0001478888falseAggregate Amount Outstanding: Aggregate amount outstanding represents the liquidation preference as of the end of the relevant fiscal year and does not include any preferred shares noticed for redemption as noted on the Statement of Assets and Liabilities where applicable.Asset Coverage Per $1,000: Asset coverage per $1,000 is calculated by subtracting the Fund’s liabilities and indebtedness not represented by senior securities from the Fund’s total assets, dividing the result by the aggregate amount of the Fund’s senior securities representing indebtedness then outstanding (if applicable), plus the aggregate of the involuntary liquidation preference of the outstanding preferred shares, if applicable, and multiplying the result by 1,000.The maximum sales charge for offerings made at-the-market is 1.00%. If the Common Shares are sold to or through underwriters in an offering that is not made at-the-market, the applicable Prospectus Supplement will set forth any other applicable sales load and the estimated offering expenses. Fund shareholders will pay all offering expenses involved with an offering.You will be charged a $2.50 service charge and pay brokerage charges if you direct Computershare Inc. and Computershare Trust Company, N.A., as agent for the common shareholders, to sell your Common Shares held in a dividend reinvestment account.Stated as percentages of average net assets attributable to Common Shares for the fiscal year ended March 31, 2024.Interest and Other Related Expenses reflect actual expenses and fees for leverage incurred by the Fund for the fiscal year ended March 31, 2024. The types of leverage used by the Fund during the fiscal year ended March 31, 2024 are described in the Fund Leverage and the Notes to Financial Statements sections of this annual report. Actual Interest and Other Related Expenses incurred in the future may be higher or lower. If short-term market interest rates rise in the future, and if the Fund continues to maintain leverage, the cost of which is tied to short-term interest rates, the Fund’s interest expenses on its short-term borrowings can be expected to rise in tandem. The Fund’s use of leverage will increase the amount of management fees paid to the Fund’s adviser and sub-advisor(s).Other Expenses are based on estimated amounts for the current fiscal year. Expenses attributable to the Fund’s investments, if any, in other investment companies are currently estimated not to exceed 0.01%. 0001478888 2023-04-01 2024-03-31 0001478888 2024-03-31 0001478888 2023-03-31 0001478888 2016-03-31 0001478888 2015-03-31 0001478888 2022-03-31 0001478888 2021-03-31 0001478888 2020-03-31 0001478888 2019-03-31 0001478888 2018-03-31 0001478888 2017-03-31 0001478888 ntmif:CounterpartyRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:CybersecurityRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:InvestmentAndMarketRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:LegislationAndRegulatoryRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:RecentMarketConditionsMember 2023-04-01 2024-03-31 0001478888 ntmif:SwapTransactionsRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:IlliquidInvestmentsRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:IncomeRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:InflationRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:InsuranceRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:OtherInvestmentCompaniesRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:ReinvestmentRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:SpecialRisksRelatedToCertainMunicipalObligationsMember 2023-04-01 2024-03-31 0001478888 ntmif:DefaultedOrDistressedSecuritiesRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:DeflationRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:EconomicSectorRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:FinancialFuturesAndOptionsTransactionsRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:HedgingRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:ReverseRepurchaseAgreementRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:DurationRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:BelowInvestmentGradeRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:BuildAmericaBondsBABsRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:CallRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:CreditRisksMember 2023-04-01 2024-03-31 0001478888 ntmif:CreditSpreadRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:DerivativesRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:EconomicAndPoliticalEventsRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:FundTaxRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:GlobalEconomicRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:LeverageRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:MarketDiscountFromNetAssetValueMember 2023-04-01 2024-03-31 0001478888 ntmif:ZeroCouponBondsRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:AntitakeoverProvisionsMember 2023-04-01 2024-03-31 0001478888 ntmif:InterestRateRisksMember 2023-04-01 2024-03-31 0001478888 ntmif:InverseFloatingRateSecuritiesRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:MunicipalSecuritiesMarketLiquidityRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:MunicipalSecuritiesMarketRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:UnratedSecuritiesRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:ValuationRiskMember 2023-04-01 2024-03-31 0001478888 ntmif:CommonSharesMember 2023-04-01 2024-03-31 0001478888 ntmif:InterestAndOtherRelatedExpensesMember 2023-04-01 2024-03-31 0001478888 ntmif:CommonSharesMember 2024-03-31 0001478888 ntmif:CommonSharesMember 2024-01-01 2024-03-31 0001478888 ntmif:CommonSharesMember 2023-10-01 2023-12-31 0001478888 ntmif:CommonSharesMember 2023-07-01 2023-09-30 0001478888 ntmif:CommonSharesMember 2023-04-01 2023-06-30 0001478888 ntmif:CommonSharesMember 2023-01-01 2023-03-31 0001478888 ntmif:CommonSharesMember 2022-10-01 2022-12-31 0001478888 ntmif:CommonSharesMember 2022-07-01 2022-09-30 0001478888 ntmif:CommonSharesMember 2022-04-01 2022-06-30 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares
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, IL 60606
 
(Address of principal executive offices) (Zip code)
Mark L. Winget
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
 
(Name and address of agent for service)
 
Registrant’s telephone number, including area code:    (312)
917-7700
 
Date of fiscal year end:    March 31
 
Date of reporting period:    March 31, 2024
Form
N-CSR
is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule
30e-1
under the Investment Company Act of 1940 (17 CFR
270.30e-1).
The Commission may use the information provided on Form
N-CSR
in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR,
and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form
N-CSR
unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1.
REPORTS TO STOCKHOLDERS.

LOGO   
Closed-End Funds 
      
March 31, 2024   
             
    
  
        
Nuveen Municipal
Closed-End
Funds
 
   
Nuveen Taxable Municipal Income Fund
  
NBB
 
Annual
Report

Table
of Contents
 
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     4  
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     7  
     9  
     10  
     13  
     14  
     24  
     25  
     26  
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     28  
     30  
     41  
     59  
     60  
     61  
     63  
 
2

Important Notices
Portfolio Manager Update
Effective April 10, 2023, Kristen DeJong was added as a portfolio manager to the Fund . Effective May 31, 2023, John Miller no longer serves as a portfolio manager of the Fund. There were no other changes to the portfolio management of the Fund during the reporting period.
Management Fees
As of May 1, 2024, the Fund’s overall complex-level fee begins at a maximum rate of 0.1600% of each Fund’s average daily managed assets, with breakpoints for eligible complex-level assets above $124.3 billion. Therefore, the maximum management fee rate for the Fund is the fund-level fee listed within this report plus 0.1600%.
Refer to the Notes to Financial Statements within this report for further details on the Fund’s management fees.
 
3

Portfolio Managers’
Comments
Nuveen Taxable Municipal Income Fund (NBB)
The Fund features portfolio management by Nuveen Asset Management, LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Fund’s investment adviser. The portfolio managers for the Nuveen Taxable Municipal Income Fund (NBB) are Daniel Close, CFA, and Kristen DeJong, CFA.
Portfolio Manager Updates
Effective April 10, 2023, Kristen DeJong was added as a portfolio manager of NBB. Effective May 31, 2023, John Miller no longer serves as a portfolio manager of the Fund. Daniel Close continues to serve as a portfolio manager of the Fund.
Here the Fund’s portfolio managers review U.S. economic and market conditions, key investment strategies and the performance of the Funds for the twelve-month reporting period ended March 31, 2024. For more information on the Fund’s investment objectives and policies, please refer to the Shareholder Update section at the end of the report.
What factors affected the U.S. economy and market conditions during the twelve-month reporting period ended March 31, 2024?
The U.S. economy was relatively resilient amid persistent inflationary pressure and elevated interest rates during the twelve-month period ended March 31, 2024. Gross domestic product rose at an annualized rate of 1.6% in the first quarter of 2024, slowing from 3.4% in the fourth quarter of 2023 and 2.5% in 2023 as a whole (from the 2022 annual level to the 2023 annual level), according to the U.S. Bureau of Economic Analysis advance estimate.
Inflation and central banks’ responses to it impacted investor sentiment during the reporting period. The Federal Reserve (Fed) raised the fed funds target rate to 5.25% to 5.50% in July 2023 and has maintained that level at subsequent meetings. During the reporting period, inflation rates continued to run hotter than the target levels set by the Fed and other major central banks, although price pressures moderated significantly from the post-pandemic highs in 2022. While the Fed’s rate hiking cycle (which began in March 2022) caused uncertainty, the Fed’s pause after July 2023 led to expectations that it would begin decreasing rates some time in 2024.
During the reporting period, elevated inflation and higher borrowing costs weighed on some segments of the economy, including the real estate market. Consumer spending, however, has remained more resilient than expected, in part because of a still-strong labor market, another key gauge of the economy’s health. As of March 2024, the unemployment rate was 3.8%, near its
pre-pandemic
low, with monthly job growth continuing to moderate from the faster pace earlier in the post-pandemic recovery. The strong labor market and wage gains helped the U.S. economy during the reporting period, even as the Fed sought to soften job growth to help curb inflation pressures.
Investors also continued to monitor government funding and deficits during the reporting period. The U.S. government avoided a default scenario after approving an increase to the debt ceiling limit in June 2023. At the same time, the potential for a government shutdown loomed but was ultimately avoided with funding resolutions passed in September and November 2023 and February 2024. Notably, in August 2023, ratings agency Fitch downgraded U.S. debt from AAA to AA+ based on concerns about the U.S.’s growing fiscal debt and reduced confidence in fiscal management.
The broad municipal bond market was impacted by interest rate volatility, economic uncertainty and shifting expectations about the Fed’s monetary policy during the reporting period. Municipal yields rose across the maturity spectrum, despite a steep decline in November-December 2023, when Treasury markets moved sharply to reassess the timing of potential Fed rate cuts and municipal yields followed in kind. The fourth quarter of 2023 saw one of the municipal bonds’ best rallies in several decades, which more than offset negative performance in much of the rest of the reporting period. Municipal credit fundamentals remained strong in the reporting period, and reduced supply issuance continued to be met with healthy demand, which helped municipal credit spreads narrow. This drove stronger performance in bonds lower down the credit ratings spectrum relative to the highest rated paper.
What key strategies were used to manage the Fund during the twelve-month reporting period ended March 31, 2024?
The Fund’s primary investment objective is to provide current income through investments in taxable municipal securities. The Fund’s secondary investment objective is to seek enhanced portfolio value and total return. In addition, the Fund will use an integrated leverage and hedging strategy, so that the Fund has the potential to enhance income and risk-adjusted total return
 
4

over time. The Fund may employ leverage instruments such as bank borrowings, including loans from certain financial institutions, and portfolio investments that have the economic effect of leverage, including inverse floating rate securities. Inverse floating rate securities, sometimes referred to as “inverse floaters,” are the residual interest in a tender option bond (TOB) trust. These securities can be used for a variety of reasons, including duration management, income and total return enhancement.
During the reporting period, the Fund’s trading activity remained focused on pursuing its investment objectives. The portfolio management team engaged in opportunistic trades to support the Fund’s income by reinvesting premiums received as part of the Fund’s hedging program as well as bond calls and maturities across a variety of sectors, including health care, special tax, local general obligation and transportation, and across a range of credit qualities. Most of the Fund’s buying activity was in the secondary market given the modest volume of new issuance during the reporting period.
How did the Fund perform during the twelve-month reporting period ended March 31, 2024?
For the twelve months ended March 31, 2024, NBB outperformed the Bloomberg Taxable Municipal Long Bond Index. For the purposes of this Performance Commentary, references to relative performance are in comparison to the Bloomberg Taxable Municipal Long Bond Index.
The primary contributor to the Fund’s relative performance was its emphasis on lower rated, higher yield bonds, primarily overweights to the BBB, BB and A ratings categories as credit spreads tightened during the reporting period. During the reporting period, the portfolio management team managed the duration of the portfolio by shorting interest rate futures contracts, which was beneficial as interest rates generally rose during the reporting period. An overweight to the outperforming special tax sector also added to relative performance.
Partially offsetting the Fund’s outperformance was its underweight to bonds with durations of 12 years and longer and the overweight to durations between two and six years, which detracted as longer duration structures outperformed intermediate durations. Other detractors from relative performance included an underweight to the local general obligation sector, which performed well, and overweight to the water and sewer sector, which lagged.
The Fund continued to use leverage through inverse floating rate securities and reverse repurchase agreements during the reporting period. Leverage is discussed in more detail in the Fund Leverage section of this report.
 
 
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Fund disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard
& Poor’s Group (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). 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, while BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.
Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers’ ability to meet their commitments.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
 
5

Fund Leverage
IMPACT OF THE FUND’S LEVERAGE STRATEGY ON PERFORMANCE
One important factor impacting the returns of the Fund’s common shares relative to its comparative benchmark was the Fund’s use of leverage through 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 a Fund pays on its leveraging instruments are lower than the interest the Fund earns on its portfolio securities 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.
The Fund’s use of leverage had a negligible impact on relative performance over the reporting period.
As of March 31, 2024, the Fund’s percentages of leverage are as shown in the accompanying table.
 
    
NBB
 
 
 
Effective Leverage
*
      40.55%  
Regulatory Leverage
*
     0.00%  
 
 
*  Effective leverage is a Fund’s effective economic leverage, and includes both regulatory leverage and the leverage effects of reverse repurchase agreements, certain derivatives 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 issued or borrowings of a Fund. Both of these are part of a Fund’s capital structure. A Fund, however, may from time to time borrow on a typically transient basis in connection with its
day-to-day
operations, primarily in connection with the need to settle portfolio trades. Such incidental borrowings are excluded from the calculation of a Fund’s effective leverage ratio. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.
THE FUNDS’ LEVERAGE
Reverse Repurchase Agreements
As noted previously, the Fund used reverse repurchase agreements, in which the Fund sells to a counterparty a security that it holds with a contemporaneous agreement to repurchase the same security at an agreed-upon price and date. The Fund’s transactions in reverse repurchase agreements are as shown in the accompanying table.
 
    
Current Reporting Period
    
Subsequent to the Close of the Reporting
Period
 
  
 
 
    
 
 
 
Fund
  
Outstanding
Balance as of
April 1, 2023
    
Sales
    
Purchases
    
Outstanding
Balance as of
March 31,
2024
    
Average
Balance
Outstanding
    
Sales
    
Purchases
    
Outstanding
Balance as of
May 21, 2024
 
 
 
NBB
     $186,950,000        $1,010,000,000        $(1,000,000,000)        $196,950,000        $189,310,656        $-        $-        $196,950,000  
 
 
Refer to Notes to Financial Statements for further details on reverse repurchase agreements for the Fund.
 
6

Common Share Information
COMMON SHARE DISTRIBUTION INFORMATION
The following information regarding the Fund’s distributions is current as of March 31, 2024. The Fund’s distribution levels may vary over time based on the Fund’s investment activity and portfolio investments value changes.
During the current reporting period, the Fund’s distributions to common shareholders were as shown in the accompanying table.
 
    
Per Common

Share

Amounts
 
Monthly Distributions
(Ex-Dividend
Date)
  
NBB
 
 
 
April
     $0.0680  
May
     0.0680  
June
     0.0680  
July
     0.0680  
August
     0.0680  
September
     0.0680  
October
     0.0680  
November
     0.0680  
December
     0.0735  
January
     0.0735  
February
     0.0735  
March
     0.0735  
 
 
Total Distributions from Net Investment Income
     $0.8380  
 
 
Total Distributions from Long Term Capital Gains
1
     $0.4823  
 
 
Total Distributions
     $1.3203  
 
 
Yields
  
NBB
 
 
 
Market Yield
*
     5.76%  
 
 
 
*
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 reporting period.
The Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit the Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund during the period. Distributions to common shareholders are determined on a tax basis, which may differ from amounts recorded in the accounting records. In instances where the monthly dividend exceeds the earned net investment income, the Fund would report a negative undistributed net ordinary income. Refer to the Notes to Financial Statements for additional information regarding the amounts of undistributed net ordinary income and undistributed net long-term capital gains and the character of the actual distributions paid by the Fund during the period.
Updated Distribution Policy
On October 23, 2023, the Funds’ Board of Trustees (the “Board”) updated Fund’s distribution policy. Effective for distributions payable on December 1, 2023, 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 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-
 
7

Common Share Information 
(continued)
 
closed-end-funds,
along with other Nuveen
closed-end
fund product updates. To ensure timely access to the latest information, shareholders may use a subscribe function, which can be activated at this web page (https://www.nuveen.com/subscriptions).
COMMON SHARE EQUITY SHELF PROGRAMS
During the current reporting period, 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.
 
    
NBB
 
 
 
Maximum aggregate offering
   $ 162,000,000  
 
 
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.
During the current reporting period, the Fund did not repurchase any of its outstanding common shares. As of March 31, 2024, (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  
 
 
OTHER COMMON SHARE INFORMATION
As of March 31, 2024, the Fund’s common share prices were trading at a premium/(discount) to its common share NAV, and trading at an average premium/(discount) to NAV during the current reporting period, as follows:
 
    
NBB
 
 
 
Common share NAV
     $16.81  
Common share price
     $15.32  
Premium/(Discount) to NAV
     (8.86)%  
Average premium/(discount) to NAV
     (7.66)%  
 
 
 
8

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.
 
9

NBB
 
  
Nuveen Taxable Municipal Income Fund
  
Performance Overview and Holding Summaries March 31, 2024
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Fund Performance*
 
          
Total Returns as of

     March 31, 2024     
 
          
Average Annual
 
    
Inception
Date
   
1-Year
    
5-Year
    
10-Year
 
 
 
NBB at Common Share NAV
     4/27/10       6.65%        1.33%        3.63%  
 
 
NBB at Common Share Price
     4/27/10       3.45%        0.47%        3.88%  
 
 
Bloomberg Taxable Municipal Long Bond Index
              3.19%         0.92%         3.53%  
 
 
*    For purposes of Fund performance, relative results are measured against the Bloomberg Taxable Municipal Long Bond Index. Through
November 16, 2018 the Fund’s performance was measured against the Bloomberg Aggregate- Eligible Build America Bond Index.
Performance data shown represents past performance and does not predict or guarantee future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses, and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes are not available for direct investment.
Daily Common Share NAV and Share Price
 
LOGO
Growth of an Assumed $10,000 Investment as of March 31, 2024 -
Common Share Price
 
LOGO
 
10

 
Holdings Summaries as of March 31, 2024
This data relates to the securities held in the Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, 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.
 
Fund Allocation
(% of net assets)
 
 
 
Municipal Bonds
     144.0%  
 
 
Repurchase Agreements
     0.3%  
 
 
Other Assets & Liabilities, Net
     3.3%  
 
 
Reverse Repurchase Agreements, including accrued interest      (40.1)%  
 
 
Floating Rate Obligations
     (7.5)%  
 
 
Net Assets
  
 
100%
 
 
 
 
Portfolio Credit Quality
(% of total investment exposure)
      
 
 
AAA
     5.0%  
 
 
AA
     39.8%  
 
 
A
     22.5%  
 
 
BBB
     14.6%  
 
 
BB or Lower
     5.0%  
 
 
N/R (not rated)
     12.9%  
 
 
N/A (not applicable)
     0.2%  
 
 
Total
  
 
100%
 
 
 
Portfolio Composition
(% of total investments)
 
 
 
Tax Obligation/Limited
     30.5%  
 
 
Transportation
     21.0%  
 
 
Utilities
     16.1%  
 
 
Tax Obligation/General
     9.0%  
 
 
Health Care
     8.6%  
 
 
Education and Civic Organizations
     5.5%  
 
 
Other
     9.1%  
 
 
Repurchase Agreements
     0.2%  
 
 
Total
  
 
100%
 
 
 
States and Territories
1
(% of total municipal bonds)
 
 
 
California
     20.0%  
 
 
New York
     19.2%  
 
 
Illinois
     8.5%  
 
 
Texas
     7.0%  
 
 
Georgia
     5.1%  
 
 
Washington
     4.9%  
 
 
Ohio
     4.4%  
 
 
Tennessee
     3.1%  
 
 
New Jersey
     2.8%  
 
 
Florida
     2.7%  
 
 
District of Columbia
     2.7%  
 
 
Oklahoma
     2.4%  
 
 
South Carolina
     2.4%  
 
 
Virginia
     2.3%  
 
 
West Virginia
     2.1%  
 
 
Other
     10.4%  
 
 
Total
  
 
100%
 
 
 
 
 
1
 
See the Portfolio of Investments for the remaining states comprising “Other” and not listed in the table above.
 
11

 
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12

Report of Independent Registered
Public Accounting Firm
(Unaudited)
To the Shareholders and Board of Trustees
Nuveen Taxable Municipal Income Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Nuveen Taxable Municipal Income Fund (the Fund), including the portfolio of investments, as of March 31, 2024, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years in the two year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2024, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2024, by correspondence with custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the auditor of one or more Nuveen investment companies since 2014.
Chicago, Illinois
May 24, 2024
 
13

NBB  
  
Nuveen Taxable Municipal Income Fund
Portfolio of Investments March 31, 2024
 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
   
LONG-TERM INVESTMENTS - 144.0% (99.8% of Total Investments)
     
   
MUNICIPAL BONDS - 144.0% (99.8% of Total Investments)
     
   
Alaska - 0.6% (0.4% of Total Investments)
     
  $   3,025             Port Lions, Alaska, Revenue Bonds, Kodiak Area Native Association Project, Taxable Series 2022, 7.500%, 10/01/52    10/32 at 100.00    $ 3,159,822  
    Total Alaska   
 
     3,159,822  
   
Arizona - 0.1% (0.1% of Total Investments)
     
  500    
 
  Maricopa County Industrial Development Authority, Arizona, Education Revenue Bonds, Villa Montessori, Inc Project, Taxable Series 2023B, 8.000%, 7/01/53    4/24 at 102.00      510,149  
    Total Arizona   
 
     510,149  
   
California - 28.7% (19.9% of Total Investments)
     
    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:
     
  1,950       5.100%, 9/01/28    No Opt. Call      1,892,916  
  6,125       5.500%, 9/01/38    9/28 at 100.00      5,573,274  
  5,500       Alameda Corridor Transportation Authority, California, Revenue Bonds, Taxable Refunding Subordinate Lien Series 2024, 0.000%, 10/01/39 - AGM Insured    10/34 at 73.48      2,240,928  
    California Infrastructure and Economic Development Bank, Revenue Bonds, J. David Gladstone Institutes Project, Taxable Series 2019:      
  2,480       4.000%, 10/01/39    10/29 at 100.00      2,032,335  
  8,260       4.658%, 10/01/59    10/29 at 100.00      6,518,101  
  1,000       California Infrastructure and Economic Development Bank, Revenue Bonds, University of California San Francisco Neurosciences Building, Build America Taxable Bond Series 2010B, 6.486%, 5/15/49    No Opt. Call      1,123,691  
  8,010       California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Windsor Mobile Country Club, Taxable Refunding Series 20202B, 6.375%, 11/15/48, 144A    11/30 at 100.00      7,482,332  
 
540
 
    California Public Finance Authority, University Housing Revenue Bonds, National Campus Community Development - Claremont Properties LLC Claremont Colleges Project, Taxable Refunding Series 2023B, 6.500%, 7/01/32, 144A    No Opt. Call      529,160  
  4,530     (c)   California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Build America Taxable Bond Series
2009G-2,
8.361%, 10/01/34
   No Opt. Call      5,524,821  
  7,010       California State University, Systemwide Revenue Bonds, Build America Taxable Bond Series 2010B, 6.484%, 11/01/41    No Opt. Call      7,764,817  
  2,000       California State, General Obligation Bonds, Build America Federally Taxable Series 2009, 7.550%, 4/01/39    No Opt. Call      2,453,366  
  4,110     (c)   California State, General Obligation Bonds, Various Purpose, Build America Taxable Bond Series 2010, 7.600%, 11/01/40    No Opt. Call      5,086,336  
  2,720       California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2014B, 6.000%, 12/01/24    No Opt. Call      2,707,338  
  2,000       California Statewide Communities Development Authority, Limited Obligation Improvement Bonds, 300 Lakeside Drive Oakland Property Assessed Clean Energy, Taxable Sustainability Green Series 2023, 8.000%, 9/02/53, 144A    8/23 at 105.00      2,038,341  
 
14

 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
   
California
(continued)
     
  $   1,300             California Statewide Community Development Authority, Health Revenue Bonds, Enloe Medical Center, Refunding Series 2022B, 7.140%, 8/15/47 - AGM Insured    8/32 at 100.00    $ 1,401,601  
  2,025       Chino Public Financing Authority, California, Local Agency Bonds, Refunding Series 2021A, 4.001%, 9/01/38    9/31 at 100.00      1,795,385  
  5,000       Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Taxable Series 2021B, 3.293%, 6/01/42    6/31 at 100.00      3,868,417  
  2,000       Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Taxable Senior Series
2021A-1,
3.714%, 6/01/41
   12/31 at 100.00      1,573,306  
    Los Angeles Community College District, California, General Obligation Bonds, Build America Taxable Bonds, Series 2010:      
  10,000     (d)   6.600%, 8/01/42, (UB)    No Opt. Call      11,315,917  
  7,500     (c)   6.600%, 8/01/42    No Opt. Call      8,486,938  
    Los Angeles Community College District, Los Angeles County, California, General Obligation Bonds, Tender Option Bond Trust 2016-XTG002, Formerly Tender Option Bond Trust TN027:      
  2,000     (d)   9.439%, 8/01/49, 144A, (IF)    No Opt. Call      3,701,481  
    Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Mulitple Capital Projects I, Build America Taxable Bond Series 2010B:      
  2,050     (c)   7.488%, 8/01/33    No Opt. Call      2,300,995  
  11,380     (c)   7.618%, 8/01/40    No Opt. Call      14,028,998  
  3,110       Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Build America Taxable Bonds, Series 2009C, 6.582%, 5/15/39    No Opt. Call      3,366,445  
  1,785     (c)   Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Federally Taxable - Direct Payment - Build America Bonds, Series 2010D, 6.574%, 7/01/45    No Opt. Call      2,062,036  
  4,000     (d)   Los Angeles Department of Water and Power, California, Water System Revenue Bonds, Tender Option Bond Trust 2016-XFT906, 8.165%, 7/01/50, 144A, (IF)    No Opt. Call      7,318,200  
  4,250     (c)   Sacramento Public Financing Authority, California, Lease Revenue Bonds, Golden 1 Center, Series 2015, 5.637%, 4/01/50    No Opt. Call      4,460,478  
  2,200       San Diego County Regional Transportation Commission, California, Sales Tax Revenue Bonds, Build America Taxable Bonds Series 2010A, 5.911%, 4/01/48    No Opt. Call      2,338,208  
  1,500       San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Taxable Build America Bond Series 2010G, 6.950%, 11/01/50    No Opt. Call      1,757,896  
  1,000       San Francisco City and County Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, San Francisco Redevelopment Projects, Taxable Series 2009E, 8.406%, 8/01/39    No Opt. Call      1,258,138  
    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:      
  4,000     (d)   8.040%, 11/01/41, 144A, (IF)    No Opt. Call      5,952,872  
  2,000     (d)   8.040%, 11/01/41, 144A, (IF)    No Opt. Call      2,976,436  
  1,270       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%, 9/01/31, 144A
   No Opt. Call      1,158,731  
 
15

NBB  
  
Nuveen Taxable Municipal Income Fund
(continued)
  
Portfolio of Investments
March 31, 2024
 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
 
     
 
California
(continued)
     
  $   2,000     (c)   University of California Regents, Medical Center Pooled Revenue Bonds, Taxable Build America Bond Series 2010H, 6.548%, 5/15/48    No Opt. Call    $ 2,273,814  
  4,410    
 
  Vernon, California, Electric System Revenue Bonds, Series 2008A, 8.590%, 7/01/38    No Opt. Call      5,221,801  
    Total California   
 
     141,585,849  
   
Colorado - 1.9% (1.3% of Total Investments)
     
  4,335     (c)   Colorado Bridge Enterprise, Revenue Bonds, Federally Taxable Build America Series 2010A, 6.078%, 12/01/40    No Opt. Call      4,691,285  
  3,100     (c)   Denver School District 1, Colorado, General Obligation Bonds, Build America Taxable Bonds, Series 2009C, 5.664%, 12/01/33    No Opt. Call      3,240,532  
  1,230     (c)   Regional Transportation District, Colorado, Sales Tax Revenue Bonds, Fastracks Project, Build America Series 2010B, 5.844%, 11/01/50    No Opt. Call      1,327,852  
    Total Colorado   
 
     9,259,669  
   
District of Columbia - 3.9% (2.7% of Total Investments)
     
    Metropolitan Washington Airports Authority, District of Columbia, Dulles Toll Road Revenue Bonds, Dulles Metrorail & Capital improvement Projects, Second Senior Lien, Build America Bond Series 2009D:      
  14,365     (c)   7.462%, 10/01/46    No Opt. Call      18,008,149  
  1,000    
 
  7.462%, 10/01/46 - AGM Insured    No Opt. Call      1,270,862  
    Total District of Columbia   
 
     19,279,011  
   
Florida - 3.9% (2.7% of Total Investments)
     
  12,265       Charlotte County Industrial Development Authority, Florida, Utility System Revenue Bonds, Town & Country Utilities Project, Taxable Series 2021B, 5.000%, 10/01/36, 144A    10/31 at 100.00      11,043,660  
  1,400       Miami, Florida, Special Obligation Revenue Bonds, Street & Sidewalk Improvement Program, Taxable Refunding Series 2018B, 4.808%, 1/01/39 - AGM Insured, 144A    1/28 at 100.00      1,348,806  
  6,570    
 
  Miami-Dade County, Florida, Seaport Revenue Bonds, Taxable Series
2023, 6.224%, 11/01/55
   11/33 at 100.00      7,016,576  
    Total Florida   
 
     19,409,042  
   
Georgia - 7.3% (5.1% of Total Investments)
     
  2,264       Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project M Bonds, Taxable Build America Bonds Series 2010A, 6.655%, 4/01/57    No Opt. Call      2,616,155  
    Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project P Bonds, Refunding Taxable Build America Bonds Series 2010A:      
  18,444     (c)   7.055%, 4/01/57    No Opt. Call      21,031,885  
  5,668       7.055%, 4/01/57 - AGM Insured    No Opt. Call      6,694,142  
  5,012    
 
  Municipal Electric Authority of Georgia, Plant Vogtle Units 3 & 4 Project J Bonds, Taxable Build America Bonds Series 2010A, 6.637%, 4/01/57    No Opt. Call      5,786,975  
    Total Georgia   
 
     36,129,157  
   
Illinois - 12.2% (8.4% of Total Investments)
     
  4,030     (c)   Chicago Board of Education, Illinois, General Obligation Bonds, Dedicated Revenues, Series 2010C, 6.319%, 11/01/29 - BAM Insured    No Opt. Call      4,185,887  
  12,715     (c)   Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Federally Taxable Build America Bonds, Series 2010B, 6.200%, 12/01/40    No Opt. Call      13,609,592  
  1,000       Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Taxable Refunding Series 2020B, 3.912%, 12/01/40    No Opt. Call      865,157  
  355       Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien, Taxable Build America Bond Series 2010B, 6.395%, 1/01/40    No Opt. Call      391,871  
 
16

 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
 
     
 
Illinois
(continued)
     
  $   1,015       Chicago, Illinois, Wastewater Transmission Revenue Bonds, Build America Taxable Bond Series 2010B, 6.900%, 1/01/40    No Opt. Call    $ 1,148,807  
  3,495       Chicago, Illinois, Water Revenue Bonds, Taxable Second Lien Series 2010B,
6.742%, 11/01/40
   No Opt. Call      3,980,286  
  1,950       Cook County, Illinois, General Obligation Bonds, Build America Taxable Bonds, Series 2010D, 6.229%, 11/15/34    No Opt. Call      2,075,565  
  2,980       Illinois International Port District, Revenue Bonds, Taxable Refunding Series 2020, 5.000%, 1/01/35, 144A    1/26 at 101.00      2,656,194  
  1,714       Illinois State, General Obligation Bonds, Build America Taxable Bonds, Series
2010-5,
7.350%, 7/01/35
   No Opt. Call      1,857,596  
  12,956     (c)   Illinois State, General Obligation Bonds, Taxable Build America Bonds, Series
2010-3,
6.725%, 4/01/35
   No Opt. Call      13,668,492  
  10,312     (c)   Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Taxable Build America Bond Senior Lien Series 2009A, 6.184%, 1/01/34    No Opt. Call      10,999,114  
  2,420     (c)   Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Taxable Build America Bond Senior Lien Series 2009B, 5.851%, 12/01/34    No Opt. Call      2,533,822  
  400       Northern Illinois Municipal Power Agency, Power Project Revenue Bonds, Prairie State Project, Build America Bond Series 2009C, 6.859%, 1/01/39    No Opt. Call      434,916  
  1,375    
 
  Northern Illinois Municipal Power Agency, Power Project Revenue Bonds, Prairie State Project, Build America Taxable Bond Series 2010A, 7.820%, 1/01/40    No Opt. Call      1,643,932  
    Total Illinois   
 
     60,051,231  
   
Indiana - 1.2% (0.8% of Total Investments)
     
  1,000       Indianapolis Local Public Improvement Bond Bank, Indiana, Build America Taxable Bonds, Series
2010B-2,
6.116%, 1/15/40
   No Opt. Call      1,054,794  
  5,000    
 
  Knox County, Indiana, Economic Development Revenue Bonds, Good Samaritan Hospital Project, Taxable Series 2012B, 5.900%, 4/01/34    No Opt. Call      4,851,339  
    Total Indiana   
 
     5,906,133  
   
Kentucky - 1.6% (1.1% of Total Investments)
     
  5       Kentucky Municipal Power Agency, Power System Revenue Bonds, Prairie State Project, Build America Bond Series 2010B, 6.490%, 9/01/37 - AGM Insured    4/24 at 100.00      5,003  
  5,450     (c)   Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage System Revenue Bonds, Build America Taxable Bonds Series 2010A,
6.250%, 5/15/43
   No Opt. Call      6,090,601  
  2,170    
 
  Newport, Kentucky, Industrial Building Revenue Bonds, South Beach 1, LLC Project, Taxable Refunding Series 2022, 4.125%, 3/01/33    No Opt. Call      1,952,058  
    Total Kentucky   
 
     8,047,662  
   
Maryland - 2.8% (1.9% of Total Investments)
     
  2,000       Maryland Economic Development Corporation, Economic Development Revenue Bonds, Terminal Project, Refunding Series 2017B, 4.550%, 6/01/35    No Opt. Call      1,820,144  
    Maryland Economic Development Corporation, Parking Facilities Revenue Bonds Baltimore City Project, Senior Parking Facilities Revenue, Series 2018B:      
  1,500       4.580%, 6/01/33    6/28 at 100.00      1,363,162  
  2,945       4.790%, 6/01/38    6/28 at 100.00      2,526,929  
  4,285       5.050%, 6/01/43    6/28 at 100.00      3,565,868  
  5,350    
 
  5.320%, 6/01/51    6/28 at 100.00      4,420,667  
    Total Maryland   
 
     13,696,770  
 
17

NBB  
  
Nuveen Taxable Municipal Income Fund
(continued)
  
Portfolio of Investments
March 31, 2024
 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
 
     
 
Massachusetts - 1.0% (0.7% of Total Investments)
     
  $   4,000     (d)   Massachusetts, Transporation Fund Revenue Bonds, Accelerated Bridge Program, Tender Option Bond Trust 2016-XFT907, 4.136%, 6/01/40, 144A, (IF)    No Opt. Call    $ 4,799,530  
    Total Massachusetts   
 
     4,799,530  
   
Minnesota - 0.4% (0.3% of Total Investments)
     
  1,855    
 
  Western Minnesota Municipal Power Agency, Minnesota, Power Supply Revenue Bonds, Build America Taxable Bond Series 2010C, 6.770%, 1/01/46    No Opt. Call      2,154,433  
    Total Minnesota   
 
     2,154,433  
   
Mississippi - 0.4% (0.3% of Total Investments)
     
  2,085    
 
  Mississippi State, General Obligation Bonds, Taxable Build America Bond Series 2010F, 5.245%, 11/01/34    No Opt. Call      2,093,350  
    Total Mississippi   
 
     2,093,350  
   
Missouri - 0.2% (0.2% of Total Investments)
     
  1,000    
 
  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%, 1/01/42    No Opt. Call      1,123,056  
    Total Missouri   
 
     1,123,056  
   
New Jersey - 4.0% (2.8% of Total Investments)
     
  3,320       New Jersey Educational Facilities Authority, Revenue Bonds, Seton Hall University, Taxable Series 2020D, 3.958%, 7/01/48 - AGM Insured    7/30 at 100.00      2,493,371  
  3,000       New Jersey Turnpike Authority, Revenue Bonds, Build America Taxable Bonds, Series 2009F, 7.414%, 1/01/40    No Opt. Call      3,584,286  
  8,805       New Jersey Turnpike Authority, Revenue Bonds, Build America Taxable Bonds, Series 2010A, 7.102%, 1/01/41    No Opt. Call      10,249,785  
  2,000       Rutgers State University, New Jersey, Revenue Bonds, Taxable Build America Bond Series 2010H, 5.665%, 5/01/40    No Opt. Call      2,098,300  
  870       South Jersey Port Corporation, New Jersey, Marine Terminal Revenue Bonds, Taxable Build America Bond Series
2009P-3,
7.365%, 1/01/40
   No Opt. Call      978,845  
  530    
 
  South Jersey Transportation Authority, New Jersey, Transportation System Revenue Bonds, Build America Bond Series
2009A-5,
7.000%, 11/01/38
   No Opt. Call      572,173  
    Total New Jersey   
 
     19,976,760  
   
New York - 27.5% (19.1% of Total Investments)
     
  420       Babylon Local Development Corporation II, New York, Education Revenue Bonds, The Academy Charter School Project, Taxable Series 2023B, 7.250%, 2/01/27    No Opt. Call      420,561  
    Dormitory Authority of the State of New York, Revenue Bonds, Montefiore Obligated Group, Taxable Series 2018B:      
  10,000       5.096%, 8/01/34    No Opt. Call      9,035,678  
  1,415       4.946%, 8/01/48 - AGM Insured    8/28 at 100.00      1,302,755  
  25,000       Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Build America Taxable Bonds, Series 2010D, 5.600%, 3/15/40, (UB)    No Opt. Call      25,256,787  
  2,000       Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Tender Option Bond Trust 30020: 3.746%, 3/15/40, 144A, (IF)    No Opt. Call      2,102,715  
  5,100     (c)   Long Island Power Authority, New York, Electric System Revenue Bonds, Build America Taxable Bond Series 2010B, 5.850%, 5/01/41    No Opt. Call      5,456,418  
  680       Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Build America Taxable Bonds, Series 2010C, 7.336%, 11/15/39    No Opt. Call      823,191  
 
18

 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
 
     
 
New York
(continued)
     
  $   7,000       Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Build America Taxable Bonds, Series
2009A-1,
5.871%, 11/15/39
   No Opt. Call    $ 7,192,542  
  2,090       Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Build America Taxable Bonds, Series
2010B-1,
6.548%, 11/15/31
   No Opt. Call      2,210,848  
  10,925     (c)   Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Federally Taxable Build America Bonds, Series 2010E, 6.814%, 11/15/40    No Opt. Call      12,173,590  
  11,390     (c)   Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Federally Taxable Issuer Subsidy Build America Bonds, Series 2010A,
6.668%, 11/15/39
   No Opt. Call      12,562,003  
  5,610       Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Taxable Green Climate Certified Series
2020C-2,
5.175%, 11/15/49
   No Opt. Call      5,222,691  
  3,675       Monroe County Industrial Development Corporation, New York, Revenue Bonds, Rochester Regional Health Project, Taxable Series 2020B, 4.600%, 12/01/46    No Opt. Call      2,970,282  
    New York City Industrial Development Agency, New York, Installment Purchase and Lease Revenue Bonds, Queens Baseball Stadium Project, Series 2006:      
  2,000       6.027%, 1/01/46 - AGM Insured    No Opt. Call      2,053,439  
  890       6.027%, 1/01/46 - AMBAC Insured, 144A    No Opt. Call      913,780  
  475       New York City Industrial Development Authority, New York, Rental Revenue Bonds, Yankee Stadium Project, Taxable Series 2009, 11.000%, 3/01/29 - AGM Insured, 144A    No Opt. Call      548,622  
  1,500     (c)   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%, 6/15/43    No Opt. Call      1,500,576  
  2,595       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%, 6/15/42    No Opt. Call      2,757,453  
  2,025     (d)   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%, 6/15/42, (UB)    No Opt. Call      2,151,770  
    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:
     
  3,595     (d)   5.595%, 6/15/44, 144A, (IF)    No Opt. Call      4,483,952  
  10,550     (c)   New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal 2011 Taxable Build America Bond Series
2010S-1B,
6.828%, 7/15/40
   No Opt. Call      11,809,036  
  10,000     (c)   New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Build America Taxable Bonds, Series
2010G-1,
5.467%, 5/01/40
   No Opt. Call      10,255,083  
    Westchester County Health Care Corporation, New York, Senior Lien Revenue Bonds, Refunding Series 2010A:      
  5,495       8.572%, 11/01/40    No Opt. Call      5,563,035  
  3,450       8.572%, 11/01/40    No Opt. Call      3,492,489  
  2,970    
 
  Westchester County Health Care Corporation, New York, Senior Lien Revenue Bonds, Series
2010-C1,
8.572%, 11/01/40 - AGM Insured
   No Opt. Call      3,584,182  
    Total New York   
 
     135,843,478  
 
19

NBB  
  
Nuveen Taxable Municipal Income Fund
(continued)
  
Portfolio of Investments
March 31, 2024
 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
 
     
 
Ohio - 6.4% (4.4% of Total Investments)
     
    American Municipal Power Inc., Ohio, Combined Hydroelectric Projects Revenue Bonds, Build America Bond Series 2010B:      
  $   6,350     (c)   7.834%, 2/15/41    No Opt. Call    $ 7,779,785  
  1,000       8.084%, 2/15/50    No Opt. Call      1,328,614  
  1,475       American Municipal Power Inc., Ohio, Meldahl Hydroelectric Projects Revenue Bonds, Build America Bond Series 2010B, 7.499%, 2/15/50    No Opt. Call      1,792,961  
  7,040     (c)   American Municipal Power Ohio Inc., Prairie State Energy Campus Project Revenue Bonds, Build America Bond Series 2009C, 6.053%, 2/15/43    No Opt. Call      7,443,999  
  1,700       Cincinnati City School District, Ohio, Certificates of Participation, School Energy Conservation Improvement Project, Taxable Series 2012, 5.150%, 6/15/32    No Opt. Call      1,697,391  
  2,300       Columbus Regional Airport Authority, Ohio, Customer Facility Charge Revenue Bonds, Taxable Series 2019, 4.199%, 12/15/48    12/29 at 100.00      1,920,567  
  10,575    
 
  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%, 1/01/39    1/26 at 100.00      9,470,548  
    Total Ohio   
 
     31,433,865  
   
Oklahoma - 3.5% (2.4% of Total Investments)
     
  19,200    
 
  Oklahoma Development Finance Authority, Health System Revenue Bonds, OU Medicine Project, Taxable Series 2018D, 5.450%, 8/15/28    No Opt. Call      17,406,031  
    Total Oklahoma   
 
     17,406,031  
   
Oregon - 1.1% (0.8% of Total Investments)
     
    Hillsboro Economic Development Council, Oregon, Tax Increment Revenue Bonds, North Hillsboro Industrial Renew Area, Taxable Series 2024:      
  1,590       5.815%, 6/01/38 - AGM Insured    6/33 at 100.00      1,648,428  
  1,600       5.865%, 6/01/39 - AGM Insured    6/33 at 100.00      1,658,638  
  2,450    
 
  Port of Portland, Oregon, Portland International Airport Customer Facility Charge Revenue Bonds, Taxable Series 2019, 4.237%, 7/01/49    7/29 at 100.00      2,053,407  
    Total Oregon   
 
     5,360,473  
   
Pennsylvania - 1.3% (0.9% of Total Investments)
     
  1,915       Commonwealth Financing Authority, Pennsylvania, State Appropriation Lease Bonds, Build America Taxable Bonds, Series 2009D, 6.218%, 6/01/39    No Opt. Call      2,054,790  
  1,640       Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Build America Taxable Bonds, Series 2009A, 6.105%, 12/01/39    No Opt. Call      1,804,477  
  2,715     (c)   Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Build America Taxable Bonds, Series 2010B, 5.511%, 12/01/45    No Opt. Call      2,784,811  
    Total Pennsylvania   
 
     6,644,078  
   
South Carolina - 3.5% (2.4% of Total Investments)
     
    South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Series 2010C:      
  8,985       6.454%, 1/01/50, (UB)    No Opt. Call      10,062,861  
  2,000       6.454%, 1/01/50 - AGM Insured    No Opt. Call      2,254,094  
  1,550     (d)   6.454%, 1/01/50    No Opt. Call      1,735,942  
  205       South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Tender Option Bond Trust T30002, 7.520%, 1/01/50, 144A, (IF)    No Opt. Call      327,961  
 
20

 
Principal
Amount (000)
        
Description (a)
  
Optional Call
Provisions (b)
  
     Value
 
   
South Carolina
(continued)
     
  $   2,585    
 
  South Carolina Public Service Authority, Santee Cooper Revenue Obligations, Refunding Series 2013C, 5.784%, 12/01/41 - AGM Insured    No Opt. Call    $ 2,693,824  
    Total South Carolina   
 
     17,074,682  
   
Tennessee - 4.5% (3.1% of Total Investments)
     
  1,500       Jackson, Tennessee, Hospital Revenue Bonds, Jackson-Madison County General Hospital Project, Series 2018B, 5.308%, 4/01/48    No Opt. Call      1,467,050  
    Memphis/Shelby County Economic Development Growth Engine Industrial Development Board, Tennessee, Tax Increment Revenue Bonds, Graceland Project, Senior Taxable Series 2017B:      
  6,280       5.200%, 7/01/37    7/27 at 100.00      5,221,221  
  1,515       5.450%, 7/01/45    7/27 at 100.00      1,131,198  
  5,010     (c)   Metropolitan Government Nashville & Davidson County Convention Center Authority, Tennessee, Tourism Tax Revenue Bonds, Build America Taxable Bonds, Series
2010A-2,
7.431%, 7/01/43
   No Opt. Call      6,042,068  
  7,350     (c)   Metropolitan Government Nashville & Davidson County Convention Center Authority, Tennessee, Tourism Tax Revenue Bonds, Build America Taxable Bonds, Subordinate Lien Series 2010B, 6.731%, 7/01/43    No Opt. Call      8,438,402  
    Total Tennessee   
 
     22,299,939  
   
Texas - 10.1% (7.0% of Total Investments)
     
  2,520       Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds, Taxable Build America Bonds, Series 2009B, 5.999%, 12/01/44    No Opt. Call      2,709,995  
  16,460     (c)   Dallas Convention Center Hotel Development Corporation, Texas, Hotel Revenue Bonds, Build America Taxable Bonds, Series 09B, 7.088%, 1/01/42    No Opt. Call      18,809,574  
  1,000       Fort Worth, Tarrant, Denton, Parker, Johnson, and Wise Counties, Texas, Special Tax Revenue Bonds, Taxable Series 2017B, 4.238%, 3/01/47    9/24 at 100.00      842,062  
  1,925       Houston, Texas, Airport System Special Facilities Revenue Bonds, Consolidated Rental Car Facility Project, Taxable Series 2001, 6.880%, 1/01/28 - NPFG Insured    No Opt. Call      1,996,389  
  10,285     (c)   North Texas Tollway Authority, System Revenue Bonds, Taxble Build America Bond Series 2009B, 6.718%, 1/01/49    No Opt. Call      12,173,785  
    San Antonio, Texas, Customer Facility Charge Revenue Bonds, Rental Car Special Facilities Project, Series 2015:      
  7,545       5.671%, 7/01/35    7/25 at 100.00      7,484,362  
  2,000       5.871%, 7/01/45    7/25 at 100.00      1,923,340  
  1,000       San Antonio, Texas, Electric and Gas System Revenue Bonds, Junior Lien, Build America Taxable Bond Series 2010A, 5.808%, 2/01/41    No Opt. Call      1,053,022  
  10       San Antonio, Texas, Electric and Gas System Revenue Bonds, Series 2012,
4.427%, 2/01/42
   No Opt. Call      9,410  
    Tarrant County Cultural Education Facilities Finance Corporation, Texas, Hospital Revenue Bonds, Hendrick Medical Center, Taxable Series 2021:      
  1,000       3.292%, 9/01/40 - AGM Insured    9/30 at 100.00      791,097  
  1,400       3.422%, 9/01/50 - AGM Insured    9/30 at 100.00      994,689  
  1,000    
 
  Texas Private Activity Bond Surface Transporation Corporation, Revenue Bonds, NTE Mobility Partners LLC North Tarrant Express Managed Lanes Project, Taxable Refunding Senior Lien Series 2019B, 3.922%, 12/31/49    No Opt. Call      832,876  
    Total Texas   
 
     49,620,601  
   
Utah - 1.5% (1.0% of Total Investments)
     
  8,500    
 
  Salt Lake County, Utah, Convention Hotel Revenue Bonds, Taxable Series 2019,
5.750%, 10/01/47, 144A
   10/29 at 100.00      7,426,989  
    Total Utah   
 
     7,426,989  
 
21

NBB  
  
Nuveen Taxable Municipal Income Fund
(continued)
  
Portfolio of Investments
March 31, 2024
 
Principal
Amount (000)
        
Description (a)
        
Optional Call
Provisions (b)
  
     Value
 
   
Virginia - 3.3% (2.3% of Total Investments)
     
  $   1,840       Fredericksburg Economic Development Authority, Virginia, Revenue Bonds, Fredericksburg Stadium Project, Taxable Series 2019A, 5.500%, 9/01/49, 144A    9/29 at 100.00    $ 1,759,966  
  10,575       Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset Backed Bonds, Refunding Senior Lien Series 2007A, 6.706%, 6/01/46    6/25 at 100.00      9,124,836  
  5,160    
 
  Virginia Small Business Finance Authority, Tourism Development Financing Program Revenue Bonds, Downtown Norfolk and Virginia Beach Oceanfront Hotel Projects, Series 2018B, 12.000%, 4/01/48, 144A    4/28 at 117.16      5,196,462  
    Total Virginia   
 
     16,081,264  
   
Washington - 7.1% (4.9% of Total Investments)
     
  4,000     (d)   Seattle, Washington, Municipal Light and Power Revenue Bonds, Federally Taxable Build America Bonds, Tender Option Bond Trust 2016-XFT905, Formerly Tender Option Bond Trust T0001, 3.055%, 2/01/40, 144A, (IF)    No Opt. Call      4,764,926  
  27,830     (c)   Washington State Convention Center Public Facilities District, Lodging Tax Revenue Bonds, Build America Taxable Bond Series 2010B, 6.790%, 7/01/40    No Opt. Call      30,336,701  
    Total Washington   
 
     35,101,627  
   
West Virginia - 3.1% (2.1% of Total Investments)
     
    Tobacco Settlement Finance Authority, West Virginia, Tobacco Settlement Asset-Backed Bonds, Taxable Refunding Class 1 Senior Series 2020A:      
  8,500       4.006%, 6/01/40       12/30 at 100.00      6,790,063  
  10,800    
 
  4.306%, 6/01/49   
 
   12/30 at 100.00      8,415,827  
    Total West Virginia   
 
  
 
     15,205,890  
   
Wisconsin - 0.9% (0.7% of Total Investments)
     
  480       Fond du Lac County, Wisconsin, Revenue Bonds, Bug Tussel 1 LLC Project, Taxable Social Series 2022A, 5.569%, 11/01/51 - BAM Insured, 144A    11/31 at 100.00      450,989  
  2,360       Fond du Lac County, Wisconsin, Revenue Bonds, Bug Tussel 1 LLC Project, Taxable Social Series 2023, 6.434%, 11/01/52 - BAM Insured, 144A    11/33 at 100.00      2,425,572  
  2,000    
 
  Wisconsin Center District, Dedicated Tax Revenue Bonds, Supported by State Moral Obligation Taxable Senior Series 2020A, 4.473%, 12/15/47 - AGM Insured    12/30 at 100.00      1,720,216  
    Total Wisconsin   
 
     4,596,777  
    Total Municipal Bonds
(cost $728,395,033)
  
 
     711,277,318  
   
Total Long-Term Investments
(cost $728,395,033)
  
 
  
 
711,277,318
 
Principal
Amount (000)
        
Description (a)
  
Coupon
  
Maturity
  
Value
 
   
SHORT-TERM INVESTMENTS - 0.3% (0.2% of Total Investments)
     
   
REPURCHASE AGREEMENTS - 0.3% (0.2% of Total Investments)
     
  $   1,425     (e)   Fixed Income Clearing Corp (FICC)    5.280%    4/01/24    $ 1,425,000  
    Total Repurchase Agreements
(cost $1,425,000)
  
 
     1,425,000  
   
Total Short-Term Investments
(cost $1,425,000)
  
 
  
 
1,425,000
 
   
Total Investments (cost $729,820,033) - 144.3%
  
 
  
 
712,702,318
 
   
Floating Rate Obligations - (7.5)%
  
 
  
 
(36,810,000
   
Reverse Repurchase Agreements, including accrued interest - (40.1)%(f)
  
 
  
 
(197,984,713
   
Other Assets & Liabilities, Net -3.3%
  
 
  
 
16,071,272
 
   
Net Assets Applicable to Common Shares - 100%
  
 
  
$
493,978,877
 
 
22

 
Investments in Derivatives
Futures Contracts - Short
 
Description
    
Number of
Contracts
    
Expiration
Date
      
Notional
Amount
    
Value
    
Unrealized
Appreciation
(Depreciation)
 
U.S. Treasury Ultra Bond
       (1,011      6/24        $ (127,297,101    $ (130,419,000      $(3,121,899)  
 
(a)
All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.
(b)
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm.
(c)
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in reverse repurchase agreements. As of the end of the reporting period, investments with a value of $247,588,443 have been pledged as collateral for reverse repurchase agreements.
(d)
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(e)
Agreement with Fixed Income Clearing Corporation, 5.280% dated 3/28/24 to be repurchased at $1,425,836 on 4/1/24, collateralized by Government Agency Securities, with coupon rate 1.750% and maturity date 8/15/41, valued at $1,453,512.
(f)
Reverse Repurchase Agreements, including accrued interest as a percentage of Total investments is 27.8%.
 
144A
Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.
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.
 
 
See Notes to Financial Statements
 
23

Statement of Assets and Liabilities
March 31, 2024
 
March 31, 2024
  
NBB
 
ASSETS
  
Long-term investments, at value
   $ 711,277,318  
Short-term investments, at value
à
     1,425,000  
Cash collateral at broker for investments in futures contracts
(1)
     6,617,054  
Receivables:
  
Interest
     13,030,665  
Investments sold
     442,077  
Deferred offering costs
     305,054  
Other
     42,060  
Total assets
  
 
733,139,228
 
LIABILITIES
  
Cash overdraft
     995,047  
Reverse repurchase agreements, including accrued interest
     197,984,713  
Floating rate obligations
     36,810,000  
Payables:
  
Management fees
     411,936  
Dividends
     2,113,935  
Interest
     173,809  
Variation margin on futures contracts
     473,906  
Accrued expenses:
  
Custodian fees
     51,786  
Investor relations
     15,762  
Trustees fees
     40,440  
Professional fees
     2,249  
Shareholder reporting expenses
     30,109  
Shareholder servicing agent fees
     504  
Shelf offering costs
     55,799  
Other
     356  
Total liabilities
  
 
239,160,351
 
   
Commitments and contingencies
(2)
  
   
Net assets applicable to common shares
  
$
  493,978,877
 
Common shares outstanding
     29,394,752  
Net asset value (“NAV”) per common share outstanding
   $ 16.81  
   
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
        
Common shares, $0.01 par value per share
   $ 293,948  
Paid-in
capital
     539,396,364  
Total distributable earnings (loss)
     (45,711,435
Net assets applicable to common shares
   $ 493,978,877  
Authorized shares:
  
 Common
     Unlimited  
 
Long-term investments, cost
   $ 728,395,033  
à
Short-term investments, cost
   $ 1,425,000  
 
(1)
 
Cash pledged to collateralize the net payment obligations for investments in derivatives.
(2)
 
As disclosed in Notes to Financial Statements.
 
See Notes to Financial Statements
 
24

Statement of Operations
March 31, 2024
 
Year Ended March 31, 2024
  
NBB
 
INVESTMENT INCOME
  
Interest
   $ 39,241,024  
Total investment income
     39,241,024  
EXPENSES
  
Management fees
     4,797,801  
Shareholder servicing agent fees
     1,040  
Interest expense
     12,618,654  
Trustees fees
     25,902  
Custodian expenses
     54,636  
Investor relations expenses
     48,938  
Professional fees
     91,419  
Shareholder reporting expenses
     70,873  
Stock exchange listing fees
     9,005  
Other
     28,630  
Total expenses
     17,746,898  
Net investment income (loss)
  
 
21,494,126
 
REALIZED AND UNREALIZED GAIN (LOSS)
  
Realized gain (loss) from:
  
Investments
     (1,399,476
Futures contracts
     20,413,916  
   
Net realized gain (loss)
     19,014,440  
Change in unrealized appreciation (depreciation) on:
  
Investments
     (13,626,790
Futures contracts
     5,132,276  
Net change in unrealized appreciation (depreciation)
     (8,494,514
Net realized and unrealized gain (loss)
     10,519,926  
Net increase (decrease) in net assets applicable to common shares from operations
  
$
   32,014,052
 
 
See Notes to Financial Statements
 
25

Statement of Changes in Net Assets
 
   
NBB
 
 
Year Ended
3/31/24
    
Year Ended
3/31/23
   
OPERATIONS
      
Net investment income (loss)
  $ 21,494,126      $ 27,593,470    
Net realized gain (loss)
    19,014,440        51,230,980    
Net change in unrealized appreciation (depreciation)
    (8,494,514      (131,077,896    
Net increase (decrease) in net assets applicable to common shares from operations
    32,014,052        (52,253,446    
DISTRIBUTIONS TO COMMON SHAREHOLDERS
      
Dividends
    (37,980,419      (33,333,983  
Return of Capital
    (829,472         
       
Total distributions
    (38,809,891      (33,333,983    
CAPITAL SHARE TRANSACTIONS
      
Common shares:
      
Proceeds from shelf offering, net of offering costs
    (2,684      14,065,606    
Reinvestments of distributions
           212,304      
Net increase (decrease) applicable to common shares from capital share transactions
    (2,684      14,277,910      
Net increase (decrease) in net assets applicable to common shares
    (6,798,523      (71,309,519    
Net assets applicable to common shares at the beginning of the period
    500,777,400        572,086,919    
       
Net assets applicable to common shares at the end of the period
 
$
   493,978,877
 
  
$
   500,777,400
 
   
 
See Notes to Financial Statements
 
26

Statement of Cash Flows
March 31, 2024
 
Year Ended March 31, 2024
  
NBB
 
CASH FLOWS FROM OPERATING ACTIVITIES
  
Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations
   $ 32,014,052  
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
     (38,102,630
Proceeds from sale and maturities of investments
     15,522,154  
Proceeds from (Purchase of) short-term investments, net
     4,227,543  
Amortization (Accretion) of premiums and discounts, net
     2,172,961  
(Increase) Decrease in:
  
Receivable for interest
     (79,570
Receivable for investments sold
     595,772  
Other assets
     29,155  
Increase (Decrease) in:
  
Payable for interest
     (749,166
Payable for investments purchased - regular settlement
     (4,362,043
Payable for variation margin on futures contracts
     (1,344,188
Payable for management fees
     4,475  
Accrued custodian fees
     (27,406
Accrued investor relations fees
     4,163  
Accrued Trustees fees
     (29,377
Accrued professional fees
     (25,101
Accrued shareholder reporting expenses
     (7,475
Accrued shareholder servicing agent fees
     490  
Accrued shelf offering costs
     (33,176
Accrued other expenses
     (8,787
Net realized (gain) loss from investments
     1,399,476  
Net change in unrealized (appreciation) depreciation of investments
     13,626,790  
Net cash provided by (used in) operating activities
     24,828,112  
CASH FLOWS FROM FINANCING ACTIVITIES
  
Proceeds from reverse repurchase agreements
     1,010,000,000  
(Repayments of) reverse repurchase agreements
     (1,000,000,000
Increase (Decrease) in:
  
Cash overdraft
     879,497  
Cash distributions paid to common shareholders
     (38,764,545
Net cash provided by (used in) financing activities
     (27,885,048
Net increase (decrease) in Cash Collateral at Brokers
  
 
(3,056,936
)
 
Cash Collateral at Brokers at the beginning of period
     9,673,990  
Cash Collateral at Brokers at the end of period
   $ 6,617,054  
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  
 
NBB
 
Cash paid for interest
   $   13,290,549  
 
See Notes to Financial Statements
 
27

 
Financial Highlights
The following data is for a common share outstanding for each fiscal year end unless otherwise noted:
 
           
Investment Operations
    
Less Distributions to

Common Shareholders
    
Common Share
 
     
Common
Share
Net Asset
Value,
Beginning
of Period
    
Net
Investment
Income (NII)
(Loss)(a)
    
Net
Realized/
Unrealized
Gain (Loss)
    
Total
    
From
NII
    
From Net
Realized
Gains
    
Return of
Capital
    
Total
    
Shelf
Offering
Costs
    
Premium
per
Share
Sold
through
Shelf
Offering
    
Net Asset
Value,
End of
Period
    
Share
Price,
End of
Period
 
NBB
                                                                                                           
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)        –(d)        0.01        20.00        19.99  
3/31/21
     19.89        1.18        2.16        3.34        (1.13)                      (1.13)        –(d)        0.01        22.11        22.59  
3/31/20
     21.35        1.11        (1.39)        (0.28)        (1.17)               (0.01)        (1.18)                      19.89        19.15  
 
(a)
Based on average shares outstanding.
(b)
Total Return Based on Common Share NAV is the combination of changes in common share NAV, reinvested dividend income at Common Share NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore may be different from the price used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Price is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
28

 
           
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
                         
 
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  
    (1.74)     (1.44)     544,173   1.83     5.05     16  
 
(c)
• Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to borrowings and/or 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 borrowings and/or 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:
 
   
      
Ratios of Interest
Expense to
Average Net Assets
Applicable
to Common Shares
      
NBB
  3/31/24    2.58%
  3/31/23    1.57
  3/31/22    0.32
  3/31/21    0.39
  3/31/20    0.85
 
(d)
 Value rounded to zero.
 
See Notes to Financial Statements
 
29

Notes to Financial Statements
 
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 diversified,
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 March 31, 2024, and the period covered by these Notes to Financial Statements is the fiscal year ended March 31, 2024 (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.
Developments Regarding the Fund’s Control Share
By-Law:
On October 5, 2020, the Fund and certain other
closed-end
funds in the Nuveen fund complex amended their
by-laws.
Among other things, the amended
by-laws
included provisions pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares in a Control Share Acquisition (as defined in the
by-laws)
shall have the same voting rights as other common shareholders only to the extent authorized by the other disinterested shareholders (the “Control Share
By-Law”).
On January 14, 2021, a shareholder of certain Nuveen
closed-end
funds filed a civil complaint in the U.S. District Court for the Southern District of New York (the “District Court”) against certain Nuveen funds and their trustees, seeking a declaration that such funds’ Control Share
By-Laws
violate the 1940 Act, rescission of such fund’s Control Share
By-Laws
and a permanent injunction against such funds applying the Control Share
By-Laws.
On February 18, 2022, the District Court granted judgment in favor of the plaintiff’s claim for rescission of such funds’ Control Share
By-Laws
and the plaintiff’s declaratory judgment claim, and declared that such funds’ Control Share
By-Laws
violate Section 18(i) of the 1940 Act. Following review of the judgment of the District Court, on February 22, 2022, the Fund’s Board of Trustees (the “Board”) amended the Fund’s bylaws to provide that the Fund’s Control Share
By-Law
shall be of no force and effect for so long as the judgment of the District Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or otherwise nullified, the Fund’s Control Share
By-Law
will be automatically reinstated and apply to any beneficial owner of common shares acquired in a Control Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement, for the duration of the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of the District Court. On February 25, 2022, the Board and the Fund appealed the District Court’s decision to the U.S. Court of Appeals for the Second Circuit. On November 30, 2023, the U.S. Court of Appeals for the Second Circuit upheld the opinion of the District Court. On February 28, 2024, the Board of the Funds Amended and Restated
By-Laws
to eliminate the “control share” provisions.
 
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 shareholder transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing security and shareholder transactions. The following is a summary of the significant accounting policies consistently followed by the 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 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 Funds’ 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). Each Fund intends to distribute all or substantially all of its net investment income 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, a Fund may distribute more or less than its net investment income during the period. In the event a 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.
 
30

 
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 reporting period, if any, are further described later in these Notes to 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.
Repurchase agreements are valued at contract amount plus accrued interest, which approximates market value. 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 reporting period, based on the inputs used to value them:
 
31

Notes to Financial Statements 
(continued)
 
NBB
  
Level 1
   
Level 2
    
Level 3
    
Total
 
Long-Term Investments:
          
Municipal Bonds
   $        –     $ 711,277,318      $      $ 711,277,318  
Short-Term Investments:
          
Repurchase Agreements
           1,425,000               1,425,000  
Investments in Derivatives:
          
Futures Contracts*
     (3,121,899                   (3,121,899
Total
   $ (3,121,899   $    712,702,318      $         –      $   709,580,419  
 
*
Represents net unrealized appreciation (depreciation) as reported in Fund’s Portfolio of Investments.
The Fund holds liabilities in floating rate obligations, which are not reflected in the table above. The fair values of the Fund’s liabilities for floating rate obligations approximate their liquidation values. Floating rate obligations 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 reporting 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.
 
32

 
As of the end of the reporting 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:
 
Fund
  
Floating Rate
Obligations: Self-
Deposited
Inverse Floaters
    
Floating Rate
Obligations:
Externally-Deposited
Inverse Floaters
    
Total
 
NBB
   $      36,810,000       $     103,190,000       $     140,000,000   
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
  
Average Floating
Rate Obligations
Outstanding
    
Average Annual
Interest Rate
And Fees
 
NBB
   $     36,810,000         3.87%  
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 reporting 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 reporting 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:
 
Fund
  
Maximum Exposure
to Recourse Trusts:
Self-Deposited
Inverse Floaters
   
Maximum Exposure
to Recourse Trusts:
Externally-Deposited
Inverse Floaters
   
Total
 
NBB
   $      36,810,000       $      103,190,000       $      140,000,000   
Repurchase Agreements:
In connection with transactions in repurchase agreements, it is the Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the counterparty defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
The following table presents the repurchase agreements for the Fund that are subject to netting agreements as of the end of the reporting period, and the collateral delivered related to those repurchase agreements.
 
Fund
  
Counterparty
  
Short-term
Investments,
at Value
    
Collateral
Pledged (From)
Counterparty
 
NBB
   Fixed Income Clearing Corporation      $ 1,425,000        $ (1,453,512
 
33

Notes to Financial Statements 
(continued)
 
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:
 
Fund
  
Non-U.S.
Government
Purchases
   
Non-U.S.
Government Sales
and Maturities
 
NBB
   $   38,102,630      $    15,522,154   
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 reporting 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.
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:
 
Fund
  
Average Notional Amount of Futures
Contracts Outstanding
*
NBB
   $146,580,294
 
*
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.
As of the end of the reporting period, the Fund invested in derivative contracts which are reflected in the Statement of Assets and Liabilities as follows:
 
         
Asset Derivatives
           
Liability Derivatives
     
 
       
 
 
Derivative Instrument
  
Risk Exposure
  
Location
  
    Value
           
Location
  
Value
 
 
 
     
 
 
NBB
                 
Futures Contracts
   Interest rate    -      $–         Unrealized depreciation on futures contracts
*
   $ (3,121,899
 
 
 
*
The fair value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected in the accompanying Statements of Assets and Liabilities is only the receivable or payable for variation margin on open futures contacts.
During the current fiscal period, the effect of derivative contracts on the Fund’s Statement of Operations was as follows:
 
34

 
Derivative Instrument
  
Risk Exposure
  
Net Realized Gain
(Loss)
    
Change in
Unrealized
Appreciation
(Depreciation)
NBB
        
Futures contracts
   Interest rate      $20,413,916      $5,132,276
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 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 prior fiscal periods.
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 fiscal period were as follows:
 
    
NBB
 
 
  
Year Ended
3/31/24
   
Year Ended
3/31/23
 
Maximum aggregate offering
   $ 162,000,000     $ 162,000,000  
Common shares sold
           772,413  
Offering proceeds, net of offering costs
   $ (2,684   $ 14,065,606  
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:
Transactions in common shares during the Fund’s current and prior fiscal period, where applicable were as follows:
 
    
NBB
 
     
Year Ended
3/31/24
   
Year Ended
3/31/23
 
Common Shares:
    
Sold through shelf offering
           772,413  
Issued to shareholders due to reinvestment of distributions
           11,822  
Total
           784,235  
Weighted average common share:
    
Premium to NAV per shelf offering common share sold
     –%       1.65%  
 
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.
 
35

Notes to Financial Statements 
(continued)
 
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.
Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing gains and losses on investment transactions. Temporary differences do not require reclassification. As of year end, permanent differences that resulted in reclassifications among the components of net assets relate primarily to bond premium amortization adjustments and taxable overdistribution. Temporary and permanent differences have no impact on a Fund’s net assets.
As of year end, the aggregate cost and the net unrealized appreciation/(depreciation) of all investments for federal income tax purposes were as follows:
 
Fund
  
Tax Cost
    
Gross Unrealized
Appreciation
    
Gross
Unrealized
(Depreciation)
   
Net 
Unrealized 
Appreciation 
(Depreciation) 
 
NBB
   $    701,729,948      $      39,918,824      $      (68,879,553   $      (28,960,729)   
For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as
up-front
fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized income and/or capital gains for tax reporting, if applicable.
As of year end, the components of accumulated earnings on a tax basis were as follows:
 
Fund
  
Undistributed
Ordinary
Income
    
Undistributed
Long-Term
Capital Gains
    
Unrealized
Appreciation
(Depreciation)
   
Capital Loss
Carryforwards
    
Late-Year Loss

Deferrals
   
Other
Book-to-Tax

Differences
   
Total 
 
NBB
   $        -      $        -      $    (28,960,729   $        -      $    (14,590,192   $     (2,160,514   $    (45,711,435)   
The tax character of distributions paid was as follows:
 
    
3/31/24
    
3/31/23
 
  
 
 
    
 
 
 
Fund
  
Ordinary
Income
    
Long-Term

Capital Gains
    
Return
of Capital
    
Ordinary
Income
    
Long-Term

Capital Gains
    
Return
of Capital
 
NBB
   $   37,980,419      $        -      $    829,472      $   33,333,983      $        -      $       -  
As of year end, the Fund utilized the following capital loss carryforwards:
 
Fund
  
Utilized 
 
NBB
   $    24,309,292   
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.
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 schedules:
 
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  
 
36

 
The annual complex-level fee, payable monthly, is calculated by multiplying the current complex-wide fee rate, determined according to the following schedule by the Fund’s daily managed assets:
 
Complex-Level Eligible Asset Breakpoint Level*
  
Effective Complex-Level Fee Rate at Breakpoint Level
 
$55 billion
     0.2000
$56 billion
     0.1996  
$57 billion
     0.1989  
$60 billion
     0.1961  
$63 billion
     0.1931  
$66 billion
     0.1900  
$71 billion
     0.1851  
$76 billion
     0.1806  
$80 billion
     0.1773  
$91 billion
     0.1691  
$125 billion
     0.1599  
$200 billion
     0.1505  
$250 billion
     0.1469  
$300 billion
     0.1445  
 
*
For the complex-level fees, managed assets include
closed-end
fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen
open-end
and
closed-end
funds that constitute ‘’eligible assets.”Eligible assets do not include assets attributable to investments in other Nuveen funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011, but do not include certain assets of certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar year. As of March 31, 2024, the complex-level fee for the Fund was as follows:
 
Fund
  
Complex-Level Fee
 
NBB
     0.1600
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 reporting 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 reporting 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.
Each 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.
 
37

Notes to Financial Statements 
(continued)
 
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 reporting period, the Fund’s outstanding balances on its reverse repurchase agreements were as follows:
 
Fund
        
Counterparty
  
Rate
    
Principal
Amount
    
 Maturity
    
Value
    
Value and Accrued
Interest
 
NBB
           RBC Capital Markets, LLC      5.93%        $(123,000,000)        4/26/24        $(123,000,000)        $(123,121,565)  
NBB
  
 
   TD Securities (USA), LLC      5.85%        (43,000,000)        4/17/24        (43,000,000)        (43,517,075)  
NBB
  
 
   Wells Fargo Securities, LLC      5.85%        (30,950,000)        4/11/24        (30,950,000)        (31,346,073)  
Total
  
 
  
 
  
 
 
 
  
 
$(196,950,000)
 
  
 
 
 
  
 
$(196,950,000)
 
  
 
$(197,984,713)
 
During the current fiscal period, the average daily balance outstanding (which was for the entire current reporting period) and average interest rate on the Fund’s reverse repurchase agreements were as follows:
 
Fund
  
Utilization
Period (Days
Outstanding)
    
Average
Daily Balance
Outstanding
    
Average Annual
Interest Rate
 
NBB
     366       $    189,310,656        5.87%  
The following table presents the reverse repurchase agreements subject to netting agreements and the collateral delivered related to those reverse repurchase agreements.
 
Fund
  
Counterparty
  
Reverse
Repurchase
Agreements*
    
Collateral
Pledged to
Counterparty
NBB
   RBC Capital Markets, LLC    $     (123,121,565    $    148,264,061
NBB
   TD Securities (USA), LLC      (43,517,075    56,648,500
NBB
   Wells Fargo Securities, LLC      (31,346,073    42,675,882
Total
  
 
     (197,984,713    247,588,443
* Represents gross value and accrued interest for the counterparty as reported in the preceding table.
11. Inter-Fund 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.
The limitations detailed above and the other conditions of the SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
During the current reporting period, the Fund did not enter into any inter-fund loan activity.
 
38

 
12. Subsequent Events
Management Fees:
 
As of May 1, 2024, each Fund’s overall complex-level fee begins at a maximum rate of 0.1600% of each Fund’s average daily managed assets, with breakpoints for eligible complex-level assets above $124.3 billion. Therefore, the maximum management fee rate for each Fund is the fund-level fee listed within this report plus 0.1600%. The overall complex-level fee schedule is as follows:
 
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  
 
*
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.
 
39

 
 
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40

Shareholder Update
(Unaudited)
 
CURRENT INVESTMENT OBJECTIVES, INVESTMENT POLICIES AND PRINCIPAL RISKS OF THE FUND
NUVEEN TAXABLE MUNICIPAL INCOME FUND (NBB)
Investment Objective
The Fund’s primary investment objective is to provide current income through investments in taxable municipal securities. As a secondary objective, the Fund seeks to enhance portfolio value and total return.
Investment Policies
Under normal circumstances, the Fund will invest at least 80% of its Assets (as defined below) in taxable municipal securities. The Fund may invest up to 20% of its Assets in securities other than taxable municipal securities, including municipal securities the interest income from which is exempt from regular federal income tax (sometimes referred to as
“tax-exempt
municipal securities”), U.S. Treasury securities and obligations of the U.S. Government, its agencies and instrumentalities.
“Assets” mean the net assets of the Fund plus the amount of any borrowings for investment purposes. “Managed Assets” mean the total assets of the Fund, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the express purpose of creating leverage). Total assets for this purpose shall include assets attributable to the Fund’s use of leverage (whether or not those assets are reflected in the Fund’s financial statements for purposes of generally accepted accounting principles), and derivatives will be valued at their market value.
Under normal circumstances:
 
 
·
 
The Fund will invest at least 80% of its Managed Assets in municipal securities that, at the time of investment, are rated within the four highest grades (Baa or BBB or better) by at least one nationally recognized statistical rating organization (an “NRSRO”) or are unrated but judged to be of comparable quality by the Fund’s
sub-adviser.
 
 
·
 
The Fund may invest up to 20% of its Managed Assets in municipal securities that at the time of investment are rated below investment grade or are unrated but judged to be of comparable quality by the Fund’s
sub-adviser.
 
 
·
 
The Fund will not invest more than 25% of its Managed Assets in municipal securities in any one industry or in any one state of origin.
 
 
·
 
The Fund may invest up to 20% of its total assets in certain derivative instruments to enhance returns. Such derivatives include financial futures contracts, swap contracts (including interest rate and credit default swaps), options on financial futures, options on swap contracts, or similar instruments. This limit will apply to the investment exposure created by those derivative instruments. Inverse floating rate securities are not regarded as derivatives for this purpose. The Fund’s
sub-adviser
may also use derivative instruments to hedge some of the risk of the Fund’s investments in municipal securities, and such derivatives are not subject to this policy.
 
 
·
 
The Fund may invest up to 10% of its Managed Assets in securities of other open- or
closed-end
investment companies (including exchange-traded funds (“ETFs”)) that invest primarily in municipal securities of the types in which the Fund may invest directly.
 
 
·
 
The Fund will generally maintain an investment portfolio with an overall weighted average maturity of greater than 10 years.
The foregoing policies apply only at the time of any new investment.
Approving Changes in Investment Policies
The Board of Trustees of the Fund may change the policies described above without a shareholder vote. However, the Fund’s investment objectives may not be changed without the approval of the holders of a majority of the outstanding common shares and preferred shares voting together as a single class, and the approval of the holders of a majority of the outstanding preferred shares, voting separately as a single class. A “majority of the outstanding” shares means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy or (ii) more than 50% of the shares, whichever is less.
Additionally, with respect to the Fund’s policy of investing at least 80% of its Assets in taxable municipal securities, such policy may not be changed without 60 days’ prior notice to shareholders.
Portfolio Contents
The Fund generally invests in taxable municipal securities (including Build America Bonds (“BABs”)) and
tax-exempt
municipal securities, including municipal bonds, notes, securities issued to finance and refinance public projects, certificates of participation, variable rate demand obligations, lease obligations, municipal notes,
pre-refunded
municipal bonds, private activity bonds, securities issued by tender option bond trusts (“TOB trusts”), including inverse floating rate securities, and other forms of municipal bonds and securities, and other related instruments that create exposure to municipal bonds, notes and securities.
Municipal securities are debt obligations generally issued by states, cities and local authorities and certain possessions and territories of the United States (such as Puerto Rico and Guam) to finance or refinance public purpose projects such as roads, schools, and water supply systems.
 
41

Shareholder Update
(Unaudited)
 
(continued)
 
BABs are taxable municipal obligations issued pursuant to the American Recovery and Reinvestment Act of 2009 that are subject to federal subsidies of up to 35% of the interest payable on the bonds in the form of direct subsidies to the bond issuer or refundable tax credits to the bond holder. Build America Bonds are not guaranteed by the U.S. government or its agencies or instrumentalities.
The Fund may invest in municipal securities that represent lease obligations and certificates of participation in such leases. A municipal lease is an obligation in the form of a lease or installment purchase that is issued by a state or local government to acquire equipment and facilities. Income from such obligations generally is exempt from state and local taxes in the state of issuance. A certificate of participation represents an undivided interest in an unmanaged pool of municipal leases, an installment purchase agreement or other instruments. The certificates typically are issued by a municipal agency, a trust or other entity that has received an assignment of the payments to be made by the state or political subdivision under such leases or installment purchase agreements. Such certificates provide the Fund with the right to a pro rata undivided interest in the underlying municipal securities. In addition, such participations generally provide the Fund with the right to demand payment, on not more than seven days’ notice, of all or any part of the Fund’s participation interest in the underlying municipal securities, plus accrued interest.
The Fund may invest in municipal notes. Municipal securities in the form of notes generally are used to provide for short-term capital needs, in anticipation of an issuer’s receipt of other revenues or financing, and typically have maturities of up to three years. Such instruments may include tax anticipation notes, revenue anticipation notes, bond anticipation notes, tax and revenue anticipation notes and construction loan notes. Tax anticipation notes are issued to finance the working capital needs of governments. Generally, they are issued in anticipation of various tax revenues, such as income, sales, property, use and business taxes, and are payable from these specific future taxes. Revenue anticipation notes are issued in expectation of receipt of other kinds of revenue, such as federal revenues available under federal revenue sharing programs. Bond anticipation notes are issued to provide interim financing until long-term bond financing can be arranged. In most cases, the long-term bonds then provide the funds needed for repayment of the bond anticipation notes. Tax and revenue anticipation notes combine the funding sources of both tax anticipation notes and revenue anticipation notes. Construction loan notes are sold to provide construction financing. Mortgage notes insured by the Federal Housing Authority secure these notes; however, the proceeds from the insurance may be less than the economic equivalent of the payment of principal and interest on the mortgage note if there has been a default. The anticipated revenues from taxes, grants or bond financing generally secure the obligations of an issuer of municipal notes.
The Fund may invest in
pre-refunded
municipal securities. The principal of and interest on
pre-refunded
municipal securities are no longer paid from the original revenue source for the securities. Instead, the source of such payments is typically an escrow fund consisting of U.S. government securities. The assets in the escrow fund are derived from the proceeds of refunding bonds issued by the same issuer as the
pre-refunded
municipal securities. Issuers of municipal securities use this advance refunding technique to obtain more favorable terms with respect to securities that are not yet subject to call or redemption by the issuer. For example, advance refunding enables an issuer to refinance debt at lower market interest rates, restructure debt to improve cash flow or eliminate restrictive covenants in the indenture or other governing instrument for the
pre-refunded
municipal securities. However, except for a change in the revenue source from which principal and interest payments are made, the
pre-refunded
municipal securities remain outstanding on their original terms until they mature or are redeemed by the issuer.
The Fund may invest in private activity bonds. Private activity bonds are issued by or on behalf of public authorities to obtain funds to provide privately operated housing facilities, airport, mass transit or port facilities, sewage disposal, solid waste disposal or hazardous waste treatment or disposal facilities and certain local facilities for water supply, gas or electricity. Other types of private activity bonds, the proceeds of which are used for the construction, equipment, repair or improvement of privately operated industrial or commercial facilities, may constitute municipal securities, although the current federal tax laws place substantial limitations on the size of such issues.
The Fund may invest in inverse floating rate securities issued by a TOB trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. Typically, inverse floating rate securities represent beneficial interests in a special purpose trust (sometimes called a TOB trust) formed by a third party sponsor for the purpose of holding municipal bonds. Inverse floating rate securities may increase or decrease in value at a greater rate than the underlying interest rate on the municipal bond held by the TOB trust, which effectively leverages the Fund’s investment.
The Fund may invest in floating rate securities issued by special purpose trusts. Floating rate securities may take the form of short-term floating rate securities or the option period may be substantially longer. Generally, the interest rate earned will be based upon the market rates for municipal securities with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option, which may vary from weekly, to monthly, to extended periods of one year or multiple years. Since the option feature has a shorter term than the final maturity or first call date of the underlying bond deposited in the trust, the Fund as the holder of the floating rate security relies upon the terms of the agreement with the financial institution furnishing the option as well as the credit strength of that institution. As further assurance of liquidity, the terms of the trust provide for a liquidation of the municipal security deposited in the trust and the application of the proceeds to pay off the floating rate security. The trusts that are organized to issue both short-term floating rate securities and inverse floaters generally include liquidation triggers to protect the investor in the floating rate security.
The Fund may invest in municipal securities issued by special taxing districts. Special taxing districts are organized to plan and finance infrastructure developments to induce residential, commercial and industrial growth and redevelopment. The bond financing methods such as tax increment finance, tax assessment, special services district and Mello-Roos bonds, are generally payable solely from taxes or other revenues attributable to the specific projects financed by the bonds without recourse to the credit or taxing power of related or overlapping municipalities.
The Fund may invest in zero coupon bonds. A zero coupon bond is a bond that typically does not pay interest for the entire life of the obligation or for an initial period after the issuance of the obligation.
The Fund may buy and sell securities on a when-issued or delayed delivery basis, making payment or taking delivery at a later date, normally within 15 to 45 days of the trade date.
 
42

 
The Fund may utilize structured notes and similar instruments for investment purposes and also for hedging purposes. Structured notes are privately negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a benchmark asset, market or interest rate (an “embedded index”), such as selected securities, an index of securities or specified interest rates, or the differential performance of two assets or markets.
The Fund may invest in illiquid securities (i.e., securities that are not readily marketable), including, but not limited to, restricted securities (securities the disposition of which is restricted under the federal securities laws), securities that may be resold only pursuant to Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and repurchase agreements with maturities in excess of seven days.
The Fund may enter into certain derivative instruments in pursuit of its investment objectives, including to seek to enhance return, to hedge certain risks of its investments in municipal securities or as a substitute for a position in the underlying asset. Such instruments include financial futures contracts, swap contracts (including interest rate swaps and credit default swaps), options on financial futures, options on swap contracts or other derivative instruments.
The Fund may also invest in securities of other open- or
closed-end
investment companies (including ETFs) that invest primarily in municipal securities of the types in which the Fund may invest directly, to the extent permitted by the Investment Company Act of 1940, as amended (the “1940 Act”), the rules and regulations issued thereunder and applicable exemptive orders issued by the Securities and Exchange Commission (“SEC”).
Use of Leverage
The Fund uses leverage to pursue its investment objectives. The Fund may use leverage to the extent permitted by the 1940 Act. The Fund may source leverage through a number of methods, including borrowings (including loans from financial institutions), issuances of debt securities and issuances of preferred shares of beneficial interest. The Fund may also use other forms of leverage including, but not limited to, reverse repurchase agreements and portfolio investments that have the economic effect of leverage, including, but not limited to, investments in inverse floating rate securities of TOB trusts.
Integrated Leverage and Hedging Strategy
The Fund employs an integrated leverage and hedging strategy to seek to enhance its potential current income and longer-term risk-adjusted total return, while seeking to maintain a level of interest rate risk comparable to that of the Bloomberg Barclays Taxable Municipal Long Bond Index (the “Index”). The Fund uses leverage instruments that will have a funding cost based on short- to intermediate-term market interest rates. Because such interest rates are expected to be generally lower than the yields on the long-term bonds in which the Fund invests, the Fund’s
sub-adviser
believes that the use of leverage will generally increase common share net income.
The Fund’s leverage and hedging techniques are referred to as integrated because the Fund’s use of hedging strategies is expected to be directly calibrated to any increased interest rate risk, relative to the Fund’s benchmark, due to the use of leverage.
The Fund’s use of derivatives such as bond futures or interest rate swaps in hedging interest rate risk will generate costs that will effectively reduce the Fund’s net asset value (“NAV”). These capital costs may be offset over time by capital appreciation of the Fund’s portfolio. The potential to achieve such capital appreciation will depend largely on the
sub-adviser’s
investment capabilities in executing the Fund’s investment strategy as well as the performance of taxable municipal securities relative to the securities underlying the Fund’s hedging instruments. If and to the extent that such capital appreciation does not occur or is less than these hedging costs, however, the Fund’s total returns can be expected to be less than its net earnings (and, over time, distributions).
Temporary Defensive Periods
During temporary defensive periods (e.g., times when, in the Fund’s investment adviser’s and/or the Fund’s
sub-adviser’s
opinion, temporary imbalances of supply and demand or other temporary dislocations in the taxable bond market adversely affect the price at which long-term or intermediate-term municipal securities are available), the Fund may invest up to 100% of its Managed Assets in short-term investments, including high quality, short-term securities that may be either
tax-exempt
or taxable, or may invest in short-, intermediate-, or long-term U.S. Treasury Bonds.
 
43

Shareholder Update
(Unaudited)
 
(continued)
 
PRINCIPAL RISKS OF THE FUND
The factors that are most likely to have a material effect on the Fund’s portfolio as a whole are called “principal risks.” The Fund is subject to the principal risks indicated below, whether through direct investment or derivative positions. The Fund may be subject to additional risks other than those identified and described below because the types of investments made by the Fund can change over time.
Risks of NBB
 
Portfolio Level Risks
 
 
Below Investment Grade Risk
Build America Bonds (“BABs”) Risk
Call Risk
Credit Risk
Credit Spread Risk
Defaulted or Distressed Securities Risk
Deflation Risk
Derivatives Risk
Duration Risk
Economic Sector Risk
Financial Futures and Options Transactions Risk
Hedging Risk
Illiquid Investments Risk
Income Risk
Inflation Risk
Insurance Risk
Interest Rate Risk
Inverse Floating Rate Securities Risk
Municipal Securities Market Liquidity Risk
Municipal Securities Market Risk
Other Investment Companies Risk
Reinvestment Risk
Special Risks Related to Certain Municipal Obligations
Swap Transactions Risk
Unrated Securities Risk
Valuation Risk
Zero Coupon Bonds Risk
Fund Level and Other Risks
 
 
Anti-Takeover Provisions
Counterparty Risk
Cybersecurity Risk
Economic and Political Events Risk
Fund Tax Risk
Global Economic Risk
Investment and Market Risk
Legislation and Regulatory Risk
Leverage Risk
 
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Portfolio Level Risks
 
Market Discount from Net Asset Value
Recent Market Conditions
Reverse Repurchase Agreement Risk
 
45

Shareholder Update
(Unaudited)
 
(continued)
 
Portfolio Level Risks:
Below Investment Grade Risk.
Municipal securities of below investment grade quality are regarded as having speculative characteristics with respect to the issuer’s capacity to pay dividends or interest and repay principal, and may be subject to higher price volatility and default risk than investment grade municipal securities of comparable terms and duration. Issuers of lower grade municipal securities may be highly leveraged and may not have available to them more traditional methods of financing. The prices of these lower grade securities are typically more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn. The secondary market for lower rated municipal securities may not be as liquid as the secondary market for more highly rated municipal securities, a factor which may have an adverse effect on the Fund’s ability to dispose of a particular municipal security. If a below investment grade municipal security goes into default, or its issuer enters bankruptcy, it might be difficult to sell that security in a timely manner at a reasonable price.
Build America Bonds (“BABs”) Risk.
BABs are taxable municipal obligations issued pursuant to the American Recovery and Reinvestment Act of 2009 that are subject to federal subsidies of up to 35% of the interest payable on the bonds in the form of direct subsidies to the bond issuer or refundable tax credits to the bond holder. BABs are not guaranteed by the U.S. government or its agencies or instrumentalities. While the federal subsidy continues for the life of the bonds, provided that the issuer continues to meet all applicable program eligibility requirements, there is no assurance that the federal subsidy will be continued at original levels. Under the sequestration process under the Budget Control Act of 2011, automatic spending cuts that became effective on March 1, 2013 reduced the federal subsidy for BABs and other subsidized taxable municipal bonds. The reduced federal subsidy has been extended through 2030. The subsidy payments were reduced by 6.6% in 2018 and 6.2% in 2019, 5.9% in 2020 and 5.7% between 2021 and 2030. Further decreases in the level of the subsidy may impair the ability of issuers to make interest payments when due.
BABs were an alternative form of financing to state and local governments whose primary means for accessing the capital markets had been through issuance of tax free municipal bonds. Pursuant to the terms of the American Recovery and Reinvestment Act of 2009, the issuance of BABs ceased on December 31, 2010. As a result, the availability of such bonds is limited and there can be no assurance that BABs will be actively traded. The market for the bonds and/or their liquidity may be negatively affected. Changes to the U.S. federal income tax laws or other federal legislation may affect the demand for and supply of taxable municipal bonds, including BABs, and/or trigger extraordinary call features of the BABs. The extraordinary call features of certain BABs permit early redemption at par value, which, if triggered, could result in potential losses for the Fund if such BABs were purchased at prices above par, and may require the Fund to reinvest redemption proceeds in lower-yielding securities.
BABs involve similar risks as traditional municipal bonds, including credit, call and market risk. Because certain states, including California, New York, Illinois, Texas and Ohio, were heavy issuers of BABs, the Fund may have a greater exposure to the economic or other factors affecting such states than a more diversified national municipal bond fund. In addition, should a BAB’s issuer fail to continue to meet the applicable requirements, it is possible that such issuer may not receive federal cash subsidy payments, impairing the issuer’s ability to make scheduled interest payments. BABs may be subject to greater reinvestment risk, which is the risk that the Fund is unable to invest in bonds with similar yields, as BABs with attractive above-market purchase yields mature or are called.
Call Risk.
 
The Fund may invest in municipal securities that are subject to call risk. Such municipal securities may be redeemed at the option of the issuer, or “called,” before their stated maturity or redemption date. In general, an issuer will call its instruments if they can be refinanced by issuing new instruments that bear a lower interest rate. The Fund is subject to the possibility that during periods of falling interest rates, an issuer will call its high yielding municipal securities. The Fund would then be forced to invest the unanticipated proceeds at lower interest rates, resulting in a decline in the Fund’s income.
Credit Risk.
Issuers of municipal securities in which the Fund may invest may default on their obligations to pay principal or interest when due. This
non-payment
would result in a reduction of income to the Fund, a reduction in the value of a municipal security experiencing
non-payment
and potentially a decrease in the net asset value (“NAV”) of the Fund. To the extent that the credit rating assigned to a municipal security in the Fund’s portfolio is downgraded, the market price and liquidity of such security may be adversely affected.
Credit Spread Risk.
 
Credit spread risk is the risk that credit spreads (i.e., the difference in yield between securities that is due to differences in their credit quality) may increase when the market believes that municipal securities generally have a greater risk of default. Increasing credit spreads may reduce the market values of the Fund’s securities. Credit spreads often increase more for lower rated and unrated securities than for investment grade securities. In addition, when credit spreads increase, reductions in market value will generally be greater for longer-maturity securities.
Defaulted or Distressed Securities Risk.
Investments in “distressed” securities, meaning those whose issuers are experiencing financial difficulties or distress at the time of acquisition, present a substantial risk of future default. In the event distressed securities become defaulted securities or the Fund otherwise holds defaulted securities, the Fund may incur losses, including additional expenses, to the extent it is required to seek recovery upon a default in the payment of principal or interest on those securities. In any reorganization or liquidation proceeding relating to a portfolio security, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Defaulted or distressed securities may be subject to restrictions on resale.
Deflation Risk.
Deflation risk is the risk that prices throughout the economy decline over time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of the Fund’s portfolio.
Derivatives Risk.
The use of derivatives involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivative instruments can be used to acquire or to transfer the risk and returns of a municipal security or other asset without buying or selling the municipal security or asset. These instruments may entail investment exposures that are greater than their cost
 
46

 
would suggest. As a result, a small investment in derivatives can result in losses that greatly exceed the original investment. Derivatives can be highly volatile, illiquid and difficult to value. An
over-the-counter
derivative transaction between the Fund and a counterparty that is not cleared through a central counterparty also involves the risk that a loss may be sustained as a result of the failure of the counterparty to the contract to make required payments. The payment obligation for a cleared derivative transaction is guaranteed by a central counterparty, which exposes the Fund to the creditworthiness of the central counterparty. The use of certain derivatives involves leverage, which can cause the Fund’s portfolio to be more volatile than if the portfolio had not been leveraged. Leverage can significantly magnify the effect of price movements of the reference asset, disproportionately increasing the Fund’s losses and reducing the Fund’s opportunities for gains when the reference asset changes in unexpected ways. In some instances, such leverage could result in losses that exceed the original amount invested.
It is possible that regulatory or other developments in the derivatives market, including changes in government regulation, could adversely impact the Fund’s ability to invest in certain derivatives or successfully use derivative instruments.
Duration Risk.
 
Duration is the sensitivity, expressed in years, of the price of a fixed-income security to changes in the general level of interest rates (or yields). Securities with longer durations tend to be more sensitive to interest rate (or yield) changes, which typically corresponds to increased volatility and risk, than securities with shorter durations. For example, if a security or portfolio has a duration of three years and interest rates increase by 1%, then the security or portfolio would decline in value by approximately 3%. Duration differs from maturity in that it considers potential changes to interest rates, and a security’s coupon payments, yield, price and par value and call features, in addition to the amount of time until the security matures. The duration of a security will be expected to change over time with changes in market factors and time to maturity.
Economic Sector Risk.
The Fund may invest a significant amount of its total assets in municipal securities in the same economic sector. This may make the Fund more susceptible to adverse economic, political or regulatory occurrences affecting an economic sector making the Fund more vulnerable to unfavorable developments in that sector than funds that invest more broadly. As the percentage of the Fund’s Managed Assets invested in a particular sector increases, so does the potential for fluctuation in the value of the Fund’s assets. In addition, the Fund may invest a significant portion of its assets in certain sectors of the municipal securities market, such as health care facilities, private educational facilities, special taxing districts and
start-up
utility districts, and private activity bonds including industrial development bonds on behalf of transportation companies, whose credit quality and performance may be more susceptible to economic, business, political, regulatory and other developments than other sectors of municipal issuers. If the Fund invests a significant portion of its assets in one or more particular sectors, the Fund’s performance may be subject to additional risk and variability.
Financial Futures and Options Transactions Risk.
The Fund may use certain transactions for hedging the portfolio’s exposure to credit risk and the risk of increases in interest rates, which could result in poorer overall performance for the Fund. There may be an imperfect correlation between price movements of the futures and options and price movements of the portfolio securities being hedged.
If the Fund engages in futures transactions or in the writing of options on futures, it will be required to maintain initial margin and maintenance margin and may be required to make daily variation margin payments in accordance with applicable rules of the exchanges and the Commodity Futures Trading Commission (“CFTC”). If the Fund purchases a financial futures contract or a call option or writes a put option in order to hedge the anticipated purchase of municipal securities, and if the Fund fails to complete the anticipated purchase transaction, the Fund may have a loss or a gain on the futures or options transaction that will not be offset by price movements in the municipal securities that were the subject of the anticipatory hedge. There can be no assurance that a liquid market will exist at a time when the Fund seeks to close out a derivatives or futures or a futures option position, and the Fund would remain obligated to meet margin requirements until the position is closed.
Hedging Risk.
 
The Fund’s use of derivatives or other transactions to reduce risk involves costs and will be subject to the investment adviser’s and/or the
sub-adviser’s
ability to predict correctly changes in the relationships of such hedge instruments to the Fund’s portfolio holdings or other factors. No assurance can be given that the investment adviser’s and/or the
sub-adviser’s
judgment in this respect will be correct, and no assurance can be given that the Fund will enter into hedging or other transactions at times or under circumstances in which it may be advisable to do so. Hedging activities may reduce the Fund’s opportunities for gain by offsetting the positive effects of favorable price movements and may result in net losses.
Illiquid Investments Risk.
Illiquid investments are investments that are not readily marketable. These investments may include restricted investments, including Rule 144A securities, which cannot be resold to the public without an effective registration statement under the 1933 Act, or if they are unregistered may be sold only in a privately negotiated transaction or pursuant to an available exemption from registration. The Fund may not be able to readily dispose of such investments at prices that approximate those at which the Fund could sell such investments if they were more widely traded and, as a result of such illiquidity, the Fund may have to sell other investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting the Fund’s NAV and ability to make dividend distributions. The financial markets in general have in recent years experienced periods of extreme secondary market supply and demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value. During such periods, some investments could be sold only at arbitrary prices and with substantial losses. Periods of such market dislocation may occur again at any time.
Income Risk.
The Fund’s income could decline due to falling market interest rates. This is because, in a falling interest rate environment, the Fund generally will have to invest the proceeds from maturing portfolio securities in lower-yielding securities.
Inflation Risk.
Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the common shares and distributions can decline. Currently, inflation rates are elevated relative to normal market conditions and could increase.
 
47

Shareholder Update
(Unaudited)
 
(continued)
 
Insurance Risk.
The Fund may purchase municipal securities that are secured by insurance, bank credit agreements or escrow accounts. The credit quality of the companies that provide such credit enhancements will affect the value of those securities. Certain significant providers of insurance for municipal securities have incurred significant losses as a result of exposure to
sub-prime
mortgages and other lower credit quality investments. As a result, such losses reduced the insurers’ capital and called into question their continued ability to perform their obligations under such insurance if they are called upon to do so in the future. While an insured municipal security will typically be deemed to have the rating of its insurer, if the insurer of a municipal security suffers a downgrade in its credit rating or the market discounts the value of the insurance provided by the insurer, the value of the municipal security would more closely, if not entirely, reflect such rating. In such a case, the value of insurance associated with a municipal security may not add any value. The insurance feature of a municipal security does not guarantee the full payment of principal and interest through the life of an insured obligation, the market value of the insured obligation or the NAV of the common shares represented by such insured obligation.
Interest Rate Risk.
Interest rate risk is the risk that municipal securities in the Fund’s portfolio will decline in value because of changes in market interest rates. Generally, when market interest rates rise, the market value of such securities will fall, and vice versa. As interest rates decline, issuers of municipal securities may prepay principal earlier than scheduled, forcing the Fund to reinvest in lower-yielding securities and potentially reducing the Fund’s income. As interest rates increase, slower than expected principal payments may extend the average life of municipal securities, potentially locking in a below-market interest rate and reducing the Fund’s value. In typical market interest rate environments, the prices of longer-term municipal securities generally fluctuate more than prices of shorter-term municipal securities as interest rates change.
Inverse Floating Rate Securities Risk.
The Fund may invest in inverse floating rate securities. In general, income on inverse floating rate securities will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Investments in inverse floating rate securities may subject the Fund to the risks of reduced or eliminated interest payments and losses of principal. In addition, inverse floating rate securities may increase or decrease in value at a greater rate than the underlying interest rate, which effectively leverages the Fund’s investment. As a result, the market value of such securities generally will be more volatile than that of fixed rate securities.
The Fund may invest in inverse floating rate securities issued by special purpose trusts that have recourse to the Fund. In such instances, the Fund may be at risk of loss that exceeds its investment in the inverse floating rate securities.
The Fund may be required to sell its inverse floating rate securities at less than favorable prices, or liquidate other Fund portfolio holdings in certain circumstances, including, but not limited to, the following:
 
 
·
 
If the Fund has a need for cash and the securities in a special purpose trust are not actively trading due to adverse market conditions;
 
 
·
 
If special purpose trust sponsors (as a collective group or individually) experience financial hardship and consequently seek to terminate their respective outstanding special purpose trusts; and
 
 
·
 
If the value of an underlying security declines significantly and if additional collateral has not been posted by the Fund.
Municipal Securities Market Liquidity Risk.
Inventories of municipal securities held by brokers and dealers have decreased in recent years, lessening their ability to make a market in these securities. This reduction in market making capacity has the potential to decrease the Fund’s ability to buy or sell municipal securities at attractive prices, and increase municipal security price volatility and trading costs, particularly during periods of economic or market stress. In addition, recent federal banking regulations may cause certain dealers to reduce their inventories of municipal securities, which may further decrease the Fund’s ability to buy or sell municipal securities. As a result, the Fund may be forced to accept a lower price to sell a security, to sell other securities to raise cash, or to give up an investment opportunity, any of which could have a negative effect on performance. If the Fund needed to sell large blocks of municipal securities to raise cash to meet its obligations, those sales could further reduce the municipal securities’ prices and hurt performance.
Municipal Securities Market Risk.
The amount of public information available about the municipal securities in the Fund’s portfolio is generally less than that for corporate equities or bonds, and the investment performance of the Fund may therefore be more dependent on the analytical abilities of the
sub-adviser
than if the Fund were a stock fund or taxable bond fund. The secondary market for municipal securities, particularly below investment grade municipal securities, also tends to be less well-developed or liquid than many other securities markets, which may adversely affect the Fund’s ability to sell its municipal securities at attractive prices.
Other Investment Companies Risk.
The Fund may invest in the securities of other investment companies, including ETFs. Investing in an investment company exposes the Fund to all of the risks of that investment company’s investments. The Fund, as a holder of the securities of other investment companies, will bear its pro rata portion of the other investment companies’ expenses, including advisory fees. These expenses are in addition to the direct expenses of the Fund’s own operations. As a result, the cost of investing in investment company shares may exceed the costs of investing directly in its underlying investments. In addition, securities of other investment companies may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities and therefore magnify the Fund’s leverage risk.
With respect to ETF’s, an ETF that is based on a specific index may not be able to replicate and maintain exactly the composition and relative weighting of securities in the index. The value of an ETF based on a specific index is subject to change as the values of its respective component assets fluctuate according to market volatility. ETFs typically rely on a limited pool of authorized participants to create and redeem shares, and an active trading market for ETF shares may not develop or be maintained. The market value of shares of ETFs and
closed-end
funds may differ from their NAV.
Reinvestment Risk.
Reinvestment risk is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the proceeds from matured, traded or called municipal securities at market interest rates that are below the portfolio’s current earnings rate. A decline in income could affect the common shares’ market price, NAV and/or a common shareholder’s overall returns.
 
48