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  

  

811-21619

Nuveen S&P 500 Buy-Write Income Fund

 

(Exact name of registrant as specified in charter)

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

 

(Address of principal executive offices) (Zip code)

Mark L. Winget

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

 

(Name and address of agent for service)

Registrant’s telephone number, including area code:    (312) 917-7700                        

Date of fiscal year end:    December 31                                

Date of reporting period:    December 31, 2023                   

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

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


ITEM 1. REPORTS TO STOCKHOLDERS.


 

LOGO

    

 

Closed-End Funds

     

 

December 31,

2023

 Nuveen

 Closed-End Funds

 

 

Nuveen S&P 500 Buy-Write Income Fund

   BXMX

 

Nuveen Dow 30SM Dynamic Overwrite Fund

   DIAX

 

Nuveen S&P 500 Dynamic Overwrite Fund

   SPXX

 

Nuveen Nasdaq 100 Dynamic Overwrite Fund

   QQQX

 

Nuveen Core Equity Alpha Fund

   JCE

 

 

Annual

Report


  

 

 

IMPORTANT DISTRIBUTION NOTICE

FOR SHAREHOLDERS OF THE NUVEEN S&P 500 BUY-WRITE INCOME FUND (BXMX)

NUVEEN DOW 30SM DYNAMIC OVERWRITE FUND (DIAX)

NUVEEN S&P 500 DYNAMIC OVERWRITE FUND (SPXX)

NUVEEN NASDAQ 100 DYNAMIC OVERWRITE FUND (QQQX)

NUVEEN CORE EQUITY ALPHA FUND (JCE)

SEMI-ANNUAL SHAREHOLDER REPORT FOR THE PERIOD ENDING DECEMBER 31, 2023

The Nuveen S&P 500 Buy-Write Income Fund (BXMX), Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), Nuveen S&P 500 Dynamic Overwrite Fund (SPXX), Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) and Nuveen Core Equity Alpha Fund (JCE) seek to offer attractive cash flow to their shareholders, by converting the expected long-term total return potential of the Funds’ portfolio of investments into regular quarterly distributions. Following is a discussion of the Managed Distribution Policy the Funds use to achieve this.

Each Fund pays quarterly common share distributions that seek to convert the Fund’s expected long-term total return potential into regular cash flow. As a result, the Funds’ regular common share distributions (presently $0.2365, $0.2867, $0.2940, $0.4200, $0.3200 per share, respectively) may be derived from a variety of sources, including:

· Net investment income consisting of regular interest and dividends

· Realized capital gains or,

· Possibly, returns of capital representing in certain cases unrealized capital appreciation.

Such distributions are sometimes referred to as “managed distributions.” Each Fund seeks to establish a distribution rate that roughly corresponds to the Adviser’s projections of the total return that could reasonably be expected to be generated by each Fund over an extended period of time. The Adviser may consider many factors when making such projections, including, but not limited to, long-term historical returns for the asset classes in which each Fund invests. As portfolio and market conditions change, the distribution amount and distribution rate on the Common Shares under the Funds’ Managed Distribution Policy could change.

When it pays a distribution, each Fund provides holders of its Common Shares a notice of the estimated sources of the Fund’s distributions (i.e., what percentage of the distributions is estimated to constitute ordinary income, short-term capital gains, long-term capital gains, and/or a non-taxable return of capital) on a year-to-date basis. It does this by posting the notice on its website (www.nuveen.com/cef), and by sending it in written form.

You should not draw any conclusions about the Funds’ investment performance from the amount of this distribution or from the terms of the Funds’ Managed Distribution Policy. The Funds’ actual financial performance will likely vary from month-to-month and from year-to-year, and there may be extended periods when the distribution rate will exceed the Funds’ actual total returns. The Managed Distribution Policy provides that the Board may amend or terminate the Policy at any time without prior notice to Fund shareholders. There are presently no reasonably foreseeable circumstances that might cause each Fund to terminate its Managed Distribution Policy.

 

2


Table

of Contents

 

 

Letter to Shareholders

     4  

Important Notices

     5  

Portfolio Managers’ Comments

     6  

Common Share Information

     11  

About the Funds’ Benchmarks

     14  

Performance Overview and Holding Summaries

     16  

Report of Independent Registered Public Accounting Firm

     29  

Portfolios of Investments

     30  

Statement of Assets and Liabilities

     64  

Statement of Operations

     65  

Statement of Changes in Net Assets

     66  

Financial Highlights

     70  

Notes to Financial Statements

     74  

Shareholder Update

     87  

Important Tax Information

     113  

Additional Fund Information

     115  

Glossary of Terms Used in this Report

     116  

Board Members & Officers

     117  

 

3


Letter

to Shareholders

  

 

LOGO    Dear Shareholders,
  

 

Financial markets spent the past year focused on the direction of inflation and whether policy makers would be able to deliver a soft landing in their economies. After more than a year and a half of interest rate increases by the U.S. Federal Reserve (Fed) and other central banks, financial conditions have tightened and inflation rates have cooled considerably. The Fed increased the target fed funds rate from near zero in March 2022 to a range of 5.25% to 5.50% at its latest increase in July 2023, then left the rate unchanged through January 2024. At its December 2023 policy meeting, the Fed acknowledged the fed funds rate may have reached its peak, and then in January 2024 removed the suggestion that another hike was possible. But current inflation rates remain above central banks’ targets, and the trajectory from here is difficult to predict given that monetary policy acts on the economy with long and variable lags.

  

 

Surprisingly, economies were relatively resilient for much of 2023. The “most predicted recession” did not materialize in the U.S. during 2023, while U.K. and European economic growth had begun to show signs of stagnation or decline in the second half of the year. U.S. gross domestic product rose 3.3% in the fourth quarter of 2023, slower than 4.9% in the third quarter but still ahead of 2.1% in the second quarter and 2.0% in the first quarter. For 2023 overall, GDP grew 2.5% (from the 2022 annual level to the 2023 annual level), compared to 1.9% in 2022. Much of the growth was driven by a relatively strong jobs market, which kept consumer sentiment and spending elevated despite long-term interest rates nearing multi-year highs, a series of U.S. regional bank failures and shocks from flaring geopolitical tensions.

   While central banks are likely nearing the end of this interest rate hiking cycle, there are still upside risks to inflation and downside risks to the economy. Some labor market and consumer indicators are softening. Government funding and deficits remain a concern, especially as the U.S. election year gets underway. The markets will continue to try to anticipate monetary policy shifts as the Fed evaluates incoming data and adjusts its rate setting activity on a meeting-by-meeting basis. Geopolitical risks – from relations with China, to wars in Europe and the Middle East – also expand the range of outcomes from economies and markets around the world. All these uncertainties, and others, will remain sources of short-term market volatility. In this environment, Nuveen remains committed to filtering the market noise for investable opportunities that ultimately serve long-term investment objectives. Maintaining a long-term perspective is also important for investors, and we encourage you to review your time horizon, risk tolerance and investment goals with your financial professional.
   On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
   LOGO
   Terence J. Toth
   Co-Chair of the Board
   February 22, 2024

 

4


Important Notices  

 

Portfolio Manager Update for BXMX

Effective June 30, 2023, Mitchell Trotta was added as a portfolio manager of the Fund. There were no other changes to the portfolio management of the Fund during the reporting period.

 

5


Portfolio Managers’

Comments

  

 

Nuveen S&P 500 Buy-Write Income Fund (BXMX)

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX)

Nuveen S&P 500 Dynamic Overwrite Fund (SPXX)

Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)

Nuveen Core Equity Alpha Fund (JCE)

The Nuveen S&P 500 Buy-Write Income Fund (BXMX) features portfolio management by Gateway Investment Advisers, LLC (Gateway). The Fund’s portfolio managers are Kenneth Toft, CFA, Michael Buckius, CFA, Daniel Ashcraft, CFA, and Mitchell Trotta, CFA. The Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) feature portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Funds’ investment adviser. The Funds’ portfolio managers are David Friar, James (Jim) Campagna, CFA, Lei Liao, CFA and Darren Tran, CFA. The Nuveen Core Equity Fund (JCE) features portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Fund’s investment adviser. The Fund’s portfolio managers are David Friar, Maxim Kozlov, CFA, and Pei Chen.

Effective June 30, 2023, Mitchell Trotta was added as a portfolio manager of the Nuveen S&P 500 Buy-Write Income Fund. Michael Buckius, Kenneth Toft and Daniel Ashcraft continue to serve as portfolio managers of the Fund.

Here the Funds’ portfolio management teams review U.S. economic and financial market conditions, key investment strategies and the performance of the Funds for the twelve-month reporting period ended December 31, 2023. For more information on the Funds’ investment objectives and policies, please refer to the Shareholder Update section at the end of the report.

What factors affected the U.S. economy and financial markets during the twelve-month reporting period ended December 31, 2023?

The U.S. economy performed better than expected despite persistent inflationary pressure and rising interest rates during the twelve-month period ended December 31, 2023. Gross domestic product rose at an annualized rate of 3.3% in the fourth quarter of 2023, after sharply accelerating to 5.2% (annualized) in third quarter of 2023, according to the U.S. Bureau of Economic Analysis initial estimate. For the year as a whole, GDP was up 2.5% (from the 2022 annual level to the 2023 annual level), compared with an increase of 1.9% in 2022. During the reporting period, price pressures eased in comparison to 2022 given normalization in supply chains, falling energy prices and aggressive measures by the U.S. Federal Reserve (Fed) and other global central banks to tighten financial conditions and slow demand in their economies. Nevertheless, during the reporting period inflation levels remained higher than central banks’ target levels.

The Fed raised its target fed funds rate four times during the reporting period, bringing it to a range of 5.25% to 5.50% as of July 2023 and voting to hold it at that level at its remaining meetings in 2023. During the beginning of the reporting period, the Fed’s activity led to significant volatility in bond and stock markets, given the uncertainty of how rising interest rates would affect the economy. One of the most highly visible impacts occurred in the U.S. regional banking sector in March 2023, when Silicon Valley Bank, Signature Bank, First Republic Bank and Silvergate Bank failed. In the same month, Swiss bank UBS agreed to buy Credit Suisse, which was considered vulnerable in the current environment. The Fed’s monetary tightening policy also contributed to an increase in the U.S. dollar’s value relative to major world currencies, which acts as a headwind to the profits of international companies and U.S. domestic companies with overseas earnings.

During the reporting period, elevated inflation and higher borrowing costs weighed on some segments of the economy, including the real estate market. Consumer spending, however, has remained more resilient than expected, in part because of a still-strong labor market, another key gauge of the economy’s health. As of December 2023, the unemployment rate was 3.7%, near its pre-pandemic low, with monthly job growth continuing to moderate. The strong labor market and wage gains helped the U.S. economy during the reporting period, even as the Fed sought to soften job growth to help curb inflation pressures.

During the reporting period, investors also continued to monitor government funding and deficits. The U.S. government avoided a default scenario after approving an increase to the debt ceiling limit in June 2023. At the same time, the potential for a government shutdown loomed but was ultimately avoided with funding resolutions passed in September and November 2023. Notably, in August 2023, ratings agency Fitch downgraded U.S. debt from AAA to AA+ based on concerns about the U.S.’s growing fiscal debt and reduced confidence in fiscal management.

 

6


 

 

Nuveen S&P 500 Buy-Write Income Fund (BXMX)

What key strategies were used to manage the Fund during the twelve-month reporting period ended December 31, 2023?

BXMX seeks attractive total return with less volatility than the S&P 500® Index by investing in an equity portfolio that seeks to substantially replicate the price movements of the S&P 500® Index and by selling index call options covering approximately 100% of the Fund’s equity portfolio value with a goal of enhancing the portfolio’s risk-adjusted returns.

The writing of index call options on a broad equity index, while investing in a portfolio of equities, has the potential to enhance BXMX’s risk-adjusted returns while exposing the Fund to less risk than unhedged equity investments. Hedging the equity portfolio with index call options may limit the Fund’s participation in market advances in exchange for the cash premium received for the written index call options. Conversely, market declines are typically buffered by the amount of the cash premium received by the Fund. In flat or declining markets, BXMX’s call option premium can potentially enhance total return relative to the S&P 500® Index. However, in rising markets, the call options may reduce the Fund’s total return relative to the S&P 500® Index.

During the reporting period, the portfolio management team focused on opportunities in the written index call option portfolio. The portfolio management team took advantage of elevated implied volatility levels that drove the availability of above-average premiums. These premiums helped to offset a material portion of losses during equity market declines and offered a high level of market participation during periods of strength.

How did the Fund perform during the twelve-month reporting period ended December 31, 2023?

For the twelve-month reporting period ended December 31, 2023, BXMX significantly outperformed the Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM). For purposes of this Performance Commentary, references to relative performance are in comparison to the BXMSM.

The Fund’s options portfolio outperformed the options component of the BXMSM during the reporting period. The portfolio management team’s active adjustments to the Fund’s index call option portfolio were particularly beneficial during periods when the equity market outperformed the BXMSM. Specifically, the Fund’s options portfolio significantly outperformed the BXMSM during the equity market’s rapid market advance from mid-March to the end of July 2023 and outperformed the BXMSM to a lesser extent during the equity market advance from the end of October through December 2023. Additionally, the Fund’s options portfolio outperformed the BXMSM during one of the period’s equity market declines from the end of July through the end of October 2023. However, the options portfolio underperformed the BXMSM during the other market decline from early February through mid-March 2023. The risk level of the Fund, as measured by its standard deviation of daily return, was much lower than that of the U.S. equity market and slightly above the BXMSM over the reporting period.

The Fund’s equity portfolio also outperformed the equity component of the BXMSM during the reporting period. Key drivers of the equity portfolio’s outperformance included stock selection in the information technology, consumer staples and communication services sectors. However, the role of the equity portfolio is to support the option strategy by closely tracking the S&P 500® Index, so enhancing its return through fundamental stock selection or sector allocation is not a management objective. Relative performance of the equity portfolio may fluctuate during the short term but is expected to be in line with the S&P 500® Index over longer timeframes.

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX)

What key strategies were used to manage the Fund during the twelve-month reporting period ended December 31, 2023?

DIAX seeks attractive total return with less volatility than the Dow Jones Industrial Average Index (DJIA) by investing in an equity portfolio that seeks to substantially replicate the price movements of the DJIA, as well as selling call options on 35% to 75% of the notional value of the Fund’s equity portfolio, with a long-term target of 55% overwrite in an effort to enhance the Fund’s risk-adjusted returns. The portfolio management team uses its proprietary view of the market’s return and volatility profile to dynamically adjust the option overwrite percentage and other factors.

Generally, if the portfolio management team expects the equity market to appreciate, the option overwrite percentage will be reduced to offer more potential upside capture. Likewise, if the portfolio management team expects equity markets to be flat or to decline, the option overwrite percentage may be increased, thus managing the Fund to potentially receive additional cash flow from higher sales of call options. This dynamic option overwrite approach offers the potential for greater equity market upside capture

 

7


Portfolio Managers’ Comments (continued)

  

 

than the full option overwrite approach, while still offering a measure of downside risk management. The Fund currently expects to carry out its principal investment strategy by emphasizing options on broad-based indexes, individual stocks in the DJIA, and options on custom baskets of stocks, in addition to exchange-traded funds (ETFs). The Fund also has the opportunity to utilize call spread strategies and sell put options on a portion of the underlying equity portfolio.

During the reporting period, the portfolio management team varied the core option overwrite level between 39% and 67%. The average option overwrite level during the reporting period, which consisted primarily of calls written on the S&P 500® Index, was in line with its long-term target.

How did the Fund perform during the twelve-month reporting period ended December 31, 2023?

For the twelve-month reporting period ended December 31, 2023, DIAX underperformed the DIAX Blended Benchmark, which is a blended return consisting of 1) 55% Chicago Board Options Exchange (Cboe) DJIA BuyWrite Index (BXDSM) and 2) 45% Dow Jones Industrial Average Index (DJIA). For purposes of this Performance Commentary, references to relative performance are in comparison to the DIAX Blended Benchmark.

The primary detractor from the Fund’s relative performance was call options sold on the S&P 500® Index. The BXDSM, which is a component of the DIAX Blended Benchmark, sells index call options on the DJIA. Because of its investment policies, the Fund is precluded from selling index call options on the DJIA and instead primarily sold call options on the S&P 500® Index. This combination detracted from the Fund’s relative performance because the S&P 500® Index significantly outperformed the DJIA for the reporting period.

Partially offsetting the Fund’s underperformance was the timing of overwrite levels in the Fund’s options portfolio. During the market’s strong advances in January, June and November 2023, the portfolio management team opportunistically lowered the Fund’s level of call selling, which benefited performance. However, this positive contribution was slightly offset by not adding enough options during the September 2023 market pullback.

The portfolio management team was able to generate additional income from selling put options on the S&P 500® Index, taking advantage of the index’s generally upward trajectory over the year. In addition, the portfolio management team sold calls and bought puts on the Russell 2000 Index, bought and sold single name call options, bought puts and calls on the Chicago Board Options Exchange (Cboe) Volatility Index (the VIX®), and bought and sold calls and puts on several ETFs, which had a negligible impact on relative performance in 2023.

Nuveen S&P 500 Dynamic Overwrite Fund (SPXX)

What key strategies were used to manage the Fund during the twelve-month reporting period ended December 31, 2023?

SPXX seeks attractive total return with less volatility than the S&P 500® Index by investing in an equity portfolio that seeks to substantially replicate the price movements of the S&P 500® Index, as well as selling call options on 35% to 75% of the notional value of the Fund’s equity portfolio, with a long-run target of 55% overwrite in an effort to enhance the Fund’s risk-adjusted returns. The portfolio management team uses its proprietary view of the market’s return and volatility profile to dynamically adjust the option overwrite percentage and other factors. The strategy will consider the Fund’s tax position and employ techniques to improve after-tax shareholder outcomes.

Generally, if the portfolio management team expects the equity market to appreciate, the option overwrite percentage will be reduced to offer more potential upside capture. Likewise, if the portfolio management team expects equity markets to be flat or to decline, the option overwrite percentage may be increased, thus managing the Fund to potentially receive additional cash flow from higher sales of call options. This dynamic option overwrite approach offers the potential for greater equity market upside capture than the full option overwrite approach, while still offering a measure of downside risk management. The Fund currently expects to emphasize index call options on the S&P 500® Index and can also employ an expanded range of options including index options on other broad-based indexes and options on custom baskets of stocks, in addition to single name options. The Fund also has the opportunity to utilize call spread strategies and sell put options on a portion of the underlying equity portfolio.

During the reporting period, the portfolio management team varied the core option overwrite level between 39% and 54%. The average option overwrite level during the reporting period, which consisted primarily of calls written on the S&P 500® Index, was in line with its long-term target.

 

8


 

 

How did the Fund perform during the twelve-month reporting period ended December 31, 2023?

For the twelve-month reporting period ended December 31, 2023, SPXX performed in line with the SPXX Blended Benchmark, which is a blended return consisting of 1) 55% Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM) and 2) 45% S&P 500® Index. For the purposes of this Performance Commentary, references to relative performance are in comparison to the SPXX Blended Benchmark.

The Fund’s equity portfolio outperformed the equity component of the SPXX Blended Benchmark over the reporting period. Key drivers of outperformance were stock selection in the financials, consumer staples and communication services sectors. The timing of overwrite levels in the Fund’s options portfolio also contributed to relative results. During the market’s strong advances in January, June and November 2023, the portfolio management team opportunistically lowered the Fund’s level of call selling, which benefited performance. However, this positive contribution was offset by not adding enough options during the September 2023 market pullback. In addition, the portfolio management team sold calls and bought puts on the Russell 2000 Index, sold call and put options on the S&P 500® Index, bought and sold single name call options, bought puts and calls on the Chicago Board Options Exchange (Cboe) Volatility Index (the VIX®), and bought and sold calls and puts on several ETFs, however the impact of these positions on relative performance was minimal.

Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)

What key strategies were used to manage the Fund during the twelve-month reporting period ended December 31, 2023?

QQQX seeks attractive total return with less volatility than the Nasdaq 100® Index by investing in an equity portfolio that seeks to substantially replicate the price movements of the Nasdaq 100® Index, as well as selling call options on 35% to 75% of the notional value of the Fund’s equity portfolio, with a long-run target of 55% in an effort to enhance the Fund’s risk-adjusted returns. The portfolio management team uses its proprietary view of the market’s return and volatility profile to dynamically adjust the option overwrite percentage and other factors. The strategy will consider the Fund’s tax position and employ techniques to improve after-tax shareholder outcomes.

Generally, if the portfolio management team expects the equity market to appreciate, the overwrite percentage will be reduced to offer more potential upside capture. Likewise, if the portfolio management team expects equity markets to be flat or to decline, the overwrite percentage may be increased, thus managing the Fund to potentially receive additional cash flow from higher sales of call options. This dynamic option overwrite approach offers potential for greater equity market upside capture than the full overwrite approach, while still offering a measure of downside risk management. The Fund, in carrying out its principal options strategy, expects to primarily write index call options on the Nasdaq 100® Index and other broad-based indexes and can also write call options on a variety of other equity market indexes and options on custom baskets of stocks, in addition to single name options. The Fund also has the opportunity to utilize call spread strategies and sell put options on a portion of the underlying equity portfolio.

During the reporting period, the portfolio management team varied the core option overwrite level between 38% and 66%. The average option overwrite during the reporting period, which consisted primarily of calls written on the Nasdaq 100® Index, was in line with its long-term target.

How did the Fund perform during the twelve-month reporting period ended December 31, 2023?

For the twelve-month reporting period ended December 31, 2023, QQQX underperformed the QQQX Blended Benchmark, which is a blended return consisting of 1) 55% Chicago Board Options Exchange (Cboe) Nasdaq 100 BuyWrite Index (BXNSM) and 2) 45% Nasdaq 100® Index. For the purposes of this Performance Commentary, references to relative performance are in comparison to the QQQX Blended Benchmark.

The primary detractor from the Fund’s relative performance was the equity portfolio’s return, driven by unfavorable stock selection in the information technology sector. The information technology sector was not only the strongest performing sector in the Nasdaq 100® Index, but its performance was narrowly led by a small group of mega-cap and artificial intelligence related stocks during the reporting period. Therefore, underweight positions in NVIDIA Corp, Broadcom Inc., and CrowdStrike Holdings Inc., and lack of exposure to Adobe Incorporated detracted from relative performance.

The Fund’s underperformance was partially offset by the timing of overwrite levels in the Fund’s options portfolio. During the market’s strong advances in January, June and November 2023, the portfolio management team opportunistically lowered the

 

9


Portfolio Managers’ Comments (continued)

  

 

Fund’s level of call selling, which benefited performance. However, this positive contribution was slightly offset by not adding enough options during the September 2023 market pullback.

In addition to selling calls on the Nasdaq 100® Index, the portfolio management team also sold calls and bought puts on the Russell 2000 Index, sold call and put options on the S&P 500® Index, bought and sold single name call options, bought puts and calls on the Chicago Board Options Exchange (Cboe) Volatility Index (the VIX®), and bought and sold calls and puts on several ETFs; however, the impact of these positions on relative performance was minimal.

Nuveen Core Equity Alpha Fund (JCE)

What key strategies were used to manage the Fund during the twelve-month reporting period ended December 31, 2023?

JCE seeks to provide an attractive level of total return, primarily through long-term capital appreciation and secondarily through income and gains. The Fund invests in large capitalization common stocks, using a proprietary quantitative process designed to provide the potential for long-term outperformance. The Fund also sells call options with a notional value of up to 50% of the Fund’s equity portfolio in seeking to enhance risk-adjusted performance relative to an all-equity portfolio. The portfolio management team uses its proprietary view of the market’s return and volatility profile to dynamically adjust the option overwrite percentage and other factors.

How did the Fund perform during the twelve-month reporting period ended December 31, 2023?

For the twelve-month reporting period ended December 31, 2023, JCE outperformed the JCE Blended Benchmark, which is a blend of returns consisting of 1) 50% S&P 500® Index and 2) 50% Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM). For purposes of this Performance Commentary, references to relative performance are in comparison to the JCE Blended Benchmark.

The primary contributor to relative performance was the timing of overwrite levels in the Fund’s options portfolio. During the market’s strong advances in January, June and November 2023, the portfolio management team opportunistically lowered the Fund’s level of call selling, which benefited performance. However, this positive contribution was slightly offset by not adding enough options during the September 2023 market pullback. Also, the portfolio management team was able to generate additional income from selling put options on the S&P 500® Index, taking advantage of the index’s generally upward trajectory. In addition, the portfolio management team bought and sold single name options, which added modestly to performance in 2023.

The Fund’s outperformance was partially offset by the equity portfolio’s return, which underperformed the S&P 500® Index, primarily due to security selection in the health care and information technology and consumer discretionary sectors. Detractors included overweight positions in Pfizer Inc. and Mettler-Toledo International Inc. and underweight positions in NVIDIA Corp, Broadcom Inc., Advanced Micro Devices Inc. and Tesla Inc. As part of the model-driven security selection process, which is designed to select constituents from the S&P 500® Index and the Russell 1000® Index, the portfolio management team seeks to minimize tracking error while adhering to tax and concentration rules.

In addition to selling call and put options on the S&P 500® Index and on single names, the portfolio management team sold calls on the Russell 2000® Index, bought puts and calls on the Chicago Board Options Exchange (Cboe) Volatility Index (the VIX®) and sold calls on several ETFs; however, the impact of these positions on relative performance was minimal.

 

 

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.

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

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

 

10


Common Share Information  

 

DISTRIBUTION INFORMATION

The following 19(a) Notice presents the Funds’ most current distribution information as of November 30, 2023 as required by certain exempted regulatory relief the Funds have received.

Because the ultimate tax character of your distributions depends on the Funds’ performance for its entire fiscal year (which is the calendar year for the Funds) as well as certain fiscal year-end (FYE) tax adjustments, estimated distribution source information you receive with each distribution may differ from the tax information reported to you on your Funds’ IRS Form 1099 statement.

Each Fund makes regular cash distributions to shareholders of stated dollar amount per share. Subject to approval and oversight by the Board of Trustees, the Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of each Fund’s investment strategy through regular distributions (a “Managed Distribution Program”). The practice of maintaining a stable distribution level had no material effect on each Fund’s investment strategy during the most recent fiscal period and is not expected to have such an effect in future periods, however, distributions in excess of Fund returns will cause its NAV per share to erode. For additional information, refer to the distribution information section below and in the Notes to Financial Statements herein.

COMMON SHARE DISTRIBUTION INFORMATION – AS OF NOVEMBER 30, 2023

This notice provides shareholders with information regarding fund distributions, as required by current securities laws. You should not draw any conclusions about the Funds’ investment performance from the amount of this distribution or from the terms of the Funds’ Managed Distribution Policy.

The following table provides estimates of the Funds’ distribution sources, reflecting year-to-date cumulative experience through the month-end prior to the latest distribution. The Funds attribute these estimates equally to each regular distribution throughout the year. Consequently, the estimated information as of the specified month-end shown below is for the current distribution, and also represents an updated estimate for all prior months in the year. For all Funds, it is estimated that the Funds have distributed more than their income and net realized capital gains; therefore, a portion of the distributions may be (and is shown below as being estimated to be) a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.”

The amounts and sources of distributions set forth below are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Funds’ investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. More details about the Funds’ distributions and the basis for these estimates are available on www.nuveen.com/cef.

Data as of November 30, 2023

 

             Per Share Estimated Sources of Distribution1       Estimated Percentage of Distributions1  
     

 

 

    

 

 

 
Fund   

Per Share

Distribution

    

Net

Investment

Income

    

Long-

Term

Gains

    

Short-

Term

Gains

     Return of
Capital
    

Net

Investment

Income

    

Long-

Term

Gains

    

Short-

Term

Gains

     Return of
Capital
 

 

 

BXMX (FYE 12/31)

                          

Current Quarter

     $0.2365        $0.0285        $0.1414        $0.0441        $0.0225        12.0%        59.8%        18.6%        9.5%  

Fiscal YTD

     $0.9460        $0.1138        $0.5656        $0.1764        $0.0902        12.0%        59.8%        18.6%        9.5%  

 

 

DIAX (FYE 12/31)

                          

Current Quarter

     $0.2867        $0.0530        $0.0577        $0.0000        $0.1760        18.5%        20.1%        0.0%        61.4%  

Fiscal YTD

     $1.1468        $0.2120        $0.2308        $0.0000        $0.7040        18.5%        20.1%        0.0%        61.4%  

 

 

SPXX (FYE 12/31)

                          

Current Quarter

     $0.2940        $0.0285        $0.0701        $0.0000        $0.1954        9.7%        23.8%        0.0%        66.4%  

Fiscal YTD

     $1.1760        $0.1142        $0.2804        $0.0000        $0.7814        9.7%        23.8%        0.0%        66.4%  

 

 

QQQX (FYE 12/31)

                          

Current Quarter

     $0.4200        $0.0000        $0.1097        $0.0258        $0.2845        0.0%        26.1%        6.1%        67.7%  

Fiscal YTD

     $1.6800        $0.0000        $0.4387        $0.1032        $1.1381        0.0%        26.1%        6.1%        67.7%  

 

 

JCE (FYE 12/31)

                          

Current Quarter

     $0.3200        $0.0154        $0.0068        $0.0000        $0.2978        4.8%        2.1%        0.0%        93.1%  

Fiscal YTD

     $1.2800        $0.0614        $0.0273        $0.0000        $1.1913        4.8%        2.1%        0.0%        93.1%  

 

 

1 Net investment income (NII) is a projection through the end of the current calendar quarter using actual data through the stated month-end date above. Capital gain amounts are as of the stated date above. The estimated per share sources above include an allocation of the NII based on prior year attributions which can be expected to differ from the actual final attributions for the current year.

 

11


Common Share Information (continued)

  

 

The following table provides information regarding the Funds’ distributions and total return performance over various time periods. This information is intended to help you better understand whether returns for the specified time periods were sufficient to meet its distributions.

Data as of November 30, 2023

 

                                 Annualized      Cumulative  
              

 

 

 
Fund   

Inception

Date

    

Quarterly

Distribution

    

Fiscal YTD

Distribution

    

Net Asset

Value (NAV)

    

5-Year

Return

on NAV

    

Fiscal YTD
Dist Rate on

NAV1

    

Fiscal YTD

Return

on NAV

    

Fiscal YTD
Dist Rate

on NAV1

 

 

 

BXMX

     Oct-2004        $0.2365        $0.9460        $13.89          7.40%        6.81%        16.44%        6.81%  

DIAX

     Apr-2005        $0.2867        $1.1468        $15.96        3.80%        7.19%        4.11%        7.19%  

SPXX

     Nov-2005        $0.2940        $1.1760        $16.11        7.17%        7.30%        15.06%        7.30%  

QQQX

     Jan-2007        $0.4200        $1.6800        $24.18        8.99%        6.95%        30.08%        6.95%  

JCE

     Mar-2007        $0.3200        $1.2800        $13.20        9.33%        9.70%        18.10%        9.70%  

 

 

1 As a percentage of 11/30/2023 NAV.

DISTRIBUTION INFORMATION – AS OF DECEMBER 31, 2023

The following tables provides information regarding the Funds’ common share distributions and total return performance for the fiscal year ended December 31, 2023. This information is intended to help you better understand whether the Funds’ returns for the specified time period were sufficient to meet its distributions.

Data as of December 31, 2023

 

            Per Share Sources of Distribution      Percentage of the Distribution  
     

 

 

 
Fund   

Per Share

Distribution

    

Net

Investment

Income

     Long-Term
Gains
    

Short-Term

Gains

    

Return of

Capital

    

Net

Investment

Income

    

Long-Term

Gains

    

Short-Term

Gains

    

Return of

Capital

 

 

 

BXMX

                          

(FYE 12/31)

     $0.9460        $0.1129        $0.3980        $0.1763        $0.2588           11.93%        42.07%        18.64%        27.36%  

 

 

DIAX

                          

(FYE 12/31)

     $1.1469        $0.1981        $0.0952        $0.0000        $0.8536        17.27%        8.30%        0.00%        74.43%  

 

 

SPXX

                          

(FYE 12/31)

     $1.1760        $0.1135        $0.6283        $0.0000        $0.4342        9.65%        53.43%        0.00%        36.92%  

 

 

QQQX

                          

(FYE 12/31)

     $1.6800        $0.0000        $1.1145        $0.1032        $0.4623        0.00%        66.34%        6.14%        27.52%  

 

 

JCE

                          

(FYE 12/31)

     $1.2800        $0.0631        $0.0174        $0.0000        $1.1995        4.93%        1.36%        0.00%        93.71%  

 

 

Data as of December 31, 2023

 

                   Annualized  
        

 

 

 
Fund   

Inception

Date

    

Net Asset

Value (NAV)

    

1-Year

Return on NAV

    

5-Year

Return on NAV

    

Fiscal YTD

Dist Rate on NAV

 

 

 

BXMX

     Oct-2004              $13.94             18.84%             9.17%              6.79%  

DIAX

     Apr-2005        $16.22        7.67%        6.22%        7.07%  

SPXX

     Nov-2005        $16.29        18.45%        9.67%        7.22%  

QQQX

     Jan-2007        $24.68        35.03%        11.69%        6.81%  

JCE

     Mar-2007        $13.28        21.68%        11.94%        9.64%  

 

 

NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS

The Nuveen Closed-End Funds’ monthly and quarterly periodic distributions to shareholders are posted on www.nuveen.com and can be found on Nuveen’s enhanced closed-end fund resource page, which is at https://www.nuveen.com/resource-center-closed-end-funds, along with other Nuveen closed-end fund product updates. To ensure timely access to the latest information, shareholders may use a subscribe function, which can be activated at this web page (https://www.nuveen.com/subscriptions).

COMMON SHARE EQUITY SHELF PROGRAMS

During the current reporting period, SPXX and QQQX were authorized by the Securities and Exchange Commission to issue additional common shares through an equity shelf program (Shelf Offering). Under these programs, the Funds, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above each Fund’s NAV per common share. The maximum aggregate offering under these Shelf Offerings are as shown in the accompanying table.

 

     SPXX      QQQX  

 

 

Maximum aggregate offering

     4,993,317          Unlimited  

 

 

 

12


 

 

During the current reporting period, QQQX sold common shares through its Shelf Offering at a weighted average premium to their NAV per common share as shown in the accompanying table.

 

     QQQX  

 

 

Common shares sold through shelf offering

     297,524  

Weighted average premium to NAV per common share sold

     3.84%  

 

 

Refer to Notes to Financial Statements, for further details of Shelf Offerings and each Fund’s transactions.

COMMON SHARE REPURCHASES

The Funds’ Board of Trustees reauthorized an open-market share repurchase program, allowing each Fund to repurchase and retire an aggregate of up to approximately 10% of its outstanding common shares.

During the current reporting period, the Funds did not repurchase any of their outstanding common shares. As of December 31, 2023, (and since the inception of the Funds’ repurchase programs), each Fund has cumulatively repurchased and retired its outstanding common shares as shown in the accompanying table.

 

     BXMX      DIAX      SPXX      QQQX      JCE  

 

 

Common shares repurchased and retired

     460,238        0        383,763        0        449,800  

Common shares authorized for repurchase

     10,415,000        3,635,000        1,795,000        4,845,000        1,605,000  

 

 

OTHER COMMON SHARE INFORMATION

As of December 31, 2023, the Funds’ common share prices were trading at a premium/(discount) to their common share NAVs and trading at an average premium/(discount) to NAV during the current reporting period, as follows:

 

     BXMX      DIAX      SPXX      QQQX      JCE  

 

 

Common share NAV

     $13.94           $16.22           $16.29           $24.68           $13.28  

Common share price

     $12.83        $14.00        $15.04        $23.15        $13.55  

Premium/(Discount) to NAV

     (7.96)%        (13.69)%        (7.67)%        (6.20)%        2.03%  

Average premium/(discount) to NAV

     (3.40)%        (9.51)%        (3.29)%        0.72%        (1.25)%  

 

 

 

13


About the Funds’ Benchmarks   

 

Chicago Board Options Exchange (Cboe) Dow Jones Industrial Average (DJIA) BuyWrite Index (BXDSM): An index designed to measure the performance of a hypothetical buy-write strategy on the Dow Jones Industrial Average. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

Chicago Board Options Exchange (Cboe) Nasdaq 100 BuyWrite Index (BXNSM): An index designed to measure the performance of a hypothetical buy-write strategy on the Nasdaq 100® Index. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM): An index designed to measure the performance of a hypothetical buy-write strategy on the S&P 500® Index. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

DIAX Blended Benchmark: Consists of: 1) 55% Chicago Board Options Exchange (Cboe) DJIA BuyWrite Index (BXDSM) (defined herein), and 2) 45% Dow Jones Industrial Average Index (DJIA) (defined herein). Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

Dow Jones Industrial Average Index (DJIA): An index designed to measure the performance of 30 actively traded U.S. large cap stocks. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

JCE Blended Benchmark: Consists of: 1) 50% S&P 500® Index (defined herein), and 2) 50% Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM) (defined herein). Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

Nasdaq 100® Index: An index that includes 100 of the largest domestic and international non-financial equity securities listed on the Nasdaq Stock Market based on market capitalization. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

QQQX Blended Benchmark: Consists of: 1) 55% Chicago Board Options Exchange (Cboe) Nasdaq 100 BuyWrite Index (BXNSM) (defined herein), and 2) 45% Nasdaq 100® Index (defined herein). Index returns assume reinvestment of distributions, but

do not reflect any applicable sales charges or management fees.

S&P 500® Index: An index generally considered representative of the U.S. equity market. The index includes 500 leading companies and covers approximately 80% of available market capitalization. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

SPXX Blended Benchmark: Consists of: 1) 55% Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM) (defined herein), and 2) 45% S&P 500® Index (defined herein). Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.

 

14


 

 

 

 

[This page intentionally left blank.]

 

 

 

15


BXMX   

Nuveen S&P 500 Buy-Write Income Fund

Performance Overview and Holding Summaries December 31, 2023

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

Fund Performance*

 

         

Total Returns as of

December 31, 2023

         

Average Annual

    

Inception

Date

      1-Year       5-Year      10-Year

 

BXMX at Common Share NAV

   10/26/04    18.84%    9.17%    7.24%

 

BXMX at Common Share Price

   10/26/04    9.05%    8.60%    7.67%

 

Cboe S&P 500® BuyWrite Index (BXMSM)

      11.82%    6.08%    5.58%

 

*For purposes of Fund performance, relative results are measured against the Cboe S&P 500® BuyWrite Index (BXMSM).

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

Daily Common Share NAV and Share Price

 

LOGO

Growth of an Assumed $10,000 Investment as of December 31, 2023 - Common Share Price

 

LOGO

 

16


 

Holdings Summaries as of December 31, 2023

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

 

Fund Allocation

(% of net assets)

Common Stocks    99.6%

Investments Purchased with
Collateral from Securities Lending

   0.0%
Repurchase Agreements    4.3%
Other Assets & Liabilities, Net    (3.9)%
Net Assets    100%

Portfolio Composition

(% of total investments)

Software & Services    11.2%
Technology Hardware & Equipment    8.4%
Semiconductors & Semiconductor Equipment    7.8%
Financial Services    7.8%
Media & Entertainment    7.7%
Pharmaceuticals, Biotechnology & Life Sciences    7.0%
Consumer Discretionary Distribution & Retail    5.8%
Capital Goods    5.4%
Health Care Equipment & Services    5.2%
Energy    3.6%
Banks    3.3%
Food, Beverage & Tobacco    2.5%
Materials    2.5%
Utilities    2.2%
Automobiles & Components    2.0%
Equity Real Estate Investment Trusts (REITs)    1.9%
Insurance    1.9%
Consumer Services    1.9%
Consumer Staples Distribution & Retail    1.8%
Commercial & Professional Services    1.5%
Transportation    1.4%
Household & Personal Products    1.4%
Consumer Durables & Apparel    0.9%
Telecommunication Services    0.7%

Investments Purchased with
Collateral from Securities Lending

   0.0%
Repurchase Agreements    4.2%
Total    100%

Top Five Common Stock Holdings

(% of net assets)

Microsoft Corp    7.2%
Apple Inc    7.2%
Amazon.com Inc    3.6%
NVIDIA Corp    3.2%
Alphabet Inc, Class A    2.2%
 

 

17


DIAX   

Nuveen Dow 30SM Dynamic Overwrite Fund

Performance Overview and Holding Summaries December 31, 2023

 

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

Fund Performance*

 

         

Total Returns as of

December 31, 2023

         

Average Annual

     Inception
Date
      1-Year       5-Year      10-Year

 

DIAX at Common Share NAV

   4/29/05    7.67%    6.22%    6.62%

 

DIAX at Common Share Price

   4/29/05    (2.18)%    4.60%    6.21%

 

Dow Jones Industrial Average Index (DJIA)

      16.18%    12.47%    11.08%

 

DIAX Blended Benchmark

      12.42%    9.23%    8.01%

 

* For purposes of Fund performance, relative results are measured against the DIAX Blended Benchmark. The Fund’s Blended Benchmark consists of: 1) 55% Chicago Board Options Exchange (Cboe) DJIA BuyWrite Index (BXDSM) and 2) 45% Dow Jones Industrial Average Index (DJIA).

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

Daily Common Share NAV and Share Price

 

LOGO

Growth of an Assumed $10,000 Investment as of December 31, 2023 - Common Share Price

 

LOGO

 

18


 

Holdings Summaries as of December 31, 2023

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

 

Fund Allocation

(% of net assets)

Common Stocks    99.7%
Exchange-Traded Funds    1.3%
Options Purchased    0.0%

Investments Purchased with
Collateral from Securities Lending

   0.1%
Repurchase Agreements    0.2%
Other Assets & Liabilities, Net    (1.3)%
Net Assets    100%

Portfolio Composition1

(% of total investments)

Capital Goods    15.1%
Financial Services    14.3%
Software & Services    13.8%
Pharmaceuticals, Biotechnology & Life Sciences    9.5%
Health Care Equipment & Services    9.1%
Consumer Discretionary Distribution & Retail    6.0%
Consumer Services    5.1%
Technology Hardware & Equipment    4.2%
Insurance    3.3%
Consumer Staples Distribution & Retail    3.2%
Banks    2.9%
Energy    2.6%
Household & Personal Products    2.5%
Consumer Durables & Apparel    1.9%
Media & Entertainment    1.5%
Other    3.4%
Exchange-Traded Funds    1.3%
Options Purchased    0.0%

Investments Purchased with
Collateral from Securities Lending

   0.1%
Repurchase Agreements    0.2%
Total Investments    100%

Top Five Common Stock Holdings

(% of net assets)

UnitedHealth Group Inc    9.2%
Goldman Sachs Group Inc/The    6.7%
Microsoft Corp    6.6%
Home Depot Inc/The    6.0%
McDonald’s Corp    5.2%
 

 

 

 

1

See the Portfolio of Investments for the remaining industries/sectors comprising “Other” and not listed in the table above.

 

19


SPXX   

Nuveen S&P 500 Dynamic Overwrite Fund

Performance Overview and Holding Summaries as of December 31, 2023

 

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

Fund Performance*

 

         

Total Returns as of

December 31, 2023

         

Average Annual

     Inception
Date
      1-Year       5-Year      10-Year

 

SPXX at Common Share NAV

   11/22/05    18.45%    9.67%    7.38%

 

SPXX at Common Share Price

   11/22/05    0.75%    8.71%    7.95%

 

S&P 500® Index

      26.29%    15.69%    12.03%

 

SPXX Blended Benchmark

      18.24%    10.42%    8.52%

 

*For purposes of Fund performance, relative results are measured against the SPXX Blended Benchmark. The Fund’s Blended Benchmark consists of: 1) 55% Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM) and 2) 45% S&P 500® Index.

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

Daily Common Share NAV and Share Price

 

LOGO

 

20


 

Growth of an Assumed $10,000 Investment as of December 31, 2023 - Common Share Price

 

LOGO

 

21


Performance Overview and Holdings Summaries December 31, 2023 (continued)

 

Holdings Summaries as of December 31, 2023

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

 

Fund Allocation

(% of net assets)

     

Common Stocks

   99.3%

Exchange-Traded Funds

   1.5%

Options Purchased

   0.0%

Investments Purchased with Collateral from Securities Lending

   1.0%

Repurchase Agreements

   0.2%

Other Assets & Liabilities, Net

   (2.0)%

Net Assets

   100%

Portfolio Composition1

(% of total investments)

     

Software & Services

   10.4%
Technology Hardware & Equipment    8.2%
Financial Services    8.1%
Media & Entertainment    7.8%
Semiconductors & Semiconductor Equipment    7.6%
Pharmaceuticals, Biotechnology & Life Sciences    7.3%
Health Care Equipment & Services    5.6%
Capital Goods    5.6%
Consumer Discretionary Distribution & Retail    5.4%
Energy    3.9%
Banks    3.4%
Food, Beverage & Tobacco    2.9%
Equity Real Estate Investment Trusts (REITs)    2.7%
Utilities    2.6%
Insurance    2.3%
Consumer Services    2.2%
Consumer Staples Distribution & Retail    2.1%
Materials    2.1%
Automobiles & Components    2.1%
Transportation    1.6%
Household & Personal Products    1.1%
Consumer Durables & Apparel    1.1%
Commercial & Professional Services    0.6%

Other

   0.6%

Exchange-Traded Funds

   1.5%

Options Purchased

   0.0%

Investments Purchased with Collateral from Securities Lending

   1.0%

Repurchase Agreements

   0.2%

Total

   100%

Top Five Common Stock Holdings

(% of net assets)

     

Apple Inc

   7.2%

Microsoft Corp

   7.1%

Amazon.com Inc

   3.5%

NVIDIA Corp

   3.1%

Alphabet Inc, Class A

   2.1%
 

 

1 

See the Portfolio of Investments for the remaining industries/sectors comprising “Other” and not listed in the table above.

 

22


QQQX    Nuveen Nasdaq 100 Dynamic Overwrite Fund
   Performance Overview and Holding Summaries as of December 31, 2023

 

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

Fund Performance*

 

            Total Returns as of
December 31, 2023
            Average Annual
      Inception
Date
       1-Year        5-Year        10-Year

QQQX at Common Share NAV

     1/30/07        35.03%        11.69%      10.46%

QQQX at Common Share Price

     1/30/07        21.78%        10.62%      10.32%

Nasdaq 100® Index

            55.13%        22.66%      17.91%

QQQX Blended Benchmark

            37.22%        14.11%      11.86%

* For purposes of Fund performance, relative results are measured against the QQQX Blended Benchmark. The Fund’s Blended Benchmark consists of: 1) 55% Chicago Board Options Exchange (Cboe) Nasdaq 100 BuyWrite Index (BXNSM) and 2) 45% Nasdaq 100® Index.

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

Daily Common Share NAV and Share Price

 

LOGO

 

23


 

Growth of an Assumed $10,000 Investment as of December 31, 2023 - Common Share Price

 

LOGO

 

24


 

Holdings Summaries as of December 31, 2023

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

 

Fund Allocation

(% of net assets)

     

Common Stocks

   100.0%

Exchange-Traded Funds

   1.2%

Options Purchased

   0.0%

Investments Purchased with Collateral from Securities Lending

   0.1%

Repurchase Agreements

   0.1%

Other Assets & Liabilities, Net

   (1.4)%

Net Assets

   100%

Portfolio Composition1

(% of total investments)

     
Semiconductors & Semiconductor Equipment    19.2%
Media & Entertainment    16.6%
Software & Services    15.7%
Technology Hardware & Equipment    13.9%
Consumer Discretionary Distribution & Retail    6.8%
Pharmaceuticals, Biotechnology & Life Sciences    4.9%
Automobiles & Components    3.5%
Food, Beverage & Tobacco    3.1%
Consumer Services    3.1%
Financial Services    2.3%
Consumer Staples Distribution & Retail    2.1%
Health Care Equipment & Services    1.8%
Capital Goods    1.3%
Utilities    1.2%
Transportation    0.7%
Commercial & Professional Services    0.6%
Telecommunication Services    0.4%
Consumer Durables & Apparel    0.4%

Energy

   0.3%

Materials

   0.3%

Household & Personal Products

   0.2%
Equity Real Estate Investment Trusts (REITs)    0.2%

Other

   0.0%

Exchange-Traded Funds

   1.2%

Options Purchased

   0.0%

Investments Purchased with Collateral from Securities Lending

   0.1%

Repurchase Agreements

   0.1%

Total

   100%

Top Five Common Stock Holdings

(% of net assets)

     

Apple Inc

   11.9%

Microsoft Corp

   11.4%

Alphabet Inc, Class A

   5.1%

Amazon.com Inc

   5.0%

Meta Platforms Inc

   4.7%
 

 

1 

See the Portfolio of Investments for the remaining industries/sectors comprising “Other” and not listed in the table above.

 

25


JCE    Nuveen Core Equity Alpha Fund
   Performance Overview and Holding Summaries as of December 31, 2023

 

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

Fund Performance*

 

            Total Returns as of
December 31, 2023
 
            Average Annual  
      Inception
Date
       1-Year        5-Year        10-Year  

JCE at Common Share NAV

     3/27/07        21.68%        11.94%        8.85%  

JCE at Common Share Price

     3/27/07        10.60%        13.60%        9.93%  

S&P 500® Index

            26.29%        15.69%        12.03%  

JCE Blended Benchmark

            18.96%        10.90%        8.84%  

*For purposes of Fund performance, relative results are measured against the JCE Blended Benchmark. The Fund’s Blended Benchmark consists of: 1) 50% S&P 500® Index and 2) 50% Chicago Board Options Exchange (Cboe) S&P 500® BuyWrite Index (BXMSM).

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

Daily Common Share NAV and Share Price

 

LOGO

 

26


 

Growth of an Assumed $10,000 Investment as of December 31, 2023 - Common Share Price

 

LOGO

 

27


Performance Overview and Holdings Summaries December 31, 2023 (continued)

 

Holdings Summaries as of December 31, 2023

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

 

Fund Allocation

(% of net assets)

     

Common Stocks

   99.6%

Exchange-Traded Funds

   0.5%

Options Purchased

   0.0%

Repurchase Agreements

   0.2%

Other Assets & Liabilities, Net

   (0.3)%

Net Assets

   100%

Portfolio Composition1

(% of total investments)

     
Software & Services    12.3%
Capital Goods    10.1%
Technology Hardware & Equipment    9.2%
Pharmaceuticals, Biotechnology & Life Sciences    7.9%
Media & Entertainment    7.5%
Financial Services    7.3%
Consumer Discretionary Distribution & Retail    7.2%
Semiconductors & Semiconductor Equipment    5.9%
Health Care Equipment & Services    5.6%
Energy    3.8%
Food, Beverage & Tobacco    3.2%
Consumer Staples Distribution & Retail    2.2%
Commercial & Professional Services    2.2%
Household & Personal Products    1.9%
Banks    1.9%
Materials    1.8%
Insurance    1.8%

Consumer Services

   1.7%

Utilities

   1.5%

Consumer Durables & Apparel

   1.5%
Equity Real Estate Investment Trusts (REITs)    1.2%

Automobiles & Components

   1.1%
Real Estate Management & Development    0.2%

Other

   0.3%

Exchange-Traded Funds

   0.5%

Options Purchased

   0.0%

Repurchase Agreements

   0.2%

Total

   100%

Top Five Common Stock Holdings

(% of net assets)

     

Apple Inc

   7.8%

Microsoft Corp

   7.8%

Amazon.com Inc

   4.1%

NVIDIA Corp

   3.8%

Alphabet Inc, Class C

   2.4%
 

 

1 

See the Portfolio of Investments for the remaining industries/sectors comprising “Other” and not listed in the table above.

 

28


Report of Independent Registered

Public Accounting Firm

 

To the Board of Trustees and Shareholders of Nuveen S&P 500 Buy-Write Income Fund, Nuveen Dow 30SM Dynamic Overwrite Fund, Nuveen S&P 500 Dynamic Overwrite Fund, Nuveen Nasdaq 100 Dynamic Overwrite Fund and Nuveen Core Equity Alpha Fund

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen S&P 500 Buy-Write Income Fund, Nuveen Dow 30SM Dynamic Overwrite Fund, Nuveen S&P 500 Dynamic Overwrite Fund, Nuveen Nasdaq 100 Dynamic Overwrite Fund and Nuveen Core Equity Alpha Fund (hereafter collectively referred to as the “Funds”) as of December 31, 2023, the related statements of operations for the year ended December 31, 2023, the statements of changes in net assets for each of the two years in the period ended December 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2023 and each of the financial highlights for each of the five years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

February 28, 2024

We have served as the auditor of one or more investment companies in Nuveen Funds since 2002.

 

29


BXMX    Nuveen S&P 500 Buy-Write Income Fund
   Portfolio of Investments December 31, 2023

 

Shares        

Description (a)

   Value
    

LONG-TERM INVESTMENTS - 99.6%

  
    

COMMON STOCKS - 99.6% (b)

  
    

Automobiles & Components - 2.1%

  

277,036

    

Ford Motor Co

   $ 3,377,069  

50,606

    

Gentex Corp

     1,652,792  

9,851

   (c)  

Goodyear Tire & Rubber Co/The

     141,066  

103,640

   (c)  

Tesla Inc

        25,752,467  
    

Total Automobiles & Components

     30,923,394  
    

 

 

    

Banks - 3.4%

  

319,502

    

Bank of America Corp

     10,757,632  

90,578

    

Citigroup Inc

     4,659,332  

26,341

    

Comerica Inc

     1,470,091  

106,516

    

Fifth Third Bancorp

     3,673,737  

51,859

    

First Horizon Corp

     734,324  

128,335

    

JPMorgan Chase & Co

     21,829,784  

148,632

    

KeyCorp

     2,140,301  

18,266

    

M&T Bank Corp

     2,503,903  

31,763

      

Zions Bancorp NA

     1,393,443  
    

Total Banks

     49,162,547  
    

 

 

    

Capital Goods - 5.6%

  

17,715

    

Allegion plc

     2,244,313  

31,219

   (c)  

Boeing Co/The

     8,137,545  

29,025

    

Caterpillar Inc

     8,581,822  

64,570

    

CNH Industrial NV

     786,463  

46,441

    

Emerson Electric Co

     4,520,102  

8,843

    

Ferguson PLC

     1,707,318  

5,450

    

Fortune Brands Innovations Inc

     414,963  

44,459

    

General Electric Co

     5,674,302  

31,851

    

Graco Inc

     2,763,393  

9,566

    

HEICO Corp

     1,711,070  

44,930

    

Honeywell International Inc

     9,422,270  

8,860

    

Hubbell Inc

     2,914,320  

43,726

    

Masco Corp

     2,928,767  

9,120

    

Northrop Grumman Corp

     4,269,437  

51,863

    

Otis Worldwide Corp

     4,640,183  

15,767

    

Parker-Hannifin Corp

     7,263,857  

99,428

    

Raytheon Technologies Corp

     8,365,872  

10,242

    

Rockwell Automation Inc

     3,179,936  

10,383

    

Timken Co/The

     832,197  

4,597

      

Woodward Inc

     625,790  
    

Total Capital Goods

     80,983,920  
    

 

 

    

Commercial & Professional Services - 1.5%

  

28,578

    

Automatic Data Processing Inc

     6,657,817  

9,115

    

Booz Allen Hamilton Holding Corp

     1,165,900  

29,484

   (c)  

CoStar Group Inc

     2,576,607  

9,803

    

ManpowerGroup Inc

     779,044  

15,652

    

SS&C Technologies Holdings Inc

     956,494  

11,679

    

TransUnion

     802,464  

14,343

    

Waste Connections Inc

     2,140,979  

37,983

      

Waste Management Inc

     6,802,755  
    

Total Commercial & Professional Services

     21,882,060  
    

 

 

 

30


 

Shares         Description (a)    Value
     Consumer Discretionary Distribution & Retail - 6.0%   

345,650

   (c)   Amazon.com Inc    $ 52,518,061  

8,358

     American Eagle Outfitters Inc      176,855  

37,972

     Best Buy Co Inc      2,972,448  

2,461

   (c)   Burlington Stores Inc      478,615  

4,252

     Dick’s Sporting Goods Inc      624,832  

4,736

   (c)   Five Below Inc      1,009,526  

50,051

     Home Depot Inc/The         17,345,174  

15,200

     JD.com Inc, ADR      439,128  

41,932

     LKQ Corp      2,003,930  

29,953

     Lowe’s Cos Inc      6,666,040  

12,760

     Macy’s Inc      256,731  

173

   (c)   MercadoLibre Inc      271,877  

16,563

     Nordstrom Inc      305,587  

4,728

   (c)   Ulta Beauty Inc      2,316,673  
     Total Consumer Discretionary Distribution & Retail      87,385,477  
    

 

 

     Consumer Durables & Apparel - 1.0%   

32,919

     KB Home      2,056,121  

6,689

     Kontoor Brands Inc      417,527  

5,984

   (c)   Lululemon Athletica Inc      3,059,559  

25,861

   (c)   Mattel Inc      488,256  

46,591

     NIKE Inc, Class B      5,058,385  

6,048

     Polaris Inc      573,169  

6,575

   (c)   TopBuild Corp      2,460,759  
     Total Consumer Durables & Apparel      14,113,776  
    

 

 

     Consumer Services - 2.0%   

2,100

   (c)   Booking Holdings Inc      7,449,162  

29,264

     Marriott International Inc/MD, Class A      6,599,325  

28,877

     McDonald’s Corp      8,562,319  

16,077

     Restaurant Brands International Inc      1,256,096  

51,807

     Starbucks Corp      4,973,990  

7,792

       Yum China Holdings Inc      330,615  
     Total Consumer Services      29,171,507  
    

 

 

     Consumer Staples Distribution & Retail - 1.9%   

4,507

     Casey’s General Stores Inc      1,238,253  

22,194

     Costco Wholesale Corp      14,649,816  

33,364

     Target Corp      4,751,701  

15,913

   (c)   US Foods Holding Corp      722,609  

34,973

       Walmart Inc      5,513,493  
     Total Consumer Staples Distribution & Retail      26,875,872  
    

 

 

     Energy - 3.8%   

44,283

     Cenovus Energy Inc      737,312  

8,394

     Cheniere Energy Inc      1,432,940  

77,267

     Chevron Corp      11,525,146  

9,675

   (c)   CNX Resources Corp      193,500  

64,103

     ConocoPhillips      7,440,435  

3,176

     Enbridge Inc      114,399  

166,691

     Exxon Mobil Corp      16,665,766  

82,234

     Halliburton Co      2,972,759  

25,709

     Hess Corp      3,706,209  

30,656

     Marathon Petroleum Corp      4,548,124  

21,104

     Ovintiv Inc      926,888  

77,600

     Schlumberger NV      4,038,304  

19,719

       TC Energy Corp      770,816  
     Total Energy      55,072,598  
    

 

 

 

31


BXMX    Nuveen S&P 500 Buy-Write Income Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares         Description (a)    Value
     Equity Real Estate Investment Trusts (REITs) - 2.0%   

123,237

     American Homes 4 Rent, Class A    $ 4,431,603  

29,177

     American Tower Corp      6,298,731  

17,121

     Apartment Income REIT Corp      594,612  

23,114

   (c)   Apartment Investment and Management Co, Class A      180,983  

55,269

     CubeSmart      2,561,718  

41,595

     Equity Commonwealth      798,624  

76,284

     Gaming and Leisure Properties Inc      3,764,615  

115,870

     Invitation Homes Inc      3,952,326  

19,823

     LXP Industrial Trust      196,644  

8,339

     Sabra Health Care REIT Inc      118,998  

11,688

     Sun Communities Inc      1,562,101  

142,164

       Weyerhaeuser Co      4,943,042  
     Total Equity Real Estate Investment Trusts (REITs)         29,403,997  
    

 

 

     Financial Services - 8.1%   

26,095

     Annaly Capital Management Inc      505,460  

81,706

   (c)   Berkshire Hathaway Inc, Class B      29,141,262  

20,528

   (c)   Block Inc      1,587,841  

53,704

     Brookfield Corp      2,154,604  

71,247

     Charles Schwab Corp/The      4,901,794  

23,102

     CME Group Inc      4,865,281  

42,085

     Discover Financial Services      4,730,354  

44,488

     Intercontinental Exchange Inc      5,713,594  

53,398

     Jefferies Financial Group Inc      2,157,813  

27,800

     KKR & Co Inc      2,303,230  

4,247

     LPL Financial Holdings Inc      966,702  

27,428

     Mastercard Inc, Class A      11,698,316  

48,313

     MGIC Investment Corp      931,958  

63,058

     Morgan Stanley      5,880,159  

2,104

     Morningstar Inc      602,249  

8,344

     MSCI Inc      4,719,784  

72,467

   (c)   PayPal Holdings Inc      4,450,198  

19,659

     S&P Global Inc      8,660,183  

89,957

     SLM Corp      1,719,978  

75,786

       Visa Inc, Class A      19,730,885  
     Total Financial Services      117,421,645  
    

 

 

     Food, Beverage & Tobacco - 2.6%   

107,234

     Altria Group Inc      4,325,819  

13,365

     British American Tobacco PLC, Sponsored ADR      391,461  

229,003

     Coca-Cola Co/The      13,495,147  

33,408

     Coca-Cola Europacific Partners PLC      2,229,650  

21,845

     Hormel Foods Corp      701,443  

51,527

     Keurig Dr Pepper Inc      1,716,880  

132,012

     Mondelez International Inc, Class A      9,561,629  

80,074

   (c)   Monster Beverage Corp      4,613,063  

12,100

   (c)   Post Holdings Inc      1,065,526  
     Total Food, Beverage & Tobacco      38,100,618  
    

 

 

     Health Care Equipment & Services - 5.4%   

96,418

     Abbott Laboratories      10,612,729  

30,067

     Alcon Inc      2,348,834  

116,361

   (c)   Boston Scientific Corp      6,726,829  

18,081

     Cigna Group/The      5,414,355  

54,401

     CVS Health Corp      4,295,503  

14,592

     Elevance Health Inc      6,881,004  

34,740

     GE HealthCare Technologies Inc      2,686,097  

16,250

     HCA Healthcare Inc      4,398,550  

 

32


Shares         Description (a)    Value
     Health Care Equipment & Services (continued)   

8,853

   (c)   IDEXX Laboratories Inc    $ 4,913,858  

99,846

     Medtronic PLC      8,225,313  

40,367

     UnitedHealth Group Inc      21,252,015  

638

   (c)   Veeva Systems Inc, Class A      122,828  
     Total Health Care Equipment & Services      77,877,915  
    

 

 

     Household & Personal Products - 1.4%   

15,340

   (c)   BellRing Brands Inc      850,296  

131,517

     Procter & Gamble Co/The      19,272,501  

6,327

       Spectrum Brands Holdings Inc      504,705  
     Total Household & Personal Products      20,627,502  
    

 

 

     Insurance - 2.0%   

28,004

     Allstate Corp/The      3,920,000  

34,937

     Arthur J Gallagher & Co      7,856,633  

37,130

     CNO Financial Group Inc      1,035,927  

23,577

     Fidelity National Financial Inc      1,202,898  

38,545

     Hartford Financial Services Group Inc/The      3,098,247  

9,393

     Lincoln National Corp      253,329  

3,360

     RenaissanceRe Holdings Ltd      658,560  

32,951

     Travelers Cos Inc/The      6,276,836  

71,665

       W R Berkley Corp      5,068,149  
     Total Insurance      29,370,579  
    

 

 

     Materials - 2.6%   

9,313

     Avery Dennison Corp      1,882,716  

74,375

     Barrick Gold Corp      1,345,444  

16,669

     Chemours Co/The      525,740  

52,881

     Corteva Inc      2,534,057  

7,888

     Crown Holdings Inc      726,406  

93,269

     Dow Inc      5,114,872  

23,362

     Eastman Chemical Co      2,098,375  

23,857

     Linde PLC      9,798,308  

8,265

     Martin Marietta Materials Inc      4,123,491  

20,588

     Nucor Corp      3,583,136  

14,196

     Nutrien Ltd      799,661  

10,656

     Olin Corp      574,891  

8,167

     Rio Tinto PLC, Sponsored ADR      608,115  

14,399

     RPM International Inc      1,607,360  

18,945

     Sonoco Products Co      1,058,457  

87,016

       Vale SA, Sponsored ADR      1,380,074  
     Total Materials      37,761,103  
    

 

 

     Media & Entertainment - 8.0%   

230,317

   (c)   Alphabet Inc, Class A         32,172,982  

186,111

   (c)   Alphabet Inc, Class C      26,228,623  

1,834

   (c)   Baidu Inc, Sponsored ADR      218,411  

190,443

     Comcast Corp, Class A      8,350,925  

84,081

   (c)   Meta Platforms Inc      29,761,311  

19,486

   (c)   Netflix Inc      9,487,344  

17,899

     New York Times Co/The, Class A      876,872  

78,489

     News Corp, Class A      1,926,905  

1,091

   (c)   Roku Inc      100,001  

100,097

   (d)   Sirius XM Holdings Inc      547,531  

71,398

       Walt Disney Co/The      6,446,525  
     Total Media & Entertainment      116,117,430  
    

 

 

 

33


BXMX    Nuveen S&P 500 Buy-Write Income Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares         Description (a)    Value
     Pharmaceuticals, Biotechnology & Life Sciences - 7.2%   

78,698

     AbbVie Inc    $ 12,195,829  

8,436

   (c)   Alnylam Pharmaceuticals Inc      1,614,735  

25,823

     Amgen Inc      7,437,540  

56,490

   (c)   Avantor Inc      1,289,667  

9,243

   (c)   BioMarin Pharmaceutical Inc      891,210  

97,561

     Bristol-Myers Squibb Co      5,005,855  

33,021

     Eli Lilly & Co      19,248,601  

2,000

   (c)   Exact Sciences Corp      147,960  

67,257

     Gilead Sciences Inc      5,448,490  

7,173

   (c)   ICON PLC      2,030,461  

109,458

     Johnson & Johnson      17,156,447  

112,570

     Merck & Co Inc      12,272,381  

241,787

     Pfizer Inc      6,961,048  

28,283

   (c)   Teva Pharmaceutical Industries Ltd,      295,275  
     Sponsored ADR   

24,976

       Thermo Fisher Scientific Inc      13,257,011  
     Total Pharmaceuticals, Biotechnology & Life Sciences         105,252,510  
    

 

 

     Semiconductors & Semiconductor Equipment - 8.1%   

69,056

   (c)   Advanced Micro Devices Inc      10,179,545  

56,923

     Applied Materials Inc      9,225,511  

1,597

     ASML Holding NV      1,208,801  

17,958

     Broadcom Inc      20,045,617  

13,344

     Entegris Inc      1,598,878  

9,062

     Lam Research Corp      7,097,902  

32,109

     Marvell Technology Inc      1,936,494  

62,434

     Micron Technology Inc      5,328,118  

92,957

     NVIDIA Corp      46,034,166  

22,437

     NXP Semiconductors NV      5,153,330  

36,779

   (c)   ON Semiconductor Corp      3,072,150  

50,975

       QUALCOMM Inc      7,372,514  
     Total Semiconductors & Semiconductor Equipment      118,253,026  
    

 

 

     Software & Services - 11.7%   

23,674

     Accenture PLC, Class A      8,307,443  

21,139

   (c)   Adobe Inc      12,611,527  

20,604

   (c)   Akamai Technologies Inc      2,438,483  

18,415

   (c)   Autodesk Inc      4,483,684  

10,744

   (c)   Check Point Software Technologies Ltd      1,641,576  

278,614

     Microsoft Corp      104,770,009  

81,715

     Oracle Corp      8,615,213  

46,556

   (c)   Salesforce Inc      12,250,746  

10,782

   (c)   ServiceNow Inc      7,617,375  

6,661

   (c)   Shopify Inc, Class A      518,892  

14,844

   (c)   VeriSign Inc      3,057,270  

5,378

   (c)   Workday Inc, Class A      1,484,651  

25,308

   (c)   Zoom Video Communications Inc, Class A      1,819,899  
     Total Software & Services      169,616,768  
    

 

 

     Technology Hardware & Equipment - 8.7%   

539,902

     Apple Inc      103,947,332  

20,728

     CDW Corp/DE      4,711,889  

19,049

   (c)   Ciena Corp      857,395  

220,344

     Cisco Systems Inc      11,131,779  

123,423

     Corning Inc      3,758,230  

6,851

     Dell Technologies Inc, Class C      524,102  

34,963

   (c)   Flex Ltd      1,064,973  

5,140

   (c)   Lumentum Holdings Inc      269,439  
     Total Technology Hardware & Equipment      126,265,139  
    

 

 

 

34


 

Shares         Description (a)                  Value

 

 

      Telecommunication Services - 0.7%         

262,068

      Verizon Communications Inc          $ 9,879,964   

 

 

      Total Telecommunication Services            9,879,964   
     

 

 

      Transportation - 1.5%         

68,557

   (c)    American Airlines Group Inc            941,973   

12,697

      Canadian National Railway Co            1,595,124   

23,404

      Canadian Pacific Railway Ltd            1,850,320   

4,425

   (c)    Lyft Inc, Class A            66,331   

21,947

      Norfolk Southern Corp            5,187,832   

15,588

   (c)    Uber Technologies Inc            959,753   

36,282

   (c)    United Airlines Holdings Inc            1,496,995   

57,728

      United Parcel Service Inc, Class B            9,076,574   

 

 

      Total Transportation            21,174,902   
     

 

 

      Utilities - 2.3%         

64,656

      Ameren Corp            4,677,215   

33,294

      Atmos Energy Corp            3,858,774   

114,508

      Evergy Inc            5,977,317   

2,933

      National Fuel Gas Co            147,149   

67,111

      NextEra Energy Inc            4,076,322   

17,519

      Northwestern Energy Group Inc            891,542   

74,176

      OGE Energy Corp            2,590,968   

29,198

      Pinnacle West Capital Corp            2,097,584   

103,939

      WEC Energy Group Inc            8,748,546   

 

 

      Total Utilities            33,065,417   
     

 

 

      Total Common Stocks
(cost $472,674,465)
           1,445,759,666   
     

 

 

      Total Long-Term Investments
(cost $472,674,465)
           1,445,759,666   
     

 

 

Shares

      Description (a)      Coupon           Value  

 

 

      INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING - 0.0%

 

571,823

   (e)    State Street Navigator Securities Lending Government Money Market Portfolio      5.360%(f)         $ 571,823   

 

 

      Total Investments Purchased with Collateral from Securities Lending
(cost $571,823)

 

        571,823   
     

 

 

Principal

Amount (000)

      Description (a)      Coupon          Maturity        Value  

 

 

      SHORT-TERM INVESTMENTS - 4.3%         
      REPURCHASE AGREEMENTS - 4.3%         

$    62,475

   (g)    Fixed Income Clearing Corp (FICC)      5.310%        1/02/24      $ 62,475,000   

 

 

      Total Repurchase Agreements (cost $62,475,000)            62,475,000   
     

 

 

      Total Short-Term Investments
(cost $62,475,000)
           62,475,000   
     

 

 

      Total Investments (cost $535,721,288) - 103.9%            1,508,806,489   
     

 

 

      Other Assets & Liabilities, Net - (3.9)%            (56,415,888)  
     

 

 

      Net Assets Applicable to Common Shares - 100%          $  1,452,390,601   
     

 

 

 

35


BXMX    Nuveen S&P 500 Buy-Write Income Fund (continued)
   Portfolio of Investments December 31, 2023

 

Investments in Derivatives

Options Written

 

 Type    Description(h)   

Number of

Contracts

    

Notional

Amount (i)

      

Exercise

Price

     Expiration Date     Value

 Call

   S&P 500 Index      (333      $(154,845,000        $4,650        1/31/24     $(5,341,320)

 Call

   S&P 500 Index      (333      (156,510,000        4,700        1/31/24     (4,009,320)

 Call

   S&P 500 Index      (333      (154,845,000        4,650        2/16/24     (6,078,915)

 Call

   S&P 500 Index      (334      (160,320,000        4,800        2/16/24     (2,571,800)

 Call

   S&P 500 Index      (334      (160,320,000        4,800        3/15/24     (3,672,330)

 Call

   S&P 500 Index      (334      (161,990,000        4,850        3/15/24     (2,743,810)

 Call

   S&P 500 Index      (334      (163,660,000        4,900        3/15/24     (1,975,610)

 Call

   S&P 500 Index      (333      (164,835,000        4,950        3/28/24     (1,751,580)

 Call

   S&P 500 Index      (334      (167,000,000        5,000        3/28/24     (1,227,450)

Total Options Written (premiums received $18,134,727)

     (3,002      $(1,444,325,000                       $(29,372,135)

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

 

(a)

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

(b)

The Fund may designate up to 100% of its common stock investments to cover outstanding options written.

(c)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

(d)

Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $542,055.

(e)

The Fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The collateral maintained by the Fund shall have a value, at the inception of each loan, equal to not less than 100% of the value of the loaned securities. The cash collateral received by the Fund is invested in this money market fund.

(f)

The rate shown is the one-day yield as of the end of the reporting period.

(g)

Agreement with Fixed Income Clearing Corporation, 5.310% dated 12/29/23 to be repurchased at $62,511,860 on 1/2/24, collateralized by Government Agency Securities, with coupon rate 2.375% and maturity date 2/15/42, valued at $63,724,519.

(h)

Exchange-traded, unless otherwise noted.

(i)

For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100.

 

ADR

American Depositary Receipt

REIT

Real Estate Investment Trust

S&P

Standard & Poor’s

See Notes to Financial Statements

 

36


DIAX    Nuveen Dow 30SM Dynamic Overwrite Fund
   Portfolio of Investments December 31, 2023

 

Shares         

Description (a)

   Value  
     

LONG-TERM INVESTMENTS - 101.0%

  
     

COMMON STOCKS - 99.7%

  
     

Banks - 3.0%

  

102,812

       

JPMorgan Chase & Co

   $ 17,488,321  
     

Total Banks

        17,488,321  
     

 

 
     

Capital Goods - 15.3%

  

102,812

     

3M Co

     11,239,408  

102,812

   (b)   

Boeing Co/The

     26,798,976  

102,812

     

Caterpillar Inc

     30,398,424  

102,812

       

Honeywell International Inc

     21,560,704  
     

Total Capital Goods

     89,997,512  
     

 

 
     

Consumer Discretionary Distribution & Retail - 6.0%

  

102,812

        Home Depot Inc/The      35,629,499  
     

Total Consumer Discretionary Distribution & Retail

     35,629,499  
     

 

 
     

Consumer Durables & Apparel - 1.9%

  

102,812

       

NIKE Inc, Class B

     11,162,299  
     

Total Consumer Durables & Apparel

     11,162,299  
     

 

 
     

Consumer Services - 5.2%

  

102,812

       

McDonald’s Corp

     30,484,786  
     

Total Consumer Services

     30,484,786  
     

 

 
     

Consumer Staples Distribution & Retail - 3.2%

  

102,812

     

Walgreens Boots Alliance Inc

     2,684,421  

102,812

       

Walmart Inc

     16,208,312  
     

Total Consumer Staples Distribution & Retail

     18,892,733  
     

 

 
     

Energy - 2.6%

  

102,812

       

Chevron Corp

     15,335,438  
     

Total Energy

     15,335,438  
     

 

 
     

Financial Services - 14.5%

  

102,812

   (c)   

American Express Co

     19,260,800  

102,812

   (c)   

Goldman Sachs Group Inc/The

     39,661,786  

102,812

       

Visa Inc, Class A

     26,767,104  
     

Total Financial Services

     85,689,690  
     

 

 
     

Food, Beverage & Tobacco - 1.0%

  

102,812

       

Coca-Cola Co/The

     6,058,711  
     

Total Food, Beverage & Tobacco

     6,058,711  
     

 

 
     

Health Care Equipment & Services - 9.2%

  

102,812

       

UnitedHealth Group Inc

     54,127,434  
     

Total Health Care Equipment & Services

     54,127,434  
     

 

 
     

Household & Personal Products - 2.5%

  

102,812

       

Procter & Gamble Co/The

     15,066,070  
     

Total Household & Personal Products

     15,066,070  
     

 

 
     

Insurance - 3.3%

  

102,812

       

Travelers Cos Inc/The

     19,584,658  
     

Total Insurance

     19,584,658  
     

 

 

 

37


DIAX    Nuveen Dow 30SM Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)            Value  
      Materials - 1.0%      

102,812

        Dow Inc             $ 5,638,210  
      Total Materials         5,638,210  
     

 

 
      Media & Entertainment - 1.6%      

102,812

        Walt Disney Co/The               9,282,895  
      Total Media & Entertainment         9,282,895  
     

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 9.6%

 

102,812

   (c)    Amgen Inc         29,611,912  

102,812

      Johnson & Johnson         16,114,753  

102,812

        Merck & Co Inc               11,208,564  
      Total Pharmaceuticals, Biotechnology & Life Sciences

 

     56,935,229  
     

 

 
      Semiconductors & Semiconductor Equipment - 0.9%

 

102,812

        Intel Corp               5,166,303  
      Total Semiconductors & Semiconductor Equipment

 

     5,166,303  
     

 

 
      Software & Services - 14.0%      

102,812

      International Business Machines Corp

 

     16,814,903  

102,812

      Microsoft Corp         38,661,424  

102,812

   (b)    Salesforce Inc               27,053,950  
      Total Software & Services         82,530,277  
     

 

 
      Technology Hardware & Equipment - 4.2%

 

  

102,812

   (c)    Apple Inc         19,794,395  

102,812

        Cisco Systems Inc               5,194,062  
      Total Technology Hardware & Equipment

 

     24,988,457  
     

 

 
      Telecommunication Services - 0.7%

 

  

102,812

        Verizon Communications Inc               3,876,012  
      Total Telecommunication Services         3,876,012  
     

 

 
     

Total Common Stocks

(cost $212,750,833)

          587,934,534  
     

 

 
Shares          Description (a)            Value  
      EXCHANGE-TRADED FUNDS - 1.3b%

 

  

2,450

      SPDR Dow Jones Industrial Average ETF Trust

 

   $ 923,331  

27,500

   (d)    Vanguard Total Stock Market ETF               6,523,550  
      Total Exchange-Traded Funds
(cost $7,048,149)
        7,446,881  
     

 

 

 

Type          Description (e)    Number of
Contracts
     Notional
Amount (f)
     Exercise
Price
     Expiration
Date
     Value  
      OPTIONS PURCHASED - 0.0%               

Put

        S&P 500 Index      35      $  14,700,000      $ 4200        1/19/24      $ 4,463  
     

Total Options Purchased

(cost $13,733)

     35      $ 14,700,000              4,463  
     

 

 
     

Total Long-Term Investments

(cost $219,812,715)

                   595,385,878  
     

 

 
       Shares          Description (a)                    Coupon              Value  
      INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING - 0.1%

 

  

910,821

      (g)      State Street Navigator Securities Lending Government Money Market Portfolio

 

              5.360%(h)               $ 910,821  
     

Total Investments Purchased with Collateral from Securities Lending

(cost $910,821)

 

 

        910,821  
     

 

 

 

38


 

Principal

Amount (000)

         Description (a)    Coupon      Maturity      Value
      SHORT-TERM INVESTMENTS - 0.2%         
      REPURCHASE AGREEMENTS - 0.2%         

$    1,029

   (i)    Fixed Income Clearing Corp (FICC)      1.600      1/02/24      $ 1,028,999  
     

Total Repurchase Agreements

(cost $1,028,999)

           1,028,999  
     

 

 

     

Total Short-Term Investments

(cost $1,028,999)

           1,028,999  
     

 

 

      Total Investments (cost $221,752,535) - 101.3%            597,325,698  
     

 

 

      Other Assets & Liabilities, Net - (1.3)%            (7,628,282
     

 

 

      Net Assets Applicable to Common Shares - 100%          $   589,697,416  
     

 

 

Investments in Derivatives

Options Written

 

 Type    Description(e)    Number of
Contracts
   

Notional

  Amount (f)

       Exercise
Price
     Expiration Date      Value  

 

 

  Call

    S&P 500 Index      (50     $(23,000,000     $4,600        1/05/24        $(874,250)  

  Call

    S&P 500 Index      (100     (46,000,000     4,600        1/12/24        (1,821,500)  

  Call

    Russell 2000 Index      (40     (8,200,000     2,050        1/19/24        (110,200)  

  Call

    S&P 500 Index      (100     (46,750,000     4,675        1/19/24        (1,221,000)  

  Call

    S&P 500 Index      (70     (32,900,000     4,700        1/19/24        (710,150)  

  Call

    S&P 500 Index      (50     (23,625,000     4,725        1/19/24        (411,000)  

  Call

    S&P 500 Index      (80     (38,200,000     4,775        1/19/24        (392,400)  

  Call

    S&P 500 Index      (35     (16,800,000     4,800        1/19/24        (126,350)  

  Call

    S&P 500 Index      (120     (57,600,000     4,800        1/31/24        (659,400)  

 

 

Total Options Written (premiums received $3,539,608)

     (645     $(293,075,000           $(6,326,250)  

 

 

 

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

 

(a)

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

(b)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

(c)

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

(d)

Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $880,798.

(e)

Exchange-traded, unless otherwise noted.

(f)

For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100.

(g)

The Fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The collateral maintained by the Fund shall have a value, at the inception of each loan, equal to not less than 100% of the value of the loaned securities. The cash collateral received by the Fund is invested in this money market fund.

(h)

The rate shown is the one-day yield as of the end of the reporting period.

(i)

Agreement with Fixed Income Clearing Corporation, 1.600% dated 12/29/23 to be repurchased at $1,029,182 on 1/2/24, collateralized by Government Agency Securities, with coupon rate 2.875% and maturity date 5/15/32, valued at $1,049,636.

 

ETF

Exchange-Traded Fund

S&P

Standard & Poor’s

SPDR

Standard & Poor’s Depositary Receipt

See Notes to Financial Statements

 

39


SPXX    Nuveen S&P 500 Dynamic Overwrite Fund
   Portfolio of Investments December 31, 2023

 

Shares            Description (a)    Value
        LONG-TERM INVESTMENTS - 100.8%   
        COMMON STOCKS - 99.3%   
        Automobiles & Components - 2.1%   

1,864

     (b)    Adient PLC    $ 67,775  

5,520

     (b),(c)    Fisker Inc      9,660  

699

     (b)    Fox Factory Holding Corp      47,169  

5,866

        Gentex Corp      191,584  

2,285

     (b)    Goodyear Tire & Rubber Co/The      32,721  

2,305

        Harley-Davidson Inc      84,916  

2,628

        Lear Corp      371,099  

1,133

     (b)    Rivian Automotive Inc, Class A      26,580  

20,298

     (b)    Tesla Inc      5,043,648  

1,213

        Thor Industries Inc      143,437  

742

     (b)    Visteon Corp      92,676  
        Total Automobiles & Components          6,111,265  
       

 

 

        Banks - 3.5%   

58,413

        Bank of America Corp      1,966,766  

22,776

        Citigroup Inc      1,171,597  

5,317

        Columbia Banking System Inc      141,858  

1,248

        Cullen/Frost Bankers Inc      135,396  

85

        First Citizens BancShares Inc/NC, Class A      120,612  

4,948

        First Horizon Corp      70,064  

24,521

        JPMorgan Chase & Co      4,171,021  

4,716

        New York Community Bancorp Inc      48,245  

4,203

        Synovus Financial Corp      158,243  

1,914

     (b)    Texas Capital Bancshares Inc      123,702  

3,622

        Webster Financial Corp      183,853  

32,799

        Wells Fargo & Co      1,614,367  

2,675

          Wintrust Financial Corp      248,106  
        Total Banks      10,153,830  
       

 

 

        Capital Goods - 5.6%   

506

        Acuity Brands Inc      103,644  

1,294

        AGCO Corp      157,105  

4,907

     (b)    Boeing Co/The      1,279,059  

2,021

        BWX Technologies Inc      155,071  

563

        Carlisle Cos Inc      175,898  

4,996

        Caterpillar Inc      1,477,167  

1,029

        Curtiss-Wright Corp      229,251  

3,017

        Deere & Co      1,206,408  

5,038

        Eaton Corp PLC      1,213,251  

740

        EMCOR Group Inc      159,418  

930

        Esab Corp      80,557  

2,181

        Fortune Brands Innovations Inc      166,061  

5,399

        Graco Inc      468,417  

1,527

        HEICO Corp      273,134  

8,713

        Honeywell International Inc      1,827,203  

6,141

        Illinois Tool Works Inc      1,608,573  

936

        Lennox International Inc      418,880  

1,101

        Lincoln Electric Holdings Inc      239,423  

2,947

        Lockheed Martin Corp      1,335,698  

595

     (b)    MasTec Inc      45,053  

1,258

     (b)    Middleby Corp/The      185,140  

1,377

        Oshkosh Corp      149,281  

2,476

        Owens Corning      367,017  

4,993

     (b),(c)    Plug Power Inc      22,469  

16,125

        Raytheon Technologies Corp      1,356,758  

 

40


 

Shares          Description (a)    Value
      Capital Goods (continued)   

2,981

      Sensata Technologies Holding PLC    $ 111,996  

2,008

      Timken Co/The      160,941  

1,360

      Toro Co/The      130,546  

914

   (b)    Trex Co Inc      75,670  

511

      Valmont Industries Inc      119,324  

637

      Watsco Inc      272,935  

686

      WESCO International Inc      119,282  

3,189

   (b)    WillScot Mobile Mini Holdings Corp      141,911  

927

        WW Grainger Inc      768,196  
      Total Capital Goods         16,600,737  
     

 

 

      Commercial & Professional Services - 0.6%   

3,554

   (b)    ARAMARK Uniform Services      75,132  

3,007

      Booz Allen Hamilton Holding Corp      384,624  

425

   (b)    CACI International Inc, Class A      137,641  

6,728

   (b)    Clarivate PLC      62,301  

786

   (b)    Clean Harbors Inc      137,165  

637

      Concentrix Corp      62,560  

2,600

   (b)    ExlService Holdings Inc      80,210  

318

   (b)    FTI Consulting Inc      63,330  

2,741

   (b)    GEO Group Inc/The      29,685  

2,665

      KBR Inc      147,668  

1,061

      RB Global Inc      70,970  

1,108

      Science Applications International Corp      137,747  

4,200

      SS&C Technologies Holdings Inc      256,661  

998

        TransUnion      68,573  
      Total Commercial & Professional Services      1,714,267  
     

 

 

      Consumer Discretionary Distribution & Retail - 5.4%   

67,878

   (b),(d)    Amazon.com Inc      10,313,383  

839

   (b)    AutoNation Inc      126,001  

1,137

      Dick’s Sporting Goods Inc      167,082  

515

   (b)    Five Below Inc      109,777  

9,671

      Home Depot Inc/The      3,351,486  

343

      Lithia Motors Inc      112,943  

7,215

      Lowe’s Cos Inc      1,605,698  

3,604

      Macy’s Inc      72,512  

38

   (b)    MercadoLibre Inc      59,719  

303

      Murphy USA Inc      108,038  

392

   (b)    PDD Holdings Inc ADR      57,354  

372

   (b)    RH      108,431  

753

   (b)    Wayfair Inc, Class A      46,460  

627

        Williams-Sonoma Inc      126,516  
      Total Consumer Discretionary Distribution & Retail      16,365,400  
     

 

 

      Consumer Durables & Apparel - 1.1%   

1,316

   (b)    Capri Holdings Ltd      66,116  

233

   (b)    Deckers Outdoor Corp      155,744  

8,589

      KB Home      536,470  

5,953

      Leggett & Platt Inc      155,790  

3,702

   (b)    Mattel Inc      69,894  

1,396

      Meritage Homes Corp      243,183  

12,271

      NIKE Inc, Class B      1,332,262  

4,109

   (b)    Sonos Inc      70,428  

4,744

   (b)    Taylor Morrison Home Corp      253,092  

4,723

      Tempur Sealy International Inc      240,731  

11,692

   (b)    Under Armour Inc, Class A      102,773  
      Total Consumer Durables & Apparel      3,226,483  
     

 

 

 

41


SPXX    Nuveen S&P 500 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      Consumer Services - 2.3%   

3,882

      Aramark    $ 109,084  

331

   (b)    Booking Holdings Inc      1,174,130  

2,995

      Boyd Gaming Corp      187,517  

555

   (b)    Bright Horizons Family Solutions Inc      52,303  

979

   (b)    DoorDash Inc, Class A      96,813  

2,395

   (b)    DraftKings Inc, Class A      84,424  

2,846

      Hyatt Hotels Corp      371,147  

1,038

      Marriott Vacations Worldwide Corp      88,116  

8,883

      McDonald’s Corp      2,633,898  

1,641

   (b)    Planet Fitness Inc      119,793  

1,485

      Service Corp International/US      101,648  

2,073

   (b)    Six Flags Entertainment Corp      51,991  

12,028

      Starbucks Corp      1,154,808  

3,429

      Travel + Leisure Co      134,040  

7,284

        Wendy’s Co/The      141,892  
      Total Consumer Services      6,501,604  
     

 

 

      Consumer Staples Distribution & Retail - 2.2%   

4,784

      Albertsons Cos Inc, Class A      110,032  

2,512

   (b)    BJ’s Wholesale Club Holdings Inc      167,450  

410

      Casey’s General Stores Inc      112,643  

3,962

      Costco Wholesale Corp      2,615,237  

1,590

   (b)    Performance Food Group Co      109,949  

5,221

      Target Corp      743,575  

2,961

   (b)    US Foods Holding Corp      134,459  

13,662

        Walmart Inc      2,153,814  
      Total Consumer Staples Distribution & Retail      6,147,159  
     

 

 

      Energy - 4.0%   

4,259

   (b)    Antero Resources Corp      96,594  

3,476

      ChampionX Corp      101,534  

1,457

      Cheniere Energy Inc      248,724  

2,132

      Chesapeake Energy Corp      164,036  

19,083

      Chevron Corp      2,846,420  

838

      Chord Energy Corp      139,301  

1,493

      Civitas Resources Inc      102,091  

4,421

   (b)    CNX Resources Corp      88,420  

3,448

      Comstock Resources Inc      30,515  

12,889

      ConocoPhillips      1,496,026  

2,931

   (b)    Dril-Quip Inc      68,204  

4,475

      Equitrans Midstream Corp      45,556  

34,642

      Exxon Mobil Corp      3,463,507  

1,270

      HF Sinclair Corp      70,574  

4,787

      Liberty Energy Inc      86,836  

9,638

      Magnolia Oil & Gas Corp, Class A      205,193  

6,358

      Marathon Petroleum Corp      943,273  

4,582

      Murphy Oil Corp      195,468  

11,967

      NOV Inc      242,692  

5,586

      Ovintiv Inc      245,337  

4,978

      Permian Resources Corp      67,701  

4,093

      Range Resources Corp      124,591  

3,108

      SM Energy Co      120,342  

14,618

   (b)    Southwestern Energy Co      95,748  

8,230

      TechnipFMC PLC      165,752  

52

      Texas Pacific Land Corp      81,767  

16,647

   (b)    Transocean Ltd      105,708  
      Total Energy         11,641,910  
     

 

 

 

42


 

Shares          Description (a)    Value
      Equity Real Estate Investment Trusts (REITs) - 2.8%   

5,517

      Agree Realty Corp    $ 347,295  

6,767

      American Homes 4 Rent, Class A      243,341  

5,198

      Americold Realty Trust Inc      157,343  

17,428

      Brandywine Realty Trust      94,111  

15,872

      Brixmor Property Group Inc      369,341  

7,025

      Cousins Properties Inc      171,059  

3,215

      CubeSmart      149,015  

1,929

      EastGroup Properties Inc      354,049  

6,011

      Equity LifeStyle Properties Inc      424,016  

2,673

      Extra Space Storage Inc      428,562  

10,582

      First Industrial Realty Trust Inc      557,354  

5,928

      Gaming and Leisure Properties Inc      292,547  

10,252

      Healthcare Realty Trust Inc      176,641  

3,292

      Hudson Pacific Properties Inc      30,649  

10,680

      Independence Realty Trust Inc      163,404  

464

      Innovative Industrial Properties Inc      46,780  

2,264

      Lamar Advertising Co, Class A      240,618  

3,983

      Macerich Co/The      61,458  

8,080

      Medical Properties Trust Inc      39,673  

2,140

   (b)    NET Lease Office Properties      39,547  

8,772

      NNN REIT Inc      378,074  

5,266

      Omega Healthcare Investors Inc      161,456  

3,825

      Outfront Media Inc      53,397  

5,255

      Pebblebrook Hotel Trust      83,975  

7,163

      Phillips Edison & Co Inc      261,306  

2,626

      PotlatchDeltic Corp      128,937  

10,701

      Prologis Inc          1,426,444  

3,334

      Rexford Industrial Realty Inc      187,037  

9,345

      RLJ Lodging Trust      109,523  

1,110

      Ryman Hospitality Properties Inc      122,167  

4,775

      Service Properties Trust      40,779  

13,021

      SITE Centers Corp      177,476  

965

      SL Green Realty Corp      43,589  

11,317

      Summit Hotel Properties Inc      76,050  

1,074

      Sun Communities Inc      143,540  

2,836

      WP Carey Inc      183,801  

6,435

        Xenia Hotels & Resorts Inc      87,645  
      Total Equity Real Estate Investment Trusts (REITs)      8,051,999  
     

 

 

      Financial Services - 8.2%   

890

   (b)    Affirm Holdings Inc      43,735  

2,624

      Ally Financial Inc      91,630  

6,384

      American Express Co      1,195,978  

6,647

      Annaly Capital Management Inc      128,752  

15,838

   (b),(d)    Berkshire Hathaway Inc, Class B      5,648,781  

1,444

      BlackRock Inc      1,172,239  

1,558

   (b)    Block Inc      120,511  

13,049

      Charles Schwab Corp/The      897,771  

304

   (b)    Coinbase Global Inc, Class A      52,872  

4,161

      Corebridge Financial Inc      90,127  

5,499

      Equitable Holdings Inc      183,117  

3,860

      Goldman Sachs Group Inc/The      1,489,072  

1,068

      Interactive Brokers Group Inc, Class A      88,537  

8,753

      Intercontinental Exchange Inc      1,124,148  

3,908

      KKR & Co Inc      323,778  

508

      LPL Financial Holdings Inc      115,631  

7,480

      Mastercard Inc, Class A      3,190,295  

7,780

      MGIC Investment Corp      150,076  

14,535

      Morgan Stanley      1,355,389  

10,922

   (b)    PayPal Holdings Inc      670,720  

684

      PennyMac Financial Services Inc      60,445  

 

43


SPXX    Nuveen S&P 500 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      Financial Services (continued)   

4,239

      Radian Group Inc    $ 121,023  

3,649

   (b)    Robinhood Markets Inc, Class A      46,488  

4,781

   (b)    Rocket Cos Inc, Class A      69,229  

3,398

      S&P Global Inc      1,496,887  

6,607

   (b)    SoFi Technologies Inc      65,740  

1,592

   (b)    Toast Inc, Class A      29,070  

1,119

      Tradeweb Markets Inc, Class A      101,695  

14,045

      Visa Inc, Class A      3,656,616  

5,055

      Voya Financial Inc      368,813  

8,999

        Western Union Co/The      107,268  
      Total Financial Services         24,256,433  
     

 

 

      Food, Beverage & Tobacco - 2.9%   

188

   (b)    Boston Beer Co Inc/The, Class A      64,971  

846

      Cal-Maine Foods Inc      48,552  

46,630

      Coca-Cola Co/The      2,747,906  

1,222

   (b)    Darling Ingredients Inc      60,904  

22,961

      Flowers Foods Inc      516,853  

646

   (b)    Freshpet Inc      56,047  

2,959

      Ingredion Inc      321,140  

485

      Lancaster Colony Corp      80,699  

16,493

      PepsiCo Inc      2,801,171  

13,855

      Philip Morris International Inc      1,303,478  

5,129

   (b)    Pilgrim’s Pride Corp      141,868  

4,453

   (b)    Post Holdings Inc      392,132  

2,100

   (b)    Simply Good Foods Co/The      83,160  

1,601

   (b)    TreeHouse Foods Inc      66,361  
      Total Food, Beverage & Tobacco      8,685,242  
     

 

 

      Health Care Equipment & Services - 5.8%   

18,190

      Abbott Laboratories      2,002,173  

1,223

   (b)    Acadia Healthcare Co Inc      95,100  

655

   (b)    Amedisys Inc      62,264  

23,584

   (b)    Boston Scientific Corp      1,363,391  

279

      Chemed Corp      163,145  

1,373

      CONMED Corp      150,357  

11,075

      CVS Health Corp      874,482  

1,637

   (b)    Doximity Inc, Class A      45,901  

2,725

      Elevance Health Inc      1,285,002  

2,253

      Encompass Health Corp      150,320  

1,716

   (b)    Enhabit Inc      17,761  

2,404

   (b)    Enovis Corp      134,672  

5,911

   (b)    Envista Holdings Corp      142,219  

2,780

   (b)    Globus Medical Inc, Class A      148,146  

757

   (b)    Haemonetics Corp      64,731  

1,783

      Humana Inc      816,275  

639

   (b)    ICU Medical Inc      63,734  

767

   (b)    Inari Medical Inc      49,794  

481

   (b)    Inspire Medical Systems Inc      97,850  

3,572

   (b)    Intuitive Surgical Inc      1,205,050  

697

   (b)    Lantheus Holdings Inc      43,214  

1,911

      McKesson Corp      884,755  

15,485

      Medtronic PLC      1,275,654  

1,383

   (b)    Merit Medical Systems Inc      105,053  

5,175

   (b)    Neogen Corp      104,069  

1,008

   (b)    Omnicell Inc      37,931  

2,090

   (b)    Option Care Health Inc      70,412  

433

   (b)    Penumbra Inc      108,917  

689

   (b)    QuidelOrtho Corp      50,779  

162

   (b)    Shockwave Medical Inc      30,871  

725

   (b)    STAAR Surgical Co      22,627  

 

44


 

Shares          Description (a)    Value
      Health Care Equipment & Services (continued)   

1,122

   (b)    Tandem Diabetes Care Inc    $ 33,189  

3,394

   (b)    Teladoc Health Inc      73,141  

1,806

   (b)    Tenet Healthcare Corp      136,479  

8,873

      UnitedHealth Group Inc      4,671,369  

1,340

   (b)    Veeva Systems Inc, Class A      257,977  
      Total Health Care Equipment & Services         16,838,804  
     

 

 

      Household & Personal Products - 1.1%   

1,282

   (b)    BellRing Brands Inc      71,061  

22,455

        Procter & Gamble Co/The      3,290,556  
      Total Household & Personal Products      3,361,617  
     

 

 

      Insurance - 2.4%   

2,124

      American Equity Investment Life Holding Co      118,519  

1,883

      American Financial Group Inc/OH      223,870  

5,688

      Arthur J Gallagher & Co      1,279,117  

2,593

   (b)    Brighthouse Financial Inc      137,222  

4,942

      Fidelity National Financial Inc      252,141  

1,586

      Hanover Insurance Group Inc/The      192,572  

196

      Kinsale Capital Group Inc      65,642  

177

   (b)    Markel Group Inc      251,322  

8,946

      Marsh & McLennan Cos Inc      1,694,998  

9,595

      Old Republic International Corp      282,093  

1,422

      Primerica Inc      292,591  

1,161

      Reinsurance Group of America Inc      187,827  

436

      RenaissanceRe Holdings Ltd      85,456  

1,346

      RLI Corp      179,180  

1,755

      Selective Insurance Group Inc      174,587  

6,012

      Travelers Cos Inc/The      1,145,226  

7,525

        Unum Group      340,281  
      Total Insurance      6,902,644  
     

 

 

      Materials - 2.2%   

2,176

      Alcoa Corp      73,984  

2,733

      Ashland Inc      230,419  

7,632

   (b)    Axalta Coating Systems Ltd      259,259  

3,411

      Berry Global Group Inc      229,867  

2,824

      Cabot Corp      235,804  

4,941

      Chemours Co/The      155,839  

4,597

   (b)    Cleveland-Cliffs Inc      93,871  

4,146

      Crown Holdings Inc      381,805  

12,941

      Element Solutions Inc      299,455  

10,647

      Graphic Packaging Holding Co      262,449  

3,334

      HB Fuller Co      271,421  

14,773

      Hecla Mining Co      71,058  

11,656

      Huntsman Corp      292,915  

1,271

   (b)    Ingevity Corporation      60,017  

1,550

      Louisiana-Pacific Corp      109,787  

1,379

      Minerals Technologies Inc      98,336  

2,400

   (b)    MP Materials Corp      47,640  

225

      NewMarket Corp      122,812  

3,302

      Olin Corp      178,143  

555

      Reliance Steel & Aluminum Co      155,222  

2,738

      Royal Gold Inc      331,189  

3,446

      RPM International Inc      384,677  

1,203

      Scotts Miracle-Gro Co/The      76,691  

1,986

      Sensient Technologies Corp      131,076  

4,526

      Silgan Holdings Inc      204,802  

4,146

      Sonoco Products Co      231,637  

 

45


SPXX    Nuveen S&P 500 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value  
      Materials (continued)   

2,718

      Southern Copper Corp    $ 233,938  

5,367

      SSR Mining Inc      57,749  

1,068

      Stepan Co      100,979  

8,818

      Tronox Holdings PLC      124,863  

3,022

      United States Steel Corp      147,020  

6,256

      Valvoline Inc      235,100  

1,794

        Westlake Corp      251,088  
      Total Materials      6,140,912  
     

 

 
      Media & Entertainment - 7.9%   

44,594

   (b),(d)    Alphabet Inc, Class A      6,229,336  

37,014

   (b),(d)    Alphabet Inc, Class C      5,216,383  

3,071

   (b)    Atlanta Braves Holdings Inc, Class C      121,550  

109

      Cable One Inc      60,668  

40,347

      Comcast Corp, Class A      1,769,215  

1,498

   (b)    IAC Inc      78,465  

2,501

   (b)    Liberty Broadband Corp, Class A      201,681  

1,107

   (b)    Liberty Media Corp-Liberty Formula One, Class A      64,184  

1,131

   (b)    Liberty Media Corp-Liberty Live, Class A      41,338  

16,581

   (b)    Meta Platforms Inc      5,869,011  

3,464

   (b)    Netflix Inc      1,686,553  

2,539

   (b)    Pinterest Inc, Class A      94,045  

1,382

   (b)    ROBLOX Corp, Class A      63,185  

641

   (b)    Roku Inc      58,754  

29,033

   (c)    Sirius XM Holdings Inc      158,811  

721

   (b)    Spotify Technology SA      135,483  

704

   (b)    TKO Group Holdings Inc      57,432  

2,279

   (b)    TripAdvisor Inc      49,067  

14,897

        Walt Disney Co/The      1,345,050  
      Total Media & Entertainment         23,300,211  
     

 

 
      Pharmaceuticals, Biotechnology & Life Sciences - 7.4%   

15,731

      AbbVie Inc      2,437,833  

2,527

   (b)    Alkermes PLC      70,099  

5,222

   (d)    Amgen Inc      1,504,040  

913

   (b)    BioMarin Pharmaceutical Inc      88,031  

19,264

      Bristol-Myers Squibb Co      988,436  

1,543

      Bruker Corp      113,380  

5,786

      Danaher Corp      1,338,533  

5,649

   (b)    Elanco Animal Health Inc      84,170  

6,385

      Eli Lilly & Co      3,721,943  

1,149

   (b)    Exact Sciences Corp      85,003  

4,414

   (b)    Exelixis Inc      105,892  

1,972

   (b)    Halozyme Therapeutics Inc      72,885  

1,132

   (b)    Ionis Pharmaceuticals Inc      57,268  

1,034

   (b)    Jazz Pharmaceuticals PLC      127,182  

19,612

      Johnson & Johnson      3,073,985  

395

   (b)    Medpace Holdings Inc      121,079  

23,887

      Merck & Co Inc      2,604,161  

462

   (b)    Mirati Therapeutics Inc      27,143  

3,026

   (b)    Mural Oncology PLC      17,914  

904

   (b)    Neurocrine Biosciences Inc      119,111  

50,011

      Pfizer Inc      1,439,817  

3,594

   (b)    QIAGEN NV      156,087  

186

   (b)    Repligen Corp      33,443  

5,318

      Royalty Pharma PLC      149,383  

399

   (b)    Sarepta Therapeutics Inc      38,476  

3,729

      Thermo Fisher Scientific Inc      1,979,316  

798

   (b)    United Therapeutics Corp      175,472  

 

46


 

Shares          Description (a)    Value
      Pharmaceuticals, Biotechnology & Life Sciences (continued)   

2,534

   (b)    Vertex Pharmaceuticals Inc    $ 1,031,059  
      Total Pharmaceuticals, Biotechnology & Life Sciences      21,761,141  
     

 

 

      Real Estate Management & Development - 0.1%   

1,786

   (b)    Anywhere Real Estate Inc      14,484  

1,600

   (c)    eXp World Holdings Inc      24,832  

1,231

   (b)    Jones Lang LaSalle Inc      232,499  

2,648

   (b)    Seritage Growth Properties, Class A      24,759  

1,785

   (b)    Zillow Group Inc, Class C      103,280  
      Total Real Estate Management & Development      399,854  
     

 

 

      Semiconductors & Semiconductor Equipment - 7.8%   

5,912

      Analog Devices Inc      1,173,887  

11,856

      Applied Materials Inc      1,921,502  

3,687

      Broadcom Inc      4,115,614  

34,415

      Intel Corp      1,729,354  

861

   (b)    Lattice Semiconductor Corp      59,400  

3,050

      Marvell Technology Inc      183,946  

9,246

      Microchip Technology Inc      833,804  

1,740

      MKS INSTRUMENTS INC      178,994  

18,369

      NVIDIA Corp      9,096,696  

10,222

      QUALCOMM Inc      1,478,408  

1,337

   (b)    Semtech Corp      29,294  

10,200

      Texas Instruments Inc      1,738,692  

521

      Universal Display Corp      99,646  

597

   (b)    Wolfspeed Inc      25,975  
      Total Semiconductors & Semiconductor Equipment         22,665,212  
     

 

 

      Software & Services - 10.7%   

3,572

   (b)    Adobe Inc      2,131,056  

993

   (b)    Altair Engineering Inc, Class A      83,561  

2,425

      Amdocs Ltd      213,133  

387

   (b)    BILL Holdings Inc      31,575  

937

   (b)    BlackLine Inc      58,506  

2,883

   (b)    Box Inc, Class A      73,834  

805

   (b)    Cloudflare Inc, Class A      67,024  

581

   (b)    Crowdstrike Holdings Inc, Class A      148,341  

747

   (b)    DocuSign Inc      44,409  

7,313

   (b)    Dropbox Inc, Class A      215,587  

1,426

   (b)    Dynatrace Inc      77,988  

515

   (b)    Elastic NV      58,041  

1,172

   (b)    Five9 Inc      92,225  

340

   (b)    Globant SA      80,913  

2,467

   (b)    GoDaddy Inc, Class A      261,898  

2,495

      Intuit Inc      1,559,450  

673

   (b)    Manhattan Associates Inc      144,910  

55,232

      Microsoft Corp      20,769,442  

55

   (b)    MicroStrategy Inc, Class A      34,739  

192

   (b)    MongoDB Inc      78,499  

2,273

   (b)    Nutanix Inc, Class A      108,399  

370

   (b)    Okta Inc      33,496  

14,001

      Oracle Corp      1,476,125  

4,962

   (b)    Palantir Technologies Inc, Class A      85,198  

872

      Pegasystems Inc      42,606  

454

   (b)    Rapid7 Inc      25,923  

1,278

   (b)    RingCentral Inc, Class A      43,388  

7,476

   (b)    Salesforce Inc      1,967,235  

2,769

   (b)    SentinelOne Inc, Class A      75,981  

237

   (b)    Snowflake Inc, Class A      47,163  

1,000

   (b)    Splunk Inc      152,350  

 

47


SPXX    Nuveen S&P 500 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      Software & Services (continued)   

1,641

   (b)    Teradata Corp    $ 71,400  

632

   (b)    Trade Desk Inc/The, Class A      45,479  

1,346

   (b)    Twilio Inc, Class A      102,121  

3,241

   (b)    UiPath Inc, Class A      80,506  

1,252

   (b)    Unity Software Inc      51,194  

410

   (b)    Wix.com Ltd      50,438  

1,207

   (b)    Workday Inc, Class A      333,204  

1,513

   (b)    Ziff Davis Inc      101,658  

2,638

   (b)    Zoom Video Communications Inc, Class A      189,699  
      Total Software & Services      31,308,694  
     

 

 

      Technology Hardware & Equipment - 8.3%   

108,834

   (d)    Apple Inc      20,953,809  

1,206

   (b)    Arrow Electronics Inc      147,434  

3,111

      Avnet Inc      156,794  

3,370

   (b)    Ciena Corp      151,684  

43,703

      Cisco Systems Inc      2,207,875  

1,796

   (b)    Coherent Corp      78,180  

5,255

      Dell Technologies Inc, Class C      402,008  

691

   (b)    IPG Photonics Corp      75,001  

1,617

      Jabil Inc      206,006  

1,321

   (b)    Pure Storage Inc, Class A      47,107  
      Total Technology Hardware & Equipment         24,425,898  
     

 

 

      Telecommunication Services - 0.5%   

1,094

   (b)    United States Cellular Corp      45,445  

37,283

        Verizon Communications Inc      1,405,569  
      Total Telecommunication Services      1,451,014  
     

 

 

      Transportation - 1.7%   

183

      Avis Budget Group Inc      32,439  

942

      Copa Holdings SA, Class A      100,145  

7,757

   (b),(c)    Frontier Group Holdings Inc      42,353  

1,506

   (b)    GXO Logistics Inc      92,107  

2,294

      Knight-Swift Transportation Holdings Inc      132,249  

397

   (b)    Saia Inc      173,973  

1,524

      Spirit Airlines Inc      24,978  

15,981

   (b)    Uber Technologies Inc      983,950  

6,904

      Union Pacific Corp      1,695,760  

9,091

      United Parcel Service Inc, Class B      1,429,378  

1,308

   (b)    XPO Inc      114,568  
      Total Transportation      4,821,900  
     

 

 

      Utilities - 2.7%   

2,745

      ALLETE Inc      167,884  

8,112

      Avangrid Inc      262,910  

5,370

      Black Hills Corp      289,712  

2,908

      Brookfield Renewable Corp, Class A      83,721  

5,568

      Clearway Energy Inc, Class C      152,730  

13,656

      Consolidated Edison Inc      1,242,286  

18,165

      Duke Energy Corp      1,762,732  

9,953

      Essential Utilities Inc      371,745  

3,823

      IDACORP Inc      375,877  

4,147

      National Fuel Gas Co      208,055  

6,703

      New Jersey Resources Corp      298,820  

18,838

      NextEra Energy Inc      1,144,220  

3,208

      Northwestern Energy Group Inc      163,255  

13,405

      OGE Energy Corp      468,237  

837

      Otter Tail Corp      71,120  

3,380

      PNM Resources Inc      140,608  

 

48


 

Shares          Description (a)                                  Value
      Utilities (continued)

 

  

7,972

      Portland General Electric Co

 

   $ 345,506  

1,738

      Southwest Gas Holdings Inc

 

     110,102  

1,283

   (b)    Sunnova Energy International Inc

 

     19,566  

5,242

        Vistra Corp

 

     201,922  
      Total Utilities

 

     7,881,008  
     

 

 

     

Total Common Stocks

(cost $115,745,635)

 

 

        290,715,238  
     

 

 

Shares          Description (a)    Value
      EXCHANGE-TRADED FUNDS - 1.5%

 

  

3,500

      SPDR S&P 500 ETF Trust

 

   $ 1,663,585  

11,300

   (c)    Vanguard Total Stock Market ETF

 

     2,680,586  
     

Total Exchange-Traded Funds

(cost $3,951,874)

 

 

     4,344,171  
     

 

 

Type          Description (e)   

Number of

Contracts

    

Notional

 Amount (f)

  

 Exercise

Price

    

Expiration

Date

     Value
      OPTIONS PURCHASED - 0.0%

 

Put

        S&P 500 Index      17      $ 7,140,000      $ 4200        1/19/24      $ 2,168  
     

Total Options Purchased

(cost $6,670)

     17      $ 7,140,000              2,168  
     

 

 

     

Total Long-Term Investments

(cost $119,704,179)

                 295,061,577  
     

 

 

Shares          Description (a)                  Coupon              Value
      INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING - 1.0%

 

  

2,933,198

   (g)   

State Street Navigator Securities Lending

Government Money Market Portfolio

 

 

        5.360%(h)         $ 2,933,198  
     

Total Investments Purchased with Collateral from Securities Lending

(cost $2,933,198)

 

 

        2,933,198  
     

 

 

Principal

Amount (000)

         Description (a)                  Coupon      Maturity      Value
      SHORT-TERM INVESTMENTS - 0.2%

           
      REPURCHASE AGREEMENTS - 0.2%

 

           

$     544

   (i)    Fixed Income Clearing Corp (FICC)

 

              1.600%        1/02/24      $ 543,866  
     

Total Repurchase Agreements

(cost $543,866)

                 543,866  
     

 

 

     

Total Short-Term Investments

(cost $543,866)

                 543,866  
     

 

 

      Total Investments (cost $123,181,243) - 102.0%

 

           298,538,641  
     

 

 

      Other Assets & Liabilities, Net - (2.0)%

 

           (5,980,898
     

 

 

      Net Assets Applicable to Common Shares - 100%

 

         $ 292,557,743  
     

 

 

Investments in Derivatives

Options Written

 

 Type    Description(e)   

Number of

Contracts

      

Notional

Amount (f)

      

Exercise

Price

     Expiration Date      Value  

Call

    S&P 500 Index      (25)        $ (11,500,000)          $4,600        1/05/24      $ (437,125)  

Call

    S&P 500 Index      (50)          (23,000,000)          4,600        1/12/24        (910,750)  

Call

    Russell 2000 Index      (20)          (4,100,000)          2,050        1/19/24        (55,100)  

Call

    S&P 500 Index      (50)          (23,375,000)          4,675        1/19/24        (610,500)  

Call

    S&P 500 Index      (35)          (16,450,000)          4,700        1/19/24        (355,075)  

Call

    S&P 500 Index      (25)          (11,812,500)          4,725        1/19/24        (205,500)  

Call

    S&P 500 Index      (40)          (19,100,000)          4,775        1/19/24        (196,200)  

 

 

49


SPXX    Nuveen S&P 500 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

 Type    Description(e)   

Number of

Contracts

      

Notional

Amount (f)

      

Exercise

Price

     Expiration Date      Value  

Call

   S&P 500 Index      (17)          $(8,160,000)          $4,800        1/19/24        $(61,370)  

Call

   S&P 500 Index      (60)          (28,800,000)          4,800        1/31/24        (329,700)  

Total Options Written (premiums received $1,769,196)

     (322)        $ (146,297,500)                          $ (3,161,320)  

 

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

 

(a)

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

(b)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

(c)

Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $2,853,286.

(d)

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

(e)

Exchange-traded, unless otherwise noted.

(f)

For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100.

(g)

The Fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The collateral maintained by the Fund shall have a value, at the inception of each loan, equal to not less than 100% of the value of the loaned securities. The cash collateral received by the Fund is invested in this money market fund.

(h)

The rate shown is the one-day yield as of the end of the reporting period.

(i)

Agreement with Fixed Income Clearing Corporation, 1.600% dated 12/29/23 to be repurchased at $543,963 on 1/2/24, collateralized by Government Agency Securities, with coupon rate 2.875% and maturity date 5/15/32, valued at $554,747.

 

ADR

American Depositary Receipt

ETF

Exchange-Traded Fund

REIT

Real Estate Investment Trust

S&P

Standard & Poor’s

SPDR

Standard & Poor’s Depositary Receipt

See Notes to Financial Statements

 

50


QQQX   

Nuveen Nasdaq 100 Dynamic Overwrite Fund

Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value  
      LONG-TERM INVESTMENTS - 101.2%   
      COMMON STOCKS - 100.0%   
      Automobiles & Components - 3.5%   

40,233

      Ford Motor Co    $ 490,440  

4,110

      Lear Corp      580,373  

48,771

   (b),(c)    Lucid Group Inc      205,326  

22,273

   (b),(c)    QuantumScape Corp      154,798  

22,972

   (c)    Rivian Automotive Inc, Class A      538,923  

163,806

   (c)    Tesla Inc      40,702,515  
      Total Automobiles & Components         42,672,375  
     

 

 

      Capital Goods - 1.4%   

39,235

   (c)    Archer Aviation Inc, Class A      240,903  

1,478

   (c)    Axon Enterprise Inc      381,812  

1,956

   (c)    Boeing Co/The      509,851  

9,138

      Caterpillar Inc      2,701,832  

3,812

   (b),(c)    Enovix Corp      47,726  

7,764

      Fortive Corp      571,663  

30,184

      General Electric Co      3,852,384  

584

      HEICO Corp      104,460  

2,990

      Howmet Aerospace Inc      161,819  

6,441

   (b),(c)    Plug Power Inc      28,985  

7,632

      Rockwell Automation Inc      2,369,583  

116

      TransDigm Group Inc      117,346  

4,996

      United Rentals Inc      2,864,806  

5,734

      Vertiv Holdings Co, Class A      275,404  

1,840

      Watsco Inc      788,385  

1,390

        WW Grainger Inc      1,151,879  
      Total Capital Goods      16,168,838  
     

 

 

      Commercial & Professional Services - 0.6%   

21,698

   (c)    ACV Auctions Inc, Class A      328,725  

634

      Booz Allen Hamilton Holding Corp      81,095  

9,596

   (c)    EAS Segment      789,367  

1,124

      Equifax Inc      277,954  

19,936

      Robert Half Inc      1,752,773  

7,070

      Rollins Inc      308,747  

4,378

      Tetra Tech Inc      730,819  

7,562

      Waste Connections Inc      1,128,780  

9,915

        Waste Management Inc      1,775,776  
      Total Commercial & Professional Services      7,174,036  
     

 

 

      Consumer Discretionary Distribution & Retail - 6.9%   

3,906

   (c)    Abercrombie & Fitch Co, Class A      344,587  

394,145

   (c),(d)    Amazon.com Inc      59,886,391  

5,446

      American Eagle Outfitters Inc      115,237  

940

   (c)    AutoZone Inc      2,430,473  

1,817

   (c)    Burlington Stores Inc      353,370  

1,711

   (c)    Carvana Co      90,580  

52,348

   (c)    Coupang Inc      847,514  

8,039

      Dick’s Sporting Goods Inc      1,181,331  

1,571

      Dillard’s Inc, Class A      634,134  

41,606

      eBay Inc      1,814,854  

12,343

   (c)    Etsy Inc      1,000,400  

2,402

   (c)    Five Below Inc      512,010  

5,972

      Gap Inc/The      124,875  

14,472

      Genuine Parts Co      2,004,372  

20,421

      LKQ Corp      975,920  

 

51


QQQX    Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      Consumer Discretionary Distribution & Retail (continued)   

4,325

      Lowe’s Cos Inc    $ 962,529  

14,611

   (c)    Ollie’s Bargain Outlet Holdings Inc      1,108,829  

7,621

      Pool Corp      3,038,569  

4,547

   (c)    Savers Value Village Inc      79,027  

24,886

      TJX Cos Inc/The      2,334,556  

6,915

      Tractor Supply Co      1,486,932  

2,331

   (c)    Ulta Beauty Inc      1,142,167  

4,507

   (c)    Wayfair Inc, Class A      278,082  

3,191

        Williams-Sonoma Inc      643,880  
      Total Consumer Discretionary Distribution & Retail         83,390,619  
     

 

 

      Consumer Durables & Apparel - 0.4%   

2,696

   (c)    Deckers Outdoor Corp      1,802,087  

27,957

      NIKE Inc, Class B      3,035,291  

3,437

   (c)    Skechers USA Inc, Class A      214,263  
      Total Consumer Durables & Apparel      5,051,641  
     

 

 

      Consumer Services - 3.1%   

6,160

   (c)    Booking Holdings Inc      21,850,875  

1,740

   (c)    Chipotle Mexican Grill Inc      3,979,310  

21,002

      Darden Restaurants Inc      3,450,629  

433

      Domino’s Pizza Inc      178,496  

13,319

   (c)    DraftKings Inc, Class A      469,495  

602

   (c)    Duolingo Inc      136,564  

26,996

      Hilton Worldwide Holdings Inc      4,915,702  

4,279

      McDonald’s Corp      1,268,766  

10,345

      Service Corp International/US      708,115  

1,480

        Wingstop Inc      379,738  
      Total Consumer Services      37,337,690  
     

 

 

      Consumer Staples Distribution & Retail - 2.2%   

25,248

   (c)    BJ’s Wholesale Club Holdings Inc      1,683,032  

2,618

      Casey’s General Stores Inc      719,269  

210,528

   (c)    HF Foods Group Inc      1,124,220  

24,681

      Kroger Co/The      1,128,168  

22,357

   (c)    Performance Food Group Co      1,545,987  

25,877

   (c)    Sprouts Farmers Market Inc      1,244,942  

60,824

      Sysco Corp      4,448,059  

17,183

      Target Corp      2,447,203  

46,686

   (c)    US Foods Holding Corp      2,120,011  

59,706

        Walmart Inc      9,412,651  
      Total Consumer Staples Distribution & Retail      25,873,542  
     

 

 

      Energy - 0.3%   

4,902

   (c)    Clean Energy Fuels Corp      18,775  

666

      ConocoPhillips      77,303  

5,519

      Hess Corp      795,619  

32,582

      NOV Inc      660,763  

3,259

      Pioneer Natural Resources Co      732,884  

8,314

      Schlumberger NV      432,660  

5,484

      Select Water Solutions Inc      41,624  

21,805

      TechnipFMC PLC      439,153  

141

      Texas Pacific Land Corp      221,715  

698

   (c)    Weatherford International PLC      68,285  
      Total Energy      3,488,781  
     

 

 

      Equity Real Estate Investment Trusts (REITs) - 0.2%   

55,254

        CubeSmart      2,561,023  
      Total Equity Real Estate Investment Trusts (REITs)      2,561,023  
     

 

 

 

52


 

Shares          Description (a)    Value
      Financial Services - 2.4%   

3,005

   (c)    Affirm Holdings Inc    $ 147,666  

5,861

   (c)    Berkshire Hathaway Inc, Class B      2,090,384  

666

   (c)    Coinbase Global Inc, Class A      115,831  

11,527

      Jack Henry & Associates Inc      1,883,627  

8,130

      Mastercard Inc, Class A      3,467,526  

8,682

      Moody’s Corp      3,390,842  

19,418

      Morgan Stanley      1,810,728  

143,943

   (c)    PayPal Holdings Inc      8,839,540  

3,079

      S&P Global Inc      1,356,361  

11,343

      SEI Investments Co      720,848  

11,700

   (c)    Toast Inc, Class A      213,642  

17,825

        Visa Inc, Class A      4,640,739  
      Total Financial Services         28,677,734  
     

 

 

      Food, Beverage & Tobacco - 3.1%   

1,452

      Archer-Daniels-Midland Co      104,863  

1,462

   (c)    Boston Beer Co Inc/The, Class A      505,253  

70,834

   (c)    Bridgford Foods Corp      775,632  

35,266

      Brown-Forman Corp, Class B      2,013,689  

7,539

   (c)    Bunge Global SA      761,062  

10,507

      Cal-Maine Foods Inc      602,997  

37,908

   (c)    Celsius Holdings Inc      2,066,744  

97,069

      Coca-Cola Co/The      5,720,276  

190

      Coca-Cola Consolidated Inc      176,396  

7,494

      Constellation Brands Inc, Class A      1,811,675  

4,567

   (c)    Freshpet Inc      396,233  

40,685

      General Mills Inc      2,650,221  

853

      Ingredion Inc      92,576  

22,636

   (c)    Laird Superfood Inc      20,599  

17,629

      Lamb Weston Holdings Inc      1,905,519  

20,310

      McCormick & Co Inc/MD      1,389,610  

242,394

   (c)    Monster Beverage Corp      13,964,318  

10,703

   (c)    Post Holdings Inc      942,506  

15,193

   (c)    Simply Good Foods Co/The      601,643  

16,131

   (c)    Sovos Brands Inc      355,366  

12,843

        Tyson Foods Inc, Class A      690,311  
      Total Food, Beverage & Tobacco      37,547,489  
     

 

 

      Health Care Equipment & Services - 1.8%   

26,882

      Abbott Laboratories      2,958,902  

1,197

   (c)    Align Technology Inc      327,978  

13,236

   (c)    Alphatec Holdings Inc      199,996  

11,805

   (c)    Axonics Inc      734,625  

2,837

      Becton Dickinson & Co      691,746  

45,774

   (c)    Boston Scientific Corp      2,646,195  

9,791

      Cardinal Health Inc      986,933  

845

      CENCORA INC      173,546  

255

      Cooper Cos Inc/The      96,502  

10,457

   (c)    Edwards Lifesciences Corp      797,346  

768

      Embecta Corp      14,538  

1,777

   (c)    Glaukos Corp      141,254  

6,017

   (c)    Guardant Health Inc      162,760  

11,126

   (c)    Inari Medical Inc      722,300  

2,477

   (c)    Inspire Medical Systems Inc      503,896  

17,865

   (c)    LENSAR Inc      62,706  

4,308

      McKesson Corp      1,994,518  

313

   (c)    Novocure Ltd      4,673  

271

   (c)    Penumbra Inc      68,167  

2,672

   (c)    PROCEPT BioRobotics Corp      111,984  

2,655

   (c)    RxSight Inc      107,050  

5,192

   (c)    Schrodinger Inc/United States      185,874  

 

53


QQQX    Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      Health Care Equipment & Services (continued)   

1,347

   (c)    Shockwave Medical Inc    $ 256,684  

19,914

      Stryker Corp      5,963,446  

20,982

   (c)    Teladoc Health Inc      452,162  

695

   (c)    TransMedics Group Inc      54,856  

929

      UnitedHealth Group Inc      489,091  

2,900

   (c)    Veeva Systems Inc, Class A      558,308  

4,183

   (c)    Venus Concept Inc      4,852  
      Total Health Care Equipment & Services      21,472,888  
     

 

 

      Household & Personal Products - 0.2%   

1,256

      Colgate-Palmolive Co      100,116  

4,331

   (c)    elf Beauty Inc      625,137  

1,884

      Estee Lauder Cos Inc/The, Class A      275,535  

11,199

        Procter & Gamble Co/The      1,641,101  
      Total Household & Personal Products      2,641,889  
     

 

 

      Insurance - 0.0%   

4,744

   (b),(c)    Lemonade Inc      76,521  
      Total Insurance      76,521  
     

 

 

      Materials - 0.3%   

4,212

      Ball Corp      242,274  

6,845

   (c)    comScore Inc      114,311  

4,584

      Linde PLC      1,882,695  

3,839

        Sherwin-Williams Co/The      1,197,384  
      Total Materials      3,436,664  
     

 

 

      Media & Entertainment - 16.8%   

439,779

   (c)    Alphabet Inc, Class A      61,432,729  

338,076

   (c)    Alphabet Inc, Class C      47,645,051  

642,116

      Comcast Corp, Class A      28,156,787  

6,551

   (c)    Integral Ad Science Holding Corp      94,269  

11,325

   (c)    Lions Gate Entertainment Corp, Class A      123,442  

10,553

   (c)    Live Nation Entertainment Inc      987,761  

37,991

   (c)    Match Group Inc      1,386,672  

160,569

   (c)    Meta Platforms Inc      56,835,003  

25,957

      New York Times Co/The, Class A      1,271,633  

6,270

      News Corp, Class B      161,264  

15,223

   (c)    ROBLOX Corp, Class A      695,996  

12,831

   (c)    Roku Inc      1,176,089  

42,393

      Saga Communications Inc, Class A      943,668  

8,142

   (c)    TKO Group Holdings Inc      664,224  

11,379

        Walt Disney Co/The      1,027,410  
      Total Media & Entertainment         202,601,998  
     

 

 

      Pharmaceuticals, Biotechnology & Life Sciences - 5.0%   

3,964

   (c)    89bio Inc      44,278  

21,953

      Agilent Technologies Inc      3,052,126  

66,016

   (d)    Amgen Inc      19,013,928  

803

   (c)    Arcus Biosciences Inc      15,337  

1,819

   (c)    Arvinas Inc      74,870  

4,186

   (c)    Biohaven Ltd      179,161  

1,796

   (c)    BioMarin Pharmaceutical Inc      173,170  

3,399

   (c)    Blueprint Medicines Corp      313,524  

4,277

   (c)    Bridgebio Pharma Inc      172,662  

2,012

   (c)    Cerevel Therapeutics Holdings Inc      85,309  

5,019

   (c)    Charles River Laboratories International Inc      1,186,492  

2,504

   (c)    Cymabay Therapeutics Inc      59,144  

5,067

   (c)    Cytokinetics Inc      423,044  

16,193

      Danaher Corp      3,746,089  

 

54


 

Shares          Description (a)    Value
      Pharmaceuticals, Biotechnology & Life Sciences (continued)   

22,400

   (c)    Day One Biopharmaceuticals Inc    $ 327,040  

6,554

   (c)    Editas Medicine Inc      66,392  

2,706

      Eli Lilly & Co      1,577,382  

5,556

   (c)    Exelixis Inc      133,288  

172,825

      Gilead Sciences Inc      14,000,553  

48,226

   (b),(c)    ImmunityBio Inc      242,095  

2,239

   (c)    ImmunoGen Inc      66,386  

13,603

   (c)    Insmed Inc      421,557  

3,844

   (c)    Ionis Pharmaceuticals Inc      194,468  

7,172

   (c)    Iovance Biotherapeutics Inc      58,308  

22,160

   (c)    Kura Oncology Inc      318,661  

1,618

   (c)    Madrigal Pharmaceuticals Inc      374,373  

5,783

   (c)    Mirati Therapeutics Inc      339,751  

7,810

   (c)    Neurocrine Biosciences Inc      1,029,046  

13,272

   (c)    Regeneron Pharmaceuticals Inc      11,656,665  

4,581

   (c)    Revance Therapeutics Inc      40,267  

4,032

   (c)    REVOLUTION Medicines Inc      115,638  

14,185

   (c)    Roivant Sciences Ltd      159,298  

3,102

   (c)    SpringWorks Therapeutics Inc      113,223  

7,934

   (c)    Twist Bioscience Corp      292,447  

8,154

   (c)    Ultragenyx Pharmaceutical Inc      389,924  

193

        West Pharmaceutical Services Inc      67,959  
      Total Pharmaceuticals, Biotechnology & Life Sciences         60,523,855  
     

 

 

      Semiconductors & Semiconductor Equipment - 19.5%   

166,423

   (c)    Advanced Micro Devices Inc      24,532,414  

94,350

      Analog Devices Inc      18,734,136  

165,056

      Applied Materials Inc      26,750,626  

9,301

   (c)    Axcelis Technologies Inc      1,206,247  

37,356

      Broadcom Inc      41,698,635  

15,643

   (c)    Cirrus Logic Inc      1,301,341  

5,054

   (c)    Credo Technology Group Holding Ltd      98,401  

2,309

   (c)    Enphase Energy Inc      305,111  

10,198

      Entegris Inc      1,221,924  

6,555

   (c)    First Solar Inc      1,129,295  

2,690

   (c)    FormFactor Inc      112,200  

420,372

      Intel Corp      21,123,693  

37,130

   (c)    Lattice Semiconductor Corp      2,561,599  

13,569

   (c)    MACOM Technology Solutions Holdings Inc      1,261,239  

2,974

   (b),(c)    Maxeon Solar Technologies Ltd      21,324  

6,123

      Monolithic Power Systems Inc      3,862,266  

9,503

   (c)    Navitas Semiconductor Corp      76,689  

111,204

      NVIDIA Corp      55,070,445  

7,607

   (c)    Onto Innovation Inc      1,163,110  

12,494

      Power Integrations Inc      1,025,882  

12,202

   (c)    Qorvo Inc      1,374,067  

140,959

      QUALCOMM Inc      20,386,900  

11,536

   (c)    Rambus Inc      787,332  

9,889

   (c)    Silicon Laboratories Inc      1,308,018  

1,869

   (c)    SiTime Corp      228,168  

20,407

      Skyworks Solutions Inc      2,294,155  

16,275

   (c)    SYNAPTICS INC      1,856,652  

9,086

      Taiwan Semiconductor Manufacturing Co Ltd, Sponsored ADR      944,944  

3,690

      Teradyne Inc      400,439  

9,995

        Universal Display Corp      1,911,644  
      Total Semiconductors & Semiconductor Equipment      234,748,896  
     

 

 

 

55


QQQX    Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      Software & Services - 15.9%   

1,868

   (c)    Appfolio Inc, Class A    $ 323,612  

6,319

   (c)    AppLovin Corp, Class A      251,812  

16,176

   (c)    Asana Inc      307,506  

52,492

   (c)    Autodesk Inc         12,780,752  

4,846

      Bentley Systems Inc, Class B      252,864  

6,843

   (c)    Braze Inc, Class A      363,569  

11,942

   (b),(c)    C3.ai Inc, Class A      342,855  

9,383

   (c)    Ceridian HCM Holding Inc      629,787  

5,650

   (c)    Cleanspark Inc      62,319  

20,252

   (c)    Confluent Inc, Class A      473,897  

5,238

   (c)    DocuSign Inc      311,399  

15,187

   (c)    DoubleVerify Holdings Inc      558,578  

16,008

   (c)    Dropbox Inc, Class A      471,916  

20,808

   (c)    Dynatrace Inc      1,137,989  

2,978

   (c)    Elastic NV      335,621  

9,639

   (c)    EngageSmart Inc      220,733  

1,335

   (c)    Fair Isaac Corp      1,553,953  

3,646

   (c)    Five9 Inc      286,904  

14,290

   (c)    Freshworks Inc, Class A      335,672  

5,922

   (c)    Gitlab Inc, Class A      372,849  

8,062

   (c)    Guidewire Software Inc      879,080  

7,482

   (c)    HashiCorp Inc, Class A      176,874  

2,688

   (c)    HubSpot Inc      1,560,492  

3,345

   (c)    Intapp Inc      127,177  

9,067

   (c)    Manhattan Associates Inc      1,952,306  

5,006

   (c)    Marathon Digital Holdings Inc      117,591  

365,081

      Microsoft Corp      137,285,059  

393

   (c)    MicroStrategy Inc, Class A      248,227  

11,808

   (c)    Nutanix Inc, Class A      563,124  

40,479

      Oracle Corp      4,267,701  

80,164

   (c)    Palantir Technologies Inc, Class A      1,376,416  

1,053

   (c)    Paylocity Holding Corp      173,587  

7,008

   (c)    Procore Technologies Inc      485,094  

24,964

   (c)    PTC Inc      4,367,701  

4,804

   (c)    Qualys Inc      942,929  

3,549

   (c)    Riot Platforms Inc      54,903  

22,714

   (c)    Salesforce Inc      5,976,962  

21,736

   (c)    SentinelOne Inc, Class A      596,436  

6,953

   (c)    ServiceNow Inc      4,912,225  

5,606

   (c)    Smartsheet Inc, Class A      268,079  

16,980

   (c)    Sprinklr Inc, Class A      204,439  

7,614

   (c)    Sprout Social Inc, Class A      467,804  

6,834

   (c)    Tenable Holdings Inc      314,774  

2,332

   (c)    Tyler Technologies Inc      975,056  

36,872

   (c)    UiPath Inc, Class A      915,900  

9,566

   (c)    Unity Software Inc      391,154  

10,300

   (c)    Varonis Systems Inc      466,384  

1,869

   (c)    Workiva Inc      189,760  

4,315

   (c)    Zoom Video Communications Inc, Class A      310,292  
      Total Software & Services      191,942,113  
     

 

 

      Technology Hardware & Equipment - 14.1%   

742,091

   (d)    Apple Inc      142,874,779  

497,907

      Cisco Systems Inc      25,154,262  

8,099

   (c)    Keysight Technologies Inc      1,288,470  
      Total Technology Hardware & Equipment      169,317,511  
     

 

 

      Telecommunication Services - 0.4%   

51,989

   (b),(c)    AST SpaceMobile Inc      313,494  

32,495

      Spok Holdings Inc      503,023  

31,079

      Telephone and Data Systems Inc      570,300  

 

56


 

Shares          Description (a)    Value
      Telecommunication Services (continued)

 

  

100,308

        Verizon Communications Inc

 

   $ 3,781,611  
      Total Telecommunication Services

 

     5,168,428  
     

 

 

      Transportation - 0.7%

 

  

11,239

      Delta Air Lines Inc

 

     452,145  

228

      FedEx Corp

 

     57,677  

4,575

      JB Hunt Transport Services Inc

 

     913,811  

26,971

   (c)    Lyft Inc, Class A

 

     404,295  

2,687

      Norfolk Southern Corp

 

     635,153  

1,881

   (c)    Saia Inc

 

     824,292  

33,792

   (c)    Uber Technologies Inc

 

     2,080,574  

10,994

      Union Pacific Corp

 

     2,700,346  

4,685

   (c)    XPO Inc

 

     410,359  
      Total Transportation

 

     8,478,652  
     

 

 

      Utilities - 1.2%

 

  

8,663

      American Water Works Co Inc

 

     1,143,429  

15,430

      Atmos Energy Corp

 

     1,788,337  

13,565

      CMS Energy Corp

 

     787,719  

10,727

      Consolidated Edison Inc

 

     975,835  

13,604

      Duke Energy Corp

 

     1,320,132  

19,654

      FirstEnergy Corp

 

     720,516  

17,908

      NRG Energy Inc

 

     925,844  

69,334

      PG&E Corp

 

     1,250,092  

3,827

      Public Service Enterprise Group Inc

 

     234,021  

22,816

      Sempra

 

     1,705,040  

52,824

      Southern Co/The

 

     3,704,019  

13,645

   (c)    Sunnova Energy International Inc

 

     208,086  
      Total Utilities

 

     14,763,070  
     

 

 

      Total Common Stocks
(cost $407,610,692)

 

     1,205,116,253  
     

 

 

Shares          Description (a)    Value
      EXCHANGE-TRADED FUNDS - 1.2%

 

  

58,000

        Vanguard Total Stock Market ETF

 

   $    13,758,760  
      Total Exchange-Traded Funds
(cost $13,379,869)

 

     13,758,760  
     

 

 

Type          Description (e)   

Number of

Contracts

    

Notional

Amount (f)

    

Exercise

Price

    

Expiration

Date

     Value
      OPTIONS PURCHASED - 0.0%

 

  

Put

        S&P 500 Index      70      $  29,400,000      $ 4200        1/19/24      $ 8,925  
      Total Options Purchased
(cost $27,466)
     70      $  29,400,000              8,925  
     

 

 

      Total Long-Term Investments
(cost $421,018,027)
                 1,218,883,938  
     

 

 

Shares          Description (a)                    Coupon              Value
      INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LENDING - 0.1%

 

  

1,542,799

   (g)   

State Street Navigator Securities Lending

Government Money Market Portfolio

 

 

     5.360%(h)               $ 1,542,799  
      Total Investments Purchased with Collateral from Securities Lending
(cost $1,542,799)

 

        1,542,799  
     

 

 

 

57


QQQX    Nuveen Nasdaq 100 Dynamic Overwrite Fund (continued)
   Portfolio of Investments December 31, 2023

 

Principal

 Amount (000)

           Description (a)                    Coupon         Maturity    Value
      SHORT-TERM INVESTMENTS - 0.1%               
      REPURCHASE AGREEMENTS - 0.1%            
$ 1,610      (i)    Fixed Income Clearing Corp (FICC)                        1.600%      1/02/24    $ 1,609,514  
      Total Repurchase Agreements
(cost $1,609,514)
                    1,609,514  
     

 

 

      Total Short-Term Investments
(cost $1,609,514)
                 1,609,514  
     

 

 

      Total Investments (cost $424,170,340) - 101.4%                  1,222,036,251  
     

 

 

      Other Assets & Liabilities, Net - (1.4)%                  (17,211,201
     

 

 

      Net Assets Applicable to Common Shares - 100%                $ 1,204,825,050  
     

 

 

Investments in Derivatives

Options Written

 

Type    Description(e)   

Number of

Contracts

    

Notional

Amount (f)

      

Exercise

Price

     Expiration Date      Value  

Call

   Invesco QQQ Trust Series 1      (1,000)        $(38,978,000)          $390        1/05/24        $(2,005,000)  

Call

   Invesco QQQ Trust Series 1      (2,000)        (78,356,000)          392        1/12/24        (3,790,000)  

Call

   Invesco QQQ Trust Series 1      (2,500)        (99,945,000)          400        1/19/24        (3,187,500)  

Call

   Invesco QQQ Trust Series 1      (1,500)        (61,767,000)          412        1/19/24        (701,250)  

Call

   Russell 2000 Index      (100)        (20,500,000)          2,050        1/19/24        (275,500)  

Call

   S&P 500 Index      (140)        (65,800,000)          4,700        1/19/24        (1,420,300)  

Call

   S&P 500 Index      (70)        (33,600,000)          4,800        1/19/24        (252,700)  

Call

   NASDAQ 100 Stock INDEX      (35)        (58,275,000)          16,650        1/19/24        (1,229,375)  

Call

   NASDAQ 100 Stock INDEX      (40)        (67,200,000)          16,800        1/19/24        (1,010,000)  

Call

   S&P 500 Index      (140)        (67,200,000)          4,800        1/31/24        (769,300)  

Total Options Written (premiums received $9,030,492)

     (7,525)      $ (591,621,000)                          $ (14,640,925)  

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

 

(a)

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

(b)

Investment, or a portion of investment, is out on loan for securities lending. The total value of the securities out on loan as of the end of the reporting period was $1,418,741.

(c)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

(d)

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

(e)

Exchange-traded, unless otherwise noted.

(f)

For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100.

(g)

The Fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker dealers, banks, and other institutions. The collateral maintained by the Fund shall have a value, at the inception of each loan, equal to not less than 100% of the value of the loaned securities. The cash collateral received by the Fund is invested in this money market fund.

(h)

The rate shown is the one-day yield as of the end of the reporting period.

(i)

Agreement with Fixed Income Clearing Corporation, 1.600% dated 12/29/23 to be repurchased at $1,609,800 on 1/2/24, collateralized by Government Agency Securities, with coupon rate 2.875% and maturity date 5/15/32, valued at $1,641,759.

 

ADR

American Depositary Receipt

ETF

Exchange-Traded Fund

REIT

Real Estate Investment Trust

S&P

Standard & Poor’s

See Notes to Financial Statements

 

58


JCE   

Nuveen Core Equity Alpha Fund

Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      LONG-TERM INVESTMENTS - 100.1%   
      COMMON STOCKS - 99.6%   
      Automobiles & Components - 1.1%   

9,310

   (b)    Tesla Inc    $ 2,313,349  
      Total Automobiles & Components      2,313,349  
     

 

 

      Banks - 1.9%   

4,005

      Bank of America Corp      134,849  

31,400

      Citigroup Inc      1,615,216  

9,070

      JPMorgan Chase & Co      1,542,807  

82,410

   (b)    NU Holdings Ltd/Cayman Islands, Class A      686,475  
      Total Banks      3,979,347  
     

 

 

      Capital Goods - 10.2%   

750

      3M Co      81,990  

9,260

      AGCO Corp      1,124,257  

20,290

      Crane NXT Co      1,153,892  

12,950

      Esab Corp      1,121,729  

29,770

      Flowserve Corp      1,227,119  

6,200

      General Dynamics Corp      1,609,954  

15,280

      General Electric Co      1,950,186  

9,220

      Honeywell International Inc      1,933,526  

1,320

      Hubbell Inc      434,188  

4,650

      Huntington Ingalls Industries Inc      1,207,326  

23,750

      Johnson Controls International plc      1,368,950  

2,610

      Lennox International Inc      1,168,027  

3,740

      Lockheed Martin Corp      1,695,118  

54,910

      MDU Resources Group Inc      1,087,218  

3,040

      Northrop Grumman Corp      1,423,146  

13,650

      Oshkosh Corp      1,479,797  

34,940

        Vertiv Holdings Co, Class A      1,678,168  
      Total Capital Goods      21,744,591  
     

 

 

      Commercial & Professional Services - 2.2%   

14,640

   (b)    EAS Segment      1,204,286  

10,580

      Leidos Holdings Inc      1,145,179  

6,380

      MSA Safety Inc      1,077,136  

30,460

        Rollins Inc      1,330,188  
      Total Commercial & Professional Services      4,756,789  
     

 

 

      Consumer Discretionary Distribution & Retail - 7.2%   

58,260

   (b),(c)    Amazon.com Inc      8,852,024  

68,720

   (b)    Coupang Inc      1,112,577  

10,190

      Home Depot Inc/The      3,531,345  

20,110

        TJX Cos Inc/The      1,886,519  
      Total Consumer Discretionary Distribution & Retail         15,382,465  
     

 

 

      Consumer Durables & Apparel - 1.5%   

370

      DR Horton Inc      56,233  

16,250

      NIKE Inc, Class B      1,764,262  

36,810

        Tapestry Inc      1,354,976  
      Total Consumer Durables & Apparel      3,175,471  
     

 

 

 

59


JCE    Nuveen Core Equity Alpha Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)    Value
      Consumer Services - 1.7%   

550

   (b)    Booking Holdings Inc    $ 1,950,971  

220

      McDonald’s Corp      65,232  

17,280

        Starbucks Corp      1,659,053  
      Total Consumer Services      3,675,256  
     

 

 
      Consumer Staples Distribution & Retail - 2.2%   

540

      Costco Wholesale Corp      356,443  

18,680

      Sysco Corp      1,366,069  

11,960

      Target Corp      1,703,343  

8,459

        Walmart Inc      1,333,561  
      Total Consumer Staples Distribution & Retail      4,759,416  
     

 

 
      Diversified Financials - 0.2%   

13,450

   (b)    NCR Corp ATM      326,700  
      Total Diversified Financials      326,700  
     

 

 
      Energy - 3.9%   

42,020

      Baker Hughes Co      1,436,244  

2,329

      Chevron Corp      347,394  

2,660

      EOG Resources Inc      321,727  

31,750

      Exxon Mobil Corp      3,174,365  

25,080

      HF Sinclair Corp      1,393,695  

11,980

        Valero Energy Corp      1,557,400  
      Total Energy      8,230,825  
     

 

 
      Equity Real Estate Investment Trusts (REITs) - 1.2%   

3,490

      Cousins Properties Inc      84,982  

8,130

      Digital Realty Trust Inc      1,094,135  

2,330

      Host Hotels & Resorts Inc      45,365  

26,470

        Ventas Inc      1,319,265  
      Total Equity Real Estate Investment Trusts (REITs)      2,543,747  
     

 

 
      Financial Services - 7.3%   

8,790

      American Express Co      1,646,719  

14,420

   (b)    Berkshire Hathaway Inc, Class B      5,143,037  

22,070

   (b)    Block Inc      1,707,114  

23,430

      Fidelity National Information Services Inc      1,407,440  

7,390

   (b)    Fiserv Inc      981,688  

12,310

      Global Payments Inc      1,563,370  

1,901

      Mastercard Inc, Class A      810,796  

22,380

      Nasdaq Inc      1,301,173  

4,400

        Visa Inc, Class A      1,145,540  
      Total Financial Services         15,706,877  
     

 

 
      Food, Beverage & Tobacco - 3.2%   

10,510

   (b)    Bunge Global SA      1,060,985  

20,870

      Coca-Cola Co/The      1,229,869  

15,710

      PepsiCo Inc      2,668,186  

20,100

        Philip Morris International Inc      1,891,008  
      Total Food, Beverage & Tobacco      6,850,048  
     

 

 
      Health Care Equipment & Services - 5.6%   

26,290

   (b)    Boston Scientific Corp      1,519,825  

11,880

      Cardinal Health Inc      1,197,504  

19,390

   (b)    Centene Corp      1,438,932  

3,780

   (c)    Elevance Health Inc      1,782,497  

16,030

   (b)    Hologic Inc      1,145,344  

2,970

      Humana Inc      1,359,696  

1,780

   (b)    Insulet Corp      386,224  

 

60


 

Shares          Description (a)    Value
      Health Care Equipment & Services (continued)   

12,580

      Medtronic PLC    $ 1,036,340  

30,370

   (b)    Teladoc Health Inc      654,473  

2,880

        UnitedHealth Group Inc      1,516,234  
      Total Health Care Equipment & Services      12,037,069  
     

 

 

      Household & Personal Products - 1.9%   

14,550

      Colgate-Palmolive Co      1,159,780  

19,690

        Procter & Gamble Co/The      2,885,373  
      Total Household & Personal Products      4,045,153  
     

 

 

      Insurance - 1.8%   

11,150

      Cincinnati Financial Corp      1,153,579  

13,240

      Loews Corp      921,371  

8,870

        Marsh & McLennan Cos Inc      1,680,599  
      Total Insurance      3,755,549  
     

 

 

      Materials - 1.8%   

5,030

      Air Products and Chemicals Inc      1,377,214  

31,180

   (b)    Axalta Coating Systems Ltd      1,059,185  

9,300

        PPG Industries Inc      1,390,815  
      Total Materials      3,827,214  
     

 

 

      Media & Entertainment - 7.5%   

33,820

   (b),(c)    Alphabet Inc, Class A      4,724,316  

36,710

   (b),(c)    Alphabet Inc, Class C      5,173,540  

47,670

      Comcast Corp, Class A      2,090,330  

9,090

   (b)    Meta Platforms Inc      3,217,496  

10,240

        Walt Disney Co/The      924,570  
      Total Media & Entertainment         16,130,252  
     

 

 

      Pharmaceuticals, Biotechnology & Life Sciences - 7.9%   

17,060

      AbbVie Inc      2,643,788  

32,300

      Bristol-Myers Squibb Co      1,657,313  

2,070

      Eli Lilly & Co      1,206,644  

21,459

      Johnson & Johnson      3,363,484  

23,991

      Merck & Co Inc      2,615,499  

130

   (b)    Mettler-Toledo International Inc      157,685  

4,690

   (b)    Neurocrine Biosciences Inc      617,954  

60,290

      Pfizer Inc      1,735,749  

35,000

      Royalty Pharma PLC      983,150  

1,443

      Thermo Fisher Scientific Inc      765,930  

3,500

        West Pharmaceutical Services Inc      1,232,420  
      Total Pharmaceuticals, Biotechnology & Life Sciences      16,979,616  
     

 

 

      Real Estate Management & Development - 0.2%   

2,190

   (b)    Jones Lang LaSalle Inc      413,625  
      Total Real Estate Management & Development      413,625  
     

 

 

      Semiconductors & Semiconductor Equipment - 5.9%   

17,840

   (b)    Allegro MicroSystems Inc      540,017  

830

      Broadcom Inc      926,488  

15,130

      Intel Corp      760,282  

16,610

      NVIDIA Corp      8,225,604  

14,670

        QUALCOMM Inc      2,121,722  
      Total Semiconductors & Semiconductor Equipment      12,574,113  
     

 

 

 

61


JCE    Nuveen Core Equity Alpha Fund (continued)
   Portfolio of Investments December 31, 2023

 

Shares          Description (a)      Value  
      Software & Services - 12.3%

 

  

5,210

   (b)     Adobe Inc

 

   $ 3,108,286  

750

   (b)    Atlassian Corp Ltd, Class A

 

     178,395  

7,640

   (b)    Cadence Design Systems Inc

 

     2,080,907  

7,940

   (b)    DocuSign Inc

 

     472,033  

44,115

      Microsoft Corp

 

        16,589,005  

11,421

   (b)    Salesforce Inc

 

     3,005,322  

1,000

   (b)    Synopsys Inc

 

     514,910  

8,640

   (b)    Teradata Corp

 

     375,926  
      Total Software & Services

 

     26,324,784  
     

 

 
      Technology Hardware & Equipment - 9.3%

 

  

86,548

   (c)    Apple Inc

 

     16,663,086  

42,190

      Cisco Systems Inc

 

     2,131,439  

3,280

        Motorola Solutions Inc

 

     1,026,935  
      Total Technology Hardware & Equipment

 

     19,821,460  
     

 

 
      Transportation - 0.1%

 

  

3,850

   (b)    Alaska Air Group Inc

 

     150,419  
      Total Transportation

 

     150,419  
     

 

 
      Utilities - 1.5%

 

  

12,920

      Evergy Inc

 

     674,424  

18,200

      Sempra

 

     1,360,086  

20,300

        Xcel Energy Inc

 

     1,256,773  
      Total Utilities

 

     3,291,283  
     

 

 
     

Total Common Stocks

(cost $167,582,749)

 

 

     212,795,418  
     

 

 
Shares          Description (a)      Value  
      EXCHANGE-TRADED FUNDS - 0.5%

 

  

2,285

        iShares Core S&P 500 ETF

 

   $ 1,091,385  
     

Total Exchange-Traded Funds

(cost $961,733)

 

 

     1,091,385  
     

 

 
Type          Description (d)   

Number of

Contracts

    

Notional

  Amount (e)

    

  Exercise

Price

    

Expiration

Date

     Value  
      OPTIONS PURCHASED - 0.0%

 

  

Put

        S&P 500 Index      8      $ 3,360,000      $ 4200        1/19/24      $ 1,020  
     

Total Options Purchased

(cost $3,139)

     8      $ 3,360,000              1,020  
     

 

 
     

Total Long-Term Investments

(cost $168,547,621)

                 213,887,823  
     

 

 

Principal

Amount (000)

         Description (a)                    Coupon      Maturity      Value  
      SHORT-TERM INVESTMENTS - 0.2%

           
      REPURCHASE AGREEMENTS - 0.2%

 

           

$     352

   (f)    Fixed Income Clearing Corp (FICC)

 

              1.600%        1/02/24      $ 352,017  
     

Total Repurchase Agreements

(cost $352,017)

 

 

           352,017  
     

 

 
     

Total Short-Term Investments

(cost $352,017)

 

 

           352,017  
     

 

 
      Total Investments (cost $168,899,638) - 100.3%

 

           214,239,840  
     

 

 
      Other Assets & Liabilities, Net - (0.3)%

 

              (570,606
     

 

 
      Net Assets Applicable to Common Shares - 100%

 

         $ 213,669,234  
     

 

 

 

62


 

Investments in Derivatives

Options Written

 

 Type      Description(d)   

Number of

Contracts

    

Notional

Amount (e)

      

Exercise

Price

      Expiration Date      Value  

  Call

     Russell 2000 Index      (10)        $(2,050,000)          $2,050        1/19/24        $(27,550)  

  Call

     S&P 500 Index      (20)        (9,400,000)          4,700        1/19/24        (202,900)  

  Call

     S&P 500 Index      (30)        (14,250,000)          4,750        1/19/24        (193,500)  

  Call

     S&P 500 Index      (25)        (12,000,000)          4,800        1/19/24        (90,250)  

Total Options Written (premiums received $148,242)

     (85)        $(37,700,000)                             $(514,200)  

 

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

 

(a)

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

(b)

Non-income producing; issuer has not declared an ex-dividend date within the past twelve months.

(c)

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

(d)

Exchange-traded, unless otherwise noted.

(e)

For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Exercise Price by 100.

(f)

Agreement with Fixed Income Clearing Corporation, 1.600% dated 12/29/23 to be repurchased at $352,079 on 1/2/24, collateralized by Government Agency Securities, with coupon rate 2.875% and maturity date 5/15/32, valued at $359,059.

 

ETF

Exchange-Traded Fund

REIT

Real Estate Investment Trust

S&P

Standard & Poor’s

See Notes to Financial Statements

 

63


Statement of Assets and Liabilities

 

December 31, 2023    BXMX      DIAX      SPXX      QQQX      JCE  

ASSETS

              

Long-term investments, at value

   $ 1,445,759,666      $ 595,385,878      $ 295,061,577      $ 1,218,883,938      $ 213,887,823  

Investments purchased with collateral from securities lending, at value

(cost approximates value)

     571,823        910,821        2,933,198        1,542,799        -  

Short-term investments, at value¸

     62,475,000        1,028,999        543,866        1,609,514        352,017  

Cash

     -        -        1,277        -        -  

Cash denominated in foreign currencies^

     553        -        -        -        -  

Receivables:

              

Dividends

     1,346,172        214,025        223,545        211,817        193,384  

Interest

     27,645        137        73        215        47  

Reclaims

     2,213        -        -        329        -  

Deferred offering costs

     -        -        212,709        36,674        -  

Other

     346,848        55,016        63,054        143,573        41,068  

Total assets

     1,510,529,920        597,594,876        299,039,299        1,222,428,859        214,474,339  

LIABILITIES

              

Cash overdraft

     26,432,496        -        -        -        -  

Written options, at value#

     29,372,135        6,326,250        3,161,320        14,640,925        514,200  

Payables:

              

Management fees

     1,028,497        425,531        202,701        842,428        164,657  

Collateral from securities lending

     571,823        910,821        2,933,198        1,542,799        -  

Accrued expenses:

              

Custodian fees

     72,732        36,510        51,588        64,029        36,135  

Investor relations

     180,521        79,241        44,198        158,290        24,461  

Trustees fees

     340,746        59,435        55,468        138,122        43,275  

Professional fees

     12,647        5,971        4,427        10,571        3,748  

Shareholder reporting expenses

     102,507        48,131        28,362        95,804        18,510  

Shareholder servicing agent fees

     163        120        124        163        119  

Shelf offering costs

     -        -        170        43,537        -  

Other

     25,052        5,450               67,141         

Total liabilities

     58,139,319        7,897,460        6,481,556        17,603,809        805,105  

Net assets applicable to common shares

   $  1,452,390,601      $  589,697,416      $  292,557,743      $  1,204,825,050      $  213,669,234  

Common shares outstanding

     104,165,286        36,366,913        17,960,021        48,826,783        16,084,218  

Net asset value (“NAV”) per common share outstanding

   $ 13.94      $ 16.22      $ 16.29      $ 24.68      $ 13.28  

NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:

                                            

Common shares, $0.01 par value per share

   $ 1,041,653      $ 363,669      $ 179,600      $ 488,268      $ 160,842  

Paid-in capital

     498,649,133        214,192,677        117,730,825        415,539,940        168,468,420  

Total distributable earnings (loss)

     952,699,815        375,141,070        174,647,318        788,796,842        45,039,972  

Net assets applicable to common shares

   $ 1,452,390,601      $ 589,697,416      $ 292,557,743      $ 1,204,825,050      $ 213,669,234  

Authorized shares:

              

Common

     Unlimited         Unlimited         Unlimited         Unlimited         Unlimited  

  Long-term investments, cost

   $ 472,674,465      $ 219,812,715      $ 119,704,179      $ 421,018,027      $ 168,547,621  

¸   Short-term investments, cost

   $ 62,475,000      $ 1,028,999      $ 543,866      $ 1,609,514      $ 352,017  

  Includes securities loaned of

   $ 542,055      $ 880,798      $ 2,853,286      $ 1,418,741      $  

#  Written options, premiums received

   $ 18,134,727      $ 3,539,608      $ 1,769,196      $ 9,030,492      $ 148,242  

^  Cash denominated in foreign currencies, cost

   $ 536      $      $      $      $  

 

See Notes to Financial Statements

 

64


Statement of Operations

 

Year Ended December 31, 2023    BXMX     DIAX     SPXX     QQQX     JCE  

INVESTMENT INCOME

          

Dividends

   $ 23,489,945     $ 12,606,830     $ 4,650,348     $ 10,128,283     $ 3,080,909  

Interest

     1,195,450       23,619       11,645       46,723       9,097  

Securities lending income, net

     30,070       2,492       33,053       79,910       153  

Tax withheld

     (62,185           (1,000     (7,870      

Total investment income

     24,653,280       12,632,941       4,694,046       10,247,046       3,090,159  

EXPENSES

          

Management fees

     11,720,779       4,938,219       2,324,589       9,375,678       1,873,902  

Shareholder servicing agent fees

     924       610       304       641       320  

Interest expense

     90,928       866       638       14,907       706  

Trustees fees

     50,915       20,844       10,282       40,843       7,333  

Custodian expenses

     101,105       46,533       91,904       88,062       49,093  

Investor relations expenses

     263,604       120,744       68,357       241,936       41,360  

Professional fees

     129,170       85,152       65,825       125,120       66,923  

Shareholder reporting expenses

     146,041       72,809       50,372       144,504       32,659  

Stock exchange listing fees

     31,687       10,968       9,677             7,355  

Other

     246,545       133,397       55,675       328,162       13,902  

Total expenses

     12,781,698       5,430,142       2,677,623       10,359,853       2,093,553  

Net investment income (loss)

     11,871,582       7,202,799       2,016,423       (112,807     996,606  

REALIZED AND UNREALIZED GAIN (LOSS)

          

Realized gain (loss) from:

          

Investments

     71,087,372       44,508,309       25,845,287       171,170,159       5,865,459  

Written options

     (64,188,719     (36,025,816     (17,718,688     (127,634,999     (3,443,165

Foreign currency transactions

     504                          

Net realized gain (loss)

     6,899,157       8,482,493       8,126,599       43,535,160       2,422,294  

Change in unrealized appreciation (depreciation) on:

          

Investments

     249,318,823       31,672,322       39,899,041       297,126,137       37,772,549  

Written options

     (26,901,319     (4,664,741     (2,252,036     (13,045,299     (651,805

Foreign currency translations

     213                          

Net change in unrealized appreciation (depreciation)

     222,417,717       27,007,581       37,647,005       284,080,838       37,120,744  

Net realized and unrealized gain (loss)

     229,316,874       35,490,074       45,773,604       327,615,998       39,543,038  

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

   $    241,188,456     $    42,692,873     $    47,790,027     $    327,503,191     $    40,539,644  

 

See Notes to Financial Statements

 

65


Statement of Changes in Net Assets

 

     BXMX      DIAX
  

 

 

    

 

 

      Year Ended
12/31/23
    Year Ended
12/31/22
         Year Ended
12/31/23
    Year Ended
12/31/22
      

OPERATIONS

             

Net investment income (loss)

   $    11,871,582     $     9,828,657        $     7,202,799     $     7,248,390    

Net realized gain (loss)

     6,899,157       130,874,764          8,482,493       26,781,810    

Net change in unrealized appreciation (depreciation)

     222,417,717       (324,625,247              27,007,581       (61,332,721    

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

     241,188,456       (183,921,826              42,692,873       (27,302,521    

DISTRIBUTIONS TO COMMON SHAREHOLDERS

             

Dividends

     (71,581,067     (98,466,148        (10,665,642     (40,345,882  

Return of Capital

     (26,959,293                    (31,039,934     (1,359,694    

Total distributions

     (98,540,360     (98,466,148              (41,705,576     (41,705,576    

CAPITAL SHARE TRANSACTIONS

             

Common shares:

             

Reinvestments of distributions

     986,113                                 

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

     986,113                                 

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

     143,634,209       (282,387,974              987,297       (69,008,097    

Net assets applicable to common shares at the beginning of the period

     1,308,756,392       1,591,144,366                588,710,119       657,718,216      

Net assets applicable to common shares at the end of the period

   $ 1,452,390,601     $ 1,308,756,392              $ 589,697,416     $ 588,710,119      

 

See Notes to Financial Statements

 

66


 

     SPXX    QQQX
  

 

 

  

 

 

      Year Ended
12/31/23
    Year Ended
12/31/22
       Year Ended
12/31/23
    Year Ended
12/31/22
   

OPERATIONS

             

Net investment income (loss)

   $     2,016,423     $     2,227,889        $ (112,807   $ 403,565    

Net realized gain (loss)

     8,126,599       20,649,764          43,535,160       104,349,228    

Net change in unrealized appreciation (depreciation)

     37,647,005       (70,181,751          284,080,838       (480,763,794    

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

     47,790,027       (47,304,098          327,503,191       (376,011,001    

DISTRIBUTIONS TO COMMON SHAREHOLDERS

             

Dividends

     (13,323,270     (20,756,114        (59,281,400     (93,184,576  

Return of Capital

     (7,797,715     -            (22,507,046     -      

Total distributions

     (21,120,985     (20,756,114          (81,788,446     (93,184,576    

CAPITAL SHARE TRANSACTIONS

             

Common shares:

             

Proceeds from shelf offering, net of offering costs

     (7,370     10,181,265          7,390,865       81,420,803    

Reinvestments of distributions

     135,722       223,858            2,001,708       2,625,827      

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

     128,352       10,405,123            9,392,573       84,046,630      

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

     26,797,394       (57,655,089          255,107,318       (385,148,947    

Net assets applicable to common shares at the beginning of the period

     265,760,349       323,415,438            949,717,732       1,334,866,679      

Net assets applicable to common shares at the end of the period

   $ 292,557,743     $ 265,760,349          $    1,204,825,050     $     949,717,732      

 

See Notes to Financial Statements

 

67


 

    JCE
 

 

 

    

Year Ended

12/31/23

   

Year Ended

12/31/22

      

OPERATIONS

     

Net investment income (loss)

  $ 996,606     $ 1,534,041    

Net realized gain (loss)

    2,422,294       (1,637,397  

Net change in unrealized appreciation (depreciation)

    37,120,744       (47,326,005    

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

    40,539,644       (47,429,361    

DISTRIBUTIONS TO COMMON SHAREHOLDERS

     

Dividends

    (1,294,889     (32,669,229  

Return of Capital

    (19,292,910     (4,773,720    

Total distributions

    (20,587,799     (37,442,949    

CAPITAL SHARE TRANSACTIONS

     

Common shares:

     

Reinvestments of distributions

    149,097       396,514      

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

    149,097       396,514      

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

    20,100,942       (84,475,796    

Net assets applicable to common shares at the beginning of the period

    193,568,292       278,044,088      

Net assets applicable to common shares at the end of the period

  $     213,669,234     $     193,568,292      

 

See Notes to Financial Statements

 

68


 

 

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69


Financial Highlights

 

The following data is for a common share outstanding for each fiscal year end unless otherwise noted:

 

            Investment Operations      Less Distributions to
Common Shareholders
     Common Share  
     

Common

Share

Net Asset
Value,

Beginning

of Period

    

Net

Investment

Income (NII)

(Loss)(a)

    

Net

Realized/

Unrealized

Gain (Loss)

     Total     

From

NII

    

From Net

Realized

Gains

    

Return of

Capital

       Total     

Shelf

Offering

Costs

    

Premium

per

Share

Sold

through

Shelf

Offering

    

Net Asset

Value,

End of

Period

    

Share

Price,

End of

Period

 

BXMX

                                                                                                             

12/31/23

     $12.57        $0.11        $2.20        $2.31        $(0.11)        $(0.57)        $(0.26)          $(0.94)        $–        $–        $13.94        $12.83  

12/31/22

     15.29        0.09        (1.86)        (1.77)        (0.10)        (0.85)                 (0.95)                      12.57        12.65  

12/31/21

     13.75        0.04        2.36        2.40        (0.07)        (0.41)        (0.38)          (0.86)                      15.29        14.65  

12/31/20

     13.68        0.15        0.80        0.95        (0.12)               (0.76)          (0.88)        –(c)        –(c)        13.75        12.88  

12/31/19

     12.61        0.16        1.84        2.00        (0.16)               (0.77)          (0.93)        –(c)        –(c)        13.68        13.75  

DIAX

                                                                                                             

12/31/23

     16.19        0.20        0.98        1.18        (0.20)        (0.10)        (0.85)          (1.15)                      16.22        14.00  

12/31/22

     18.09        0.20        (0.95)        (0.75)        (0.20)        (0.91)        (0.04)          (1.15)                      16.19        15.51  

12/31/21

     16.65        0.17        2.36        2.53        (0.17)        (0.16)        (0.76)          (1.09)                      18.09        17.77  

12/31/20

     18.20        0.22        (0.66)        (0.44)        (0.22)        (0.81)        (0.08)          (1.11)        –(c)        –(c)        16.65        15.20  

12/31/19

     16.90        0.27        2.21        2.48        (0.27)               (0.91)          (1.18)        –(c)        –(c)        18.20        17.66  

SPXX

                                                                                                             

12/31/23

     14.80        0.11        2.56        2.67        (0.12)        (0.63)        (0.43)          (1.18)                      16.29        15.04  

12/31/22

     18.70        0.13        (2.85)        (2.72)        (0.13)        (1.05)                 (1.18)                      14.80        16.12  

12/31/21

     16.17        0.11        3.40        3.51        (0.11)        (0.60)        (0.27)          (0.98)        –(c)        –(c)        18.70        18.60  

12/31/20

     16.27        0.15        0.75        0.90        (0.15)               (0.85)          (1.00)        –(c)        –(c)        16.17        15.24  

12/31/19

     14.42        0.17        2.74        2.91        (0.18)               (0.88)          (1.06)        –(c)        –(c)        16.27        16.47  

QQQX

                                                                                                             

12/31/23

     19.61        –(c)        6.74        6.74               (1.22)        (0.46)          (1.68)        –(c)        0.01        24.68        23.15  

12/31/22

     29.63        0.01        (8.06)        (8.05)        (0.01)        (1.96)                 (1.97)                      19.61        20.43  

12/31/21

     26.32        (0.06)        5.12        5.06               (0.78)        (1.01)          (1.79)        –(c)        0.04        29.63        30.65  

12/31/20

     24.12        0.04        3.70        3.74        (0.01)               (1.55)          (1.56)        –(c)        0.02        26.32        26.01  

12/31/19

     20.27        0.06        5.33        5.39        (0.05)               (1.51)          (1.56)        –(c)        0.02        24.12        24.05  

 

(a)

Based on average shares outstanding.

 

70


 

                     

Common Share Supplemental Data/

Ratios Applicable to Common Shares

 
   

Common Share

Total Returns

               

Ratios to Average

Net Assets

          
    

Based

on

Net Asset

Value(b)

      

Based

on

Share

Price(b)

      

Net

Assets,

End of
Period (000)

       Expenses       

Net

Investment

Income
(Loss)

      

Portfolio

Turnover

Rate

 
                                                           
          18.84%          9.05%        $ 1,452,391          0.91%          0.85%          16%  
    (11.63)           (7.09)           1,308,756          0.89          0.70          6  
    17.80          20.75          1,591,144          0.89          0.31          7  
    7.92          1.16          1,431,454          0.91          1.14          22  
      16.16          22.08          1,422,672          0.91          1.18          4  
                                                                 
    7.67          (2.18)           589,697          0.94          1.25          12  
    (3.92)           (5.93)           588,710          0.93          1.20          15  
    15.45          24.60          657,718          0.92          0.96          8  
    (1.49)           (6.73)           605,601          0.94          1.40          27  
      14.94          17.07          661,255          0.95          1.49          6  
                                                                  
    18.45          0.75          292,558          0.94          0.71          21  
    (14.70)           (6.79)           265,760          0.92          0.78          32  
    22.15          29.03          323,415          0.90          0.61          26  
    6.60          (0.24)           277,949          0.93          1.03          20  
      20.62          25.40          275,280          0.99          1.11          8  
                                                                  
    35.03          21.78          1,204,825          0.92          (0.01)           35  
    (27.68)           (27.25)           949,718          0.92          0.04          36  
    19.85          25.39          1,334,867          0.90          (0.21)           32  
    16.61          15.66          1,092,308          0.94          0.15          20  
      27.33          28.73          951,945          0.91          0.25          11  

 

(b)

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

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

(c)

Value rounded to zero.

 

See Notes to Financial Statements

 

71


Financial Highlights (continuted)

 

The following data is for a common share outstanding for each fiscal year end unless otherwise noted:

 

                Investment Operations        Less Distributions to
Common Shareholders
     Common Share  
       

Common

Share

Net Asset

Value,

Beginning

of Period

      

Net

Investment

Income (NII)

(Loss)(a)

      

Net

Realized/

Unrealized

Gain (Loss)

       Total       

From

NII

    

From Net

Realized

Gains

     Return of
Capital
     Total     

Premium

per

Share

Sold

through

Shelf

Offering

      

Net Asset

Value,

End of
Period

      

Share

Price,

End of

Period

 

JCE

                                                                                                                

12/31/23

       $12.04          $0.06          $2.46          $2.52          $(0.06      $(0.02      $(1.20      $(1.28      $–          $13.28          $13.55  

12/31/22

       17.33          0.10          (3.06)          (2.96)          (0.10      (1.93      (0.30      (2.33               12.04          13.54  

12/31/21

       15.21          0.01          3.95          3.96          (0.07      (1.77             (1.84               17.33          18.58  

12/31/20

       15.04          0.14          0.96          1.10          (0.10      (0.83             (0.93      –(c)          15.21          14.07  

12/31/19

       12.68          0.09          3.27          3.36          (0.10      (0.55      (0.35      (1.00               15.04          14.62  

 

(a)

Based on average shares outstanding.

(b)

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

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

 

72


 

                    

Common Share Supplemental Data/

Ratios Applicable to Common Shares

 
      

Common Share

Total Returns

             

Ratios to Average

Net Assets

      
       

Based

on

Net Asset

Value(b)

    

Based

on

Share

Price(b)

    

Net

Assets,

End of

Period (000)

       Expenses     

Net

Investment

Income

(Loss)

    

Portfolio

Turnover

Rate

                                                                   
       21.68        10.60        $213,669          1.02        0.48        105
       (17.30        (14.07        193,568          1.00        0.66        92
       26.91        47.15        278,044          0.98        0.09        104
       8.42        3.62        243,790          1.17  (d)          1.00  (d)          169
         26.96        30.26        241,024          1.01        0.64        35

 

(c)

Value rounded to zero.

(d)

During the period ended December 31, 2020, the Adviser voluntarily reimbursed the Fund for certain expenses incurred in connection with a common shares equity shelf program. As a result, the Expenses and Net Investment Income (Loss) Ratios to Average Net Assets reflect this voluntary expense reimbursement from Adviser. The Expenses and Net Investment Income (Loss) Ratios to Average Net Assets excluding this expense reimbursement from Adviser were as follows:

 

    Ratios to Average Net Assets  
          Expenses     

NII

       (Loss)

 

   

 

12/31/20

     1.23%        0.94%  

 

See Notes to Financial Statements

 

73


Notes to Financial Statements

 

1.

General Information

Fund Information: The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) or Nasdaq National Market (“Nasdaq”) symbols are as follows (each a “Fund” and collectively, the “Funds”):

 

  ·  

Nuveen S&P 500 Buy-Write Income Fund (BXMX)

 

  ·  

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX)

 

  ·  

Nuveen S&P 500 Dynamic Overwrite Fund (SPXX)

 

  ·  

Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)

 

  ·  

Nuveen Core Equity Alpha Fund (JCE)

The Funds are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as diversified (non-diversified for DIAX and QQQX) closed-end management investment companies. Shares of BXMX, DIAX, SPXX and JCE are traded on the NYSE while shares of QQQX are traded on the Nasdaq. BXMX, DIAX, SPXX, QQQX and JCE were organized as Massachusetts business trusts on July 23, 2004, May 20, 2014, November 11, 2004, May 20, 2014 and January 9, 2007, respectively.

Current Fiscal Period: The end of the reporting period for the Funds is December 31, 2023, and the period covered by these Notes to Financial Statements is the fiscal year ended December 31, 2023 (the “current fiscal period”).

Investment Adviser and Sub-Adviser: The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds’ portfolios, manages the Funds’ business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, asset allocation decisions. The Adviser has entered into sub-advisory agreements with Gateway Investment Advisers, LLC (“Gateway”), under which Gateway manages BXMX’s investment portfolio and Nuveen Asset Management, LLC (“NAM”), a subsidiary of the Adviser, under which NAM manages the investment portfolios of DIAX, SPXX, QQQX and JCE.

Developments Regarding the Funds’ Control Share By-Law: On October 5, 2020, the Funds and certain other closed-end funds in the Nuveen fund complex amended their by-laws. Among other things, the amended by-laws included provisions pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares in a Control Share Acquisition (as defined in the by-laws) shall have the same voting rights as other common shareholders only to the extent authorized by the other disinterested shareholders (the “Control Share By-Law”). On January 14, 2021, a shareholder of certain Nuveen closed-end funds filed a civil complaint in the U.S. District Court for the Southern District of New York (the “District Court”) against certain Nuveen funds and their trustees, seeking a declaration that such funds’ Control Share By-Laws violate the 1940 Act, rescission of such fund’s Control Share By-Laws and a permanent injunction against such funds applying the Control Share By-Laws. On February 18, 2022, the District Court granted judgment in favor of the plaintiff’s claim for rescission of such funds’ Control Share By-Laws and the plaintiff’s declaratory judgment claim, and declared that such funds’ Control Share By-Laws violate Section 18(i) of the 1940 Act. Following review of the judgment of the District Court, on February 22, 2022, the Funds’ Board of Trustees (the “Board”) amended the Fund’s by-laws to provide that the Funds’ Control Share By-Law shall be of no force and effect for so long as the judgment of the District Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or otherwise nullified, the Fund’s Control Share By-Law will be automatically reinstated and apply to any beneficial owner of common shares acquired in a Control Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement, for the duration of the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of the District Court. On February 25, 2022, the Board and the Funds appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit. On November 30, 2023, the U.S. Court of Appeals for the Second Circuit upheld the opinion of the District Court.

 

2.

Significant Accounting Policies

The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. Each Fund is an investment company and follows accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services – Investment Companies. The net asset value (“NAV”) for financial reporting purposes may differ from the NAV for processing security and shareholder transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing security and shareholder transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.

Compensation: The Funds pay no compensation directly to those of its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board 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.

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

 

74


 

Each Fund makes quarterly cash distributions to shareholders of a stated dollar amount per share. Subject to approval and oversight by the Board, 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 attributed to net unrealized gains, if any, is distributed from the Fund’s assets and is treated by shareholders as a non-taxable distribution (“return of capital”) for tax purposes. In the event that total distributions during a calendar year exceed a Fund’s total return on NAV, the difference will reduce NAV per share. If a Fund’s total return on NAV exceeds total distributions during a calendar year, the excess will be reflected as an increase in NAV per share. The final determination of the source and character of all distributions paid by a Fund during the fiscal year is made after the end of the fiscal year and is reflected in the financial statements contained in the annual report as of December 31 each year.

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

The books and records of the Funds are maintained in U.S. dollars. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollars at the end of each day. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions.

Net realized foreign currency gains and losses resulting from changes in exchange rates associated with (i) foreign currency, (ii) investments and (iii) derivatives include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received are recognized as a component of “Net realized gain (loss) from investments and foreign currency transactions” on the Statement of Operations, when applicable.

The unrealized gains and losses resulting from changes in foreign currency exchange rates and changes in foreign exchange rates associated with (i) investments and (ii) other assets and liabilities are recognized as a component of “Change in net unrealized appreciation (depreciation) of foreign currency translations” on the Statement of Operations, when applicable. The unrealized gains and losses resulting from changes in foreign exchange rates associated with investments in derivatives are recognized as a component of the respective derivative’s related “Change in net unrealized appreciation (depreciation)” on the Statement of Operations, when applicable.

Foreign Taxes: The Funds may be subject to foreign taxes on income, gains on investments or foreign currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon the current interpretation of tax rules and regulations that exist in the markets in which the Funds invest.

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

Investments and Investment Income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when information is available. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded at fair value. Interest income is recorded on an accrual basis. Interest income also reflects payment-in-kind (“PIK”) interest and paydown gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Securities lending income is comprised of fees earned from borrowers and income earned on cash collateral investments.

Netting Agreements: In the ordinary course of business, the Funds may enter into transactions subject to enforceable International Swaps and Derivatives Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, each Fund manages its cash collateral and securities collateral on a counterparty basis. With respect to certain counterparties, in accordance with the terms of the netting agreements, collateral posted to the Funds is held in a segregated account by the Funds’ custodian and/or with respect to those amounts which can be sold or repledged, are presented in the Funds’ Portfolio of Investments or Statement of Assets and Liabilities.

The Funds’ investments subject to netting agreements as of the end of the reporting period, if any, are further described later in these Notes to Financials.

New Accounting Pronouncement: In March 2020, FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates, when participating banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December 31,

 

75


Notes to Financial Statements (continued)

 

2022. In December 2022, FASB deferred ASU 2022-04 and issued ASU 2022-06, Reference Rate Reform: Deferral of the Sunset Date of Topic 848, which extends the application of the amendments through December 31, 2024. Management has not yet elected to apply the amendments, is continuously evaluating the potential effect a discontinuation of LIBOR could have on the Funds’ investments and has currently determined that it is unlikely the ASU’s adoption will have a significant impact on the Funds’ financial statements and various filings.

New Accounting Pronouncement: In June 2022, the FASB issued ASU 2022-03 to clarify the guidance in Topic 820, Fair Value Measurement (“Topic 820”). The amendments in ASU 2022-03 affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 (1) clarifies the guidance in Topic 820, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of equity security, (2) amends a related illustrative example, and (3) introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. For public business entities, the amendments in ASU 2022-03 are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. During the current fiscal period, the Funds adopted the new guidance and there was no material impact to the Funds.

 

3.

Investment Valuation and Fair Value Measurements

The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Adviser, subject to oversight of the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy which is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect management’s assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

 

Level 1 –   Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 –   Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
Level 3 –   Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

A description of the valuation techniques applied to the Funds’ major classifications of assets and liabilities measured at fair value follows:

Equity securities and exchange-traded funds listed or traded on a national market or exchange are valued based on their last reported sales price or official closing price of such market or exchange on the valuation date. Foreign equity securities and registered investment companies that trade on a foreign exchange are valued at the last reported sales price or official closing price on the principal exchange where traded, and converted to U.S. dollars at the prevailing rates of exchange on the valuation date. For events affecting the value of foreign securities between the time when the exchange on which they are traded closes and the time when the Funds’ net assets are calculated, such securities will be valued at fair value in accordance with procedures adopted by the Adviser, subject to the oversight of the Board. To the extent these securities are actively traded and no valuation adjustments are applied, they are generally classified as Level 1. When valuation adjustments are applied to the most recent last sales price or official closing price, these securities are generally classified as Level 2.

Prices of certain American Depositary Receipts (“ADR”) held by the Funds that trade in the United States are valued based on the last traded price, official closing price, or an evaluated price provided by the pricing services and are generally classified as Level 1 or 2.

Purchased and written options traded and listed on a national market or exchange are valued at the mean of the closing bid and asked prices and are generally classified as Level 1.

Over-the-counter (“OTC”) options are marked-to-market daily based upon a price supplied by a pricing service. OTC options are generally classified as Level 2.

Investments in investment companies are valued at their respective NAVs or share price on the valuation date and are generally classified as Level 1.

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

For any portfolio security or derivative for which market quotations are not readily available or for which the Adviser deems the valuations derived using the valuation procedures described above not to reflect fair value, the Adviser will determine a fair value in good faith using alternative procedures approved by the Adviser, subject to the oversight of the Board. As a general principle, the fair value of a security is the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. To the extent the inputs are observable and timely, the values would be classified as Level 2; otherwise they would be classified as Level 3.

 

76


 

The following table summarizes the market value of the Funds’ investments as of the end of the reporting period, based on the inputs used to value them:

 

BXMX   Level 1     Level 2     Level 3     Total  

 

 

Long-Term Investments:

       

Common Stocks

  $    1,445,759,666     $         –     $         –     $    1,445,759,666  

Investments Purchased with Collateral from Securities Lending

    571,823                   571,823  

Short-Term Investments:

       

Repurchase Agreements

          62,475,000             62,475,000  

Investments in Derivatives:

       

Options Written

    (29,372,135)                   (29,372,135)  

 

 

Total

  $ 1,416,959,354     $ 62,475,000     $     $ 1,479,434,354  

 

 
DIAX   Level 1     Level 2     Level 3     Total  

 

 

Long-Term Investments:

       

Common Stocks

  $ 587,934,534     $     $     $ 587,934,534  

Exchange-Traded Funds

    7,446,881                   7,446,881  

Options Purchased

    4,463                   4,463  

Investments Purchased with Collateral from Securities Lending

    910,821                   910,821  

Short-Term Investments:

       

Repurchase Agreements

          1,028,999             1,028,999  

Investments in Derivatives:

       

Options Written

    (6,326,250)                   (6,326,250)  

 

 

Total

  $ 589,970,449     $ 1,028,999     $     $ 590,999,448  

 

 
SPXX   Level 1     Level 2     Level 3     Total  

 

 

Long-Term Investments:

       

Common Stocks

  $ 290,715,238     $     $     $ 290,715,238  

Exchange-Traded Funds

    4,344,171                   4,344,171  

Options Purchased

    2,168                   2,168  

Investments Purchased with Collateral from Securities Lending

    2,933,198                   2,933,198  

Short-Term Investments:

       

Repurchase Agreements

          543,866             543,866  

Investments in Derivatives:

       

Options Written

    (3,161,320)                   (3,161,320)  

 

 

Total

  $ 294,833,455     $ 543,866     $     $ 295,377,321  

 

 
QQQX   Level 1     Level 2     Level 3     Total  

 

 

Long-Term Investments:

       

Common Stocks

  $ 1,205,116,253     $     $     $ 1,205,116,253  

Exchange-Traded Funds

    13,758,760                   13,758,760  

Options Purchased

    8,925                   8,925  

Investments Purchased with Collateral from Securities Lending

    1,542,799                   1,542,799  

Short-Term Investments:

       

Repurchase Agreements

          1,609,514             1,609,514  

Investments in Derivatives:

       

Options Written

    (14,640,925)                   (14,640,925)  

 

 

Total

  $ 1,205,785,812     $ 1,609,514     $     $ 1,207,395,326  

 

 

 

77


Notes to Financial Statements (continued)

 

JCE   Level 1     Level 2     Level 3     Total  

 

 

Long-Term Investments:

       

Common Stocks

  $    212,795,418     $         –     $         –     $    212,795,418  

Exchange-Traded Funds

    1,091,385                   1,091,385  

Options Purchased

    1,020                   1,020  

Short-Term Investments:

       

Repurchase Agreements

          352,017             352,017  

Investments in Derivatives:

       

Options Written

    (514,200)                   (514,200)  

 

 

Total

  $ 213,373,623     $ 352,017     $     $ 213,725,640  

 

 

 

4.

Portfolio Securities

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

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

 

Fund    Counterparty   

Short-term

Investments, at

Value

    

Collateral

Pledged (From)

Counterparty

 

 

 

BXMX

   Fixed Income Clearing Corporation    $   62,475,000       $   63,724,519  

DIAX

   Fixed Income Clearing Corporation      1,028,999        1,049,636  

SPXX

   Fixed Income Clearing Corporation      543,866        554,747  

QQQX

   Fixed Income Clearing Corporation      1,609,514        1,641,759  

JCE

   Fixed Income Clearing Corporation      352,017        359,059  

 

 

Securities Lending: Each Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions in order to generate additional income. When loaning securities, a Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The loans are continuous, can be recalled at any time, and have no set maturity. The Funds’ custodian, State Street Bank and Trust Company, serves as the securities lending agent (the “Agent”).

When a Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to an amount not less than 100% of the market value of the loaned securities. The actual percentage of the cash collateral will vary depending upon the asset type of the loaned securities. Collateral for the loaned securities is invested in a government money market vehicle maintained by the Agent, which is subject to the requirements of Rule 2a-7 under the 1940 Act. The value of the loaned securities and the liability to return the cash collateral received are recognized on the Statement of Assets and Liabilities. If the market value of the loaned securities increases, the borrower must furnish additional collateral to the Fund, which is also recognized on the Statement of Assets and Liabilities. Securities out on loan are subject to termination at any time at the option of the borrower or the Fund. Upon termination, the borrower is required to return to the Fund securities identical to the securities loaned. During the term of the loan, the Fund bears the market risk with respect to the investment of collateral and the risk that the Agent may default on its contractual obligations to the Fund. The Agent bears the risk that the borrower may default on its obligation to return the loaned securities as the Agent is contractually obligated to indemnify the Fund if at the time of a default by a borrower some or all of the loan securities have not been returned.

Securities lending income recognized by a Fund consists of earnings on invested collateral and lending fees, net of any rebates to the borrower and compensation to the Agent. Such income is recognized on the Statement of Operations.

As of the end of the current reporting period, the total value of the loaned securities and the total value of collateral received were as follows:

 

Fund    Asset Class out on Loan   

Long-Term

Investments, at

Value

    

Total Collateral

Received

 

 

 

BXMX

   Common Stocks      $ 542,055        $ 571,823  

DIAX

   Exchange-Traded Funds      880,798        910,821  

 

 

SPXX

   Common Stocks      223,228        239,057  
   Exchange-Traded Funds      2,630,058        2,694,141  

 

 

Total

        2,853,286        2,933,198  

 

 

QQQX

   Common Stocks      1,418,741        1,542,799  

 

 

Purchases and Sales: Long-term purchases and sales during the current fiscal period were as follows:

 

78


 

Fund   

Non-U.S.

   Government

Purchases

    

Non-U.S.

    Government

Sales

 

 

 

BXMX

   $ 220,300,183      $ 400,469,923   

DIAX

     70,893,666        143,885,185   

SPXX

     59,096,670        96,534,872   

QQQX

     393,086,804        597,299,756   

JCE

     217,072,222        239,532,012   

 

 

The Funds may purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued until settlement date. Any securities so purchased are subject to market fluctuation during this period. If a Fund has outstanding when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized on the Statement of Assets and Liabilities.

 

5.

Derivative Investments

Each Fund is authorized to invest in certain derivative instruments. As defined by U.S. GAAP, a derivative is a financial instrument whose value is derived from an underlying security price, foreign exchange rate, interest rate, index of prices or rates, or other variables. Investments in derivatives as of the end of and/or during the current fiscal period, if any, are included within the Statement of Assets and Liabilities and the Statement of Operations, respectively.

Options Transactions: The Funds may purchase (buy) or write (sell) put and call options on specific securities (including groups or “baskets” of specific securities), interest rates, stock indices and/or bond indices (each a “financial instrument”). Options can be settled either directly with the counterparty (over the counter) or through a central clearing house (exchange traded). Call and put options give the holder the right, in return for a premium paid, to purchase or sell, respectively, a financial instrument at a specified exercise price at any time during the period of the option.

When a Fund purchases an option, an amount equal to the premium paid (the premium plus commission) is recognized as an asset on the Statement of Asset and Liabilities. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recognized as a liability on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option until the option is exercised or expires or the Fund enters into a closing purchase transaction. The changes in the value of options purchased and/or written during the fiscal period are recognized as in unrealized appreciation (depreciation) on the Statement of Operations. When an option expires, the premiums received or paid are recognized as realized gains or losses on the Statement of Operations. When an option is exercised or a closing purchase transaction is entered into, the difference between the premium and the amount received or paid in a closing transaction is recognized as a realized gain or loss on the Statement of Operations.

The market risk associated with purchasing options is limited to the premium paid. The Fund, as writer of an option, has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.

During the current fiscal period, BXMX wrote call options on equity indices as per its stated strategy, with the notional amount of these options averaging 99% of the Fund’s assets.

During the current fiscal period, DIAX, SPXX, QQQX and JCE, each wrote call options on equity indices as per its stated dynamic overwriting strategy with the notional amounts of these options ranging from approximately 35-75% of each Fund’s assets. DIAX, SPXX and QQQX also purchased put and call options as part of their overwrite strategy.

The average notional amount of outstanding options purchased during the current fiscal period, was as follows:

 

Fund   

Average Notional Amount of Purchased

Options Contracts Outstanding*

 

 

 

DIAX

     $8,979,000  

SPXX

     2,115,000  

QQQX

     7,269,000  

JCE

     743,900  

 

 

 

*

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

The average notional amount of outstanding options written during the current fiscal period, was as follows:

 

79


Notes to Financial Statements (continued)

 

Fund   

Average Notional Amount of Written Options

Contracts Outstanding*

 

BXMX

   $(1,392,310,500)

DIAX

   (288,541,000)

SPXX

   (138,619,500)

QQQX

   (551,705,200)

JCE

   (56,520,000)

 

 

*

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

As of the end of the reporting period, the following Funds have invested in derivative contracts which are reflected in the Statement of Assets and Liabilities as follows:

 

          Asset Derivatives         Liability Derivatives
     

 

     

 

Derivative Instrument    Risk Exposure     Location           Value         Location        Value

 

     

 

BXMX

                 

Options Written

   Equity       $–       Options written, at
value
   $  (29,372,135)

 

DIAX

                 

Options Purchased

   Equity    Long–term
investments, at
value
   4,463         

Options Written

   Equity             Options written, at
value
   (6,326,250)

 

SPXX

                 

Options Purchased

   Equity    Long–term
investments, at
value
   2,168         

Options Written

   Equity             Options written, at
value
   (3,161,320)

 

QQQX

                 

Options Purchased

   Equity    Long–term
investments, at
value
   8,925         

Options Written

   Equity             Options written, at
value
   (14,640,925)

 

JCE

                 

Options Purchased

   Equity    Long–term
investments, at
value
   1,020         

Options Written

   Equity             Options written, at
value
   (514,200)

 

During the current fiscal period, the effect of derivative contracts on the Funds’ Statement of Operations was as follows:

 

80


 

Derivative Instrument    Risk Exposure                   

Net Realized Gain

(Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

 

 

 

BXMX

           

Written options

   Equity         $(64,188,719)        $(26,901,319)  

 

 

DIAX

           

Purchased options

   Equity         (83,569)        8,193  

Written options

   Equity         (36,025,816)        (4,664,741)  

 

 

SPXX

           

Purchased options

   Equity         (39,347)        4,229  

Written options

   Equity         (17,718,688)        (2,252,036)  

 

 

QQQX

           

Purchased options

   Equity         (78,401)        (1,077)  

Written options

   Equity         (127,634,999)        (13,045,299)  

 

 

JCE

           

Purchased options

   Equity                (2,119)  

Written options

   Equity         (3,443,165)        (651,805)  

 

 

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

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

 

6.

Fund Shares

Common Shares Equity Shelf Programs and Offering Costs: The following Funds have filed a registration statement with the Securities and Exchange Commission (“SEC”) authorizing each Fund to issue additional common shares through one or more equity shelf programs (“Shelf Offering”), which became effective with the SEC during prior fiscal periods.

Under this Shelf Offering, the Funds, subject to market conditions, may raise additional equity capital by issuing additional common shares from time to time in varying amounts and by different offering methods at a net price at or above each Fund’s NAV per common share. In the event the Fund’s Shelf Offering registration statement is no longer current, the Fund may not issue additional common shares until a post-effective amendment to the registration statement has been filed with the SEC.

Additional authorized common shares, common shares sold and offering proceeds, net of offering costs under each Fund’s Shelf Offering during the Funds’ current and prior fiscal period were as follows:

 

     SPXX      QQQX  
  

 

 

 
    

  Year Ended  

12/31/23

    

 Year Ended 

12/31/22

    

 Year Ended 

12/31/23

    

 Year Ended 

12/31/22

 

 

 

Maximum aggregate offering

     $4,993,317        $4,993,317        Unlimited        $–  

Common shares sold

            639,749        297,524        3,280,964  

Offering proceeds, net of offering costs

     $(7,370)        $10,181,265        $7,390,865        $81,420,803  

 

 

 

81


Notes to Financial Statements (continued)

 

Costs incurred by the Funds in connection with their initial shelf registrations are recorded as a prepaid expense and recognized as “Deferred offering costs” on the Statement of Assets and Liabilities. These costs are amortized pro rata as common shares are sold and are recognized as a component of “Proceeds from shelf offering, net of offering costs” on the Statement of Changes in Net Assets. Any deferred offering costs remaining after the effectiveness of the initial shelf registration will be expensed. Costs incurred by the Fund to keep the shelf registration current are expensed as incurred and recognized as a component of “Other expenses” on the Statement of Operations.

Common Share Transactions: Transactions in common shares for the Funds during the Funds’ current and prior fiscal period, where applicable, were as follows:

 

 

     BXMX      SPXX  
  

 

 

    

 

 

 
    

Year Ended

12/31/23

     Year Ended
12/31/22
    

Year Ended

12/31/23

     Year Ended
12/31/22
 

 

 

Common Shares:

           

Sold through shelf offering

                          639,749   

Issued to shareholders due to reinvestment of distributions

     78,449               8,862        14,838   

 

 

Total

     78,449               8,862        654,587   

 

 

Weighted average common share:

           

Premium to NAV per shelf offering common share sold

     –%        –%        –%        1.77%   

 

 
     QQQX      JCE  
  

 

 

    

 

 

 
     Year Ended
12/31/23
     Year Ended
12/31/22
     Year Ended
12/31/23
     Year Ended
12/31/22
 

 

 

Common Shares:

           

Sold through shelf offering

     297,524        3,280,964               –   

Issued to shareholders due to reinvestment of distributions

     91,486        109,290        11,591        25,025   

 

 

Total

     389,010        3,390,254        11,591        25,025   

 

 

Weighted average common share:

           

Premium to NAV per shelf offering common share sold

     3.84%        2.37%        –%        –%   

 

 

 

7.

Income Tax Information

Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.

Each Fund files income tax returns in U.S. federal and applicable state and local jurisdictions. A Fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after being filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed each Fund’s tax positions taken for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements.

Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing gains and losses on investment transactions. Temporary differences do not require reclassification. As of year end, permanent differences that resulted in reclassifications among the components of net assets relate primarily to distribution reallocations, foreign currency transactions, investments in partnerships, net operating losses, and return of capital and long–term capital gain distributions received from portfolio investments. Temporary and permanent differences have no impact on a Fund’s net assets.

As of year end, the aggregate cost and the net unrealized appreciation/(depreciation) of all investments for federal income tax purposes were as follows:

 

Fund    Tax Cost     

  Gross Unrealized

Appreciation

    

Gross

Unrealized

   (Depreciation)

   

Net

Unrealized

Appreciation

(Depreciation)

 

BXMX

   $    506,844,858      $ 976,451,217      $ (3,861,721   $      972,589,496  

DIAX

     215,858,378        380,448,871        (5,307,801     375,141,070  

SPXX

     120,730,003        178,308,645        (3,661,327     174,647,318  

QQQX

     418,598,485        801,271,236        (12,474,394     788,796,842  

JCE

     168,644,323        47,574,646        (2,493,329     45,081,317  

 

82


 

For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized income and/or capital gains for tax reporting, if applicable.

As of year end, the components of accumulated earnings on a tax basis were as follows:

 

Fund   

 Undistributed

Ordinary

Income

    

 Undistributed

Long-Term

Capital Gains

    

Unrealized

Appreciation

 (Depreciation)

     Capital Loss
 Carryforwards
   

 Late-Year Loss

Deferrals

    

Other

 Book-to-Tax

Differences

    Total  

BXMX

   $      $      $ 972,589,753      $ (19,889,938   $        –      $     $   952,699,815  

DIAX

                   375,141,070                           375,141,070  

SPXX

                   174,647,318                           174,647,318  

QQQX

                   788,796,842                           788,796,842  

JCE

                   45,081,317                     (41,345     45,039,972  

The tax character of distributions paid was as follows:

 

     12/31/23      12/31/22  
Fund   

Ordinary

Income

    

Long-Term

Capital Gains

    

Return

of Capital

    

Ordinary

Income

    

Long-Term

Capital Gains

    

Return

of Capital

 

BXMX

   $    30,129,140      $    41,451,927      $    26,959,293      $     37,065,603      $   61,400,545      $       –  

DIAX

     7,202,799        3,462,843        31,039,934        17,416,496        22,929,386        1,359,694  

SPXX

     2,037,532        11,285,738        7,797,715        2,223,255        18,532,859         

QQQX

     5,025,099        54,256,301        22,507,046        18,109,243        75,075,333         

JCE

     1,015,219        279,670        19,292,910        27,672,785        4,996,444        4,773,720  

As of year end, the Funds had capital loss carryforwards, which will not expire:

 

Fund    Short-Term      Long-Term      Total  

BXMX

   $    19,889,938      $         –      $     19,889,938  

DIAX

                    

SPXX

                    

QQQX

                    

JCE

                    

As of year end, the Funds utilized the following capital loss carryforwards:

 

Fund    Utilized  

BXMX

   $  

DIAX

      

SPXX

      

QQQX

      

JCE

         1,485,191  

 

8.

Management Fees and Other Transactions with Affiliates

The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. Gateway and NAM are compensated for their services to the Funds from the management fees paid to the Adviser.

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

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

 

83


Notes to Financial Statements (continued)

 

Average Daily Managed Assets*    BXMX        DIAX        SPXX        QQQX        JCE  

For the first $500 million

     0.7000        0.7000        0.6600        0.6900        0.7500

For the next $500 million

     0.6750          0.6750          0.6350          0.6650          0.7250  

For the next $500 million

     0.6500          0.6500          0.6100          0.6400          0.7000  

For the next $500 million

     0.6250          0.6250          0.5850          0.6150          0.6750  

For managed assets over $2 billion

     0.6000          0.6000          0.5600          0.5900          0.6500  

The annual complex-level fee, payable monthly, for each Fund is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by the Funds’ daily managed assets:

 

Complex-Level Eligible Asset Breakpoint Level*    Effective Complex-Level Fee Rate at Breakpoint Level   

$55 billion

     0.2000

$56 billion

     0.1996  

$57 billion

     0.1989  

$60 billion

     0.1961  

$63 billion

     0.1931  

$66 billion

     0.1900  

$71 billion

     0.1851  

$76 billion

     0.1806  

$80 billion

     0.1773  

$91 billion

     0.1691  

$125 billion

     0.1599  

$200 billion

     0.1505  

$250 billion

     0.1469  

$300 billion

     0.1445  

 

*

For the complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen open-end and closed-end funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do not include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. As of December 31, 2023, the complex-level fee for each Fund was as follows:

 

Fund    Complex-Level Fee  

BXMX

     0.1602

DIAX

     0.1602

SPXX

     0.1602

QQQX

     0.1602

JCE

     0.1602

Other Transactions with Affiliates: Each Fund is permitted to purchase or sell securities from or to certain other funds or accounts managed by the Sub-Adviser (“Affiliated Entity”) under specified conditions outlined in procedures adopted by the Board (“cross-trade”). These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to an Affiliated Entity by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 under the 1940 Act. These transactions are effected at the current market price (as provided by an independent pricing service) without incurring broker commissions.

During the current fiscal period, the Funds engaged in cross-trades pursuant to these procedures as follows:

 

Fund      Purchases          Sales    

   Realized

   Gain (Loss)

 

 

 

BXMX

  $     $     $ –   

DIAX

            –   

 

84


 

Fund      Purchases          Sales    

   Realized

   Gain (Loss)

 

 

 

SPXX

  $ 5,245,386     $ 58,461     $ 34,356   

QQQX

    4,846,802       8,688,318       1,693,080   

JCE

    16,546,672       4,996,295       325,382   

 

9.

Inter-Fund Borrowing and Lending

Inter-Fund Borrowing and Lending: The SEC has granted an exemptive order permitting registered open-end and closed-end Nuveen funds to participate in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting in an unanticipated cash shortfall) (the “Inter-Fund Program”). The closed-end Nuveen funds, including the Funds covered by this shareholder report, will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including, among other things, the requirements that (1) no fund may borrow or lend money through the Inter-Fund Program unless it receives a more favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no fund may borrow on an unsecured basis through the Inter-Fund Program unless the fund’s outstanding borrowings from all sources immediately after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing fund has a secured borrowing outstanding from any other lender, including but not limited to another fund, the inter-fund loan must be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after an inter-fund borrowing would be greater than 10% of its total assets, the fund may borrow through the inter-fund loan on a secured basis only; (4) no fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15% of its net assets at the time of the loan; (5) a fund’s inter-fund loans to any one fund shall not exceed 5% of the lending fund’s net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending fund and may be repaid on any day by a borrowing fund. In addition, a Nuveen fund may participate in the Inter-Fund Program only if and to the extent that such participation is consistent with the fund’s investment objective and investment policies. The Board is responsible for overseeing the Inter-Fund Program.

The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.

During the current reporting period, none of the Funds covered by this shareholder report have entered into any inter-fund loan activity.

 

85


 

 

 

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86


Shareholder Update

(Unaudited)

CURRENT INVESTMENT OBJECTIVES, INVESTMENT POLICIES AND PRINCIPAL RISKS OF THE FUNDS

NUVEEN S&P 500 BUY-WRITE INCOME FUND (BXMX)

Investment Objective

The Fund’s investment objective is to seek attractive total return with less volatility than the S&P 500 Index.

Investment Policies

Under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in a diversified equity portfolio made up of securities comprising the S&P 500 Index (or securities that have economic characteristics that are similar to those securities comprising the S&P 500 Index) that seeks to substantially replicate price movements of the S&P 500 Index and is designed to support the Fund’s option strategy.

Under normal circumstances, the Fund expects to invest substantially all (at least 90%) of its Managed Assets (as defined below) in its equity portfolio or otherwise in pursuit of its investment objective.

The Fund employs a constant “buy-write” option strategy whereby the Fund’s sub-adviser sells (writes) index call options on a continuous basis on substantially the full value of the Fund’s equity portfolio. The Fund targets a constant overwrite level (i.e., the ratio of the notional value of index call options sold by the Fund to the market value of the Fund’s equity portfolio) of 100% of the value of its equity portfolio. The Fund’s use of a buy-write strategy, which is also commonly referred to as a buy-write income strategy, is intended to produce cash flow for the Fund in the form of premiums on the options written. In exchange for this cash flow (the income component of a buy-write strategy), the Fund’s total return may be reduced relative to the S&P 500 Index in rising markets and may be enhanced relative to the S&P 500 Index in flat or declining markets, in each case consistent with the Fund’s investment objective to seek attractive total return with less volatility than the S&P 500 Index.

“Assets” means net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal market conditions:

 

  ·  

As a fundamental policy, the Fund may not concentrate (i.e., invest more than 25% of its total assets) in securities of issuers in any one industry, except that the Fund will be concentrated in an industry or group of industries to the extent the S&P 500 Index is concentrated in an industry or group of industries (Industry Concentration Policy).

 

  ·  

The Fund may invest no more than 10% of its Managed Assets in short-term, high quality fixed-income securities.

 

  ·  

The Fund may invest up to 20% of its Managed Assets in securities of non-U.S. issuers that are U.S. dollar denominated, which may include securities of issuers located, or conducting their business, in emerging market countries.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, with respect to the Fund’s policy of investing at least 80% of its Assets in its equity portfolio, such policy may not be changed without 60 days’ prior written notice to Common Shareholders.

However, the Fund’s fundamental Industry Concentration Policy may not be changed without the approval of the holders of a majority of the outstanding common shares. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

Portfolio Contents

The Fund expects to invest in a portfolio of individual common stocks designed to replicate the risk and return profile, and thereby substantially replicate price movements, of the S&P 500 Index. The Fund may also invest in other investment companies, including exchange-traded fund (“ETFs”), that provide similar exposure to individual common stocks consistent with the Fund’s investment objective. Common stock generally represents an equity ownership interest in an issuer, without preference over and with a lower priority than any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks usually carry voting rights and earn dividends. Common stocks fluctuate in price in response to many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity, as such the company may or may not pay dividends. Dividends on common stocks are declared at the discretion of the company’s board. In addition, common stock generally has the greatest appreciation and depreciation potential because increases and decreases in earnings are usually reflected in a company’s stock price.

In carrying out its option strategy, the Fund may write index call options on the S&P 500 Index and other broad-based indices and may, if the Fund’s sub-adviser deems conditions appropriate, write call options on a variety of other equity market indices. As the seller of an index call option, the Fund receives a premium from the purchaser. The purchaser of the index call option has the right to any appreciation in the value of the index over

 

87


Shareholder Update (Unaudited) (continued)

 

the exercise price upon the exercise of the call option or the expiration date. If, at expiration, the purchaser exercises the index option sold by the Fund, the Fund will pay the purchaser the difference between the cash value of the index and the exercise price of the index option. The premium, the exercise price and the market value of the index determine the gain or loss realized by the Fund as the seller of the index call option.

The Fund may invest in U.S. Government securities. U.S. Government securities include (1) U.S. Treasury obligations, which differ in their interest rates, maturities and times of issuance: U.S. Treasury bills (maturities of one year or less), U.S. Treasury notes (maturities of one year to ten years) and U.S. Treasury bonds (generally maturities of greater than ten years) and (2) obligations issued or guaranteed by U.S. Government agencies and instrumentalities that are supported by any of the following: (i) the full faith and credit of the U.S. Treasury, (ii) the right of the issuer to borrow an amount limited to a specific line of credit from the U.S. Treasury, (iii) discretionary authority of the U.S. Government to purchase certain obligations of the U.S. Government agency or instrumentality or (iv) the credit of the agency or instrumentality.

The Fund also may invest in any other security or agreement collateralized or otherwise secured by U.S. Government securities. Agencies and instrumentalities of the U.S. Government include but are not limited to: Federal Land Banks, Federal Financing Banks, Banks for Cooperatives, Federal Intermediate Credit Banks, Farm Credit Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, Student Loan Marketing Association, U.S. Postal Service, Small Business Administration, Tennessee Valley Authority and any other enterprise established or sponsored by the U.S. Government. Because the U.S. Government generally is not obligated to provide support to its instrumentalities, the Fund will invest in obligations issued by these instrumentalities only if its sub-adviser determines that the credit risk with respect to such obligations is minimal.

The Fund may invest in commercial paper. Commercial paper represents short-term unsecured promissory notes issued in bearer form by corporations such as banks or bank holding companies and finance companies.

The Fund may enter into repurchase agreements (the purchase of a security coupled with an agreement to resell that security at a higher price) with respect to its permitted investments. The Fund’s repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the agreement, and will be marked-to-market daily.

The Fund may invest in securities of non-U.S. issuers that are U.S. dollar-denominated, which may include securities of issuers located, or conducting their business, in emerging market countries. The Fund will classify an issuer of a security as being a U.S. or non-U.S. issuer based on the determination of an unaffiliated, recognized financial data provider. Such determinations are based on a number of criteria, such as the issuer’s country of domicile, the primary exchange on which the security predominately trades, the location from which the majority of the issuer’s revenue comes, and the issuer’s reporting currency. Furthermore, a country is considered to be an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies and the potential for rapid economic growth. The Fund considers a country an emerging market country based on the determination of an international organization, such as the IMF, or an unaffiliated, recognized financial data provider.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objective, including to seek to enhance return, to hedge certain risks of its investments in securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts and options thereon, swaps (with varying terms, including interest rate swaps and credit default swaps), options on interest rates, options on indices, options on swaps, options on currencies and other fixed-income derivative instruments that may have the economic effect of leverage.

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in securities of the types in which the Fund may invest directly, to the extent permitted by the Investment Company Act of 1940 Act, as amended (the “1940 Act”), the rules and regulations issued thereunder and applicable exemptive orders issued by the Securities and Exchange Commission (“SEC”).

The Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions to generate additional income. When the Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to at least 102% of the value of the loaned securities. Under the Fund’s securities lending agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. The Fund, however, will be responsible for the risks associated with the investment of cash collateral. The Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to meet its obligations to the borrower.

Use of Leverage

As a non-fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as the issuance of preferred shares of beneficial interest or debt instruments. However, the Fund may borrow for temporary or emergency purposes and may enter into certain derivatives transactions that have the economic effect of leverage.

 

88


 

Temporary Defensive Periods

During temporary defensive periods the Fund may deviate from its investment objective and policies, and in order to keep the Fund’s cash fully invested, the Fund may invest any portion of its Managed Assets in investment grade debt securities, including obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities. The Fund may not achieve its investment objectives during such periods.

 

89


Shareholder Update (Unaudited) (continued)

 

NUVEEN DOW 30SM DYNAMIC OVERWRITE FUND (DIAX)

Investment Objective

The Fund’s investment objective is to seek attractive total return with less volatility than the Dow Jones Industrial Average (the “DJIA”).

Investment Policies

Under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in the thirty stocks included in the DJIA in approximately the amount such stocks are weighted in the DJIA and/or in other securities or financial instruments with economic characteristics that are similar to the thirty stocks included in the DJIA that are intended to correlate with the price movements of the DJIA.

Under normal circumstances, the Fund expects to invest substantially all (at least 90%) of its Managed Assets (as defined below) in its equity portfolio or otherwise in pursuit of its investment objective.

The Fund’s sub-adviser constructs the Fund’s equity portfolio by purchasing the common stock of each company included in the DJIA in approximately the amounts stocks are weighted in the DJIA. The Fund will periodically rebalance its holdings of DJIA stocks in order to more closely approximate each stock’s weighting in the DJIA. The Fund’s sub-adviser will consider the tax consequences of certain transactions within the Fund’s equity portfolio and intends to manage the portfolio in a tax-efficient manner by taking, for example, capital losses when possible to offset realized capital gains. The Fund’s sub-adviser will rebalance and adjust the Fund’s equity portfolio as necessary for tracking and tax management purposes.

The Fund employs a dynamic options “overwrite” strategy whereby the Fund’s sub-adviser sells (writes) call options on a varying percentage of the market value of the Fund’s equity portfolio based on its market outlook. Pursuant to this option strategy, under normal circumstances, the Fund sells (writes) index call options, call options on custom baskets of securities, and call options on individual securities. In addition to a primary emphasis on writing call options to reduce downside risk and volatility of the Fund’s equity portfolio, the Fund’s option strategy as a secondary emphasis seeks additional return opportunities by capitalizing on inefficiencies in the options market through a variety of means including the use of call spreads, purchasing call options, and selling put options.

The Fund targets an overwrite level (i.e., the ratio of the notional value of call options sold by the Fund to the market value of the Fund’s equity portfolio) of 55% of the value of its equity portfolio over time, and the overwrite level will vary, based on market conditions, between 35% to 75% of the value of its equity portfolio.

“Assets” means net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal market conditions:

 

  ·  

As a fundamental policy, the Fund may not concentrate (i.e., invest more than 25% of its total assets) in securities of issuers in any one industry, except that if 25% or more of the securities in the DIJA are issued by companies in one industry, the Fund will concentrate in that industry unless the Fund would need to avoid concentration in order to implement its investment strategy as it relates to avoiding the adverse tax treatment associated with straddle positions (Industry Concentration Policy).

 

  ·  

The Fund may invest no more than 10% of its Managed Assets in short-term, high quality fixed-income securities.

 

  ·  

The Fund may invest up to 20% of its Managed Assets in securities of non-U.S. issuers that are U.S. dollar denominated, which may include securities of issuers located, or conducting their business, in emerging market countries.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, with respect to the Fund’s policy of investing at least 80% of its Assets in its equity portfolio, such policy may not be changed without 60 days’ prior written notice to shareholders.

However, the Fund’s fundamental Industry Concentration Policy may not be changed without the approval of the holders of a majority of the outstanding common shares. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

Portfolio Contents

The Fund will invest in the thirty common stocks included in the DJIA in approximately the amount such stocks are weighted in the DJIA. The Fund may also invest in other securities or financial instruments with economic characteristics that are similar to the thirty stocks included in the DJIA that are intended to correlate with the price movements of the DJIA. The Fund may also invest in other investment companies, including ETFs,

 

90


 

that provide similar exposure to individual common stocks consistent with the Fund’s investment objective. Common stock generally represents an equity ownership interest in an issuer, without preference over and with a lower priority than any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks usually carry voting rights and earn dividends. Common stocks fluctuate in price in response to many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity, as such the company may or may not pay dividends. Dividends on common stocks are declared at the discretion of the company’s board. In addition, common stock generally has the greatest appreciation and depreciation potential because increases and decreases in earnings are usually reflected in a company’s stock price.

As part of its option strategy, the Fund sells (writes) index call options, call options on custom baskets of securities, and covered or uncovered call options on individual securities. An option contract is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the reference instrument underlying the option (or the cash value of the index) at a specified exercise price at any time during the term of the option. The writer of an option on a security has the obligation upon exercise of the option to deliver the reference instrument (or the cash) upon payment of the exercise price or to pay the exercise price upon delivery of the reference instrument (or the cash). Upon exercise of an index option, the writer of an option on an index is obligated to pay the difference between the cash value of the index and the exercise price multiplied by the specified multiplier for the index option. Options may be “covered,” meaning that the party required to deliver the reference instrument if the option is exercised owns that instrument (or has set aside sufficient assets to meet its obligation to deliver the instrument). Options may be listed on an exchange or traded in the over-the-counter (“OTC”) market. In general, exchange-traded options have standardized exercise prices and expiration dates and may require the parties to post margin against their obligations, and the performance of the parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation. OTC options have more flexible terms negotiated between the buyer and the seller but are subject to counterparty risk. The ability of the Fund to transact business with any one or any number of counterparties, the lack of any independent evaluation of the counterparties or their financial capabilities, and the absence of a regulated market to facilitate settlement, may increase the potential for losses to the Fund. OTC options also involve greater liquidity risk. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes limited.

In carrying out its option strategy, the Fund may write index call options on the DJIA and other broad-based indices and may, if the Fund’s sub-adviser deems conditions appropriate, write call options on a variety of other equity market indices. As the seller of an index call option, the Fund receives a premium from the purchaser. The purchaser of the index call option has the right to any appreciation in the value of the index over the exercise price upon the exercise of the call option or the expiration date. If, at expiration, the purchaser exercises the index option sold by the Fund, the Fund will pay the purchaser the difference between the cash value of the index and the exercise price of the index option. The premium, the exercise price and the market value of the index determine the gain or loss realized by the Fund as the seller of the index call option.

The Fund may also write call options on custom baskets of securities. A custom basket call option is an OTC option with a counterparty whose value is linked to the market value of a portfolio of underlying securities and is collateralized by a portion of the Fund’s equity portfolio. In designing the custom basket call options, the Fund’s sub-adviser will primarily select assets not held by the Fund. In order to minimize the difference between the returns of the underlying securities in the custom basket (commonly referred to as a tracking error), the Fund’s sub-adviser will use optimization calculations when selecting the individual securities for inclusion in the custom basket.

The Fund may also write single name call options, both covered and “naked” or uncovered, on individual stocks. A call option written by the Fund on an individual security is “covered” if the Fund owns the security underlying the call or has an absolute and immediate right to acquire that security without additional cash consideration. The Fund, in effect, sells the potential appreciation in the value of the security subject to the call option in exchange for the premium. The Fund may execute a closing purchase transaction with respect to an option it has sold and sell another option (with either a different exercise price or expiration date or both). The Fund’s objective in entering into such a closing transaction will be to optimize net index option premiums. The cost of a closing transaction may reduce the net option premiums realized from the sale of the option. This reduction could be offset, at least in part, by appreciation in the value of the underlying security held in the Fund’s equity portfolio, and by the opportunity to realize additional premium income from selling a new option.

The Fund may also purchase call options. A call option entitles the purchaser, in return for the premium paid, to purchase specified securities at a specified price during the option period. Because the premium paid for a call option is typically a small fraction of the price of the underlying security, a given amount of funds will purchase call options covering a much larger quantity of such security than could be purchased directly. By purchasing call options, the Fund could benefit from any significant increase in the price of the underlying security to a greater extent than if it had invested the same amount in the security directly.

The Fund may also use call spreads as part of its option strategy. A call spread involves the sale of a call option and the corresponding purchase of a call option on the same underlying instrument with the same expiration date but with different exercise prices. The call spreads utilized by the Fund generally will generate less net option premium than writing calls, but limit the overall risk of the strategy by capping the Fund’s liability from the written call while simultaneously allowing for additional upside above the strike price of the purchased call.

The Fund may also use put options as part of its option strategy. A put option gives the purchaser of the option the right (but not the obligation) to sell, and the writer of the option the obligation to buy, the underlying instrument (or the cash value of the index) at a stated price (the “exercise price”) at any time before the option expires. The purchase price for a put option is the “premium” paid by the purchaser for the right to sell. When the Fund sells a put option on an underlying instrument and the underlying instrument decreases in value, the purchaser of the put option has the right to exercise the option, obligating the Fund to purchase the underlying instrument at an exercise price that is higher than the prevailing market price. The Fund collects option premium income when it sells the put option. If the underlying instrument increases in value, the purchaser of the put option is unlikely to exercise the option since the prevailing market price will be higher than the exercise price. Accordingly, the Fund retains all put premium income collected during market advances.

 

91


Shareholder Update (Unaudited) (continued)

 

The Fund may invest in U.S. Government securities. U.S. Government securities include (1) U.S. Treasury obligations, which differ in their interest rates, maturities and times of issuance: U.S. Treasury bills (maturities of one year or less), U.S. Treasury notes (maturities of one year to ten years) and U.S. Treasury bonds (generally maturities of greater than ten years) and (2) obligations issued or guaranteed by U.S. Government agencies and instrumentalities that are supported by any of the following: (i) the full faith and credit of the U.S. Treasury, (ii) the right of the issuer to borrow an amount limited to a specific line of credit from the U.S. Treasury, (iii) discretionary authority of the U.S. Government to purchase certain obligations of the U.S. Government agency or instrumentality or (iv) the credit of the agency or instrumentality.

The Fund also may invest in any other security or agreement collateralized or otherwise secured by U.S. Government securities. Agencies and instrumentalities of the U.S. Government include but are not limited to: Federal Land Banks, Federal Financing Banks, Banks for Cooperatives, Federal Intermediate Credit Banks, Farm Credit Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, Student Loan Marketing Association, U.S. Postal Service, Small Business Administration, Tennessee Valley Authority and any other enterprise established or sponsored by the U.S. Government. Because the U.S. Government generally is not obligated to provide support to its instrumentalities, the Fund will invest in obligations issued by these instrumentalities only if its sub-adviser determines that the credit risk with respect to such obligations is minimal.

The Fund may invest in commercial paper. Commercial paper represents short-term unsecured promissory notes issued in bearer form by corporations such as banks or bank holding companies and finance companies.

The Fund may enter into repurchase agreements (the purchase of a security coupled with an agreement to resell that security at a higher price) with respect to its permitted investments. The Fund’s repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the agreement, and will be marked-to-market daily.

The Fund may invest in securities of non-U.S. issuers that are U.S. dollar-denominated, which may include securities of issuers located, or conducting their business, in emerging market countries. The Fund will classify an issuer of a security as being a U.S. or non-U.S. issuer based on the determination of an unaffiliated, recognized financial data provider. Such determinations are based on a number of criteria, such as the issuer’s country of domicile, the primary exchange on which the security predominately trades, the location from which the majority of the issuer’s revenue comes, and the issuer’s reporting currency. Furthermore, a country is considered to be an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies and the potential for rapid economic growth. The Fund considers a country an emerging market country based on the determination of an international organization, such as the IMF, or an unaffiliated, recognized financial data provider.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objective, including to seek to enhance return, to hedge certain risks of its investments in securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts and options thereon, swaps (with varying terms, including interest rate swaps and credit default swaps), options on interest rates, options on indices, options on swaps, options on currencies and other fixed-income derivative instruments that may have the economic effect of leverage.

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in securities of the types in which the Fund may invest directly, to the extent permitted by the 1940 Act, the rules and regulations issued thereunder and applicable exemptive orders issued by the SEC.

The Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions to generate additional income. When the Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to at least 102% of the value of the loaned securities. Under the Fund’s securities lending agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. The Fund, however, will be responsible for the risks associated with the investment of cash collateral. The Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to meet its obligations to the borrower.

Use of Leverage

As a non-fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as the issuance of preferred shares of beneficial interest or debt instruments. However, the Fund may borrow for temporary or emergency purposes and may enter into certain derivatives transactions that have the economic effect of leverage.

Temporary Defensive Periods

During temporary defensive periods the Fund may deviate from its investment objective and policies, and in order to keep the Fund’s cash fully invested, the Fund may invest any portion of its Managed Assets in investment grade debt securities, including obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities. The Fund may not achieve its investment objective during such periods.

 

92


 

NUVEEN S&P 500 DYNAMIC OVERWRITE FUND (SPXX)

Investment Objective

The Fund’s investment objective is to seek attractive total return with less volatility than the S&P 500 Index.

Investment Policies

Under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in a diversified equity portfolio made up of securities comprising the S&P 500 Index (or securities that have economic characteristics that are similar to those securities comprising the S&P 500 Index) that seeks to substantially replicate price movements of the S&P 500 Index and is designed to support the Fund’s option strategy.

Under normal circumstances, the Fund expects to invest substantially all (at least 90%) of its Managed Assets (as defined below) in its equity portfolio or otherwise in pursuit of its investment objective.

The Fund’s sub-adviser uses a multi-factor quantitative model, which will consider opportunities to engage in tax-loss harvesting (i.e., periodically selling positions that have depreciated in value to realize capital losses that can be used to offset capital gains realized by the Fund) and other tax management considerations to improve after-tax shareholder outcomes, to construct the Fund’s equity portfolio.

The Fund employs a dynamic options “overwrite” strategy whereby the Fund’s sub-adviser sells (writes) call options on a varying percentage of the market value of the Fund’s equity portfolio based on its market outlook. Pursuant to this option strategy, under normal circumstances, the Fund sells (writes) index call options, call options on custom baskets of securities, and call options on individual securities. In addition to a primary emphasis on writing call options to reduce downside risk and volatility of the Fund’s equity portfolio, the Fund’s option strategy as a secondary emphasis seeks additional return opportunities by capitalizing on inefficiencies in the options market through a variety of means including the use of call spreads and selling put option

The Fund targets an overwrite level (i.e., the ratio of the notional value of call options sold by the Fund to the market value of the Fund’s equity portfolio) of 55% of the value of its equity portfolio over time, and the overwrite level will vary, based on market conditions, between 35% to 75% of the value of its equity portfolio.

“Assets” means net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal market conditions:

 

  ·  

As a fundamental policy, the Fund may not concentrate (i.e., invest more than 25% of its total assets) in securities of issuers in any one industry, except that the Fund will be concentrated in an industry or group of industries to the extent the S&P 500 Index is concentrated in an industry or group of industries unless the Fund would need to avoid concentration in order to implement its investment strategy as it relates to avoiding the adverse tax treatment associated with straddle positions (Industry Concentration Policy).

 

  ·  

The Fund may invest no more than 10% of its Managed Assets in short-term, high quality fixed-income securities.

 

  ·  

The Fund may invest up to 20% of its Managed Assets in securities of non-U.S. issuers that are U.S. dollar denominated, which may include securities of issuers located, or conducting their business, in emerging market countries.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, with respect to the Fund’s policy of investing at least 80% of its Assets in its equity portfolio, such policies may not be changed without 60 days’ prior written notice to shareholders.

However, the Fund’s fundamental Industry Concentration Policy may not be changed without the approval of the holders of a majority of the outstanding common shares. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

Portfolio Contents

The Fund will invest in a portfolio of individual common stocks designed to replicate the risk and return profile, and thereby substantially replicate price movements of the S&P 500 Index. The Fund may also invest in other investment companies, including ETFs, that provide similar exposure to individual common stocks consistent with the Fund’s investment objective. Common stock generally represents an equity ownership interest in an issuer, without preference over and with a lower priority than any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks usually carry voting rights and earn dividends. Common stocks fluctuate in price in response to

 

93


Shareholder Update (Unaudited) (continued)

 

many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity, as such the company may or may not pay dividends. Dividends on common stocks are declared at the discretion of the company’s board. In addition, common stock generally has the greatest appreciation and depreciation potential because increases and decreases in earnings are usually reflected in a company’s stock price.

As part of its option strategy, the Fund sells (writes) index call options, call options on custom baskets of securities, and covered or uncovered call options on individual securities. An option contract is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the reference instrument underlying the option (or the cash value of the index) at a specified exercise price at any time during the term of the option. The writer of an option on a security has the obligation upon exercise of the option to deliver the reference instrument (or the cash) upon payment of the exercise price or to pay the exercise price upon delivery of the reference instrument (or the cash). Upon exercise of an index option, the writer of an option on an index is obligated to pay the difference between the cash value of the index and the exercise price multiplied by the specified multiplier for the index option. Options may be “covered,” meaning that the party required to deliver the reference instrument if the option is exercised owns that instrument (or has set aside sufficient assets to meet its obligation to deliver the instrument). Options may be listed on an exchange or traded in the OTC market. In general, exchange-traded options have standardized exercise prices and expiration dates and may require the parties to post margin against their obligations, and the performance of the parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation. OTC options have more flexible terms negotiated between the buyer and the seller but are subject to counterparty risk. The ability of the Fund to transact business with any one or any number of counterparties, the lack of any independent evaluation of the counterparties or their financial capabilities, and the absence of a regulated market to facilitate settlement, may increase the potential for losses to the Fund. OTC options also involve greater liquidity risk. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes limited.

In carrying out its option strategy, the Fund may write index call options on the S&P 500 Index and other broad-based indices and may, if the Fund’s sub-adviser deems conditions appropriate, write call options on a variety of other equity market indices. As the seller of an index call option, the Fund receives a premium from the purchaser. The purchaser of the index call option has the right to any appreciation in the value of the index over the exercise price upon the exercise of the call option or the expiration date. If, at expiration, the purchaser exercises the index option sold by the Fund, the Fund will pay the purchaser the difference between the cash value of the index and the exercise price of the index option. The premium, the exercise price and the market value of the index determine the gain or loss realized by the Fund as the seller of the index call option.

The Fund may also write call options on custom baskets of securities. A custom basket call option is an OTC option with a counterparty whose value is linked to the market value of a portfolio of underlying securities and is collateralized by a portion of the Fund’s equity portfolio. In designing the custom basket call options, the Fund’s sub-adviser will primarily select assets not held by the Fund. In order to minimize the difference between the returns of the underlying securities in the custom basket (commonly referred to as a tracking error), the Fund’s sub-adviser will use optimization calculations when selecting the individual securities for inclusion in the custom basket.

The Fund may also write single name call options, both covered and “naked” or uncovered, on individual stocks. A call option written by the Fund on an individual security is “covered” if the Fund owns the security underlying the call or has an absolute and immediate right to acquire that security without additional cash consideration. The Fund, in effect, sells the potential appreciation in the value of the security subject to the call option in exchange for the premium. The Fund may execute a closing purchase transaction with respect to an option it has sold and sell another option (with either a different exercise price or expiration date or both). The Fund’s objective in entering into such a closing transaction will be to optimize net index option premiums. The cost of a closing transaction may reduce the net option premiums realized from the sale of the option. This reduction could be offset, at least in part, by appreciation in the value of the underlying security held in the Fund’s equity portfolio, and by the opportunity to realize additional premium income from selling a new option.

The Fund may also use call spreads as part of its option strategy. A call spread involves the sale of a call option and the corresponding purchase of a call option on the same underlying instrument with the same expiration date but with different exercise prices. The call spreads utilized by the Fund generally will generate less net option premium than writing calls, but limit the overall risk of the strategy by capping the Fund’s liability from the written call while simultaneously allowing for additional upside above the strike price of the purchased call.

The Fund may also use put options as part of its option strategy. A put option gives the purchaser of the option the right (but not the obligation) to sell, and the writer of the option the obligation to buy, the underlying instrument (or the cash value of the index) at a stated price (the “exercise price”) at any time before the option expires. The purchase price for a put option is the “premium” paid by the purchaser for the right to sell. When the Fund sells a put option on an underlying instrument and the underlying instrument decreases in value, the purchaser of the put option has the right to exercise the option, obligating the Fund to purchase the underlying instrument at an exercise price that is higher than the prevailing market price. The Fund collects option premium income when it sells the put option. If the underlying instrument increases in value, the purchaser of the put option is unlikely to exercise the option since the prevailing market price will be higher than the exercise price. Accordingly, the Fund retains all put premium income collected during market advances.

The Fund may invest in U.S. Government securities. U.S. Government securities include (1) U.S. Treasury obligations, which differ in their interest rates, maturities and times of issuance: U.S. Treasury bills (maturities of one year or less), U.S. Treasury notes (maturities of one year to ten years) and U.S. Treasury bonds (generally maturities of greater than ten years) and (2) obligations issued or guaranteed by U.S. Government agencies and instrumentalities that are supported by any of the following: (i) the full faith and credit of the U.S. Treasury, (ii) the right of the issuer to borrow an amount limited to a specific line of credit from the U.S. Treasury, (iii) discretionary authority of the U.S. Government to purchase certain obligations of the U.S. Government agency or instrumentality or (iv) the credit of the agency or instrumentality.

The Fund also may invest in any other security or agreement collateralized or otherwise secured by U.S. Government securities. Agencies and instrumentalities of the U.S. Government include but are not limited to: Federal Land Banks, Federal Financing Banks, Banks for Cooperatives, Federal Intermediate Credit Banks, Farm Credit Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, Student Loan Marketing Association, U.S. Postal Service, Small Business

 

94


 

Administration, Tennessee Valley Authority and any other enterprise established or sponsored by the U.S. Government. Because the U.S. Government generally is not obligated to provide support to its instrumentalities, the Fund will invest in obligations issued by these instrumentalities only if its sub-adviser determines that the credit risk with respect to such obligations is minimal.

The Fund may invest in commercial paper. Commercial paper represents short-term unsecured promissory notes issued in bearer form by corporations such as banks or bank holding companies and finance companies.

The Fund may enter into repurchase agreements (the purchase of a security coupled with an agreement to resell that security at a higher price) with respect to its permitted investments. The Fund’s repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the agreement, and will be marked-to-market daily.

The Fund may invest in securities of non-U.S. issuers that are U.S. dollar-denominated, which may include securities of issuers located, or conducting their business, in emerging market countries. The Fund will classify an issuer of a security as being a U.S. or non-U.S. issuer based on the determination of an unaffiliated, recognized financial data provider. Such determinations are based on a number of criteria, such as the issuer’s country of domicile, the primary exchange on which the security predominately trades, the location from which the majority of the issuer’s revenue comes, and the issuer’s reporting currency. Furthermore, a country is considered to be an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies and the potential for rapid economic growth. The Fund considers a country an emerging market country based on the determination of an international organization, such as the IMF, or an unaffiliated, recognized financial data provider.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objective, including to seek to enhance return, to hedge certain risks of its investments in securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts and options thereon, swaps (with varying terms, including interest rate swaps and credit default swaps), options on interest rates, options on indices, options on swaps, options on currencies and other fixed-income derivative instruments that may have the economic effect of leverage.

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in securities of the types in which the Fund may invest directly, to the extent permitted by the 1940 Act, the rules and regulations issued thereunder and applicable exemptive orders issued by the SEC.

The Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions to generate additional income. When the Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to at least 102% of the value of the loaned securities. Under the Fund’s securities lending agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. The Fund, however, will be responsible for the risks associated with the investment of cash collateral. The Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to meet its obligations to the borrower.

Use of Leverage

As a non-fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as the issuance of preferred shares of beneficial interest or debt instruments. However, the Fund may borrow for temporary or emergency purposes and may enter into certain derivatives transactions that have the economic effect of leverage.

Temporary Defensive Periods

During temporary defensive periods the Fund may deviate from its investment objective and policies, and in order to keep the Fund’s cash fully invested, the Fund may invest any portion of its Managed Assets in investment grade debt securities, including obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities. The Fund may not achieve its investment objective during such periods.

 

95


Shareholder Update (Unaudited) (continued)

 

NUVEEN NASDAQ 100 DYNAMIC OVERWRITE FUND (QQQX)

Investment Objective

The Fund’s investment objective is to seek attractive total return with less volatility than the Nasdaq 100 Index.

Investment Policies

Under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in an equity portfolio made up of securities comprising the Nasdaq 100 Index (or securities that have economic characteristics that are similar to those securities comprising the Nasdaq 100 Index) that seeks to substantially replicate price movements of the Nasdaq 100 Index and is designed to support the Fund’s option strategy.

Under normal circumstances, the Fund expects to invest substantially all (at least 90%) of its Managed Assets (as defined below) in its equity portfolio or otherwise in pursuit of its investment objective.

The Fund’s sub-adviser uses a multi-factor quantitative model, which will consider opportunities to engage in tax-loss harvesting (i.e., periodically selling positions that have depreciated in value to realize capital losses that can be used to offset capital gains realized by the Fund) and other tax management considerations to improve after-tax shareholder outcomes, to construct the Fund’s equity portfolio.

The Fund employs a dynamic options “overwrite” strategy whereby the Fund’s sub-adviser sells (writes) call options on a varying percentage of the market value of the Fund’s equity portfolio based on its market outlook. Pursuant to this option strategy, under normal circumstances, the Fund sells (writes) index call options, call options on custom baskets of securities, and call options on individual securities. In addition to a primary emphasis on writing call options to reduce downside risk and volatility of the Fund’s equity portfolio, the Fund’s option strategy as a secondary emphasis seeks additional return opportunities by capitalizing on inefficiencies in the options market through a variety of means including the use of call spreads and selling put options.

The Fund targets an overwrite level (i.e., the ratio of the notional value of call options sold by the Fund to the market value of the Fund’s equity portfolio) of 55% of the value of its equity portfolio over time, and the overwrite level will vary, based on market conditions, between 35% to 75% of the value of its equity portfolio.

“Assets” means net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal market conditions:

 

  ·  

As a fundamental policy, the Fund may not concentrate (i.e., invest more than 25% of its total assets) in securities of issuers in any one industry, except that if 25% or more of the securities in the Nasdaq 100 Index are issued by companies in one industry, the Fund will concentrate in that industry unless the Fund would need to avoid concentration in order to implement its investment strategy as it relates to avoiding the adverse tax treatment associated with straddle positions (Industry Concentration Policy).

 

  ·  

The Fund may invest no more than 10% of its Managed Assets in short-term, high quality fixed-income securities.

 

  ·  

The Fund may invest up to 20% of its Managed Assets in securities of non-U.S. issuers that are U.S. dollar denominated, which may include securities of issuers located, or conducting their business, in emerging market countries.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, with respect to the Fund’s policy of investing at least 80% of its Assets in the equity portfolio, such policy may not be changed without 60 days’ prior written notice to shareholders.

However, the Fund’s fundamental Industry Concentration Policy may not be changed without the approval of the holders of a majority of the outstanding common shares. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.

Portfolio Contents

The Fund will invest in a portfolio of individual common stocks designed to replicate the risk and return profile, and thereby substantially replicate price movements of the Nasdaq 100 Index. The Fund may also invest in other investment companies, including ETFs, that provide similar exposure to individual common stocks consistent with the Fund’s investment objective. Common stock generally represents an equity ownership interest in an issuer, without preference over and with a lower priority than any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks usually carry voting rights and earn dividends. Common stocks fluctuate in price in response to

 

96


 

many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity, as such the company may or may not pay dividends. Dividends on common stocks are declared at the discretion of the company’s board. In addition, common stock generally has the greatest appreciation and depreciation potential because increases and decreases in earnings are usually reflected in a company’s stock price.

As part of its option strategy, the Fund sells (writes) index call options, call options on custom baskets of securities, and covered or uncovered call options on individual securities. An option contract is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the reference instrument underlying the option (or the cash value of the index) at a specified exercise price at any time during the term of the option. The writer of an option on a security has the obligation upon exercise of the option to deliver the reference instrument (or the cash) upon payment of the exercise price or to pay the exercise price upon delivery of the reference instrument (or the cash). Upon exercise of an index option, the writer of an option on an index is obligated to pay the difference between the cash value of the index and the exercise price multiplied by the specified multiplier for the index option. Options may be “covered,” meaning that the party required to deliver the reference instrument if the option is exercised owns that instrument (or has set aside sufficient assets to meet its obligation to deliver the instrument). Options may be listed on an exchange or traded in the OTC market. In general, exchange-traded options have standardized exercise prices and expiration dates and may require the parties to post margin against their obligations, and the performance of the parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation. OTC options have more flexible terms negotiated between the buyer and the seller but are subject to counterparty risk. The ability of the Fund to transact business with any one or any number of counterparties, the lack of any independent evaluation of the counterparties or their financial capabilities, and the absence of a regulated market to facilitate settlement, may increase the potential for losses to the Fund. OTC options also involve greater liquidity risk. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes limited.

In carrying out its option strategy, the Fund may write index call options on the Nasdaq 100 Index and other broad-based indices and may, if the Fund’s sub-adviser deems conditions appropriate, write call options on a variety of other equity market indices. As the seller of an index call option, the Fund receives a premium from the purchaser. The purchaser of the index call option has the right to any appreciation in the value of the index over the exercise price upon the exercise of the call option or the expiration date. If, at expiration, the purchaser exercises the index option sold by the Fund, the Fund will pay the purchaser the difference between the cash value of the index and the exercise price of the index option. The premium, the exercise price and the market value of the index determine the gain or loss realized by the Fund as the seller of the index call option.

The Fund may also write call options on custom baskets of securities. A custom basket call option is an OTC option with a counterparty whose value is linked to the market value of a portfolio of underlying securities and is collateralized by a portion of the Fund’s equity portfolio. In designing the custom basket call options, the Fund’s sub-adviser will primarily select assets not held by the Fund. In order to minimize the difference between the returns of the underlying securities in the custom basket (commonly referred to as a tracking error), the Fund’s sub-adviser will use optimization calculations when selecting the individual securities for inclusion in the custom basket.

The Fund may also write single name call options, both covered and “naked” or uncovered, on individual stocks. A call option written by the Fund on an individual security is “covered” if the Fund owns the security underlying the call or has an absolute and immediate right to acquire that security without additional cash consideration. The Fund, in effect, sells the potential appreciation in the value of the security subject to the call option in exchange for the premium. The Fund may execute a closing purchase transaction with respect to an option it has sold and sell another option (with either a different exercise price or expiration date or both). The Fund’s objective in entering into such a closing transaction will be to optimize net index option premiums. The cost of a closing transaction may reduce the net option premiums realized from the sale of the option. This reduction could be offset, at least in part, by appreciation in the value of the underlying security held in the Fund’s equity portfolio, and by the opportunity to realize additional premium income from selling a new option.

The Fund may also use call spreads as part of its option strategy. A call spread involves the sale of a call option and the corresponding purchase of a call option on the same underlying instrument with the same expiration date but with different exercise prices. The call spreads utilized by the Fund generally will generate less net option premium than writing calls, but limit the overall risk of the strategy by capping the Fund’s liability from the written call while simultaneously allowing for additional upside above the strike price of the purchased call.

The Fund may also use put options as part of its option strategy. A put option gives the purchaser of the option the right (but not the obligation) to sell, and the writer of the option the obligation to buy, the underlying instrument (or the cash value of the index) at a stated price (the “exercise price”) at any time before the option expires. The purchase price for a put option is the “premium” paid by the purchaser for the right to sell. When the Fund sells a put option on an underlying instrument and the underlying instrument decreases in value, the purchaser of the put option has the right to exercise the option, obligating the Fund to purchase the underlying instrument at an exercise price that is higher than the prevailing market price. The Fund collects option premium income when it sells the put option. If the underlying instrument increases in value, the purchaser of the put option is unlikely to exercise the option since the prevailing market price will be higher than the exercise price. Accordingly, the Fund retains all put premium income collected during market advances.

The Fund may invest in U.S. Government securities. U.S. Government securities include (1) U.S. Treasury obligations, which differ in their interest rates, maturities and times of issuance: U.S. Treasury bills (maturities of one year or less), U.S. Treasury notes (maturities of one year to ten years) and U.S. Treasury bonds (generally maturities of greater than ten years) and (2) obligations issued or guaranteed by U.S. Government agencies and instrumentalities that are supported by any of the following: (i) the full faith and credit of the U.S. Treasury, (ii) the right of the issuer to borrow an amount limited to a specific line of credit from the U.S. Treasury, (iii) discretionary authority of the U.S. Government to purchase certain obligations of the U.S. Government agency or instrumentality or (iv) the credit of the agency or instrumentality.

The Fund also may invest in any other security or agreement collateralized or otherwise secured by U.S. Government securities. Agencies and instrumentalities of the U.S. Government include but are not limited to: Federal Land Banks, Federal Financing Banks, Banks for Cooperatives, Federal Intermediate Credit Banks, Farm Credit Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, Student Loan Marketing Association, U.S. Postal Service, Small Business

 

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Shareholder Update (Unaudited) (continued)

 

Administration, Tennessee Valley Authority and any other enterprise established or sponsored by the U.S. Government. Because the U.S. Government generally is not obligated to provide support to its instrumentalities, the Fund will invest in obligations issued by these instrumentalities only if its sub-adviser determines that the credit risk with respect to such obligations is minimal.

The Fund may invest in commercial paper. Commercial paper represents short-term unsecured promissory notes issued in bearer form by corporations such as banks or bank holding companies and finance companies.

The Fund may enter into repurchase agreements (the purchase of a security coupled with an agreement to resell that security at a higher price) with respect to its permitted investments. The Fund’s repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the agreement, and will be marked-to-market daily.

The Fund may invest in securities of non-U.S. issuers that are U.S. dollar-denominated, which may include securities of issuers located, or conducting their business, in emerging market countries. The Fund will classify an issuer of a security as being a U.S. or non-U.S. issuer based on the determination of an unaffiliated, recognized financial data provider. Such determinations are based on a number of criteria, such as the issuer’s country of domicile, the primary exchange on which the security predominately trades, the location from which the majority of the issuer’s revenue comes, and the issuer’s reporting currency. Furthermore, a country is considered to be an “emerging market” if it has a relatively low gross national product per capita compared to the world’s major economies and the potential for rapid economic growth. The Fund considers a country an emerging market country based on the determination of an international organization, such as the IMF, or an unaffiliated, recognized financial data provider.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days.

The Fund may enter into certain derivative instruments in pursuit of its investment objective, including to seek to enhance return, to hedge certain risks of its investments in securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts and options thereon, swaps (with varying terms, including interest rate swaps and credit default swaps), options on interest rates, options on indices, options on swaps, options on currencies and other fixed-income derivative instruments that may have the economic effect of leverage.

The Fund may also invest in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in securities of the types in which the Fund may invest directly, to the extent permitted by the 1940 Act, the rules and regulations issued thereunder and applicable exemptive orders issued by the SEC.

The Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions to generate additional income. When the Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to at least 102% of the value of the loaned securities. Under the Fund’s securities lending agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. The Fund, however, will be responsible for the risks associated with the investment of cash collateral. The Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to meet its obligations to the borrower.

Use of Leverage

As a non-fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as the issuance of preferred shares of beneficial interest or debt instruments. However, the Fund may borrow for temporary or emergency purposes and may enter into certain derivatives transactions that have the economic effect of leverage.

Temporary Defensive Periods

During temporary defensive periods the Fund may deviate from its investment objective and policies, and in order to keep the Fund’s cash fully invested, the Fund may invest any portion of its Managed Assets in investment grade debt securities, including obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities. The Fund may not achieve its investment objective during such periods.

 

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NUVEEN CORE EQUITY ALPHA FUND (JCE)

Investment Objective

The Fund’s investment objective is to provide an attractive level of total return. The Fund seeks to achieve its investment objective primarily through long term capital appreciation and secondarily through income and gains.

Investment Policies

Under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in the Equity Portfolio (as defined below).

The Fund invests in a portfolio of actively managed large capitalization U.S. common stocks, using the sub-adviser’s proprietary quantitative process designed to provide the potential for long-term outperformance (the “Equity Portfolio”). Additionally, the Fund seeks to reduce the volatility of its returns relative to the returns of the Equity Portfolio over extended periods by writing (selling) index call options and/or call options on custom baskets of securities (the “Options Strategy”).

“Assets” means net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.

Under normal market conditions:

 

  ·  

The notional value of the call options written by the Fund under its Options Strategy may be up to 50% of the value of the Fund’s Managed Assets.

 

  ·  

The Fund intends to limit the overlap between the stocks held in the Equity Portfolio and the stocks underlying the Fund’s call options to less than 70% (generally based on the value of such components).

 

  ·  

The Fund may invest up to 10% of is Managed Assets in securities of other open- or closed-end investment companies (including ETFs) that invest primarily in securities of the types in which the Fund may invest directly. In addition, the Fund may invest a portion of its Managed Assets in pooled investment vehicles (other than investment companies) that invest primarily in securities of the types in which the Fund may invest directly.

The foregoing policies apply only at the time of any new investment.

Approving Changes in Investment Policies

The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, with respect to the Fund’s policy of investing at least 80% of its Assets in the Equity Portfolio, such policy may not be changed without 60 days’ prior written notice to shareholders.

Portfolio Contents

The Fund generally invests in a portfolio of common stocks. Common stock generally represents an equity ownership interest in an issuer, without preference over and with a lower priority than any other class of securities, including such issuer’s debt securities, preferred stock and other senior equity securities. Common stocks usually carry voting rights and earn dividends. Common stocks fluctuate in price in response to many factors including historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity, as such the company may or may not pay dividends. Dividends on common stocks are declared at the discretion of the company’s board. In addition, common stock generally has the greatest appreciation and depreciation potential because increases and decreases in earnings are usually reflected in a company’s stock price.

The Fund implements its Option Strategy by writing (selling) index call options and call options on custom baskets of securities.

An option contract is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the reference instrument underlying the option (or the cash value of the index) at a specified exercise price at any time during the term of the option. The writer of an option on a security has the obligation upon exercise of the option to deliver the reference instrument (or the cash) upon payment of the exercise price or to pay the exercise price upon delivery of the reference instrument (or the cash). Upon exercise of an index option, the writer of an option on an index is obligated to pay the difference between the cash value of the index and the exercise price multiplied by the specified multiplier for the index option. Options may be “covered,” meaning that the party required to deliver the reference instrument if the option is exercised owns that instrument (or has set aside sufficient assets to meet its obligation to deliver the instrument). Options may be listed on an exchange or traded in the OTC market. In general, exchange-traded options have standardized exercise prices and expiration dates and may require the parties to post margin against their obligations, and the performance of the parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation. OTC options have more flexible terms negotiated between the buyer and the seller, but generally are subject to counterparty risk. The ability of the Fund to transact business with any one or any

 

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Shareholder Update (Unaudited) (continued)

 

number of counterparties, the lack of any independent evaluation of the counterparties or their financial capabilities, and the absence of a regulated market to facilitate settlement, may increase the potential for losses to the Fund. OTC options also involve greater liquidity risk. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes limited. The staff of the SEC takes the position that certain purchased OTC options, and assets used as cover for certain written OTC options, are illiquid.

The Fund writes index call options on broad-based indices and may, if the sub-adviser deems conditions appropriate, write call options on a variety of other equity market indices. As the seller of an index call option, the Fund receives a premium from the purchaser. The purchaser of the index call option has the right to any appreciation in the value of the index over the exercise price upon the exercise of the call option or the expiration date. If, at expiration, the purchaser exercises the index option sold by the Fund, the Fund will pay the purchaser the difference between the cash value of the index and the exercise price of the index option. The premium, the exercise price and the market value of the index determine the gain or loss realized by the Fund as the seller of the index call option.

The Fund may also write call options on custom baskets of securities. A custom basket call option is an OTC option with a counterparty whose value is linked to the market value of a portfolio of underlying securities and is collateralized by a portion of the Fund’s Equity Portfolio. In order to minimize the difference between the returns of the underlying securities in the custom basket (commonly referred to as a tracking error), the sub-adviser will use optimization calculations when selecting the individual securities for inclusion in the custom basket.

In addition to the use of call options as described above, the Fund may enter into certain derivative instruments in pursuit of its investment objective, including to seek to enhance return, to hedge certain risks of its investments or as a substitute for a position in the underlying asset. Such instruments include options, futures contracts, index futures and total return swaps. In addition, the Fund may invest in other types of derivative instruments that are currently non-principal investments, including forward contracts, interest rate swaps, caps, collars and floors, credit default swaps, and swap options.

The Fund may enter into repurchase agreements (the purchase of a security coupled with an agreement to resell that security at a higher price) with respect to its permitted investments. The Fund’s repurchase agreements will provide that the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the agreement, and will be marked-to-market daily.

The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the 1933 Act, and repurchase agreements with maturities in excess of seven days.

The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.

The Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions to generate additional income. When the Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to at least 102% of the value of the loaned securities. Under the Fund’s securities lending agreement, the securities lending agent will generally bear the risk that a borrower may default on its obligation to return loaned securities. The Fund, however, will be responsible for the risks associated with the investment of cash collateral. The Fund may lose money on its investment of cash collateral or may fail to earn sufficient income on its investment to meet its obligations to the borrower.

Use of Leverage

As a non-fundamental policy, the Fund will not leverage its capital structure by issuing senior securities such as the issuance of preferred shares of beneficial interest or debt instruments. The Fund may, however, borrow up to 7.5% of its Managed Assets for cash management purposes. In addition, the Fund may borrow for temporary or emergency purposes and may enter into certain derivatives transactions that have the economic effect of leverage by creating additional investment exposure.

Temporary Defensive Periods

During temporary defensive periods the Fund may deviate from its investment objective and policies, and in order to keep the Fund’s cash fully invested, the Fund may invest up to 100% of its Managed Assets in investment grade debt securities, including obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities. The Fund may not achieve its investment objective during such periods.

 

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PRINCIPAL RISKS OF THE FUNDS

The factors that are most likely to have a material effect on a particular Fund’s portfolio as a whole are called “principal risks.” Each Fund is subject to the principal risks indicated below, whether through direct investment or derivative positions. Each Fund may be subject to additional risks other than those identified and described below because the types of investments made by a Fund can change over time.

 

Risk      BXMX        DIAX        SPXX        QQQX        JCE  
           
Portfolio Level Risks                              

Call Option Risk

   X    X    X    X    X

Call Spreads Risk

   X    X    X    X    -

Common Stock Risk

   X    X    X    X    X

Concentration Risk

   X    X    X    X    -

Counterparty Risk

   X    X    X    X    X

Deflation Risk

   X    X    X    X    X

Derivatives Risk

   X    X    X    X    X

Dividend Income Risk

   X    X    X    X    X

Frequent Trading Risk

   -    -    -    -    X

Financial Services Sector Risk

   -    X    X    -    X

Hedging Risk

   X    X    X    X    X

Illiquid Investments Risk

   X    X    X    X    -

Inflation Risk

   X    X    X    X    X

Information Technology Sector Risk

   X    -    X    -    -

Large -Cap Company Risk

   X    X    X    X    X

Non-U.S. Securities Risk

   X    X    X    X    -

Option Strategy Risk

   X    X    X    X    X

Other Investment Companies Risk

   X    X    X    X    X

Put Option Risk

   X    X    X    X    -

Quantitative Analysis Risk

   -    -    -    -    X

Swap Transactions Risk

   X    X    X    X    X

Technology Company Investment Risk

   -    -    -    X    -

Valuation Risk

   X    X    X    X    X
Risk    BXMX    DIAX    SPXX    QQQX    JCE
           
Fund Level and Other Risks                              

Anti-Takeover Provisions

   X    X    X    X    X

Borrowing Risk

   X    X    X    X    X

Cybersecurity Risk

   X    X    X    X    X

Global Economic Risk

   X    X    X    X    X

Investment and Market Risk

   X    X    X    X    X

Legislation and Regulatory Risk

   X    X    X    X    X

Market Discount from Net Asset Value

   X    X    X    X    X

Non-Diversified Status Risk

   -    X    -    X    -

Not an Index Fund

   X    X    X    X    -

Recent Market Conditions

   X    X    X    X    X

Fund Tax Risk

   X    X    X    X    X

 

101


Shareholder Update (Unaudited) (continued)

 

Portfolio Level Risks:

Call Option Risk. As the writer of a call option, the Fund foregoes, during the option’s life, the opportunity to profit from increases in the market value of the instrument underlying the call option above the sum of the premium and the strike price of the option, but will retain the risk of loss should the market value of the instrument underlying the call option decline. The purchaser of the call option has the right to any appreciation in the value of the underlying instrument over the exercise price upon the exercise of the call option or the expiration date. As the Fund increases the option overlay percentage, its ability to benefit from capital appreciation becomes more limited and the risk of NAV erosion increases. If the Fund experiences NAV erosion, which itself may have a negative effect on the market price of the Fund’s shares, the Fund will have a reduced asset base over which to write call options, which may eventually lead to reduced distributions to shareholders.

In addition, because the exercise of index options is settled in cash, sellers of index call options, such as the Fund, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities. The Fund bears a risk that the value of the securities held by the Fund will vary from the value of the underlying index and relative to the written index call option positions. Accordingly, the Fund may incur losses on the index call options that it has sold that exceed gains on the Fund’s equity portfolio. The value of index options written by the Fund, which will be priced daily, will be affected by changes in the value of and dividend rates of the underlying common stocks in the index, changes in the actual or perceived volatility of the stock market and the remaining time to the options’ expiration. The value of the index options also may be adversely affected if the market for the index options becomes less liquid or smaller.

Call Spreads Risk. The Fund may enter into call spreads. A call spread involves the sale of a call option and the corresponding purchase of a call option on the same underlying instrument with the same expiration date but with different strike prices. The Fund may not be able to enter into (or close out of) these transactions, at times or in the quantities desired by the sub-adviser. The Fund also may not be able to enter into (or close out of) these transactions because of, among other things, the lack of market participants that are willing to take contrary positions to that of the Fund.

Common Stock Risk. Common stocks have experienced significantly more volatility in returns and may significantly underperform relative to fixed-income securities during certain periods. An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock held by the Fund. Also, the price of common stocks is sensitive to general movements in the stock market, and a drop in the stock market may depress the price of common stocks to which the Fund has exposure. Common stock prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer, the general condition of the relevant stock market or the current and expected future conditions of the broader economy, or when political or economic events affecting the issuer in particular or the stock market in general occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase.

Concentration Risk. The Fund’s investments are concentrated in issuers of one or a few specific economic sectors, so the Fund may be subject to more risks than if it were broadly diversified across the economy.

Counterparty Risk. The Fund will be subject to credit risk with respect to the counterparties to the derivative transactions entered into by the Fund. Changes in the credit quality of the companies that serve as the Fund’s counterparties with respect to derivatives transactions may affect the value of those instruments. Because certain derivative transactions in which the Fund may engage may be traded between counterparties based on contractual relationships, the Fund is subject to the risk that a counterparty will not perform its obligations under the related contracts. If a counterparty becomes bankrupt or otherwise becomes unable to perform its obligations due to financial difficulties the Fund may sustain losses (including the full amount of its investment), may be unable to liquidate a derivatives position or may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceedings. By entering into derivatives transactions, the Fund assumes the risk that its counterparties could experience such financial hardships. Although the Fund intends to enter into transactions only with counterparties that the sub-adviser believes to be creditworthy, there can be no assurance that a counterparty will not default and that the Fund will not sustain a loss on a transaction. In the event of a counterparty’s bankruptcy or insolvency, any collateral posted by the Fund in connection with a derivatives transaction may be subject to the conflicting claims of that counterparty’s creditors, and the Fund may be exposed to the risk of a court treating the Fund as a general unsecured creditor of the counterparty, rather than as the owner of the collateral.

Deflation Risk. Deflation risk is the risk that prices throughout the economy decline over time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of the Fund’s portfolio.

Derivatives Risk. The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a security or other asset without buying or selling the security or asset. These instruments may entail investment exposures that are greater than their cost would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An over-the-counter derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty. The use of certain derivatives involves leverage, which can cause the Fund’s portfolio to be more volatile than if the portfolio had not been leveraged. Leverage can significantly magnify the effect of price movements of the reference asset, disproportionately increasing the Fund’s losses and reducing the Fund’s opportunities for gains when the reference asset changes in unexpected ways. In some instances, such leverage could result in losses that exceed the original amount invested.

It is possible that regulatory or other developments in the derivatives market, including changes in government regulation could adversely impact the Fund’s ability to invest in certain derivatives successfully use derivative instruments.

 

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Dividend Income Risk. A portion of the net investment income paid by the Fund to its shareholders is derived from dividends it receives from the common stocks held in the Fund’s equity portfolio. Dividends paid on securities held by the Fund can vary significantly over the short-term and long-term. Dividends on common stocks are not fixed, but are declared at the discretion of an issuer’s board of directors. There is no guarantee that the issuers of common stocks in which the Fund invests will declare dividends in the future or that if declared they will remain at current levels or increase over time.

Frequent Trading Risk. In pursuing its investment objective, the Fund may engage in trading that results in a high portfolio turnover rate, which may vary greatly from year to year, as well as within a given year. A higher portfolio turnover rate may result in correspondingly greater transactional expenses that are borne by the Fund. Such expenses may include bid-ask spreads, dealer mark-ups, and other transactional costs on the sale of securities and reinvestment in other securities, and may result in the realization of taxable capital gains (including short-term gains, which are generally taxed for federal income tax purposes to shareholders as ordinary income when distributed). These costs, which are not reflected in annual fund operating expenses or in the example thereunder, may affect the Fund’s performance.

Hedging Risk. The Fund’s use of derivatives or other transactions to reduce risk involves costs and will be subject to the investment adviser’s and/or the sub-adviser’s ability to predict correctly changes in the relationships of such hedge instruments to the Fund’s portfolio holdings or other factors. No assurance can be given that the investment adviser’s and/or the sub-adviser’s judgment in this respect will be correct, and no assurance can be given that the Fund will enter into hedging or other transactions at times or under circumstances in which it may be advisable to do so. Hedging activities may reduce the Fund’s opportunities for gain by offsetting the positive effects of favorable price movements and may result in net losses.

Illiquid Investments Risk. Illiquid investments are investments that are not readily marketable. These investments may include restricted investments, including Rule 144A securities, which cannot be resold to the public without an effective registration statement under the 1933 Act, or, if they are unregistered may be sold only in a privately negotiated transaction or pursuant to an available exemption from registration. The Fund may not be able to readily dispose of such investments at prices that approximate those at which the Fund could sell the investments if they were more widely traded and, as a result of such illiquidity, the Fund may have to sell other investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting the Fund’s NAV and ability to make dividend distributions. The financial markets in general have in recent years experienced periods of extreme secondary market supply and demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value. During such periods, some investments could be sold only at arbitrary prices and with substantial losses. Periods of such market dislocation may occur again at any time.

Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the common shares and distributions can decline. Currently, inflation rates are elevated relative to normal market conditions and could increase.

Information Technology Sector Risk. The Fund currently invests a significant portion of its assets in the information technology sector, although this may change over time. The information technology sector can be significantly affected by changes in, among other things, the supply and demand for specific products and services, the pace of technological development and product obsolescence, market competition, government regulation, and patent and intellectual property rights.

Large-Cap Company Risk. While large-cap companies may be less volatile than those of mid-and small-cap companies, they still involve risk. To the extent the Fund invests in large-capitalization securities, the Fund may underperform funds that invest primarily in securities of smaller capitalization companies during periods when the securities of such companies are in favor. Large-capitalization companies may be unable to respond as quickly as smaller capitalization companies to competitive challenges or to changes in business, product, financial or other market conditions.

Non-U.S. Securities Risk. Investments in securities of non-U.S. issuers involve special risks, including: less publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices; many non-U.S. markets are smaller, less liquid and more volatile; the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; the impact of economic, political, social or diplomatic events; possible seizure of a company’s assets; restrictions imposed by foreign countries limiting the ability of foreign issuers to make payments of principal and/or interest due to blockages of foreign currency exchanges or otherwise; and withholding and other non-U.S. taxes may decrease the Fund’s return. These risks are more pronounced to the extent that the Fund invests a significant amount of its assets in issuers located in one region.

Option Strategy Risk. The value of call options sold (written) by the Fund will fluctuate. The Fund may not participate in any appreciation of its portfolio as fully as it would if the Fund did not sell call options. In addition, the Fund will continue to bear the risk of declines in the value of its portfolio. In employing the Fund’s option strategy, the sub-adviser seeks to reduce downside risk and volatility of the Fund’s equity portfolio. This strategy may not protect against market declines and may limit the Fund’s participation in market gains, particularly during periods when market values are increasing. This strategy may increase the Fund’s portfolio transaction costs, which could result in losses or reduce gains, and may not be successful.

Other Investment Companies Risk. The Fund may invest in the securities of other investment companies, including ETFs. Investing in an investment company exposes the Fund to all of the risks of that investment company’s investments. The Fund, as a holder of the securities of other investment companies, will bear its pro rata portion of the other investment companies’ expenses, including advisory fees. These expenses are in addition to the direct expenses of the Fund’s own operations. As a result, the cost of investing in investment company shares may exceed the costs of investing directly in its underlying investments. In addition, securities of other investment companies may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities and therefore magnify the Fund’s leverage risk.

 

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Shareholder Update (Unaudited) (continued)

 

With respect to ETF’s, an ETF that is based on a specific index may not be able to replicate and maintain exactly the composition and relative weighting of securities in the index. The value of an ETF based on a specific index is subject to change as the values of its respective component assets fluctuate according to market volatility. ETFs typically rely on a limited pool of authorized participants to create and redeem shares, and an active trading market for ETF shares may not develop or be maintained. The market value of shares of ETFs and closed-end funds may differ from their NAV.

Put Option Risk. By writing put options, the Fund takes on the risk of declines in the value of the underlying instrument, including the possibility of a loss up to the entire strike price of each option it sells but without the corresponding opportunity to benefit from potential increases in the value of the underlying instrument. When the Fund writes a put option, it assumes the risk that it must purchase the underlying instrument at a strike price that may be higher than the market price of the instrument. If there is a broad market decline and the Fund is not able to close out its written put options, it may result in substantial losses to the Fund. The Fund will receive a premium from writing options, but the premium received may not be sufficient to offset any losses sustained from exercised put options.

Quantitative Analysis Risk. The risk that stocks selected using quantitative modeling and analysis could perform differently from the market as a whole and the risk that such quantitative analysis and modeling may not adequately take into account certain factors, may contain design flaws or inaccurate assumptions and may rely on inaccurate data inputs, which may result in losses to the Fund.

Swap Transactions Risk. The Fund may enter into derivative instruments such as swap contracts, credit default swaps, interest rate swaps and forward contracts. Like most derivative instruments, the use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. In addition, the use of swaps requires an understanding by the investment adviser and/or the sub-adviser of not only the referenced asset, rate or index, but also of the swap itself. If the investment adviser and/ or the sub-adviser is incorrect in its forecasts of default risks, market spreads or other applicable factors or events, the investment performance of the Fund would diminish compared with what it would have been if these techniques were not used.

Technology Company Investment Risk. A substantial portion of the securities represented in the applicable index are in the technology sector. As a result, the Fund may invest a substantial portion of its assets in technology companies. The market prices of technology-related stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments. These stocks may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. Technology stocks also may be affected adversely by changes in technology, consumer and business purchasing patterns, government regulation and/or obsolete products or services.

Valuation Risk. The securities in which the Fund invests typically are valued by a pricing service utilizing a range of market-based inputs and assumptions, including readily available market quotations obtained from broker-dealers making markets in such instruments, cash flows and transactions for comparable instruments. There is no assurance that the Fund will be able to sell a portfolio security at the price established by the pricing service, which could result in a loss to the Fund. Pricing services generally price securities assuming orderly transactions of an institutional “round lot” size, but some trades may occur in smaller, “odd lot” sizes, often at lower prices than institutional round lot trades. Different pricing services may incorporate different assumptions and inputs into their valuation methodologies, potentially resulting in different values for the same securities. As a result, if the Fund were to change pricing services, or if the Fund’s pricing service were to change its valuation methodology, there could be a material impact, either positive or negative, on the Fund’s NAV.

Fund Level and Other Risks:

Anti-Takeover Provisions. The Fund’s organizational documents include provisions that could limit the ability of other entities or persons to acquire control of the Fund or convert the Fund to open-end status.

Borrowing Risk. The Fund may borrow for temporary or emergency purposes. Borrowing may exaggerate changes in the NAV of the Fund’s shares and may affect the Fund’s net income. When the Fund borrows money, it must pay interest and other fees, which will reduce the Fund’s returns if such costs exceed the returns on the portfolio securities purchased or retained with such borrowings. Any such borrowings are intended to be temporary. However, under certain market circumstances, such borrowings might be outstanding for longer periods of time.

Cybersecurity Risk. The Fund and its service providers are susceptible to operational and information security risk resulting from cyber incidents. Cyber incidents refer to both intentional attacks and unintentional events including: processing errors, human errors, technical errors including computer glitches and system malfunctions, inadequate or failed internal or external processes, market-wide technical-related disruptions, unauthorized access to digital systems (through “hacking” or malicious software coding), computer viruses, and cyber-attacks which shut down, disable, slow or otherwise disrupt operations, business processes or website access or functionality (including denial of service attacks). Cyber incidents could adversely impact the Fund and cause the Fund to incur financial loss and expense, as well as face exposure to regulatory penalties, reputational damage, and additional compliance costs associated with corrective measures. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. Furthermore, the Fund cannot control the cybersecurity plans and systems put in place by its service providers or any other third parties whose operations may affect the Fund.

Global Economic Risk. National and regional economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country, region or market might adversely impact issuers in a different country, region or market. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and assets prices around the world, which could negatively impact the value of the Fund’s investments. Major economic or political disruptions, particularly in large economies like China’s, may have global negative economic and market repercussions. Additionally, instability in various countries, such as Afghanistan and Syria, war, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies , terrorist attacks in the United States and around the world, growing social and political discord in the United States, the European debt crisis, the response of the international community—through economic sanctions and otherwise—to international events, further downgrade of U.S. government securities, changes in the U.S. president or political shifts in Congress and other similar events may adversely affect the global economy and the markets and issuers in which the Fund invests. Recent examples of such events include Hamas’ attack on Israel in October 2023 and the ensuing conflict, the outbreak of a novel coronavirus known

 

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as COVID-19 that was first detected in China in December 2019 and heightened concerns regarding North Korea’s nuclear weapons and long-range ballistic missile programs. In addition, Russia’s invasion of Ukraine in February 2022 has resulted in sanctions imposed by several nations, such as the United States, United Kingdom, European Union and Canada. The current sanctions and potential further sanctions may negatively impact certain sectors of Russia’s economy, but also may negatively impact the value of the Fund’s investments that do not have direct exposure to Russia. These events could reduce consumer demand or economic output, result in market closure, travel restrictions or quarantines, and generally have a significant impact on the global economy. These events could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Fund’s sub-adviser, rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund.

The Fund does not know and cannot predict how long the securities markets may be affected by these events and the future impact of these and similar events on the global economy and securities markets is uncertain. The Fund may be adversely affected by abrogation of international agreements and national laws which have created the market instruments in which the Fund may invest, failure of the designated national and international authorities to enforce compliance with the same laws and agreements, failure of local, national and international organizations to carry out the duties prescribed to them under the relevant agreements, revisions of these laws and agreements which dilute their effectiveness or conflicting interpretation of provisions of the same laws and agreements.

Governmental and quasi-governmental authorities and regulators throughout the world have in the past responded to major economic disruptions with a variety of significant fiscal and monetary policy changes, including but not limited to, direct capital infusions into companies, new monetary programs and dramatically lower interest rates. An unexpected or quick reversal of these policies, or the ineffectiveness of these policies, could increase volatility in securities markets, which could adversely affect the Fund’s investments.

Investment and Market Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Common shares frequently trade at a discount to their NAV. An investment in common shares represents an indirect investment in the securities owned by the Fund. Common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.

Legislation and Regulatory Risk. At any time after the date of this report, legislation or additional regulations may be enacted that could negatively affect the assets of the Fund, securities held by the Fund or the issuers of such securities. Fund shareholders may incur increased costs resulting from such legislation or additional regulation. There can be no assurance that future legislation, regulation or deregulation will not have a material adverse effect on the Fund or will not impair the ability of the Fund to achieve its investment objectives.

Market Discount from Net Asset Value. Shares of closed-end investment companies like the Fund frequently trade at prices lower than their NAV. This characteristic is a risk separate and distinct from the risk that the Fund’s NAV could decrease as a result of investment activities. Whether investors will realize gains or losses upon the sale of the common shares will depend not upon the Fund’s NAV but entirely upon whether the market price of the common shares at the time of sale is above or below the investor’s purchase price for the common shares. Furthermore, management may have difficulty meeting the Fund’s investment objectives and managing its portfolio when the underlying securities are redeemed or sold during periods of market turmoil and as investors’ perceptions regarding closed-end funds or their underlying investments change. Because the market price of the common shares will be determined by factors such as relative supply of and demand for the common shares in the market, general market and economic circumstances, and other factors beyond the control of the Fund, the Fund cannot predict whether the common shares will trade at, below or above NAV. The common shares are designed primarily for long-term investors, and you should not view the Fund as a vehicle for short-term trading purposes.

Non-Diversified Status Risk. Because the Fund is classified as “non-diversified” under the 1940 Act, it can invest a greater portion of its assets in obligations of a single issuer than a “diversified” fund. As a result, the Fund will be more susceptible than a diversified fund to fluctuations in the prices of securities of a single issuer.

Not an Index Fund. The Fund is not, nor is it intended to be, an index fund. As a result, the performance of the Fund will differ from the performance of the index as a whole for various reasons, including the fact that the Fund will write call options on a portion of its equity portfolio and the weightings of the securities included in the Fund’s equity portfolio may be different than the weightings of the common stocks in the index. The Fund, by writing call options on its equity portfolio, will give up the opportunity to benefit from potential increases in the value of the Fund’s equity portfolio above the exercise prices of the options, but will continue to bear the risk of declines in the value of the Fund’s equity portfolio.

Recent Market Conditions. Periods of unusually high financial market volatility and restrictive credit conditions, at times limited to a particular sector or geographic area, have occurred in the past and may be expected to recur in the future. Some countries, including the United States, have adopted or have signaled protectionist trade measures, relaxation of the financial industry regulations that followed the financial crisis, and/ or reductions to corporate taxes. The scope of these policy changes is still developing, but the equity and debt markets may react strongly to expectations of change, which could increase volatility, particularly if a resulting policy runs counter to the market’s expectations. The outcome of such changes cannot be foreseen at the present time. In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in the world economy and markets generally. As a result of increasingly interconnected global economies and financial markets, the value and liquidity of the Fund’s investments may be negatively affected by events impacting a country or region, regardless of whether the Fund invests in issuers located in or with significant exposure to such country or region.

Ukraine has experienced ongoing military conflict, most recently in February 2022 when Russia invaded Ukraine; this conflict may expand and military attacks could occur elsewhere in Europe. Europe has also been struggling with mass migration from the Middle East and Africa. The ultimate effects of these events and other socio-political or geographical issues are not known but could profoundly affect global economies and markets. Additionally, in October 2023 armed conflict broke out between Israel and the militant group Hamas after Hamas infiltrated Israel’s southern border

 

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Shareholder Update (Unaudited) (continued)

 

from the Gaza Strip. Israel has since declared war against Hamas and it’s possible that this conflict could escalate into a greater regional conflict. The ultimate effects of these events and other socio-political or geographical issues are not known but could profoundly affect global economies and markets.

The ongoing trade war between China and the United States, including the imposition of tariffs by each country on the other country’s products, has created a tense political environment. These actions may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, substantial price reductions of goods and possible failure of individual companies and/or large segments of China’s export industry, which could have a negative impact on the Fund’s performance. U.S. companies that source material and goods from China and those that make large amounts of sales in China would be particularly vulnerable to an escalation of trade tensions. Uncertainty regarding the outcome of the trade tensions and the potential for a trade war could cause the U.S. dollar to decline against safe haven currencies, such as the Japanese yen and the euro. Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other escalating actions may be taken in the future.

The U.S. Federal Reserve (the “Fed”) has in the past raised interest rates and has signaled an intention to continue to do so or maintain higher interest rates until current inflation levels re-align with the Fed’s long-term inflation target. Changing interest rate environments impact the various sectors of the economy in different ways. For example, in March 2023, the Federal Deposit Insurance Corporation (“FDIC”) was appointed receiver for each of Silicon Valley Bank and Signature Bank, the second- and third-largest bank failures in U.S. history, which failures may be attributable, in part, to rising interest rates. Bank failures may have a destabilizing impact on the broader banking industry or markets generally.

The impact of these developments in the near- and long-term is unknown and could have additional adverse effects on economies, financial markets and asset valuations around the world.

Fund Tax Risk. The Fund has elected to be treated and intends to qualify each year as a Regulated Investment Company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”). As a RIC, the Fund is not expected to be subject to U.S. federal income tax to the extent that it distributes its investment company taxable income and net capital gains. To qualify for the special tax treatment available to a RIC, the Fund must comply with certain investment, distribution, and diversification requirements. Under certain circumstances, the Fund may be forced to sell certain assets when it is not advantageous in order to meet these requirements, which may reduce the Fund’s overall return. If the Fund fails to meet any of these requirements, subject to the opportunity to cure such failures under applicable provisions of the Code, the Fund’s income would be subject to a double level of U.S. federal income tax. The Fund’s income, including its net capital gain, would first be subject to U.S. federal income tax at regular corporate rates, even if such income were distributed to shareholders and, second, all distributions by the Fund from earnings and profits, including distributions of net capital gain (if any), would be taxable to shareholders as dividends.

 

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DIVIDEND REINVESTMENT PLAN

Nuveen Closed-End Funds Automatic Reinvestment Plan

Your Nuveen Closed-End Fund allows you to conveniently reinvest distributions in additional Fund shares. By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.

Easy and convenient

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

How shares are purchased

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

Flexible

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment adviser if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.

Call today to start reinvesting distributions

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

 

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Shareholder Update (Unaudited) (continued)

 

CHANGES OCCURRING DURING THE FISCAL YEAR

The following information in this annual report is a summary of certain changes during the most recent fiscal year. This information may not reflect all of the changes that have occurred since you purchased shares of a Fund.

During the most recent fiscal year, there have been no changes required to be reported in connection with: (i) the Funds’ investment objectives and principal investment policies that have not been approved by shareholders, (ii) the principal risks of the Fund, (iii) the portfolio managers of the Funds; (iv) a Fund’s charter or by-laws that would delay or prevent a change of control of the Fund that have not been approved by shareholders, except as follows:

Amended and Restated Bylaws

On October 5, 2020, the Nuveen S&P 500 Buy-Write Income Fund, Nuveen Dow 30SM Dynamic Overwrite Fund, Nuveen S&P 500 Dynamic Overwrite Fund, Nuveen Nasdaq 100 Dynamic Overwrite Fund, and Nuveen Core Equity Alpha Fund (each a “Fund” and collectively the “Funds”) and certain other closed-end funds in the Nuveen fund complex amended their by-laws. Among other things, the amended by-laws included provisions pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares in a Control Share Acquisition (as defined in the by-laws) shall have the same voting rights as other common shareholders only to the extent authorized by the other disinterested shareholders (the “Control Share By-Law”). On January 14, 2021, a shareholder of certain Nuveen closed-end funds filed a civil complaint in the U.S. District Court for the Southern District of New York (the “District Court”) against certain Nuveen funds and their trustees, seeking a declaration that such funds’ Control Share By-Laws violate the 1940 Act, rescission of such fund’s Control Share By-Laws and a permanent injunction against such funds applying the Control Share By-Laws. On February 18, 2022, the District Court granted judgment in favor of the plaintiff’s claim for rescission of such funds’ Control Share By-Laws and the plaintiff’s declaratory judgment claim, and declared that such funds’ Control Share By-Laws violate Section 18(i) of the 1940 Act. Following review of the judgment of the District Court, on February 22, 2022, the Board amended the Funds’ bylaws to provide that the Funds’ Control Share By-Law shall be of no force and effect for so long as the judgment of the District Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or otherwise nullified, the Fund’s Control Share By-Law will be automatically reinstated and apply to any beneficial owner of common shares acquired in a Control Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement, for the duration of the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of the District Court. On February 25, 2022, the Board and the Funds appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit. On November 30, 2023, the U.S. Court of Appeals for the Second Circuit upheld the opinion of the District Court.

Portfolio Managers

Nuveen S&P 500 Buy-Write Income Fund (“BXMX”)

Effective June 30, 2023, Mitchell Trotta has been added as a portfolio manager of BXMX. The day-to-day operation of BXMX and the execution of its specific investment strategies is the primary responsibility of each of BXMX’s portfolio managers. The biography of Mitchell Trotta is presented below:

 

  ·  

Mitchell Trotta joined Gateway Investment Advisers, LLC in 2016 and is a Portfolio Manager. Mr. Trotta is actively involved in the management of several mutual funds advised or sub-advised by the firm, in addition to the firm’s separate account strategies. In his role, Mr. Trotta is responsible for trading, providing analytical work supporting investment management decisions, and implementing the firm’s equity multi-factor model. Prior to joining Gateway, Mr. Trotta served as an associate for PNC Bank in the Asset Management Group. Mr. Trotta earned his BBA in Finance from the University of Cincinnati and is a CFA® charterholder.

 

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ADDITIONAL DISCLOSURES FOR CERTAIN FUNDS AS OF THE FISCAL YEAR ENDED DECEMBER 31, 2023

NUVEEN S&P 500 DYNAMIC OVERWRITE FUND (SPXX)

NUVEEN NASDAQ 100 DYNAMIC OVERWRITE FUND (QQQX)

NUVEEN CORE EQUITY ALPHA FUND (JCE)

SUMMARY OF FUND EXPENSES

The purpose of the tables and the examples below are to help you understand all fees and expenses that you, as a common shareholder, would bear directly or indirectly. The tables show the expenses of each Fund as a percentage of the average net assets applicable to Common Shares and not as a percentage of total assets or managed assets.

 

Shareholder Transaction Expenses    SPXX              QQQX              JCE  

 

 

Maximum Sales Charge (as a percentage of offering price)

     4.00% (1)           4.00% (1)           1.00% (2)  

Dividend Reinvestment Plan Fees (3)

     $2.50           $2.50           $2.50  

 

 

 

(1)

A maximum sales charge of 4.00% applies only to offerings pursuant to a syndicated underwriting. The maximum sales charge for offerings made at-the-market is 1.00%. There is no sales charge for offerings pursuant to a private transaction.

(2)

The maximum sales charge for offerings made at-the-market is 1.00%. If the Common Shares are sold to or through underwriters in an offering that is not made at-the-market, the applicable Prospectus Supplement will set forth any other applicable sales load and the estimated offering expenses. Fund shareholders will pay all offering expenses involved with an offering.

(3)

You will be charged a $2.50 service charge and pay brokerage charges if you direct Computershare Inc. and Computershare Trust Company, N.A., as agent for the common shareholders, to sell your Common Shares held in a dividend reinvestment account.

 

           As a Percentage of Net Assets Attributable
to Common Shares (1)
 
Annual Expenses    SPXX        QQQX        JCE  

 

 

Management Fees

     0.82%          0.83%          0.91%  

Acquired Fund Fees and Expenses

     0.01%          0.00% (2)          0.00% (2)  

Other Expenses (3)

     0.12%          0.09%          0.11%  

 

 

Total Annual Expenses

     0.95%          0.92%          1.02%  

 

 

 

(1)

Stated as percentages of average net assets attributable to Common Shares for the fiscal year ended December 31, 2023.

(2)

Expenses attributable to the Fund’s investments, if any, in other investment companies are currently estimated not to exceed 0.01%.

(3)

Other Expenses are based on estimated amounts for the current fiscal year.

 

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Shareholder Update (Unaudited) (continued)

 

Examples

The following examples illustrate the expenses, including the applicable transaction fees (referred to as the “Maximum Sales Charge” in the Shareholder Transaction Expenses table above), if any, that a common shareholder would pay on a $1,000 investment that is held for the time periods provided in the table. Each example assumes that all dividends and other distributions are reinvested in the Fund and that the Fund’s Annual Expenses, as provided above, remain the same. The examples also assume a 5% annual return. Actual expenses may be greater or less than those assumed. Moreover, the Fund’s actual rate of return may be greater or less than the hypothetical 5% return shown in the examples.

Example # 1 (At-the-Market Transaction)

The following example assumes a transaction fee of 1.00%, as a percentage of the offering price.

 

     1 Year           3 Years           5 Years           10 Years  

 

 

SPXX

     $20           $40           $62           $125  

 

 

QQQX

     $19           $39           $60           $122  

 

 

JCE

     $20           $42           $66           $134  

 

 

Example # 2 (Underwriting Syndicate Transaction)

The following example assumes a transaction fee of 4.00%, as a percentage of the offering price.

 

     1 Year           3 Years           5 Years           10 Years  

 

 

SPXX

     $49           $69           $90           $152  

 

 

QQQX

     $49           $68           $89           $149  

 

 

Example # 3 (Privately Negotiated Transaction)

The following example assumes there is no transaction fee.

 

     1 Year           3 Years           5 Years           10 Years  

 

 

SPXX

     $10           $30           $53           $117  

 

 

QQQX

     $9           $29           $51           $113  

 

 

The examples should not be considered a representation of future expenses. Actual expenses may be greater or less than those shown above.

 

110


  

 

TRADING AND NET ASSET VALUE INFORMATION

The following table shows for the periods indicated: (i) the high and low market prices for the Common Shares of Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and Nuveen Core Equity Alpha Fund (JCE) reported as of the end of the day on the New York Stock Exchange (NYSE) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) reported as of the end of the day on the Nasdaq Stock Market LLC (Nasdaq), (ii) the high and low net asset value (NAV) of the Common Shares, and (iii) the high and low of the premium/(discount) to NAV (expressed as a percentage) of shares of the Common Shares.

SPXX

 

    Market Price      NAV      Premium/(Discount)
to NAV
Fiscal Quarter End      High         Low           High         Low            High        Low 

December 2023

    $15.09          $13.60          $16.39          $14.93          (4.00)        (9.53)

September 2023

    $15.90          $14.56          $16.64          $15.39          (3.08)        (8.88)

June 2023

    $15.83          $14.83          $16.38          $15.42          0.70        (5.39)

March 2023

    $16.36          $14.81          $15.79          $14.71          8.92        (1.84)

December 2022

    $17.87          $15.01          $15.63          $14.04          16.12        6.91

September 2022

    $16.78          $15.01          $16.68          $14.04          7.85        (0.97)

June 2022

    $18.18          $14.87          $18.18          $14.91          3.06        (5.42)

March 2022

    $18.82          $16.48          $18.82          $16.80          0.95        (4.30)

QQQX

 

    Market Price      NAV      Premium/(Discount)
to NAV
Fiscal Quarter End      High         Low           High         Low            High        Low 

December 2023

    $23.53          $20.33          $24.75          $22.13          (2.13)        (9.22)

September 2023

    $25.19          $21.72          $24.91          $22.72          3.21        (6.39)

June 2023

    $25.87          $22.95          $24.54          $22.10          6.32        1.90

March 2023

    $23.98          $20.43          $22.60          $19.29          10.16        4.18

December 2022

    $23.42          $20.00          $21.49          $19.18          11.19        2.50

September 2022

    $25.08          $20.51          $24.52          $19.93          3.59        0.00

June 2022

    $28.77          $21.14          $27.84          $21.28          4.18        (1.09)

March 2022

    $30.83          $24.79          $29.97          $24.51          3.83        (4.97)

JCE

 

    Market Price      NAV      Premium/(Discount)
to NAV
Fiscal Quarter End      High         Low           High         Low            High        Low 

December 2023

    $14.02          $11.65          $13.49          $12.01          4.41        (3.00)

September 2023

    $13.16          $12.12          $13.55          $12.40          (0.08)        (4.44)

June 2023

    $12.90          $11.82          $13.31          $12.43          (1.51)        (6.39)

March 2023

    $13.54          $11.82          $12.96          $11.90          12.46        (3.24)

December 2022

    $16.17          $12.12          $13.07          $11.58          30.09        (1.70)

September 2022

    $16.13          $11.93          $15.10          $12.33          8.16        (4.56)

June 2022

    $17.45          $12.62          $16.46          $13.07          6.86        (5.72)

March 2022

    $18.58          $14.69          $17.44          $15.09          7.61        (5.69)

 

111


Shareholder Update (Unaudited) (continued)

 

The following table shows, as of December 31, 2023 each Fund’s: (i) NAV per Common Share, (ii) market price, (iii) percentage of premium/(discount) to NAV per Common Share and, (iv) net assets attributable to Common Shares.

 

December 31, 2023   SPXX     QQQX     JCE  

 

 

NAV per Common Share

          $ 16.29             $ 24.68         $ 13.28  

Market Price

      $ 15.04         $ 23.15         $ 13.55  

Percentage of Premium/(Discount) to NAV per Common Share

      (7.67)%         (6.20)%         2.03%  

Net Assets Attributable to Common Shares

      $ 292,557,743         $ 1,204,825,050         $ 213,669,234  

 

 

Shares of closed-end investment companies, including those of the Funds, may frequently trade at prices lower than NAV, the Funds’ Board of Trustees (Board) has currently determined that, at least annually, it will consider action that might be taken to reduce or eliminate any material discount from NAV in respect of Common Shares, which may include the repurchase of such shares in the open market or in private transactions, the making of a tender offer for such shares at NAV, or the conversion of the Fund to an open-end investment company. The Funds cannot assure you that their Board will decide to take any of these actions, or that share repurchases or tender offers will actually reduce market discount.

UNRESOLVED STAFF COMMENTS

Each Fund believes that there are no material unresolved written comments, received 180 days or more before December 31, 2023, from the Staff of the Securities and Exchange Commission (SEC) regarding any of its periodic or current reports under the Securities Exchange Act or Investment Company Act of 1940, or its registration statement, if applicable.

 

112


Important Tax Information

(Unaudited)

 

As required by the Internal Revenue Code and Treasury Regulations, certain tax information, as detailed below, must be provided to shareholders. Shareholders are advised to consult their tax advisor with respect to the tax implications of their investment. The amounts listed below may differ from the actual amounts reported on Form 1099-DIV, which will be sent to shareholders shortly after calendar year end.

Long-Term Capital Gains

As of year end, each Fund designates the following distribution amounts, or maximum amount allowable, as being from net long-term capital gains pursuant to Section 852(b)(3) of the Internal Revenue Code:

 

Fund   

Net Long-Term

Capital Gains

 

 

 

BXMX

     $41,451,927  

DIAX

     3,462,843  

SPXX

     11,285,738  

QQQX

     54,256,301  

JCE

     279,670  

 

 

Dividends Received Deduction (DRD)

Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders:

 

Fund    Percentage  

 

 

BXMX

     70.5%  

DIAX

     100.0 

SPXX

     100.0 

QQQX

     100.0 

JCE

     100.0 

 

 

Qualified Dividend Income (QDI)

Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions treated as qualified dividend income for individuals pursuant to Section 1(h)(11) of the Internal Revenue Code:

 

Fund    Percentage  

 

 

BXMX

     73.7%  

DIAX

     100.0 

SPXX

     100.0 

QQQX

     100.0 

JCE

     100.0 

 

 

Qualified Interest Income (QII)

Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions treated as qualified interest income and/or short-term capital gain dividends pursuant to Section 871(k) of the Internal Revenue Code:

 

Fund   

1/1 to Current

Year End

Percentage

 

 

 

BXMX

     4.9%  

DIAX

     0.2 

SPXX

     0.2 

QQQX

     –     

JCE

     0.4 

 

 

 

113


Important Tax Information (Unaudited) (continued)

 

Qualified Business Income (QBI)

Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary income distributions treated as qualified business income for individuals pursuant to Section 199A of the Internal Revenue Code:

 

Fund    Percentage  

 

 

BXMX

     1.4%  

DIAX

     –%   

SPXX

     –%   

QQQX

     –%   

JCE

     –%   

 

 

163(j)

Each Fund listed below had the following percentage, or maximum amount allowable, of ordinary dividends treated as Section 163(j) interest dividends pursuant to Section 163(j) of the Internal Revenue Code:

 

Fund    Percentage  

 

 

BXMX

     1.9%  

DIAX

     0.2  

SPXX

     0.2  

QQQX

     –      

JCE

     0.4  

 

 

 

114


Additional Fund Information

(Unaudited)

 

Board of Trustees

 

      Michael A.            
Joseph A. Boateng*    Jack B. Evans**    Forrester*    William C. Hunter**      Thomas J. Kenny***    Amy B.R. Lancellotta    Joanne T. Medero
Albin F. Moschner    John K. Nelson    Loren M. Starr***    Matthew Thornton
III
   Terence J. Toth    Margaret L. Wolff    Robert L. Young

* Serves as a consultant effective January 1, 2024.

** Retired from the Funds’ Board of Trustees effective December 31, 2023.

*** Effective January 1, 2024.

 

 

 

Investment Adviser    Custodian    Legal Counsel    Independent Registered    Transfer Agent and

Nuveen Fund Advisors, LLC

333 West Wacker Drive

Chicago, IL 60606

  

State Street Bank

& Trust Company

One Congress Street

  

Chapman and Cutler

LLP

Chicago, IL 60603

   Public Accounting Firm

PricewaterhouseCoopers

LLP

   Shareholder Services
Computershare Trust Company,

N.A.

  

Suite 1

Boston, MA 02114-2016

      One North Wacker Drive

Chicago, IL 60606

   150 Royall Street

Canton, MA 02021

(800) 257-8787

 

   

Portfolio of Investments Information Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. You may obtain this information on the SEC’s website at http://www.sec.gov.

   

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

   

CEO Certification Disclosure Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

   

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

 

      BXMX      DIAX      SPXX      QQQX      JCE  

Common shares repurchased

     0        0        0        0        0  

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

 

115


Glossary of Terms Used in this Report

(Unaudited)

 

19(a) Notice: Section 19(a) of the Investment Company Act of 1940 requires that the payment of any distribution which is made from a source other than the fund’s net income be accompanied by a written notice that discloses the estimated sources of such payment.

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

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

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

 

116


Board Members & Officers

(Unaudited)

 

The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each Trustee oversees and other directorships they hold are set forth below.

 

Name,

Year of Birth

& Address

  

Position(s) Held

with the Funds

 

Year First

Elected or

Appointed

and Term(1)

    

Principal Occupation(s)

Including other Directorships

During Past 5 Years

  

Number of

Portfolios

in Fund

Complex

Overseen By

Board Member 

Independent Trustees:                       

Terence J. Toth

1959

333 W. Wacker Drive

Chicago, IL 60606

   Co-Chair and Board Member    

2008 

Class II

 

 

   Formerly, a Co-Founding Partner, Promus Capital (investment advisory firm) (2008-2017); formerly, Director, Quality Control Corporation (manufacturing) (2012-2021); Chair of the Board of the Kehrein Center for the Arts (philanthropy) (since 2021); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (philanthropy) (since 2012), formerly, Chair of its Investment Committee (2017-2022); formerly, Member, Chicago Fellowship Board (philanthropy) (2005-2016); formerly, Director, Fulcrum IT Services LLC (information technology services firm to government entities) (2010-2019); formerly, Director, LogicMark LLC (health services) (2012-2016); formerly, Director, Legal & General Investment Management America, Inc. (asset management) (2008-2013); formerly, CEO and President, Northern Trust Global Investments (financial services) (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (financial services) (since 1994); formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003- 2007) and Northern Trust Hong Kong Board (1997-2004).    211
         

Joseph A. Boateng

1963

730 Third Avenue

New York, NY 10017

   Board Member    

2024 

Class II

 

 

   Chief Investment Officer, Casey Family Programs (since 2007). Director of U.S. Pension Plans, Johnson & Johnson (2002-2006); Board Member, Lumina Foundation; and Waterside School; Emeritus Board Member, Year-Up Puget Sound; Investment Advisory Committee Member, Seattle City Employees’ Retirement System; Investment Committee Member, The Seattle Foundation.    190

Michael A. Forrester

1967

730 Third Avenue

New York, NY 10017

   Board Member    

2024 

Class I

 

 

   Chief Executive Officer (2014–2021) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC; Trustee, Dexter Southfield School; Member, Governing Council of the Independent Directors Council.    190
         

Thomas J. Kenny

1963

730 Third Avenue

New York, NY 10017

   Co-Chair and Board Member    

2024 

Class I

 

 

   Advisory Director (2010–2011), Partner (2004–2010), Managing Director (1999–2004) and Co-Head of Global Cash and Fixed Income Portfolio Management Team (2002–2010), Goldman Sachs Asset Management; Director and Chair of the Finance and Investment Committee, Aflac Incorporated; Director, ParentSquare.    211

Amy B. R. Lancellotta

1959

333 W. Wacker Drive

Chicago, IL 60606

   Board Member    

2021 

Class II

 

 

   Formerly, Managing Director, Independent Directors Council (IDC) (supports the fund independent director community and is part of the Investment Company Institute (ICI), which represents regulated investment companies) (2006-2019); formerly, various positions with ICI (1989-2006); President (since 2023) and Member (since 2020) of the Board of Directors, Jewish Coalition Against Domestic Abuse (JCADA).    211

 

117


Board Members & Officers (Unaudited) (continued)

 

Name,

Year of Birth

& Address

  

Position(s) Held

with the Funds

 

Year First

Elected or

Appointed

and Term(1)

    

Principal Occupation(s)

Including other Directorships

During Past 5 Years

  

Number of

Portfolios

in Fund

Complex

Overseen By

Board Member 

Joanne T. Medero

1954

333 W. Wacker Drive

Chicago, IL 60606

   Board Member    

2021 

Class III

 

 

   Formerly, Managing Director, Government Relations and Public Policy (2009-2020) and Senior Advisor to the Vice Chairman (2018- 2020), BlackRock, Inc. (global investment management firm); formerly, Managing Director, Global Head of Government Relations and Public Policy, Barclays Group (IBIM) (investment banking, investment management and wealth management businesses) (2006-2009); formerly, Managing Director, Global General Counsel and Corporate Secretary, Barclays Global Investors (global investment management firm) (1996-2006); formerly, Partner, Orrick, Herrington & Sutcliffe LLP (law firm) (1993-1995); formerly, General Counsel, Commodity Futures Trading Commission (government agency overseeing U.S. derivatives markets) (1989-1993); formerly, Deputy Associate Director/Associate Director for Legal and Financial Affairs, Office of Presidential Personnel, The White House (1986-1989); Member of the Board of Directors, Baltic-American Freedom Foundation (seeks to provide opportunities for citizens of the Baltic states to gain education and professional development through exchanges in the U.S.) (since 2019).    211

Albin F. Moschner

1952

333 W. Wacker Drive

Chicago, IL 60606

   Board Member    

2016 

Class III

 

 

   Founder and Chief Executive Officer, Northcroft Partners, LLC, (management consulting) (since 2012); formerly, Chairman (2019), and Director (2012-2019), USA Technologies, Inc., (provider of solutions and services to facilitate electronic payment transactions); formerly, Director, Wintrust Financial Corporation (1996-2016); previously, held positions at Leap Wireless International, Inc. (consumer wireless services), including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (telecommunication services) (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (internet technology provider) (1996-1997); formerly, various executive positions (1991-1996) including Chief Executive Officer (1995-1996) of Zenith Electronics Corporation (consumer electronics).    211
         

John K. Nelson

1962

333 W. Wacker Drive

Chicago, IL 60606

   Board Member    

2013 

Class II

 

 

   Member of Board of Directors of Core12 LLC. (private firm which develops branding, marketing and communications strategies for clients) (since 2008); served The President’s Council of Fordham University (2010-2019) and previously a Director of the Curran Center for Catholic American Studies (2009-2018); formerly, senior external advisor to the Financial Services practice of Deloitte Consulting LLP. (2012-2014); former Chair of the Board of Trustees of Marian University (2010-2014 as trustee, 2011-2014 as Chair); formerly Chief Executive Officer of ABN AMRO Bank N.V., North America, and Global Head of the Financial Markets Division (2007-2008), with various executive leadership roles in ABN AMRO Bank N.V. between 1996 and 2007.    211

Loren M. Starr

1961

730 Third Avenue

New York, NY 10017

   Board Member    

2024 

Class III

 

 

   Independent Consultant/Advisor (since 2021). Vice Chair, Senior Managing Director (2020–2021), Chief Financial Officer, Senior Managing Director (2005–2020), Invesco Ltd.; Director, AMG.    210

 

118


 

Name,

Year of Birth

& Address

  

Position(s) Held

with the Funds

  

Year First

Elected or

Appointed

and Term(1)

    

Principal Occupation(s)

Including other Directorships

During Past 5 Years

  

Number of

Portfolios

in Fund

Complex

Overseen By

Board Member 

Matthew Thornton III

1958

333 W. Wacker Drive

Chicago, IL 60606

   Board Member     

2020 

Class III

 

 

   Formerly, Executive Vice President and Chief Operating Officer (2018-2019), FedEx Freight Corporation, a subsidiary of FedEx Corporation (FedEx) (provider of transportation, e-commerce and business services through its portfolio of companies); formerly, Senior Vice President, U.S. Operations (2006-2018), Federal Express Corporation, a subsidiary of FedEx; formerly Member of the Board of Directors (2012-2018), Safe Kids Worldwide® (a non-profit organization dedicated to preventing childhood injuries). Member of the Board of Directors (since 2014), The Sherwin-Williams Company (develops, manufactures, distributes and sells paints, coatings and related products); Director (since 2020), Crown Castle International (provider of communications infrastructure).    211
         

Margaret L. Wolff

1955

333 W. Wacker Drive

Chicago, IL 60606

   Board Member     

2016 

Class I

 

 

   Formerly, member of the Board of Directors (2013-2017) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (legal services) (2005- 2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) formerly, Chair (2015- 2022) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College.    211

Robert L. Young

1963

333 W. Wacker Drive

Chicago, IL 60606

   Board Member     

2017 

Class I

 

 

   Formerly, Chief Operating Officer and Director, J.P. Morgan Investment Management Inc. (financial services) (2010-2016); formerly, President and Principal Executive Officer (2013-2016), and Senior Vice President and Chief Operating Officer (2005-2010), of J.P. Morgan Funds; formerly, Director and various officer positions for J.P. Morgan Investment Management Inc. (formerly, JPMorgan Funds Management, Inc. and formerly, One Group Administrative Services) and JPMorgan Distribution Services, Inc. (financial services) (formerly, One Group Dealer Services, Inc.) (1999-2017).    211

Name,

Year of Birth

& Address

   Position(s) Held with the Funds     

Year First

Elected or

Appointed(2)

 

 

 

  

Principal Occupation(s)

Including other Directorships

During Past 5 Years

    
Officers of the Funds:            
       

David J. Lamb

 

1963

 

333 W. Wacker Drive

Chicago, IL 60606

   Chief Administrative Officer      2015       Managing Director of Nuveen Fund Advisors, LLC; Senior Managing Director of Nuveen Securities, LLC; Senior Managing Director of Nuveen; has previously held various positions with Nuveen.

Brett E. Black

1972

333 W. Wacker Drive

Chicago, IL 60606

   Vice President and Chief Compliance Officer      2022       Managing Director, Chief Compliance Officer of Nuveen; formerly, Vice President (2014-2022), Chief Compliance Officer and Anti-Money Laundering Compliance Officer (2017-2022) of BMO Funds, Inc.

Mark J. Czarniecki

1979

901 Marquette Avenue

Minneapolis, MN 55402

   Vice President and Assistant Secretary      2013       Managing Director and Assistant Secretary of Nuveen Securities, LLC and Nuveen Fund Advisors, LLC; Managing Director and Associate General Counsel of Nuveen; Managing Director Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC; has previously held various positions with Nuveen; Managing Director, Associate General Counsel and Assistant Secretary of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC.

 

119


Board Members & Officers (Unaudited) (continued)

 

Name,

Year of Birth

& Address

  

Position(s) Held

with the Funds

 

Year First

Elected or

Appointed(2)

      

Principal Occupation(s)

Including other Directorships

During Past 5 Years

Jeremy D. Franklin

1983

8500 Andrew Carnegie Blvd.

Charlotte, NC 28262

   Vice President and Assistant Secretary     2024         Vice President and Assistant Secretary, Nuveen Fund Advisors, LLC; Vice President Associate General Counsel and Assistant Secretary, Nuveen Asset Management, LLC, Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; Vice President and Associate General Counsel, Teachers Insurance and Annuity Association of America; Vice President and Assistant Secretary, TIAA-CREF Funds and TIAA-CREF Life Funds; Vice President, Associate General Counsel, and Assistant Secretary, TIAA Separate Account VA-1 and College Retirement Equities Fund.
       

Diana R. Gonzalez

1978

8500 Andrew Carnegie Blvd.

Charlotte, NC 28262

   Vice President and Assistant Secretary     2017         Vice President and Assistant Secretary of Nuveen Fund Advisors, LLC; Vice President, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC, Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; Vice President and Associate General Counsel of Nuveen.

Nathaniel T. Jones

1979

333 W. Wacker Drive

Chicago, IL 60606

   Vice President and Treasurer     2016         Senior Managing Director of Nuveen; Managing Director of Nuveen Fund Advisors, LLC; has previously held various positions with Nuveen; Chartered Financial Analyst.
       

Brian H. Lawrence

1982

8500 Andrew Carnegie

Blvd.

Charlotte, NC 28262

   Vice President and Assistant Secretary     2023         Vice President and Associate General Counsel of Nuveen; Vice President, Associate General Counsel and Assistant Secretary of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; formerly Corporate Counsel of Franklin Templeton (2018-2022).

Tina M. Lazar

1961

333 W. Wacker Drive

Chicago, IL 60606

   Vice President     2002         Managing Director of Nuveen Securities, LLC.
       

Brian J. Lockhart

1974

333 W. Wacker Drive

Chicago, IL 60606

   Vice President     2019         Senior Managing Director and Head of Investment Oversight of Nuveen; Managing Director of Nuveen Fund Advisors, LLC; has previously held various positions with Nuveen; Chartered Financial Analyst and Certified Financial Risk Manager.

John M. McCann

1975

8500 Andrew Carnegie Blvd.

Charlotte, NC 28262

   Vice President and Assistant Secretary     2022         Managing Director, General Counsel and Secretary of Nuveen Fund Advisors, LLC; Managing Director, Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary of TIAA SMA Strategies LLC; Managing Director, Associate General Counsel and Assistant Secretary of College Retirement Equities Fund, TIAA Separate Account VA-1, TIAA-CREF Funds, TIAA-CREF Life Funds, Teachers Insurance and Annuity Association of America, Teacher Advisors LLC, TIAA-CREF Investment Management, LLC, and Nuveen Alternative Advisors LLC; has previously held various positions with Nuveen/TIAA.
       

Kevin J. McCarthy

1966

333 W. Wacker Drive

Chicago, IL 60606

   Vice President and Assistant Secretary     2007         Executive Vice President, Secretary and General Counsel of Nuveen Investments, Inc.; Executive Vice President and Assistant Secretary of Nuveen Securities, LLC and Nuveen Fund Advisors, LLC; Executive Vice President and Secretary of Nuveen Asset Management, LLC; Executive Vice President, General Counsel and Secretary of Teachers Advisors, LLC, TIAA-CREF Investment Management, LLC and Nuveen Alternative Investments, LLC; Executive Vice President, Associate General Counsel and Assistant Secretary of TIAA-CREF Funds and TIAA-CREF Life Funds; has previously held various positions with Nuveen; Vice President and Secretary of Winslow Capital Management, LLC; formerly, Vice President (2007-2021) and Secretary (2016-2021) of NWQ Investment Management Company, LLC and Santa Barbara Asset Management, LLC.

Jon Scott Meissner 1973

8500 Andrew Carnegie Blvd.

Charlotte, NC 28262

   Vice President and Assistant Secretary     2019         Managing Director, Mutual Fund Tax and Expense Administration of Nuveen, TIAA- CREF Funds, TIAA-CREF Life Funds, TIAA Separate Account VA-1 and the CREF Accounts; Managing Director of Nuveen Fund Advisors, LLC, Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC; has previously held various positions with TIAA.

James Nelson III

1976

730 Third Avenue

New York, NY 10017

   Vice President     2024         Senior Managing Director, Global Head of Product, Publics, Nuveen; formerly, Head of North American Product Management & Pricing, Invesco (2018-2023).

 

120


 

Name,

Year of Birth

& Address

  

Position(s) Held

with the Funds

 

Year First

Elected or

Appointed(2)

    

Principal Occupation(s)

Including other Directorships

During Past 5 Years

Mary Beth Ramsay 1965

8500 Andrew Carnegie Blvd.

Charlotte, NC 28262

   Vice President   2024       Chief Risk Officer, Nuveen and TIAA Financial Risk; Head of Nuveen Risk & Compliance; Executive Vice President, Teachers Insurance and Annuity Association of America; formerly, Senior Vice President, Head of Sales and Client Solutions (2019-2022) and U.S. Chief Pricing Actuary (2016-2019), SCOR Global Life Americas; Member of the Board of Directors of Society of Actuaries.

William A. Siffermann

1975

333 W. Wacker Drive

Chicago, IL 60606

   Vice President   2017       Managing Director of Nuveen.

E. Scott Wickerham

1973

8500 Andrew Carnegie Blvd.

Charlotte, NC 28262

   Vice President and Controller   2019       Senior Managing Director, Head of Public Investment Finance of Nuveen; Senior Managing Director of Nuveen Fund Advisors, LLC and Nuveen Asset Management, LLC; Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Funds, the TIAA-CREF Life Funds, the TIAA Separate Account VA-1 and the CREF Accounts; has previously held various positions with TIAA.

Mark L. Winget

1968

333 W. Wacker Drive

Chicago, IL 60606

   Vice President and Secretary   2008       Vice President and Assistant Secretary of Nuveen Securities, LLC and Nuveen Fund Advisors, LLC; Vice President, Associate General Counsel and Assistant Secretary of Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC and Nuveen Asset Management, LLC; Vice President and Associate General Counsel of Nuveen.

Rachael Zufall

1973

8500 Andrew Carnegie Blvd.

Charlotte, NC 28262

   Vice President and Assistant Secretary   2022       Managing Director and Assistant Secretary of Nuveen Fund Advisors, LLC; Managing Director, Associate General Counsel and Assistant Secretary of the CREF Accounts, TIAA Separate Account VA-1, TIAA-CREF Funds and TIAA-CREF Life Funds; Managing Director, Associate General Counsel and Assistant Secretary of Teacher Advisors, LLC and TIAA-CREF Investment Management, LLC; Managing Director of Nuveen, LLC and of TIAA.

 

 

(1)

The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares, when applicable, to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen complex.

(2)

Officers serve indefinite terms until their successor has been duly elected and qualified, their death or their resignation or removal. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex.

 

121


 

 

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LOGO

 

Nuveen:

 

Serving Investors for Generations

 

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

 

Focused on meeting investor needs.

Nuveen is the investment manager of TIAA. We have grown into one of the world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create solutions which help them secure their financial future.

 

Find out how we can help you.

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

Learn more about Nuveen Funds at: www.nuveen.com/closed-end-funds

 

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

 

 

Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com    EAN-A-1223P     3342545-INV-Y-02/25


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/fund-governance. (To view the code, click on Code of Conduct.)

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant’s Board of Directors or Trustees (“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 experts are Joseph A. Boateng(1), Albin F. Moschner, John K. Nelson, Loren M. Starr(2) and Robert L. Young, who are “independent” for purposes of Item 3 of Form N-CSR.

Mr. Boateng has served as the Chief Investment Officer for Casey Family Programs since 2007. He was previously Director of U.S. Pension Plans for Johnson & Johnson from 2002-2006. Mr. Boateng is a board member of the Lumina Foundation and Waterside School, an emeritus board member of Year Up Puget Sound, member of the Investment Advisory Committee and former Chair for the Seattle City Employees’ Retirement System, and an Investment Committee Member for The Seattle Foundation. Mr. Boateng received a B.S. from the University of Ghana and an M.B.A. from the University of California, Los Angeles.

Mr. Moschner is a consultant in the wireless industry and, in July 2012, founded Northcroft Partners, LLC, a management consulting firm that provides operational, management and governance solutions. Prior to founding Northcroft Partners, LLC, Mr. Moschner held various positions at Leap Wireless International, Inc., a provider of wireless services, where he was as a consultant from February 2011 to July 2012, Chief Operating Officer from July 2008 to February 2011, and Chief Marketing Officer from August 2004 to June 2008. Before he joined Leap Wireless International, Inc., Mr. Moschner was President of the Verizon Card Services division of Verizon Communications, Inc. from 2000 to 2003, and President of One Point Services at One Point Communications from 1999 to 2000. Mr. Moschner also served at Zenith Electronics Corporation as Director, President and Chief Executive Officer from 1995 to 1996, and as Director, President and Chief Operating Officer from 1994 to 1995.

Mr. Nelson formerly served on the Board of Directors of Core12, LLC from 2008 to 2023, a private firm which develops branding, marketing, and communications strategies for clients. Mr. Nelson has extensive experience in global banking and markets, having served in several senior executive positions with ABN AMRO Holdings N.V. and its affiliated entities and predecessors, including LaSalle Bank Corporation from 1996 to 2008, ultimately serving as Chief Executive Officer of ABN AMRO N.V. North America. During his tenure at the bank, he also served as Global Head of its Financial Markets Division, which encompassed the bank’s Currency, Commodity, Fixed Income, Emerging Markets, and Derivatives businesses. He was a member of the Foreign Exchange Committee of the Federal Reserve Bank of the United States and during his tenure with ABN AMRO served as the bank’s representative on various committees of The Bank of Canada, European Central Bank, and The Bank of England. Mr. Nelson previously served as a senior, external advisor to the financial services practice of Deloitte Consulting LLP. (2012-2014).

Mr. Starr was Vice Chair, Senior Managing Director from 2020 to 2021, and Chief Financial Officer, Senior Managing Director from 2005 to 2020, for Invesco Ltd. Mr. Starr is also a Director and member of the Audit Committee for AMG. He is former Chair and member of the Board of Directors, Georgia Leadership Institute for School Improvement (GLISI); former Chair and member of the Board of Trustees, Georgia Council on Economic Education (GCEE).

Mr. Young has more than 30 years of experience in the investment management industry. From 1997 to 2017, he held various positions with J.P. Morgan Investment Management Inc. (“J.P. Morgan Investment”) and its affiliates (collectively, “J.P. Morgan”). Most recently, he served as Chief Operating Officer and Director of J.P. Morgan Investment (from 2010 to 2016) and as President and Principal Executive Officer of the J.P. Morgan Funds (from 2013 to 2016). As Chief Operating Officer of J.P. Morgan Investment, Mr. Young led service, administration and business platform support activities for J.P. Morgan’s domestic retail mutual fund and institutional commingled and separate account businesses, and co-led these activities for J.P. Morgan’s global retail and institutional investment management businesses. As President of the J.P. Morgan Funds, Mr. Young interacted with various service providers to these funds, facilitated the relationship between such funds and their boards, and was directly involved in establishing board agendas, addressing regulatory matters, and establishing policies and procedures. Before joining J.P. Morgan, Mr. Young, a former Certified Public Accountant (CPA), was a Senior Manager (Audit) with Deloitte & Touche LLP (formerly, Touche Ross LLP), where he was employed from 1985 to 1996. During his tenure there, he actively participated in creating, and ultimately led, the firm’s midwestern mutual fund practice.

 

 

(1) 

Mr. Boateng was elected or appointed as a board member of each of the Nuveen Funds except Nuveen Core Equity Alpha Fund, Nuveen Core Plus Impact Fund, Nuveen Credit Strategies Income Fund, Nuveen Dow 30SM Dynamic Overwrite Fund, Nuveen Floating Rate Income Fund, Nuveen Global High Income Fund, Nuveen Minnesota Quality Municipal Income Fund, Nuveen Missouri Quality Municipal Income Fund, Nuveen Mortgage and Income Fund, Nuveen Multi-Asset Income Fund, Nuveen Multi-Market Income Fund, Nuveen Municipal Credit Opportunities Fund, Nuveen NASDAQ 100 Dynamic Overwrite Fund, Nuveen Preferred and Income Term Fund, Nuveen Preferred & Income Opportunities Fund, Nuveen Real Asset Income and Growth Fund, Nuveen Real Estate Income Fund, Nuveen S&P 500 Dynamic Overwrite Fund, Nuveen S&P 500 Buy-Write Income Fund, Nuveen Variable Rate Preferred & Income Fund, and Nuveen Virginia Quality Municipal Income Fund, for which he serves as a consultant.

 

(2) 

Mr. Starr was elected or appointed as a board member of each of the Nuveen Funds except Nuveen Multi-Market Income Fund, for which he serves as a consultant.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Fund’s auditor, billed to the Fund during the Fund’s last two full fiscal years. For engagements with PricewaterhouseCoopers LLP the Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers 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 Chair (or, in his absence, any other member of the Audit Committee).

SERVICES THAT THE FUND’S AUDITOR BILLED TO THE FUND

 

Fiscal Year Ended

  Audit Fees Billed
to Fund 1
    Audit-Related Fees
Billed to Fund 2
    Tax Fees
Billed to Fund 3
    All Other Fees
Billed to Fund 4
 

December 31, 2023

  $ 37,255     $ 0     $ 496     $ 0  
 

 

 

   

 

 

   

 

 

   

 

 

 

       

Percentage approved pursuant to pre-approval  exception

    0     0     0     0
 

 

 

   

 

 

   

 

 

   

 

 

 

       

December 31, 2022

  $ 35,896     $ 0     $ 0     $ 0  
 

 

 

   

 

 

   

 

 

   

 

 

 

       

Percentage approved pursuant to pre-approval exception

    0     0     0     0
 

 

 

   

 

 

   

 

 

   

 

 

 

 

1 “Audit Fees” are the aggregate fees billed for professional services for the audit of the 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 that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage.

3 “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculation performed by the principal accountant.

4 “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage.

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 PricewaterhouseCoopers LLP to Nuveen Fund Advisors, LLC (formerly Nuveen Fund Advisors, Inc.) (the “Adviser”), and any entity controlling, controlled by or under common control with the Adviser 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 PricewaterhouseCoopers 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
 Billed to Adviser and 
Affiliated Fund
Service Providers
     Tax Fees Billed to 
Adviser and
Affiliated Fund
Service Providers
    All Other Fees
Billed to Adviser
 and Affiliated Fund 
Service Providers
 

December 31, 2023

  $ 0     $ 0     $ 0  
 

 

 

   

 

 

   

 

 

 

     

Percentage approved pursuant to pre-approval exception

    0     0     0
 

 

 

   

 

 

   

 

 

 

     

December 31, 2022

  $ 0     $ 0     $ 0  
 

 

 

   

 

 

   

 

 

 

     

Percentage approved pursuant to pre-approval exception

    0     0     0
 

 

 

   

 

 

   

 

 

 


NON-AUDIT SERVICES

The following table shows the amount of fees that PricewaterhouseCoopers LLP billed during the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that PricewaterhouseCoopers 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 pre-approval exception described above). The Audit Committee requested and received information from PricewaterhouseCoopers LLP about any non-audit services that PricewaterhouseCoopers 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 PricewaterhouseCoopers LLP’s independence.

 

Fiscal Year Ended

   Total Non-Audit Fees 
Billed to Fund
    Total Non-Audit Fees
billed to Adviser and
Affiliated  Fund Service
 Providers (engagements 
related directly to the
operations and financial
reporting of the Fund)
    Total Non-Audit Fees
billed to Adviser and
Affiliated  Fund Service
Providers (all other
engagements)
      Total    

December 31, 2023

  $ 496     $ 0     $ 0     $ 496  

December 31, 2022

  $ 0     $ 0     $ 0     $ 0  

“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.

Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.

Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the 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 chair 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 Joseph A. Boateng, Albin F. Moschner, John K. Nelson, Chair, Loren M. Starr, Margaret L. Wolff and Robert L. Young.

ITEM 6. SCHEDULE OF INVESTMENTS.

(a) See Portfolio of Investments in Item 1.

(b) Not applicable.


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

The Adviser has engaged Gateway Investment Advisers, LLC (“Gateway” or the “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has also delegated to the 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 the Sub-Adviser’s voting to ensure that they are carrying out their duties. The Sub-Adviser’s proxy voting policies and procedures are attached as an exhibit and summarized as follows:

The SEC has issued regulations with respect to proxy voting for all registered investment advisers and their clients. To meet these requirements on a client’s behalf, Gateway has adopted policies as described below.

Gateway recognizes that voting rights are financial assets of a client’s account and that they must be managed accordingly, with voting decisions made in the client’s best interests. To that end and because of increasing complexity in administering policies in this area, Gateway has contracted with Institutional Shareholder Services (ISS) a nationally recognized proxy voting agent, to assist in administering client proxy votes and to provide voting recommendation on each ballot issue. ISS has developed its US Summary Proxy Voting Guidelines, which provide vote recommendations for proxy voting that are designed to serve the best interest of investors. These recommendations outline the rationale for determining how particular issues should be voted. Gateway incorporated these recommendations into its Proxy Voting Policy and has instructed ISS to vote accordingly. In addition, Gateway’s policy addresses the rare circumstances in which ISS’ voting recommendations may not be followed. The policy describes how any conflicts of interest would be handled. It also refers to procedures that address Gateway’s continuing due diligence of ISS.


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

Nuveen Fund Advisors, LLC is the registrant’s investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the selection and on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Gateway Investment Advisers, LLC (“Gateway”, or the “Sub- Adviser”), as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio managers at the Sub-Adviser:

ITEM 8(a)(1). PORTFOLIO MANAGER BIOGRAPHIES

As of the date of filing this report, the following individuals at the Sub-Adviser (the “Portfolio Managers”) have primary responsibility for the day-to-day implementation of the registrant’s investment strategies:

Michael T. Buckius, Kenneth H. Toft, Daniel M. Ashcraft, and Michael J. Trotta - Michael T. Buckius, CFA, Kenneth H. Toft, CFA, Daniel M. Ashcraft, CFA and Mitchell J. Trotta, CFA, are responsible for investing the Managed Assets of the Nuveen S&P 500 Buy-Write Income Fund (BXMX). Mr. Buckius is Gateway’s Chief Executive Officer, Chief Investment Officer, President and Portfolio Manager. He joined Gateway in 1999 as Vice President and Portfolio Manager, prior to which he worked as an equity derivative sales professional at Bear Stearns & Co. and Bankers Trust Company. Mr. Toft joined Gateway in 1992 and is currently a Senior Vice President and Portfolio Manager. He has been a Vice President and Portfolio Manager for the firm since 1997, prior to which he held the position of Senior Trader and Research Analyst. Mr. Ashcraft joined Gateway in 2009, was promoted to Vice President in 2022 and is currently a Portfolio Manager on several of the funds Gateway advises. Mr. Trotta joined Gateway in 2016 and is currently a Portfolio Manager on several of the funds Gateway advises. Messrs. Buckius, Toft, Ashcraft and Trotta also serve as co-portfolio managers of Gateway’s flagship open-end fund, the Gateway Fund.

ITEM 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS

As of December 31, 2023, Messrs. Buckius, Toft and Ashcraft were responsible for day-to-day management of 5 registered investment company accounts (excluding the Fund) having assets of approximately $6.9 billion. Mr. Trotta was responsible for day-to-day management of 4 registered investment company accounts (excluding the Fund) having assets of approximately $6.8 billion. Mr. Buckius was responsible for day-to-day management of 37 other accounts having assets of approximately $427.6 million in the aggregate, Mr. Toft was responsible for day-to-day management of 12 other accounts having assets of approximately $238 million in aggregate, Mr. Ashcraft was responsible for day- to- day management of 37 other accounts having asset of approximately $379.6 million in aggregate, and Mr. Trotta was responsible for day-to-day management of 20 other accounts having assets of approximately $282 million. None of the portfolio managers managed any accounts having a performance based investment advisory fee.

POTENTIAL MATERIAL CONFLICTS OF INTEREST

As described above, the portfolio managers may manage other accounts with investment strategies similar to the Fund, including other investment companies and separately managed accounts. Fees earned by Gateway may vary among these accounts and the portfolio managers may personally invest in some but not all of these accounts. 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 manager may execute transactions for another account that may adversely impact the value of securities held by the Fund. However, Gateway believes 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 similar factors. In addition, Gateway 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

As of the most recently completed fiscal year end, the primary Portfolio Managers’ compensation is as follows:

Messrs. Buckius, Toft, Ashcraft and Trotta are compensated for their services by Gateway. Their compensation is comprised of three parts: base salary; incentive compensation related to the profitability of Gateway (with management fees for the Fund and all other Gateway-managed accounts being asset-based, not performance-based, either absolutely or in relation to any benchmark); and a retirement plan. The incentive compensation component, comprised of both a long-term incentive pool and a short-term incentive pool, is anticipated to be larger than the base salary component. Certain portfolio managers are parties to employment agreements that provide for automatic renewals for successive one-calendar-year periods and, among other things, a specified base salary and certain undertakings not to compete with the Adviser or solicit its clients. The non-competition and non-solicitation undertakings will expire one year from the termination of employment.

ITEM 8(a)(4). OWNERSHIP OF BXMX SECURITIES AS OF DECEMBER 31, 2023

 

Name of Portfolio Manager

  

None

    

$1 -
$10,000

    

$10,001-
$50,000

  

$50,001-
$100,000

    

$100,001-
$500,000

    

$500,001-
$1,000,000

    

Over
$1,000,000

 

Kenneth H. Toft

              X           

Michael T. Buckius

     X                    

Daniel M. Ashcraft

     X                    

Mitchell J. Trotta

     X                    


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

Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES.

 

  (a)

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

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the 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. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

  (a)

The following provides dollar amounts of income and fees/compensation related to securities lending activities of the Fund during the fiscal year ended December 31, 2023:

 

Gross income from securities lending activities

   $ 33,893  

Fees and/or compensation paid for securities lending activities and related services:

  

Fees paid to securities lending agent from a revenue split

     (2,621

Fees not included in a revenue split

  

Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in a revenue split

     (34

Administrative fees not included in a revenue split

     —   

Indemnification fees not included in a revenue split

     —   

Rebate (paid to borrower)

     (1,168

Other fees not included in a revenue split

     —   

Aggregate fees/compensation for securities lending activities

     (3,823

Net income from securities lending activities

   $ 30,070  

 

  (b)

The Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks, and other institutions in order to generate additional income. When loaning securities, the Fund retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. The loans are continuous, can be recalled at any time, and have no set maturity. When the Fund loans its portfolio securities, it will receive, at the inception of each loan, cash collateral equal to an amount not less than 100% of the market value of the loaned securities. The actual percentage of the cash collateral will vary depending on the asset type of the loaned securities. The Fund’s custodian, State Street Bank and Trust Company, serves as the securities lending agent to the Fund. Pursuant to a Securities Lending Authorization Agreement and in accordance with procedures established by the Board of Trustees, State Street Bank and Trust Company effects loans of Fund securities to any firm on a list of approved borrowers, negotiates loan terms, monitors the value of the loaned securities and collateral, requests additional collateral as necessary, manages reinvestment of collateral in a pooled cash collateral reinvestment vehicle, arranges for the return of loaned securities to the Fund, and maintains records and prepares reports regarding loans that are made and the income derived therefrom.


ITEM 13. EXHIBITS.

File the exhibits listed below as part of this Form.

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/fund-governance and there were no amendments during the period covered by this report. (To view the code, click on 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: 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.

(a)(4) Change in registrant’s independent public accountant. Not applicable.

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


SIGNATURES

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

(Registrant) Nuveen S&P 500 Buy-Write Income Fund

 

By (Signature and Title)   

/s/ David J. Lamb

  
   David J. Lamb   
   Chief Administrative Officer   
Date: March 7, 2024   

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/ David J. Lamb

  
   David J. Lamb   
   Chief Administrative Officer   
   (principal executive officer)   
Date: March 7, 2024   
By (Signature and Title)   

/s/ E. Scott Wickerham

  
   E. Scott Wickerham   
   Vice President and Controller   
   (principal financial officer)   
Date: March 7, 2024   

Exhibit 99.CERT

CERTIFICATION

I, David J. Lamb, certify that:

1. I have reviewed this report on Form N-CSR of Nuveen S&P 500 Buy-Write Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: March 7, 2024      

/s/ David J. Lamb

      David J. Lamb
      Chief Administrative Officer
      (principal executive officer)


CERTIFICATION

I, E. Scott Wickerham, certify that:

1. I have reviewed this report on Form N-CSR of Nuveen S&P 500 Buy-Write Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: March 7, 2024      

/s/ E. Scott Wickerham

      E. Scott Wickerham
      Vice President and Controller
      (principal financial officer)

Exhibit 99.906CERT

Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer’s knowledge and belief.

The undersigned officers of Nuveen S&P 500 Buy-Write Income Fund (the “Fund”) certify that, to the best of each such officer’s knowledge and belief:

 

  1.

The Form N-CSR of the Fund for the period ended December 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

  2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund.

 

Date: March 7, 2024      
     

/s/ David J. Lamb

      David J. Lamb
      Chief Administrative Officer
      (principal executive officer)
     

/s/ E. Scott Wickerham

      E. Scott Wickerham
      Vice President and Controller
      (principal financial officer)

Gateway Investment Advisers, LLC

Section II: Proxy Voting, Policy 4

PROXY VOTING POLICY

 

4.1

Overview

This proxy voting policy and related procedures apply to clients who desire Gateway Investment Advisers, LLC (Gateway) to vote proxies on their behalf, including registered investment companies advised (or sub-advised) by Gateway. Questions regarding this policy should be directed to Gateway’s CCO.

 

4.2

Introduction

Gateway recognizes that voting rights are financial assets of its clients and that they must be managed accordingly; with voting decisions being made in the best interests of its clients who wish Gateway to exercise such authority and of shareholders of the registered investment companies for which it acts as adviser or sub-adviser (hereinafter referred collectively as “Clients”). Gateway, in turn, has retained Institutional Shareholder Services (ISS) as its proxy agent to recommend how to vote each proxy as well as administer the voting of proxies on behalf of Gateway.

 

4.3

Role of Proxy Voting Agent

Gateway has engaged ISS, an independent proxy voting service, to assist in the voting of proxies. ISS is responsible for coordinating with each Client’s custodian to ensure that all proxy ballots relating to a Client’s portfolio are processed in a timely manner. To accommodate this process, Gateway has instructed ISS to follow the ISS United States Proxy Voting Guidelines and to automatically vote in accordance with ISS’ vote recommendations no later than five (5) calendar days prior to the vote submission deadline without Gateway’s prior approval.

ISS, with its vast research capabilities, has developed its U.S. and global proxy voting guidelines, which provide vote recommendations for proxy voting, that are designed to serve the best interests of investors. These guidelines outline the rationale for determining how particular issues should be voted. Gateway’s CIO, on an annual basis, will determine whether ISS’ applicable proxy guidelines continue to be in the best interests of Gateway’s Clients. Gateway will instruct ISS to vote in accordance with these guidelines unless at least one of the following conditions apply:

 

  A.

Gateway’s portfolio management team has decided to override the ISS vote recommendation for a Client(s) based on its own determination that the Client(s) would best be served with a vote contrary to the ISS recommendation based on Gateway’s higher degree of analysis of ISS’ vote recommendation. Such decision(s) will be documented by Gateway (and communicated to ISS if a decision(s) led to a vote override). Gateway’s CIO will determine, on an annual basis, as to which classification level an ISS vote recommendation should be analyzed further by Gateway (which may include highly contested matters regarding mergers and acquisitions, dissolutions, conversions, consolidations, or contested elections of directors); or

 

  B.

Gateway’s portfolio management team has decided to override ISS’ vote recommendation for a Client(s) based on its own determination that the Client(s) would best be served with a vote contrary to ISS’ recommendation based on Gateway’s consideration of certain additional information. Specifically, in the event Gateway becomes aware that an issuer has filed additional soliciting material with

 

1

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Gateway Investment Advisers, LLC

Section II: Proxy Voting, Policy 4

 

 

the SEC regarding ISS’ vote recommendation and if such additional information would reasonably be expected to affect Gateway’s voting determination, Gateway will consider this supplemental information if such additional material was submitted to Gateway via ISS no later than five (5) calendar days prior to the vote submission deadline. Only additional information from issuers that apply to the classification levels determined by the CIO would be considered information reasonably expected to affect Gateway’s voting determination. Information received within the five (5) calendar days before the cutoff time frame, but before the vote submission deadline, may be considered, but only on a best-efforts basis. Decision(s) as to whether this additional information affects whether or not Gateway follows ISS’ vote recommendation will be documented by Gateway (and communicated to ISS if the analysis led to a vote override); or

 

  C.

ISS does not give a vote recommendation, in which case Gateway will independently determine how a particular issue should be voted. In these instances, Gateway, through its portfolio management team, will document the reason(s) used in determining a vote and communicate Gateway’s voting instruction to ISS. Gateway will generally seek to vote in accordance with ISS’ guidelines; or

 

  D.

If voting on any particular security compromises Gateway’s ability to later transact in such security (e.g. shareblocking practices) or if, in Gateway’s judgment, the expected cost associated with the vote exceeds the expected benefits of the vote (e.g. non-U.S. security restrictions), then Gateway will abstain from voting on a particular security; or

 

  E.

If voting would impose costs on the Client, such as opportunity costs for the Client resulting from restricting the use of securities for lending in order to preserve the right to vote, then Gateway will not make efforts to vote these securities on behalf of the Client.

 

4.4

Conflicts of Interest

From time to time, Gateway or an employee or another affiliate of Gateway may have a conflict of interest with respect to a proxy vote. A conflict of interest may exist, for example, if Gateway has a business relationship (or potential business relationship) with either the company soliciting the proxy or a third party that has a material interest in the outcome of a proxy vote or that is actively lobbying for a particular outcome of a proxy vote. Any individual with knowledge of any actual or potential conflict of interest, such as a personal conflict of interest (e.g., familial relationship with company management) or of a business relationship (e.g., Gateway is the investment manager to a soliciting company), shall disclose that conflict to the Legal and Compliance Department. In the event of a reported conflict, the Legal and Compliance Department will determine and record how the proxies in question shall be voted; although it is expected that ISS vote recommendations will be followed unless a determination to vote contrary to ISS is documented.

From time to time, ISS experiences conflicts of interest with respect to proxy votes. A conflict of interest can exist, for example, if a subsidiary of ISS has a business consultant relationship with an issuer and ISS is determining a vote recommendation on the same issuer. Gateway has formalized due diligence processes in place to determine, on an annual basis, if ISS’ efforts to mitigate such conflicts are reasonable.

 

2

Confidential (C)


Gateway Investment Advisers, LLC

Section II: Proxy Voting, Policy 4

 

4.5

Due Diligence of Proxy Adviser

Gateway will follow formalized procedures to undertake continuing due diligence of ISS, both in the areas of research and the administrative tasks of proxy voting.

 

4.6

Record Retention Requirements

 

  A.

In accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940, as amended, Gateway will maintain the following records for a period of not less than five years:

 

  1.

This Gateway proxy voting policy;

  2.

Records of Clients’ written requests for this policy and/or their voting record;

  3.

Gateway’s written response to such written or oral requests; and in instances that arise due to circumstances describe in Section 4.3 A, B and C, a memo as to how Gateway arrived at its decision to vote the proxies at issue.

 

  B.

ISS will make and retain, on Gateway’s behalf (as evidenced by an undertaking from ISS to provide a copy promptly upon request), the following documents:

 

  1.

A copy of a proxy statement*;

  2.

A record of each vote cast by Gateway on behalf of a Client; and

  3.

A copy of any document that was material to making a decision how to vote proxies on behalf of a Client or that memorialized the basis of that decision.

*Gateway may also rely on obtaining a copy from the EDGAR system.

 

4.7

How to Obtain Voting Information

At any time, a Client may obtain this Proxy Voting Policy along with ISS’ Proxy Voting Guidelines Summary and his or her voting record upon the Client’s written or oral request to Gateway.

Effective Date: February 15, 2008, revised December 11, 2008, revised February 18, 2015, revised February 28, 2021, revised June 23, 2022.

 

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