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 | 811-22391 |
Nuveen Taxable Municipal Income Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)
Mark L. Winget
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: (800) 257-8787
Date of fiscal year end: March 31
Date of reporting period: September 30, 2025
| Item 1. | Reports to Stockholders. |
Closed-End Funds
Closed-End Funds
Nuveen Municipal
September 30,
2025
Semi-Annual
Report
This semi-annual report contains the Fund's
unaudited financial statements.
Nuveen Taxable Municipal Income
Fund
NBB
2
Table
of
Contents
Important
Notices
3
Common
Share
Information
4
About
the Fund’s
Benchmark
6
Fund
Performance, Leverage and Holdings
Summaries
7
Portfolio
of
Investments
10
Statement
of Assets and
Liabilities
19
Statement
of
Operations
20
Statement
of Changes in Net
Assets
21
Statement
of Cash
Flows
22
Financial
Highlights
24
Notes
to Financial
Statements
26
Shareholder
Meeting
Report
35
Additional
Fund
Information
36
Glossary
of Terms Used in this
Report
37
Statement
Regarding Basis for Approval of Investment Advisory Contract
38
Important Notices
3
Portfolio manager commentaries:
The Funds include portfolio manager commentary in their annual shareholder
reports. For your
Fund’s most recent annual portfolio manager discussion,
please refer to the Portfolio Managers’ Comments section of the Fund’s
annual shareholder
report.
Fund changes:
For changes that occurred to your Fund both during and after this reporting
period, please refer to the Notes to
Financial Statements section of this
report.
Fund principal investment policies and principal
risks:
Refer to the Shareholder Update section of your Fund’s annual
shareholder
report for information on the Fund’s principal investment
policies and principal risks.
Fund performance:
For current information on your Fund’s average
annual total returns please refer to the Fund’s website at
www.
nuveen.com
. For average annual total returns as of the end of this
reporting period, please refer to the Performance Overview and
Holding Summaries section within this report.
4
Common Share Information
COMMON SHARE DISTRIBUTION
INFORMATION
The following information regarding the Fund's
distributions is current as of September 30, 2025. The Fund's distribution levels may
vary over time based on the Fund's investment activity and portfolio investments
value changes.
During the current fiscal period, the
Fund's distributions to common shareholders were as shown in the accompanying
table.
The Fund’s distribution policy, which may be
changed by the Board, is to make regular monthly cash distributions to holders of its
common shares (stated in terms of a fixed cents per common
share dividend distribution rate which may be set from time to time).
The Fund intends to distribute all or substantially all of its
net investment income each year through its regular monthly distribution
and to distribute realized capital gains at least annually.
In addition, in any monthly period, to maintain its declared per common
share distribution amount, the Fund may distribute more or
less than its net investment income during the period. In the event the
Fund distributes more than its net investment income during
any yearly period, such distributions may also include realized gains
and/or a return of capital. To the extent that a distribution
includes a return of capital the NAV per share may erode. If a distribution
includes anything other than net investment income, the Fund
provides a notice of the best estimate of its distribution sources at
the time of the distribution which may be viewed at
www.nuveen.com/CEFdistributions. These estimates may not match the final tax
characterization (for the full year’s distributions)
contained in shareholders’ 1099-DIV forms after the end of the year.
NUVEEN
CLOSED-END FUND DISTRIBUTION AMOUNTS
The Nuveen Closed-End
Funds’ monthly and quarterly periodic distributions to shareholders are posted on www.nuveen.com
and can be found on Nuveen’s enhanced closed-end fund
resource page, which is at
https://www.nuveen.com/resource-center-
closed-end-funds,
along with other Nuveen closed-end fund product updates. To ensure timely access to the latest information,
shareholders may use a subscribe function, which can be
activated at this web page (https://www.nuveen.com/subscriptions).
COMMON SHARE
EQUITY SHELF PROGRAMS
During the current fiscal period,
the Fund was authorized by the Securities and Exchange Commission to issue additional common
shares through an equity shelf program (Shelf Offering).
Under these programs, the Fund, subject to market conditions, may
raise additional capital from time to time in varying amounts
and offering methods at a net price at or above the Fund's NAV per
common share. The maximum aggregate offering under these
Shelf Offerings are as shown in the accompanying
table.
During the current fiscal period, the Fund did not
sell any common shares through its shelf offering.
Refer to
Notes to Financial Statements, for further details of Shelf Offerings and the Fund’s
transactions.
COMMON SHARE
REPURCHASES
The Fund's Board of Trustees authorized an
open-market share repurchase program, allowing the Fund to repurchase and retire an
aggregate of up to approximately 10% of its outstanding
common shares.
Per Common
Share
Amounts
Monthly
Distributions (Ex-Dividend
Date)
NBB
April
$0.0965
May
0.0965
June
0.0965
July
0.0965
August
0.0965
September
0.0965
Total
Distributions from Net Investment
Income
$0.5790
Yields
NBB
Market
Yield
*
7.14%
*
Market
Yield is based on the Fund's current annualized monthly distribution divided by the Fund's current market price as of the end of the fiscal
period.
NBB
Maximum
aggregate offering
$120,480,111
5
During the current fiscal period, the Fund did not repurchase any of
its outstanding common shares. As of September 30, 2025, (and
since the inception of the Fund's repurchase programs), the
Fund has cumulatively repurchased and retired its outstanding common
shares as shown in the accompanying
table.
NBB
Common
shares cumulatively repurchased and
retired
0
Common
shares authorized for repurchase
2,935,000
6
About the Fund’s Benchmark
Bloomberg Taxable Municipal Long Bond Index:
A rules-based index engineered for the long-term taxable
municipal
bond market. Bonds in the index have effective
maturities of 10+ years. Index returns assume reinvestment of
distributions, but do not reflect any applicable sales charges or
management fees.
Fund Performance, Leverage and Holdings
Summaries
7
The Fund Performance, Leverage and Holdings Summaries for the Fund
are shown below within this section of the report.
Fund
Performance
Performance data shown represents past performance
and does not predict or guarantee future results.
Current
performance may be higher or
lower than the data shown.
Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of
Fund shares. Returns at NAV are net of Fund expenses, and assume
reinvestment of distributions. Comparative index return information is provided
for the Fund’s shares at NAV only. Indexes are not
available for direct investment.
Total returns for a period of
less than one year are not annualized (i.e. cumulative returns). Since inception returns are shown for share classes that
have less than 10-years of performance. For performance,
current to the most recent month-end visit Nuveen.com or call (800) 257-8787.
Impact
of Leverage
One important factor impacting the returns of the
Fund’s common shares relative to its comparative benchmarks was the Fund’s use of leverage
through its issuance of reverse repurchase agreements and
investments in inverse floating rate securities, which represent leveraged investments in
underlying bonds. The Fund uses leverage because our research
has shown that, over time, leveraging provides opportunities for additional income.
The opportunity arises when short-term rates that the Fund
pays on its leveraging instruments are lower than the interest the Fund earns on its
portfolio of long-term bonds that it has bought with the
proceeds of that leverage.
However, use of leverage can
expose Fund common shares to additional price volatility. When the Fund uses leverage, the Fund’s common shares
will experience a greater increase in their net asset value
if the securities acquired through the use of leverage increase in value, but will also
experience a correspondingly larger decline in their net
asset value if the securities acquired through leverage decline in value. All this will make the
shares’ total return performance more variable over
time.
In addition, common share income in levered funds will
typically decrease in comparison to unlevered funds when short-term interest rates increase
and increase when short-term interest rates decrease. In
recent quarters, fund leverage expenses have generally tracked the overall movement
of short-term interest rates. While fund leverage expenses
are higher than their prior year lows, leverage nevertheless continues to provide the
opportunity for incremental common share income, particularly
over longer-term periods.
Leverage
Ratios
The Fund’s Effective Leverage and Regulatory
Leverage Ratios are set forth below. “Effective Leverage” is a Fund’s effective economic leverage,
and includes both regulatory leverage and the leverage
effects of certain derivative and other investments in a Fund’s portfolio that increase the
Fund’s investment exposure. Currently, the leverage
effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage
values, in addition to any regulatory leverage.
“Regulatory Leverage” consists of preferred shares or borrowings of a Fund. Regulatory Leverage is a
part of a Fund’s capital structure. Regulatory leverage
is subject to asset coverage limits set forth in the Investment Company Act of 1940. A Fund,
however, may from time to time borrow for temporary purposes,
typically on a transient basis in connection with its day-to-day operations, primarily
in connection with the need to settle portfolio trades. Such
temporary borrowings are excluded from the calculation of a Fund’s Effective Leverage
and Regulatory Leverage ratios.
Holding
Summaries
The Holdings Summaries data relates to the
securities held in the Fund’s portfolio of investments as of the end of this reporting period. It should
not be construed as a measure of performance for the Fund
itself. Holdings are subject to change. Refer to the Fund’s Portfolio of Investments for
individual security
information.
For financial reporting purposes, the ratings
disclosed are the highest rating given by one of the following national rating agencies: Standard &
Poor’s, Moody’s Investors Service, Inc. or Fitch,
Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for
Fund investment policies. 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. Holdings designated N/R are
not rated by these national rating agencies.
8
Nuveen Taxable Municipal Income
Fund
Fund Performance, Leverage and Holdings
Summaries September 30,
2025
NBB
Performance*
*
For purposes of Fund performance, relative results are measured against the NBB Linked Benchmark, which consists of the linked returns
between the Bloomberg Taxable Long Municipal Bond Index (effective November
17, 2018) and the Bloomberg Aggregate-Eligible Build America
Bond Index
(through November 16, 2018).
Daily Common Share NAV and Share
Price
Total Returns as
of
September 30,
2025
Cumulative
Average
Annual
Inception
Date
6-Month
1-Year
5-Year
10-Year
NBB
at Common Share
NAV
4/27/10
3.52%
2.35%
0.36%
3.58%
NBB
at Common Share
Price
4/27/10
5.01%
5.01%
0.38%
4.52%
Bloomberg
Taxable Municipal Long Bond
Index
—
3.21%
1.44%
(1.18)%
3.17%
NBB
Blended
Benchmark
—
3.21%
1.44%
(1.18)%
3.15%
Common
Share
NAV
Common
Share
Price
Premium/(Discount)
to
NAV
Average
Premium/(Discount)
to
NAV
$16.46
$16.22
(1.46)%
(2.58)%
9
Leverage and
Holdings
Leverage
Effective
Leverage
39.88%
Regulatory
Leverage
0.00%
Fund
Allocation
(% of net
assets)
Municipal
Bonds
144.9%
Other
Assets & Liabilities,
Net
3.6%
Reverse
Repurchase
Agreements, including accrued
interest
(40.9)%
Floating Rate
Obligations
(7.6)%
Net
Assets
100%
Portfolio
Credit Quality
(% of total
investments)
AAA
4.1%
AA
43.5%
A
26.0%
BBB
9.9%
BB or
Lower
7.3%
N/R
(not
rated)
9.2%
Total
100%
Portfolio
Composition
(% of total
investments)
Tax
Obligation/Limited
27.7%
Utilities
19.7%
Transportation
17.6%
Tax
Obligation/General
9.2%
Health
Care
8.7%
Education
and Civic
Organizations
7.8%
Other
9.3%
Total
100%
10
Portfolio of Investments September 30,
2025
NBB
See Notes To Financial Statements
(Unaudited)
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
LONG-TERM INVESTMENTS - 144.9% (100.0% of Total
Investments)
701135537
MUNICIPAL
BONDS - 144.9% (100.0% of Total Investments)
701135537
ALABAMA
- 0.9% (0.6% of Total
Investments)
$
4,000,000
Homewood Educational Building Authority, Alabama, Revenue
Bonds, CHF-Horizons II, LLC Student Housing and Parking
Project at Samford University Taxable Series
2024D
7.423
%
10/01/44
$
4,204,636
TOTAL
ALABAMA
4,204,636
ALASKA
- 0.7% (0.4% of Total
Investments)
3,025,000
Port
Lions, Alaska, Revenue Bonds, Kodiak Area Native
Association Project,
Taxable Series
2022
7.500
10/01/52
3,166,164
TOTAL
ALASKA
3,166,164
ARIZONA
- 0.4% (0.3% of Total
Investments)
2,000,000
(a)
Maricopa County Industrial Development Authority, Arizona,
Education Revenue Bonds, Grand Canyon University Project,
Taxable Series
2024
7.375
10/01/29
2,099,072
TOTAL
ARIZONA
2,099,072
CALIFORNIA
- 30.9% (21.3% of Total
Investments)
1,290,000
ABAG
Finance Authority for Non-Profit Corporations,
California, Special Tax
Bonds, Community Facilities District
2004-1 Seismic Safety Improvements
690 & 942 Market Street
Project, Taxable Refunding Series
2018
5.100
09/01/28
1,281,307
6,125,000
ABAG Finance Authority for Non-Profit Corporations,
California, Special Tax Bonds, Community Facilities District
2004-1 Seismic Safety Improvements 690 & 942 Market Street
Project, Taxable Refunding Series
2018
5.500
09/01/38
5,770,281
5,500,000
Alameda Corridor Transportation Authority, California,
Revenue Bonds, Taxable Refunding Subordinate Lien Series
2024 - AGM
Insured
0.000
10/01/39
2,463,362
1,000,000
California Infrastructure and Economic Development Bank,
Revenue Bonds, J. David Gladstone Institutes Project, Taxable
Series
2019
3.550
10/01/34
874,058
1,500,000
California Infrastructure and Economic Development Bank,
Revenue Bonds, J. David Gladstone Institutes Project, Taxable
Series
2019
4.000
10/01/39
1,218,051
8,260,000
California Infrastructure and Economic Development Bank,
Revenue Bonds, J. David Gladstone Institutes Project, Taxable
Series
2019
4.658
10/01/59
5,984,303
1,000,000
California Infrastructure and Economic Development Bank,
Revenue Bonds, University of California San Francisco
Neurosciences Building, Build America Taxable Bond Series
2010B
6.486
05/15/49
1,067,214
8,010,000
(a)
California Municipal Finance Authority, Mobile Home Park
Revenue Bonds, Windsor Mobile Country Club, Taxable
Refunding Series
20202B
6.375
11/15/48
7,718,390
540,000
(a)
California
Public Finance Authority, University Housing
Revenue Bonds, National
Campus Community Development -
Claremont Properties LLC Claremont Colleges
Project, Taxable
Refunding Series
2023B
6.500
07/01/32
545,728
4,530,000
(b)
California
State Public Works Board, Lease Revenue Bonds,
Various Capital Projects,
Build America Taxable Bond Series
2009G-2
8.361
10/01/34
5,387,417
7,010,000
California
State University, Systemwide Revenue Bonds, Build
America Taxable Bond
Series
2010B
6.484
11/01/41
7,554,195
2,000,000
California State, General Obligation Bonds, Build America
Federally Taxable Series
2009
7.550
04/01/39
2,442,874
4,110,000
(b)
California
State, General Obligation Bonds, Various Purpose,
Build America Taxable
Bond Series
2010
7.600
11/01/40
5,059,967
2,000,000
(a)
California
Statewide Communities Development Authority,
Limited Obligation
Improvement Bonds, 300 Lakeside
Drive Oakland Property Assessed Clean
Energy, Taxable
Sustainability Green Series
2023
8.000
09/02/53
2,057,998
11
See Notes To Financial Statements
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
CALIFORNIA
(continued)
$
1,250,000
California
Statewide Communities Development Authority,
Revenue Bonds, Front Porch
Communities & Services, Taxable
Series
2021B
2.240
%
04/01/31
$
1,100,220
1,255,000
California Statewide Community Development Authority,
Health Revenue Bonds, Enloe Medical Center, Refunding
Series 2022B - AGM
Insured
7.140
08/15/47
1,328,375
7,500,000
Los Angeles Community College District, California, General
Obligation Bonds, Build America Taxable Bonds, Series
2010
6.600
08/01/42
8,202,971
10,000,000
(b),(c)
Los
Angeles Community College District, California, General
Obligation Bonds,
Build America Taxable Bonds, Series 2010,
(UB)
6.600
08/01/42
10,937,295
2,000,000
(a),(c)
Los Angeles Community College District, Los Angeles County,
California, General Obligation Bonds, Tender Option Bond
Trust 2016-XTG002, Formerly Tender Option Bond Trust
TN027,
(IF)
14.439
08/01/49
3,258,131
1,730,000
(b)
Los
Angeles County Public Works Financing Authority,
California, Lease Revenue
Bonds, Mulitple Capital Projects I,
Build America Taxable Bond Series
2010B
7.488
08/01/33
1,901,124
11,380,000
(b)
Los
Angeles County Public Works Financing Authority,
California, Lease Revenue
Bonds, Mulitple Capital Projects I,
Build America Taxable Bond Series
2010B
7.618
08/01/40
13,620,242
2,805,000
Los Angeles Department of Airports, California, Revenue
Bonds, Los Angeles International Airport, Build America
Taxable Bonds, Series
2009C
6.582
05/15/39
3,049,349
23,785,000
(b)
Los
Angeles Department of Water and Power, California, Power
System Revenue
Bonds, Federally Taxable - Direct Payment -
Build America Bonds, Series
2010D
6.574
07/01/45
25,367,497
4,000,000
(a),(c)
Los
Angeles Department of Water and Power, California, Water
System Revenue
Bonds, Tender Option Bond Trust 2016-
XFT906,
(IF)
12.205
07/01/50
5,310,656
4,105,000
(b)
Sacramento
Public Financing Authority, California, Lease
Revenue Bonds, Golden 1
Center, Series
2015
5.637
04/01/50
4,231,668
2,200,000
San Diego County Regional Transportation Commission,
California, Sales Tax Revenue Bonds, Build America Taxable
Bonds Series
2010A
5.911
04/01/48
2,254,079
1,500,000
San Francisco City and County Public Utilities Commission,
California, Water Revenue Bonds, Taxable Build America Bond
Series
2010G
6.950
11/01/50
1,693,458
1,000,000
San Francisco City and County Redevelopment Financing
Authority, California, Tax Allocation Revenue Bonds, San
Francisco Redevelopment Projects, Taxable Series
2009E
8.406
08/01/39
1,207,829
4,000,000
(a),(c)
San
Francisco City and County, California, Certificates of
Participation, 525
Golden Gate Avenue, San Francisco Public
Utilities Commission Office
Project, Tender Option Bond 2016-
XFT901, Formerly Tender Option Bond Trust
B001,
(IF)
12.196
11/01/41
5,650,106
2,000,000
(a),(c)
San
Francisco City and County, California, Certificates of
Participation, 525
Golden Gate Avenue, San Francisco Public
Utilities Commission Office
Project, Tender Option Bond 2016-
XFT901, Formerly Tender Option Bond Trust
B001,
(IF)
12.196
11/01/41
2,825,053
1,080,000
(a)
San
Francisco City and County, California, Development
Special Tax Bonds,
Mission Rock Facilities and Services Special
Tax District 2020-1, Taxable
Series
2021B
4.000
09/01/31
1,051,369
2,000,000
(b)
University
of California Regents, Medical Center Pooled
Revenue Bonds, Taxable
Build America Bond Series
2010H
6.548
05/15/48
2,158,597
4,095,000
Vernon, California, Electric System Revenue Bonds, Series
2008A
8.590
07/01/38
4,905,849
TOTAL
CALIFORNIA
149,479,013
Portfolio of Investments September 30, 2025
(continued)
NBB
12
See Notes To Financial Statements
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
COLORADO
- 2.2% (1.5% of Total
Investments)
$
6,250,000
(a)
Colorado
Educational and Cultural Facilities Authority, Cultural
Facilities Revenue
Bonds, Stanley Project, Taxable Senior Lien
Series
2025A-2
10.000
%
02/01/45
$
6,409,417
3,030,000
(b)
Denver
School District 1, Colorado, General Obligation Bonds,
Build America
Taxable Bonds, Series
2009C
5.664
12/01/33
3,167,251
1,230,000
(b)
Regional
Transportation District, Colorado, Sales Tax Revenue
Bonds, Fastracks
Project, Build America Series
2010B
5.844
11/01/50
1,258,427
TOTAL
COLORADO
10,835,095
DISTRICT
OF COLUMBIA - 3.8% (2.6% of Total
Investments)
14,365,000
(b)
Metropolitan Washington Airports Authority, Virginia,
Dulles Toll Road Revenue Bonds, Dulles Metrorail & Capital
improvement Projects, Second Senior Lien, Build America
Bond Series
2009D
7.462
10/01/46
17,345,026
1,000,000
Metropolitan Washington Airports Authority, Virginia,
Dulles Toll Road Revenue Bonds, Dulles Metrorail & Capital
improvement Projects, Second Senior Lien, Build America
Bond Series 2009D - AGM
Insured
7.462
10/01/46
1,221,261
TOTAL
DISTRICT OF
COLUMBIA
18,566,287
FLORIDA
- 4.3% (3.0% of Total
Investments)
13,745,000
(a)
Charlotte County Industrial Development Authority, Florida,
Utility System Revenue Bonds, Town & Country Utilities Project,
Taxable Series
2021B
5.000
10/01/36
12,662,565
1,400,000
(a)
Miami,
Florida, Special Obligation Revenue Bonds, Street &
Sidewalk
Improvement Program, Taxable Refunding Series
2018B - AGM
Insured
4.808
01/01/39
1,346,722
6,570,000
Miami-Dade County, Florida, Seaport Revenue Bonds, Taxable
Series
2023
6.224
11/01/55
6,802,192
TOTAL
FLORIDA
20,811,479
GEORGIA
- 7.4% (5.1% of Total
Investments)
2,234,000
Georgia
Municipal Electric Authority, Plant Vogtle Units 3 & 4
Project M
Bonds, Taxable Build America Bonds Series
2010A
6.655
04/01/57
2,433,536
5,596,000
Georgia Municipal Electric Authority, Plant Vogtle Units 3 &
4 Project P Bonds, Refunding Taxable Build America Bonds
Series 2010A - AGM
Insured
7.055
04/01/57
6,375,562
18,977,000
(b)
Georgia
Municipal Electric Authority, Plant Vogtle Units 3 &
4 Project P
Bonds, Refunding Taxable Build America Bonds
Series
2010A
7.055
04/01/57
21,377,338
4,944,000
Municipal Electric Authority of Georgia, Plant Vogtle Units 3 &
4 Project J Bonds, Taxable Build America Bonds Series
2010A
6.637
04/01/57
5,424,428
TOTAL
GEORGIA
35,610,864
ILLINOIS
- 14.3% (9.9% of Total
Investments)
2,210,000
Bellwood
Illinois, Tax Increment Revenue Bonds, Senior
Apartments Project, Series
2022
6.000
12/01/50
2,095,683
4,030,000
(b)
Chicago
Board of Education, Illinois, General Obligation
Bonds, Dedicated
Revenues, Series 2010C - BAM
Insured
6.319
11/01/29
4,187,583
12,715,000
(b)
Chicago
Transit Authority, Illinois, Sales Tax Receipts Revenue
Bonds, Federally
Taxable Build America Bonds, Series
2010B
6.200
12/01/40
13,402,408
355,000
Chicago, Illinois, General Airport Revenue Bonds, O'Hare
International Airport, Third Lien, Taxable Build America Bond
Series
2010B
6.395
01/01/40
397,294
1,000,000
Chicago, Illinois, General Obligation Bonds, Taxable Project,
Build America Bonds - Direct Payment, Series 2010B - BAM
Insured
7.517
01/01/40
1,184,115
1,935,000
Chicago,
Illinois, Wastewater Transmission Revenue Bonds,
Build America Taxable
Bond Series
2010B
6.900
01/01/40
2,147,353
4,450,000
Chicago, Illinois, Water Revenue Bonds, Taxable Second Lien
Series
2010B
6.742
11/01/40
4,860,715
1,950,000
Cook County, Illinois, General Obligation Bonds, Build America
Taxable Bonds, Series
2010D
6.229
11/15/34
2,077,759
7,500,000
(a)
Illinois
Finance Authority, Revenue Bonds, Illinois Institute of
Technology,
Taxable Series
2025B
8.250
09/01/39
7,530,963
2,770,000
(a)
Illinois
International Port District, Revenue Bonds, Taxable
Refunding Series
2020
5.000
01/01/35
2,577,388
13
See Notes To Financial Statements
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
ILLINOIS
(continued)
$
1,428,571
Illinois
State, General Obligation Bonds, Build America Taxable
Bonds, Series
2010-5
7.350
%
07/01/35
$
1,558,373
10,796,154
(b)
Illinois
State, General Obligation Bonds, Taxable Build America
Bonds, Series
2010-3
6.725
04/01/35
11,477,473
10,312,000
(b)
Illinois
Toll Highway Authority, Toll Highway Revenue Bonds,
Taxable Build America
Bond Senior Lien Series
2009A
6.184
01/01/34
11,049,996
2,420,000
(b)
Illinois
Toll Highway Authority, Toll Highway Revenue Bonds,
Taxable Build America
Bond Senior Lien Series
2009B
5.851
12/01/34
2,548,001
380,000
Northern Illinois Municipal Power Agency, Power Project
Revenue Bonds, Prairie State Project, Build America Bond
Series
2009C
6.859
01/01/39
410,855
1,375,000
Northern Illinois Municipal Power Agency, Power Project
Revenue Bonds, Prairie State Project, Build America Taxable
Bond Series
2010A
7.820
01/01/40
1,621,783
TOTAL
ILLINOIS
69,127,742
INDIANA
- 1.8% (1.2% of Total
Investments)
3,500,000
Indiana
Finance Authority, Revenue Bonds, Deaconess Health
System, Taxable Series
2021A
3.313
03/01/51
2,437,400
1,000,000
Indianapolis Local Public Improvement Bond Bank, Indiana,
Build America Taxable Bonds, Series
2010B-2
6.116
01/15/40
1,054,840
5,000,000
Knox County, Indiana, Economic Development Revenue Bonds,
Good Samaritan Hospital Project, Taxable Series
2012B
5.900
04/01/34
5,006,250
TOTAL
INDIANA
8,498,490
KENTUCKY
- 1.7% (1.2% of Total
Investments)
5,000
Kentucky
Municipal Power Agency, Power System Revenue
Bonds, Prairie State
Project, Build America Bond Series 2010B
- AGM
Insured
6.490
09/01/37
5,005
5,450,000
(b)
Louisville
and Jefferson County Metropolitan Sewer District,
Kentucky, Sewer and
Drainage System Revenue Bonds, Build
America Taxable Bonds Series
2010A
6.250
05/15/43
5,751,000
1,250,000
Louisville/Jefferson County Metro Government, Kentucky,
Revenue Bonds, Louisville Medical Center, Inc. Steam and
Chilled Water Plant Project, Taxable Series
2020
4.394
05/01/50
872,995
1,890,000
Newport, Kentucky, Industrial Building Revenue Bonds, South
Beach 1, LLC Project, Taxable Refunding Series
2022
4.125
03/01/33
1,771,919
TOTAL
KENTUCKY
8,400,919
LOUISIANA
- 0.1% (0.0% of Total
Investments)
500,000
Shreveport,
Louisiana, Water and Sewer Revenue Bonds,
Refunding Junior Lien Series
2020C
4.210
12/01/44
394,333
TOTAL
LOUISIANA
394,333
MARYLAND
- 2.7% (1.9% of Total
Investments)
1,500,000
Maryland
Economic Development Corporation, Parking
Facilities Revenue Bonds
Baltimore City Project, Senior Parking
Facilities Revenue, Series
2018B
4.580
06/01/33
1,485,904
2,945,000
Maryland Economic Development Corporation, Parking
Facilities Revenue Bonds Baltimore City Project, Senior Parking
Facilities Revenue, Series
2018B
4.790
06/01/38
2,820,660
4,285,000
Maryland Economic Development Corporation, Parking
Facilities Revenue Bonds Baltimore City Project, Senior Parking
Facilities Revenue, Series
2018B
5.050
06/01/43
3,971,202
5,350,000
Maryland Economic Development Corporation, Parking
Facilities Revenue Bonds Baltimore City Project, Senior Parking
Facilities Revenue, Series
2018B
5.320
06/01/51
4,893,297
TOTAL
MARYLAND
13,171,063
MASSACHUSETTS
- 1.2% (0.8% of Total
Investments)
1,000,000
Massachusetts
Development Finance Agency Revenue Bonds,
Wellforce Issue, Series C&D
(2020) - AGM
Insured
3.520
10/01/46
699,849
4,000,000
(a),(c)
Massachusetts,
Transporation Fund Revenue Bonds,
Accelerated Bridge Program, Tender
Option Bond Trust 2016-
XFT907,
(IF)
8.913
06/01/40
4,985,538
TOTAL
MASSACHUSETTS
5,685,387
Portfolio of Investments September 30, 2025
(continued)
NBB
14
See Notes To Financial Statements
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
MINNESOTA
- 0.4% (0.3% of Total
Investments)
$
1,855,000
Western Minnesota Municipal Power Agency, Minnesota,
Power Supply Revenue Bonds, Build America Taxable Bond
Series
2010C
6.770
%
01/01/46
$
2,055,548
TOTAL
MINNESOTA
2,055,548
MISSISSIPPI
- 0.5% (0.3% of Total
Investments)
2,085,000
Mississippi
State, General Obligation Bonds, Taxable Build
America Bond Series
2010F
5.245
11/01/34
2,147,566
TOTAL
MISSISSIPPI
2,147,566
MISSOURI
- 0.2% (0.2% of Total
Investments)
1,000,000
Missouri
Joint Municipal Electric Utility Commission, Power
Project Revenue Bonds,
Pairie State Power Project, Federally
Taxable Build America Bonds - Direct
Pay, Series
2009A
6.890
01/01/42
1,099,380
TOTAL
MISSOURI
1,099,380
NEW
HAMPSHIRE - 0.9% (0.6% of Total
Investments)
4,350,000
(a)
National Finance Authority, New Hampshire, Utility Revenue
Bonds, Wheeling Power Company Project, Taxable Refunding
Series
2024A
6.890
04/01/34
4,565,242
TOTAL
NEW
HAMPSHIRE
4,565,242
NEW
JERSEY - 3.6% (2.5% of Total
Investments)
3,000,000
New
Jersey Turnpike Authority, Revenue Bonds, Build America
Taxable Bonds,
Series
2009F
7.414
01/01/40
3,626,444
8,805,000
New Jersey Turnpike Authority, Revenue Bonds, Build America
Taxable Bonds, Series
2010A
7.102
01/01/41
10,210,212
2,000,000
Rutgers State University, New Jersey, Revenue Bonds, Taxable
Build America Bond Series
2010H
5.665
05/01/40
2,085,116
870,000
South Jersey Port Corporation, New Jersey, Marine Terminal
Revenue Bonds, Taxable Build America Bond Series
2009P-3
7.365
01/01/40
1,011,594
530,000
South Jersey Transportation Authority, New Jersey,
Transportation System Revenue Bonds, Build America Bond
Series
2009A-5
7.000
11/01/38
587,930
TOTAL
NEW
JERSEY
17,521,296
NEW
YORK - 22.3% (15.4% of Total
Investments)
420,000
Babylon
Local Development Corporation II, New York,
Education Revenue Bonds, The
Academy Charter School
Project, Taxable Series
2023B
7.250
02/01/27
423,046
10,000,000
Dormitory Authority of the State of New York, Revenue Bonds,
Montefiore Obligated Group, Taxable
Series
2018B
5.096
08/01/34
9,273,488
1,415,000
Dormitory Authority of the State of New York, Revenue Bonds,
Montefiore Obligated Group, Taxable
Series 2018B - AGM
Insured
4.946
08/01/48
1,246,716
25,000,000
(c)
Dormitory Authority of the State of New York, State Personal
Income Tax Revenue Bonds, Build America Taxable Bonds,
Series 2010D,
(UB)
5.600
03/15/40
25,780,437
2,000,000
(a),(c)
Dormitory
Authority of the State of New York, State Personal
Income Tax Revenue
Bonds, Tender Option Bond Trust 30020,
(IF)
8.066
03/15/40
2,312,175
5,100,000
(b)
Long Island Power Authority, New York, Electric System
Revenue Bonds, Build America Taxable Bond Series
2010B
5.850
05/01/41
5,206,872
595,000
Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Bonds, Build America Taxable Bonds, Series
2010C
7.336
11/15/39
711,585
6,500,000
(b)
Metropolitan
Transportation Authority, New York,
Transportation Revenue Bonds,
Federally Taxable Build
America Bonds, Series
2010E
6.814
11/15/40
7,219,913
11,390,000
(b)
Metropolitan
Transportation Authority, New York,
Transportation Revenue Bonds,
Federally Taxable Issuer
Subsidy Build America Bonds, Series
2010A
6.668
11/15/39
12,496,643
440,000
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Taxable Green Climate
Certified Series
2020C-2
5.175
11/15/49
406,572
3,675,000
Monroe County Industrial Development Corporation, New
York, Revenue Bonds, Rochester Regional Health Project,
Taxable Series
2020B
4.600
12/01/46
3,002,933
15
See Notes To Financial Statements
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
NEW
YORK
(continued)
$
870,000
(a)
New York City Industrial Development Agency, New York,
Installment Purchase and Lease Revenue Bonds, Queens
Baseball Stadium Project, Series 2006 - AMBAC
Insured
6.027
%
01/01/46
$
861,682
1,900,000
New York City Industrial Development Agency, New York,
Installment Purchase and Lease Revenue Bonds, Queens
Baseball Stadium Project, Series 2006 - AGM
Insured
6.027
01/01/46
1,914,696
400,000
(a)
New
York City Industrial Development Authority, New York,
Rental Revenue
Bonds, Yankee Stadium Project, Taxable Series
2009 - AGM
Insured
11.000
03/01/29
447,001
1,500,000
(b)
New
York City Municipal Water Finance Authority, New York,
Water and Sewer
System Revenue Bonds, Second Generation
Resolution, Build America Taxable
Bonds, Fiscal 2011 Series
AA
5.440
06/15/43
1,501,227
2,595,000
New
York City Municipal Water Finance Authority, New York,
Water and Sewer
System Revenue Bonds, Second Generation
Resolution, Build America Taxable
Bonds, Series
2010DD
5.952
06/15/42
2,707,503
2,025,000
(c)
New
York City Municipal Water Finance Authority, New York,
Water and Sewer
System Revenue Bonds, Second Generation
Resolution, Build America Taxable
Bonds, Series 2010DD,
(UB)
5.952
06/15/42
2,112,791
3,595,000
(a),(c)
New
York City Municipal Water Finance Authority, New York,
Water and Sewer
System Revenue Bonds, Second Generation
Resolution, Taxable Tender Option
Bonds Trust T30001-2,
(IF)
9.764
06/15/44
4,289,547
10,040,000
(b)
New
York City Transitional Finance Authority, New York,
Building Aid Revenue
Bonds, Fiscal 2011 Taxable Build
America Bond Series
2010S-1B
6.828
07/15/40
11,093,423
3,000,000
New York City, New York, General Obligation Bonds, Taxable
Fiscal 2025 Series
D-1
5.114
10/01/54
2,870,703
5,495,000
Westchester County Health Care Corporation, New York,
Senior Lien Revenue Bonds, Refunding Series
2010A
8.572
11/01/40
5,235,790
3,450,000
Westchester County Health Care Corporation, New York,
Senior Lien Revenue Bonds, Refunding Series
2010A
8.572
11/01/40
3,287,377
2,970,000
Westchester County Health Care Corporation, New York,
Senior Lien Revenue Bonds, Series 2010-C1 - AGM
Insured
8.572
11/01/40
3,380,168
TOTAL
NEW
YORK
107,782,288
OHIO
- 5.7% (4.0% of Total
Investments)
6,350,000
(b)
American Municipal Power Inc., Ohio, Combined Hydroelectric
Projects Revenue Bonds, Build America Bond Series
2010B
7.834
02/15/41
7,637,673
1,000,000
American Municipal Power Inc., Ohio, Combined Hydroelectric
Projects Revenue Bonds, Build America Bond Series
2010B
8.084
02/15/50
1,285,512
1,450,000
American Municipal Power Inc., Ohio, Meldahl Hydroelectric
Projects Revenue Bonds, Build America Bond Series
2010B
7.499
02/15/50
1,703,904
7,040,000
American Municipal Power Ohio Inc., Prairie State Energy
Campus Project Revenue Bonds, Build America Bond Series
2009C
6.053
02/15/43
7,329,574
10,575,000
Port
of Greater Cincinnati Development Authority, Ohio,
Special Obligation Tax
Increment Financing Revenue Bonds,
Cooperative Township Public Parking
Project, Kenwood
Collection Redevelopment, Refunding Senior Lien Series
2016A
6.600
01/01/39
9,802,177
TOTAL
OHIO
27,758,840
OKLAHOMA
- 3.9% (2.7% of Total
Investments)
19,200,000
Oklahoma
Development Finance Authority, Health System
Revenue Bonds, OU Medicine
Project, Taxable Series
2018D
5.450
08/15/28
18,949,569
TOTAL
OKLAHOMA
18,949,569
Portfolio of Investments September 30, 2025
(continued)
NBB
16
See Notes To Financial Statements
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
OREGON
- 1.1% (0.8% of Total
Investments)
$
1,590,000
Hillsboro Economic Development Council, Oregon, Tax
Increment Revenue Bonds, North Hillsboro Industrial Renew
Area, Taxable Series 2024 - AGM
Insured
5.815
%
06/01/38
$
1,678,849
1,600,000
Hillsboro Economic Development Council, Oregon, Tax
Increment Revenue Bonds, North Hillsboro Industrial Renew
Area, Taxable Series 2024 - AGM
Insured
5.865
06/01/39
1,684,344
2,450,000
Port of Portland, Oregon, Portland International Airport
Customer Facility Charge Revenue Bonds, Taxable Series
2019
4.237
07/01/49
2,064,355
TOTAL
OREGON
5,427,548
PENNSYLVANIA
- 1.4% (1.0% of Total
Investments)
1,820,000
Commonwealth
Financing Authority, Pennsylvania, State
Appropriation Lease Bonds, Build
America Taxable Bonds,
Series
2009D
6.218
06/01/39
1,926,504
215,000
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Thomas Jefferson University, Taxable Series
2024C
5.362
11/01/37
222,018
1,640,000
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds,
Build America Taxable Bonds, Series
2009A
6.105
12/01/39
1,783,865
2,715,000
(b)
Pennsylvania
Turnpike Commission, Turnpike Revenue Bonds,
Build America Taxable Bonds,
Series
2010B
5.511
12/01/45
2,706,003
305,000
Philadelphia Redevelopment Authority, Pennsylvania, City
Service Agreement Revenue Bonds, City of Philadelphia
Neighborhood Preservation Initiative, Taxable Social Series
2024A
5.226
09/01/40
308,654
TOTAL
PENNSYLVANIA
6,947,044
SOUTH
CAROLINA - 3.4% (2.3% of Total
Investments)
1,550,000
South
Carolina Public Service Authority, Electric System
Revenue Bonds, Santee
Cooper, Federally Taxable Build
America Series
2010C
6.454
01/01/50
1,667,600
2,000,000
South Carolina Public Service Authority, Electric System
Revenue Bonds, Santee Cooper, Federally Taxable Build
America Series 2010C - AGM
Insured
6.454
01/01/50
2,162,094
8,985,000
South Carolina Public Service Authority, Electric System
Revenue Bonds, Santee Cooper, Federally Taxable Build
America Series 2010C,
(UB)
6.454
01/01/50
9,666,703
205,000
(a),(c)
South
Carolina Public Service Authority, Electric System
Revenue Bonds, Santee
Cooper, Federally Taxable Build
America Tender Option Bond Trust T30002,
(IF)
11.840
01/01/50
282,768
2,585,000
South Carolina Public Service Authority, Santee Cooper
Revenue Obligations, Refunding Series 2013C - AGM
Insured
5.784
12/01/41
2,681,030
TOTAL
SOUTH
CAROLINA
16,460,195
TENNESSEE
- 4.8% (3.3% of Total
Investments)
1,500,000
Jackson,
Tennessee, Hospital Revenue Bonds, Jackson-
Madison County General
Hospital Project, Series
2018B
5.308
04/01/48
1,359,910
280,000
Memphis/Shelby County Economic Development Growth
Engine Industrial Development Board, Tennessee, Tax
Increment Revenue Bonds, Graceland Project, Senior Taxable
Series
2017B
4.700
07/01/27
263,280
7,915,000
Memphis/Shelby County Economic Development Growth
Engine Industrial Development Board, Tennessee, Tax
Increment Revenue Bonds, Graceland Project, Senior Taxable
Series
2017B
5.200
07/01/37
6,635,389
1,515,000
Memphis/Shelby County Economic Development Growth
Engine Industrial Development Board, Tennessee, Tax
Increment Revenue Bonds, Graceland Project, Senior Taxable
Series
2017B
5.450
07/01/45
1,136,175
5,010,000
(b)
Metropolitan
Government Nashville & Davidson County
Convention Center Authority,
Tennessee, Tourism Tax Revenue
Bonds, Build America Taxable Bonds, Series
2010A-2
7.431
07/01/43
5,695,039
7,350,000
(b)
Metropolitan
Government Nashville & Davidson County
Convention Center Authority,
Tennessee, Tourism Tax Revenue
Bonds, Build America Taxable Bonds,
Subordinate Lien Series
2010B
6.731
07/01/43
7,923,159
TOTAL
TENNESSEE
23,012,952
17
See Notes To Financial Statements
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
TEXAS
- 9.6% (6.6% of Total
Investments)
$
2,520,000
Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds,
Taxable Build America Bonds, Series
2009B
5.999
%
12/01/44
$
2,634,267
16,460,000
(b)
Dallas
Convention Center Hotel Development Corporation,
Texas, Hotel Revenue
Bonds, Build America Taxable Bonds,
Series
09B
7.088
01/01/42
18,574,674
1,000,000
Fort Worth, Tarrant, Denton, Parker, Johnson, and Wise
Counties, Texas, Special Tax Revenue Bonds, Taxable Series
2017B
4.238
03/01/47
858,294
1,500,000
Greater
Texas Cultural Educational Facilities Finance
Corporation, Texas, Revenue
Bonds, Biomedical Research
Institute Taxable Series
2024B
6.250
06/01/37
1,487,959
665,000
Harris County, Texas, Hotel Occupancy Tax Revenue Bonds,
Senior Lien Taxable Series
2024
5.363
08/15/49
647,714
10,285,000
(b)
North
Texas Tollway Authority, System Revenue Bonds, Taxble
Build America Bond Series
2009B
6.718
01/01/49
11,469,252
7,545,000
San Antonio, Texas, Customer Facility Charge Revenue Bonds,
Rental Car Special Facilities Project, Series
2015
5.671
07/01/35
7,547,497
2,000,000
San Antonio, Texas, Customer Facility Charge Revenue Bonds,
Rental Car Special Facilities Project, Series
2015
5.871
07/01/45
1,962,887
1,000,000
San Antonio, Texas, Electric and Gas System Revenue Bonds,
Junior Lien, Build America Taxable Bond Series
2010A
5.808
02/01/41
1,039,717
10,000
San Antonio, Texas, Electric and Gas System Revenue Bonds,
Series
2012
4.427
02/01/42
9,437
TOTAL
TEXAS
46,231,698
UTAH
- 1.5% (1.1% of Total
Investments)
8,500,000
(a)
Salt Lake County, Utah, Convention Hotel Revenue Bonds,
Taxable Series
2019
5.750
10/01/47
7,464,104
TOTAL
UTAH
7,464,104
VIRGINIA
- 3.0% (2.1% of Total
Investments)
1,840,000
(a)
Fredericksburg Economic Development Authority, Virginia,
Revenue Bonds, Fredericksburg Stadium Project, Taxable
Series
2019A
5.500
09/01/49
1,799,323
10,225,000
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset Backed Bonds, Refunding Senior Lien Series
2007A
6.706
06/01/46
7,807,412
4,820,000
(a)
Virginia Small Business Finance Authority, Tourism
Development Financing Program Revenue Bonds, Downtown
Norfolk and Virginia Beach Oceanfront Hotel Projects, Series
2018B
12.000
04/01/48
4,841,583
TOTAL
VIRGINIA
14,448,318
WASHINGTON
- 6.0% (4.1% of Total
Investments)
27,045,000
(b)
Washington State Convention Center Public Facilities District,
Lodging Tax Revenue Bonds, Build America Taxable Bond
Series
2010B
6.790
07/01/40
28,833,397
TOTAL
WASHINGTON
28,833,397
WEST
VIRGINIA - 1.6% (1.1% of Total
Investments)
10,800,000
Tobacco
Settlement Finance Authority, West Virginia, Tobacco
Settlement
Asset-Backed Bonds, Taxable Refunding Class 1
Senior Series
2020A
4.306
06/01/49
7,887,524
TOTAL
WEST
VIRGINIA
7,887,524
WISCONSIN
- 2.6% (1.8% of Total
Investments)
480,000
(a)
Fond du Lac County, Wisconsin, Revenue Bonds, Bug Tussel 1
LLC Project, Taxable Social Series 2022A - BAM
Insured
5.569
11/01/51
450,092
2,360,000
(a)
Fond
du Lac County, Wisconsin, Revenue Bonds, Bug Tussel 1
LLC Project,
Taxable Social Series 2023 - BAM
Insured
6.434
11/01/52
2,411,759
400,000
Fond du Lac County, Wisconsin, Revenue Bonds, Bug Tussel 2
LLC Project, Taxable Series 2024 - BAM
Insured
6.201
05/01/54
403,084
4,935,000
Public Finance Authority of Wisconsin, Wisconsin, Revenue
Bonds, E-470 Public Highway Authority Service Areas Project,
Taxable Senior Lien Series
2025
7.087
07/01/60
5,003,359
1,500,000
Public Finance Authority, Wisconsin, Revenue Bonds, Peddie
School, Series
2020
3.127
07/01/50
1,062,517
Portfolio of Investments September 30, 2025
(continued)
NBB
18
See Notes To Financial Statements
All percentages shown in the Portfolio of Investments are based on net assets
applicable to common shares unless otherwise noted.
Investments in
Derivatives
PRINCIPAL
DESCRIPTION
RATE
MATURITY
VALUE
WISCONSIN
(continued)
$
2,500,000
Public
Finance Authority, Wisconsin, Revenue Bonds, Texas
Biomedical Research
Institute Project, Taxable Series
2021B
3.625
%
06/01/51
$
1,373,442
2,000,000
Wisconsin Center District, Dedicated Tax Revenue Bonds,
Supported by State Moral Obligation Taxable Senior Series
2020A - AGM
Insured
4.473
12/15/47
1,788,231
TOTAL
WISCONSIN
12,492,484
TOTAL
MUNICIPAL BONDS
(Cost
$711,692,440)
701,135,537
TOTAL
LONG-TERM INVESTMENTS
(Cost
$711,692,440)
701,135,537
FLOATING
RATE OBLIGATIONS -
(7.6)%
(36,810,000)
REVERSE
REPURCHASE AGREEMENTS, INCLUDING ACCRUED INTEREST -
(40.9)%(d)
(198,108,996)
OTHER
ASSETS & LIABILITIES, NET
-
3.6%
17,690,945
NET
ASSETS APPLICABLE TO COMMON SHARES -
100%
$
483,907,486
IF
Inverse
floating rate security issued by a tender option bond (“TOB”) trust, the interest rate on which varies inversely with the
Securities Industry Financial Markets Association (SIFMA) short-term rate,
which resets weekly, or a similar short-term rate, and is
reduced by the
expenses related to the TOB
trust.
UB
Underlying
bond of an inverse floating rate trust reflected as a financing transaction. Inverse floating rate trust is a Recourse Trust
unless otherwise
noted.
(a)
Security
is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities are deemed liquid
and may be resold in transactions exempt from registration, which are
normally those transactions with qualified institutional buyers.
As of the
end of the fiscal period, the aggregate value of these securities is $95,754,372 or 13.7% of Total
Investments.
(b)
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 fiscal period, investments with
a value of $237,926,682 have been pledged as
collateral for reverse
repurchase
agreements.
(c)
Investment,
or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse
floating rate
transactions.
(d)
Reverse
Repurchase Agreements, including accrued interest as a percentage of Total investments is
28.3%.
Futures Contracts -
Short
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
Value
Unrealized
Appreciation
(Depreciation)
U.S.
Treasury Ultra
Bond
(796)
12/25
$
(92,956,219)
$
(95,569,750)
$
(2,613,531)
Statement of Assets and Liabilities
See Notes to Financial Statements
19
September 30, 2025
(Unaudited)
NBB
ASSETS
Long-term investments, at
value
†
$
701,135,537
Cash
collateral at broker for investments in futures
contracts
(1)
4,509,344
Receivables:
Interest
13,520,283
Investments
sold
3,337,437
Variation
margin on futures
contracts
447,750
Deferred
offering
costs
189,339
Other
42,617
Total
assets
723,182,307
LIABILITIES
Cash
overdraft
794,409
Reverse
repurchase agreements, including accrued
interest
198,108,996
Floating
rate
obligations
36,810,000
Payables:
Management
fees
384,861
Dividends
2,755,095
Interest
270,841
Accrued
expenses:
Custodian
fees
49,203
Investor
relations
fees
4,972
Trustees
fees
46,442
Professional
fees
18,991
Shareholder
reporting
expenses
28,379
Shareholder
servicing agent
fees
41
Other
2,591
Total
liabilities
239,274,821
Commitments
and
contingencies
(2)
Net
assets applicable to common shares
$
483,907,486
Common shares
outstanding
29,394,752
Net
asset value ("NAV") per common share
outstanding
$
16
.46
NET
ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
Common shares, $0.01 par value
per
share
$
293,948
Paid-in
capital
532,476,017
Total
distributable earnings
(loss)
(
48,862,479
)
Net
assets applicable to common
shares
$
483,907,486
Authorized
shares:
Common
Unlimited
†
Long-term investments,
cost
$
711,692,440
(1)
Cash
pledged to collateralize the net payment obligations for investments in
derivatives.
(2)
As
disclosed in Notes to Financial Statements.
Statement of Operations
See Notes to Financial Statements
20
Six Months Ended September 30, 2025
(Unaudited)
NBB
INVESTMENT
INCOME
Interest
$
20,909,596
Total
investment
income
20,909,596
EXPENSES
–
Management
fees
2,348,714
Shareholder
servicing agent
fees
132
Interest
expense
5,509,403
Trustees
fees
12,779
Custodian
expenses
32,673
Investor
relations
expenses
55,849
Professional
fees
37,733
Shareholder
reporting
expenses
44,928
Stock
exchange listing
fees
4,658
Total
expenses
8,046,869
Net
investment income
(loss)
12,862,727
REALIZED
AND UNREALIZED GAIN (LOSS)
Realized gain (loss)
from:
Investments
(1,946,926)
Futures
contracts
2,173,282
Net
realized gain
(loss)
226,356
Change
in unrealized appreciation (depreciation) on:
Investments
3,223,686
Futures
contracts
128,374
Net
change in unrealized appreciation
(depreciation)
3,352,060
Net
realized and unrealized gain
(loss)
3,578,416
Net
increase (decrease) in net assets applicable to common shares from
operations
$
16,441,143
Statement of Changes in Net Assets
See Notes to Financial Statements
21
NBB
Unaudited
Six Months
Ended
9/30/25
Year
Ended
3/31/25
OPERATIONS
Net investment income
(loss)
$
12,862,727
$
22,499,794
Net realized gain (loss)
226,356
(
3,024,684
)
Net change in unrealized appreciation (depreciation)
3,352,060
3,717,120
Net increase (decrease) in net assets applicable to common shares from
operations
16,441,143
23,192,230
DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends
(
17,019,561
)
(
26,015,873
)
Return
of
Capital
–
(
6,671,091
)
Total
distributions
(
17,019,561
)
(
32,686,964
)
CAPITAL SHARE
TRANSACTIONS
Common
shares:
Proceeds from shelf offering, net of offering
costs
—
1,761
Net increase (decrease) applicable to common shares from capital share
transactions
—
1,761
Net increase (decrease) in net assets applicable to common
shares
(
578,418
)
(
9,492,973
)
Net assets applicable to common shares at the beginning of
period
484,485,904
493,978,877
Net assets applicable to common shares at the end of
period
$
483,907,486
$
484,485,904
Statement of Cash Flows
See Notes to Financial Statements
22
Six Months Ended September 30, 2025
(Unaudited)
NBB
CASH
FLOWS FROM OPERATING ACTIVITIES
Net Increase (Decrease) in Net
Assets Applicable to Common Shares from
Operations
$
16,441,143
Adjustments to reconcile the net increase (decrease) in net assets applicable
to common shares from operations to net cash provided by (used in)
operating
activities:
Purchases of
investments
(19,538,190)
Proceeds
from sale and maturities of
investments
18,247,949
Proceeds
from (Purchase of) short-term investments,
net
4,746,088
Amortization
(Accretion) of premiums and discounts,
net
871,131
(Increase)
Decrease in:
Receivable for
interest
(75,867)
Receivable
for investments
sold
(2,874,769)
Receivable
for reverse repurchase agreements
sold
123,000,000
Receivable
for variation margin on futures
contracts
(447,750)
Other
assets
(9,747)
Increase
(Decrease) in:
Payable for
interest
724,125
Payable
for forward reverse repurchase
agreements
(123,420,250)
Payable
for variation margin on futures
contracts
(390,250)
Payable
for management
fees
(22,390)
Accrued
custodian
fees
21,811
Accrued
investor relations
fees
(7,588)
Accrued
Trustees
fees
3,782
Accrued
professional
fees
13,536
Accrued
shareholder reporting
expenses
(6,742)
Accrued
shareholder servicing agent
fees
(15)
Accrued
other
expenses
2,302
Net
realized (gain) loss from
investments
1,946,926
Net
change in unrealized (appreciation) depreciation of
investments
(3,223,686)
Net
cash provided by (used in) operating
activities
16,001,549
CASH
FLOWS FROM FINANCING ACTIVITIES
Proceeds from reverse repurchase
agreements
762,900,000
(Repayments
of) reverse repurchase
agreements
(762,900,000)
Increase
(Decrease) in:
Cash
overdraft
794,409
Cash
distributions paid to common
shareholders
(17,021,712)
Net
cash provided by (used in) financing
activities
(16,227,303)
Net
increase (decrease) in cash collateral at
brokers
(225,754)
Cash
collateral at brokers at the beginning of
period
4,735,098
Cash
collateral at brokers at the end of
period
$
4,509,344
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
NBB
Cash
paid for interest
$
4,778,473
Financial Highlights
24
The following data is for a common share outstanding for each
fiscal year end unless otherwise noted:
Investment
Operations
Less Distributions
to
Common
Shareholders
Common
Share
Common
Share
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(NII)
(Loss)
(a)
Net
Realized/
Unrealized
Gain
(Loss)
Total
From
NII
From
Net
Realized
Gains
Return
of
Capital
Total
Shelf
Offering
Costs
Premium
per
Share
Sold
through
Shelf
Offering
Net
Asset
Value,
End
of
Period
Share
Price,
End
of
Period
NBB
9/30/25
(d)
$
16.48
$
0.44
$
0.12
$
0.56
$
(0.58)
$
—
$
—
$
(0.58)
$
—
$
—
$
16.46
$
16.22
3/31/25
16.81
0.77
0.01
0.78
(0.88)
—
(0.23)
(1.11)
—
—
16.48
16.02
3/31/24
17.04
0.73
0.36
1.09
(0.81)
(0.48)
(0.03)
(1.32)
—
—
16.81
15.32
3/31/23
20.00
0.95
(2.78)
(1.83)
(1.14)
—
—
(1.14)
—
0.01
17.04
16.12
3/31/22
22.11
1.23
(2.07)
(0.84)
(1.28)
—
—
(1.28)
—
(f)
0.01
20.00
19.99
3/31/21
19.89
1.18
2.16
3.34
(1.13)
—
—
(1.13)
—
(f)
0.01
22.11
22.59
(a)
Based on average shares
outstanding.
(b)
Total
Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested distributions at Common Share NAV, if any. The last
distribution declared in the period, which is typically paid on the first
business day of the following month, is assumed to be reinvested at the ending NAV. The
actual reinvest price for the last distribution declared in the period may
often be based on the Fund’s market price (and not its NAV), and therefore may be different
from the price used in the calculation. Total returns are not
annualized.
Total Return Based on Common Share Price is the combination of
changes in the market price per share and the effect of reinvested distributions, if any, at
the average price paid per share at the time of reinvestment. The last
distribution declared in the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending market price.
The actual reinvestment for the last distribution declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price used in the
calculation. Total returns are not annualized.
See Notes to Financial Statements
25
Ratios of Interest
Expense
to
Average Net Assets
Applicable
to
Common Shares
NBB
9/30/25
(d)
2.33
%
(e
)
3/31/25
2.53
3/31/24
2.58
3/31/23
1.57
3/31/22
0.32
3/31/21
0.39
Common
Share Supplemental Data/
Ratios Applicable to Common
Shares
Common
Share
Total
Returns
Ratios to
Average
Net
Assets
Based
on
Net
Asset
Value
(b)
Based
on
Share
Price
(b)
Net
Assets,
End
of
Period
(000)
Expenses
(c)
Net
Investment
Income
(Loss)
(c)
Portfolio
Turnover
Rate
3.52
%
5.01
%
$
483,907
3.40
%
(e)
5.43
%
(e)
3
%
4.79
12.14
484,486
3.65
4.60
10
6.65
3.45
493,979
3.63
4.39
2
(8.98)
(13.68)
500,777
2.63
5.46
5
(4.26)
(6.31)
572,087
1.31
5.46
1
16.99
24.16
613,164
1.37
5.36
9
(c)
•
Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to reverse repurchase agreements (as described in Notes
to Financial Statements), where
applicable.
• The expense ratios reflect, among other things, all
interest expense and other costs related to reverse repurchase agreements (as described in Notes to Financial
Statements) and/or the interest expense deemed to have been paid by the
Fund on the floating rate certificates issued by the special purpose trusts for the
self-
deposited inverse floaters held by the Fund (as described in Notes
to Financial Statements), where applicable, as
follows:
(d)
Unaudited.
(e)
Annualized.
(f)
Value
rounded to zero.
26
Notes to Financial Statements
(U
naudited)
1. General
Information
Fund
Information:
The fund covered in this report and its
corresponding New York Stock Exchange (“NYSE”) symbol is Nuveen Taxable Municipal
Income Fund (NBB) (the “Fund”). The Fund is
registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as a closed-end
management investment company. The Fund was organized as a
Massachusetts business trust on December 4, 2009.
Current
Fiscal Period:
The end of the reporting period for the
Fund is September 30, 2025, and the period covered by these Notes to Financial
Statements is the six months ended September 30, 2025 (the
"current fiscal period").
Investment Adviser and
Sub-Adviser:
The Fund’s investment adviser is
Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC
(“Nuveen”). Nuveen is the investment management
arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall
responsibility for management of the Fund, oversees the
management of the Fund's portfolio, manages the Fund’s business affairs and provides
certain clerical, bookkeeping and other administrative
services, and, if necessary, asset allocation decisions. The Adviser has entered into
a sub-
advisory agreement with Nuveen Asset Management,
LLC, (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages
the investment portfolio of the
Fund.
2. Significant Accounting
Policies
The accompanying financial statements were prepared
in accordance with accounting principles generally accepted in the United States of America
(“U.S. GAAP”), which may require the use of
estimates made by management and the evaluation of subsequent events. Actual results may differ
from those estimates. The Fund is an investment company and
follows accounting guidance in the Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification 946, Financial Services
— Investment Companies. The net asset value (“NAV”) for financial reporting purposes
may differ from the NAV for processing security and common share
transactions. The NAV for financial reporting purposes includes security and
common share transactions through the date of the report.
Total return is computed based on the NAV used for processing security and common
share transactions. The following is a summary of the
significant accounting policies consistently followed by the
Fund.
Compensation:
The Fund
pays no compensation directly to those of its officers, all of whom receive remuneration for their services to the Fund from
the Adviser or its affiliates. The Fund’s Board of
Trustees (the “Board”) has adopted a deferred compensation plan for independent trustees that
enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from certain Nuveen-advised
funds. Under the plan, deferred amounts are treated as though
equal dollar amounts had been invested in shares of select Nuveen-advised
funds.
Distributions to
Common Shareholders:
Distributions to
common shareholders are recorded on the ex-dividend date. The amount, character and
timing of distributions are determined in accordance with
federal income tax regulations, which may differ from U.S.
GAAP.
The Fund's distribution policy, which may be changed
by the Board, is to make regular monthly cash distributions to holders of their common shares
(stated in terms of a fixed cents per common share dividend
distributions rate which may be set from time to time). The Fund intends to distribute
all or substantially all of its net investment income each
year through its regular monthly distribution and to distribute realized capital gains at least
annually. In addition, in any monthly period, to maintain its
declared per common share distribution amount, the Fund may distribute more or less
than its net investment income during the period. In the
event the Fund distributes more than its net investment income during any yearly period,
such distributions may also include realized gains and/or a
return of capital. To the extent that a distribution includes a return of capital the NAV per
share may
erode.
Indemnifications:
Under
the Fund’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of
the performance of their duties to the Fund. In addition, in
the normal course of business, the Fund enters into contracts that provide general
indemnifications to other
parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may
be made against the Fund that have not yet occurred.
However, the Fund has not had prior claims or losses pursuant to these contracts and expects
the risk of loss to be
remote.
Investments and Investment Income:
Securities transactions are accounted for as of the
trade date for financial reporting purposes. Realized gains
and losses on securities transactions are based upon the
specific identification method. Investment income is comprised of interest income, which is
recorded on an accrual basis and includes accretion of
discounts and amortization of premiums for financial reporting purposes. Investment income
also reflects payment-in-kind (“PIK”) interest
and paydown gains and losses, if any. PIK interest represents income received in the form of securities in
lieu of cash.
Netting
Agreements:
In the ordinary course of business, the
Fund may enter into transactions subject to enforceable master repurchase
agreements, International Swaps and Derivatives
Association, Inc. (ISDA) master agreements or other similar arrangements (“netting agreements”).
Generally, the right to offset in netting agreements
allows the Fund to offset certain securities and derivatives with a specific counterparty, when
applicable, as well as any collateral received or delivered
to that counterparty based on the terms of the agreements. Generally, the Fund manages
its cash collateral and securities collateral on a
counterparty basis. With respect to certain counterparties, in accordance with the terms of the netting
agreements, collateral posted to the Fund is held in a
segregated account by the Fund's custodian and/or with respect to those amounts which can
be sold or repledged, are presented in the Fund's
Portfolio of Investments or Statements of Assets and
Liabilities.
The Fund’s investments subject to netting
agreements as of the end of the current fiscal period, if any, are further described later in these Notes to
Financial Statements.
27
Segment
Reporting:
The Fund represents a single operating
segment. The officers of the Fund act as the chief operating decision maker
(“CODM”). The CODM monitors the operating
results of the Fund as a whole and is responsible for the Fund’s long-term strategic asset allocation
in accordance with the terms of its prospectus, based on a
defined investment strategy which is executed by the Fund’s portfolio managers as a
team. The financial information in the form of the
Fund’s portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes
in net assets resulting from operations, subscriptions and
redemptions), which are used by the CODM to assess the segment’s performance versus
the Fund’s comparative benchmarks and to make resource
allocation decisions for the Fund’s single segment, is consistent with that presented within
the Fund’s financial statements. Segment assets are
reflected on the Statement of Assets and Liabilities as “total assets” and significant segment
revenues and expenses are listed on the Statement of
Operations.
New Accounting Pronouncement:
In December 2023, the FASB issued Accounting Standard
Update ("ASU") No. 2023-09, Income Taxes (Topic
740) Improvements to Income tax disclosures (“ASU
2023-09”). The primary purpose of the amendments within ASU 2023-09 is to enhance the
transparency and decision usefulness of income tax
disclosures primarily related to the rate reconciliation table and income taxes paid information.
The amendments in ASU 2023-09 are effective for annual
periods beginning after December 15, 2024. Management is currently evaluating the
implications of these changes on the financial
statements.
3. Investment Valuation and Fair Value
Measurements
The Fund's investments in securities are
recorded at their estimated fair value utilizing valuation methods approved by the Adviser, subject to
oversight of the Board. Fair value is defined as the
price that would be received upon selling an investment or transferring a liability in an orderly
transaction to an independent buyer in the principal or most
advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy
which is used to maximize the use of observable market data and minimize the use of
unobservable inputs and to establish classification of fair value
measurements for disclosure purposes. Observable inputs
reflect the assumptions market participants would use in pricing the asset or liability.
Observable inputs are based on market data obtained from
sources independent of the reporting entity. Unobservable inputs reflect management’s
assumptions about the assumptions market participants would
use in pricing the asset or liability. Unobservable inputs are based on the best
information available in the circumstances. The following is
a summary of the three-tiered hierarchy of valuation input
levels.
Level 1 – Inputs are unadjusted and prices are
determined using quoted prices in active markets for identical
securities.
Level 2 – Prices are determined using
other significant observable inputs (including quoted prices for similar securities, interest rates, credit
spreads,
etc.).
Level 3 – Prices are determined using
significant unobservable inputs (including management’s assumptions in determining the fair value of
investments).
A
description of the valuation techniques applied to the Fund's major classifications of assets and liabilities measured at fair value
follows:
Prices of fixed-income securities are generally
provided by pricing services approved by the Adviser, which is subject to review by the Adviser and
oversight of the Board. Pricing services establish a
security’s fair value using methods that may include consideration of the following: yields or
prices of investments of comparable quality, type of issue,
coupon, maturity and rating, market quotes or indications of value from security dealers,
evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor’s credit
characteristics considered relevant. In pricing certain
securities, particularly less liquid and lower quality securities, pricing services may consider
information about a security, its issuer or market activity
provided by the Adviser. These securities are generally classified as Level
2.
Futures contracts are valued using the closing settlement
price or, in the absence of such a price, the last traded price and are generally classified as
Level
1.
For any portfolio security or derivative for which
market quotations are not readily available or for which the Adviser deems the valuations derived
using the valuation procedures described above not to reflect
fair value, the Adviser will determine a fair value in good faith using alternative
procedures approved by the Adviser, subject to the oversight
of the Board. As a general principle, the fair value of a security is the amount that
the owner might reasonably expect to receive for it in a
current sale. A variety of factors may be considered in determining the fair value of such
securities, which may include consideration of the following:
yields or prices of investments of comparable quality, type of issue, coupon, maturity
and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general market conditions
and other information and analysis, including the
obligor’s credit characteristics considered relevant. To the extent the inputs are observable and
timely, the values would be classified as Level 2; otherwise
they would be classified as Level 3.
The following table
summarizes the market value of the Fund's investments as of the end of the current fiscal period, based on the inputs used to
value
them:
NBB
Level
1
Level
2
Level
3
Total
Long-Term
Investments:
Municipal
Bonds
$
–
$
701,135,537
$
–
$
701,135,537
Investments in
Derivatives:
Futures
Contracts*
(2,613,531)
–
–
(2,613,531)
Total
$
(2,613,531)
$
701,135,537
$
–
$
698,522,006
*
Represents net unrealized appreciation (depreciation).
28
Notes to Financial Statements
(continued)
The Fund holds liabilities in floating rate obligations and reverse
repurchase agreements, which are not reflected in the table above. The fair values
of the Fund’s liabilities for floating rate obligations and
reverse repurchase agreements approximate their liquidation values. Floating rate obligations
and reverse repurchase agreements are generally classified
as Level 2 and further described in these Notes to Financial Statements.
4. Portfolio
Securities
Inverse Floating Rate
Securities:
The Fund is authorized to invest in
inverse floating rate securities. An inverse floating rate security is created
by depositing a municipal bond (referred to as an
“Underlying Bond”), typically with a fixed interest rate, into a special purpose tender option
bond (“TOB”) trust (referred to as the “TOB
Trust”) created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating
rate certificates (referred to as “Floaters”), in
face amounts equal to some fraction of the Underlying Bond’s par amount or market value, and (b)
an inverse floating rate certificate (referred to as an
“Inverse Floater”) that represents all remaining or residual interest in the TOB Trust. Floaters
typically pay short-term tax-exempt interest rates to third
parties who are also provided a right to tender their certificate and receive its par value,
which may be paid from the proceeds of a remarketing of the
Floaters, by a loan to the TOB Trust from a third party liquidity provider (“Liquidity
Provider”), or by the sale of assets from the TOB Trust.
The Inverse Floater is issued to a long term investor, such as the Fund. The income received
by the Inverse Floater holder varies inversely with the
short-term rate paid to holders of the Floaters, and in most circumstances the Inverse Floater
holder bears substantially all of the Underlying Bond’s
downside investment risk and also benefits disproportionately from any potential appreciation
of the Underlying Bond’s value. The value of an Inverse
Floater will be more volatile than that of the Underlying Bond because the interest rate is
dependent on not only the fixed coupon rate of the Underlying
Bond but also on the short-term interest paid on the Floaters, and because the
Inverse Floater essentially bears the risk of loss (and possible
gain) of the greater face value of the Underlying Bond.
The Inverse Floater held
by the Fund gives the Fund the right to (a) cause the holders of the Floaters to tender their certificates at par (or slightly
more than par in certain circumstances), and (b) have the
trustee of the TOB Trust (the “Trustee”) transfer the Underlying Bond held by the TOB Trust
to the Fund, thereby collapsing the TOB
Trust.
The Fund may acquire an Inverse Floater in a transaction
where it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party
or (b) transfers an Underlying Bond that it owns, or that it has
purchased in a secondary market transaction for the purpose of creating an Inverse
Floater, to a TOB Trust created at its direction, and in return
receives the Inverse Floater of the TOB Trust (referred to as a “self-deposited Inverse
Floater”). The Fund may also purchase an Inverse Floater
in a secondary market transaction from a third party creator of the TOB Trust without first
owning the Underlying Bond (referred to as an
“externally-deposited Inverse Floater”).
An
investment in a self-deposited Inverse Floater is accounted for as a “financing” transaction (i.e., a secured borrowing). For a self-deposited
Inverse Floater, the Underlying Bond deposited into the TOB
Trust is identified in the Fund’s Portfolio of Investments as “(UB) – Underlying bond of
an inverse floating rate trust reflected as a financing
transaction,” with the Fund recognizing as liabilities, labeled “Floating rate obligations” on the
Statement of Assets and Liabilities, (a) the liquidation value of
Floaters issued by the TOB Trust, and (b) the amount of any borrowings by the TOB
Trust from a Liquidity Provider to enable the TOB Trust to
purchase outstanding Floaters in lieu of a remarketing. In addition, the Fund recognizes in
“Investment Income” the entire earnings of the
Underlying Bond, and recognizes (a) the interest paid to the holders of the Floaters or on the TOB
Trust’s borrowings, and (b) other expenses related to
remarketing, administration, trustee, liquidity and other services to a TOB Trust, as a component
of “Interest expense” on the Statement of
Operations. Earnings due from the Underlying Bond and interest due to the holders of the Floaters as of
the end of the current fiscal period are recognized as
components of “Receivable for interest” and “Payable for interest” on the Statement of Assets
and Liabilities,
respectively.
In contrast, an investment in an
externally-deposited Inverse Floater is accounted for as a purchase of the Inverse Floater and is identified in the
Fund’s Portfolio of Investments as “(IF) –
Inverse floating rate investment.” For an externally-deposited Inverse Floater, a Fund’s Statement of Assets
and Liabilities recognizes the Inverse Floater and not the
Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related
borrowings from a Liquidity Provider, as a liability.
Additionally, the Fund reflects in “Investment Income” only the net amount of earnings on the
Inverse Floater (net of the interest paid to the holders of the
Floaters or the Liquidity Provider as lender, and the expenses of the Trust), and does not
show the amount of that interest paid or the expenses of the TOB
Trust as described above as interest expense on the Statement of
Operations.
Fees paid upon the creation of a TOB Trust for
self-deposited Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of
the cost basis of the Inverse Floater and are capitalized over
the term of the TOB Trust.
As of the end of the fiscal period,
the aggregate value of Floaters issued by the Fund’s TOB Trust for self-deposited Inverse Floaters and
externally-
deposited Inverse Floaters was as
follows:
During the current fiscal period, the average amount
of Floaters (including any borrowings from a Liquidity Provider) outstanding, and the average
annual interest rates and fees related to self-deposited
Inverse Floaters, were as
follows:
Fund
Floating
Rate
Obligations:
Self-
Deposited
Inverse
Floaters
Floating
Rate
Obligations:
Externally-Deposited
Inverse
Floaters
Total
NBB
$
36,810,000
$
87,190,000
$
124,000,000
29
TOB Trusts are supported by a liquidity facility provided by a
Liquidity Provider pursuant to which the Liquidity Provider agrees, in the event that
Floaters are (a) tendered to the Trustee for remarketing and
the remarketing does not occur, or (b) subject to mandatory tender pursuant to the
terms of the TOB Trust agreement, to either purchase Floaters
or to provide the Trustee with an advance from a loan facility to fund the purchase of
Floaters by the TOB Trust. In certain circumstances, the
Liquidity Provider may otherwise elect to have the Trustee sell the Underlying Bond to retire
the Floaters that were tendered and not remarketed prior to
providing such a loan. In these circumstances, the Liquidity Provider remains obligated
to provide a loan to the extent that the proceeds of the sale
of the Underlying Bond are not sufficient to pay the purchase price of the
Floaters.
The size of the commitment under the loan facility
for a given TOB Trust is at least equal to the balance of that TOB Trust’s outstanding Floaters plus
any accrued interest. In consideration of the loan facility,
fee schedules are in place and are charged by the Liquidity Provider(s). Any loans made
by the Liquidity Provider will be secured by the purchased
Floaters held by the TOB Trust. Interest paid on any outstanding loan balances will be
effectively borne by the Fund that owns the Inverse Floaters
of the TOB Trust that has incurred the borrowing and may be at a rate that is greater
than the rate that would have been paid had the Floaters been
successfully remarketed.
As described above, any amounts
outstanding under a liquidity facility are recognized as a component of “Floating rate obligations” on the
Statement of Assets and Liabilities by the Fund holding the
corresponding Inverse Floaters issued by the borrowing TOB Trust. As of the end of
the fiscal period,
there were no loans outstanding under such
facilities.
The Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a “recourse arrangement”) (TOB Trusts involving
such agreements are referred to herein as “Recourse
Trusts”), under which a Fund agrees to reimburse the Liquidity Provider for the Trust’s Floaters,
in certain circumstances, for the amount (if any) by which
the liquidation value of the Underlying Bond held by the TOB Trust may fall short of the
sum of the liquidation value of the Floaters issued by the
TOB Trust plus any amounts borrowed by the TOB Trust from the Liquidity Provider, plus
any shortfalls in interest cash flows. Under these
agreements, a Fund’s potential exposure to losses related to or on an Inverse Floater may increase
beyond the value of the Inverse Floater as a Fund may potentially be liable to
fulfill all amounts owed to holders of the Floaters or the Liquidity
Provider. Any such shortfall amount in the aggregate is
recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and
Liabilities.
As
of the end of the fiscal period, the Fund's maximum exposure to the Floaters issued by Recourse Trusts for self-deposited Inverse Floaters and
externally-deposited Inverse Floaters was as
follows:
Zero Coupon Securities:
A zero coupon security does not pay a regular interest
coupon to its holders during the life of the security. Income to the
holder of the security comes from accretion of the difference
between the original purchase price of the security at issuance and the par value of the
security at maturity and is effectively paid at maturity. The
market prices of zero coupon securities generally are more volatile than the market prices
of securities that pay interest
periodically.
Purchases and
Sales:
Long-term purchases and sales during the
current fiscal period were as follows:
The Fund may
purchase securities on a when-issued or delayed-delivery basis. Securities purchased on a when-issued or delayed-delivery basis may
have extended settlement periods; interest income is not
accrued until settlement date. Any securities so purchased are subject to market fluctuation
during this period. If the Fund has outstanding
when-issued/delayed-delivery purchases commitments as of the end of the current fiscal period, such
amounts are recognized on the Statement of Assets and
Liabilities.
5. Derivative
Investments
The Fund is authorized to invest in certain
derivative instruments. As defined by U.S. GAAP, a derivative is a financial instrument whose value is
derived from an underlying security price, foreign exchange
rate, interest rate, index of prices or rates, or other variables. Investments in derivatives
as of the end of and/or during the current fiscal period, if
any, are included within the Statement of Assets and Liabilities and the Statement of
Operations,
respectively.
Futures
Contracts:
During the current fiscal period, the Fund
managed the duration of its portfolio by shorting interest rate futures
contracts.
Fund
Average
Floating
Rate
Obligations
Outstanding
Average
Annual
Interest
Rate
And
Fees
NBB
$
36,810,000
3.11
%
Fund
Maximum
Exposure
to Recourse
Trusts:
Self-Deposited
Inverse
Floaters
Maximum
Exposure
to Recourse
Trusts:
Externally-Deposited
Inverse
Floaters
Total
NBB
$
36,810,000
$
87,190,000
$
124,000,000
Fund
Non-U.S.
Government
Purchases
Non-U.S.
Government
Sales
and
Maturities
NBB
$
19,538,190
$
18,247,949
30
Notes to Financial Statements
(continued)
A futures contract is an agreement between two parties to buy and sell a
financial instrument for a set price on a future date. Upon execution of a
futures contract, the Fund is obligated to deposit cash or
eligible securities, also known as “initial margin,” into an account at its clearing broker
equal to a specified percentage of the contract amount.
Securities deposited for initial margin, if any, are identified in the Portfolio of Investments
and cash deposited for initial margin, if any, is reflected on
the Statement of Assets and Liabilities.
During the period the
futures contract is open, changes in the market value of the contract are recognized as an unrealized gain or loss by
“marking-
to-market” on a daily basis. The Fund and
the clearing broker are obligated to settle monies on a daily basis representing the changes in the value
of the contracts. These daily cash settlements are known as
“variation margin” and is recognized on the Statement of Assets and Liabilities as a
receivable or payable for variation margin on futures contracts.
When the contract is closed or expired, the Fund records a realized gain or loss
equal to the difference between the value of the contract on the
closing date and value of the contract when originally entered into. The net realized
gain or loss and the change in unrealized appreciation
(depreciation) on futures contracts held during the period is included on the Statement of
Operations.
Risks
of investments in futures contracts include the possible adverse movement in the price of the securities or indices underlying the contracts, the
possibility that there may not be a liquid secondary market for
the contracts and/or that a change in the value of the contract may not correlate with
a change in the value of the underlying securities or indices.
The average notional amount of futures contracts outstanding
during the current fiscal period was as follows:
As of the end
of the fiscal period, the Fund invested in derivative contracts which are reflected in the Statement of Assets and Liabilities as
follows:
During the current fiscal period, the effect of
derivative contracts on the Fund’s Statement of Operations was as
follows:
Market and Counterparty Credit Risk:
In the normal course of business the Fund may invest in financial instruments
and enter into financial
transactions where risk of potential
loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform
(counterparty credit risk). The potential loss could exceed
the value of the financial assets recorded on the financial statements. Financial assets,
which potentially expose the Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and swap
transactions, when applicable. The extent of the Fund’s
exposure to counterparty credit risk in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and
Liabilities.
The Fund helps manage counterparty credit
risk by entering into agreements only with counterparties the Adviser believes have the financial
resources to honor their obligations and by having the
Adviser monitor the financial stability of the counterparties. Additionally, counterparties
may be required to pledge collateral daily (based on the
daily valuation of the financial asset) on behalf of the Fund with a value approximately
equal to the amount of any unrealized gain above a
pre-determined threshold. Reciprocally, when the Fund has an unrealized loss, the Fund has
instructed the custodian to pledge assets of the Fund as
collateral with a value approximately equal to the amount of the unrealized loss above a
pre-determined threshold. Collateral pledges are monitored
and subsequently adjusted if and when the valuations fluctuate, either up or down, by
at least the pre-determined threshold
amount.
6. Fund
Shares
Common Shares Equity Shelf Programs and Offering
Costs:
The Fund has filed a registration statement
with the Securities and Exchange
Commission
(“SEC”) authorizing the Fund to issue additional common shares through one or more equity shelf programs (“Shelf Offering”), which
became effective with the SEC during current or prior fiscal
periods.
Fund
Average
Notional Amount of Futures
Contracts
Outstanding
*
NBB
$
100,663,811
*
The
average notional amount is calculated based on the absolute aggregate notional amount of contracts outstanding at the beginning of the current fiscal period
and at the end of each fiscal quarter within the current fiscal
period.
Asset
Derivatives
Liability
Derivatives
Derivative
Instrument
Risk
Exposure
Location
Value
Location
Value
NBB
Futures
Contracts
Interest
rate
-
$
–
Unrealized
depreciation on
futures
contracts
*
$
(2,613,531)
1
1
1
1
1
1
1
1
*
The fair value presented includes cumulative gain (loss) on open futures
contracts; however, the value reflected in the accompanying Statement of Assets and
Liabilities is only the receivable or payable for variation margin on open
futures contracts.
Derivative
Instrument
Risk
Exposure
Net Realized Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
NBB
Futures
contracts
Interest
rate
$
2,173,282
$
128,374
31
Under this Shelf Offering, the Fund, subject to market conditions, may
raise additional equity capital by issuing additional common shares from time
to time in varying amounts and by different offering methods at a
net price at or above the Fund’s NAV per common share. In the event the Fund’s
Shelf Offering registration statement is no longer current, the
Fund may not issue additional common shares until a post-effective amendment to the
registration statement has been filed with the
SEC.
Maximum aggregate offering, common shares sold and offering
proceeds, net of offering costs under the Fund’s Shelf Offering during the Fund’s
current and prior fiscal period were as follows:
Costs incurred by the Fund in connection with its initial
shelf registration are recorded as a prepaid expense and recognized as “Deferred offering
costs” on the Statement of Assets and Liabilities.
These costs are amortized pro rata as common shares are sold and are recognized as a component
of “Proceeds from shelf offering, net of offering
costs” on the Statement of Changes in Net Assets. Any deferred offering costs remaining one year
after effectiveness of the initial shelf registration will be
expensed. Costs incurred by the Fund to keep the shelf registration current are expensed as
incurred and recognized as a component of “Other
expenses” on the Statement of Operations.
Common
Shares Transactions:
There were no transactions in
common shares during the Fund’s current and prior fiscal
period.
7. Income Tax
Information
The Fund intends to distribute substantially all
of its net investment income and net capital gains to shareholders and otherwise comply with the
requirements of Subchapter M of the Internal Revenue Code
applicable to regulated investment companies. Therefore, no federal income tax
provision is
required.
The Fund files income tax returns in U.S. federal
and applicable state and local jurisdictions. A Fund's federal income tax returns are generally
subject to examination for a period of three fiscal years
after being filed. State and local tax returns may be subject to examination for an additional
period of time depending on the jurisdiction. Management has analyzed the
Fund's tax positions taken for all open tax years and has concluded that
no provision for income tax is required in the Fund's
financial statements.
As of the end of the reporting period,
the aggregate cost and the net unrealized appreciation/(depreciation) of all investments for federal income tax
purposes were as
follows:
For purposes of this disclosure, tax cost generally
includes the cost of portfolio investments as well as up-front fees or premiums exchanged on
derivatives and any amounts unrealized for income statement
reporting but realized income and/or capital gains for tax reporting, if
applicable.
As of prior fiscal period end, the components of
accumulated earnings on a tax basis were as follows:
As of
prior fiscal period end, the Fund had capital loss carryforwards, which will not
expire:
8. Management Fees and Other Transactions with
Affiliates
Management
Fees:
The Fund’s management fee compensates the
Adviser for overall investment advisory and administrative services and general
office facilities. The
Sub-Adviser is compensated for its services to the Fund from the management fees paid to the
Adviser.
NBB
Six
Months
Ended
9/30/25
Year
Ended
3/31/25
Maximum aggregate
offering
120,480,111
120,480,111
Common shares
sold
–
–
Offering proceeds, net of offering
costs
$–
$1,761
Fund
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net
Unrealized
Appreciation
(Depreciation)
NBB
$
685,837,236
$
20,232,755
$
(44,358,744)
$
(24,125,989)
Fund
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Unrealized
Appreciation
(Depreciation)
Capital
Loss
Carryforwards
Late-Year
Loss
Deferrals
Other
Book-to-Tax
Differences
Total
NBB
$
—
$
—
$
(26,823,739)
$
(18,623,728)
$
—
$
(2,836,594)
$
(48,284,061)
Fund
Short-Term
Long-Term
Total
NBB
$
2,910,399
$
15,713,329
$
18,623,728
32
Notes to Financial Statements
(continued)
The Fund’s management fee consists of two components – a
fund-level fee, based only on the amount of assets within the Fund, and a
complex-
level fee, based on the aggregate amount of all eligible
fund assets managed by the Adviser. This pricing structure enables Fund’s shareholders to
benefit from growth in the
assets within the Fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, is calculated
according to the following schedule:
The annual complex-level
fee, payable monthly, for the Fund is calculated according to the following
schedule:
* The complex-level fee is calculated based upon the
aggregate daily “eligible assets” of all Nuveen-branded closed-end funds and Nuveen branded open-end funds (“Nuveen Mutual
Funds”). Except as described below, eligible assets include the
assets of all Nuveen-branded closed-end funds and Nuveen Mutual Funds organized in the United States. Eligible assets do
not include the net assets of: Nuveen fund-of-funds, Nuveen money market
funds, Nuveen index funds, Nuveen Large Cap Responsible Equity Fund or Nuveen Life Large Cap Responsible
Equity Fund. In addition, eligible assets include a fixed percentage of the
aggregate net assets of the active equity and fixed income Nuveen Mutual Funds advised by the Adviser’s affiliate,
Teachers Advisors, LLC (except those identified above). The fixed percentage
will increase annually until May 1, 2033, at which time eligible assets will include all of the aggregate net assets
of the active equity and fixed income Nuveen Mutual Funds advised by
Teachers Advisors, LLC (except those identified above). Eligible assets include closed-end fund assets managed by
the Adviser that are attributable to financial leverage. For these
purposes, financial leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments
in the residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively
financed by the trust’s issuance of
floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in
certain
circumstances.
As of the end of the current fiscal period,
the complex-level fee rate for the Fund was as
follows:
Other Transactions with
Affiliates:
The Fund is permitted to purchase or
sell securities from or to certain other funds or accounts managed by the
Sub-Adviser or by an affiliate of the Adviser (each an,
“Affiliated Entity”) under specified conditions outlined in procedures adopted by the Board
("cross-trade"). These procedures have been
designed to ensure that any cross-trade of securities by the Fund from or to an Affiliated Entity by
virtue of having a common investment adviser (or affiliated
investment adviser), common officer and/or common trustee complies with Rule 17a-7
under the 1940 Act. These transactions are effected at the
current market price (as provided by an independent pricing service) without incurring
broker
commissions.
During the current fiscal period, the Fund did
not engage in cross-trades pursuant to these procedures.
9. Commitments and
Contingencies
In the normal course of business, the Fund
enters into a variety of agreements that may expose the Fund to some risk of loss. These could include
recourse arrangements for certain TOB Trusts, which are
described elsewhere in these Notes to Financial Statements. The risk of future loss arising
from such agreements, while not quantifiable, is expected to
be remote. As of the end of the current fiscal period, the Fund did not have any
unfunded commitments other than those disclosed in the Notes to Financial
Statements, when applicable.
From time to time, the Fund may
be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to
the enforcement of the Fund's rights under contracts. As
of the end of the current fiscal period, the Fund is not subject to any material legal
proceedings.
10.
Fund Leverage
Reverse Repurchase Agreements:
During the current fiscal period, the
Fund utilized reverse repurchase agreements as a means of
leverage.
Average Daily Managed
Assets*
Fund-Level Fee
Rate
For the first $125
million
0.4500
%
For the next $125
million
0.4375
For
the next $250
million
0.4250
For
the next $500
million
0.4125
For
the next $1
billion
0.4000
For
the next $3
billion
0.3750
For
managed assets over $5
billion
0.3625
Complex-Level
Asset Breakpoint Level*
Complex-Level
Fee
For the first $124.3
billion
0.1600
%
For the next $75.7
billion
0.1350
For
the next $200
billion
0.1325
For
eligible assets over $400
billion
0.1300
Fund
Complex-Level
Fee
NBB
0.1564
%
33
The Fund may enter into a reverse repurchase agreement with brokers,
dealers, banks or other financial institutions that have been determined by
the Adviser to be creditworthy. In a reverse repurchase
agreement, the Fund sells to the counterparty a security that it holds with a contemporaneous
agreement to repurchase the same security at an agreed-upon price
and date, reflecting the interest rate effective for the term of the agreement. It
may also be viewed as the borrowing of money by the Fund. Cash
received in exchange for securities delivered, plus accrued interest payments to
be made by the Fund to a counterparty, are reflected as a
liability on the Statement of Assets and Liabilities. Interest payments made by the Fund to
counterparties are recognized as a component of "Interest
expense" on the Statement of Operations.
In a reverse
repurchase agreement, the Fund retains the risk of loss associated with the sold security. Reverse repurchase agreements also involve the
risk that the purchaser fails to return the securities as agreed
upon, files for bankruptcy or becomes insolvent. Upon a bankruptcy or insolvency of a
counterparty, the Fund is considered to be an unsecured creditor
with respect to excess collateral and as such the return of excess collateral may be
delayed.
As
of the end of the current fiscal period, the Fund’s outstanding balances on its reverse repurchase agreements were as
follows:
During the current fiscal period, the average daily
balance outstanding and average interest rate on the Fund’s reverse repurchase agreements were
as
follows:
The following table presents the reverse repurchase
agreements subject to netting agreements and the collateral delivered related to those reverse
repurchase
agreements.
11. Inter-Fund Borrowing and
Lending
Inter-Fund Borrowing and Lending:
The SEC has granted an exemptive order permitting
registered open-end and closed-end Nuveen funds
to participate
in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow money from each other for temporary
purposes (e.g., to satisfy redemption requests or when a sale
of securities “fails,” resulting in an unanticipated cash shortfall) (the “Inter-Fund
Program”). The closed-end Nuveen funds, including the
Fund covered by this shareholder report, will participate only as lenders, and not as
borrowers, in the Inter-Fund Program because such closed-end
funds rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund
Program is subject to a number of conditions, including,
among other things, the requirements that (1) no fund may borrow or lend money through
the Inter-Fund Program unless it receives a more favorable
interest rate than is typically available from a bank or other financial institution for a
comparable transaction; (2) no fund may borrow on an
unsecured basis through the Inter- Fund Program unless the fund’s outstanding borrowings
from all sources immediately after the inter-fund borrowing
total 10% or less of its total assets; provided that if the borrowing fund has a secured
borrowing outstanding from any other lender, including but
not limited to another fund, the inter-fund loan must be secured on at least an equal
priority basis with at least an equivalent percentage of
collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after an
inter-fund borrowing would be greater than 10% of its total
assets, the fund may borrow through the inter-fund loan on a secured basis only; (4)
no fund may lend money if the loan would cause its aggregate
outstanding loans through the Inter-Fund Program to exceed 15% of its net assets
at the time of the loan; (5) a fund’s inter-fund loans
to any one fund shall not exceed 5% of the lending fund’s net assets; (6) the duration of
inter-
fund loans will be limited to the time required to
receive payment for securities sold, but in no event more than seven days; and (7) each inter-fund
loan may be called on one business day’s notice by a
lending fund and may be repaid on any day by a borrowing fund. In addition, a Nuveen fund
may participate in the Inter-Fund Program only if and to the
extent that such participation is consistent with the fund’s investment objective and
investment policies. The Board is responsible for overseeing
the Inter-Fund
Program.
Fund
Counterparty
Rate
Principal
Amount
Maturity
Value
Value
and Accrued
Interest
NBB
RBC Capital Markets,
LLC
4.88%
$
(123,000,000)
10/02/25
$
(123,000,000)
$
(123,483,527)
NBB
TD
Securities (USA),
LLC
4.99%
(43,000,000)
10/15/25
(43,000,000)
(43,464,973)
NBB
Wells Fargo Securities,
LLC
4.79%
(30,950,000)
11/07/25
(30,950,000)
(31,160,496)
Total
$(196,950,000)
$(196,950,000)
$(198,108,996)
Fund
Utilization
Period
(Days
Outstanding)
Average
Daily
Balance
Outstanding
Average
Annual
Interest
Rate
NBB
183
$
(196,950,000
)
4.99
%
Fund
Counterparty
Reverse
Repurchase
Agreements*
Collateral
Pledged
to
Counterparty
NBB
RBC Capital Markets,
LLC
$
(123,483,527)
$
144,748,514
NBB
TD
Securities (USA),
LLC
(43,464,973)
52,540,786
NBB
Wells
Fargo Securities,
LLC
(31,160,496)
40,637,382
Total
$
(198,108,996)
$
237,926,682
*
Represents gross value and accrued interest for the counterparty as reported in the preceding table.
34
Notes to Financial Statements
(continued)
The limitations detailed above and the other conditions of the SEC
exemptive order permitting the Inter-Fund Program are designed to minimize
the risks associated with Inter-Fund Program for both the lending
fund and the borrowing fund. However, no borrowing or lending activity is without
risk. When a fund borrows money from another fund, there is a
risk that the loan could be called on one day’s notice or not renewed, in which case
the fund may have to borrow from a bank at a higher rate or take
other actions to payoff such loan if an inter-fund loan is not available from another
fund. Any delay in repayment to a lending fund could result in a
lost investment opportunity or additional borrowing costs.
During
the current fiscal period, the Fund did not enter into any inter-fund loan activity.
Shareholder Meeting Report
35
(Unaudited)
The
annual meeting of shareholders for NBB was held on August 14, 2025; at this meeting the shareholders were asked to elect Board
Members.
The vote totals for NBB are set forth
below:
NBB
Common
Shares
Approval
of the Board Members was reached as follows:
Michael A.
Forrester
For
20,366,047
Withhold
400,698
Total
20,766,745
Thomas J.
Kenny
For
20,370,291
Withhold
396,454
Total
20,766,745
Margaret L.
Wolff
For
20,385,688
Withhold
381,057
Total
20,766,745
Robert L.
Young
For
20,363,460
Withhold
403,285
Total
20,766,745
36
Additional Fund Information
(U
naudited)
Portfolio of Investments Information
The Fund is required to file its complete schedule of
portfolio holdings with the
Securities and Exchange Commission
(SEC) for the first and third quarters of each fiscal year as an exhibit to its report
on Form N-PORT. You may obtain this information on the
SEC’s website at http://www.sec.gov.
Nuveen
Funds’ Proxy Voting Information
You may obtain (i)
information regarding how each fund voted proxies
relating to
portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon
request, by calling Nuveen toll-free at (800) 257-8787 or on
Nuveen’s website at www.nuveen.com and (ii) a description
of the policies and procedures that each fund used to
determine how to vote proxies relating to portfolio securities
without charge, upon request, by calling Nuveen toll-free at
(800) 257-8787. You may also obtain this information
directly
from the SEC. Visit the SEC on-line at
http://www.sec.gov.
CEO Certification
Disclosure
The Fund’s Chief Executive Officer
(CEO) has submitted to the New York Stock
Exchange (NYSE) the
annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
The Fund has filed with the SEC the certification of its CEO
and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley
Act.
Common Share Repurchases
The Fund intends to repurchase, through its open-market
share repurchase program,
shares of its own common stock at
such times and in such amounts as is deemed advisable. During the period covered
by this report, the Fund repurchased shares of its common
stock as shown in the accompanying table. Any future
repurchases will be reported to shareholders in the next
annual or semi-annual report.
FINRA BrokerCheck:
The Financial Industry Regulatory Authority (FINRA)
provides information regarding the
disciplinary history of
FINRA member firms and associated investment professionals. This information as well as an
investor brochure describing FINRA BrokerCheck is available
to the public by calling the FINRA BrokerCheck Hotline
number at (800) 289-9999 or by visiting
www.FINRA.org.
Board of
Trustees
Joseph A. Boateng
Michael A. Forrester
Thomas J.
Kenny
Amy B.R.
Lancellotta
Joanne T.
Medero
Albin F.
Moschner
John K.
Nelson
Loren M.
Starr
Matthew Thornton
III
Terence J.
Toth
Margaret L.
Wolff
Robert L.
Young
Investment
Adviser
Nuveen Fund Advisors,
LLC
333 West Wacker
Drive
Chicago, IL
60606
Custodian
State
Street Bank
& Trust
Company
One Congress
Street
Suite
1
Boston, MA
02114-2016
Legal
Counsel
Chapman and Cutler
LLP
Chicago,
IL 60606
Independent Registered
Public Accounting
Firm
PricewaterhouseCoopers
LLP
One North Wacker
Drive
Chicago, IL
60606
Transfer Agent
and
Shareholder
Services
Computershare Trust Company,
N.A.
150 Royall
Street
Canton, MA
02021
(800)
257-8787
NBB
Common
shares repurchased
0
Glossary of Terms Used in this Report
37
(U
naudited)
Average Annual Total
Return
: This is a commonly used method to express an investment’s
performance over a particular, usually
multi-year time period. It expresses
the return that would have been necessary each year to equal the investment’s actual cumulative
performance (including change in NAV or offer price and reinvested dividends
and capital gains distributions, if any) over the time
period being
considered.
Effective Leverage:
Effective leverage is a fund’s effective economic leverage, and
includes both regulatory leverage (see
leverage) and the leverage effects of
certain derivative investments in a fund’s portfolio. Currently, the leverage effects of Tender
Option Bond (TOB) inverse floater holdings are included in effective leverage
values, in addition to any regulatory leverage.
Inverse Floating Rate
Securities:
Inverse floating rate securities are the residual interest in
a tender option bond (TOB) trust,
sometimes referred to as “inverse
floaters”, are created by depositing a municipal bond, typically with a fixed interest rate, into
a special purpose trust. This trust, in turn, (a)issues floating rate
certificates typically paying short-term tax-exempt interest rates
to third
parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an “inverse
floater”) to an investor (such as a fund) interested in gaining investment
exposure to a long-term municipal bond. The income received by the holder of
the inverse floater varies inversely with the short-
term rate paid to the
floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially
all of the underlying bond’s downside investment risk. The holder of
the inverse floater typically also benefits disproportionately
from any
potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the
underlying bond on a leveraged
basis.
Leverage:
Leverage is created whenever a fund has investment exposure (both reward
and/or risk) equivalent to more than 100%
of the investment
capital.
Net Asset Value (NAV) Per
Share:
A fund’s Net Assets is equal to its total assets
(securities, cash, accrued earnings and
receivables) less its total
liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares
outstanding.
Pre-Refunded
Bond/Pre-Refunding
: Pre-Refunded Bond/Pre-Refunding, also known as
advanced refundings or refinancings,
is a procedure used by state and local
governments to refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on
the
higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its
value.
Regulatory Leverage:
Regulatory leverage consists of preferred shares issued by or
borrowings of a fund. Both of these are part
of a fund’s capital
structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of
1940.
Tax Obligation/General
Bonds:
Bonds backed by the general revenues of an issuer, including
taxes, where the issuer has the
ability to increase taxes by an unlimited
amount to pay the bonds back.
Tax Obligation/Limited Bonds:
Bonds backed by the general revenues of an issuer, including taxes,
where the issuer doesn’t
have the ability to increase taxes by an
unlimited amount to pay the bonds
back
.
Total
Investment Exposure:
Total investment exposure is a fund’s assets
managed by the Adviser that are attributable to financial
leverage. For
these purposes, financial leverage includes a fund’s use of preferred stock and borrowings and investments in the
residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of
assets held by a TOB trust that has been effectively financed by the
trust’s issuance of floating rate securities.
38
Statement Regarding Basis for Approval of
Investment Advisory Contract
(U
naudited)
Nuveen Taxable Municipal Income
Fund
The Approval
Process
At meetings held on April 28 and 29, 2025 (the
“Meeting”), the Boards of Directors or Trustees (as the case may be) of the group of funds advised
by Nuveen Fund Advisors, LLC (“NFAL” or the
“Adviser”), including Nuveen Taxable Municipal Income Fund (the “Fund”), and the group of
funds advised by Teachers Advisors, LLC (“TAL”
and all such funds, collectively, the “Nuveen funds” or the “funds”) approved the renewal of the
investment management agreements (each, an “Investment
Management Agreement”) with NFAL and TAL, respectively. TAL and NFAL are affiliates
as NFAL is a subsidiary of Nuveen, LLC, the investment arm of
Teachers Insurance and Annuity Association of America (“TIAA”), and TAL is an
indirect wholly owned subsidiary of TIAA. The Board of
Trustees of the Fund also approved the renewal of the sub-advisory agreement (the
“Sub-
Advisory Agreement”) with Nuveen Asset
Management, LLC (the “Sub-Adviser”). The Sub-Adviser is also an affiliate of the
Adviser.
The Boards of Directors or Trustees of the Nuveen
funds are each a “Board” or collectively the “Board” (as the context may dictate) and the directors
or trustees (as the case may be) are each a “Board
Member.” The Board Members of each Board are not “interested persons” (as defined under
the Investment Company Act of 1940 (the “1940
Act”)) and, therefore, each Board is deemed to be comprised of all disinterested Board Members.
References to a Board and the Board Members are
interchangeable.
In accordance with applicable law, following
up to an initial two-year period, the Board of each fund considers the renewal of each investment
management agreement and sub-advisory agreement on behalf of
the fund on an annual basis. The Fund’s Investment Management Agreement
and Sub-Advisory Agreement are collectively referred to as
the “Advisory Agreements,” and the Adviser and the Sub-Adviser are collectively the
“Fund Advisers” and each a “Fund
Adviser.” Below is a summary of the annual review process the Board undertook related to its most recent
renewal of the Advisory Agreements with respect to the
Fund.
To reach their determination, the Board Members
considered the review of the Advisory Agreements to be an ongoing process. The Board
Members employed the accumulated information, knowledge and
experience they had gained during their tenure as disinterested Board Members
on the respective Board of the Nuveen funds and its
committees in overseeing the applicable funds and working with the respective investment
advisers and sub-advisers in their review of the advisory
agreements for the fund complex. The Board and/or its committees meet regularly
throughout the year and at these meetings, the Board Members
received materials and discussed information covering a wide range of topics
pertinent to the annual consideration of the renewal of the
Advisory Agreements. Such topics include, but are not limited to, the investment
performance of the funds over various periods; investment
oversight matters; economic, market and regulatory developments; any significant
organizational or other developments impacting a Fund Adviser
and its strategic plans for its business; product initiatives for various funds; fund
expenses; compliance, regulatory and risk management matters;
trading practices, including soft dollar arrangements and reimbursements to
the funds; the derivatives risk management program;
management of distributions; valuation of securities; payments to financial intermediaries;
securities lending (as applicable); and closed-end fund
market activity, capital management initiatives, institutional ownership, management of
leverage financing, the secondary market trading of the
closed-end funds and any actions taken to address market discounts to net asset value.
The Board also seeks to meet at its regular quarterly
meetings with members of senior management to discuss various topics, including market
conditions, industry developments and any significant
developments or strategic plans for the Fund Advisers, if
any.
To help with the review of performance, the Board and/or
its committees periodically received and discussed presentations from member(s) of
investment teams throughout the year, culminating in an
annual performance review of the Nuveen funds at the Board’s meeting held on February
25-26, 2025 (the “February Meeting”). The
presentations, discussions and meetings during the year provide a means for the Board Members to
evaluate and consider the level, breadth and quality of
services provided by the Fund Advisers and any changes to such services over time in light of
new or modified regulatory requirements, changes to market
conditions or other factors.
In addition to the materials and
discussions that occurred at prior meetings, the Board, through its independent legal counsel, requested and
received extensive materials and information prepared
specifically for its review of the Advisory Agreements. During the year, management worked
with an ad hoc committee established by the Board to help
enhance and streamline the materials provided in connection with the annual review of
the Advisory Agreements. The materials provided at the
Meeting and/or prior meetings covered a wide range of matters including, but not limited
to, a description of the nature, extent and quality of
services provided by the Fund Advisers; a review of the Sub-Adviser and applicable investment
team; an analysis of fund performance with a focus on funds
considered to have met certain challenged performance measurements; an analysis of
the fees and expense ratios of the Nuveen funds with a focus
on funds considered to have certain expense characteristics; a list of management fee
and sub-advisory fee schedules; an analysis of advisory fees
compared to fees assessed to other types of clients; a description of portfolio manager
compensation; certain profitability and/or financial data;
and a description of indirect benefits received by the Fund Advisers as a result of their
relationships with the Nuveen funds. The Board also
considered information provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an
independent provider of investment company data, comparing
fee and expense levels of the Fund to those of a peer universe.
The information prepared specifically for the annual review
supplemented the information provided to the Board and its committees and the
evaluations of the Nuveen funds by the Board and its
committees during the year. The Board’s review of the Advisory Agreements is based on all
the information provided to the Board and its committees
over time. The performance, fee and expense data and other information provided by a
Fund Adviser, Broadridge or other service providers were not
independently verified by the Board Members.
39
As part of their review, the Board Members and independent legal counsel
met in executive session on April 9, 2025 to review and discuss materials
provided in connection with their annual review of the Advisory
Agreements. After reviewing this information, the Board Members requested,
directly or through independent legal counsel, additional
information, and the Board subsequently reviewed and discussed the responses to these
follow-up questions and requests. The Board Members and
independent legal counsel met again in executive session on April 17, 2025 (together
with the April 9, 2025 executive session, the “Executive
Sessions”) to discuss the responses to the initial supplemental information request and,
following their review of the data provided, requested management
present certain additional information at the Meeting. In addition to the
Executive Sessions, the Board Members met in additional
executive sessions prior to and during the Meeting. During the Meeting, the Board
Members considered the responses, invited representatives of
management to provide additional information and determined that the information
provided (whether oral or written) was responsive to their
requests.
The Board Members were advised by independent legal
counsel during the annual review process as well as throughout the year, including meeting
in executive sessions with such counsel at which no
representatives of management were present. In connection with their annual review, the Board
Members also received a memorandum from independent legal
counsel outlining their fiduciary duties and legal standards in reviewing the Advisory
Agreements, including guidance from court cases evaluating
advisory fees.
After the discussions and with the background and
knowledge described above, the Board Members approved the continuation of the Advisory
Agreements on behalf of the Fund for an additional one-year
period. The Board did not identify any single factor as all-important or controlling,
but rather each decision reflected the comprehensive
consideration of all the information (written or oral) provided to the Board and its committees
throughout the year as well as the materials prepared
specifically in connection with the annual review process. The contractual arrangements
may reflect the results of prior year(s) of review, negotiation
and information provided in connection with the Board’s annual review of the Fund’s
advisory arrangements and oversight of the Fund. Each Board
Member may have attributed different levels of importance to the various factors and
information considered in connection with the annual review
process and may have placed different emphasis on the relevant information year to
year
in light of, among other things, changing market and economic conditions. A summary of the principal factors and information, but not all the
factors, the Board considered in deciding to renew the Advisory
Agreements is set forth below.
A. Nature, Extent and Quality
of Services
In evaluating the renewal of the Advisory Agreements,
the Board Members received and considered information regarding the nature, extent and
quality of the Fund Advisers’ services provided to the
Fund. With this approach, they considered the roles of the Adviser and the Sub-Adviser in
providing services to the Fund.
The Board considered that the Adviser provides a wide array of
management, oversight and other services to manage and operate the Fund. The
Board considered the Adviser and its affiliates’
dedication of resources, time, people and capital as well as consistent program of improvement
and innovation aimed at keeping the Nuveen fund complex relevant
and attractive for existing and new investors and meeting the needs of an
increasingly complex regulatory environment. Among the
information provided in connection with the review of services at the Meeting and/or prior
meetings, the Board considered a description of the
organizational changes at the Adviser during the year, the management teams that comprise
the various support and investment functions for the funds and
the background of certain personnel who support the funds. The Board considered
the significant resources, both financial and personnel, the
Adviser and its affiliates had committed over the past several years in working to bring the
asset management businesses of Nuveen and TIAA under one
centralized umbrella and to consolidate their respective fund families to the benefit
of the funds through, among other things, enhanced operating
efficiencies, centralized investment leadership and a centralized shared resources
and support model. To help ensure the continuation of services,
the Board considered, among other things, management’s emphasis on succession
planning and key person risk evaluation pursuant to which
certain management team(s) meet annually to conduct a comprehensive review of
successors to key positions, to develop and monitor
corporate-wide standards and procedures in seeking to help ensure the firm may continue to
operate in the event of business disruptions, and to review
staffing and compensation levels to help remain competitive with peers in the industry.
The Board considered a description of the application of
business continuity plans and the periodic testing and review of such plans. As noted
below, the Board also considered certain financial data of the
Adviser and TIAA in assessing the financial stability and condition of the Adviser to
provide a high level of quality of services to the Fund.
In its review, the Board considered that the Fund operated in a
highly regulated industry and the scope and complexity of the services and resources
that the Adviser and its affiliates must provide to manage and
operate the Fund have expanded over the years due to regulatory, market and
other developments. Such services included maintaining and
monitoring the Nuveen funds’ compliance programs, risk management programs,
liquidity risk management programs, derivatives risk management
programs and cybersecurity programs. The Board and/or its Compliance,
Risk Management and Regulatory Oversight Committee received
reports regarding the funds’ compliance policies and procedures and matters
undertaken thereunder as well as other compliance initiatives on
a regular basis.
In considering the breadth and quality of
services the Adviser and its various teams provide, the Board considered that the Adviser provides
investment advisory services. The Fund utilizes the Sub-Adviser
to manage the Fund’s portfolio subject to the supervision of the Adviser.
Accordingly, the Board considered that the Adviser and its
affiliates, among other things, oversee and review the performance of the Sub-Adviser
and its investment team(s); evaluate Fund performance and
market conditions; evaluate investment strategies and recommend changes thereto;
oversee trade execution and, as applicable, securities lending;
evaluate investment risks; and manage valuation matters. As noted below, the Board
also considered the Nuveen funds’ performance over
various time periods throughout the year.
In addition to the
portfolio management services provided to the Fund (including indirectly by overseeing the Sub-Adviser), the Board considered
the extensive compliance, regulatory, administrative and other
services the Adviser and its various teams or affiliates provide to manage and
operate
the applicable funds, including but not limited to: distribution management services pursuant to which management seeks to implement
distribution policies and set distribution levels consistent
with each fund’s product design and positioning; compliance services including establishing
and maintaining broad-based compliance policies across the
Nuveen fund complex, evaluating the compliance programs of various fund services
providers, conducting ongoing risk assessments and testing,
monitoring portfolio compliance with investment and regulatory requirements and
40
Statement Regarding Basis for Approval of Investment Advisory Contract
(continued)
providing a comprehensive compliance training program; providing
regulatory advocacy services, including submitting comments on regulatory
proposals and monitoring regulatory developments that may impact
the fund(s); providing support to the Board and its committees throughout the
year, including providing reports on a wide range of topics
relating to the operations and management of the funds, helping to refine the materials
provided to the Board and/or its committees and providing
educational sessions on various topics; establishing and reviewing the services provided
by other fund service providers (such as a fund’s
custodian, accountant, and transfer agent); providing legal support services; and evaluating trade
allocation and
execution.
Such services also include managing leverage;
providing capital management and secondary market services (such as implementing common share
shelf offerings, capital return programs and common share
repurchases); and maintaining a closed-end fund investor relations program. The Board
considered that management actively monitors any discount from
net asset value per share at which a fund’s common stock trades and evaluates
potential avenues to mitigate the discount, including evaluating the level of
distributions that the fund pays.
Aside from the services
provided, the Board considered the financial resources of the Adviser and/or its affiliates and their willingness to make
investments to support the funds. The Board considered the
funds’ access to a seed capital budget provided by the Adviser and/or its affiliates to
support new or existing funds and/or facilitate changes for a
respective fund. The Board considered the benefits to shareholders of investing in the
Fund that is a part of a large fund complex with a variety of
investment disciplines, capabilities, and expertise. The Board considered the overall
reputation and capabilities of the Adviser and its affiliates
and the Adviser’s continuing commitment to provide high quality services.
In its review, the Board also considered the significant risks
borne by the Adviser and its affiliates in connection with their services to the Nuveen
funds, including entrepreneurial risks in sponsoring and
supporting new funds and smaller funds and ongoing risks with managing the Fund, such as
investment, operational, reputational, regulatory, compliance
and litigation risks.
The Board considered the division of
responsibilities between the Adviser and the Sub-Adviser and considered that the Sub-Adviser and its
investment personnel, as noted, generally are responsible for
the management of the Fund’s portfolio under the oversight of the Adviser and the
Board. The Board considered an analysis of the Sub-Adviser
provided by the Adviser which included, among other things, a summary of changes
(if
any) in the leadership teams and/or portfolio manager teams; the performance of the funds sub-advised by the Sub-Adviser over various periods
of time that met certain performance screening measurements; and
data reflecting product changes (if any) taken with respect to certain funds. The
Board considered that the Adviser recommended the renewal of the
Sub-Advisory Agreement.
Based on its review, the Board
determined, in the exercise of its reasonable business judgment, that it was satisfied with the nature, extent and
quality of services provided to the Fund under each Advisory
Agreement.
B. The Investment Performance of the Fund and Fund
Advisers
In evaluating the quality of the services provided by
the Fund Advisers, the Board also considered a variety of investment performance data of the
Fund. In leading up to the annual review, the Board and/or its
Investment Committee considered, among other things, Fund performance (based
on net asset value net of fees) over the quarter, one-, three-
and five-year periods ending December 31, 2024 on an absolute basis and as compared
to the performance of comparable peers (the “Performance
Peer Group”) and to a benchmark for the prescribed periods. Prior to the Meeting, the
Board also received updated Fund performance over the quarter,
one-, three- and five-year periods ended March 31, 2025 on an absolute basis
and in comparison to the Performance Peer Group and a benchmark
for the prescribed periods. In its review of relative performance, the Board
considered the Fund’s performance relative to its
Performance Peer Group, among other things, by evaluating its quartile ranking with the 1st
quartile representing the top performing funds within the
Performance Peer Group and the 4th quartile representing the lowest performing
funds.
The Board took into account the performance data,
presentations and discussions (written and oral) that were provided at the Meeting and in prior
meetings over time in evaluating fund performance, including
particular focus on management’s analysis of the performance of funds that met
certain screening measurements as determined pursuant to a
methodology approved by the Board or additional measurements as determined by
management’s investment analysts. As various Nuveen funds
have modified their portfolio teams and/or made significant changes to their portfolio
strategies over time, the Board reviewed, among other things,
certain tracking performance data over specific periods comparing performance
before and after such
changes.
In evaluating performance, the Board considered some of
the limitations of the performance data. The Board considered, among other things, that
performance data reflects performance over a specified period
which may differ significantly depending on the ending dates selected, particularly
during periods of market volatility. Further, the Board
considered that regardless of the performance period reviewed by the Board, shareholders
may evaluate performance based on their own respective holding
periods which may differ from the performance periods reviewed by the Board
and lead to differing results. With respect to comparative
performance, the Board considered that differing investment objectives, investment
strategies, dates of inception, type and cost of leverage (if
any), asset size and other factors between the Performance Peer Group and the Fund
necessarily lead to differences in performance results.
Similarly, differences in the investment objective(s) and strategies of the Fund and its
benchmark (particularly an actively managed fund that does not
directly follow an index) as well as the costs of operating the Fund would contribute
to differences in performance results. To assist the Board in
its review of the comparability of the relative performance, management generally has
ranked the relevancy of the Performance Peer Groups to the
applicable funds (subject to certain exceptions) as low, medium or high.
The Board also considered that secondary market trading of
shares of the closed-end funds also continues to be a priority for the Board given its
importance to shareholders, and therefore, the Board and/or its
Closed-End Fund Committee reviews certain performance data reflecting, among
other things, the premiums and discounts at which the shares of
the closed-end funds have traded as of specified dates at their quarterly meetings
with an annual review of the closed-end fund market for the
2024 calendar year at its February Meeting. In its review, the Board considered,
among
other things, market conditions for closed-end funds, changes to investment mandates and guidelines, distribution policies, and leverage
41
management; additional share offerings, share repurchases (if any) and
similar capital market actions; and effective communications programs to
build greater awareness and deepen understanding of closed-end
funds. As applicable, the Board considered, among other things, the impact of
leverage on a closed-end fund’s common share earnings and
total return.
The Board evaluated performance in light of various
relevant factors which may include, among other things, general market conditions,
issuer-
specific information,
asset class information, leverage and fund cash flows. The Board considered that long-term performance could be impacted
by even one period of significant outperformance or
underperformance and that a single investment theme could disproportionately affect
performance. Further, the Board considered that market and
economic conditions may significantly impact Fund performance, particularly over
shorter periods, and such performance may be more reflective of
such economic or market events and not necessarily reflective of management skill.
Although the Board reviews short-, intermediate- and longer-term
performance data, the Board considered that longer periods of performance may
reflect full market cycles.
In their review from year to year, the Board Members consider
and may place different emphasis on the relevant information in light of changing
circumstances in market and economic conditions. In evaluating
performance, the Board focused particular attention on funds with less favorable
performance records. However, depending on the facts and
circumstances, including any differences between the respective fund and its
benchmark and/or Performance Peer Group, the Board may be
satisfied with a fund’s performance notwithstanding that its performance may be
below that of its benchmark and/or peer group for certain
periods. With respect to any funds for which the Board has identified performance issues,
the Board seeks to monitor such funds more closely until
performance improves, discuss with the Adviser the reasons for such results, consider
whether any steps are necessary or appropriate to address such
issues, discuss and evaluate the potential consequences of such steps and review
the results of any steps
undertaken.
With regard to the performance determinations, the
Board considered that although the Fund ranked in the fourth quartile of its Performance Peer
Group for the one-, three- and five-year periods ended December
31, 2024, the Fund outperformed its benchmark for such periods. In its review,
the Board considered that the Performance Peer Group was
classified as low for relevancy. On the basis of the Board’s ongoing review of investment
performance and all relevant factors, including the relative
market conditions during certain reporting periods, the Fund’s investment objective(s) and
management’s discussion of performance, the Board
concluded that the Fund’s performance supported renewal of the Advisory
Agreements.
C. Fees, Expenses and
Profitability
1. Fees and
Expenses
As part of the annual review, the Board Members
considered, among other things, the management fee schedule for the Fund. In addition
to the management fee arrangement, the Board Members
considered the Fund’s operating expense ratio as it more directly reflected a
shareholder’s total costs in investing in the Fund.
In its review, the Board considered that the Fund’s
management fee was comprised of two components, a fund-level component and a
complex-level component, each with its own breakpoint
schedule, subject to certain exceptions. The Board considered that in 2024, the
Board approved a revised complex-wide breakpoint schedule
which simplified and reduced the complex-level fee rates at various thresholds
and expanded the eligible funds whose assets would be included
in calculating the complex-level fee, effective May 1, 2024. The Board
considered that the complex-level component is intended to be
an efficient mechanism designed to help share cost efficiencies with
shareholders as the complex-wide assets
grow.
The Board also considered comparative fee and expense
information prepared by an independent third-party provider of fund data. More
specifically, the Board
Members generally reviewed, among other things, the Fund’s management fee rates and net total expense ratio
in relation to similar data for a comparable universe of peers
(the “Expense Universe”). In their review, the Board Members considered,
in particular, each fund with a net total expense ratio (based
on common assets and excluding investment-related costs such as the costs
of leverage and taxes) meeting certain expense screening
criteria adopted by the Board when compared to its Expense Universe and
management’s commentary as to the factors contributing
to each such fund’s relative net total expense ratio. The Board also considered,
in relevant part, a fund’s management fee in light of
its performance history with particular focus on any fund identified as having a higher
management fee and/or expense ratio compared to peers coupled
with experiencing a period of challenged performance.
In their
review, the Board Members considered the methodology Broadridge employed to establish its Expense Universe. The Board further
considered that differences between the Fund and its Expense
Universe, as well as changes to the composition of the Expense Universe
from year to year, may limit some of the value of the
comparative data. The Board Members also considered that it can be difficult to
compare management fees among funds with peers as there are
variations in the services that are included for the fees paid. The Board
Members took these limitations and differences into account
when reviewing comparative peer data.
In addition, although
the Board reviewed net total expense ratio both including and excluding investment-related expenses (e.g., leverage
costs), as applicable, the Board considered that leverage
expenses will vary across funds and peers because of differences in the forms
and terms of leverage employed by the respective fund and
therefore generally considered each closed-end fund’s net total expense
ratio and fees excluding investment-related costs and taxes.
The Board also considered that the use of leverage may create a conflict of
interest for the respective Adviser and Sub-Adviser given the
increase of assets from leverage upon which an advisory or sub-advisory fee
is based but also considered the impact of leverage on the
fund’s return. The Board Members considered, however, that the Adviser and
Sub-Adviser would seek to manage the potential conflict by
recommending to the Board to leverage the applicable fund or increase such
leverage when the respective Fund Adviser has determined that
such action would be in the best interests of the respective fund and its
common shareholders and by periodically reviewing with the
Board the fund’s performance and the impact of the use of leverage on that
performance.
42
Statement Regarding Basis for Approval of Investment Advisory Contract
(continued)
With respect to the Sub-Adviser, the Board also considered, among other
things, the sub-advisory fee schedule paid to the Sub-Adviser in
light of the sub-advisory services provided to the Fund. In its
review, the Board considered that the compensation paid to the Sub-Adviser
is the responsibility of the Adviser, not the
Fund.
With respect to the comparative fee data for the Fund, the
Board considered that the Fund’s contractual management fee rate and net total
expense ratio were each below the Expense Universe median, and
the Fund’s actual management fee rate was slightly above (within 5 basis
points) the Expense Universe
median.
Based on its review of the information provided, the
Board determined that the Fund’s management fee to a Fund Adviser was reasonable
in light of the nature, extent and quality of services
provided to the Fund.
2. Comparisons with the Fees of Other
Clients
In evaluating the appropriateness of fees, the Board
also considered that the Adviser, the Sub-Adviser and/or their affiliate(s) provide
investment management services to other types of clients which
may include, among others: separately managed accounts (“SMAs”), retail
managed accounts, foreign funds (UCITS), other investment
companies (as sub-advisers), limited partnerships and collective investment
trusts. The Board considered certain fee data for these other
types of clients managed in a similar manner to certain of the funds compared
to the management fee of the applicable fund. The Board
considered a description of various factors which contribute to the differences
in the management fee rates of the funds compared to those
charged to these other types of clients which limited the comparability of the
data. In this regard, the Board considered that the
differences in, among other things, the breadth of services provided by the Adviser and
its affiliates to the funds compared to those provided to
other clients; the expenses the Adviser and its affiliates incur in launching, operating
and supporting a fund; the support services provided to
shareholders; the extensive regulatory, disclosure and governance requirements
applicable to funds; the establishment and maintenance of
servicing relationships with various service providers for the funds; the manner
of managing such assets; investment policies; investor
profiles; and account sizes all may contribute to the variations in relative fee rates.
Differences in the level of advisory services required for
passively managed funds also contribute to differences in the management fee
levels of such funds compared to actively managed funds. In
addition, differences in the client base; governing bodies, regulatory and
legal requirements; distribution; jurisdiction and operational
complexities also would contribute to variations in management fees assessed
the funds compared to foreign fund clients. Further,
differences in the level of advisory and non-advisory services required and risk
incurred when serving as a sub-adviser to other investment
companies compared to serving as the Adviser to a Nuveen fund contribute to
differences in the fees assessed. In this regard, the Board
further considered the significant entrepreneurial, legal and regulatory risks that
the Adviser incurs in sponsoring and managing the Fund. As a
general matter, higher fee levels reflect higher levels of service provided
by the Adviser, increased investment management complexity,
greater product management requirements, and higher levels of business
risk or some combination of these factors. The Board further
considered that the Sub-Adviser’s fee is essentially for portfolio management
services and therefore more comparable to the fees received
for retail wrap accounts and other external sub-advisory mandates. The Board
concluded that the varying levels of fees were reasonable
given the foregoing.
3. Profitability of the Fund
Advisers
In considering the costs of services to be provided
and profits to be realized by the Adviser (which encompassed the Sub-Adviser) from
its relationship with the Fund, the Board Members considered a
variety of estimated profitability data from various perspectives including,
among other things, (a) historical pre-distribution and
post-distribution margins over specified periods for the Adviser’s services to the
applicable funds; (b) certain profitability data on
behalf of the Adviser attributable to servicing all applicable funds for 2024 and 2023; (c)
certain profitability data of both the Adviser and TAL (as an
adviser of certain other Nuveen funds) on a combined basis derived from types
of funds in the aggregate (i.e., from closed-end funds,
exchange-traded funds, interval funds and open-end funds) for 2024 and 2023; and
(d) certain profitability data of both the Adviser and TAL on
a combined basis by asset grouping of Nuveen funds in the aggregate (i.e., from
equity, fund of funds, index, municipal bond and taxable fixed
income funds). In addition, the Board considered profitability data at the per
fund level for the respective
adviser.
In reviewing the profitability data, the Board Members
considered the subjective nature of calculating profitability as the information is
not audited and is necessarily dependent on cost allocation
methodologies to allocate expenses throughout the complex and among the
various advisory products. The Board reviewed, among other
things, a description of the cost allocation methodology employed to develop
the profitability data. However, the Board Members considered
that given there is no single universally recognized expense allocation
methodology, other reasonable and valid allocation
methodologies could be employed and could lead to significantly different profit and
loss results and therefore developing profitability data is
difficult, particularly on a per fund level.
Further, in
considering the comparative margin data with peers, the Board Members considered the limitations of the comparative data
given that peer data is not generally public and the
calculation of profitability is subjective and affected by numerous factors (such as types
of funds a peer manages, its business mix, its cost of
capital, the numerous assumptions underlying the methodology used to allocate
expenses and other factors) that can have a significant
impact on the results. Given that the peer profitability data may reflect the different
business mix of the respective peer firm, the Board also
considered the pre- and post-distribution margins of Nuveen, LLC for each of the
calendar years from 2020 through
2024.
Aside from the foregoing profitability data, the Board
also considered, among other things, the audited statutory-basis financial statements
of TIAA as of December 31, 2024 and 2023 and the related
statutory-basis statements of operations, of changes in capital and contingency
reserves and of cash flows for the years ended December 31,
2024, December 31, 2023 and December 31, 2022. The Board considered
the benefit of an investment adviser and its parent with
significant resources, particularly during periods of market volatility. The Board also
considered the investments the Adviser, its parent and/or
other affiliates made into their business.
43
In evaluating the reasonableness of the compensation, the Board Members
also considered the indirect benefits the Adviser or Sub-Adviser
received that were directly attributable to the management of
the applicable funds as discussed in further detail below. Based on its review,
the Board was satisfied that the Adviser’s (together with
the Sub-Adviser) level of profitability from its relationship with the Fund was not
unreasonable in light of the nature, extent and quality of
services provided.
D. Economies of Scale and Whether Fee Levels Reflect These
Economies of Scale
The Board considered whether there have been
economies of scale with respect to the management of the funds, whether these economies of
scale have been appropriately shared with the funds and whether
there is potential for realization of further economies of scale. Although the Board
considered that economies of scale are difficult to measure with
any precision and the rates at which certain expenses are incurred may not decline
with a rise in assets, the Board considered that there are a
variety of methods that may be employed to help share the benefits of economies of
scale, including, among other things, through the use of
breakpoints in the management fee schedule, the pricing of funds at scale at inception and
investments in the Adviser’s business which can enhance
the services provided to the funds for the fees paid. The Board considered such factors
applicable to the Fund’s advisory fee structure.
As noted above, the Board considered that the management fee of
the Adviser for the Fund was comprised of a fund-level component and a
complex-level component each with its own breakpoint schedule.
The Board also approved a revised complex-wide breakpoint schedule in 2024
which reduced the complex-level fee rates at various thresholds
and expanded the assets included when calculating the complex-level fee. With
this structure, the Board considered that the complex-level
breakpoint schedule was designed to deliver the benefits of economies of scale to
shareholders when the assets of the eligible participating funds
in the complex pass certain thresholds even if the assets of a particular fund are
unchanged or have declined, and the fund-level breakpoint
schedules were designed to share economies of scale with shareholders if the particular
fund grows. The Board reviewed the fund-level and complex-level
fee schedules.
Although closed-end funds may make additional
share offerings from time to time, the Board considered that closed-end funds have a more limited
ability to increase their assets to attain additional economies
of scale because the growth of their assets will occur primarily from the appreciation of
their investment portfolios.
The Board Members also considered the continued reinvestment in
Nuveen’s business to enhance its capabilities and services to the benefit of
its various clients. The Board considered that many of these
investments were not specific to individual Nuveen funds, but rather initiatives from
which the family of funds as a whole may benefit. The Board
further considered that the scope of the services of the Adviser and its affiliates have
expanded over time without raising advisory fees to the funds, and this was also a
means of sharing economies of scale with the funds and their
shareholders. The Board considered the Adviser’s and/or
its affiliates’ ongoing efforts to streamline the product line-up, among other things, to
create more scaled funds which may help improve both expense and
trading economies for participating funds.
Based on its review,
the Board was satisfied that the current fee arrangements together with the reinvestment in management’s business
appropriately shared any economies of scale with shareholders.
E. Indirect
Benefits
The Board Members received and considered information
regarding various indirect benefits the respective Fund Adviser or its affiliates may receive
as a result of their relationship with the funds. These benefits
included, among other things, economies of scale to the extent the Adviser or its
affiliates share investment
resources and/or personnel with other clients of the Adviser. Certain funds may also be used as investment options for
other products or businesses offered by the Adviser and/or its
affiliates, such as variable products, fund of funds and 529 education savings plans,
and the Adviser and/or affiliates of the Adviser may serve as
sub-adviser to various funds in which case all advisory and sub-advisory fees generated
by such funds stay within Nuveen.
Further, the funds may pay the Adviser and/or its affiliates for
other services, such as distribution. In this regard, the Board considered that an
affiliate of the Adviser
received compensation in 2024 for serving as an underwriter on shelf offerings of existing closed-end funds and reviewed the
amounts paid for such services in 2024 and
2023.
In addition, the Board Members considered that the Adviser
and Sub-Adviser (except as noted) may utilize soft dollar brokerage arrangements
attributable to the respective fund(s) to obtain research and
other services for any or all of their clients, although the Board Members also considered
with respect to the Nuveen funds advised by the Adviser,
reimbursements of such costs by the Adviser and/or the
Sub-Adviser.
The Adviser and its affiliates may also benefit from
the advisory relationships with the Nuveen funds to the extent this relationship results in potential
investors viewing the TIAA group of companies as a leading
retirement plan provider in the academic and nonprofit market and a single source
for all their financial service needs. The Adviser and/or its
affiliates may further benefit to the extent that they have pricing or other information
regarding vendors the funds utilize in establishing
arrangements with such vendors for other products.
Based on its
review, the Board concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Fund were
reasonable in light of the services
provided.
F. Other
Considerations
The Board Members did not identify any single
factor discussed previously as all-important or controlling. The Board Members concluded that the
terms of each Advisory Agreement were reasonable, that the
respective Fund Adviser’s fees were reasonable in light of the services provided to the
Fund and that the Advisory Agreements be renewed for an
additional one-year period.
Nuveen Securities, LLC, member FINRA and
SIPC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-B-0925P 4875773
Nuveen:
Serving
Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen to
provide dependable
investment solutions through continued adherence to proven, long-term investing
principles. Today,
we offer a range of high quality solutions designed to be integral components of
a well-diversified core
portfolio.
Focused
on meeting investor needs.
Nuveen is the investment manager of TIAA. We have grown into one of the
world’s premier global
asset managers, with specialist knowledge across all major asset
classes and particular strength
in solutions that provide income for investors and that draw on our
expertise in alternatives and
responsible investing. Nuveen is driven not only by the independent
investment processes across
the firm, but also the insights, risk management, analytics and other
tools and resources that a truly
world-class platform provides. As a global asset manager, our
mission is to work in partnership with
our clients to create solutions which help them secure their
financial future.
Find out how we can help
you.
To learn more about how the products and services of Nuveen may be able to help you meet your
financial goals, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information
provided carefully before you invest. Investors should
consider the investment objective and policies,
risk considerations, charges and expenses of any
investment carefully. Where applicable, be sure
to obtain a prospectus, which contains this and
other relevant information. To obtain a prospectus,
please contact your securities representative or
Nuveen, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest
or send money.
Learn more about Nuveen Funds at:
www.nuveen.com/closed-end-funds
NOT
FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
| Item 2. | Code of Ethics. |
Not applicable to this filing.
| Item 3. | Audit Committee Financial Expert. |
Not applicable to this filing.
| Item 4. | Principal Accountant Fees and Services. |
Not applicable to this filing.
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable to this filing.
| Item 6. | Investments. |
| (a) | Schedule of Investments is included as part of the Portfolio of Investments filed under Item 1 of this Form N-CSR. |
| (b) | Not applicable. |
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Not applicable to closed-end investment companies.
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
See Statement Regarding Basis for Approval of Investment Advisory Contract in Item 1.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to this filing.
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to this filing.
| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
| Item 15. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
| Item 16. | Controls and Procedures. |
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
| Item 18. | Recovery of Erroneously Awarded Compensation. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| Item 19. | Exhibits. |
| (a)(1) | Not applicable to this filing. |
| (a)(2) | Not applicable to this filing. |
| (a)(3) |
| (a)(4) | Not applicable. |
| (a)(5) | Not applicable. |
| (b) |
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.
Nuveen Taxable Municipal Income Fund
| Date: December 4, 2025 | By: | /s/ David J. Lamb | ||||
| David J. Lamb | ||||||
| Chief Administrative Officer |
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.
| Date: December 4, 2025 | By: | /s/ David J. Lamb | ||||
| David J. Lamb | ||||||
| Chief Administrative Officer | ||||||
| (principal executive officer) |
| Date: December 4, 2025 | By: | /s/ Marc Cardella | ||||
| Marc Cardella | ||||||
| Vice President and Controller | ||||||
| (principal financial officer) |