Commodity Exchange-Traded Products

COM

Nuveen Diversified Commodity Fund (NYSE MKT: CFD)

Objective

The Fund's investment objective is to generate higher risk-adjusted total return than leading commodity market benchmarks.

Investment Strategy

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); and a collateral portfolio of cash equivalents and short-term, high grade debt securities.

Highlights

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 exchange-traded retail product

Fund Structure

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, and is not subject to regulation thereunder.

Daily Pricing

Closing Share Price (As of 7/28/2014)$16.20
Closing NAV per Share (As of 7/28/2014)$17.81
Premium / Discount-9.04%
Current Distribution Rate (Market price)†9.63%

Tax Information

The Fund is structured as a publicly traded partnership for tax purposes, and issues a Schedule K-1 after the end of each tax year. Before deciding to invest, prospective investors are urged to consult their tax advisors.

Portfolio Management

Fund Manager

Nuveen Commodities Asset Management, LLC ("NCAM")

NCAM is the manager of the Fund. NCAM is registered as a commodity pool operator ("CPO") with the Commodity Futures Trading Commission ("CFTC").

Investment Subadvisers

Commodity Subadviser:  Gresham Investment Management LLC ("Gresham"), an affiliate of NCAM, acting through its Near Term Active division, manages the Fund's commodity investments. Gresham is registered with the CFTC as a CTA and a CPO. Gresham also is registered with the Securities and Exchange Commission ("SEC") as an investment adviser. Gresham's senior management team has extensive investment experience trading commodities and has long tenure with the firm.

Gresham Investment Management LLC
Collateral Subadviser:  Nuveen Asset Management, LLC, an affiliate of NCAM, invests the Fund's collateral in cash equivalents, U.S. government securities and other short-term, high grade debt securities with final terms not exceeding one year at the time of investment. Nuveen Asset Management, LLC has a disciplined, research-driven investment approach.

Nuveen Asset Management, LLC

Fund data is updated daily, monthly, and quarterly, depending on the specific data point.

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.

Risk Considerations

Shares of the Fund are subject to investment risks, including the possible loss of principal invested. Past performance is no guarantee of future results. The Fund invests primarily in commodity futures contracts and options on commodity futures contracts, which 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. The Fund is not a mutual fund, closed-end fund, or any other type of “investment company” within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder. There can be no assurance that the Fund’s options strategy will be successful. The Fund uses options on commodity futures contracts to enhance its risk-adjusted total returns. The Fund’s use of options, however, may not provide any, or only partial, protection for modest market declines. The return performance of the Fund’s commodity futures contracts may not parallel the performance of the commodities or indices that serve as the basis for the options it buys or sells; this basis risk may reduce the Fund’s overall returns. The Fund does not presently offer any new shares for sale; existing shares trade on the NYSE MKT. For a more complete description of risks, see the Fund’s webpage at: www.nuveen.com/CommodityInvestments

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