may arise where
Tradewinds has an incentive, such as a performance-based
management fee, which relates to the management of some
accounts, with respect to which a portfolio manager has
day-to-day management responsibilities.
Tradewinds has adopted certain compliance procedures which are designed to
address these types of conflicts common among investment managers. However,
there is no guarantee that such procedures will detect each and every situation
in which a conflict arises.
In addition, Merrill Lynch & Co. (and its affiliates) is an indirect investor in
Nuveen and therefore is considered an affiliate of Tradewinds under certain
federal securities laws. Tradewinds may have a conflict of interest due to its
relationship with Merrill Lynch & Co. (and its affiliates).
ITEM 8(a)(3). FUND MANAGER COMPENSATION
Tradewinds 's portfolio managers participate in a highly competitive
compensation structure with the purpose of attracting and retaining the most
talented investment professionals and rewarding them through a total
compensation program as determined by the firm's executive committee. The total
compensation program consists of both a base salary and an annual bonus that can
be a multiple of the base salary. The portfolio manager's performance is
formally evaluated annually and based on a variety of factors. Bonus
compensation is primarily a function of the firm's overall annual profitability
and the individual portfolio manager's contribution as measured by the overall
investment performance of client portfolios in the strategy they manage relative
to the strategy's general benchmark for one, three and five year periods (as
applicable), as well as an objective review of stock recommendations and the
quality of primary research, and subjective review of the professional's
contributions to portfolio strategy, teamwork, collaboration and work ethic.
The total compensation package includes availability of equity-like incentive
for purchase (whose value is determined by the increase in profitability of
Tradewinds over time) made to most investment professionals. Additionally, the
portfolio managers have been provided compensation in conjunction with signing
long-term employment agreements.
ITEM 8(a)(4). OWNERSHIP OF JPC SECURITIES AS OF DECEMBER 31, 2007.
NAME OF PORTFOLIO $1 - $10,001- $50,001- $100,001- $500,001- OVER
MANAGER NONE $10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000
------------------------------------------------------------------------------------------
David Iben X
------------------------------------------------------------------------------------------
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)*
TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR
SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF
UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET
PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR
UNIT) PROGRAMS PROGRAMS
NOVEMBER 21-30, 2007
0 $ - - 10,000,000
DECEMBER 1-31, 2007
311,100 $ 10.67 311,100 9,688,900
TOTAL 311,100
* The registrant's repurchase program was announced November 21, 2007. The
registrant's repurchase program authorized the repurchase of 10,000,000 shares.
The repurchases made by the registrant pursuant to the program were all made
through open-market transactions.
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. Letter or number the
exhibits in the sequence indicated.
(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
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Shareholder Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(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: See
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: See 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
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By (Signature and Title)* /s/ Kevin J. McCarthy
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Kevin J. McCarthy
Vice President and Secretary
Date: March 7, 2008
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: March 7, 2008
By (Signature and Title)* /s/ Stephen D. Foy
------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: March 7, 2008
* Print the name and title of each signing officer under his or her signature.