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Nuveen Global Value Opportunities Fund (NYSE: JGV)
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OBJECTIVE & INVESTMENT STRATEGY
The fund seeks a high level of total return by investing primarily in a diversified global portfolio of value equity securities, as well as corporate and governmental debt securities.
The fund invests in equity and securities of U.S. and non-U.S. companies in all capitalization ranges, including common stocks, preferred stocks with equity characteristics, convertibles, warrants, rights, depositary receipts, and REITs. The fund also invests in U.S. and non-U.S. corporate loans and governmental bonds and other debt instruments. A substantial portion of the fund's debt securities may be unrated or rated below investment grade. Under normal circumstances, the fund will invest 80% of managed assets in equities and the remainder in debt; this mix will be actively managed. The fund may opportunistically sell call options. The fund may use leverage.
DISTRIBUTION HISTORY
MANAGED DISTRIBUTION POLICYManaged Distribution Policy: This fund has adopted a Managed Distribution
Policy, designed to provide attractive, quarterly distributions throughout the course of the year. Under this policy, the fund seeks to maintain a stable quarterly distribution amount (in cents per common share), comprised of payments received from portfolio companies, as well as net realized fund portfolio capital gains and, if necessary, a return of capital (representing in some cases
net unrealized capital gains). The fund will determine the tax characteristics of all fund distributions after the end of the calendar year and will provide shareholders such information at that time.
KEY INFORMATION REGARDING DISTRIBUTIONS
| Current Distribution (Quarterly) (As of 10/1/2010) | $0.3000 |
| Monthly Equivalent Distribution | $0.1000 |
| Avg. Earnings/Share** ( As of 7/31/2010) | $0.0461 |
| Annualized 1 Year Total Return on NAV (As of 8/31/2010) | 15.82% |
| Annualized Distribution Rate on NAV †† | 6.39% |
| Annualized Since Inception Total Return on NAV (As of 8/31/2010) | 7.81% |
HIGHLIGHTS
- Opportunity for a high level of total return to fuel attractive regular managed distributions.
- Value-oriented investment strategy from experienced Tradewinds portfolio team, that opportunistically seeks to identify undervalued securities across the globe.
- Global investing is a long-term strategic opportunity for US investors to achieve additional total return potential for their portfolios by expanding their ‘opportunity set’ and investing in higher performing markets.
PRICING & DISTRIBUTION
as of
09/01/2010
| Closing Share Price (As of 9/1/2010) | $18.24 |
| Closing NAV per Share (As of 9/1/2010) | $18.77 |
| Premium / Discount | -2.82% |
| Current Distribution Rate (Market price)†† | 6.58% |
| Distribution Amount (Quarterly) | $0.3000 |
CAPITAL STRUCTURE
as of
07/30/2010
| Total Managed Assets | $354,003,670 |
| Common Shares | |
|---|---|
| Total Common Net Assets | $354,003,670 |
| Shares Outstanding | 19,184,278 |
| Avg Daily Volume (in shares) | 44,171 |
FUND BASICS
| CUSIP | 6706EH103 |
| NAV Ticker | XJGVX |
| Inception Date | 7/25/2006 |
| Inception NAV | $19.10 |
| Inception Share Price | $20.00 |
FUND CHARACTERISTICS
as of
06/30/2010
| # of Holdings | 199 |
| % Foreign Holdings ‡ | 60.35% |
| % Large, Mid, Small Cap † | 79.2%,9.8%,11.0% |
| Avg. Maturity (years) * | 8.58 |
| Avg. Leverage Adjusted Duration (years) * | 3.91 |
| Avg. Bond Price * | $61.40 |
SHARE PRICE AND NAV HISTORY
Data reflects performance over the previous 12 months
As of
09/01/2010
ASSET ALLOCATION
As of 06/30/2010
CALENDAR YEAR TOTAL RETURNS
As of 08/31/2010
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Share Price | 6.63% | 58.96% | -26.03% | 2.94% | -- | -- | -- | -- | -- | -- |
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NAV | 4.59% | 48.93% | -23.76% | 6.48% | -- | -- | -- | -- | -- | -- |
ANNUALIZED TOTAL RETURNS
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Share Price | 25.31% | 9.15% | -- | -- | 6.70% |
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NAV | 15.82% | 6.34% | -- | -- | 7.81% |
FUND MANAGER
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| Value and Global/International Investment Expertise Tradewinds seeks to provide superior risk-adjusted returns through an analyst-driven, value-oriented process. Portfolio managers look for undervalued companies where catalysts exist to unlock value or improve profitability. Such catalysts can be new management, improving fundamentals,renewed management focus, industry consolidation or company restructuring. Adhere to value philosophy. Capitalize on short-term market inefficiencies - fear, greed and misperceptions. |
ANNUAL EXPENSE RATIOS
as of
07/30/2010
| Total Fund | Common Shares | |
|---|---|---|
| Management Fees | 0.99% | 0.99% |
| Other Expenses | 0.15% | 0.15% |
| Total | 1.14% | 1.14% |
See the fund's Annual Report for full information on expenses.
TOP ISSUERS
as of
06/30/2010
| Issuer | Dollar Value | % of Total Portfolio |
|---|---|---|
| Newmont Mining Corp: Equity | $18,262,692 | 5.30% |
| NovaGold Resources: Equity | $14,428,344 | 4.25% |
| Barrick Gold Corpor: Equity | $13,990,821 | 4.12% |
| Anglogold Limited: Equity | $12,037,332 | 3.55% |
| BP PLC: Equity | $11,927,440 | 3.52% |
| Gold Fields Limited: Equity | $11,608,543 | 3.42% |
| Cameco Corporation: Equity | $10,801,728 | 3.18% |
| Wal-Mart Stores Inc: Equity | $10,676,347 | 3.15% |
| Chevron Corporation: Equity | $9,228,960 | 2.72% |
| Lihir Gold Ltd: Equity | $9,001,829 | 2.65% |
Data shown represents past performance and is no guarantee of future results. Market price and net asset value (NAV) of a Fund's shares will fluctuate with market conditions. Current performance may be higher or lower than the performance shown.
RISKS
Common Stock RiskAlthough common stocks historically have generated higher average returns than other types of investments, common stocks also have experienced significantly more volatility in those returns. An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock held by the fund. Also, prices of common stocks are sensitive to general movements in the stock market and a drop in the stock market may depress the price of common stocks held by the fund or to which it has exposure.
Value Stock Risks Value stocks are securities that the portfolio manager believes to be undervalued, or mispriced, and that have the prospect for strong improvement on fundamentals. Such companies may have experienced adverse business or industry developments or may be subject to special risks that have caused the common stocks or other equity securities to be out of favor and, in the manager's opinion, undervalued. The risk is if the manager's assessment of a company's prospects is wrong, the price of the company's common stock or other equity securities may fall, or may not approach the value that the manager has placed on them.
Convertible Securities RiskConvertible securities generally offer lower interest or dividend yields than non-convertible fixed-income securities of similar credit quality because of the potential for capital appreciation. The market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, a convertible security's market value also tends to reflect the market price of the common stock of the issuing company, particularly when that stock price is greater than the convertible security's "conversion price." The conversion price is defined as the predetermined price or exchange ratio at which the convertible security can be converted or exchanged for the underlying common stock.
Non-U.S. Securities RiskInvestments in securities of non-U.S. issuers involve special risks not typically associated with domestic investments including:
(i) less publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices;
(ii) smaller, less liquid and more volatile markets, meaning that an adviser may not be able to sell the fund's portfolio securities at times, in amounts and at prices it considers reasonable;
(iii) potential adverse effects of fluctuations in currency exchange rates or controls on the value of the fund's investments;
(iv) the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession;
(v) the security issuer's willingness or ability to repay principal and interest due in a timely manner;
(vi) the impact of adverse economic, political, social or diplomatic events;
(vii) possible seizure, expropriation or nationalization of the company or its assets;
(viii) certain non-U.S. countries may impose restrictions on the ability of non-U.S. issuers to make payments of principal and/or interest to investors located outside the U.S., due to blockage of foreign currency exchanges or otherwise; and
(ix) withholding and other non-U.S. taxes may not be available for pass-through to the fund's shareholders as a deduction from taxable income or as a credit against their U.S. federal income tax liability.
These risks are more pronounced to the extent that the fund invests a significant amount of its assets in companies located in one region. Unanticipated economic, political and social developments may also affect the values of the fund's investments and the fund's availability to make additional investments in such countries.
All of these risks are usually much greater in emerging markets countries. Investments in emerging markets may be considered speculative, due to the higher possibility of hyperinflation, currency devaluations, lower trading volumes, and less liquidity.
Currency RiskChanges in exchange rates will affect the value of the fund's investments and the loss implied by an adverse movement in exchange rates may exceed the local currency return of an investment. There can be no assurance that the currencies in selected positions will appreciate or depreciate in the manner anticipated. The value of any currency relative to the U.S. dollar may be affected by complex political and economic factors. The exchange rate of each non-U.S. currency in terms of the U.S. dollar is a result of the supply and demand for the two currencies. Currency exchange rates may be particularly affected by payments and the extent of governmental surpluses or deficits in both non-U.S. countries and in the U.S., all of which are in turn sensitive to the monetary, fiscal and trade policies pursued by the relevant governments.
Derivatives Strategy RiskDerivatives are financial instruments whose value changes in response to the changes in underlying investment variables. Derivative securities include, but are not limited to, calls, puts, warrants, swaps, and forwards. The fund's use of derivatives involves risks different from, and possibly greater than, the risks associated with the underlying investments. The derivatives market is largely unregulated. It is possible that developments in the derivatives market, including potential government regulation, could adversely affect the fund's ability to terminate existing contracts or to realize amounts to be received under such contracts.
Call Option RisksThe value of call options sold (written) will be affected by, among other things, changes in the value of the securities or indices underlying the options and the remaining time to the options' expiration. The value of the call options also may decline if the market for the options becomes less liquid or smaller. When selling a call option, a fund creates the potential for a liability to the extent the asset(s) underlying the option appreciates to a level above the strike price. Therefore, a fund may not participate in any appreciation of its equity portfolio as fully as it would if the fund did not sell call options. In addition, the fund will continue to bear the risk of declines in the value of the equity portfolio that serves as collateral for the written options. The extent of a fund's exposure to call option risk will vary depending on the degree to which call options are written.
Warrants and Rights RisksWarrants and rights are subject to the same market risks as common stocks, but are more volatile in price. Warrants and rights do not carry the right to dividends or voting rights with respect to their underlying securities, and they do not represent any rights in the assets of the issuer. An investment in warrants or rights may be considered speculative.
Counterparty RiskTo the extent that a fund's derivative investments are purchased or sold in OTC transactions, the fund will be exposed to the risk that counterparties to these transactions, for whatever reason, will be unable to meet their obligations under the arrangements, which generally will be equal to the amount, if any, by which the fund's positions are "in-the-money." The fund may have contractual remedies pursuant to a derivative contract, but there is no guarantee that the fund would be successful in pursuing them. The fund thus assumes the risk that it will be delayed or prevented from obtaining payments that it is owed by a defaulting counterparty.
NOTES
¶ Holdings and their ratings may change over time. Ratings shown are generally the highest rating given by one or more national rating agencies. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. Holdings designated “NR” are not rated by a national rating agency, and may be assigned an internal rating by the fund’s investment adviser.
* For the 25.31% of the portfolio invested in debt securities.
**The average earnings per share and UNII figures are monthly amounts based on three month averages for the municipal funds and senior loan funds and six month averages for all other taxable funds. For JRS and 25% of JDD, the average earnings per share represents net REIT cash flow which may consist of income, capital gains and/or a return of capital.
† Percentage are relative to the 79.05% of the portfolio invested in equity securities.
†† Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent daily market price and NAV.
‡ Relative to the fund's total managed assets.
Total return is determined by subtracting the initial investment from the redeemable value of the investment at the end of the investment period, dividing the remainder by the initial investment and expressing the result as a percentage. The calculation assumes that all fund distributions have been reinvested.
