N-CSRS 1 a11-14605_10ncsrs.htm N-CSRS

 

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

811-21333

 

Nuveen Multi-Strategy Income and Growth Fund 2

(Exact name of registrant as specified in charter)

 

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

(Address of principal executive offices) (Zip code)

 

Kevin J. McCarthy

Nuveen Investments

333 West Wacker Drive

Chicago, IL 60606

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(312) 917-7700

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

June 30, 2011

 

 

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, Date: 27-AUG-2009 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 BOC30124of 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.

 



Closed-End Funds

Nuveen Investments

Closed-End Funds

Seeks Attractive Distributions from a Portfolio of Preferred and Convertible Securities,
Domestic and Foreign Equities, and Debt Instruments

Semi-Annual Report

June 30, 2011

Nuveen Multi-Strategy Income and Growth Fund

JPC

Nuveen Multi-Strategy Income and Growth Fund 2

JQC



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Table of Contents

Chairman's Letter to Shareholders   4  
Portfolio Managers' Comments   5  
Common Share Distribution and Share Price Information   14  
Performance Overviews   17  
Shareholder Meeting Report   19  
Portfolios of Investments   20  
Statement of Assets & Liabilities   81  
Statement of Operations   82  
Statement of Changes in Net Assets   83  
Statement of Cash Flows   84  
Financial Highlights   86  
Notes to Financial Statements   88  
Annual Investment Management Agreement Approval Process   103  
Reinvest Automatically Easily and Conveniently   111  
Glossary of Terms Used in this Report   113  
Other Useful Information   114  



Chairman's
Letter to Shareholders

Dear Shareholders,

The global economy continues to be weighed down by an unusual combination of pressures facing the larger developed economies. Japanese leaders continue to work through the economic aftereffects of the March 2011 earthquake and tsunami. Political leaders in Europe and the U.S. have resolved some of the near term fiscal problems, but the financial markets are not convinced that these leaders are able to address more complex longer term fiscal issues. Despite improved earnings and capital increases, the largest banks in these countries continue to be vulnerable to deteriorating mortgage portfolios and sovereign credit exposure, adding another source of uncertainty to the global financial system.

In the U.S., recent economic statistics indicate that the economic recovery may be losing momentum. Consumption, which represents about 70% of the gross domestic product, faces an array of challenges from seemingly intractable declines in housing values, increased energy costs and limited growth in the job market. The failure of Congress and the administration to agree on the debt ceiling increase on a timely basis and the deep divisions between the political parties over fashioning a balanced program to address growing fiscal imbalances that led to the recent S&P ratings downgrade add considerable uncertainty to the domestic economic picture.

On a more positive note, corporate earnings continue to hold up well and the municipal bond market is recovering from recent weakness as states and municipalities implement various programs to reduce their budgetary deficits. In addition, the Federal Reserve System has made it clear that it stands ready to take additional steps should the economic recovery falter. However, there are concerns that the Fed is approaching the limits of its resources to intervene in the economy.

These perplexing times highlight the importance of professional investment management. Your Nuveen investment team is working hard to develop an appropriate response to increased risk, and they continue to seek opportunities created by stressful markets using proven investment disciplines to designed to help your Fund achieve its investment objectives. On your behalf, we monitor their activities to assure that they maintain their investment disciplines.

As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.

Sincerely,

Robert P. Bremner
Chairman of the Board
August 23, 2011

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Portfolio Managers' Comments

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

Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody's or Fitch. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated NR are not rated by a national rating agency.

Nuveen Multi-Strategy Income and Growth Fund (JPC)
Nuveen Multi-Strategy Income and Growth Fund 2 (JQC)

These Funds are advised by Nuveen Fund Advisors, Inc., which determines and oversees the Funds' asset allocations. Nuveen Fund Advisors uses a team of sub-advisers with specialties in different asset classes to manage the Funds' portfolios. These sub-advisers include Spectrum Asset Management, Inc., Symphony Asset Management, LLC, and Tradewinds Global Investors, LLC. Symphony and Tradewinds are affiliates of Nuveen Investments.

Spectrum, a wholly-owned subsidiary of Principal Global Investors, LLC, manages the preferred securities positions within the income-oriented portion of each Fund's portfolio. Mark Lieb and Phil Jacoby, who have more than 50 years of combined experience in the preferred securities and other debt markets, lead the team at Spectrum.

Symphony has primary responsibility for investments in convertible, high yield and senior loan securities, and for domestic and international equity investments. The team at Symphony managing the convertible, high yield and senior loan portions of each portfolio is led by Gunther Stein, the firm's Chief Investment Officer, who has more than 20 years of investment management experience. The Symphony team responsible for managing domestic and international equity investments is led by Ross Sakamoto, who has more than 20 years of investment management experience.

Tradewinds invests its portion of each Fund's assets in global equities and manages each Fund's options strategy. The Tradewinds team is led by Dave Iben, who is Chief Investment Officer of that firm and has more than 25 years of investment management experience.

Here representatives from Spectrum, Symphony and Tradewinds talk about their management strategies and the performance of both Funds for the six-month period ended June 30, 2011

What key strategies were used to manage the Funds during this reporting period?

Within the preferred securities portion of both Funds' portfolios, our basic strategy is to stay relatively balanced between the retail investor-oriented $25 par sector and the institutional investor-oriented $1000 par capital securities sector. This was because of unique short-term capital performance differences and broad diversification benefits of the combined universe, which together, help to augment total risk-adjusted rates of return.

Our risk-averse posture toward security structure and portfolio structure are important core aspects of our strategy, which over the long-term seeks to preserve capital and

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income distributions. We also maintain an approximate 60% weight to U.S. names and a 40% weight to foreign names, which keep the Funds in a neutral position relative to the benchmark.

In the senior loan and other debt portion of each Fund's portfolio, risk assets traded positively as the Federal Reserve's quantitative easing initiative was underway, optimism about stability (and growth) increased, and sovereign concerns stayed on the back burner until mid-May, when volatility began to increase as macro concerns about Europe (and later the U.S.) drove markets lower.

Nonetheless, the corporate credit market remained positive during the first half of the year, despite a selloff late in the period with convertibles, high yield bonds and senior loans all showing positive returns for the six months. Overall, consensus opinion in the loan and high yield market centered on optimism regarding a low default environment, with the default rate for the U.S. market decreasing 20 basis points to 1.05% for the twelve-month period ended June 2011. While the average recovery rate has dropped, such a low default rate makes the average recovery rate less meaningful—particularly for higher quality portfolios within the non-investment grade space. Within convertibles, sentiment was more mixed as the equity markets continue to trade volatility with little conviction to the upside.

In the core domestic and international equity portions of both Funds' portfolios that are managed by Symphony, we used both quantitative and qualitative methods to evaluate opportunities. The quantitative screening process served as the starting point for decision-making, with the qualitative process then providing a systematic way of researching companies from a broad perspective, as fundamental analysts actively sought catalysts that we believed would drive upside price movements. Symphony uses a "bottom-up" approach to stock picking, seeking to maximize return per unit of risk while obeying limits on position size, industry weights, beta, and other portfolio constraints. Quantitative tools provide the risk diagnostic measurements which guide these limits and keep forecasted risk within acceptable tolerances. The overall result is an investment process which is disciplined, repeatable, and we think blends the most effective elements of both quantitative and qualitative investing.

For the global equity portion of the Funds' portfolios managed by Tradewinds, our basic investment philosophy continued to focus on buying good or improving business franchises around the globe whose securities were selling below their intrinsic value, maintaining a disciplined, opportunistic investing approach in this unique environment. We found that the best value opportunities in the securities of those businesses were the most leveraged to the growth of the global economy.

In the first half of 2011, Tradewinds continued to like materials, food, agriculture and energy stocks which benefit from increased global demand. Within the equity asset class, both the long and short equity exposure remained generally unchanged, as measured at the beginning and end of the six-month period, while the convertible bond position decreased by the end of the period. We continued to write covered call options on individual stocks in an effort to enhance returns, although this did cause the Funds potentially to forego some upside opportunities. We also held put options on one stock to benefit in the event its price declines.

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Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares.

For additional information, see the Performance Overview for your Fund in this report.

*  Six-month returns are cumulative; all other returns are annualized.

1.  Comparative benchmark performance is a blended return consisting of: 1) 27.5% of the Merrill Lynch Preferred Stock Hybrid Securities Index, an unmanaged index of investment-grade, exchange traded preferred issues with outstanding market values of at least $100 million and at least one year to maturity. 2) 22.5% of the Barclays Capital Tier 1 Capital Securities Index, an unmanaged index that includes securities that can generally be viewed as hybrid fixed-income securities that either receive regulatory capital treatment or a degree of "equity credit" from a rating agency. 3) 10.0% of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. 4) 10.0% of the MSCI EAFE Index. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. 5) 10.0% of the MSCI All Country World Index. The MSCI ACWI is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. 6) 6.7% of the Merrill Lynch All U.S. Convertibles Index consisting of approximately 595 securities with par value greater than $50 million that were issued by U.S. companies or non-U.S. based issuers that have a significant business presence in the U.S. 7) 6.7% of the CSFB High Yield Index, which includes approximately $515 billion of $U.S.-denominated high yield debt with a minimum of $75 million in par value and at least one rating below investment-grade. 8) 6.6% of the CSFB Leverage Loan Index, which includes approximately $611 billion of $U.S.-denominated Leveraged Loans at least one rating below investment-grade. Benchmark returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in this benchmark.

2.  The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index that includes all investment-grade, publicly issued, fixed-rate, dollar denominated, nonconvertible debt issues and commercial mortgage backed securities with maturities of at least one year and outstanding par values of $150 million or more. Index returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in an index.

How did the Funds perform over the reporting period?

The performance of JPC and JQC, as well as a comparative benchmark and a general fixed income market index, is presented in the accompanying table.

Average Annual Total Return on Common Share Net Asset Value*

For periods ended 6/30/11

    6-Month   1-Year   5-Year  
JPC     5.31 %     25.87 %     2.12 %  
JQC     5.54 %     25.50 %     2.93 %  
Comparative Benchmark1     4.79 %     19.78 %     4.57 %  
Barclays Capital U.S. Aggregate Bond Index2     2.72 %     3.90 %     6.52 %  

 

For the six-month period ended June 30, 2011, the total return on net asset value for both Funds outperformed the comparative benchmark and the general market index.

Among the largest positive contributors in the preferred securities portion of both Funds over the period were Deutsche Bank, Aegon, ING, XL Capital and Centaur Funding. We also bought call protection and traded out of premium paper in favor of discount paper to provide more opportunity for capital upside. We reduced the European banking concentration the first two weeks of May by reducing French banking by 50% and Spanish banking by 25% ahead of the sovereign debt turmoil that played out into mid-June.

We increased concentration in Australian P&C insurance by 50%, which helped to preserve capital amidst declines in the European banking sector. We ended the period overweight in capital securities by 7% relative to the custom benchmark in order to more fully benefit from the technical value inherent in certain hybrid securities—this is in keeping with the trends underway in the hybrid preferred securities market that are reducing overall sector volatility.

The market had two shocks to contend with during the period: 1) The reinsurance industry had catastrophe loss payments to satisfy claims from the tsunami damage in Japan, and 2) the protracted European sovereign debt concerns revalued financial risk in foreign bank names within the region, as well in some of foreign insurance issues. Both events constrained performance for the reporting period. Specifically, the main performance detractors for the Funds were Daiachi Life, AXA Insurance, Lloyd's Capital and Credit Suisse.

The senior loan and high yield sleeves of both Funds benefited from several positions that performed well. Specifically, Burlington Coat Factory continued to show positive earnings and free cash-flow momentum and an ability to translate that into debt paydowns. Other positions that performed well were Western Refining bonds, as well as Infor Global Solutions.

The Funds' exposure to senior loans was a drag on performance as the senior loan asset class had a lower average coupon than its high yield counterparts in a largely flat secondary market trading environment. We continued to believe that senior loans offered better risk-adjusted return potential, particularly as we believe that volatility and uncertainty in the current economic environment will be high.

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In the core domestic equities portion of each Fund managed by Symphony, a top performer for the period included Watson Pharmaceuticals, a generic drug manufacturer. The company is seeing steady growth and margin improvements as the generic drug pipeline remains attractive and Watson's push into overseas markets is seeing positive results. Also positively contributing was Humana, a U.S. focused managed health care company. The company raised its full year outlook, noting a better than expected medical loss ratio and rising revenues due in part to the Medicare Advantage membership program.

Tesoro also positively contributed to the Fund's overall return. The company is engaged in the refining and retail marketing of refined petroleum products. The company operates seven refineries, including the largest refineries in Hawaii and Utah and the second-largest in northern California. Improving prices, a restructuring plan that was received favorably, and an attractive valuation relative to its peers led Tesoro shares to perform strongly during the period.

Several positions detracted from performance, including Freeport McMoran, a copper, gold and molybdenum mining company. After a strong run, shares underperformed the broader market during the period. Chinese demand for copper and other commodities has been a key driver of metals prices in recent years. As China took steps to temper its high economic growth by raising interest rates, investors took profits in Freeport's shares.

Arch Coal is a coal mining corporation. Shares underperformed on the back of a tepid response to the company's intention to acquire International Coal Group. Investors turned to other opportunities in the space as concerns regarding the implied purchase price, greater financial leverage, and operating/integration risks pressured the shares.

In the global equity sleeve of the Funds managed by Tradewinds, the Fund's long equity holdings in the health care sector were the most significant contributor to positive performance in the period. Aetna Incorporated, which provides managed health care benefits through group, individual, Medicare and Medicaid programs, was the top performer in absolute terms due to, in our view, more benign prospects for health care reform, and shares performed well after the company beat first quarter 2011 earnings estimates. The industrials sector also contributed positively, notably due to the performance of the equities of French defense electronics company Thales S.A. and U.S. defense contactor Lockheed Martin Corporation.

In the international equity portion of the portfolio managed by Symphony, the Funds benefited from stock selection in the U.K. and Portugal as well as our non-benchmark positions in Canada. Our top three performers were Jeronimo Martins, ABB Limited, and Fresenius Medical Care. In the U.K., Burberry, Next, and Aggreko were among the top relative return contributors to the portfolios. Our stock selection in the Industrials and Consumer Staples sectors also added to performance, but our overweight in Information Technology hurt performance during the first half of 2011. Since the MSCI Germany USD Index outperformed the benchmark MSCI EAFE Index by 8.5%, our underweight position in Germany was a drag on relative performance. Our overweight positions in Nidec and Nippon Electric Glass also adversely affected performance. Overall, our emphasis

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on selecting companies with good growth characteristics and sound fundamentals performed well in this period.

Tradewinds' worst performer for the period was our long equity position in Canadian-based Cameco Corporation, the world's largest uranium producer. Its share price was severely impacted by troubling news regarding the stricken Fukushima Daiichi nuclear plant in Japan. Nuclear power still meets important global energy requirements, and we took advantage of the price correction to add to the Funds' holdings of high quality nuclear energy-related companies. Another equity position that significantly negatively affected absolute performance was Finnish mobile communication company Nokia Corporation.

Other significant underperformers included long equity positions in Canadian-based gold producer Barrick Gold Corporation and South African-based gold miner Gold Fields Limited. During the period, precious metals companies mostly underperformed the spot prices of the metals they produce. While the environment for these stocks is currently gloomy, we think it's important to weigh the somewhat countervailing aspects of world-class mining firms priced at what we believe to be bargain levels. Tradewinds has a bias to precious metals companies with low costs and high quality metal reserves. In our view, it's very likely that increasing demand will be set against dwindling supply as mining becomes more costly and difficult, and in such a situation, companies with superior assets and a low cost of production stand to outpace their peers. The materials sector holdings continued to be significantly overweight versus the benchmark and proved to be a significant detractor from performance this period.

Our covered call writing strategy also detracted from the Fund's absolute performance, even though the Funds' short equity holdings represented a limited percentage of overall assets. The short equity positions are concentrated in several companies that we characterize as members of the "contemporary nifty fifty"—high momentum growth companies that we believe are overvalued. The Fund's greatest detractor from performance was specialty coffee and coffee maker Green Mountain Coffee Roasters Incorporated. However, as "value" investors, we remain patient.

During the period, each Fund also entered into interest rate swaps to partially fix the interest cost of leverage, which each Fund uses through the use of bank borrowings. This portion of the Funds is overseen by Nuveen Fund Advisors, Inc., also an affiliate of Nuveen Investments.

IMPACT OF THE FUNDS' LEVERAGE STRATEGY ON PERFORMANCE

One important factor impacting the return of the Funds relative to the benchmarks was the Funds' use of financial leverage through the use of bank borrowings. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share

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returns during periods when the prices of securities held by a Fund generally are rising. Leverage made a positive contribution to the performance of the Fund over this reporting period.

RECENT DEVELOPMENTS REGARDING THE FUND'S REDEMPTION OF AUCTION RATE PREFERRED SHARES

Shortly after its inception, the Funds issued auction rate preferred shares (ARPS) to create structural leverage. As noted in past shareholder reports, the weekly auctions for those ARPS shares began in February 2008 to consistently fail, causing the Fund to pay the so called "maximum rate" to ARPS shareholders under the terms of the ARPS in the Fund's charter documents. The Fund redeemed its ARPS at par in 2009 and since then has relied upon bank borrowings to create structural leverage.

During 2010 and 2011, certain Nuveen leveraged closed-end funds (including these Funds) received a demand letter on behalf of purported holders of common shares of each such fund, alleging that Nuveen and the funds' officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the funds' ARPS. In response, the Board established an ad hoc Demand Committee consisting of certain of its disinterested and independent Board members to investigate the claims. The Demand Committee retained independent counsel to assist it in conducting an extensive investigation. Based upon its investigation, the Demand Committee found that it was not in the best interests of each fund or its shareholders to take the actions suggested in the demand letters, and recommended that the full Board reject the demands made in the demand letters. After reviewing the findings and recommendation of the Demand Committee, the full Board of each fund unanimously adopted the Demand Committee's recommendation.

Subsequently, 33 of the funds that received demand letters (including these Funds) were named in a consolidated complaint as nominal defendants in a putative shareholder derivative action captioned Martin Safier, et al. v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the "Cook County Chancery Court") on February 18, 2011 (the "Complaint"). The Complaint, filed on behalf of purported holders of each fund's common shares, also name Nuveen Fund Advisors, Inc. as a defendant, together with current and former Officers and interested Directors/Trustees of each of the funds (together with the nominal defendants, collectively, the "Defendants"). The Complaint contains the same basic allegations contained in the demand letters. The suits seek a declaration that the Defendants have breached their fiduciary duties, an order directing the Defendants not to redeem any ARPS at their liquidation value using fund assets, indeterminate monetary damages in favor of the funds and an award of plaintiffs' costs and disbursements in pursuing the action. The funds and other Defendants have filed a motion to dismiss the suit, which is still pending before the court. Nuveen Fund Advisors, Inc. believes that the Complaint is without merit, and is defending vigorously against these charges.

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Regulatory Matters

During May 2011, Nuveen Securities, LLC, known as Nuveen Investments, LLC, prior to April 30, 2011, entered into a settlement with the Financial Industry Regulatory Authority (FINRA) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities, LLC neither admitted to nor denied FINRA's allegations. Nuveen Securities, LLC is the broker-dealer subsidiary of Nuveen Investments.

The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities, LLC were false and misleading. Nuveen Securities, LLC agreed to a censure and the payment of a $3 million fine.

FUND REPOSITIONINGS

Subsequent to the end of the reporting period, the Board of Trustees of each of JPC and JQC approved repositioning each Fund's current portfolio.

JPC

For JPC, the Board adopted a single-strategy, preferred securities approach. JPC's investment objective of high current income with a secondary objective of total return will remain unchanged. The Board also approved changing the Fund's name to Nuveen Preferred Income Opportunities Fund once the repositioning is completed.

The goal of the proposed repositioning is to increase the attractiveness of the Fund's common shares and narrow the fund's trading discount by:

•  Simplifying the Fund to focus on one of its current core portfolio strategies;

•  Positioning the Fund in a closed-end fund category that is well understood and has historically seen more consistent secondary market demand; and

•  Differentiating the Fund from similar funds, including other Nuveen closed-end funds in the same fund category.

In connection with the repositioning and subject to shareholder approval, Nuveen Asset Management, LLC ("NAM") and NWQ Investment Management Company, LLC ("NWQ"), affiliates of Nuveen Investments, would assume portfolio management responsibilities from JPC's existing sub-advisers and each would manage approximately half of JPC's investment portfolio. The Fund will hold a special shareholder meeting later this year to seek approval of sub-advisory agreements with NAM and NWQ.

Upon completion of its proposed repositioning, the Fund also will discontinue its managed distribution policy (in which distributions may be sourced not just from income but also from realized capital gains and, if necessary, from capital), and shift from quarterly to monthly distributions. The repositioning is not expected to initially affect the level of the Fund's annualized distribution per share.

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A Proxy Statement relating to the proposed repositioning will be filed with the SEC in the coming weeks and will contain important information relating to the repositioning. Shareholders are urged to read the Proxy Statement carefully. After they are filed, free copies of the Proxy Statement will be available on the SEC's web site at www.sec.gov.

JQC

For JQC, the Board approved repositioning the Fund's current portfolio and adopting a single-strategy, debt-oriented approach. JQC's investment objective of high current income with a secondary objective of total return will remain unchanged. The Board also approved changing the Fund's name to Nuveen Credit Strategies Income Fund once the repositioning is completed.

The goal of each proposed repositioning is to increase the attractiveness of the Fund's common shares and narrow the Fund's trading discount by:

•  Simplifying the Fund to focus on one of its current core portfolio strategies;

•  Positioning the Fund in a closed-end fund category that is well understood and has historically seen more consistent secondary market demand; and

•  Differentiating the Fund from similar funds, including other Nuveen closed-end funds in the same fund category.

In connection with the proposed repositioning, Symphony Asset Management, LLC, an existing JQC sub-adviser and affiliate of Nuveen Investments, will assume sole responsibility for managing JQC's investment portfolio. The Fund will hold a special shareholder meeting later this year to seek approval of removing the Fund's existing fundamental policy of concentrating portfolio investments in the financial services industry. This policy reflects JQC's current 50% target allocation to preferred securities, which are predominantly issued by companies in the financial services industry.

Upon completion of its proposed repositioning, the Fund also will discontinue its managed distribution policy (in which distributions may be sourced not just from income but also from realized capital gains and, if necessary, from capital), and shift from quarterly to monthly distributions. The repositioning is not expected to initially affect the level of the Fund's annualized distribution per share.

A Proxy Statement relating to the proposed repositioning will be filed with the SEC in the coming weeks and will contain important information relating to the repositioning. Shareholders are urged to read the Proxy Statement carefully. After they are filed, free copies of the Proxy Statement will be available on the SEC's web site at www.sec.gov.

RISK CONSIDERATIONS

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:

Investment Risk. The possible loss of the entire principal amount that you invest.

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Price Risk. Shares of closed-end investment companies like the Funds frequently trade at a discount to their net asset value. Your 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.

Leverage Risk. The Funds' use of leverage creates the possibility of higher volatility for each Fund's per share NAV, market price, distributions and returns. There is no assurance that a Fund's leveraging strategy will be successful.

Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations. This is particularly true for funds employing a managed distribution program.

Common Stock Risk. Common stock returns often have experienced significant volatility.

Issuer Credit Risk. This is the risk that a security in a Fund's portfolio will fail to make dividend or interest payments when due.

Non-U.S. Securities Risk. Investments in non-U.S securities involve special risks not typically associated with domestic investments including currency risk and adverse political, social and economic development. These risks often are magnified in emerging markets.

Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.

Reinvestment Risk. If market interest rates decline, income earned from each Fund's portfolio may be reinvested at rates below that of the original bond that generated the income.

Preferred Stock Risk. Preferred stocks are subordinated to bonds and other debt instruments in a company's capital structure, and therefore are subject to greater credit risk.

Convertible Securities Risk. Convertible securities generally offer lower interest or dividend yields than non-convertible fixed-income securities of similar credit quality.

Currency Risk. Changes in exchange rates will affect the value of each Fund's investments.

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Common Share Distribution
and Share Price Information

The following information regarding your Fund's distributions is current as of June 30, 2011, and likely will vary over time based on the Fund's investment activities and portfolio investment value changes.

During the six-month reporting period, the Funds' quarterly distribution to common shareholders increased in March and June. Some of the important factors affecting the amount and composition of these distributions are summarized below.

The Funds employ financial leverage through the use of bank borrowings. Financial leverage provides the potential for higher earnings (net investment income), total returns and distributions over time, but–as noted earlier–also increases the variability of common shareholders' net asset value per share in response to changing market conditions.

Each Fund has a managed distribution program. The goal of this program is to provide common shareholders with relatively consistent and predictable cash flow by systematically converting the Fund's expected long-term return potential into regular distributions. As a result, regular common share distributions throughout the year are likely to include a portion of expected long-term gains (both realized and unrealized), along with net investment income.

Important points to understand about the managed distribution program are:

•  Each Fund seeks to establish a relatively stable common share distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about a Fund's past or future investment performance from its current distribution rate.

•  Actual common share returns will differ from projected long-term returns (and therefore a Fund's distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value.

•  Each distribution is expected to be paid from some or all of the following sources:

•  net investment income (regular interest and dividends),

•  realized capital gains, and

•  unrealized gains, or, in certain cases, a return of principal (non-taxable distributions).

•  A non-taxable distribution is a payment of a portion of a Fund's capital. When a Fund's returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when a Fund's returns fall short of distributions, the shortfall will represent a portion of your original principal, unless the shortfall

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14



is offset during other time periods over the life of your investment (previous or subsequent) when a Fund's total return exceeds distributions.

•  Because distribution source estimates are updated during the year based on a Fund's performance and forecast for its current fiscal year (which is the calendar year for each Fund), estimates on the nature of your distributions provided at the time distributions are paid may differ from both the tax information reported to you in your Fund's IRS Form 1099 statement provided at year end, as well as the ultimate economic sources of distributions over the life of your investment.

The following table provides estimated information regarding each Fund's common share distributions and total return performance for the six months ended June 30, 2011. This information is presented on a tax basis rather than on a generally accepted accounting principles (GAAP) basis. This information is intended to help you better understand whether the Fund's returns for the specified time period were sufficient to meet each Fund's distributions.

As of 6/30/11 (Common Shares)   JPC   JQC  
Inception date   3/26/03   6/25/03  
Six months ended June 30, 2011:  
Per share distribution:  
From net investment income   $ 0.27     $ 0.28    
From realized capital gains     0.10       0.11    
Return of capital     0.00       0.00    
Total per share distribution   $ 0.37     $ 0.39    
Annualized distribution rate on NAV     7.64 %     7.64 %  
Average annual total returns:  
Six-month (cumulative) on NAV     5.31 %     5.54 %  
1-Year on NAV     25.87 %     25.50 %  
5-Year on NAV     2.12 %     2.93 %  
Since inception on NAV     4.14 %     4.26 %  

 

Common Share Repurchases and Share Price Information

As of June 30, 2011, and since the inception of the Funds' repurchase program, the Funds have cumulatively repurchased and retired shares of their common stock as shown in the accompanying table.

Fund   Common Shares
Repurchased and Retired
  % of Outstanding
Common Shares
 
JPC     2,658,200       2.7 %  
JQC     4,129,654       3.0 %  

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During the six-month reporting period, the Funds' common shares were repurchased and retired at a weighted average price and a weighted average discount per common share as shown in the accompanying table.

Fund   Common Shares
Repurchased and Retired
  Weighted Average Price
Per Common Share
Repurchased and Retired
  Weighted Average Discount
Per Common Share
Repurchased and Retired
 
JPC     534,950     $ 8.48       13.94 %  
JQC     710,259     $ 8.93       14.01 %  

 

At June 30, 2011, the Funds' common share prices were trading at (–) discounts to their common share NAVs as shown in the accompanying table.

Fund   6/30/11
(–) Discount
  Six-Month Average
(–) Discount
 
JPC     -9.83 %     -12.86 %  
JQC     -11.26 %     -13.50 %  

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16




JPC

Performance

OVERVIEW

Nuveen Multi-Strategy Income and Growth Fund

  as of June 30, 2011

Portfolio Allocation (as a % of total investments)2,4

2010-2011 Distributions Per Common Share

Common Share Price Performance — Weekly Closing Price

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund's Performance Overview page.

1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.

2 Excluding common stocks sold short and investments in derivatives.

3 Excluding short-term investments, common stocks sold short and investments in derivatives.

4 Holdings are subject to change.

5 Rounds to less than 0.1%.

6 As defined in Footnote 7—Management Fees and Other Transactions with Affiliates.

Fund Snapshot

Common Share Price   $ 8.81    
Common Share Net Asset Value (NAV)   $ 9.77    
Premium/(Discount) to NAV     -9.83 %  
Current Distribution Rate1     8.63 %  
Net Assets Applicable to Common
Shares ($000)
  $ 947,787    

 

Leverage

(as a % of managed assets)6

Structural Leverage     22.74 %  
Effective Leverage     22.74 %  

 

Average Annual Total Return

(Inception 3/26/03)

    On Share Price   On NAV  
6-Month (Cumulative)     10.06 %     5.31 %  
1-Year     30.36 %     25.87 %  
5-Year     3.46 %     2.12 %  
Since Inception     3.33 %     4.14 %  

 

Portfolio Composition

(as a % of total investments)2,4

Insurance     14.3 %  
Commercial Banks     11.1 %  
Real Estate     8.4 %  
Media     5.5 %  
Oil, Gas & Consumable Fuels     5.5 %  
Diversified Financial Services     4.1 %  
Metals & Mining     3.9 %  
Capital Markets     3.9 %  
Health Care Providers & Services     2.3 %  
Electric Utilities     2.2 %  
Diversified Telecommunication Services     2.2 %  
Short-Term Investments     2.2 %  
Food Products     2.0 %  
Pharmaceuticals     1.8 %  
Food & Staples Retailing     1.5 %  
Hotels, Restaurants & Leisure     1.5 %  
Specialty Retail     1.5 %  
IT Services     1.5 %  
Semiconductors & Equipment     1.4 %  
Communications Equipment     1.4 %  
Chemicals     1.2 %  
Machinery     1.2 %  
Other     19.4 %  

 

Country Allocation

(as a % of total investments)2,4

United States     67.0 %  
United Kingdom     5.4 %  
Canada     4.2 %  
Netherlands     3.6 %  
Bermuda     3.5 %  
France     2.7 %  
Japan     2.3 %  
Ireland     1.2 %  
Switzerland     1.2 %  
Other     8.9 %  

 

Top Five Issuers

(as a % of total investments)3,4

Wachovia Corporation     1.8 %  
Deutsche Bank AG     1.8 %  
Commonwealth REIT     1.3 %  
ING Groep N.V.     1.3 %  
Viacom Inc.     1.3 %  

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Fund Snapshot

Common Share Price   $ 9.14    
Common Share Net Asset Value (NAV)   $ 10.30    
Premium/(Discount) to NAV     -11.26 %  
Current Distribution Rate1      8.75 %  
Net Assets Applicable to Common
Shares ($000)
  $ 1,404,562    

 

Leverage

(as a % of managed assets)6

Structural Leverage     22.69 %  
Effective Leverage     22.69 %  

 

Average Annual Total Return

(Inception 6/25/03)

    On Share Price   On NAV  
6-Month (Cumulative)     8.38 %     5.54 %  
1-Year     27.49 %     25.50 %  
5-Year     4.17 %     2.93 %  
Since Inception     3.25 %     4.26 %  

 

Portfolio Composition

(as a % of total investments)2,4

Insurance     15.1 %  
Commercial Banks     12.3 %  
Real Estate     7.5 %  
Media     5.3 %  
Oil, Gas & Consumable Fuels     5.3 %  
Capital Markets     4.0 %  
Metals & Mining     3.9 %  
Electric Utilities     2.9 %  
Diversified Financial Services     2.9 %  
Short-Term Investments     2.6 %  
Diversified Telecommunication Services     2.4 %  
Health Care Providers & Services     2.2 %  
Pharmaceuticals     1.8 %  
Food Products     1.8 %  
IT Services     1.5 %  
Food & Staples Retailing     1.5 %  
Investment Companies     1.5 %  
Hotels, Restaurants & Leisure     1.4 %  
Semiconductors & Equipment     1.3 %  
Communications Equipment     1.3 %  
Specialty Retail     1.3 %  
Road & Rail     1.3 %  
Other     18.9 %  

 

Country Allocation

(as a % of total investments)2,4

United States     64.7 %  
United Kingdom     7.2 %  
Canada     4.1 %  
Netherlands     3.8 %  
Bermuda     3.6 %  
France     3.1 %  
Japan     2.5 %  
Switzerland     1.7 %  
Other     9.3 %  

 

Top Five Issuers

(as a % of total investments)3,4

Wachovia Corporation     1.8 %  
HSBC Bank PLC     1.5 %  
Credit Suisse Group     1.5 %  
Comcast Corporation     1.5 %  
Aegon N.V.     1.5 %  

JQC

Performance

OVERVIEW

Nuveen Multi-Strategy Income and Growth Fund 2

  as of June 30, 2011

Portfolio Allocation (as a % of total investments)2,4

2010-2011 Distributions Per Common Share

Common Share Price Performance — Weekly Closing Price

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund's Performance Overview page.

1 Current Distribution Rate is based on the Fund's current annualized quarterly distribution divided by the Fund's current market price. The Fund's quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund's cumulative net ordinary income and net realized gains are less than the amount of the Fund's distributions, a return of capital for tax purposes.

2 Excluding common stocks sold short and investments in derivatives.

3 Excluding short-term investments, common stocks sold short and investments in derivatives.

4 Holdings are subject to change.

5 Rounds to less than 0.1%.

6 As defined in Footnote 7—Management Fees and Other Transactions with affiliates.

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18




JPC

JQC

Shareholder MEETING REPORT

The annual meeting of shareholders was held in the offices of Nuveen Investments on May 6, 2011; at this meeting the shareholders were asked to vote on the election of Board Members.

    JPC   JQC  
    Common Shares   Common Shares  
Approval of the Board Members was reached as follows:  
John P. Amboian  
For     87,285,069       121,166,163    
Withhold     1,775,808       2,808,993    
Total     89,060,877       123,975,156    
David J. Kundert  
For     87,238,910       121,130,590    
Withhold     1,821,967       2,844,566    
Total     89,060,877       123,975,156    
Terence J. Toth  
For     87,301,050       121,069,039    
Withhold     1,759,827       2,906,117    
Total     89,060,877       123,975,156    

 

 

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19




JPC

Nuveen Multi-Strategy Income and Growth Fund

Portfolio of INVESTMENTS

  June 30, 2011 (Unaudited)

Shares   Description (1)   Value  
    Common Stocks – 36.2% (27.7% of Total Investments)  
    Aerospace & Defense – 1.2%  
  602     Alliant Techsystems Inc., (2)   $ 42,941    
  29,962     Aveos Fleet Performance Inc., (2), (16)     434,449    
  2,159     BE Aerospace Inc., (2)     88,109    
  2,920     Esterline Technologies Corporation, (2)     223,088    
  134,000     Finmeccanica SPA, (16)     1,621,358    
  3,335     GeoEye, Inc., (2)     124,729    
  11,610     Honeywell International Inc.     691,840    
  2,500     L-3 Communications Holdings, Inc.     218,625    
  36,828     Lockheed Martin Corporation, (3)     2,981,963    
  11,290     Textron Inc.     266,557    
  97,550     Thales S.A., (16)     4,201,185    
  2,240     United Technologies Corporation     198,262    
    Total Aerospace & Defense     11,093,106    
    Airlines – 0.0%  
  7,030     United Continental Holdings Inc.     159,089    
    Auto Components – 0.1%  
  3,317     Cooper Tire & Rubber     65,643    
  9,820     TRW Automotive Holdings Corporation, (2)     579,675    
    Total Auto Components     645,318    
    Automobiles – 0.5%  
  63,589     Honda Motor Company Limited, (16)     2,449,888    
  1,000     Toyota Motor Corporation, Sponsored ADR     82,420    
  46,524     Toyota Motor Corporation, (16)     1,915,821    
    Total Automobiles     4,448,129    
    Beverages – 0.7%  
  220,983     Coca-Cola Amatil Limited, (16)     2,711,439    
  21,881     Coca-Cola Femsa SAB de CV     2,035,152    
  30,450     Coca-Cola Company     2,048,981    
  4,085     Dr. Pepper Snapple Group     171,284    
    Total Beverages     6,966,856    
    Biotechnology – 0.3%  
  9,830     Amgen Inc., (2)     573,581    
  5,950     Biogen Idec Inc., (2)     636,174    
  6,320     BioMarin Pharmaceutical Inc., (2)     171,967    
  2,480     Celgene Corporation, (2)     149,594    
  13,820     Gilead Sciences, Inc., (2)     572,286    
  4,380     Incyte Pharmaceuticals Inc., (2)     82,957    
  15,461     Nabi Biopharmaceuticals, (2)     83,180    
  11,970     Neurocrine Biosciences Inc.     96,359    
  10,810     PDL Biopahrma Inc.     63,455    
  2,780     Targacept, Inc.     58,575    
    Total Biotechnology     2,488,128    

 

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20



Shares   Description (1)   Value  
    Building Products – 0.1%  
  36,123     Masonite Worldwide Holdings, (2), (16)   $ 1,282,367    
    Capital Markets – 0.5%  
  3,540     Affiliated Managers Group Inc., (2)     359,133    
  3,340     Ameriprise Financial, Inc.     192,651    
  13,160     Apollo Investment Corporation     134,364    
  14,420     Ares Capital Corporation     231,729    
  3,900     Artio Global Investors Inc.     44,070    
  4,200     Calamos Asset Management, Inc. Class A     60,984    
  333,000     Egyptian Financial Group – Hermes Holdings, (16)     1,121,864    
  139,000     GP Investments     537,065    
  16,160     Invesco LTD     378,144    
  6,740     T. Rowe Price Group Inc.     406,692    
  45,240     UBS AG, (16)     825,610    
  45,000     Uranium Participation Corporation, (2)     296,749    
  6,740     Waddell & Reed Financial, Inc., Class A     244,999    
    Total Capital Markets     4,834,054    
    Chemicals – 1.0%  
  14,780     Celanese Corporation, Series A     787,922    
  680     CF Industries Holdings, Inc.     96,336    
  1,520     FMC Corporation     130,750    
  11,480     Interpid Potash Inc., (2)     373,100    
  80,252     Kuraray Company Limited, (16)     1,175,693    
  2,350     Minerals Technologies Inc.     155,782    
  16,544     Mosaic Company     1,120,525    
  27,125     Nitto Denko Corporation, (16)     1,378,251    
  24,360     Potash Corporation of Saskatchewan     1,391,206    
  3,580     Scotts Miracle Gro Company     183,690    
  5,430     Solutia Inc., (2)     124,076    
  49,607     Umicore, (16)     2,705,683    
  2,040     Westlake Chemical Corporation     105,876    
    Total Chemicals     9,728,890    
    Commercial Banks – 2.3%  
  25,153     Associated Banc-Corp.     349,627    
  77,919     Banco Itau Holdings Financeira, S.A., Sponsred ADR     1,834,992    
  88,591     Banco Santander Central Hispano S.A., (16)     1,020,581    
  12,100     BNP Paribas SA, (16)     933,018    
  9,216     Commerce Bancshares Inc.     396,288    
  6,495     Community Bank System Inc.     161,011    
  199,562     DnB NOR ASA, (16)     2,780,199    
  10,030     East West Bancorp Inc.     202,706    
  7,430     First Financial Bancorp.     124,007    
  76,091     Hang Seng Bank, (16)     1,217,179    
  156,530     HSBC Holdings PLC, (16)     1,551,953    
  60,780     KeyCorp.     506,297    
  6,340     M&T Bank Corporation     557,603    
  91,571     Mitsubishi UFJ Financial Group, Inc., ADR, (16)     446,256    
  298,117     Mizuho Financial Group, (16)     489,993    
  14,800     Societe Generale, (16)     876,545    
  83,163     Standard Chartered PLC, (16)     2,184,498    
  437,000     Sumitomo Mitsui Financial Group, (16)     1,521,079    
  14,845     Sumitomo Mitsui Financial Group, (16)     457,741    
  21,355     Sumitomo Mitsui Trust Holdings, (16)     73,034    
  26,000     Toronto-Dominion Bank     2,204,656    
  15,280     U.S. Bancorp     389,793    
  28,460     Wells Fargo & Company     798,588    
  28,550     Zions Bancorporation     685,486    
    Total Commercial Banks     21,763,130    

 

Nuveen Investments
21



JPC

Nuveen Multi-Strategy Income and Growth Fund (continued)

Portfolio of INVESTMENTS June 30, 2011 (Unaudited)

Shares   Description (1)   Value  
    Commercial Services & Supplies – 0.2%  
  27,660     Aggreko PLC, (16)   $ 856,976    
  1,600     Clean Harbors, Inc., (2)     165,200    
  18,245     Republic Services, Inc.     562,858    
  4,047     Stericycle Inc., (2)     360,669    
  8,700     Waste Management, Inc.     324,249    
    Total Commercial Services & Supplies     2,269,952    
    Communications Equipment – 0.5%  
  7,381     Cisco Systems, Inc., (2)     115,217    
  1,900     Comtech Telecom Corporation, (2)     53,276    
  2,375     Interdigital Inc., (2)     97,019    
  12,450     Motorola Solutions Inc.     573,198    
  372,000     Nokia Oyj, ADR, (3)     2,388,240    
  2,520     Plantronics Inc.     92,056    
  27,220     QUALCOMM, Inc.     1,545,824    
    Total Communications Equipment     4,864,830    
    Computers & Peripherals – 0.4%  
  9,031     Apple, Inc., (2)     3,031,436    
  11,620     EMC Corporation, (2)     320,131    
  6,450     Network Appliance Inc., (2)     340,431    
  5,590     SanDisk Corporation, (2)     231,985    
  6,910     Seagate Technology, (2)     111,666    
  1,573     Western Digital Corporation, (2)     57,226    
    Total Computers & Peripherals     4,092,875    
    Construction & Engineering – 0.1%  
  27,130     Royal Boskalis Westminster NV, (16)     1,283,707    
  1,762     Shaw Group Inc., (2)     53,230    
    Total Construction & Engineering     1,336,937    
    Construction Materials – 0.2%  
  547,000     India Cements Limited, GDR, (16)     871,376    
  172,359     India Cements Limited, GDR, (16)     273,758    
  1,750,000     Luks Group Vietnam Holdings Company Limited, (16)     466,338    
  3,450     Vulcan Materials Company     132,929    
    Total Construction Materials     1,744,401    
    Consumer Finance – 0.0%  
  8,260     Discover Financial Services     220,955    
    Containers & Packaging – 0.0%  
  10,510     Boise Inc.     81,873    
    Diversified Consumer Services – 0.0%  
  3,230     Sothebys Holdings Inc.     140,505    
    Diversified Financial Services – 0.2%  
  23,509     Citigroup Inc.     978,915    
  52,000     Guoco Group Ltd, ADR, (16)     637,902    
    Total Diversified Financial Services     1,616,817    
    Diversified Telecommunication Services – 0.9%  
  15,100     CenturyLink Inc.     610,493    
  60,500     KT Corporation, Sponsored ADR     1,176,120    
  86,800     Nippon Telegraph and Telephone Corporation, ADR, (3)     2,098,824    
  56,440     PT Telekomunikasi Indonesia, ADR     1,947,180    

 

Nuveen Investments
22



Shares   Description (1)   Value  
    Diversified Telecommunication Services (continued)  
  26,650     Telecom Egypt SAE, (16)   $ 67,804    
  1,455,000     Telecom Italia S.p.A., (16)     1,692,713    
  2,082     Telus Corporation     109,513    
  25,970     Verizon Communications Inc.     966,863    
    Total Diversified Telecommunication Services     8,669,510    
    Electric Utilities – 1.8%  
  146,484     Centrais Eletricas Brasileiras S.A., PFD B ADR     2,510,736    
  17,950     Duke Energy Corporation     337,999    
  2,280     Edison International     88,350    
  15,650     Electricite de France S.A., (16)     122,853    
  93,000     Electricite de France S.A., (16)     3,646,055    
  96,023     Exelon Corporation, (3)     4,113,625    
  152,632     Korea Electric Power Corporation, Sponsored ADR     2,025,427    
  14,610     Northeast Utilities     513,834    
  4,470     Portland General Electric Company     113,002    
  12,310     Progress Energy, Inc.     591,003    
  24,292     RusHydro, (2), (16)     117,816    
  363,000     RusHydro, (2), (16)     1,746,310    
  24,580     Southern Company     992,540    
  4,680     UIL Holdings Corporation     151,398    
    Total Electric Utilities     17,070,948    
    Electrical Equipment – 0.8%  
  51,392     ABB Limited, ADR     1,333,622    
  67,689     ABB Limited, (16)     1,758,716    
  20,041     Areva CI     747,341    
  5,480     Cooper Industries Inc.     326,992    
  18,364     Nidec Corporation, (16)     1,714,468    
  53,350     Sensata Techologies Holdings     2,008,628    
    Total Electrical Equipment     7,889,767    
    Electronic Equipment & Instruments – 0.4%  
  3,700     FLIR Systems Inc., (2)     124,727    
  59,801     Hoya Corporation, (16)     1,323,906    
  6,800     Ingram Micro, Inc., Class A, (2)     123,352    
  125,982     Nippon Electric Glass Company Limited, (16)     1,616,492    
  1,459     Tech Data Corporation, (2)     71,331    
    Total Electronic Equipment & Instruments     3,259,808    
    Energy Equipment & Services – 0.5%  
  62,771     AMEC PLC, (16)     1,096,833    
  7,915     Cooper Cameron Corporation, (2)     398,045    
  2,740     FMC Technologies Inc., (2)     122,725    
  5,500     Global Geophysical Services Inc.     97,900    
  4,725     Halliburton Company     240,975    
  3,830     Hornbeck Offshore Services Inc.     105,325    
  7,410     Oil States International Inc., (2)     592,133    
  31,230     Parker Drilling Company, (2)     182,696    
  8,010     Schlumberger Limited     692,064    
  48,010     Subsea 7 SA, (16)     1,227,960    
    Total Energy Equipment & Services     4,756,656    
    Food & Staples Retailing – 1.4%  
  2,131     BJ's Wholesale Club, (2)     107,296    
  4,480     Costco Wholesale Corporation     363,955    
  15,290     CVS Caremark Corporation     574,598    

 

Nuveen Investments
23



JPC

Nuveen Multi-Strategy Income and Growth Fund (continued)

Portfolio of INVESTMENTS June 30, 2011 (Unaudited)

Shares   Description (1)   Value  
    Food & Staples Retailing (continued)  
  130,811     Jeronimo Martins SGPS, (16)   $ 2,512,312    
  83,645     Koninklijke Ahold N.V., (16)     1,124,629    
  114,724     Kroger Co., (3)     2,845,155    
  98,506     Wal-Mart Stores, Inc., (3)     5,234,609    
    Total Food & Staples Retailing     12,762,554    
    Food Products – 1.1%  
  2,696     Archer-Daniels-Midland Company     81,284    
  1,050     Diamond Foods Inc.     80,157    
  5,790     Flowers Foods Inc.     127,612    
  8,740     General Mills, Inc.     325,303    
  14,850     H.J. Heinz Company     791,208    
  18,235     Hershey Foods Corporation     1,036,660    
  8,290     Kraft Foods Inc.     292,057    
  1,890     McCormick & Company, Incorporated     93,687    
  21,460     Mead Johnson Nutrition Company, Class A Shares     1,449,623    
  31,966     Nestle S.A., (16)     1,989,196    
  2,780     Tootsie Roll Industries Inc.     81,343    
  74,824     Tyson Foods, Inc., Class A, (3)     1,453,082    
  76,130     Unilever PLC, ADR, (16)     2,456,414    
    Total Food Products     10,257,626    
    Gas Utilities – 0.1%  
  2,600     National Fuel Gas Company     189,280    
  16,940     Questar Corporation     300,007    
    Total Gas Utilities     489,287    
    Health Care Equipment & Supplies – 0.3%  
  5,770     Align Technology, Inc., (2)     131,556    
  3,920     Baxter International, Inc.     233,985    
  9,080     Becton, Dickinson and Company     782,424    
  1,810     C. R. Bard, Inc.     198,847    
  18,190     CareFusion Corporation, (2)     494,222    
  1,390     Cooper Companies, Inc.     110,144    
  5,910     Edwards Lifesciences Corporation, (2)     515,234    
  5,760     Hologic Inc., (2)     116,179    
  5,120     Masimo Corporation     151,962    
  2,300     Steris Corporation     80,454    
    Total Health Care Equipment & Supplies     2,815,007    
    Health Care Providers & Services – 1.1%  
  81,109     Aetna Inc., (3)     3,576,096    
  1,550     Air Methods Corporation, (2)     115,847    
  25,410     AmerisourceBergen Corporation     1,051,974    
  2,280     Centene Corporation, (2)     81,008    
  7,580     Express Scripts, Inc., (2)     409,168    
  12,750     Five Star Quality Care Inc.     74,078    
  26,233     Fresenius Medical Care, ADR, (16)     1,962,095    
  7,340     HealthSouth Corporation, (2)     192,675    
  7,470     Humana Inc., (2)     601,634    
  3,247     Lincare Holdings     95,040    
  13,680     McKesson HBOC Inc.     1,144,332    
  2,950     Molina Healthcare Inc.     80,004    
  3,660     Owens and Minor Inc.     126,233    
  68,000     Profarma Distribuidora de Produtos Farmaceuticos SA     649,217    
  4,760     Quest Diagnostics Incorporated     281,316    
    Total Health Care Providers & Services     10,440,717    

 

Nuveen Investments
24



Shares   Description (1)   Value  
    Hotels, Restaurants & Leisure – 0.2%  
  6,110     Ameristar Casinos, Inc.   $ 144,868    
  800     Chipotle Mexican Grill, (2)     271,207    
  19,731     Herbst Gaming Inc., (16)     234,307    
  10,130     MGM Mirage Inc., (2)     133,817    
  2,200     Red Robin Gourmet Burgers, Inc., (2)     80,036    
  16,350     Scientific Games Corporation     169,059    
  14,030     Starbucks Corporation     554,045    
  3,030     Vail Resorts, Inc.     140,047    
  4,180     YUM! Brands, Inc.     230,903    
    Total Hotels, Restaurants & Leisure     1,958,289    
    Household Durables – 0.3%  
  57,999     Brookfield Residential Properties Inc.     575,350    
  6,877     Brookfield Residential Properties Inc.     67,740    
  267,112     Oriental Weavers Company, (16)     1,320,151    
  1,965     Tempur Pedic International Inc., (2)     133,266    
  2,530     Tupperware Corporation     170,649    
  3,518     Whirlpool Corporation     286,084    
    Total Household Durables     2,553,240    
    Household Products – 0.2%  
  2,020     Colgate-Palmolive Company     176,568    
  9,870     Kimberly-Clark Corporation     656,947    
  9,880     Procter & Gamble Company     628,072    
    Total Household Products     1,461,587    
    Independent Power Producers & Energy Traders – 0.0%  
  7,440     AES Corporation, (2)     94,786    
    Industrial Conglomerates – 0.5%  
  233,172     Fraser and Neave Limited, (16)     1,101,700    
  58,480     General Electric Company     1,102,933    
  14,980     Rheinmetall AG, (16)     1,325,169    
  9,350     Siemens AG, Sponsored ADR, (16)     1,284,884    
    Total Industrial Conglomerates     4,814,686    
    Insurance – 1.3%  
  6,350     Alterra Capital Holdings Limited     141,605    
  16,642     Aon Corporation     853,735    
  2,493     Axis Capital Holdings Limited     77,183    
  3,680     Delphi Financial Group, Inc.     107,493    
  1,022     Endurance Specialty Holdings Limited     42,239    
  4,110     Everest Reinsurance Group Ltd     335,993    
  42,354     Hannover Rueckversicherung AG, (16)     2,202,660    
  9,680     Hartford Financial Services Group, Inc.     255,262    
  22,322     Lincoln National Corporation     635,954    
  928     Loews Corporation     39,060    
  4,100     Marsh & McLennan Companies, Inc.     127,879    
  8,820     Meadowbrook Insurance Group, Inc.     87,406    
  49,000     Mitsui Sumitomo Insurance Company Limited, (16)     1,146,935    
  6,694     MS&AD Insurance Group Holdiongs Inc., (16)     77,918    
  9,290     National Financial Partners Corp., (2)     107,207    
  6,388     Old Republic International Corporation     75,059    
  1,970     PartnerRe Limited     135,635    
  6,310     Primerica Inc.     138,631    
  105,446     Prudential Corporation PLC, (16)     1,217,565    
  3,400     Prudential Financial, Inc.     216,206    
  4,270     Reinsurance Group of America Inc.     259,872    

 

Nuveen Investments
25



JPC

Nuveen Multi-Strategy Income and Growth Fund (continued)

Portfolio of INVESTMENTS June 30, 2011 (Unaudited)

Shares   Description (1)   Value  
    Insurance (continued)  
  42,790     SCOR SE, ADR, (16)   $ 1,214,556    
  18,250     Symetra Financial Corporation     245,098    
  5,060     Tower Group Inc.     120,529    
  33,560     Willis Group Holdings PLC     1,379,652    
  5,810     WR Berkley Corporation     188,476    
  25,020     XL Capital Ltd, Class A     549,940    
    Total Insurance     11,979,748    
    Internet & Catalog Retail – 0.1%  
  1,190     Amazon.com, Inc., (2)     243,343    
  17,920     Expedia, Inc.     519,501    
    Total Internet & Catalog Retail     762,844    
    Internet Software & Services – 0.2%  
  3,070     Akamai Technologies, Inc., (2)     96,613    
  1,341     eBay Inc., (2)     43,274    
  918     Google Inc., Class A, (2)     464,857    
  5,340     IAC/InterActiveCorp., (2)     203,828    
  3,256     Rackspace Hosting Inc., (2)     139,161    
  25,145     Tencent Holdings Limited, (16)     686,917    
    Total Internet Software & Services     1,634,650    
    IT Services – 0.6%  
  11,820     Accenture Limited     714,164    
  24,210     Automatic Data Processing, Inc.     1,275,383    
  7,270     CoreLogic Inc.     121,482    
  5,450     CSG Systems International Inc., (2)     100,716    
  14,225     International Business Machines Corporation (IBM)     2,440,299    
  1,175     MasterCard, Inc.     354,075    
  1,900     Maximus Inc.     157,187    
  3,880     Teradata Corporation, (2)     233,576    
  2,981     VeriFone Holdings Inc., (2)     132,207    
  3,125     Wright Express Corporation, (2)     162,719    
    Total IT Services     5,691,808    
    Leisure Equipment & Products – 0.1%  
  1,491     Polaris Industries Inc.     165,754    
  16,000     Sankyo Company Ltd, (16)     826,681    
    Total Leisure Equipment & Products     992,435    
    Life Sciences Tools & Services – 0.1%  
  7,600     Affymetrix, Inc., (2)     60,268    
  1,910     Agilent Technologies, Inc., (2)     97,620    
  920     Bio-Rad Laboratories Inc., (2)     109,811    
  7,780     Life Technologies Corporation, (2)     405,105    
  7,140     Waters Corporation, (2)     683,584    
    Total Life Sciences Tools & Services     1,356,388    
    Machinery – 1.0%  
  1,104     AGCO Corporation, (2)     54,493    
  2,980     Astecx Industries Inc.     110,200    
  12,420     Caterpillar Inc.     1,322,233    
  12,460     Cummins Inc.     1,289,485    
  3,020     Deere & Company     248,999    
  1,910     Dover Corporation     129,498    
  6,460     Eaton Corporation     332,367    
  4,340     Greenbrier Companies Inc., (2)     85,758    

 

Nuveen Investments
26



Shares   Description (1)   Value  
    Machinery (continued)  
  839     Japan Steel Works Limited, (16)   $ 57,035    
  35,991     Kone OYJ, (16)     2,261,076    
  7,836     Meritor Inc.     125,689    
  29,433     Nabtesco Corporation     708,542    
  1,760     Nordson Corporation     96,536    
  5,120     Oshkosh Truck Corporation, (2)     148,173    
  6,180     Parker Hannifin Corporation     554,593    
  1,860     Sauer-Danfoss, Inc.     93,725    
  12,910     Timken Company     650,664    
  2,700     Trinity Industries Inc.     94,176    
  3,097     Twin Disc, Inc.     119,637    
  11,080     Vallourec SA, (16)     1,350,826    
    Total Machinery     9,833,705    
    Marine – 0.1%  
  39,600     Stolt-Nielsen S.A.     902,811    
    Media – 0.6%  
  32,027     Citadel Broadcasting Corporation, (2)     1,068,100    
  23,245     Comcast Corporation, Class A     589,028    
  11,896     DIRECTV Group, Inc., (2)     604,555    
  6,350     Liberty Media Starz, (2)     477,774    
  2,455     Madison Square Garden Inc., (2)     67,586    
  14,297     Metro-Goldwyn-Mayer, (16)     320,371    
  10,100     Scripps Networks Interactive, Class A Shares     493,688    
  1,104     Time Warner Cable, Class A     86,156    
  18,920     Viacom Inc., Class B     964,920    
  9,940     Virgin Media, Inc.     297,504    
  78,450     WPP Group PLC, (16)     982,810    
    Total Media     5,952,492    
    Metals & Mining – 3.7%  
  89,335     AngloGold Ashanti Limited, Sponsored ADR, (3)     3,760,110    
  122,250     Barrick Gold Corporation, (3)     5,536,703    
  44,513     BHP Billiton PLC, ADR, (16)     2,103,724    
  1,280     Cliffs Natural Resources Inc.     118,336    
  28,100     Freeport-McMoRan Copper & Gold, Inc.     1,486,490    
  287,031     Gold Fields Limited, Sponsored ADR, (3)     4,187,782    
  360,000     Gran Colombia Gold Corporation     302,348    
  81,160     Iluka Resources Limited, (16)     1,468,121    
  21,159     Kinross Gold Corporation     334,312    
  3,636     Newcrest Mining Limited, Sponsored ADR, (16)     147,258    
  95,300     Newcrest Mining Limited, (16)     3,861,531    
  92,381     Newmont Mining Corporation, (3)     4,985,803    
  11,201     NovaGold Resources Inc., (2)     103,049    
  69,540     Polyus Gold Company, ADR, (16)     2,190,510    
  31,660     Rio Tinto Limited, (16)     2,833,846    
  3,090     RTI International Metals, Inc., (2)     118,563    
  5,200     Steel Dynamics Inc.     84,500    
  3,660     Stillwater Mining Company     80,557    
  12,160     Titanium Metals Corporation, (2)     222,771    
  2,179,909     Village Main Reef Limited, (16)     399,681    
  9,490     Walter Industries Inc.     1,098,942    
    Total Metals & Mining     35,424,937    
    Multiline Retail – 0.3%  
  3,305     Dillard's, Inc., Class A     172,323    
  17,420     Macy's, Inc.     509,361    

 

Nuveen Investments
27



JPC

Nuveen Multi-Strategy Income and Growth Fund (continued)

Portfolio of INVESTMENTS June 30, 2011 (Unaudited)

Shares   Description (1)   Value  
    Multiline Retail (continued)  
  46,951     Next PLC, (16)   $ 1,754,165    
    Total Multiline Retail     2,435,849    
    Multi-Utilities – 0.2%  
  8,837     Ameren Corporation     254,859    
  7,720     Consolidated Edison, Inc.     411,013    
  14,800     Dominion Resources, Inc.     714,396    
  2,440     OGE Energy Corp.     122,781    
  2,950     Sempra Energy     155,996    
    Total Multi-Utilities     1,659,045    
    Office Electronics – 0.1%  
  23,343     Canon Inc., (16)     1,110,340    
    Oil, Gas & Consumable Fuels – 3.5%  
  2,480     Apache Corporation     306,007    
  9,273     Arch Coal Inc.     247,218    
  97,730     BG Group PLC, (16)     2,219,050    
  154,130     Cameco Corporation, (3)     4,061,326    
  93,861     Chesapeake Energy Corporation, (3)     2,786,733    
  5,400     Cimarex Energy Company     485,568    
  7,990     Cloud Peak Energy Inc.     170,187    
  11,120     ConocoPhillips     836,113    
  14,300     Continental Resources Inc., (2)     928,213    
  4,760     Devon Energy Corporation     375,136    
  10,430     El Paso Corporation     210,686    
  2,220     EOG Resources, Inc.     232,101    
  2,810     Exxon Mobil Corporation     228,678    
  84,000     Gazprom OAO, ADR, (16)     1,226,228    
  8,795     Hess Corporation     657,514    
  4,300     Murphy Oil Corporation     282,338    
  4,510     Newfield Exploration Company, (2)     306,770    
  146,560     Nexen Inc., (3)     3,297,600    
  7,200     Niko Resources Limited     449,491    
  4,495     Occidental Petroleum Corporation     467,660    
  5,850     Peabody Energy Corporation     344,624    
  2,900     Petrobras Energia S.A., ADR     56,173    
  13,500     Petrohawk Energy Corporation, (2)     333,045    
  10,590     Petroquest Energy Inc., (2)     74,342    
  3,500,000     PT Medco Energi Internasional TBK, (16)     962,161    
  6,550     QEP Resources Inc., (2)     273,987    
  39,030     Range Resources Corporation, (3)     2,166,165    
  34,290     Repsol YPF S.A, (16)     1,189,365    
  74,170     Royal Dutch Shell PLC, Class B, Sponsored ADR, (16)     2,646,826    
  3,230     SM Energy Company     237,340    
  44,170     StatoilHydro ASA, Sponsored ADR, (16)     1,118,208    
  7,110     Stone Energy Corporation, (2)     216,073    
  47,618     Suncor Energy, Inc., (3)     1,861,864    
  15,620     Tesoro Corporation     357,854    
  28,675     Total S.A., (16)     1,657,801    
  1,620     Whiting Petroleum Corporation, (2)     92,194    
    Total Oil, Gas & Consumable Fuels     33,362,639    
    Paper & Forest Products – 0.1%  
  4,440     Domtar Corporation     420,557    
    Personal Products – 0.0%  
  11,080     Prestige Brands Holdings Inc.     142,267    

 

Nuveen Investments
28



Shares   Description (1)   Value  
    Pharmaceuticals – 1.7%  
  24,800     AstraZeneca Group, Sponsored ADR, (3)   $ 1,241,736    
  27,280     AstraZeneca Group, (16)     1,363,490    
  19,278     Bristol-Myers Squibb Company     558,291    
  81,728     Eli Lilly and Company, (3)     3,067,252    
  1,524     Forest Laboratories, Inc., (2)     59,954    
  24,370     Johnson & Johnson, (3)     1,621,092    
  16,455     Merck & Company Inc.     580,697    
  21,236     Novartis AG, Sponsored ADR, (16)     1,301,493    
  12,720     Novo Nordisk A/S, (16)     1,593,552    
  29,670     Pfizer Inc., (3)     611,202    
  20,817     Sanofi-Aventis, S.A., (16)     1,674,532    
  24,490     Teva Pharmaceutical Industries Limited, Sponsored ADR     1,180,908    
  2,650     Warner Chilcott Limited, (2)     63,945    
  21,530     Watson Pharmaceuticals Inc., (2)     1,479,757    
    Total Pharmaceuticals     16,397,901    
    Professional Services – 0.0%  
  2,630     Acacia Research, (2)     96,495    
  1,560     Towers Watson & Company, Class A Shares     102,508    
    Total Professional Services     199,003    
    Real Estate – 0.6%  
  30,860     Annaly Capital Management Inc.     556,714    
  23,530     Anworth Mortgage Asset Corporation     176,710    
  2,340     Camden Property Trust     148,871    
  11,160     Digital Realty Trust Inc.     689,465    
  10,950     Duke Realty Corporation     153,410    
  5,900     Dupont Fabros Technology Inc.     148,680    
  2,720     Equity Lifestyles Properties Inc.     169,837    
  1,400     Essex Property Trust Inc.     189,406    
  2,120     Home Properties New York, Inc.     129,066    
  5,450     LaSalle Hotel Properties     143,553    
  2,272     PS Business Parks Inc.     125,187    
  5,540     Ramco-Gershenson Properties Trust     68,585    
  9,180     Rayonier Inc.     599,913    
  6,089     Simon Property Group, Inc.     707,724    
  2,400     Taubman Centers Inc.     142,080    
  111,300     Westfield Group, (16)     1,037,376    
  111,300     Westfield Realty Trust, (16)     324,434    
    Total Real Estate     5,511,011    
    Real Estate Management & Development – 0.4%  
  67,160     Brookfield Properties Corporation     1,297,310    
  246,918     Hysan Development Company, (16)     1,229,695    
  2,300     Jones Lang LaSalle Inc.     216,890    
  31,500     Solidere, GDR, 144A, (16)     550,305    
    Total Real Estate Management & Development     3,294,200    
    Road & Rail – 0.5%  
  19,530     CSX Corporation     512,077    
  7,967     East Japan Railway Company, (16)     76,324    
  21,700     East Japan Railway Company, (16)     1,242,776    
  3,640     Genesee & Wyoming Inc.     213,450    
  7,150     Hertz Global Holdings Inc., (2)     113,542    
  5,560     J.B. Hunt Transports Serives Inc.     261,820    
  15,440     Kansas City Southern Industries, (2)     916,055    
  2,550     Norfolk Southern Corporation     191,072    
  7,430     Ryder System, Inc.     422,396    

 

Nuveen Investments
29



JPC

Nuveen Multi-Strategy Income and Growth Fund (continued)

Portfolio of INVESTMENTS June 30, 2011 (Unaudited)

Shares   Description (1)   Value  
    Road & Rail (continued)  
  16,500     West Japan Railway Company, (16)   $ 644,143    
    Total Road & Rail     4,593,655    
    Semiconductors & Equipment – 0.3%  
  46,880     ASM Lithography Holding NV, (16)     1,729,157    
  23,240     Cypress Semiconductor Corporation, (2)     491,294    
  15,000     Intel Corporation     332,400    
  8,860     KLA-Tencor Corporation     358,653    
  11,890     Micron Technology, Inc., (2)     88,937    
  10,660     ON Semiconductor Corporation, (2)     111,610    
  14,780     Silicon Image, Inc., (2)     95,479    
    Total Semiconductors & Equipment     3,207,530    
    Software – 0.5%  
  3,240     Advent Software Inc., (2)     91,271    
  5,150     Ansys Inc., (2)     281,551    
  2,350     BMC Software, Inc., (2)     128,545    
  3,150     CommVault Systems, Inc., (2)     140,018    
  2,740     Manhattan Associates Inc., (2)     94,366    
  1,270     Micros Systems, Inc., (2)     63,132    
  114,750     Microsoft Corporation, (3)     2,983,500    
  21,690     Oracle Corporation     713,818    
  2,080     Rovi Corporation, (2)     119,309    
  1,050     Salesforce.com, Inc., (2)     156,429    
  2,190     VirnetX Holding Corporation     63,379    
    Total Software     4,835,318    
    Specialty Retail – 0.4%  
  5,590     Advance Auto Parts, Inc.     326,959    
  7,100     Best Buy Co., Inc.     223,011    
  2,320     Body Central Corporation     54,590    
  9,740     CarMax, Inc., (2)     322,102    
  7,350     Home Depot, Inc.     266,216    
  13,280     Limited Brands, Inc.     510,615    
  6,330     Tiffany & Co.     497,030    
  13,050     Tractor Supply Company     872,783    
  24,330     Williams-Sonoma Inc.     887,801    
    Total Specialty Retail     3,961,107    
    Textiles, Apparel & Luxury Goods – 0.5%  
  70,570     Burberry Group PLC, (16)     1,641,080    
  800     Fossil Inc., (2)     94,175    
  9,710     LVMH Moet Hennessy, (16)     1,744,857    
  3,830     Oxford Industries Inc.     129,300    
  455,455     Yue Yuen Industrial Holdings Limited, (16)     1,448,801    
    Total Textiles, Apparel & Luxury Goods     5,058,213    
    Tobacco – 0.5%  
  17,950     Alliance One International, Inc., (2)     57,978    
  23,710     Altria Group, Inc.     626,180    
  33,910     British American Tobacco PLC, (16)     1,487,006    
  29,500     Eastern Tobacco, (16)     520,403    
  19,415     Philip Morris International     1,296,339    
  14,290     Reynolds American Inc.     529,444    
    Total Tobacco     4,517,350    

 

Nuveen Investments
30



Shares   Description (1)   Value  
    Trading Companies & Distributors – 0.3%  
  4,657     CAI International Inc.   $ 96,213    
  146,464     Mitsui & Company Limited, (16)     2,532,380    
  5,410     United Rentals Inc.     137,413    
    Total Trading Companies & Distributors     2,766,006    
    Water Utilities – 0.0%  
  2,230     American Water Works Company     65,673    
    Wireless Telecommunication Services – 0.6%  
  23,556     Millicom International Cellular S.A., (16)     2,467,947    
  128,286     Turkcell Iletisim Hizmetleri A.S., ADR, (3)     1,738,274    
  460,240     Vodafone Group PLC, (16)     1,220,390    
    Total Wireless Telecommunication Services     5,426,611    
    Total Common Stocks (cost $299,336,162)     342,568,773    

 

Shares   Description (1)   Coupon     Ratings (4)   Value  
    Convertible Preferred Securities – 1.0% (0.8% of Total Investments)  
    Capital Markets – 0.0%  
  5,800     AMG Capital Trust II, Convertible Bond     5.150 %         BB   $ 246,500    
    Commercial Banks – 0.4%  
  3,500     Credit Suisse AG     7.875 %         BBB+     3,631,250    
    Food Products – 0.1%  
  5,300     Bunge Limited, Convertible Bonds     4.875 %         Ba1     532,650    
    Gas Utilities – 0.0%  
  3,915     El Paso Energy Capital Trust I, Convertible Preferred     4.750 %         B     174,296    
    Health Care Providers & Services – 0.0%  
  8,350     Omnicare Capital Trust II, Series B     4.000 %         B     401,635    
    Independent Power Producers & Energy Traders – 0.1%  
  14,462     AES Trust III, Convertible Preferred     6.750 %         B     712,398    
    Insurance – 0.0%  
  5,150     Aspen Insurance Holdings Limited     5.625 %         BBB-     266,770    
    Machinery – 0.1%  
  7,050     Stanley, Black, and Decker Inc.     4.750 %         BBB+     857,774    
    Media – 0.0%  
  100     Interpublic Group Companies Inc., Convertible Notes     0.000 %         B+     106,500    
    Oil, Gas & Consumable Fuels – 0.1%  
  1,000     Chesapeake Energy Corporation, Convertible     5.750 %         B+     1,260,000    
    Real Estate – 0.2%  
  22,483     CommonWealth REIT, Convertible Debt     6.500 %         Baa3     501,371    
  19,650     Health Care REIT, Inc., Convertible Bonds     6.500 %         Baa3     1,012,171    
    Total Real Estate                         1,513,542    
    Total Convertible Preferred Securities (cost $9,457,955)                         9,703,315    

 

Nuveen Investments
31



JPC

Nuveen Multi-Strategy Income and Growth Fund (continued)

Portfolio of INVESTMENTS June 30, 2011 (Unaudited)

Shares   Description (1)   Coupon     Ratings (4)   Value  
    $25 Par (or similar) Preferred Securities – 31.7% (24.2% of Total Investments)  
    Capital Markets – 3.2%  
  91,000     Ameriprise Financial, Inc.     7.750 %         A   $ 2,497,040    
  70,437     BNY Capital Trust V, Series F     5.950 %         A1     1,779,943    
  95,044     Credit Suisse     7.900 %         A3     2,500,608    
  886,930     Deutsche Bank Capital Funding Trust II     6.550 %         BBB     21,241,974    
  8,000     Deutsche Bank Capital Funding Trust IX     6.625 %         BBB     192,240    
  20,300     Goldman Sachs Group Inc., Series 2004-4 (CORTS)     6.000 %         A3     470,554    
  8,000     Goldman Sachs Group Inc., Series GSC-3 (PPLUS)     6.000 %         A3     184,480    
  1,000     Goldman Sachs Group Inc.     6.125 %         A1     24,940    
  1,500,000     Macquarie PMI LLC     8.375 %         BBB     1,590,075    
  600     Morgan Stanley Capital Trust III     6.250 %         Baa2     14,676    
  2,700     Morgan Stanley Capital Trust IV     6.250 %         Baa2     65,178    
    Total Capital Markets                         30,561,708    
    Commercial Banks – 2.6%  
  1,000     ABN AMRO North America Capital Funding, 144A     6.968 %         BB     685,938    
  334,600     Banco Santander Finance     10.500 %         A-     9,395,568    
  14,600     Barclays Bank PLC     7.750 %         A-     374,928    
  36,900     Barclays Bank PLC     7.100 %         A+     935,415    
  59,300     BB&T Capital Trust VI     9.600 %         Baa1     1,594,577    
  73,300     BB&T Capital Trust VII     8.100 %         Baa1     1,918,994    
  3,450     Fifth Third Bancorp, Convertible Bond     8.500 %         Ba1     488,037    
  2,000,000     HSBC Bank PLC     1.000 %         A     1,220,000    
  16,300     HSBC Holdings PLC, (2)     8.000 %         A-     443,197    
  22,700     HSBC Holdings PLC     6.200 %         A-     554,334    
  14,500     HSBC USA Inc., Series F     2.858 %         A-     688,750    
  1,900     KeyCorp Capital Trust IX     6.750 %         Baa3     48,051    
  79,592     Merrill Lynch Preferred Capital Trust V     7.280 %         Baa3     1,976,269    
  500,000     National Australia Bank     8.000 %         A+     542,600    
  400     National City Capital Trust II     6.625 %         BBB     10,200    
  3,600     Wells Fargo & Company, Convertible Bond     7.500 %         A-     3,816,000    
    Total Commercial Banks                         24,692,858    
    Diversified Financial Services – 3.2%  
  3,060     Bank of America Corporation     7.250 %         BB+     3,063,672    
  33,000     Citigroup Capital Trust XI     6.000 %         BB+     769,560    
  5,400     Citigroup Capital Trust XII     8.500 %         BB+     139,428    
  125,768     Citigroup Capital XIII     7.875 %         BB+     3,493,835    
  40,000     Citigroup Capital XVI     6.450 %         BB+     964,000    
  16,300     Citigroup Capital XVII     6.350 %         BB+     389,244    
  32,600     Countrywide Capital Trust IV     6.750 %         Baa3     806,850    
  644,975     ING Groep N.V     7.050 %         BBB-     15,763,189    
  114,469     JPMorgan Chase Capital Trust XI     5.875 %         A2     2,862,870    
  38,700     JPMorgan Chase Capital Trust XXIX     6.700 %         A2     983,754    
  2,200     MBNA Corporation, Capital Trust     8.125 %         Baa3     55,880    
  43,650     Merrill Lynch Capital Trust II     6.450 %         Baa3     1,033,196    
    Total Diversified Financial Services                         30,325,478    
    Diversified Telecommunication Services – 0.4%  
  164,547     Telephone and Data Systems Inc.     6.875 %         Baa2     4,146,584    
    Electric Utilities – 0.2%  
  59,800     Entergy Texas Inc.     7.875 %         BBB+     1,734,200    
    Food Products – 0.2%  
  25,000     Dairy Farmers of America Inc., 144A     7.875 %         BBB-     2,244,533    

 

Nuveen Investments
32



Shares   Description (1)   Coupon     Ratings (4)   Value  
    Insurance – 5.3%  
  624,430     Aegon N.V.     6.375 %         BBB   $ 14,742,792    
  24,200     Allianz SE     8.375 %         A+     633,738    
  2,611     Arch Capital Group Limited, Series B     7.875 %         BBB     66,319    
  332,571     Arch Capital Group Limited     8.000 %         BBB     8,430,675    
  2,505     Assured Guaranty Municipal Holdings     6.250 %         A+     57,665    
  2,750,000     Dai-Ichi Mutual Life, 144A     7.250 %         A3     2,748,386    
  275,756     EverestRe Capital Trust II     6.200 %         Baa1     6,714,659    
  557,569     PartnerRe Limited     6.750 %         BBB+     13,755,227    
  64,810     PLC Capital Trust III     7.500 %         BBB     1,637,749    
  5,800     PLC Capital Trust IV     7.250 %         BBB     145,058    
  2,000     RenaissanceRe Holdings Limited, Series C     6.080 %         BBB+     47,740    
  32,197     RenaissanceRe Holdings Limited, Series D     6.600 %         BBB+     801,383    
    Total Insurance                         49,781,391    
    Media – 4.3%  
  464,395     CBS Corporation     6.750 %         BBB-     11,823,497    
  475,431     Comcast Corporation     7.000 %         BBB+     12,075,947    
  97,000     Comcast Corporation     6.625 %         BBB+     2,495,810    
  577,046     Viacom Inc.     6.850 %         BBB+     14,639,657    
    Total Media                         41,034,911    
    Multi-Utilities – 1.1%  
  216,300     Dominion Resources Inc.     8.375 %         BBB     6,188,343    
  157,583     Xcel Energy Inc.     7.600 %         BBB     4,333,533    
    Total Multi-Utilities                         10,521,876    
    Oil, Gas & Consumable Fuels – 1.1%  
  422,177     Nexen Inc.     7.350 %         BB+     10,740,183    
    Real Estate – 9.3%  
  626,822     CommomWealth REIT     7.125 %         Baa3     15,739,500    
  2,300     Duke Realty Corporation, Series O     8.375 %         Baa3     62,238    
  1,400     Harris Preferred Capital Corporation, Series A     7.375 %         A-     35,294    
  317,306     Kimco Realty Corporation, Series F     6.650 %         Baa2     7,888,227    
  109,832     Kimco Realty Corporation, Series G     7.750 %         Baa2     2,862,222    
  35,862     Kimco Realty Corporation, Series H     6.900 %         Baa2     902,647    
  40,882     Prologis Inc.     8.540 %         Baa3     2,199,963    
  2,000     PS Business Parks, Inc.     0.000 %         BBB-     50,640    
  33,774     Public Storage, Inc., Series C     6.600 %         BBB+     852,118    
  43,700     Public Storage, Inc., Series E     6.750 %         BBB+     1,106,047    
  9,359     Public Storage, Inc., Series H     6.950 %         BBB+     236,596    
  21,539     Public Storage, Inc., Series M     6.625 %         BBB+     554,629    
  23,500     Public Storage, Inc., Series Q     6.500 %         BBB+     602,070    
  214,997     Public Storage, Inc.     6.750 %         BBB+     5,493,173    
  205,058     Realty Income Corporation     6.750 %         Baa2     5,243,333    
  109,768     Regency Centers Corporation     7.450 %         Baa3     2,773,837    
  143,828     Vornado Realty LP     7.875 %         BBB     3,940,887