1

Nuveen

Variable

Rate

Preferred

&

Income

Fund

Portfolio

of

Investments

October

31,

2022

(Unaudited)

NPFD

Principal

Amount

(000)

/

Shares

Description

(1)

Coupon

Maturity

Ratings

(2)

Value

LONG-TERM

INVESTMENTS

-

157.9%  

(100.0%

of

Total

Investments)

X

460,103,423

$1,000

PAR

(OR

SIMILAR)

INSTITUTIONAL

PREFERRED

-

100.1%

(63.4%

of

Total

Investments)

X

460,103,423

Automobiles

-

4.1%

$

12,331

General

Motors

Financial

Co

Inc

(3)

5.750%

N/A

(4)

BB+

$

10,110,187

10,000

General

Motors

Financial

Co

Inc

5.700%

N/A

(4)

BB+

8,500,000

22,331

Total

Automobiles

18,610,187

Banks

-

41.3%

7,810

Bank

of

America

Corp

6.250%

N/A

(4)

BBB+

7,602,547

2,219

Bank

of

America

Corp

6.100%

N/A

(4)

BBB+

2,141,335

3,000

Bank

of

America

Corp

6.300%

N/A

(4)

BBB+

2,925,180

5,000

Bank

of

America

Corp

6.500%

N/A

(4)

BBB+

4,962,500

6,100

Bank

of

America

Corp

4.375%

N/A

(4)

BBB+

4,895,250

3,375

Citigroup

Inc

5.950%

N/A

(4)

BBB-

3,054,981

8,000

Citigroup

Inc

5.000%

N/A

(4)

BBB-

7,117,600

2,875

Citigroup

Inc

6.250%

N/A

(4)

BBB-

2,774,663

16,995

Citigroup

Inc

6.300%

N/A

(4)

BBB-

15,847,837

1,877

Citigroup

Inc

4.150%

N/A

(4)

BBB-

1,466,117

4,290

Citizens

Financial

Group

Inc

4.000%

N/A

(4)

BB+

3,393,460

2,500

Citizens

Financial

Group

Inc

6.375%

N/A

(4)

BB+

2,279,384

6,050

CoBank

ACB

6.450%

N/A

(4)

BBB+

5,868,543

4,095

Fifth

Third

Bancorp

4.500%

N/A

(4)

Baa3

3,756,482

5,600

First

Citizens

BancShares

Inc/NC

(3-Month

LIBOR

reference

rate

+

3.972%

spread)

(5)

7.265%

N/A

(4)

BB-

5,537,000

2,700

Goldman

Sachs

Group

Inc/The

3.800%

N/A

(4)

BBB-

2,075,481

5,190

HSBC

Capital

Funding

Dollar

1

LP,

144A

10.176%

N/A

(4)

BBB

6,363,054

8,400

Huntington

Bancshares

Inc/OH

5.625%

N/A

(4)

Baa3

7,634,310

1,245

JPMorgan

Chase

&

Co

3.650%

N/A

(4)

BBB+

1,030,175

3,500

JPMorgan

Chase

&

Co

6.100%

N/A

(4)

BBB+

3,426,745

8,130

JPMorgan

Chase

&

Co

5.000%

N/A

(4)

BBB+

7,490,169

13,750

JPMorgan

Chase

&

Co

(3)

6.750%

N/A

(4)

BBB+

13,750,000

4,789

KeyCorp

5.000%

N/A

(4)

Baa3

4,194,459

6,000

M&T

Bank

Corp

5.125%

N/A

(4)

Baa2

5,230,101

2,020

M&T

Bank

Corp

3.500%

N/A

(4)

Baa2

1,496,576

990

PNC

Financial

Services

Group

Inc/The

6.200%

N/A

(4)

Baa2

937,728

2,800

PNC

Financial

Services

Group

Inc/The

3.400%

N/A

(4)

Baa2

2,089,500

2,825

PNC

Financial

Services

Group

Inc/The

6.000%

N/A

(4)

Baa2

2,620,188

3,534

PNC

Financial

Services

Group

Inc/The

5.000%

N/A

(4)

Baa2

3,025,880

2,820

Regions

Financial

Corp

5.750%

N/A

(4)

Baa3

2,735,400

4,470

SVB

Financial

Group

4.700%

N/A

(4)

Baa2

2,983,725

4,000

SVB

Financial

Group

4.000%

N/A

(4)

Baa2

2,799,183

12,368

Truist

Financial

Corp

(3)

4.800%

N/A

(4)

Baa2

11,103,372

1,970

Truist

Financial

Corp

(3-Month

LIBOR

reference

rate

+

3.102%

spread)

(5)

6.395%

N/A

(4)

Baa2

1,910,900

8,195

Truist

Financial

Corp

5.100%

N/A

(4)

Baa2

7,171,226

16,208

Wells

Fargo

&

Co

3.900%

N/A

(4)

Baa2

13,760,592

4,000

Wells

Fargo

&

Co

5.900%

N/A

(4)

Baa2

3,627,500

7,929

Wells

Fargo

&

Co

5.875%

N/A

(4)

Baa2

7,611,840

1,200

Zions

Bancorp

NA

7.200%

N/A

(4)

BB+

1,206,000

208,819

Total

Banks

189,896,983

Capital

Markets

-

7.1%

2,405

Bank

of

New

York

Mellon

Corp/The

4.700%

N/A

(4)

Baa1

2,302,788

3,000

Charles

Schwab

Corp/The

4.000%

N/A

(4)

BBB

2,466,450

11,373

Charles

Schwab

Corp/The

5.375%

N/A

(4)

BBB

11,102,891

5,700

Goldman

Sachs

Group

Inc/The

4.125%

N/A

(4)

BBB-

4,474,500

Nuveen

Variable

Rate

Preferred

&

Income

Fund

(continued)

Portfolio

of

Investments

October

31,

2022

(Unaudited)

2

NPFD

Principal

Amount

(000)

/

Shares

Description

(1)

Coupon

Maturity

Ratings

(2)

Value

Capital

Markets

(continued)

$

5,890

Goldman

Sachs

Group

Inc/The

5.300%

N/A

(4)

BBB-

$

5,534,774

7,045

Goldman

Sachs

Group

Inc/The

5.500%

N/A

(4)

BBB-

6,688,946

35,413

Total

Capital

Markets

32,570,349

Communications

Equipment

-

0.5%

3,520

Vodafone

Group

PLC

4.125%

6/04/81

BB+

2,496,595

Consumer

Finance

-

3.8%

4,200

Ally

Financial

Inc

4.700%

N/A

(4)

Ba2

2,824,500

5,000

Ally

Financial

Inc

4.700%

N/A

(4)

Ba2

3,625,000

3,785

American

Express

Co

3.550%

N/A

(4)

Baa2

2,919,181

4,705

Capital

One

Financial

Corp

3.950%

N/A

(4)

Baa3

3,519,529

3,690

Discover

Financial

Services

5.500%

N/A

(4)

Ba2

2,852,737

1,745

Discover

Financial

Services

6.125%

N/A

(4)

Ba2

1,676,421

23,125

Total

Consumer

Finance

17,417,368

Diversified

Financial

Services

-

2.9%

3,250

Capital

Farm

Credit

ACA,

144A

5.000%

N/A

(4)

BB

2,762,500

350

Compeer

Financial

ACA,

144A

4.875%

N/A

(4)

BB+

308,875

6,310

Equitable

Holdings

Inc

4.950%

N/A

(4)

BBB-

5,868,300

4,352

Voya

Financial

Inc

6.125%

N/A

(4)

BBB-

4,243,200

14,262

Total

Diversified

Financial

Services

13,182,875

Electric

Utilities

-

5.1%

2,600

American

Electric

Power

Co

Inc

3.875%

2/15/62

BBB

1,996,416

4,530

Edison

International

5.000%

N/A

(4)

BB+

3,669,300

1,445

Edison

International

5.375%

N/A

(4)

BB+

1,178,975

2,000

Electricite

de

France

SA,

144A

5.250%

N/A

(4)

BBB-

1,880,549

14,093

Emera

Inc

(3)

6.750%

6/15/76

BB+

13,136,396

2,000

Southern

Co

4.000%

1/15/51

BBB-

1,738,980

26,668

Total

Electric

Utilities

23,600,616

Independent

Power

And

Renewable

Electricity

Producers

-

0.7%

1,700

AES

Andes

SA,

144A

6.350%

10/07/79

BB

1,381,170

2,215

Vistra

Corp,

144A

7.000%

N/A

(4)

Ba3

1,959,400

3,915

Total

Independent

Power

And

Renewable

Electricity

Producers

3,340,570

Independent

Power

Producers

&

Energy

Traders

-

0.8%

2,685

AES

Andes

SA,

144A

7.125%

3/26/79

BB

2,203,664

1,560

Vistra

Corp,

144A

8.000%

N/A

(4)

Ba3

1,482,000

4,245

Total

Independent

Power

Producers

&

Energy

Traders

3,685,664

Industrial

Conglomerates

-

1.8%

8,440

General

Electric

Co

(3-Month

LIBOR

reference

rate

+

3.330%

spread)

(5)

6.623%

N/A

(4)

BBB-

8,134,050

Insurance

-

14.8%

2,595

Aegon

NV

5.500%

4/11/48

Baa1

2,293,980

2,250

American

International

Group

Inc

5.750%

4/01/48

BBB-

2,010,892

4,516

Assurant

Inc

7.000%

3/27/48

Baa3

4,298,961

3,000

Assured

Guaranty

Municipal

Holdings

Inc,

144A

6.400%

12/15/66

BBB+

2,730,000

3,050

AXIS

Specialty

Finance

LLC

(3)

4.900%

1/15/40

BBB

2,470,500

1,000

Enstar

Finance

LLC

5.750%

9/01/40

BBB-

886,382

6,115

Enstar

Finance

LLC

5.500%

1/15/42

BBB-

4,804,800

1,530

Legal

&

General

Group

PLC

,

Reg

S

5.250%

3/21/47

A3

1,346,400

10,345

Markel

Corp

6.000%

N/A

(4)

BBB-

9,904,775

8,000

MetLife

Inc

(3)

5.875%

N/A

(4)

BBB

7,176,331

3

Principal

Amount

(000)

/

Shares

Description

(1)

Coupon

Maturity

Ratings

(2)

Value

Insurance

(continued)

$

945

Prudential

Financial

Inc

3.700%

10/01/50

BBB+

$

734,558

1,395

Prudential

Financial

Inc

5.125%

3/01/52

BBB+

1,189,475

1,600

QBE

Insurance

Group

Ltd,

144A

5.875%

N/A

(4)

Baa2

1,456,565

8,205

QBE

Insurance

Group

Ltd,

144A

(3)

7.500%

11/24/43

Baa1

8,162,838

3,875

QBE

Insurance

Group

Ltd

,

Reg

S

6.750%

12/02/44

BBB

3,729,378

3,915

SBL

Holdings

Inc,

144A

6.500%

N/A

(4)

BB

2,955,825

14,500

SBL

Holdings

Inc,

144A

7.000%

N/A

(4)

BB

11,672,500

76,836

Total

Insurance

67,824,160

Media

-

0.4%

2,235

Paramount

Global

6.375%

3/30/62

Baa3

1,889,512

Multi-Utilities

-

4.3%

5,955

Algonquin

Power

&

Utilities

Corp

4.750%

1/18/82

BB+

4,795,115

8,050

CenterPoint

Energy

Inc

6.125%

N/A

(4)

BBB-

7,560,425

2,500

CMS

Energy

Corp

(3)

4.750%

6/01/50

BBB-

2,072,803

3,210

Sempra

Energy

4.875%

N/A

(4)

BBB-

2,915,762

3,400

Sempra

Energy

4.125%

4/01/52

BBB-

2,558,500

23,115

Total

Multi-Utilities

19,902,605

Oil,

Gas

&

Consumable

Fuels

-

6.0%

2,490

Enbridge

Inc

7.625%

1/15/83

BBB-

2,394,304

2,350

Enbridge

Inc

6.000%

1/15/77

BBB-

2,114,616

13,546

Enbridge

Inc

(3)

5.500%

7/15/77

BBB-

11,623,812

5,345

Energy

Transfer

LP

(3)

6.500%

N/A

(4)

BB

4,596,700

545

Energy

Transfer

LP

7.125%

N/A

(4)

BB

452,007

2,730

MPLX

LP

6.875%

N/A

(4)

BB+

2,661,750

2,155

Transcanada

Trust

5.600%

3/07/82

BBB

1,845,219

2,000

Transcanada

Trust

5.500%

9/15/79

BBB

1,675,000

31,161

Total

Oil,

Gas

&

Consumable

Fuels

27,363,408

Trading

Companies

&

Distributors

-

5.3%

3,200

AerCap

Global

Aviation

Trust,

144A

(3)

6.500%

6/15/45

BB+

2,920,000

16,900

AerCap

Holdings

NV

5.875%

10/10/79

BB+

15,204,930

4,841

Air

Lease

Corp

4.650%

N/A

(4)

BB+

4,034,495

3,673

ILFC

E-Capital

Trust

I,

144A

5.115%

12/21/65

B+

2,240,530

28,614

Total

Trading

Companies

&

Distributors

24,399,955

U.S.

Agency

-

0.0%

50

Farm

Credit

Bank

of

Texas,

144A

6.200%

N/A

(4)

BBB+

43,831

50

Farm

Credit

Bank

of

Texas,

144A

5.700%

N/A

(4)

Baa1

44,695

100

Total

U.S.

Agency

88,526

Wireless

Telecommunication

Services

-

1.2%

6,000

Vodafone

Group

PLC

7.000%

4/04/79

BB+

5,700,000

$

518,799

Total

$1,000

Par

(or

similar)

Institutional

Preferred

(cost

$548,463,215)

460,103,423

Shares

Description

(1)

Coupon

Ratings

(2)

Value

X

135,753,719

$25

PAR

(OR

SIMILAR)

RETAIL

PREFERRED

-

29.5%

(18.7%

of

Total

Investments)

X

135,753,719

Banks

-

6.0%

38,600

CoBank

ACB

6.200%

BBB+

$

3,860,000

121,601

Fifth

Third

Bancorp

6.625%

Baa3

3,066,777

245,000

KeyCorp

6.200%

Baa3

5,973,100

62,700

KeyCorp

6.125%

Baa3

1,463,418

168,058

Regions

Financial

Corp

6.375%

Baa3

4,151,033

163,723

Regions

Financial

Corp

5.700%

Baa3

3,408,713

Nuveen

Variable

Rate

Preferred

&

Income

Fund

(continued)

Portfolio

of

Investments

October

31,

2022

(Unaudited)

4

NPFD

Shares  

Description

(1)

Coupon

Ratings

(2)

Value

Banks

(continued)

136,600

Synovus

Financial

Corp

5.875%

BB-

$

3,018,860

99,600

Wintrust

Financial

Corp

6.875%

BB

2,522,868

Total

Banks

27,464,769

Capital

Markets

-

5.0%

51,400

Goldman

Sachs

Group

Inc/The

5.500%

BB+

1,264,954

166,500

Morgan

Stanley

7.125%

BBB-

4,170,825

122,800

Morgan

Stanley

6.375%

BBB-

2,982,812

122,400

Morgan

Stanley

6.875%

BBB-

3,062,448

431,297

Morgan

Stanley

5.850%

BBB-

9,881,014

66,000

Morgan

Stanley

6.500%

BBB-

1,636,800

Total

Capital

Markets

22,998,853

Diversified

Financial

Services

-

1.9%

31,750

AgriBank

FCB

6.875%

BBB+

3,151,187

261,000

Voya

Financial

Inc

5.350%

BBB-

5,530,590

Total

Diversified

Financial

Services

8,681,777

Food

Products

-

2.6%

157,200

CHS

Inc

6.750%

N/R

3,840,396

315,300

CHS

Inc

7.100%

N/R

7,898,265

300

Dairy

Farmers

of

America

Inc,

144A

7.875%

BB+

28,650

Total

Food

Products

11,767,311

Insurance

-

8.1%

180,150

American

Equity

Investment

Life

Holding

Co

6.625%

BB

4,172,274

310,550

American

Equity

Investment

Life

Holding

Co

5.950%

BB

6,996,692

340,200

Aspen

Insurance

Holdings

Ltd

5.950%

BB+

7,759,962

194,775

Athene

Holding

Ltd

6.350%

BBB

4,637,593

166,250

Athene

Holding

Ltd

6.375%

BBB

4,144,612

131,900

Enstar

Group

Ltd

7.000%

BBB-

2,899,162

188,600

Reinsurance

Group

of

America

Inc

5.750%

BBB+

4,430,214

93,300

Reinsurance

Group

of

America

Inc

7.125%

BBB+

2,363,289

Total

Insurance

37,403,798

Multi-Utilities

-

0.2%

31,600

NiSource

Inc

6.500%

BBB-

780,836

Oil,

Gas

&

Consumable

Fuels

-

3.2%

51,100

Energy

Transfer

LP

7.600%

BB

1,176,833

176,668

NuStar

Energy

LP

10.249%

B2

4,091,631

271,200

NuStar

Energy

LP

9.126%

B2

5,760,288

154,289

NuStar

Logistics

LP

10.813%

B

3,843,339

Total

Oil,

Gas

&

Consumable

Fuels

14,872,091

Thrifts

&

Mortgage

Finance

-

1.5%

82,679

Federal

Agricultural

Mortgage

Corp

6.000%

N/R

2,124,850

230,765

New

York

Community

Bancorp

Inc

6.375%

Ba2

4,936,064

Total

Thrifts

&

Mortgage

Finance

7,060,914

Trading

Companies

&

Distributors

-

1.0%

164,687

Air

Lease

Corp

6.150%

BB+

3,540,770

43,800

WESCO

International

Inc

10.625%

B

1,182,600

Total

Trading

Companies

&

Distributors

4,723,370

Total

$25

Par

(or

similar)

Retail

Preferred

(cost

$158,362,832)

135,753,719

5

Investments

in

Derivatives

Principal

Amount

(000)

Description

(1)

,(6)

Coupon

Maturity

Ratings

(2)

Value

X

130,034,936

CONTINGENT

CAPITAL

SECURITIES

-

28.3%

(17.9%

of

Total

Investments)

X

130,034,936

Banks

-

20.5%

$

1,000

Australia

&

New

Zealand

Banking

Group

Ltd/United

Kingdom,

144A

(3)

6.750%

N/A

(4)

Baa2

$

957,707

3,200

Banco

Bilbao

Vizcaya

Argentaria

SA

6.500%

N/A

(4)

Ba2

2,858,432

2,200

Banco

Bilbao

Vizcaya

Argentaria

SA

6.125%

N/A

(4)

Ba2

1,689,414

1,595

Banco

Mercantil

del

Norte

SA/Grand

Cayman,

144A

7.625%

N/A

(4)

Ba2

1,309,312

715

Banco

Mercantil

del

Norte

SA/Grand

Cayman,

144A

7.500%

N/A

(4)

Ba2

558,105

3,000

Banco

Santander

SA

4.750%

N/A

(4)

Ba1

2,111,485

4,000

Banco

Santander

SA

,

Reg

S

7.500%

N/A

(4)

Ba1

3,788,552

1,600

Barclays

PLC

8.000%

N/A

(4)

BBB-

1,433,366

3,800

Barclays

PLC

6.125%

N/A

(4)

BBB-

3,296,500

7,903

Barclays

PLC

7.750%

N/A

(4)

BBB-

7,438,699

5,995

BNP

Paribas

SA,

144A

6.625%

N/A

(4)

BBB

5,610,673

735

BNP

Paribas

SA,

144A

7.750%

N/A

(4)

BBB

692,984

2,089

BNP

Paribas

SA,

144A

7.000%

N/A

(4)

BBB

1,865,854

5,800

Credit

Agricole

SA,

144A

8.125%

N/A

(4)

BBB

5,771,000

2,465

Credit

Agricole

SA,

144A

7.875%

N/A

(4)

BBB

2,448,677

925

Danske

Bank

A/S

,

Reg

S

4.375%

N/A

(4)

BBB-

737,687

910

Danske

Bank

A/S

,

Reg

S

7.000%

N/A

(4)

BBB-

839,599

7,000

HSBC

Holdings

PLC

6.375%

N/A

(4)

BBB

6,230,000

6,290

HSBC

Holdings

PLC

6.000%

N/A

(4)

BBB

5,096,158

8,441

ING

Groep

NV

,

Reg

S

6.750%

N/A

(4)

BBB

7,987,296

1,098

Intesa

Sanpaolo

SpA,

144A

7.700%

N/A

(4)

BB-

950,520

9,185

Lloyds

Banking

Group

PLC

6.750%

N/A

(4)

Baa3

8,364,548

2,000

Lloyds

Banking

Group

PLC

7.500%

N/A

(4)

Baa3

1,906,948

1,500

Macquarie

Bank

Ltd/London,

144A

6.125%

N/A

(4)

BB+

1,275,931

7,000

NatWest

Group

PLC

8.000%

N/A

(4)

BBB-

6,597,850

2,100

Nordea

Bank

Abp,

144A

6.625%

N/A

(4)

BBB+

1,978,147

5,000

Societe

Generale

SA,

144A

8.000%

N/A

(4)

BB

4,923,858

1,500

Societe

Generale

SA,

144A

4.750%

N/A

(4)

BB+

1,152,750

1,700

Standard

Chartered

PLC,

144A

7.750%

N/A

(4)

BBB-

1,679,894

1,080

Standard

Chartered

PLC,

144A

6.000%

N/A

(4)

BBB-

983,849

1,660

UniCredit

SpA

,

Reg

S

8.000%

N/A

(4)

BB-

1,550,025

103,486

Total

Banks

94,085,820

Capital

Markets

-

7.6%

2,460

Credit

Suisse

Group

AG,

144A

7.500%

N/A

(4)

BB-

2,226,256

1,575

Credit

Suisse

Group

AG,

144A

9.750%

N/A

(4)

BB-

1,496,450

10,904

Credit

Suisse

Group

AG,

144A

7.500%

N/A

(4)

BB-

9,663,670

5,850

Credit

Suisse

Group

AG,

144A

6.375%

N/A

(4)

Ba2

4,361,800

6,000

Deutsche

Bank

AG

6.000%

N/A

(4)

Ba2

4,693,741

9,550

UBS

Group

AG

,

Reg

S

6.875%

N/A

(4)

BBB

9,052,521

420

UBS

Group

AG,

144A

7.000%

N/A

(4)

BBB

406,229

3,710

UBS

Group

AG,

144A

4.875%

N/A

(4)

BBB

2,960,585

40,469

Total

Capital

Markets

34,861,252

Commercial

Banks

-

0.2%

1,220

HSBC

Holdings

PLC

6.375%

N/A

(4)

BBB

1,087,864

$

145,175

Total

Contingent

Capital

Securities

(cost

$157,578,209)

130,034,936

Total

Long-Term

Investments

(cost

$864,404,256)

725,892,078

Borrowings

-

(30.4)%

(7),(8)

(

139,800,000

)

Reverse

Repurchase

Agreements,

including

accrued

interest

-

(11.4)%(9)

(

52,357,792

)

Taxable

Fund

Preferred

Shares,

net

of

deferred

offering

costs

-

(18.4)%(10)

(

84,487,605

)

Other

Assets

Less

Liabilities

-  2.3%(11)

10,567,646

Net

Assets

Applicable

to

Common

Shares

-

100%

$

459,814,327

Nuveen

Variable

Rate

Preferred

&

Income

Fund

(continued)

Portfolio

of

Investments

October

31,

2022

(Unaudited)

6

NPFD

Part

F

of

Form

N-PORT

was

prepared

in

accordance

with

U.S.

generally

accepted

accounting

principles

(“U.S.

GAAP”)

and

in

conformity

with

the

applicable

rules

and

regulations

of

the

U.S.

Securities

and

Exchange

Commission

(“SEC”)

related

to

interim

filings.

Part

F

of

Form

N-PORT

does

not

include

all

information

and

footnotes

required

by

U.S.

GAAP

for

complete

financial

statements.

Certain

footnote

disclosures

normally

included

in

financial

statements

prepared

in

accordance

with

U.S.

GAAP

have

been

condensed

or

omitted

from

this

report

pursuant

to

the

rules

of

the

SEC.

For

a

full

set

of

the

Fund’s

notes

to

financial

statements,

please

refer

to

the

Fund’s

most

recently

filed

annual

or

semi-annual

report.

Fair

Value

Measurements

The

Fund’s

investments

in

securities

are

recorded

at

their

estimated

fair

value

utilizing

valuation

methods

approved

by

the

Board

of

Directors/

Trustees.

Fair

value

is

defined

as

the

price

that

would

be

received

upon

selling

an

investment

or

transferring

a

liability

in

an

orderly

transaction

to

an

independent

buyer

in

the

principal

or

most

advantageous

market

for

the

investment.

U.S.

GAAP

establishes

the

three-tier

hierarchy

which

is

used

to

maximize

the

use

of

observable

market

data

and

minimize

the

use

of

unobservable

inputs

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Observable

inputs

reflect

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability.

Observable

inputs

are

based

on

market

data

obtained

from

sources

independent

of

the

reporting

entity.

Unobservable

inputs

reflect

management’s

assumptions

about

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability.

Unobservable

inputs

are

based

on

the

best

information

available

in

the

circumstances.

The

following

is

a

summary

of

the

three-tiered

hierarchy

of

valuation

input

levels.

Level

1

–

Inputs

are

unadjusted

and

prices

are

determined

using

quoted

prices

in

active

markets

for

identical

securities.

Level

2

–

Prices

are

determined

using

other

significant

observable

inputs

(including

quoted

prices

for

similar

securities,

interest

rates,

credit

spreads,

etc.).

Level

3

–

Prices

are

determined

using

significant

unobservable

inputs

(including

management’s

assumptions

in

determining

the

fair

value

of

investments).

The

following

table

summarizes

the

market

value

of

the

Fund's

investments

as

of

the

end

of

the

reporting

period,

based

on

the

inputs

used

to

value

them:

Futures

Contracts

-

Short

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

Value

Unrealized

Appreciation

(Depreciation)

U.S.

Treasury

5-Year

Note

(470)

12/22

$

(

52,308,629

)

$

(

50,099,063

)

$

2,209,566

Level

1

Level

2

Level

3

Total

Long-Term

Investments:

$1,000

Par

(or

similar)

Institutional

Preferred

$

–

$

460,103,423

$

–

$

460,103,423

$25

Par

(or

similar)

Retail

Preferred

128,713,882

7,039,837

–

135,753,719

Contingent

Capital

Securities

–

130,034,936

–

130,034,936

Investments

in

Derivatives:

Futures

Contracts*

2,209,566

–

–

2,209,566

Total

$

130,923,448

$

597,178,196

$

–

$

728,101,644

*

Represents

net

unrealized

appreciation

(depreciation).

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)

For

financial

reporting

purposes,

the

ratings

disclosed

are

the

highest

of

Standard

&

Poor’s

Group

(“Standard

&

Poor’s”),

Moody’s

Investors

Service,

Inc.

(“Moody’s”)

or

Fitch,

Inc.

(“Fitch”)

rating.

This

treatment

of

split-rated

securities

may

differ

from

that

used

for

other

purposes,

such

as

for

Fund

investment

policies.

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.

(3)

Investment,

or

portion

of

investment,

has

been

pledged

to

collateralize

the

net

payment

obligations

for

investments

in

reverse

repurchase

agreements.

As

of

the

end

of

the

reporting

period,

investments

with

a

value

of

$73,778,949

have

been

pledged

as

collateral

for

reverse

repurchase

agreements.

(4)

Perpetual

security.

Maturity

date

is

not

applicable.

(5)

Variable

rate

security.

The

rate

shown

is

the

coupon

as

of

the

end

of

the

reporting

period.

(6)

Contingent

Capital

Securities

(“CoCos”)

are

hybrid

securities

with

loss

absorption

characteristics

built

into

the

terms

of

the

security

for

the

benefit

of

the

issuer.

For

example,

the

terms

may

specify

an

automatic

write-down

of

principal

or

a

mandatory

conversion

into

the

issuer’s

common

stock

under

certain

adverse

circumstances,

such

as

the

issuer’s

capital

ratio

falling

below

a

specified

level.

(7)

Borrowings

as

a

percentage

of

Total

Investments

is

19.3%.

(8)

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)

in

the

Portfolio

of

Investments

as

collateral

for

borrowings.

As

of

the

end

of

the

reporting

period,

investments

with

a

value

of

$356,287,749

have

been

pledged

as

collateral

for

borrowings.

(9)

Reverse

Repurchase

Agreements,

including

accrued

interest

as

a

percentage

of

Total

investments

is

7.2%.

(10)

Taxable

Fund

Preferred

Shares,

net

of

deferred

offering

costs

as

a

percentage

of

Total

Investments

is

11.6%.

7

(11)

Other

assets

less

liabilities

includes

the

unrealized

appreciation

(depreciation)

of

certain

over-the-counter

("OTC")

derivatives

as

well

as

the

OTC

cleared

and

exchange-traded

derivatives,

when

applicable.

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.

LIBOR

London

Inter-Bank

Offered

Rate

N/A

Not

Applicable.

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.