N-Q 1 d26761dnq.htm NUVEEN PREFERRED INCOME OPPORTUNITIES FUND Nuveen Preferred Income Opportunities Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21293

Nuveen Preferred Income Opportunities Fund

(Exact name of registrant as specified in charter)

    333 West Wacker Drive, Chicago, Illinois 60606    

(Address of principal executive offices) (Zip code)

Kevin J. McCarthy—Vice President and Secretary

    333 West Wacker Drive, Chicago, Illinois 60606    

(Name and address of agent for service)

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

Date of fiscal year end:       July 31      

Date of reporting period:  October 31, 2015  

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 

 

 

 

 


Item 1. Schedule of Investments

 

 


JPC

 

Nuveen Preferred Income Opportunities Fund

  

Portfolio of Investments

   October 31, 2015 (Unaudited)

 

Shares     Description (1)                     Value  
 

LONG-TERM INVESTMENTS – 139.1% (99.0% of Total Investments)

        
 

COMMON STOCKS – 6.8% (4.9% of Total Investments)

          
      Air Freight & Logistics – 0.5%                     
  49,900     

United Parcel Service, Inc., Class B

                 $ 5,140,698   
      Automobiles – 0.3%                     
  225,200     

Ford Motor Company, (3)

                   3,335,212   
      Biotechnology – 0.9%                     
  82,700     

Gilead Sciences, Inc.

                   8,942,351   
      Capital Markets – 0.8%                     
  220,435     

Ares Capital Corporation

             3,357,225   
  281,468     

Hercules Technology Growth Capital, Inc., (2)

             3,141,183   
  97,832     

TPG Specialty Lending, Inc.

                   1,663,144   
 

Total Capital Markets

                   8,161,552   
      Industrial Conglomerates – 0.3%                     
  127,400     

Philips Electronics

                   3,432,156   
      Insurance – 0.4%                     
  105,800     

Unum Group

                   3,665,970   
      Media – 0.3%                     
  134,255     

National CineMedia, Inc., (3)

             1,906,421   
  28,835     

Viacom Inc., Class B, (3)

                   1,421,854   
 

Total Media

                   3,328,275   
      Oil, Gas & Consumable Fuels – 0.3%                     
  31,900     

Phillips 66, (3)

                   2,840,695   
      Pharmaceuticals – 1.1%                     
  161,200     

AstraZeneca PLC, Sponsored ADR, (2)

             5,140,668   
  129,400     

GlaxoSmithKline PLC, Sponsored ADR, (3)

                   5,571,964   
 

Total Pharmaceuticals

                   10,712,632   
      Real Estate Investment Trust – 0.7%                     
  222,800     

National Storage Affiliates Trust

             3,350,912   
  269,562     

New Residential Investment

                   3,269,787   
 

Total Real Estate Investment Trust

                   6,620,699   
      Software – 0.2%                     
  64,800     

Oracle Corporation

                   2,516,832   
      Technology Hardware, Storage & Peripherals – 0.5%                     
  98,500     

NetApp, Inc., (3)

             3,349,000   
  43,800     

Seagate Technology, (3)

                   1,667,028   
 

Total Technology Hardware, Storage & Peripherals

                   5,016,028   
      Tobacco – 0.5%                     
  187,015     

Vector Group Ltd.

                   4,535,114   
 

Total Common Stocks (cost $68,390,211)

                   68,248,214   

 

Nuveen Investments     1   


JPC    Nuveen Preferred Income Opportunities Fund
   Portfolio of Investments (continued)    October 31, 2015 (Unaudited)

 

Shares     Description (1)   Coupon            Ratings (4)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED SECURITIES – 62.8% (44.7% of Total Investments)

  

  
      Banks – 11.1%                         
  15,202     

Boston Private Financial Holdings Inc.

    6.950%            N/R       $ 384,763   
  148,007     

Citigroup Inc.

    8.125%            BB+         4,216,719   
  445,498     

Citigroup Inc.

    7.125%            BB+         12,282,380   
  53,769     

Citigroup Inc.

    6.875%            BB+         1,480,798   
  200,575     

City National Corporation

    6.750%            Baa2         5,826,704   
  288,251     

Countrywide Capital Trust III

    7.000%            BBB–         7,402,286   
  131,060     

Cowen Group, Inc.

    8.250%            N/R         3,442,946   
  152,203     

Fifth Third Bancorp.

    6.625%            Baa3         4,246,464   
  117,760     

First Naigara Finance Group

    8.625%            BB–         3,243,110   
  123,900     

FNB Corporation

    7.250%            Ba2         3,617,880   
  138,932     

HSBC Holdings PLC

    8.000%            Baa1         3,612,232   
  46,421     

PNC Financial Services

    6.125%            Baa2         1,292,825   
  260,212     

Private Bancorp Incorporated

    7.125%            N/R         7,067,358   
  304,458     

RBS Capital Trust

    6.080%            BB–         7,581,004   
  79,430     

Regions Financial Corporation

    6.375%            BB         2,065,180   
  444,575     

Regions Financial Corporation

    6.375%            BB         11,772,346   
  133,300     

TCF Financial Corporation

    7.500%            BB–         3,599,100   
  109,600     

Texas Capital Bancshares Inc.

    6.500%            Ba2         2,802,472   
  149,800     

U.S. Bancorp.

    6.500%            A3         4,341,204   
  216,373     

Webster Financial Corporation

    6.400%            Baa3         5,517,512   
  170,400     

Wells Fargo & Company

    6.625%            BBB         4,795,056   
  187,983     

Zions Bancorporation

    7.900%            BB–         4,990,949   
  196,000     

Zions Bancorporation

    6.300%              BB–         5,121,480   
 

Total Banks

                           110,702,768   
      Capital Markets – 8.2%                         
  130,200     

Apollo Investment Corporation

    6.875%            BBB         3,308,382   
  112,775     

Apollo Investment Corporation

    6.625%            BBB         2,852,080   
  187,440     

Capitala Finance Corporation

    7.125%            N/R         4,764,725   
  133,500     

Charles Schwab Corporation

    6.000%            BBB         3,458,985   
  150,400     

Fifth Street Finance Corporation

    6.125%            BBB–         3,741,952   
  60,700     

Gladstone Capital Corporation

    6.750%            N/R         1,556,348   
  43,604     

Gladstone Investment Corporation

    7.125%            N/R         1,105,797   
  89,100     

Goldman Sachs Group, Inc.

    5.500%            Ba1         2,217,699   
  121,700     

Hercules Technology Growth Capital Incorporated

    7.000%            N/R         3,088,746   
  56,207     

Hercules Technology Growth Capital Incorporated

    7.000%            N/R         1,420,913   
  163,458     

Hercules Technology Growth Capital Incorporated

    6.250%            N/R         4,101,161   
  37,355     

JMP Group Inc.

    7.250%            N/R         940,599   
  284,951     

Ladenburg Thalmann Financial Services Inc.

    8.000%            N/R         6,778,984   
  726,400     

Morgan Stanley

    7.125%            Ba1         20,230,240   
  239,900     

Morgan Stanley

    6.875%            Ba1         6,489,295   
  142,869     

MVC Capital Incorporated

    7.250%            N/R         3,500,291   
  261,622     

Solar Capital Limited

    6.750%            BBB–         6,399,274   
  72,375     

THL Credit Inc.

    6.750%            N/R         1,831,088   
  160,678     

Triangle Capital Corporation

    6.375%              N/R         4,041,052   
 

Total Capital Markets

                           81,827,611   
      Consumer Finance – 1.3%                         
  48,000     

Capital One Financial Corporation

    6.700%            Baa3         1,306,080   
  272,000     

Discover Financial Services

    6.500%            BB–         7,259,680   
  90,659     

SLM Corporation, Series A

    6.970%              B1         3,952,732   
 

Total Consumer Finance

                           12,518,492   
      Diversified Financial Services – 2.4%                         
  70,791     

KCAP Financial Inc.

    7.375%            N/R         1,787,473   
  30,291     

KKR Financial Holdings LLC

    7.500%            A–         807,861   
  325,399     

KKR Financial Holdings LLC

    7.375%            BBB         8,613,312   
  157,732     

Main Street Capital Corporation

    6.125%            N/R         4,033,207   
  106,415     

Oxford Lane Capital Corporation

    8.125%            N/R         2,696,556   
  108,131     

Oxford Lane Capital Corporation

    7.500%            N/R         2,592,981   
  125,300     

PennantPark Investment Corporation

    6.250%              BBB–         3,148,789   
 

Total Diversified Financial Services

                           23,680,179   

 

  2      Nuveen Investments


Shares     Description (1)   Coupon            Ratings (4)      Value  
      Diversified Telecommunication Services – 1.0%                         
  128,265     

Qwest Corporation

    7.000%            BBB–       $ 3,350,282   
  137,015     

Qwest Corporation

    6.875%            BBB–         3,534,987   
  70,600     

Qwest Corporation

    6.625%            Baa3         1,771,354   
  57,500     

Verizon Communications Inc.

    5.900%              A–         1,529,500   
 

Total Diversified Telecommunication Services

                           10,186,123   
      Electric Utilities – 0.3%                         
  136,900     

Entergy Arkansas Inc., (5)

    6.450%              BB+         3,439,613   
      Food Products – 3.2%                         
  249,300     

CHS Inc.

    7.875%            N/R         7,159,896   
  410,600     

CHS Inc.

    7.100%            N/R         11,365,408   
  444,804     

CHS Inc.

    6.750%            N/R         11,991,916   
  19,500     

Dairy Farmers of America Inc., 144A, (5)

    7.785%              Baa3         1,982,298   
 

Total Food Products

                           32,499,518   
      Insurance – 11.1%                         
  54,045     

Aegon N.V

    8.000%            Baa1         1,495,966   
  451,930     

Arch Capital Group Limited

    6.750%            BBB+         12,138,840   
  302,283     

Argo Group US Inc.

    6.500%            BBB–         7,705,194   
  55,200     

Aspen Insurance Holdings Limited

    7.401%            BBB–         1,409,808   
  56,086     

Aspen Insurance Holdings Limited

    7.250%            BBB–         1,495,253   
  393,800     

Aspen Insurance Holdings Limited

    5.950%            BBB–         10,037,962   
  412,734     

Axis Capital Holdings Limited

    6.875%            BBB         11,160,327   
  56,900     

Delphi Financial Group, Inc., (5)

    7.376%            BB+         1,401,163   
  223,900     

Endurance Specialty Holdings Limited

    7.500%            BBB–         5,832,595   
  42,470     

Hanover Insurance Group

    6.350%            BB+         1,080,437   
  138,124     

Hartford Financial Services Group Inc.

    7.875%            BBB–         4,254,219   
  484,200     

Kemper Corporation

    7.375%            Ba1         13,383,288   
  298,139     

Maiden Holdings Limited

    8.250%            BB         7,912,609   
  233,932     

Maiden Holdings Limited

    8.000%            BBB–         6,082,232   
  291,133     

Maiden Holdings Limited

    7.750%            BBB–         7,895,527   
  55,841     

National General Holding Company

    7.625%            N/R         1,367,546   
  76,400     

National General Holding Company

    7.500%            N/R         1,929,864   
  199,150     

National General Holding Company

    7.500%            N/R         5,056,419   
  319,672     

Reinsurance Group of America Inc.

    6.200%              BBB         9,264,095   
 

Total Insurance

                           110,903,344   
      Oil, Gas & Consumable Fuels – 1.2%                         
  308,741     

Nustar Logistics Limited Partnership

    7.625%            Ba2         7,909,944   
  93,775     

Scorpio Tankers Inc.

    7.500%            N/R         2,367,819   
  76,005     

Scorpio Tankers Inc.

    6.750%              N/R         1,734,434   
 

Total Oil, Gas & Consumable Fuels

                           12,012,197   
      Real Estate Investment Trust – 13.1%                         
  166,084     

AG Mortgage Investment Trust

    8.000%            N/R         3,926,226   
  24,296     

Apartment Investment & Management Company

    7.000%            BB         620,763   
  57,165     

Apartment Investment & Management Company

    6.875%            BB         1,492,007   
  149,500     

Apollo Commercial Real Estate Finance

    8.625%            N/R         3,898,960   
  188,528     

Apollo Residential Mortgage Inc.

    8.000%            N/R         4,364,423   
  141,555     

Arbor Realty Trust Incorporated

    7.375%            N/R         3,538,875   
  133,192     

Ashford Hospitality Trust Inc.

    9.000%            N/R         3,397,728   
  37,399     

Ashford Hospitality Trust Inc.

    8.450%            N/R         943,577   
  139,015     

Capstead Mortgage Corporation

    7.500%            N/R         3,386,405   
  186,579     

Cedar Shopping Centers Inc., Series A

    7.250%            N/R         4,662,609   
  208,314     

Chesapeake Lodging Trust

    7.750%            N/R         5,622,395   
  124,150     

Colony Financial Inc.

    7.125%            N/R         2,811,998   
  23,967     

Colony Financial Inc.

    8.500%            N/R         634,646   
  102,520     

Colony Financial Inc.

    7.500%            N/R         2,477,908   
  50,000     

Coresite Realty Corporation

    7.250%            N/R         1,300,000   
  270,925     

DDR Corporation

    6.500%            Baa3         7,076,561   
  180,964     

Digital Realty Trust Inc.

    7.375%            Baa3         4,967,462   

 

Nuveen Investments     3   


JPC    Nuveen Preferred Income Opportunities Fund
   Portfolio of Investments (continued)    October 31, 2015 (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (4)      Value  
      Real Estate Investment Trust (continued)                           
  34,270     

Digital Realty Trust Inc.

    7.000%            Baa3       $ 886,565   
  214,845     

Dupont Fabros Technology

    7.875%            Ba2         5,411,946   
  245,332     

First Potomac Realty Trust

    7.750%            N/R         6,300,126   
  70,136     

Hospitality Properties Trust

    7.125%            Baa3         1,848,084   
  175,177     

Inland Real Estate Corporation

    8.125%            N/R         4,477,524   
  22,200     

Inland Real Estate Corporation

    6.950%            N/R         559,440   
  82,940     

Invesco Mortgage Capital Inc.

    7.750%            N/R         1,924,208   
  123,064     

Invesco Mortgage Capital Inc.

    7.750%            N/R         2,847,701   
  19,850     

Kite Realty Group Trust

    8.250%            N/R         506,175   
  177,649     

MFA Financial Inc.

    8.000%            N/R         4,538,932   
  182,859     

Northstar Realty Finance Corporation

    8.875%            N/R         4,459,931   
  51,926     

Northstar Realty Finance Corporation

    8.750%            N/R         1,248,820   
  167,106     

Northstar Realty Finance Corporation

    8.250%            N/R         3,947,044   
  72,400     

Penn Real Estate Investment Trust

    7.375%            N/R         1,849,096   
  200,000     

Penn Real Estate Investment Trust

    8.250%            N/R         5,148,000   
  137,718     

Rait Financial Trust

    7.625%            N/R         2,959,560   
  85,253     

Rait Financial Trust

    7.125%            N/R         1,948,884   
  149,039     

Regency Centers Corporation

    6.625%            Baa2         3,872,033   
  101,487     

Resource Capital Corporation

    8.625%            N/R         1,873,450   
  227,593     

Senior Housing Properties Trust

    5.625%            BBB–         5,619,271   
  7,474     

Summit Hotel Properties Inc.

    7.875%            N/R         196,193   
  149,300     

Urstadt Biddle Properties

    7.125%            N/R         3,945,999   
  269,495     

VEREIT, Inc.

    6.700%            N/R         6,686,171   
  107,000     

Wells Fargo REIT

    6.375%                  BBB+         2,822,659   
 

Total Real Estate Investment Trust

                               131,000,355   
      Real Estate Management & Development – 0.3%                           
  110,000     

Kennedy-Wilson Inc.

    7.750%                  BB–         2,875,400   
      Specialty Retail – 1.0%                           
  260,674     

TravelCenters of America LLC

    8.000%            N/R         6,696,714   
  125,000     

TravelCenters of America LLC

    8.000%                  N/R         3,142,499   
 

Total Specialty Retail

                               9,839,213   
      Thrifts & Mortgage Finance – 0.1%                           
  52,102     

Everbank Financial Corporation

    6.750%                  N/R         1,330,164   
      U.S. Agency – 7.5%                           
  128,500     

AgriBank FCB, (5)

    6.875%            BBB+         13,444,313   
  48,055     

Cobank Agricultural Credit Bank, (5)

    6.200%            BBB+         4,933,149   
  38,725     

Cobank Agricultural Credit Bank, (5)

    6.125%            BBB+         3,530,028   
  172,975     

Cobank Agricultural Credit Bank, 144A, (5)

    6.250%            BBB+         17,892,101   
  260,300     

Farm Credit Bank of Texas, 144A, (5)

    6.750%            Baa1         27,372,182   
  160,700     

Federal Agricultural Mortgage Corporation

    6.875%            N/R         4,314,794   
  143,400     

Federal Agricultural Mortgage Corporation

    6.000%                  N/R         3,692,549   
 

Total U.S. Agency

                               75,179,116   
      Wireless Telecommunication Services – 1.0%                           
  393,596     

United States Cellular Corporation

    7.250%                  Ba1         10,083,930   
 

Total $25 Par (or similar) Retail Preferred (cost $603,231,868)

  

                       628,078,023   
Shares     Description (1)   Coupon      Maturity      Ratings (4)      Value  
 

CONVERTIBLE PREFERRED SECURITIES – 1.1% (0.7% of Total Investments)

  

  
      Diversified Financial Services – 0.4%                           
  2,825     

Wells Fargo & Company

    7.500%         N/A (6)         BBB       $ 3,347,625   
      Diversified Telecommunication Services – 0.7%                           
  74,100     

Frontier Communications Corporation

    11.125%         6/29/18         N/R         7,345,533   
 

Total Convertible Preferred Securities (cost $10,781,515)

                               10,693,158   

 

  4      Nuveen Investments


Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (4)      Value  
 

CORPORATE BONDS – 9.1% (6.5% of Total Investments)

  

  
      Banks – 3.4%                           
$ 6,000     

Bank of America Corporation

    6.250%         3/05/65         BB+       $ 6,084,300   
  5,020     

Citigroup Inc.

    5.950%         12/31/49         BB+         4,844,300   
  8,080     

Citigroup Inc.

    5.875%         12/29/49         BB+         7,997,261   
  3,950     

Credit Agricole, S.A, 144A

    6.625%         12/23/64         BB+         3,890,750   
  3,425     

ING Groep N.V

    6.500%         10/16/65         Ba1         3,294,422   
  4,460     

JPMorgan Chase & Company

    5.300%         11/01/65         BBB–         4,473,380   
  3,550     

Standard Chartered PLC, 144A

    6.500%         10/02/65         BBB–         3,503,296   
  34,485     

Total Banks

                               34,087,709   
      Beverages – 0.5%                           
  1,100     

Cott Beverages Inc.

    6.750%         1/01/20         B–         1,166,000   
  3,450     

Cott Beverages Inc.

    5.375%         7/01/22         B–         3,432,750   
  4,550     

Total Beverages

                               4,598,750   
      Biotechnology – 0.3%                           
  3,500     

AMAG Pharmaceuticals Inc., 144A

    7.875%         9/01/23         B+         3,263,750   
      Capital Markets – 1.1%                           
  2,200     

BGC Partners Inc.

    5.375%         12/09/19         BBB–         2,298,010   
  9,320     

Goldman Sachs Group Inc.

    5.375%         11/10/65         Ba1         9,226,800   
  11,520     

Total Capital Markets

                               11,524,810   
      Commercial Services & Supplies – 0.5%                           
  3,320     

GFL Environmental Corporation, 144A

    7.875%         4/01/20         B         3,390,550   
  1,255     

R.R. Donnelley & Sons Company

    6.500%         11/15/23         BB–         1,176,563   
  4,575     

Total Commercial Services & Supplies

                               4,567,113   
      Diversified Consumer Services – 0.2%                           
  1,885     

Gibson Brands Inc., 144A

    8.875%         8/01/18         B–         1,654,088   
      Diversified Telecommunication Services – 0.6%                           
  4,125     

Frontier Communications Corporation, 144A

    11.000%         9/15/25         BB         4,323,495   
  1,675     

Frontier Communications Corporation

    7.625%         4/15/24         BB         1,499,125   
  5,800     

Total Diversified Telecommunication Services

                               5,822,620   
      Food Products – 0.1%                           
  1,010     

Land O’ Lakes Capital Trust I, 144A

    7.450%         3/15/28         BB         1,070,600   
      Health Care Providers & Services – 0.3%                           
  3,040     

Kindred Healthcare Inc.

    6.375%         4/15/22         B2         2,872,800   
      Insurance – 0.2%                           
  1,835     

Security Benefit Life Insurance Company, 144A

    7.450%         10/01/33         BBB         2,251,099   
      Marine – 0.5%                           
  6,050     

Teekay Offshore Partners LP/Teekay Offshore Finance Corporation

    6.000%         7/30/19         N/R         4,673,625   
      Media – 0.3%                           
  1,925     

Altice S.A, 144A

    7.625%         2/15/25         B         1,770,038   
  1,470     

Dish DBS Corporation

    5.875%         11/15/24         BB–         1,406,055   
  3,395     

Total Media

                               3,176,093   
      Real Estate Investment Trust – 0.5%                           
  3,525     

Communications Sales & Leasing Inc.

    8.250%         10/15/23         BB         3,258,863   
  1,640     

Select Income REIT

    4.500%         2/01/25         Baa2         1,565,099   
  5,165     

Total Real Estate Investment Trust

                               4,823,962   

 

Nuveen Investments     5   


JPC    Nuveen Preferred Income Opportunities Fund
   Portfolio of Investments (continued)    October 31, 2015 (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (4)      Value  
      Real Estate Management & Development – 0.5%                           
$ 4,100     

Forestar USA Real Estate Group Inc., 144A, (2)

    8.500%         6/01/22         B+       $ 4,161,499   
  850     

Kennedy-Wilson Holdings Incorporated

    5.875%         4/01/24         BB–         842,562   
  4,950     

Total Real Estate Management & Development

                               5,004,061   
      Specialty Retail – 0.1%                           
  1,300     

L Brands, Inc., 144A

    6.875%         11/01/35         BB+         1,352,000   
$ 93,060    

Total Corporate Bonds (cost $92,829,716)

                               90,743,080   
Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (4)      Value  
 

$1,000 PAR (OR SIMIALR) INSTITUTIONAL PREFERRED – 59.3% (42.2% of Total Investments)

  

  
      Banks – 26.1%                           
  885     

Bank of America Corporation

    8.125%         N/A (6)         BB+       $ 921,586   
  18,795     

Bank of America Corporation, (3)

    6.500%         N/A (6)         BB+         19,640,963   
  4,200     

Bank of America Corporation

    6.100%         N/A (6)         BB+         4,247,250   
  6,265     

Bank of America Corporation

    8.000%         N/A (6)         BB+         6,531,889   
  3,575     

Barclays Bank PLC, 144A

    10.180%         6/12/21         A–         4,694,440   
  12,260     

Barclays PLC

    8.250%         N/A (6)         BB+         13,053,283   
  1,050     

Citigroup Inc.

    5.950%         N/A (6)         BB+         1,047,943   
  1,000     

Citigroup Inc.

    8.400%         N/A (6)         BB+         1,115,000   
  11,333     

Citigroup Inc., (3)

    5.800%         N/A (6)         BB+         11,262,169   
  7,214     

Citizens Financial Group Inc., 144A

    5.500%         N/A (6)         BB+         7,087,755   
  3,960     

Commerzbank AG, 144A

    8.125%         9/19/23         BBB–         4,585,363   
  1,025     

Credit Agricole SA, 144A

    7.875%         N/A (6)         BB+         1,051,776   
  6,635     

General Electric Capital Corporation, (3)

    6.250%         N/A (6)         Baa1         7,395,371   
  27,455     

General Electric Capital Corporation, (3)

    7.125%         N/A (6)         Baa1         32,259,620   
  1,000     

HSBC Bank PLC

    0.688%         9/20/17         A3         580,000   
  500     

HSBC Bank PLC

    0.600%         N/A (6)         A3         295,500   
  4,204     

HSBC Capital Funding LP, Debt, 144A

    10.176%         N/A (6)         Baa1         6,348,040   
  3,745     

HSBC Holdings PLC

    6.375%         N/A (6)         BBB         3,709,460   
  2,250     

HSBC Holdings PLC

    6.375%         N/A (6)         BBB         2,221,875   
  3,715     

Intesa Sanpaolo SpA, 144A

    7.700%         N/A (6)         Ba3         3,756,794   
  17,810     

JPMorgan Chase & Company

    6.750%         N/A (6)         BBB–         19,323,850   
  125     

JPMorgan Chase & Company

    6.100%         N/A (6)         BBB–         127,500   
  10,399     

JPMorgan Chase & Company

    7.900%         N/A (6)         BBB–         10,804,561   
  17,970     

Lloyd’s Banking Group PLC

    7.500%         N/A (6)         BB+         19,093,125   
  1,960     

M&T Bank Corporation

    6.450%         N/A (6)         Baa2         2,092,912   
  4,000     

Nordea Bank AB, 144A

    6.125%         N/A (6)         BBB         3,950,000   
  8,445     

PNC Financial Services Inc.

    6.750%         N/A (6)         Baa2         9,101,261   
  4,883     

Royal Bank of Scotland Group PLC

    7.648%         N/A (6)         BB         6,079,335   
  3,280     

Royal Bank of Scotland Group PLC

    7.500%         N/A (6)         BB–         3,394,800   
  13,906     

Societe Generale, 144A

    7.875%         N/A (6)         BB+         13,949,526   
  4,995     

SunTrust Bank Inc.

    5.625%         N/A (6)         Baa3         5,038,706   
  13,691     

Wells Fargo & Company, (3)

    7.980%         N/A (6)         BBB         14,580,915   
  13,250     

Wells Fargo & Company

    5.875%         N/A (6)         BBB         14,014,525   
  6,765     

Zions Bancorporation

    7.200%         N/A (6)         BB–         7,289,288   
 

Total Banks

                               260,646,381   
      Capital Markets – 3.5%                           
  3,270     

Bank of New York Mellon Corporation

    4.950%         N/A (6)         Baa1         3,270,000   
  16,945     

Credit Suisse Group AG, 144A

    7.500%         N/A (6)         BB+         17,888,667   
  700     

Deutsche Bank AG

    7.500%         N/A (6)         BB+         666,750   
  5,880     

Morgan Stanley

    5.550%         N/A (6)         Ba1         5,872,650   
  1,975     

State Street Corporation

    5.250%         N/A (6)         Baa1         1,982,110   
  5,375     

UBS Group AG, Reg S

    7.125%         N/A (6)         BB+         5,603,653   
 

Total Capital Markets

                               35,283,830   

 

  6      Nuveen Investments


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (4)      Value  
      Consumer Finance – 2.7%                           
  6,050     

Ally Financial Inc., 144A

    7.000%         N/A (6)         B       $ 6,165,896   
  5,271     

American Express Company

    5.200%         N/A (6)         Baa2         5,271,000   
  1,900     

American Express Company

    4.900%         N/A (6)         Baa2         1,843,000   
  14,180     

Capital One Financial Corporation

    5.550%         N/A (6)         Baa3         14,206,588   
 

Total Consumer Finance

                               27,486,484   
      Diversified Financial Services – 5.5%                           
  16,400     

Agstar Financial Services Inc., 144A

    6.750%         N/A (6)         BB         17,430,125   
  2,040     

Banco BTG Pactual SA/Luxembourg, 144A

    8.750%         N/A (6)         B2         1,848,240   
  4,065     

BNP Paribas, 144A

    7.375%         N/A (6)         BBB–         4,207,275   
  5,670     

BNP Paribas, 144A

    7.195%         N/A (6)         BBB         6,492,150   
  4,250     

Depository Trust & Clearing Corporation, 144A

    4.875%         N/A (6)         A+         4,271,250   
  15,183     

Rabobank Nederland, 144A

    11.000%         N/A (6)         Baa2         18,883,856   
  1,530     

Voya Financial Inc.

    5.650%         5/15/53         Baa3         1,549,125   
 

Total Diversified Financial Services

                               54,682,021   
      Food Products – 2.3%                           
  21,870     

Land O’ Lakes Incorporated, 144A

    8.000%         N/A (6)         BB         22,526,097   
      Insurance – 16.9%                           
  2,650     

Aquarius & Investments PLC fbo SwissRe, Reg S

    8.250%         N/A (6)         N/R         2,883,648   
  7,365     

Aviva PLC, Reg S

    8.250%         N/A (6)         BBB         8,048,693   
  905     

AXA SA

    8.600%         12/15/30         A3         1,239,289   
  7,814     

Catlin Insurance Company Limited, 144A

    7.249%         N/A (6)         BBB+         6,700,505   
  2,460     

Cloverie PLC Zurich Insurance, Reg S

    8.250%         N/A (6)         A         2,758,275   
  2,300     

CNP Assurances, Reg S

    7.500%         N/A (6)         BBB+         2,518,348   
  29,045     

Financial Security Assurance Holdings, 144A, (2)

    6.400%         12/15/66         BBB+         21,202,847   
  1,755     

Friends Life Group PLC, Reg S

    7.875%         N/A (6)         A–         1,958,240   
  670     

Glen Meadows Pass Through Trust, 144A

    6.505%         2/12/67         BBB–         579,550   
  2,108     

La Mondiale SAM, Reg S

    7.625%         N/A (6)         BBB         2,284,545   
  6,590     

Liberty Mutual Group, 144A

    7.800%         3/15/37         Baa3         7,726,775   
  9,335     

MetLife Capital Trust IV, 144A

    7.875%         12/15/37         BBB         11,575,400   
  5,285     

MetLife Capital Trust X, 144A

    9.250%         4/08/38         BBB         7,347,207   
  3,425     

MetLife Inc.

    5.250%         N/A (6)         BBB         3,457,110   
  13,770     

National Financial Services Inc.

    6.750%         5/15/37         Baa2         14,114,251   
  1,150     

Nationwide Financial Services Capital Trust

    7.899%         3/01/37         Baa2         1,274,489   
  6,855     

Provident Financing Trust I

    7.405%         3/15/38         Baa3         7,750,470   
  3,315     

Prudential Financial Inc.

    5.875%         9/15/42         BBB+         3,513,901   
  13,335     

QBE Cap Funding III Limited, 144A

    7.250%         5/24/41         BBB         14,768,514   
  2,340     

QBE Insurance Group Limited, Reg S

    6.750%         12/02/44         BBB         2,421,901   
  15,550     

Sirius International Group Limited, 144A

    7.506%         N/A (6)         BBB–         15,705,501   
  5,644     

Swiss Re Capital I, 144A

    6.854%         N/A (6)         A         5,724,427   
  20,553     

Symetra Financial Corporation, 144A

    8.300%         10/15/37         BBB–         21,015,440   
  2,600     

ZFS FINANCE USA TRUST II 144A

    6.450%         12/15/65         A         2,637,701   
 

Total Insurance

                               169,207,027   
      Machinery – 0.1%                           
  1,020     

Stanley Black & Decker Inc.

    5.750%         12/15/53         BBB+         1,078,650   
      Metals & Mining – 0.5%                           
  4,910     

BHP Billiton Finance USA Limited, 144A

    6.250%         10/19/75         A–         5,026,613   
      Real Estate Investment Trust – 1.5%                           
  11,705     

Sovereign Real Estate Investment Trust, 144A

    12.000%         N/A (6)         Ba1         14,865,350   
      U.S. Agency – 0.2%                           
  1,700     

Farm Credit Bank of Texas, 144A

    10.000%         N/A (6)         Baa1         2,142,000   
 

Total $1,000 Par (or similar) Institutional Preferred (cost $568,836,887)

  

              592,944,453   
 

Total Long-Term Investments (cost $1,344,070,197)

  

              1,390,706,928   

 

Nuveen Investments     7   


JPC    Nuveen Preferred Income Opportunities Fund
   Portfolio of Investments (continued)    October 31, 2015 (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity            Value  
      SHORT-TERM INVESTMENTS – 1.4% (1.0% of Total Investments)              
      REPURCHASE AGREEMENTS – 1.4% (1.0% of Total Investments)              
$ 4,814     

Repurchase Agreement with Fixed Income Clearing Corporation, dated 10/30/15, repurchase price $4,813,885,
collateralized by $4,955,000 U.S. Treasury Bonds,
2.875%, due 8/15/45, value $4,911,644

    0.000%         11/02/15          $ 4,813,885   
  8,789     

Repurchase Agreement with Fixed Income Clearing Corporation, dated 10/30/15, repurchase price $8,789,476,
collateralized by $9,035,000 U.S. Treasury Notes,
2.250%, due 11/15/24, value $8,967,238

    0.000%         11/02/15              8,789,476   
$ 13,603     

Total Short-Term Investments (cost $13,603,361)

                           13,603,361   
 

Total Investments (cost $1,357,673,558) – 140.5%

                           1,404,310,289   
 

Borrowings – (40.4)% (7), (8)

                           (404,100,000
 

Other Assets Less Liabilities – (0.1)% (9)

                           (403,845
 

Net Assets Applicable to Common Shares – 100%

                         $ 999,806,444   

Investments in Derivatives as of October 31, 2015

Call Options Written outstanding:

 

Number of
Contracts
     Description    Type      Notional
Amount (10)
     Expiration
Date
     Strike
Price
     Value  
  (2,252   

Ford Motor Company

     Exchange-Traded       $ (3,152,800      11/20/15       $ 14.0       $ (216,192
  (406   

GlaxoSmithKline PLC

     Exchange-Traded         (1,786,400      11/20/15         44.0         (14,210
  (18   

National CineMedia, Inc.

     Exchange-Traded         (31,500      12/18/15         17.5         (225
  (985   

NetApp, Inc.

     Exchange-Traded         (3,250,500      12/18/15         33.0         (208,328
  (208   

Phillips 66

     Exchange-Traded         (1,768,000      11/20/15         85.0         (101,920
  (438   

Seagate Technology

     Exchange-Traded         (2,058,600      12/18/15         47.0         (4,380
  (288   

Viacom Inc.

     Exchange-Traded         (1,440,000      12/18/15         50.0         (56,880
  (4,595 )   

Total Call Options (premiums received $389,383)

  

   $ (13,487,800 )                      $ (602,135

Interest Rate Swaps outstanding:

 

Counterparty    Notional
Amount
     Fund
Pay/Receive
Floating
Rate
     Floating Rate Index      Fixed Rate
(Annualized)
     Fixed Rate
Payment
Frequency
     Effective
Date (11)
     Termination
Date
     Unrealized
Appreciation
(Depreciation)
 

JPMorgan

   $ 114,296,000         Receive         1-Month USD-LIBOR-ICE         1.462      Monthly         12/01/15         12/01/20       $ (2,306,938

JPMorgan

     114,296,000         Receive         1-Month USD-LIBOR-ICE         1.842         Monthly         12/01/15         12/01/22         (3,599,986
     $ 228,592,000                                                            $ (5,906,924

Fair Value Measurements

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. A three-tier hierarchy 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 the reporting entity’s own 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, prepayment speeds, credit risk, etc.).
Level 3 –   Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

 

  8      Nuveen Investments


The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:

 

      Level 1      Level 2      Level 3      Total  

Long-Term Investments:

           

Common Stocks

   $ 68,248,214       $       $       $ 68,248,214   

$25 Par (or similar) Retail Preferred

     554,083,176         73,994,847                 628,078,023   

Convertible Preferred Securities

     10,693,158                         10,693,158   

Corporate Bonds

             90,743,080                 90,743,080   

$1,000 Par (or similar) Institutional Preferred

             592,944,453                 592,944,453   

Short-Term Investments:

           

Repurchase Agreements

             13,603,361                 13,603,361   

Investments in Derivatives:

           

Options Written

     (602,135                      (602,135

Interest Rate Swaps*

             (5,906,924              (5,906,924

Total

   $ 632,422,413       $ 765,378,817       $       $ 1,397,801,230   
* Represents net unrealized appreciation (depreciation).

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization, timing differences in the recognition of income on REIT investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

As of October 31, 2015, the cost of investments (excluding investments in derivatives) was $1,359,237,376.

Gross unrealized appreciation and gross unrealized depreciation of investments (excluding investments in derivatives) as of October 31, 2015, were as follows:

 

Gross unrealized:

          

Appreciation

     $ 59,569,285   

Depreciation

       (14,496,372

Net unrealized appreciation (depreciation) of investments

     $ 45,072,913   

 

Nuveen Investments     9   


JPC    Nuveen Preferred Income Opportunities Fund
   Portfolio of Investments (continued)    October 31, 2015 (Unaudited)

 

 

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.

 

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

 

(2) Investment, or a portion of investment, is hypothecated. The total value of investments hypothecated as of the end of the reporting period was $28,839,760.

 

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

 

(4) Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

 

(5) For fair value measurement disclosure purposes, investment classified as Level 2.

 

(6) Perpetual security. Maturity date is not applicable.

 

(7) The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) as collateral for borrowings. As of the end of the reporting period, investments with a value of $870,833,523 have been pledged as collateral for borrowings.

 

(8) Borrowings as a percentage of Total Investments is 28.8%.

 

(9) Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of exchange-cleared and exchange-traded derivatives, when applicable. Other assets less liabilities also includes the value of options.

 

(10) For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.

 

(11) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract.

 

144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

 

Reg S Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

 

ADR American Depositary Receipt

 

REIT Real Estate Investment Trust

 

USD-LIBOR-ICE United States Dollar – London Inter-Bank Offered Rate – Intercontinental Exchange

 

  10      Nuveen Investments


Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form 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)), exactly as set forth below: EX-99 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 Preferred Income Opportunities Fund   
By (Signature and Title)    /s/ Kevin J. McCarthy                                                               
   Kevin J. McCarthy   
   Vice President and Secretary   

Date: December 30, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)    /s/ Gifford R. Zimmerman                                                        
   Gifford R. Zimmerman   
   Chief Administrative Officer (principal executive officer)   
Date: December 30, 2015      
By (Signature and Title)    /s/ Stephen D. Foy                                                                    
   Stephen D. Foy   
   Vice President and Controller (principal financial officer)   
Date: December 30, 2015