Form NPORT-P - Monthly Portfolio Investments Report on Form N-PORT (Public)

1

Nuveen

Variable

Rate

Preferred

&

Income

Fund

Portfolio

of

Investments

April

30,

2023

(Unaudited)

NPFD

Principal

Amount

(000)

/

Shares

Description

(1)

Coupon

Maturity

Ratings

(2)

Value

LONG-TERM

INVESTMENTS

-

154.4%  

(99.4%

of

Total

Investments) 

X

439,076,695

$1,000

PAR

(OR

SIMILAR)

INSTITUTIONAL

PREFERRED

-

99.4%

(64.0%

of

Total

Investments)

X

439,076,695

Automobiles

-

4.1%

$

8,535

General

Motors

Financial

Co

Inc

5.700%

N/A

(3)

BB+

$

7,457,456

12,331

General

Motors

Financial

Co

Inc

5.750%

N/A

(3)

BB+

10,466,183

Total

Automobiles

17,923,639

Banks

-

41.6%

8,200

Bank

of

America

Corp

6.250%

N/A

(3)

BBB+

8,016,320

10,610

Bank

of

America

Corp

6.500%

N/A

(3)

BBB+

10,577,321

1,775

Bank

of

America

Corp

6.300%

N/A

(3)

BBB+

1,787,517

2,219

Bank

of

America

Corp

6.100%

N/A

(3)

BBB+

2,177,394

16,995

Citigroup

Inc

6.300%

N/A

(3)

BBB-

16,031,383

8,000

Citigroup

Inc

5.000%

N/A

(3)

BBB-

7,500,000

2,875

Citigroup

Inc

6.250%

N/A

(3)

BBB-

2,819,714

3,000

Citigroup

Inc

(3-Month

LIBOR

reference

rate

+

4.230%

spread)

(4)

9.094%

N/A

(3)

BBB-

3,000,000

3,375

Citigroup

Inc

5.950%

N/A

(3)

BBB-

3,164,122

1,650

Citigroup

Inc

7.375%

N/A

(3)

BBB-

1,629,375

2,500

Citizens

Financial

Group

Inc

6.375%

N/A

(3)

Baa3

2,162,500

3,680

Citizens

Financial

Group

Inc

4.000%

N/A

(3)

Baa3

2,861,200

6,050

CoBank

ACB

6.450%

N/A

(3)

BBB+

5,701,654

3,271

Fifth

Third

Bancorp

4.500%

N/A

(3)

Baa3

2,896,969

5,600

First

Citizens

BancShares

Inc/NC

(3-Month

LIBOR

reference

rate

+

3.972%

spread)

(4)

8.838%

N/A

(3)

Ba1

5,194,000

5,190

HSBC

Capital

Funding

Dollar

1

LP,

144A

10.176%

N/A

(3)

BBB

6,329,578

8,400

Huntington

Bancshares

Inc/OH

5.625%

N/A

(3)

Baa3

7,493,003

16,945

JPMorgan

Chase

&

Co

6.750%

N/A

(3)

BBB+

16,924,666

2,933

JPMorgan

Chase

&

Co

5.000%

N/A

(3)

BBB+

2,810,888

3,195

JPMorgan

Chase

&

Co

6.100%

N/A

(3)

BBB+

3,161,357

4,789

KeyCorp

5.000%

N/A

(3)

Baa3

3,783,309

8,000

M&T

Bank

Corp

5.125%

N/A

(3)

Baa2

6,195,788

5,735

PNC

Financial

Services

Group

Inc/The

6.250%

N/A

(3)

Baa2

5,256,127

2,445

PNC

Financial

Services

Group

Inc/The

6.000%

N/A

(3)

Baa2

2,267,737

3,534

PNC

Financial

Services

Group

Inc/The

5.000%

N/A

(3)

Baa2

3,215,940

3,990

PNC

Financial

Services

Group

Inc/The

6.200%

N/A

(3)

Baa2

3,757,413

2,470

Regions

Financial

Corp

5.750%

N/A

(3)

Baa3

2,334,756

8,195

Truist

Financial

Corp

5.100%

N/A

(3)

Baa2

7,228,502

4,970

Truist

Financial

Corp

(3-Month

LIBOR

reference

rate

+

3.102%

spread)

(4)

7.968%

N/A

(3)

Baa2

4,771,200

7,873

Truist

Financial

Corp

4.800%

N/A

(3)

Baa2

6,839,669

4,608

Wells

Fargo

&

Co

3.900%

N/A

(3)

Baa2

4,009,847

14,429

Wells

Fargo

&

Co

5.875%

N/A

(3)

Baa2

14,114,736

7,000

Wells

Fargo

&

Co

5.900%

N/A

(3)

Baa2

6,600,300

1,200

Zions

Bancorp

NA

7.200%

N/A

(3)

BB+

1,030,200

Total

Banks

183,644,485

Capital

Markets

-

7.0%

2,405

Bank

of

New

York

Mellon

Corp/The

4.700%

N/A

(3)

Baa1

2,341,869

13,128

Charles

Schwab

Corp/The

5.375%

N/A

(3)

Baa2

12,496,215

5,890

Goldman

Sachs

Group

Inc/The

5.300%

N/A

(3)

BBB-

5,588,344

5,880

Goldman

Sachs

Group

Inc/The

5.500%

N/A

(3)

BBB-

5,673,433

5,700

Goldman

Sachs

Group

Inc/The

4.125%

N/A

(3)

BBB-

4,777,838

Total

Capital

Markets

30,877,699

Nuveen

Variable

Rate

Preferred

&

Income

Fund

(continued)

Portfolio

of

Investments

April

30,

2023

(Unaudited)

2

NPFD

Principal

Amount

(000)

/

Shares

Description

(1)

Coupon

Maturity

Ratings

(2)

Value

Consumer

Finance

-

3.7%

$

4,200

Ally

Financial

Inc

4.700%

N/A

(3)

Ba2

$

2,950,500

3,320

Ally

Financial

Inc

4.700%

N/A

(3)

Ba2

2,448,500

3,785

American

Express

Co

3.550%

N/A

(3)

Baa2

3,180,078

4,705

Capital

One

Financial

Corp

3.950%

N/A

(3)

Baa3

3,470,588

3,690

Discover

Financial

Services

5.500%

N/A

(3)

Ba1

2,804,400

1,745

Discover

Financial

Services

6.125%

N/A

(3)

Ba1

1,651,959

Total

Consumer

Finance

16,506,025

Electric

Utilities

-

5.1%

2,600

American

Electric

Power

Co

Inc

3.875%

2/15/62

BBB

2,080,841

4,530

Edison

International

5.000%

N/A

(3)

BB+

3,872,313

1,445

Edison

International

5.375%

N/A

(3)

BB+

1,286,809

14,093

Emera

Inc

(5)

6.750%

6/15/76

BB+

13,422,354

2,000

Southern

Co/The

4.000%

1/15/51

BBB-

1,879,200

Total

Electric

Utilities

22,541,517

Financial

Services

-

3.0%

3,250

Capital

Farm

Credit

ACA,

144A

5.000%

N/A

(3)

BB

2,925,000

350

Compeer

Financial

ACA,

144A

4.875%

N/A

(3)

BB+

308,000

6,310

Equitable

Holdings

Inc

4.950%

N/A

(3)

BBB-

5,750,344

4,352

Voya

Financial

Inc

6.125%

N/A

(3)

BBB-

4,191,760

Total

Financial

Services

13,175,104

Independent

Power

and

Renewable

Electricity

Producers

-

1.7%

2,685

AES

Andes

SA,

144A

7.125%

3/26/79

BB

2,529,270

1,700

AES

Andes

SA,

144A

6.350%

10/07/79

BB

1,577,410

2,215

Vistra

Corp,

144A

7.000%

N/A

(3)

Ba3

1,986,475

1,560

Vistra

Corp,

144A

8.000%

N/A

(3)

Ba3

1,470,300

Total

Independent

Power

and

Renewable

Electricity

Producers

7,563,455

Industrial

Conglomerates

-

0.8%

3,573

General

Electric

Co

(3-Month

LIBOR

reference

rate

+

3.330%

spread)

(4)

8.196%

N/A

(3)

BBB-

3,566,747

Total

Industrial

Conglomerates

3,566,747

Insurance

-

14.4%

2,595

Aegon

NV

5.500%

4/11/48

Baa1

2,516,631

2,250

American

International

Group

Inc

5.750%

4/01/48

BBB-

2,165,625

4,516

Assurant

Inc

7.000%

3/27/48

Baa3

4,308,047

3,000

Assured

Guaranty

Municipal

Holdings

Inc,

144A

6.400%

12/15/66

BBB+

2,685,000

3,050

AXIS

Specialty

Finance

LLC

(5)

4.900%

1/15/40

BBB

2,451,457

6,115

Enstar

Finance

LLC

5.500%

1/15/42

BBB-

4,402,169

1,000

Enstar

Finance

LLC

5.750%

9/01/40

BBB-

834,850

10,345

Markel

Corp

6.000%

N/A

(3)

BBB-

10,051,486

6,495

MetLife

Inc

(5)

5.875%

N/A

(3)

BBB

6,027,018

3,395

Prudential

Financial

Inc

5.125%

3/01/52

BBB+

3,071,561

3,875

QBE

Insurance

Group

Ltd

,

Reg

S

6.750%

12/02/44

BBB

3,837,893

8,205

QBE

Insurance

Group

Ltd,

144A

7.500%

11/24/43

Baa1

8,204,099

1,600

QBE

Insurance

Group

Ltd,

144A

5.875%

N/A

(3)

Baa2

1,510,695

3,915

SBL

Holdings

Inc,

144A

6.500%

N/A

(3)

BB

2,279,274

14,500

SBL

Holdings

Inc,

144A

7.000%

N/A

(3)

BB

9,352,500

Total

Insurance

63,698,305

Media

-

0.4%

2,235

Paramount

Global

6.375%

3/30/62

Baa3

1,917,093

Total

Media

1,917,093

3

Principal

Amount

(000)

/

Shares

Description

(1)

Coupon

Maturity

Ratings

(2)

Value

Multi-Utilities

-

4.0%

$

2,660

Algonquin

Power

&

Utilities

Corp

4.750%

1/18/82

BB+

$

2,151,283

8,050

CenterPoint

Energy

Inc

6.125%

N/A

(3)

BBB-

7,667,625

2,500

CMS

Energy

Corp

(5)

4.750%

6/01/50

BBB-

2,187,500

3,400

Sempra

Energy

4.125%

4/01/52

BBB-

2,753,462

3,210

Sempra

Energy

4.875%

N/A

(3)

BBB-

3,018,563

Total

Multi-Utilities

17,778,433

Oil,

Gas

&

Consumable

Fuels

-

5.6%

8,546

Enbridge

Inc

(5)

5.500%

7/15/77

BBB-

7,562,770

2,350

Enbridge

Inc

6.000%

1/15/77

BBB-

2,196,236

6,360

Enbridge

Inc

7.625%

1/15/83

BBB-

6,478,178

5,345

Energy

Transfer

LP

(5)

6.500%

N/A

(3)

BB

4,730,325

545

Energy

Transfer

LP

7.125%

N/A

(3)

BB

459,162

2,155

Transcanada

Trust

5.600%

3/07/82

BBB-

1,822,138

1,460

Transcanada

Trust

5.500%

9/15/79

BBB-

1,237,055

Total

Oil,

Gas

&

Consumable

Fuels

24,485,864

Trading

Companies

&

Distributors

-

5.7%

6,200

AerCap

Global

Aviation

Trust,

144A

6.500%

6/15/45

Baa3

5,823,549

13,900

AerCap

Holdings

NV

5.875%

10/10/79

BB+

12,892,899

4,841

Air

Lease

Corp

4.650%

N/A

(3)

BB+

3,975,421

3,673

ILFC

E-Capital

Trust

I,

144A

6.548%

12/21/65

Baa3

2,369,085

Total

Trading

Companies

&

Distributors

25,060,954

U.S.

Agency

-

0.0%

50

Farm

Credit

Bank

of

Texas,

144A

5.700%

N/A

(3)

Baa1

43,500

50

Farm

Credit

Bank

of

Texas,

144A

6.200%

N/A

(3)

BBB+

43,875

Total

U.S.

Agency

87,375

Wireless

Telecommunication

Services

-

2.3%

10,000

Vodafone

Group

PLC

7.000%

4/04/79

BB+

10,250,000

Total

Wireless

Telecommunication

Services

10,250,000

Total

$1,000

Par

(or

similar)

Institutional

Preferred

(cost

$510,533,660)

439,076,695

Shares

Description

(1)

Coupon

Ratings

(2)

Value

X

140,671,978

$25

PAR

(OR

SIMILAR)

RETAIL

PREFERRED

-

31.8%

(20.5%

of

Total

Investments)

X

140,671,978

Banks

-

7.2%

38,600

CoBank

ACB

6.200%

BBB+

$

3,686,300

1,000

Farm

Credit

Bank

of

Texas,

144A

6.750%

Baa1

97,500

121,601

Fifth

Third

Bancorp

6.625%

Baa3

2,979,224

245,000

KeyCorp

6.200%

Baa3

5,439,000

62,700

KeyCorp

6.125%

Baa3

1,410,123

230,765

New

York

Community

Bancorp

Inc

6.375%

Ba2

5,402,209

168,058

Regions

Financial

Corp

6.375%

Baa3

4,026,670

163,723

Regions

Financial

Corp

5.700%

Baa3

3,788,550

121,800

Synovus

Financial

Corp

5.875%

BB-

2,577,288

99,600

Wintrust

Financial

Corp

6.875%

BB

2,357,532

Total

Banks

31,764,396

Capital

Markets

-

5.9%

144,300

Goldman

Sachs

Group

Inc/The

5.500%

BB+

3,621,930

166,500

Morgan

Stanley

7.125%

BBB

4,242,420

122,400

Morgan

Stanley

6.875%

BBB

3,106,512

122,800

Morgan

Stanley

6.375%

BBB

3,085,964

431,297

Morgan

Stanley

5.850%

BBB

10,786,738

Nuveen

Variable

Rate

Preferred

&

Income

Fund

(continued)

Portfolio

of

Investments

April

30,

2023

(Unaudited)

4

NPFD

Shares  

Description

(1)

Coupon

Ratings

(2)

Value

Capital

Markets

(continued)

54,600

Morgan

Stanley

6.500%

BBB

$

1,427,244

Total

Capital

Markets

26,270,808

Financial

Services

-

2.6%

31,750

AgriBank

FCB

6.875%

BBB+

3,175,000

80,582

Federal

Agricultural

Mortgage

Corp

6.000%

N/R

2,074,987

261,000

Voya

Financial

Inc

5.350%

BBB-

6,368,400

Total

Financial

Services

11,618,387

Food

Products

-

2.7%

157,200

CHS

Inc

6.750%

N/R

3,942,576

315,300

CHS

Inc

7.100%

N/R

7,819,440

300

Dairy

Farmers

of

America

Inc,

144A

7.875%

BB+

27,600

Total

Food

Products

11,789,616

Insurance

-

8.6%

180,150

American

Equity

Investment

Life

Holding

Co

6.625%

BB

4,301,982

310,550

American

Equity

Investment

Life

Holding

Co

5.950%

BB

7,161,283

340,200

Aspen

Insurance

Holdings

Ltd

5.950%

BB+

8,205,624

194,775

Athene

Holding

Ltd

6.350%

BBB

4,224,670

166,250

Athene

Holding

Ltd

6.375%

BBB

3,748,937

131,900

Enstar

Group

Ltd

7.000%

BBB-

3,020,510

93,300

Reinsurance

Group

of

America

Inc

7.125%

BBB+

2,449,125

188,600

Reinsurance

Group

of

America

Inc

5.750%

BBB+

4,777,238

Total

Insurance

37,889,369

Multi-Utilities

-

0.2%

31,600

NiSource

Inc

6.500%

BBB-

788,420

Total

Multi-Utilities

788,420

Oil,

Gas

&

Consumable

Fuels

-

3.5%

51,100

Energy

Transfer

LP

7.600%

BB

1,181,432

176,668

NuStar

Energy

LP

12.065%

B2

4,376,066

271,200

NuStar

Energy

LP

10.942%

B2

6,256,584

154,289

NuStar

Logistics

LP

11.994%

B

3,940,541

Total

Oil,

Gas

&

Consumable

Fuels

15,754,623

Trading

Companies

&

Distributors

-

1.1%

164,687

Air

Lease

Corp

6.150%

BB+

3,604,999

43,800

WESCO

International

Inc

10.625%

B+

1,191,360

Total

Trading

Companies

&

Distributors

4,796,359

Total

$25

Par

(or

similar)

Retail

Preferred

(cost

$159,998,266)

140,671,978

Principal

Amount

(000)

Description

(1)

,(6)

Coupon

Maturity

Ratings

(2)

Value

X

102,699,498

CONTINGENT

CAPITAL

SECURITIES

-

23.2%

(14.9%

of

Total

Investments)

X

102,699,498

Banks

-

20.3%

$

1,000

Australia

&

New

Zealand

Banking

Group

Ltd/United

Kingdom,

144A

6.750%

N/A

(3)

Baa2

$

964,878

2,380

Banco

Bilbao

Vizcaya

Argentaria

SA

6.500%

N/A

(3)

Ba2

2,170,393

2,495

Banco

Bilbao

Vizcaya

Argentaria

SA

6.125%

N/A

(3)

Ba2

1,988,702

1,595

Banco

Mercantil

del

Norte

SA/Grand

Cayman,

144A

7.625%

N/A

(3)

Ba2

1,451,698

715

Banco

Mercantil

del

Norte

SA/Grand

Cayman,

144A

7.500%

N/A

(3)

Ba2

630,988

4,000

Banco

Santander

SA

,

Reg

S

7.500%

N/A

(3)

Ba1

3,840,000

2,600

Banco

Santander

SA

4.750%

N/A

(3)

Ba1

2,023,580

2,340

Barclays

PLC

8.000%

N/A

(3)

BBB-

2,049,606

7,258

Barclays

PLC

7.750%

N/A

(3)

BBB-

6,829,923

3,800

Barclays

PLC

6.125%

N/A

(3)

BBB-

3,263,820

5

Part

F

of

Form

N-PORT

was

prepared

in

accordance

with

U.S.

generally

accepted

accounting

principles

(“U.S.

GAAP”)

and

in

conformity

with

the

applicable

rules

and

regulations

of

the

U.S.

Securities

and

Exchange

Commission

(“SEC”)

related

to

interim

filings.

Part

F

of

Form

N-PORT

does

not

include

all

information

and

footnotes

required

by

U.S.

GAAP

for

complete

financial

statements.

Certain

footnote

disclosures

normally

included

in

Principal

Amount

(000)

Description

(1),(6)

Coupon

Maturity

Ratings

(2)

Value

Banks

(continued)

$

3,550

BNP

Paribas

SA,

144A

6.625%

N/A

(3)

BBB

$

3,382,795

1,530

BNP

Paribas

SA,

144A

7.750%

N/A

(3)

BBB

1,461,150

2,089

BNP

Paribas

SA,

144A

7.000%

N/A

(3)

BBB

1,864,224

1,085

BNP

Paribas

SA,

144A

9.250%

N/A

(3)

BBB

1,115,814

2,465

Credit

Agricole

SA,

144A

7.875%

N/A

(3)

BBB

2,418,781

5,240

Credit

Agricole

SA,

144A

8.125%

N/A

(3)

BBB

5,191,802

925

Danske

Bank

A/S

,

Reg

S

4.375%

N/A

(3)

BBB-

785,997

910

Danske

Bank

A/S

,

Reg

S

7.000%

N/A

(3)

BBB-

846,482

3,205

HSBC

Holdings

PLC

6.000%

N/A

(3)

BBB

2,831,617

760

HSBC

Holdings

PLC

8.000%

N/A

(3)

BBB

754,300

7,000

HSBC

Holdings

PLC

6.375%

N/A

(3)

BBB

6,633,375

7,641

ING

Groep

NV

,

Reg

S

6.750%

N/A

(3)

BBB

7,163,437

1,098

Intesa

Sanpaolo

SpA,

144A

7.700%

N/A

(3)

BB-

999,043

2,000

Lloyds

Banking

Group

PLC

7.500%

N/A

(3)

Baa3

1,923,630

9,185

Lloyds

Banking

Group

PLC

6.750%

N/A

(3)

Baa3

8,459,148

1,500

Macquarie

Bank

Ltd/London,

144A

6.125%

N/A

(3)

BB+

1,293,066

5,825

NatWest

Group

PLC

8.000%

N/A

(3)

BBB-

5,766,342

1,860

Nordea

Bank

Abp,

144A

6.625%

N/A

(3)

BBB+

1,741,834

3,345

Societe

Generale

SA,

144A

8.000%

N/A

(3)

BB

3,121,705

1,500

Societe

Generale

SA,

144A

9.375%

N/A

(3)

BB+

1,424,100

1,500

Societe

Generale

SA,

144A

4.750%

N/A

(3)

BB+

1,144,950

1,700

Standard

Chartered

PLC,

144A

7.750%

N/A

(3)

BBB-

1,646,603

755

Standard

Chartered

PLC,

144A

6.000%

N/A

(3)

BBB-

712,001

1,660

UniCredit

SpA

,

Reg

S

8.000%

N/A

(3)

BB-

1,602,315

Total

Banks

89,498,099

Capital

Markets

-

2.9%

9,004

Credit

Suisse

Group

AG,

144A

7.500%

N/A

(3)

C

337,650

3,325

Credit

Suisse

Group

AG,

144A

9.750%

N/A

(3)

C

124,687

5,850

Credit

Suisse

Group

AG,

144A

6.375%

N/A

(3)

Ba2

219,375

2,460

Credit

Suisse

Group

AG,

144A

7.500%

N/A

(3)

C

92,250

6,000

Deutsche

Bank

AG

6.000%

N/A

(3)

Ba2

4,469,400

8,830

UBS

Group

AG

,

Reg

S

6.875%

N/A

(3)

BBB

7,958,037

Total

Capital

Markets

13,201,399

Total

Contingent

Capital

Securities

(cost

$142,795,321)

102,699,498

Total

Long-Term

Investments

(cost

$813,327,247)

682,448,171

Principal

Amount

(000)

Description

(1)

Coupon

Maturity

Value

SHORT-TERM

INVESTMENTS

-

 0.9% (0.6%

of

Total

Investments) 

X

3,900,761

REPURCHASE

AGREEMENTS

-

0.9%

(0.6%

of

Total

Investments)

X

3,900,761

$

3,901

Repurchase

Agreement

with

Fixed

Income

Clearing

Corporation,

dated

4/28/23,

repurchase

price

$3,901,229,

collateralized

by

$4,351,100,

U.S.

Treasury

Note,

0.750%,

due

5/31/26,

value

$3,978,808

1.440%

5/01/23

$

3,900,761

Total

Repurchase

Agreements

(cost

$3,900,761)

3,900,761

Total

Short-Term

Investments

(cost

$3,900,761)

3,900,761

Total

Investments

(cost

$

817,228,008

)

-

155

.3

%

686,348,932

Borrowings

-

(31.1)%

(7),(8)

(

137,614,000

)

Reverse

Repurchase

Agreements,

including

accrued

interest

-

(6.4)%(9)

(

28,140,070

)

TFP

Shares,

Net

-

(19.1)%(10)

(

84,510,170

)

Other

Assets

&

Liabilities,

Net

-  1.3%

5,818,456

Net

Assets

Applicable

to

Common

Shares

-

100%

$

441,903,148

Nuveen

Variable

Rate

Preferred

&

Income

Fund

(continued)

Portfolio

of

Investments

April

30,

2023

(Unaudited)

6

NPFD

financial

statements

prepared

in

accordance

with

U.S.

GAAP

have

been

condensed

or

omitted

from

this

report

pursuant

to

the

rules

of

the

SEC.

For

a

full

set

of

the

Fund’s

notes

to

financial

statements,

please

refer

to

the

Fund’s

most

recently

filed

annual

or

semi-annual

report.

Fair

Value

Measurements

The

Fund’s

investments

in

securities

are

recorded

at

their

estimated

fair

value

utilizing

valuation

methods

approved

by

the

Board

of

Directors/

Trustees.

Fair

value

is

defined

as

the

price

that

would

be

received

upon

selling

an

investment

or

transferring

a

liability

in

an

orderly

transaction

to

an

independent

buyer

in

the

principal

or

most

advantageous

market

for

the

investment.

U.S.

GAAP

establishes

the

three-tier

hierarchy

which

is

used

to

maximize

the

use

of

observable

market

data

and

minimize

the

use

of

unobservable

inputs

and

to

establish

classification

of

fair

value

measurements

for

disclosure

purposes.

Observable

inputs

reflect

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability.

Observable

inputs

are

based

on

market

data

obtained

from

sources

independent

of

the

reporting

entity.

Unobservable

inputs

reflect

management’s

assumptions

about

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability.

Unobservable

inputs

are

based

on

the

best

information

available

in

the

circumstances.

The

following

is

a

summary

of

the

three-tiered

hierarchy

of

valuation

input

levels.

Level

1

–

Inputs

are

unadjusted

and

prices

are

determined

using

quoted

prices

in

active

markets

for

identical

securities.

Level

2

–

Prices

are

determined

using

other

significant

observable

inputs

(including

quoted

prices

for

similar

securities,

interest

rates,

credit

spreads,

etc.).

Level

3

–

Prices

are

determined

using

significant

unobservable

inputs

(including

management’s

assumptions

in

determining

the

fair

value

of

investments).

The

following

table

summarizes

the

market

value

of

the

Fund's

investments

as

of

the

end

of

the

reporting

period,

based

on

the

inputs

used

to

value

them:

Level

1

Level

2

Level

3

Total

Long-Term

Investments:

$1,000

Par

(or

similar)

Institutional

Preferred

$

–

$

439,076,695

$

–

$

439,076,695

$25

Par

(or

similar)

Retail

Preferred

133,783,078

6,888,900

–

140,671,978

Contingent

Capital

Securities

–

102,699,498

–

102,699,498

Short-Term

Investments:

Repurchase

Agreements

–

3,900,761

–

3,900,761

Total

$

133,783,078

$

552,565,854

$

–

$

686,348,932

For

Fund

portfolio

compliance

purposes,

the

Fund’s

industry

classifications

refer

to

any

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

ratings

group

indexes,

and/or

as

defined

by

Fund

management.

This

definition

may

not

apply

for

purposes

of

this

report,

which

may

combine

industry

sub-classifications

into

sectors

for

reporting

ease.

(1)

All

percentages

shown

in

the

Portfolio

of

Investments

are

based

on

net

assets

applicable

to

common

shares

unless

otherwise

noted.

(2)

For

financial

reporting

purposes,

the

ratings

disclosed

are

the

highest

of

Standard

&

Poor’s

Group

(“Standard

&

Poor’s”),

Moody’s

Investors

Service,

Inc.

(“Moody’s”)

or

Fitch,

Inc.

(“Fitch”)

rating.

This

treatment

of

split-rated

securities

may

differ

from

that

used

for

other

purposes,

such

as

for

Fund

investment

policies.

Ratings

below

BBB

by

Standard

&

Poor’s,

Baa

by

Moody’s

or

BBB

by

Fitch

are

considered

to

be

below

investment

grade.

Holdings

designated

N/R

are

not

rated

by

any

of

these

national

rating

agencies.

(3)

Perpetual

security.

Maturity

date

is

not

applicable.

(4)

Variable

rate

security.

The

rate

shown

is

the

coupon

as

of

the

end

of

the

reporting

period.

(5)

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

$39,838,688

have

been

pledged

as

collateral

for

reverse

repurchase

agreements.

(6)

Contingent

Capital

Securities

(“CoCos”)

are

hybrid

securities

with

loss

absorption

characteristics

built

into

the

terms

of

the

security

for

the

benefit

of

the

issuer.

For

example,

the

terms

may

specify

an

automatic

write-down

of

principal

or

a

mandatory

conversion

into

the

issuer’s

common

stock

under

certain

adverse

circumstances,

such

as

the

issuer’s

capital

ratio

falling

below

a

specified

level.

(7)

Borrowings

as

a

percentage

of

Total

Investments

is

20.1%.

(8)

The

Fund

may

pledge

up

to

100%

of

its

eligible

investments

(excluding

any

investments

separately

pledged

as

collateral

for

specific

investments

in

derivatives,

when

applicable)

in

the

Portfolio

of

Investments

as

collateral

for

borrowings.

As

of

the

end

of

the

reporting

period,

investments

with

a

value

of

$369,144,961

have

been

pledged

as

collateral

for

borrowings.

(9)

Reverse

Repurchase

Agreements,

including

accrued

interest

as

a

percentage

of

Total

investments

is

4.1%.

(10)

TFP

Shares,

Net

as

a

percentage

of

Total

Investments

is

12.3%.

144A

Investment

is

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933,

as

amended.

These

investments

may

only

be

resold

in

transactions

exempt

from

registration,

which

are

normally

those

transactions

with

qualified

institutional

buyers.

LIBOR

London

Inter-Bank

Offered

Rate

Reg

S

Regulation

S

allows

U.S.

companies

to

sell

securities

to

persons

or

entities

located

outside

of

the

United

States

without

registering

those

securities

with

the

Securities

and

Exchange

Commission.

Specifically,

Regulation

S

provides

a

safe

harbor

from

the

registration

requirements

of

the

Securities

Act

for

the

offers

and

sales

of

securities

by

both

foreign

and

domestic

issuers

that

are

made

outside

the

United

States.

---