Nuveen Preferred & Income Opportunities Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21293

Nuveen Preferred & Income Opportunities Fund

(Exact name of registrant as specified in charter)

    333 West Wacker Drive, Chicago, Illinois 60606    

(Address of principal executive offices) (Zip code)

Gifford R. Zimmerman—Vice President and Secretary

    333 West Wacker Drive, Chicago, Illinois 60606    

(Name and address of agent for service)

Registrant’s telephone number, including area code:     312-917-7700    

Date of fiscal year end:       July 31      

Date of reporting period:  October 31, 2018  

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 

 

 

 

 


Item 1. Schedule of Investments

 

 


JPC   

Nuveen Preferred & Income
Opportunities Fund

 

Portfolio of Investments    October 31, 2018

     (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 150.7% (98.7% of Total Investments)

 

 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 72.0% (47.1% of Total Investments)

 

      Automobiles – 2.1%                           
$ 1,850    

General Motors Financial Company Inc.

    6.500%        N/A (5)        BB+      $ 1,745,937  
  21,850    

General Motors Financial Company Inc.

    5.750%        N/A (5)        BB+        19,675,488  
 

Total Automobiles

                               21,421,425  
      Banks – 18.1%                           
  3,575    

Barclays Bank PLC, 144A, (4)

    10.180%        6/12/21        A–        4,065,562  
  5,670    

BNP Paribas SA, 144A

    7.195%        N/A (5)        BBB        5,907,233  
  10,675    

CIT Group Inc.

    5.800%        N/A (5)        Ba3        10,498,863  
  8,264    

Citizens Financial Group Inc.

    5.500%        N/A (5)        BB+        8,325,980  
  4,690    

CoBank ACB, (3)

    6.250%        N/A (5)        BBB+        4,901,050  
  4,204    

HSBC Capital Funding Dollar 1 LP, 144A, (4)

    10.176%        N/A (5)        BBB+        6,179,880  
  3,675    

Huntington Bancshares Inc.

    5.700%        N/A (5)        Baa3        3,601,500  
  4,090    

Keycorp Convertible Preferred Stock

    5.000%        N/A (5)        Baa3        3,888,056  
  19,110    

Lloyds Bank PLC, 144A, (3)

    12.000%        N/A (5)        Baa3        22,940,331  
  6,520    

M&T Bank Corporation, (3)

    6.450%        N/A (5)        Baa2        6,878,600  
  4,020    

M&T Bank Corporation

    5.125%        N/A (5)        Baa2        3,944,625  
  22,223    

PNC Financial Services Group Inc., (3), (4)

    6.750%        N/A (5)        Baa2        23,445,265  
  5,656    

PNC Financial Services Group Inc.

    5.000%        N/A (5)        Baa2        5,469,352  
  3,528    

Royal Bank of Scotland Group PLC

    7.648%        N/A (5)        Ba1        4,401,180  
  5,325    

SunTrust Banks Inc.

    5.625%        N/A (5)        Baa3        5,404,875  
  3,250    

SunTrust Banks Inc.

    5.050%        N/A (5)        Baa3        3,141,450  
  4,360    

Wachovia Capital Trust III, (4)

    5.570%        N/A (5)        Baa2        4,251,000  
  8,180    

Wells Fargo & Company, (3-Months LIBOR reference rate + 3.770% spread), (4), (6)

    6.111%        N/A (5)        Baa2        8,241,350  
  3,145    

Wells Fargo & Company

    5.900%        N/A (5)        Baa2        3,152,768  
  33,655    

Wells Fargo & Company, (3), (4)

    5.875%        N/A (5)        Baa2        34,664,650  
  9,666    

Zions Bancorporation

    7.200%        N/A (5)        BB+        10,342,620  
 

Total Banks

                               183,646,190  
      Capital Markets – 2.6%                           
  2,220    

Bank of New York Mellon, (4)

    4.950%        N/A (5)        Baa1        2,233,875  
  3,560    

Commerzbank AG, 144A, (4)

    8.125%        9/19/23        BBB        4,009,790  
  9,240    

Goldman Sachs Group Inc.

    5.375%        N/A (5)        Ba1        9,343,950  
  5,195    

Goldman Sachs Group Inc.

    5.300%        N/A (5)        Ba1        5,065,124  
  4,195    

Morgan Stanley

    5.550%        N/A (5)        BB+        4,236,950  
  1,525    

State Street Corporation, (4)

    5.250%        N/A (5)        Baa1        1,542,156  
 

Total Capital Markets

                               26,431,845  
      Commercial Services & Supplies – 0.6%                           
  6,290    

AerCap Global Aviation Trust, 144A

    6.500%        6/15/45        Ba1        6,447,250  
      Consumer Finance – 2.4%                           
  3,581    

American Express Company

    5.200%        N/A (5)        Baa2        3,581,000  
  3,670    

American Express Company

    4.900%        N/A (5)        Baa2        3,656,238  
  9,370    

Capital One Financial Corporation, (4)

    5.550%        N/A (5)        Baa3        9,463,700  
  7,770    

Discover Financial Services

    5.500%        N/A (5)        Ba2        7,342,650  
 

Total Consumer Finance

                               24,043,588  
      Diversified Financial Services – 17.8%                           
  37,195    

Bank of America Corporation, (3)

    6.500%        N/A (5)        BBB–        39,443,438  
  10,110    

Bank of America Corporation, (4)

    6.300%        N/A (5)        BBB–        10,653,413  
  2,740    

Bank of America Corporation

    6.100%        N/A (5)        BBB–        2,811,925  

 

1


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    October 31, 2018
   (Unaudited)

 

Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Diversified Financial Services (continued)                           
$ 3,475    

Citigroup Inc.

    5.800%        N/A (5)        BB+      $ 3,531,469  
  16,975    

Citigroup Inc., (4)

    6.250%        N/A (5)        BB+        17,335,719  
  7,885    

Citigroup Inc.

    6.125%        N/A (5)        BB+        8,062,413  
  13,260    

Citigroup Inc., (4)

    5.875%        N/A (5)        BB+        13,442,325  
  14,800    

Compeer Financial ACA, 144A

    6.750%        N/A (5)        BB+        15,762,000  
  5,023    

Cooperative Rabobank UA, 144A, (4)

    11.000%        N/A (5)        BBB        5,254,058  
  34,420    

JPMorgan Chase & Company, (4)

    6.750%        N/A (5)        Baa2        36,708,930  
  125    

JPMorgan Chase & Company

    6.100%        N/A (5)        Baa2        127,069  
  9,710    

JPMorgan Chase & Company

    5.300%        N/A (5)        Baa2        9,855,650  
  8,866    

JPMorgan Chase & Company, (3-Month LIBOR reference rate + 3.470% spread), (6)

    5.990%        N/A (5)        BBB–        8,899,248  
  7,350    

Voya Financial Inc.

    6.125%        N/A (5)        BB+        7,304,063  
  1,750    

Voya Financial Inc.

    5.650%        5/15/53        Baa3        1,723,750  
 

Total Diversified Financial Services

                               180,915,470  
      Electric Utilities – 2.8%                           
  3,620    

Electricite de France SA, 144A

    5.250%        N/A (5)        BBB        3,485,698  
  23,985    

Emera Inc., (3), (4)

    6.750%        6/15/76        BBB–        25,004,363  
 

Total Electric Utilities

                               28,490,061  
      Energy Equipment & Services – 0.5%                           
  5,015    

Transcanada Trust, (3)

    5.875%        8/15/76        Baa2        4,936,766  
      Equity Real Estate Investment Trusts – 1.3%                           
  11,705    

Sovereign Real Estate Investment Trust, 144A

    12.000%        N/A (5)        BB+        13,021,813  
      Food Products – 5.3%                           
  2,245    

Dairy Farmers of America Inc., 144A, (4)

    7.125%        N/A (5)        BB+        2,346,025  
  34,865    

Land O’ Lakes Inc., 144A, (3)

    8.000%        N/A (5)        BB        37,915,687  
  6,965    

Land O’ Lakes Inc., 144A

    7.250%        N/A (5)        BB        7,226,188  
  6,240    

Land O’ Lakes Inc., 144A, (4)

    7.000%        N/A (5)        BB        6,232,200  
 

Total Food Products

                               53,720,100  
      Industrial Conglomerates – 4.0%                           
  43,960    

General Electric Corporation, (4)

    5.000%        N/A (5)        BBB–        40,553,100  
      Insurance – 12.2%                           
  3,165    

Aegon NV, (4)

    5.500%        4/11/48        Baa1        3,008,728  
  5,485    

American International Group Inc., (4)

    5.750%        4/01/48        Baa2        5,179,924  
  8,850    

Assurant Inc.

    7.000%        3/27/48        BB+        8,850,000  
  25,035    

Assured Guaranty Municipal Holdings Inc., 144A, (4)

    6.400%        12/15/66        BBB+        24,283,950  
  10,000    

Friends Life Holdings PLC, Reg S

    7.875%        N/A (5)        A–        10,003,000  
  2,108    

La Mondiale SAM, Reg S

    7.625%        N/A (5)        BBB        2,144,839  
  7,117    

Liberty Mutual Group Inc., 144A, (3)

    7.800%        3/15/37        Baa3        8,148,965  
  9,335    

MetLife Capital Trust IV, 144A, (3)

    7.875%        12/15/37        BBB        11,295,350  
  4,715    

MetLife Inc., 144A, (3)

    9.250%        4/08/38        BBB        6,247,375  
  3,430    

MetLife Inc., (4)

    5.875%        N/A (5)        BBB        3,421,425  
  585    

MetLife Inc.

    5.250%        N/A (5)        BBB        588,656  
  575    

Nationwide Financial Services Capital Trust, (3)

    7.899%        3/01/37        Baa2        632,053  
  9,550    

Nationwide Financial Services Inc., (3)

    6.750%        5/15/37        Baa2        10,218,500  
  6,855    

Provident Financing Trust I, (4)

    7.405%        3/15/38        Baa3        7,334,850  
  3,315    

Prudential Financial Inc., (4)

    5.875%        9/15/42        BBB+        3,449,258  
  1,270    

Prudential Financial Inc., (4)

    5.625%        6/15/43        BBB+        1,292,352  
  14,375    

QBE Insurance Group Ltd, 144A, (4)

    7.500%        11/24/43        Baa1        15,578,906  
  2,540    

QBE Insurance Group Ltd, Reg S

    6.750%        12/02/44        BBB        2,603,500  
 

Total Insurance

                               124,281,631  
      Metals & Mining – 0.4%                           
  1,600    

BHP Billiton Finance USA Ltd, 144A

    6.750%        10/19/75        BBB+        1,732,000  
  2,630    

BHP Billiton Finance USA Ltd, 144A

    6.250%        10/19/75        BBB+        2,738,487  
 

Total Metals and Mining

                               4,470,487  

 

2


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Multi-Utilities – 0.8%                           
$ 4,960    

CenterPoint Energy Inc., (4)

    6.125%        N/A (5)        BBB      $ 5,003,400  
  3,235    

NiSource Inc., 144A

    5.650%        N/A (5)        BBB–        3,170,947  
 

Total Multi-Utilities

                               8,174,347  
 

U.S. Agency – 1.1%

          
  4,700    

Farm Credit Bank of Texas, (4)

    10.000%        N/A (5)        Baa1        5,358,000  
  5,835    

Farm Credit Bank of Texas, 144A

    6.200%        N/A (5)        BBB        5,835,000  
 

Total U.S. Agency

                               11,193,000  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $729,230,656)

 

     731,747,073  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 42.5% (27.8% of Total Investments)

 

      Banks – 7.6%                           
  172,975    

CoBank Agricultural Credit Bank, (7)

    6.250%           BBB+      $ 17,816,424  
  73,511    

CoBank Agricultural Credit Bank, (7)

    6.200%           BBB+        7,755,411  
  38,725    

CoBank Agricultural Credit Bank, (7)

    6.125%           BBB+        3,886,054  
  218,164    

Fifth Third Bancorporation

    6.625%           Baa3        5,971,149  
  178,757    

FNB Corporation, (3)

    7.250%           Ba2        4,894,367  
  434,200    

Huntington Bancshares Inc.

    6.250%           Baa3        11,141,572  
  153,075    

Keycorporation

    6.125%           Baa3        4,025,873  
  82,000    

People’s United Financial Inc.

    5.625%           BB+        2,052,460  
  5,400    

PNC Financial Services Group Inc.

    6.125%           Baa2        142,290  
  397,116    

Regions Financial Corporation, (3), (4)

    6.375%           BB+        10,579,170  
  113,600    

US Bancorp

    6.500%           A3        3,068,336  
  211,722    

Western Alliance Bancorp, (3)

    6.250%           N/R        5,242,237  
  39,465    

Zions Bancorporation

    6.300%                 BB+        1,045,033  
 

Total Banks

                               77,620,376  
      Capital Markets – 8.4%                           
  173,436    

Apollo Investment Corporation, (3)

    6.875%           BBB–        4,361,915  
  142,980    

B. Riley Financial Inc.

    7.500%           N/R        3,575,930  
  212,350    

B. Riley Financial Inc.

    7.250%           N/R        5,262,033  
  134,939    

Charles Schwab Corporation

    6.000%           BBB        3,470,631  
  129,169    

Charles Schwab Corporation, (3)

    5.950%           BBB        3,339,019  
  134,000    

Cowen Inc.

    7.350%           N/R        3,382,160  
  74,600    

Goldman Sachs Group Inc.

    5.500%           Ba1        1,882,904  
  52,802    

Hercules Capital Inc., (3)

    6.250%           N/R        1,321,106  
  370,280    

Ladenburg Thalmann Financial Services Inc.

    8.000%           N/R        9,071,823  
  844,397    

Morgan Stanley, (3), (4)

    7.125%           BB+        23,026,706  
  280,300    

Morgan Stanley

    6.875%           BB+        7,514,843  
  165,800    

Morgan Stanley

    6.375%           BB+        4,340,644  
  221,100    

Morgan Stanley

    5.850%           BB+        5,571,720  
  54,813    

Northern Trust Corporation

    5.850%           BBB+        1,394,443  
  145,905    

Oaktree Specialty Lending Corporation, (3)

    6.125%           BB+        3,560,082  
  51,445    

State Street Corporation, (4)

    5.350%           Baa1        1,303,616  
  138,364    

Stifel Financial Corporation

    6.250%                 BB–        3,470,169  
 

Total Capital Markets

                               85,849,744  
      Consumer Finance – 3.6%                           
  169,911    

Capital One Financial Corporation

    6.700%           Baa3        4,409,190  
  1,219,645    

GMAC Capital Trust I, (3), (4)

    8.097%                 B+        32,027,878  
 

Total Consumer Finance

                               36,437,068  
      Diversified Financial Services – 2.3%                           
  126,000    

AgriBank FCB, (7)

    6.875%           BBB+        13,513,500  
  360,816    

Citigroup Inc.

    7.125%                 BB+        9,835,843  
 

Total Diversified Financial Services

                               23,349,343  

 

3


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    October 31, 2018
   (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      Diversified Telecommunication Services – 0.5%                           
  209,738    

Qwest Corporation, (3)

    6.875%                 BBB–      $ 5,075,660  
      Equity Real Estate Investment Trusts – 0.3%                           
  147,988    

Senior Housing Properties Trust, (3)

    5.625%                 BBB–        3,224,659  
      Food Products – 4.2%                           
  440,111    

CHS Inc., (3)

    7.875%           N/R        11,865,393  
  517,590    

CHS Inc.

    7.100%           N/R        13,322,766  
  486,440    

CHS Inc., (4)

    6.750%           N/R        12,258,288  
  23,000    

Dairy Farmers of America Inc., 144A, (7)

    7.875%           BB+        2,305,750  
  24,500    

Dairy Farmers of America Inc., 144A, (7)

    7.875%                 BBB–        2,817,500  
 

Total Food Products

                               42,569,697  
      Insurance – 8.9%                           
  302,283    

Argo Group US Inc., (3)

    6.500%           BBB–        7,623,577  
  379,916    

Aspen Insurance Holdings Ltd, (4)

    5.950%           BBB–        9,513,097  
  73,500    

Aspen Insurance Holdings Ltd

    5.625%           BBB–        1,678,740  
  125,700    

Axis Capital Holdings Ltd

    5.500%           BBB        2,903,670  
  65,900    

Delphi Financial Group Inc., (4), (7)

    2.762%           BB+        1,482,750  
  409,500    

Enstar Group Ltd, (3)

    7.000%           BB+        10,520,055  
  240,518    

Hartford Financial Services Group Inc., (3)

    7.875%           Baa2        6,611,840  
  591,707    

Kemper Corporation, (3)

    7.375%           Ba1        15,147,698  
  179,883    

Maiden Holdings North America Ltd

    7.750%           N/R        3,653,424  
  88,895    

National General Holdings Corporation

    7.625%           N/R        2,218,819  
  76,400    

National General Holdings Corporation

    7.500%           N/R        1,837,420  
  153,954    

National General Holdings Corporation

    7.500%           N/R        3,679,501  
  132,233    

PartnerRe Ltd, (3)

    7.250%           Baa2        3,554,423  
  199,596    

Reinsurance Group of America Inc., (3)

    6.200%           BBB+        5,249,375  
  347,400    

Reinsurance Group of America Inc., (3)

    5.750%           BBB+        8,733,636  
  220,272    

Torchmark corporation, (3)

    6.125%                 BBB+        5,572,882  
 

Total Insurance

                               89,980,907  
      Mortgage Real Estate Investment Trusts – 0.5%                           
  96,986    

MFA Financial Inc.

    8.000%           N/R        2,478,962  
  107,000    

Wells Fargo REIT

    6.375%                 BBB        2,725,290  
 

Total Mortgage Real Estate Investment Trusts

                               5,204,252  
      Oil, Gas & Consumable Fuels – 0.9%                           
  80,400    

NuStar Energy LP

    8.500%           B1        1,855,632  
  50,000    

NuStar Energy LP

    7.625%           B1        1,048,000  
  240,017    

NuStar Logistics LP

    9.170%                 B+        6,043,628  
 

Total Oil, Gas & Consumable Fuels

                               8,947,260  
      Thrifts & Mortgage Finance – 1.7%                           
  216,673    

Federal Agricultural Mortgage Corporation, (3)

    6.875%           N/R        5,609,664  
  143,124    

Federal Agricultural Mortgage Corporation

    6.000%           N/R        3,619,606  
  310,066    

New York Community Bancorporation, (4)

    6.375%                 Ba1        7,863,274  
 

Total Thrifts & Mortgage Finance

                               17,092,544  
      U.S. Agency – 2.6%                           
  246,900    

Farm Credit Bank of Texas, 144A, (3), (7)

    6.750%                 Baa1        26,171,400  
      Wireless Telecommunication Services – 1.0%                           
  415,473    

United States Cellular Corporation, (3)

    7.250%                 Ba1        10,528,086  
 

Total $25 Par (or similar) Retail Preferred (cost $428,834,967)

 

     432,050,996  

 

4


Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 24.5% (16.1% of Total Investments) (8)

 

      Banks – 19.5%                           
$ 2,820    

Australia & New Zealand Banking Group Ltd/United Kingdom, 144A

    6.750%        N/A (5)        Baa2      $ 2,894,025  
  13,600    

Banco Bilbao Vizcaya Argentaria SA, (4)

    6.125%        N/A (5)        Ba2        11,713,000  
  1,205    

Banco Mercantil del Norte SA/Grand Cayman, 144A

    7.625%        N/A (5)        BB        1,177,900  
  2,200    

Banco Santander SA, Reg S

    6.375%        N/A (5)        Ba1        2,169,750  
  7,065    

Barclays PLC

    7.750%        N/A (5)        BB+        7,048,751  
  15,075    

Barclays PLC, Reg S

    7.875%        N/A (5)        BB+        15,525,380  
  10,115    

BNP Paribas SA, 144A

    7.375%        N/A (5)        BBB–        10,393,163  
  14,035    

Credit Agricole SA, 144A, (4)

    8.125%        N/A (5)        BBB–        15,053,463  
  9,985    

Credit Agricole SA, 144A, (4)

    7.875%        N/A (5)        BBB–        10,321,994  
  3,675    

HSBC Holdings PLC

    6.375%        N/A (5)        BBB        3,569,344  
  2,290    

HSBC Holdings PLC, (4)

    6.000%        N/A (5)        BBB        2,106,800  
  1,000    

ING Groep NV, Reg S

    6.875%        N/A (5)        BBB–        1,010,000  
  5,055    

ING Groep NV, Reg S

    6.500%        N/A (5)        BBB–        4,792,140  
  14,555    

Intesa Sanpaolo SpA, 144A

    7.700%        N/A (5)        BB–        13,190,469  
  22,195    

Lloyds Banking Group PLC

    7.500%        N/A (5)        Baa3        22,389,205  
  5,000    

Nordea Bank AB, 144A

    6.125%        N/A (5)        BBB        4,800,000  
  5,455    

Royal Bank of Scotland Group PLC

    8.625%        N/A (5)        Ba2        5,734,569  
  8,370    

Royal Bank of Scotland Group PLC

    8.000%        N/A (5)        Ba2        8,636,794  
  1,720    

Royal Bank of Scotland Group PLC

    7.500%        N/A (5)        Ba2        1,748,380  
  6,255    

Societe Generale SA, 144A

    8.000%        N/A (5)        BB+        6,348,825  
  6,851    

Societe Generale SA, 144A, (4)

    7.875%        N/A (5)        BB+        6,893,819  
  6,535    

Societe Generale SA, 144A

    7.375%        N/A (5)        BB+        6,624,856  
  5,875    

Societe Generale SA, 144A

    6.750%        N/A (5)        BB+        5,184,688  
  6,485    

Standard Chartered PLC, 144A

    7.750%        N/A (5)        Ba1        6,549,850  
  7,190    

Standard Chartered PLC, 144A

    7.500%        N/A (5)        Ba1        7,261,900  
  16,765    

UniCredit SpA, Reg S

    8.000%        N/A (5)        B+        15,051,951  
  201,371    

Total Banks

                               198,191,016  
      Capital Markets – 5.0%                           
  6,455    

Credit Suisse Group AG, 144A, (4)

    7.500%        N/A (5)        Ba2        6,567,963  
  6,025    

Credit Suisse Group AG, 144A

    7.250%        N/A (5)        Ba2        5,957,219  
  11,855    

Credit Suisse Group AG, 144A, (4)

    7.500%        N/A (5)        BB        12,342,952  
  810    

Credit Suisse Group AG, Reg S

    7.125%        N/A (5)        Ba2        822,150  
  2,900    

Macquarie Bank Ltd/London, 144A, (4)

    6.125%        N/A (5)        Ba1        2,602,750  
  17,330    

UBS Group Funding Switzerland AG, Reg S

    7.000%        N/A (5)        BBB–        18,044,862  
  5,195    

UBS Group Funding Switzerland AG, Reg S

    6.875%        N/A (5)        BBB–        5,131,221  
  50,570    

Total Capital Markets

                               51,469,117  
$ 251,941    

Total Contingent Capital Securities (cost $267,142,780)

                               249,660,133  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 8.9% (5.9% of Total Investments)

 

      Air Freight & Logistics – 0.5%  
$ 5,153    

XPO Logistics Inc., 144A, (3)

    6.500%        6/15/22        BB      $ 5,281,825  
      Automobiles – 0.3%                           
  2,825    

Ford Motor Company, (3)

    7.450%        7/16/31        BBB        2,976,605  
      Capital Markets – 0.4%                           
  3,960    

Donnelley Financial Solutions Inc., (3)

    8.250%        10/15/24        B        4,088,700  
      Chemicals – 1.2%                           
  6,275    

Blue Cube Spinco LLC, (3)

    9.750%        10/15/23        BB+        6,980,938  
  4,675    

CVR Partners LP / CVR Nitrogen Finance Corporation, 144A, (3)

    9.250%        6/15/23        B+        4,926,281  
  10,950    

Total Chemicals

                               11,907,219  
      Consumer Finance – 1.4%                           
  3,335    

Ally Financial Inc., (3)

    8.000%        3/15/20        BB+        3,497,581  
  10,075    

Navient Corporation, (3)

    8.000%        3/25/20        BB        10,515,781  
  13,410    

Total Consumer Finance

                               14,013,362  

 

5


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    October 31, 2018
   (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Food Products – 0.1%                           
$ 1,785    

Dean Foods Company, 144A, (3)

    6.500%        3/15/23        BB–      $ 1,644,431  
  Interactive Media & Services – 0.2%           
  1,825    

Rackspace Hosting Inc., 144A, (3)

    8.625%        11/15/24        BB–        1,715,500  
 

IT Services – 0.7%

          
  7,225    

First Data Corporation, 144A, (3)

    7.000%        12/01/23        BB–        7,492,325  
      Media – 2.5%                           
  10,425    

DISH DBS Corporation, (3)

    7.750%        7/01/26        BB        9,330,375  
  10,000    

Liberty Interactive LLC, (3)

    8.500%        7/15/29        BB        10,550,000  
  4,725    

Viacom Inc., (3)

    6.875%        4/30/36        BBB        5,217,691  
  25,150    

Total Media

                               25,098,066  
      Oil, Gas & Consumable Fuels – 0.8%                           
  7,600    

Enviva Partners LP / Enviva Partners Finance Corporation, (3)

    8.500%        11/01/21        BB–        7,818,500  
      Specialty Retail – 0.5%                           
  6,450    

L Brands Inc., (3)

    6.875%        11/01/35        Ba1        5,482,500  
      Wireless Telecommunication Services – 0.3%                           
  3,375    

Altice Financing SA, 144A, (3)

    7.500%        5/15/26        B+        3,172,500  
$ 89,708    

Total Corporate Bonds (cost $94,996,535)

                               90,691,533  
Shares     Description (1)   Coupon              Ratings (2)      Value  
 

CONVERTIBLE PREFERRED SECURITIES – 2.5% (1.6% of Total Investments)

 

      Electric Utilities – 1.1%                           
  185,100    

NextEra Energy Inc.

    6.123%                 BBB      $ 10,735,800  
      Independent Power & Renewable Electricity Producers – 0.4%                           
  45,600    

Vista Energy corporation

    7.000%                 N/R        4,183,800  
      Multi-Utilities – 1.0%                           
  103,000    

Sempra Energy

    6.750%                 N/R        10,270,130  
 

Total Convertible Preferred Securities (cost $25,531,856)

                               25,189,730  
Shares     Description (1)                           Value  
 

COMMON STOCKS – 0.3% (0.2% of Total Investments)

          
      Capital Markets – 0.3%                           
  184,035    

Ares Capital Corporation, (4)

                             $ 3,158,041  
 

Total Common Stocks (cost $3,036,663)

                               3,158,041  
 

Total Long-Term Investments (cost $1,548,773,457)

                               1,532,497,506  
Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
 

SHORT-TERM INVESTMENTS – 2.0% (1.3% of Total Investments)

 

      REPURCHASE AGREEMENTS – 2.0% (1.3% of Total Investments)  
$ 20,565    

Repurchase Agreement with Fixed Income Clearing Corporation, dated 10/31/18, repurchase price $20,565,891, collateralized by $23,425,000 U.S. Treasury Notes, 1.500%, due 8/15/26, value $20,977,603

    1.050%        11/01/18               $ 20,565,291  
 

Total Short-Term Investments (cost $20,565,291)

                               20,565,291  
 

Total Investments (cost $1,569,338,748) – 152.7%

                               1,553,062,797  
 

Borrowings – (43.0)% (9), (10)

                               (437,000,000
 

Reverse Repurchase Agreements – (12.3)% (11)

                               (125,000,000
 

Other Assets Less Liabilities – 2.6% (12)

                               25,738,884  
 

Net Assets Applicable to Common Shares – 100%

                             $ 1,016,801,681  

 

6


Investments in Derivatives

Futures Contracts

 

Description      Contract
Position
       Number of
Contracts
       Expiration
Date
       Notional
Amount
       Value        Unrealized
Appreciation
(Depreciation)
       Variation
Margin
Receivable/
(Payable)
 

U.S. Treasury 10-Year Note

       Short          (120        12/18        $ (14,145,526      $ (14,212,500      $ (66,974      $ 41,250  

Interest Rate Swaps – OTC Uncleared

 

Counterparty   Notional
Amount
    Fund
Pay/Receive
Floating Rate
    Floating Rate Index     Fixed Rate
(Annualized)
    Fixed Rate
Payment
Frequency
    Effective
Date (13)
    Optional
Termination
Date
    Maturity
Date
    Value     Unrealized
Appreciation
(Depreciation)
 

Morgan Stanley Capital Services LLC

  $ 277,500,000       Receive       1-Month LIBOR       1.994     Monthly       6/01/18       7/01/25       7/01/27     $ 16,096,831     $ 16,096,831  

Fair Value Measurements    

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. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or the liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or the 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 inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:

 

      Level 1      Level 2      Level 3      Total  

Long-Term Investments:

           

$1,000 Par (or similar) Institutional Preferred

   $      $ 731,747,073      $         —      $ 731,747,073  

$25 Par (or similar) Retail Preferred

     356,302,207        75,748,789               432,050,996  

Contingent Capital Securities

            249,660,133               249,660,133  

Corporate Bonds

            90,691,533               90,691,533  

Convertible Preferred Securities

     25,189,730                      25,189,730  

Common Stocks

     3,158,041                      3,158,041  

Short-Term Investments:

           

Repurchase Agreements

            20,565,291               20,565,291  

Investments in Derivatives:

           

Futures Contracts*

     (66,974                    (66,974

Interest Rate Swaps*

            16,096,831               16,096,831  

Total

     384,583,004        1,184,509,650               1,569,092,654  
*

Represents net unrealized appreciation (depreciation).

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization, timing differences in the recognition of income on real estate investment trust (“REIT”) investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in

 

7


JPC    Nuveen Preferred & Income Opportunities Fund (continued)
   Portfolio of Investments    October 31, 2018
   (Unaudited)

 

nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

The table below presents the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, as determined on a federal Income tax basis, as of October 31, 2018.

For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for Income statement reporting but realized in income and/or capital gains for tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.

 

Tax cost of Investments

     $ 1,570,593,917  

Gross unrealized:

    

Appreciation

     $ 27,600,612  

Depreciation

       (45,131,732

Net unrealized appreciation (depreciation) of investments

     $ (17,531,120
    

Tax cost of futures contracts

     $ (66,974

Net unrealized appreciation (depreciation) of futures contracts

        
    

Tax cost of swaps

     $  

Net unrealized appreciation (depreciation) of swaps

       16,096,831  

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)

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 $305,215,510 have been pledged as collateral for reverse repurchase agreements.

 

(4)

Investment, or portion of investment, is hypothecated. The total value of investments hypothecated as of the end of the reporting period was $381,579,940.

 

(5)

Perpetual security. Maturity date is not applicable

 

(6)

Variable rate security. The rate shown is the coupon as of the end of the reporting period.

 

(7)

For fair value measurement disclosure purposes, investment classified as Level 2.

 

(8)

Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms 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.

 

(9)

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 $1,055,819,982 have been pledged as collateral for borrowings.

 

(10)

Borrowings as a percentage of Total Investments is 28.1%

 

(11)

Reverse Repurchase Agreements as a percentage of Total Investments is 8.0%

 

(12)

Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as well as the unrealized appreciation (depreciation) of OTC cleared and exchange-traded derivatives, when applicable.

 

(13)

Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract.

 

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.

 

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.

 

LIBOR

London Inter-Bank Offered Rate

 

REIT

Real Estate Investment Trust

 

See accompanying notes to financial statements.

 

8


Item 2. Controls and Procedures.

 

  a.

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  b.

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)    Nuveen Preferred & Income Opportunities Fund   
By (Signature and Title)    /s/ Gifford R. Zimmerman                                                        
   Gifford R. Zimmerman   
   Vice President and Secretary   

Date: December 28, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)    /s/ Cedric H. Antosiewicz                                                         
   Cedric H. Antosiewicz   
   Chief Administrative Officer (principal executive officer)   
Date: December 28, 2018      
By (Signature and Title)    /s/ Stephen D. Foy                                                                     
   Stephen D. Foy   
   Vice President and Controller (principal financial officer)   
Date: December 28, 2018