The Nuveen Diversified Commodity Fund (the "Fund") is an actively-managed, exchange-traded
commodity pool. The Fund's shares represent units of fractional undivided beneficial
interest in and ownership of the Fund. The Fund is not a mutual fund, a closed-end
fund, or any other type of “investment company” within the meaning of the Investment
Company Act of 1940, as amended (the “1940 Act”), and is not subject to regulation
thereunder.
The Fund's investment objective is to generate higher risk-adjusted total return than leading commodity market benchmarks.
The Fund invests directly in a diversified portfolio of commodity futures and forward contracts to obtain broad exposure to all principal groups in the global commodity markets. The Fund is unleveraged. The Fund's investment strategy has three elements:
- An actively managed portfolio of commodity contracts utilizing Gresham's proprietary Tangible Asset Program® ("TAP®")
- An integrated program of writing commodity call options (the “options strategy”) designed by Gresham to enhance risk-adjusted total return of the Fund’s commodity investments (TAP® and the options strategy are together referred to as TAP PLUSSM)
- A collateral portfolio of cash equivalents and short-term, high grade debt securities
The Fund may be appropriate if you are seeking the potential for:
- Exposure to commodity futures and forward contracts with regular monthly distributions
- Attractive risk-adjusted returns as compared with passively managed commodity funds
- A fully collateralized and unleveraged commodity investment strategy
- Investment in an asset class with historically low correlations to equities and bonds
- A more consistent hedge against inflation than equities or bonds and
- Access to Gresham’s commodity expertise and TAP® strategy in a retail product listed on the NYSE Amex
| Closing Share Price (As of 2/21/2012) | $23.62 |
| Closing NAV per Share (As of 2/21/2012) | $24.56 |
| Premium / Discount | -3.83% |
| Current Distribution Rate (Market price)†† | 7.37% |
Organize and facilitate your 2011 tax preparation involving your Nuveen Commodity
Exchange-Traded Product.
Fund Manager
Nuveen Commodities Asset Management, LLC ("NCAM")
NCAM is the manager of the Fund. NCAM is registered as a commodity pool operator
("CPO") and commodity trading advisor ("CTA") with the Commodity Futures Trading Commission
("CFTC").
Investment Subadvisers
Commodity Subadviser: Gresham Investment Management
LLC, manages the Fund's commodity investments in futures, forwards
and options. Gresham is a Delaware limited liability company, the successor to Gresham
Investment Management, Inc., formed in July 1992. Gresham is registered with the
CFTC as a CTA and a CPO and is a member of the National Futures Association ("NFA").
Gresham also is registered with the Securities and Exchange Commission ("SEC") as an investment adviser. Gresham’s senior
portfolio management team has extensive investment experience trading commodities
and has long tenure with the firm. Gresham actively manages the Fund's portfolio
of commodity futures and forward contracts pursuant to TAP®, a long-only rules-based commodity investment strategy. TAP®
is designed to maintain consistent, fully collateralized exposure to commodities
as an asset class. The Fund’s strategy, which integrates TAP® and writing commodity
call options, is referred to as TAP PLUSSM.
 | Gresham Investment Management LLC |
| Collateral Subadviser: Nuveen Asset Management, an affiliate of NCAM and a wholly-owned subsidiary of Nuveen Investments, invests the Fund’s collateral in short-term, high grade debt securities with final terms not exceeding one year at the time of investment. Nuveen Asset Management has a conservative investment style and a disciplined, research-driven investment approach. The Nuveen Asset Management taxable fixed income investment team is supported by a dedicated research group. |
 | Collateral Investments |
As of 01/31/2012
Total may not add up to 100% due to rounding.
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of the Fund are subject to investment risks, including the possible loss of principal invested. Past performance is no guarantee of future results.
Fund data is updated daily, monthly, and quarterly, depending on the specific data point.
| Frequency |
Data included |
| Daily all funds: |
Market price, NAV, premium/discount, annualized distribution rates on market price and NAV |
| Monthly all funds: |
Assets, leverage, expenses, total return performance, distribution amounts, earnings & UNII |
| Monthly certain funds: |
Municipal bond fund holdings and portfolio information, tax characteristic estimates for JFP
|
| Monthly certain funds, with 1-month lag: |
Taxable fund holdings and portfolio information except JCE, NSL, JFR and JRO; and % AMT for municipal bond funds
|
| Quarterly certain funds: |
JCE, NSL, JFR, and JRO holdings and portfolio information, tax characteristic estimates for distributions from funds paying quarterly distributions
|
| Quarterly all funds: |
SEC filings (annual shareholder report, semi-annual shareholder report, or 10-Q filing)
|
An investment in the Fund’s shares is subject to investment risk, including the
possible loss of the entire amount that you invest.
Investments in commodity futures and forward contracts and options on commodity
futures and forward contracts have a high degree of price variability and are subject
to rapid and substantial price changes. The Fund could incur significant losses
on its commodity investments.
Unlike other Nuveen-sponsored funds, the Fund is a commodity pool. It is not a mutual
fund, a closed-end fund or any other type of “investment company” within the meaning
of the Investment Company Act of 1940 (the “1940 Act”), and therefore is not subject
to regulation thereunder nor afforded the protections of the 1940 Act. As such,
the Fund’s board does not have the scope of authority mandated to a board under
the 1940 Act.
Shareholders have no rights to participate in the Fund’s management other than the right in certain circumstances to remove or replace Nuveen
Shareholders have no rights to participate in the Fund’s management other than the
right in certain circumstances to remove or replace Nuveen Commodities Asset Management,
LLC, the Fund’s Manager. The Fund’s individual Trusteeshttp://stg.nuveen.com/CommodityInvestments/FundDetail.aspx?fundcode=CFD have very limited powers (specifically,
to serve as the audit and nominating committees, and to terminate the manager for
cause under specified circumstances). The individual Trustees, therefore, do not have the control
of the management and operation of the Fund that would be typical of the board of
directors of a corporation. Therefore, Fund shareholders will have to rely on the
judgment of the manager and subadvisers to manage the Fund.
